The Two Whos of Importing Into Canada

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The Two Whos of Importing Into Canada

• Who Does What ?
• Who Cares ?

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Discussion Topics

• Who Does What ?
• Key Players In The Import Process
• Roles Responsibilities Matrix
• Understanding The Border Process
• Common Challenges For CAUBO Importers
• Who Cares ?
• The Government Sticks To Force Compliance
• Proactive Process Improvements and A Compliance
  Mindset, versus Reactive Response To Audits,
  Financial Penalties
• Solutions Recommendations

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Livingston International Services

• Canadian and U.S. customs clearance
• North American transportation and logistics
• International freight forwarding
• One of North Americas largest customs consulting
  practices
• Specialized trade show logistics
• Integrated logistics management
• Suite of web-based technology solutions
• Client education seminars and workshops

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Who Does What ?
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Quick Quiz

• Write down the 5 primary players involved in a
  typical import transaction

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Each Party Plays A Critical Role

• The goal is for an import to be
• Delivered where it should be, when it should be
• According to the laws governing imports
• An efficient and compliant process starts at the
  basicseveryone understanding what they are
  responsible for

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Roles Responsibilities Matrix
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Roles Responsibilities Matrix (2)
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Roles Responsibilities Matrix (3)
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Parallels To Corporate and Personal Tax

• Involves
• Accounting to the government (the B3 form)
• Accurate financial information
• Adherence to accounting practicesinventory
• Added bonuscustoms rules !
• The trick isother parties are involved in
  filling out your accounting informationespecially
  the exporter !

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Understanding The Customs Process 3 Things
Actually Cross The Border
A Human
Goods
Information
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The First Element Crossing The Border The Driver

• The driver is the first point of representation
  to government of the importer exporter
• Subject to immigration laws
• Canada has a registered driver program to
  facilitate border clearances
• Driver must understand the border procedure

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Second Element Crossing The Border The Goods

• Some goods may be subject to
• additional scrutiny by
• Canada Customs or Other
• Government Departments (OGDs)
• Some key CAUBO OGDs
• Dept. of Foreign Affairs International Trade
  (DFAIT) apparel goods, textile articles and
  steel products
• Environment Canada and Cdn Food Inspection Agency
  (CFIA) border inspection of live animals, plants
  
• Health Canada drugs and medical devices and
  hazardous products

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Third (And Most Misunderstood) Element
Information

• Legal declaration to government
• regarding your imported products
• Value and quantity
• Complete description of goods
• Product origins ( of all components)
• Information also determines products eligibility
  for preferential tariffs, like NAFTA

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Common Challenges For CAUBO Importers

• Upstream Challenges -- Exporter
• Illegible documentation
• Insufficient description of goods for CBSA
  purposes
• Missing documentation, especially OGD permits,
  forms
• Downstream Challenges -- Importer
• Identification of party responsible for the
  import
• 7X24 border environmentcontacting the correct
  party for requirements with live freight waiting

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The Second Who of Importing Into Canada

• Q Who Cares ?
• A The government caresand therefore we need to
  as well

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The Sticks to Make Importers Care

• Administrative Monetary Penalty System (AMPS)
• Fines of up to 25,000 for non-compliance
• Escalating amounts depending on repeat occurences
• To date have focused on specific transactions
• More details from CBSA contained in AMPS hand-out
  
• Audits
• Similar to personal or corporate income tax audit
• Reviews organizations compliance focus, internal
  controls, systems in place to monitor for errors
  and make corrections
• Lack of compliance can lead to AMPs, duty
  re-payment, interest payments,
• Significant costsimply supporting the audit
  process !

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Recommendations and Best Practices

• Senior management awareness and understanding of
  compliancethe pros and cons
• Dedicated effort and resources towards a
  consistent and reliable customs/import process
• Centralized accountability
• Customs procedures guide
• 7X24 contact availability or alternative
  directives
• Supplier management program including
• Education commitments
• P.O. process that links the customs broker
• Electronic links with major suppliers
• Electronic access to data
• Electronic record-keeping

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Useful Resources and Links

• Livingston account manager
• Livingston Exporting to Canada guide
• Livingston Seminar series
• Livingston website www.livingstonintl.com
• CBSA website www.cbsa-asfc.gc.ca/

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