The Two Whos of

Importing Into Canada

Who Does What ?

Who Cares ?

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

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

Who Does What ?

Quick Quiz

Write down the 5 primary players involved in a

typical import transaction

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 basics
everyone understanding what
they are responsible for

Roles & Responsibilities Matrix

Player
Exporter

Role
Accurate,

complete, legible
documents
Shipment of goods
Carrier
Courier

Forwarding
documentation to
customs broker
Cartage of goods

Legal/Financial
Responsibility
No

legal or financial
responsibility to
CBSA; limited to
NAFTA, if applicable

Accurate

claim of
whats carried on
board
Legally eligible
drivers for entry to
Canada

Roles & Responsibilities Matrix (2)

Player

Role

CBSA &
OGDs

Protect

the health,
security, and
commerce of
Canada

Customs
Broker

Release

Legal/Financial
Responsibility
Enforce

the laws

of goods Limited legal &

from CBSA and
financial
OGDs at time of
responsibility to
entry to Canada
CBSA
Financial and
Business obligation
customs regulation
to importer (their
accounting of the
client)
transaction

Roles & Responsibilities Matrix (3)

Player
Importer

Role
Manage

all of the
parties: exporter,
carrier, CBSA,
customs broker,
OGDs

Legal/Financial
Responsibility
Full

legal and
financial
responsibility for
timeliness and
accuracy of all
information
submitted to CBSA

Parallels To Corporate and

Personal Tax

Involves
Accounting to the government
(the B3 form)
Accurate financial information
Adherence to accounting
practicesinventory
Added bonuscustoms rules !

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The trick isother parties are

involved in filling out your
accounting information
especially the exporter !

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

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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

Second Element Crossing The Border:

The Goods

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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

Third (And Most Misunderstood)

Element: Information

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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

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

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Education & commitments

P.O. process that links the customs broker
Electronic links with major suppliers
Electronic access to data
Electronic record-keeping

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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