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The Two “Whos” of Importing Into Canada

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 ?

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The Two “Whos” of Importing Into Canada

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  1. The Two “Whos” of Importing Into Canada • Who Does What ? • Who Cares ?

  2. 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

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

  4. Who Does What ?

  5. Quick Quiz… • Write down the 5 primary players involved in a typical import transaction…

  6. 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

  7. Roles & Responsibilities Matrix

  8. Roles & Responsibilities Matrix (2)

  9. Roles & Responsibilities Matrix (3)

  10. Parallels To Corporate and Personal Tax • Involves… • Accounting to the government (the B3 form) • Accurate financial information • Adherence to accounting practices…inventory • Added bonus…customs rules ! • The trick is…other parties are involved in filling out your accounting information…especially the exporter !

  11. Understanding The Customs Process: 3 Things Actually Cross The Border A Human Goods Information

  12. 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

  13. 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 OGD’s… • 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

  14. 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

  15. 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 environment…contacting the correct party for requirements with “live freight” waiting

  16. The Second “Who” of Importing Into Canada Q: Who Cares ? A: The government cares…and therefore we need to as well

  17. 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 organization’s 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 cost…simply supporting the audit process !

  18. Recommendations and Best Practices • Senior management awareness and understanding of compliance…the 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

  19. 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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