Canadian Customs Clearance
In order to clear goods through Customs, the CBSA may require you to use a Qualified Customs Broker like CCB. In order to appoint CCB as your Customs Broker you are required to complete and submit to us:
(1) Agency Agreement
The Agency Agreement gives authorization to CCB to act on your behalf to present the entry, using a format that is authorized for clearance with the CBSA.
The GST Letter is a declaration to CBSA that you will pay the duty and the GST that is owed on the imported goods, before the end of the paying period.
Please download and complete these two documents from the links above so we can proceed to the manage the clearance of your shipments.
Agency Agreement and GST Letter
CBSA Release Options
The BN is used with CRA for 4 main areas:
1. Import / Export of Goods
2. HST / GST declaration
3. Payroll deductions
4. Income Tax
CCB can obtain a BN on your behalf. The BN Registry allows the conduct of business in different ways using a single number with some variation:
Export or Import: The BN numbers end with the letters RM
GST / HST: The BN numbers end in RT.
You can use your BN for several types of transactions, including checking your account
Documents Required for Canadian Customs Clearance
The basic document required for Customs Clearance is the Commercial Invoice obtained from the seller. The format of your invoice can replace the Canadian Customs Invoice (CCI) providing it includes all of the items required by CBSA, as specified by the instructions.
The description of goods should be clear and not generic in order to allow for clear HS code classification.
Addtional documents required are:
Air Way Bill (AWB)
Bill(s) of Lading (BL)
Certificate of Origin
Pharmaceutical and food products require additional documents.
Goods made or produced in USA, Mexico or Canada require a NAFTA Certificate to qualify for Duty Free status
A different type of Certficate of Origin is used in the case of other countries where Canada has negotiated a Free Trade Agreement.
A question oftenly asked, mainly by Non-Resident Importers (NRIs) is: "What do I put on my invoice when shipping to Canada?" We will explain here the process and the valuation requirements of the CBSA.
The Customs Act in its Section 48 determines the value pf the goods on which Duty and Tax should be charged. The selling price should ve the true value of the purchase and should not include freight insurance or any other additional one.
Non Arms Lenght transactions are the most complex and when you are not sure, it is best to obtain a Valuation done by the CBSA, so you save ulterior problems in the future.
Some of the methods used by CBSA are: Identical Goods, Similar Goods, Deductive Method, Residual Method or Computed Method.
NRI Selling Price
This must be determined very carefully. CCB has the qualified personnel to assist you with a proper valuation; but you, as the seller, must ensure that your NRI valuation includes:
1. The actual Cost of Goods purchased
2. Add the normal profit that you would apply
3. Add freight, clearance, duty and tax
NRI Record Keeping
CBSA requires that all NRIs keep the import documentation for a period of 7 years.
To satisfy this requirement if you are a NRI, you can keep these records under your care. However, you shour request the acceptance from CBSA by sending a Certified Letter of Undertaking . You may also be required to pay for travel, accommodation and ancillary expenses incurred by a Customs Officer in the event of an audit to the NRI site.
Alternatively, CCB can keep these records at our own CCB Bonded Warehouse for a small fee and save you of these potential constrains.
Please call CCB at 1-800 267 5754 to obtain a clear guidance on the Valuation. This will save you of being submitted to an Audit Process or a Non-Compliance fine.
1. Upon entry; with the full set of documents submitted with the Customs entity.
2. Release on Minimal Documentation - RMD: This option allows buyers who posted security with CBSA to clear the shipment on minimum documents and to perfect the
entry within a short prescribed period of time. This flexibility is at use when a shipment
as hundred of lines and there is no enough time to complete documentation.
3. Pre-Arrival Service System - PRAS: Using this method, Brokers, Buyers and Importers are allowed to sybmit RMD information to Customs for review before the cargo arrives in Canada. CBSA has then enough anticipation to review and the clearance can be expedite once the cargo arrive into the country.