Subject: B13A - Follow up on this subject August 28

Updated August 28, 2002
Subject: B13A - Follow up on this subject
August 28, 2002
Question:
Please inform Customs that it may not be on the B13A form but the data is a
required field in the CAED software under the section Customs Details
"Customs Office of Exit". The exporter or the agent inputting the required
fields using CAED does not know which Customs office of exit it will be.
Answer:
You are correct in regards to CAED. The port of exit is on the automated
form. This field is required by Stats Canada and needs to be filled out to
the best of the exporter's ability as customs need to know where the goods
are being exported. I will indicate under the backgrounders that C005 will
be applied to CAED users who knowingly regularly abuse the port of exit.
Controlled goods(Section 10 of the export regulations) that require permits,
licenses, or certificates must be exported at the place of export indicated
on the form. Exporters that do not comply with this provision will be amped
under C345.(Exporter failed to report goods to export control prior to
export)
Subject: Contravention 005 for incorrect information on the B13A
Question:
Regarding Contravention 005 for incorrect information on the B13A, there are
fines for any incorrect information except for non-mandatory fields. One of
the mandatory fields is Customs Port of Exit.
This information is not generally known to the exporter. It is information
only the carrier's operations department can provide and it can sometimes
change at the last minute. Is the exporter going to be AMPed because the
carrier gave incorrect information? Is the carrier going to get AMPed
because there was a last minute change to the customs exit point of the
container for operational reasons?
For example, if the container misses the intended vessel (a non-mandatory
field) and it diverted to another vessel or sent to another port of loading
to catch the intended vessel, the Customs Port of Exit can change. A
typical example of this is the port of Vancouver being the intended Customs
Port of Exit and for various last minute reasons, the container is diverted
to Seattle or Tacoma by road. The Customs Port of Exit will no longer be
port of Vancouver but the border crossing point between B.C. and Washington.
The B13A will have already been filed 48 hours beforehand or earlier so in
this regard, an amended B13A will need to accompany the highway manifest and
it will trigger an AMPS fine according to this rule. The exporter may or
may not know about such routing change.
Answer:
Regarding Contravention 005 for incorrect information on the B13A, there are
fines for any incorrect information except for non-mandatory fields. One of
the mandatory fields is Customs Port of Exit.
The port of exit is not on the existing B13A for the very reasons you have
raised. All fields on the B13A are mandatory with the exception of field #3
Exporter reference number that is used for the exporter's records; Field #7
Export permit if no permit is required; Field # 10(b) if no vessel applies;
Field #23 If goods are not sold.....if this situation does not apply.
The most current B13A can be viewed here.
AMPS - Tips to help you verify your compliance
August 27, 2002
(French to follow)
What is AMPS?
The Canada Customs and Revenue Agency (CCRA) has a new penalty system,
called the Administrative Monetary Penalty System (AMPS). AMPS addresses
non-compliance with customs legislative, regulatory, and program requirements.
On December 3, 2001, we implemented part of the AMPS program. We began
with the commercial stream, with penalties for five contraventions of the Customs
Self-Assessment (CSA) program. We also introduced a transition period for the
remaining commercial AMPS penalties, to give clients time to assess the
potential impact on their customs activities and bring their systems into full
compliance. During this time, we issued warnings only. We have extended the
transition period to October 7, 2002.
If you are a member of the trading community, we encourage you to use this
additional time to get ready for AMPS. Feel free to contact us if you need help in
improving your level of compliance.
Getting ready for AMPS
If you are involved in importing or exporting goods and you continue to comply
with customs requirements, AMPS will not affect you.
If you are unsure whether or not you will be affected, make sure you understand
your obligations and then assess your state of compliance. We want to help you
achieve and sustain compliance over timenot just improve compliance on a
“hit-and-miss” basis. This means you need to look carefully at all your customsrelated business systems, processes, and procedures.
If you export goods, make sure you are aware of your customs reporting
requirements.
Since expedited release privileges will be linked to your compliance record, your
record is very important to your bottom line.
Sample checklist for importers, exporters, and service providers*
Look at your customs-related systems, processes, and documents
Have you consulted with your service providers (e.g., your broker or customs
consultant), or with the CCRA to verify that the tariff classification, tariff
treatment, and valuation of the goods you import and export are in accordance
with the requirements of the Customs Act, and the Customs Tariff?
Can you produce the customs documents and supporting information, including
certificates of origin, that we need to verify your import and export transactions?
Have you ensured that your imported and exported goods comply with the
requirements of other departments and agencies (e.g., the Department of
Foreign Affairs and International Trade, or the Canadian Food Inspection
Agency)? Do you have all the necessary licences and permits?
*
This is only an example. It may not include all areas of your business systems and processes
that you should verify for compliance with customs requirements. Contact Client Services at your
regional customs office for more information.
Are your goods subject to dumping or countervailing duties? If so, do your
procedures ensure compliance with customs requirements?
Is your carrier aware of customs reporting and release procedures and the
documents required for international shipments?
Verify the links between your customs program and your accounting
systems and procedures
Are there systems links between your customs documents and your purchasing,
receiving, vendors’ invoice, and payables processes? Have you documented
these processes to identify any shortcomings?
Have you verified the links between your customs documents and your
accounting systems and procedures? In other words, have you selected a
representative sample of transactions and conducted an audit?
Assess your level of compliance
Have you determined your current level of compliance, as well as that of your
service providers? Have you identified any shortcomings in your systems or
processes that you need to address?
Develop and implement a compliance plan
Do you have a plan to address any shortcomings you identified in your systems
or processes?
Does your plan include a strategy for monitoring compliance over time?
Sample checklist for carriers*
Ensure awareness of customs procedures and document requirements
Are the drivers, terminal personnel, dispatchers, and traffic managers who are
involved with your trans-border shipments aware of the Transportation of Goods
Regulations? Are they aware of your company’s standard operating procedures
and the documents required for international shipments?
If you transfer international shipments to secondary carriers, do they have the
necessary knowledge of customs requirements?
Use CSA-approved carriers and drivers for CSA shipments
Do you assign only pre-approved drivers with a valid CSA photo identification
card to shipments consigned to CSA importers?
Do you have procedures in place to ensure that CSA shipments will not be
transferred to non-approved carriers before being released from customs?
Need more information?
To find out more about AMPS, contraventions, and penalties, visit our Web site
at: www.ccra.gc.ca/customs/general/amps.
*
This is only an example. It may not include all areas of your business systems and processes
that you should verify for compliance with customs requirements. Contact Client Services at your
regional customs office for more information.
Le Régime de sanctions administratives pécuniaires (RSAP)
Conseils pour vous aider à vérifier votre observation
Qu’est-ce que le RSAP?
L’Agence des douanes et du revenu du Canada (ADRC) a un nouveau régime
de sanctions : le Régime de sanctions administratives pécuniaires (RSAP). Le
RSAP régit l’inobservation des exigences en matière de lois, de règlements et de
programmes relatifs aux douanes.
Le 3 décembre 2001, nous avons mis en œuvre une partie du programme du
RSAP. Nous avons commencé par le secteur commercial, en imposant des
pénalités pour cinq infractions au Programme d’autocotisation des douanes
(PAD). Nous avons également instauré une période de transition pour les autres
pénalités commerciales du RSAP pour laisser aux clients le temps d’en évaluer
les éventuelles répercussions sur leurs activités douanières, et de s’assurer que
leurs systèmes sont conformes aux exigences. Pendant cette période, nous
n’avons émis que des avertissements. Nous avons prolongé la période de
transition jusqu’au 7 octobre 2002.
Si vous êtes membre de la communauté commerçante, nous vous encourageons
à profiter de ce délai pour vous préparer à l’entrée en vigueur du RSAP.
N’hésitez pas à communiquer avec nous si vous avez besoin d’aide pour
améliorer votre niveau d’observation.
Préparation pour le RSAP
Si vous importez ou exportez des marchandises et continuez d’observer les
exigences douanières, le RSAP ne vous touchera pas.
Si vous pensez être touché, assurez-vous de comprendre vos obligations et
ensuite, évaluez votre niveau d’observation. Nous voulons vous aider à observer
et à maintenir votre niveau d’observation – non seulement à l’améliorer de façon
aléatoire. Vous devez donc examiner attentivement vos systèmes, processus et
procédures administratifs relatifs aux douanes.
Si vous êtes exportateur, assurez-vous de connaître les exigences en matière de
déclaration douanière.
Vu que les privilèges de mainlevée accélérée dépendront de votre dossier
d’observation, celui-ci est très important pour vos résultats nets.
Exemple de liste de vérification pour les importateurs, exportateurs et
fournisseurs de services∗
Vérification de vos systèmes, processus et documents en matière de
douane
Avez-vous consulté vos fournisseurs de services (p. ex. votre courtier ou votre
consultant en douanes) ou l’ADRC pour vérifier que le classement tarifaire, le
traitement tarifaire et l’évaluation des marchandises que vous importez ou
exportez répondent aux exigences de la Loi sur les douanes, et du Tarif des
douanes?
∗
Ceci n’est qu’un exemple. Il n’inclut peut-être pas tous les éléments de vos systèmes et
processus commerciaux dont vous devriez vérifier la conformité aux exigences douanières. Pour
obtenir plus de renseignements, communiquez avec les Services à la clientèle de votre bureau
de douane régional.
Êtes-vous en mesure de présenter les documents douaniers et les
renseignements à l’appui, y compris les certificats d’origine, dont nous avons
besoin pour vérifier vos importations et vos exportations?
Avez-vous vérifié que vos importations et vos exportations respectent les
exigences des autres ministères et agences (p. ex. le ministère des Affaires
étrangères et du Commerce international ou l’Agence canadienne d’inspection
des aliments)? Avez-vous les permis et les licences nécessaires?
Vos marchandises peuvent-elles faire l’objet de dumping ou de droits
compensatoires? Si oui, vos procédures respectent-elles les exigences
douanières?
Votre transporteur est-il au courant des procédures relatives à la déclaration
douanière et à la mainlevée, et des documents requis pour les expéditions
internationales?
Vérification des liens entre votre programme douanier, vos systèmes et
procédures comptables
Y a-t-il des liens systémiques entre vos documents douaniers et votre processus
d’achat, de réception, la facturation par vos fournisseurs et le traitement de vos
comptes créditeurs? Avez-vous examiné ces processus afin de vérifier s’il y avait
des lacunes?
Avez-vous vérifié s’il y avait des liens entre vos documents douaniers et vos
systèmes et procédures comptables? Autrement dit, avez-vous fait une
vérification sur un échantillon représentatif de vos transactions?
Évaluation de votre niveau d’observation
Avez-vous déterminé votre niveau d’observation actuel, ainsi que celui de vos
fournisseurs de services? Avez-vous repéré des lacunes à combler dans vos
systèmes ou vos processus?
Élaboration et mise en œuvre d’un plan d’observation
Avez-vous un plan pour combler les lacunes repérées dans vos systèmes ou vos
processus?
Votre plan comprend-il une stratégie à long terme de vérification de
l’observation?
Exemple de liste de vérification pour les transporteurs*
Vérification de la connaissance des formalités douanières et des
documents exigés
Les chauffeurs, le personnel d’aérogare, les répartiteurs et les directeurs du
transport qui participent à vos expéditions transfrontalières sont-ils au courant du
Règlement sur le transit des marchandises? Connaissent-ils les procédures
d’exploitation normales de votre société et les documents requis pour les
expéditions internationales?
Si vous transférez une expédition internationale à un transporteur secondaire,
celui-ci connaît-il suffisamment les exigences des douanes?
∗
Ceci n’est qu’un exemple. Il n’inclut peut-être pas tous les éléments de vos systèmes et
processus commerciaux dont vous devriez vérifier la conformité aux exigences douanières. Pour
obtenir plus de renseignements, communiquez avec les Services à la clientèle de votre bureau
de douane régional.
Recours à des transporteurs et des chauffeurs approuvés pour le PAD
pour les expéditions PAD
Acceptez-vous uniquement des chauffeurs préautorisés, possédant une carte
d’identité avec photo du PAD pour les expéditions aux importateurs PAD?
Disposez-vous de procédures pour vérifier que les expéditions PAD ne seront
pas transférées à des transporteurs non autorisés avant la mainlevée?
Besoin de plus de renseignements?
Pour en savoir plus sur le RSAP, les infractions et les pénalités, consultez notre
site Web à
www.ccra-adrc.gc.ca/customs/general/amps/menu-f.html.
AMPS – Frequently asked Questions
Subject: B13A - A Commentary (August 12, 2002)
Question: We are a contracting carrier for LCL shipments...
We fully understand and agree with our government's need for accurate and
timely submission of the B13A, post the 9/11 tragedy, as means to monitor what
is being exported from our country, besides trade statistics, which was the
original intent of the B13A. The title of the act, "Reporting of Exported Goods
Regulation" itself suggests an after the fact reporting, which used to be the case
with B13's.
My company recently sent out a mailing informing all our clients of the need to
file B13As 48 hours before loading on board vessels and to furnish us with a
Customs validated copy of same. Nearly all our clients were unaware of such a
requirement; some have never even heard of AMPS, which was generally
thought to be intended for importers. Much education is still ahead before
October 7.
As a carrier responsible for ensuring that B13As are properly filed before goods
are loaded into our containers, I have alerted you to a loophole concerning goods
that are under $2,000 in value. There is no way for a carrier to know if a B13A is
missing or if it is because it is not required. If the carrier is worried about being
"AMPed", the entire container will be held back on account of one missing B13A,
which may turn out to be not required after all. Exceptions create confusion, if not
abuse. It would be much simpler for everyone concerned if all exports of any
value required a B13A or Summary Reporting, without exception. A shipper
unwilling to disclose the name of the exporter or consignee or risk examination
could be claiming that the goods were under $2,000 value in order to avoid filing
a B13A. This is particularly relevant with LCL (less-than-full-container) shipments
where, unlike full container load shipments, chances are that it could well be
under $2,000 value. Yet, undeclared goods pose a security risk, as the transport
documents do not always show the name of the exporter or the ultimate
consignee or the final destination of the goods. What has not been declared
cannot be slated for examination as Customs won't even know about the
shipment until after the fact, through post audits of vessel manifests.
In your email, you mention that the CME may not agree to changing filing
requirements for shipments below $2,000 value. In truth, how many commercial
shipments are below $2,000 in value? Most shipments below $2,000 value are
not commercial shipments but personal shipments. If there was any aversion on
the part of the CME towards government paperwork over small shipments, it was
probably because of their inconsequence to trade statistics. Security
considerations, however, is different matter. We believe that export reporting
should be accurate, thorough and timely if it is now primarily for the purpose of
anti-terrorism and cargo security.
Having made the above comments for CCRA's consideration, we would like to
make the following further suggestions:
1. The electronic transaction number returned to the CAED filer should
incorporate within it the transaction date so that the carrier can tell that the B13A
was filed in a timely manner according to the regulation. If the CAED was filed
last minute on the sailing date, the carrier cannot know if the exporter was in
contravention or not.
2. CCRA should check each B13A submission immediately upon filing and either
allow the shipment to proceed its course or notify the carrier immediately that an
examination will be conducted. This is extremely important for ocean cargo
consolidators such as our company because under the present procedure,
containers are to be diverted to a Customs appointed warehouse for de-vanning
and examination, causing damages and missing the vessel, not to mention the
exorbitant fee of $750 charged to the consolidator (shipper). In many cases,
$750 is more than the entire profit of the consolidation. The goods in a
consolidation are loaded at our Customs bonded warehouse. There is no reason
why any shipment of interest to Customs cannot be held at the warehouse for a
Customs examination prior to it being loaded into a consolidation container.
There should be no random or planned interdiction of an export consolidation
container once in transit unless there are valid grounds, if B13As had been filed
while the goods were still in the bonded warehouse. In this regard, we feel that
48 hours is actually too short. Ideally, the B13A should be filed the moment the
goods leave the exporter's premises, if not sooner.
3. CCRA should reach an understanding with U.S. Customs that goods approved
for export moving over U.S. territory by road or rail for loading at a U.S. port
should not be subject to U.S. Customs interdiction and examination. Perhaps this
could be a reciprocal agreement for U.S. goods moving over Canadian territory
for loading at Canadian ports. We have encountered a number of cases where
U.S. Customs have interdicted our consolidation containers at the U.S. border for
a U.S. Customs examination, even though the container was on the way to the
U.S. port for loading. This practice by U.S. Customs authority over Canadian
exports is a trade restraint against Canada and has caused damages to cargo,
missing the vessel loading and of course, the exorbitant charge by the U.S.
Customs appointed warehouse for the unloading and loading.
4. Canada should share the information collected from the B13A filings with U.S.
Customs. Particularly, when export containers transit the U.S., such information
made available to U.S. Customs may prevent needless interdictions and random
examinations by their Customs officers, particularly if they are given the right to
examine goods at bonded warehouses in Canada if they so wished. The
Canada/U.S. border is no place to be unloading and reloading carefully blocked
and braced export containers about to go on an ocean voyage just to satisfy U.S.
Customs interests. Again, this could be a reciprocal agreement for U.S. exports
exiting out of Canadian ports. Presently, B13As accompany the truck or rail and
are surrendered at the border after the broker makes the U.S. bond papers. If the
Canadian exporter is encouraged to file electronically using CAED, an extra hard
copy still needs to be prepared in order to make the U.S. Customs bond. If CAED
information were available to U.S. Customs, then the hard copy may not be
necessary. This also can be a reciprocal agreement with the U.S., which to our
knowledge, now requires an Advanced Manifest Information. Canada's CAED
can serve as their SEDs and vice versa for U.S. exports via Canadian ports.
5. B13A information could be shared with all of Canada's trading partners as their
Advance Customs Information. This could be done easily if the B13A information
were to be put on an Intranet or virtual private network (VPN) among member
nations. With reciprocal agreements, CCRA could have access to other
countries' export declarations, thus eliminating the need for importers or carriers
to file advance customs information on manifested incoming goods. If all
countries were to share their export declaration data, every country would have
detailed information on all goods aboard any ship coming to their port, not just
goods consigned to their country.
Subject: General
Question: How can the Canadian Freight Forwarder be held responsible for
mistakes made by their Overseas Agent/Office? I.e.Overages /
Shortages, inaccurate manifesting, missing documentation etc.?
Answer: No penalties will apply as long as the discrepancy is corrected prior to
document submission to customs. However, once documents have
been submitted, AMPS will apply!
Subject: B-13 (A)
Question: How many digits have to be indicated in the HS Code?
Answer:
All 10 Digits for HS Code or all 8 Digits for Export Code
Question: What are the submission deadlines for the different modes of
Transport?
Answer: Marine – 48 hours, Air – 2 Hours
Question: If a Carrier or a NVOCC does not receive the B-13 in time, what
consequences will there be?
Answer: As the carrier will be held responsible for the contravention, the
shipment will be left behind!
Question: We need to know what we do with the exporter number required on
a B-13 when the shipper is a foreign company buying ex works?
Answer:
Pending
Subject: e-filing of B13A (July 2, 2002)
Question:
We have one issue to table, namely the new B13 validation
requirement and the associated AMPs penalty. The B13 requires
validation release from CCRA prior to the cargo being boarded. As
we understand it, the shipper or agent has a choice to either
complete and file the B13 via the internet in which case it will be
validated and a unique number assigned. Alternatively we can
deliver it hard copy to customs who will stamp/number and return.
Problem with the Internet solution, its stand-alone and cannot be
fed via EDI from host systems. Hard copy is time consuming and
impacts our lead-time before cut off.
Apparently any carrier who boards a shipment with a non-validated
B13 is subject to penalty under AMPs (ie: not the shipper or
forwarder). We are looking at various options to try and streamline
the validation reporting to carriers. Prior to undertaking any
programming or process
changes, we would like to get feed back from some
carriers/forwarders, as we fear it might end up like the security
declaration where everyone has a somewhat unique take.
Answer:
As per our telephone call yesterday regarding the CAED software; I
am attaching the record layout of the file structure for an electronic
export transmission. As your E-mail to Doug Waldie stated
concerning the current Internet solution, the CAED software is a
stand-alone solution and cannot be fed from your legacy system.
However, an option that is currently under development and is
called the Direct Transmit option, will allow your legacy system to
generate a flat file that meets the requirements of the Internet
program. Essentially, users of this option will have their internal
systems generate a flat file to our specifications for each export
declaration. The CAED program will provide all users of this option
a "data return module" which will include the encryption and
transmission software's necessary to transmit the data to the CCRA
and STC collection servers.
So by mapping your data elements to our requirements and utilizing
the data return module, your systems developers will be able to
send data via the internet without having to re-enter any of the data
elements already present on your host or legacy system. I hope this
explanation answers your concerns.
If you have any questions or concerns with respect to the process
or the New proposed File Layout for B13A Forms Sent
electronically, please feel free to contact Wayne Johnson, Chief of
Operations, International Trade Division, Statistics Canada
Ph: (613) 951-0314, Fax: (613) 951-0117, E-Mail:
mailto:[email protected]
Follow-up Question:
How will the carrier know that such e-filing has taken place?
Naturally, the carrier would want to have proper confirmation prior
to loading the goods on it's conveyance. The Freight Forwarder, in
turn, will want to make sure to have such 'proof', so that the goods
will not be left behind.
Follow-up Answer:
In response to your question, the header record that is electronically
transmitted contains an authorization ID in positions 8-13 as well as a form
ID in positions 17-27. (The record layout has been modified slightly since
the one I sent you....I have attached the latest version with this
message.) The authorization ID will be assigned by the CAED help desk and
the Form ID (which is a sequential number) will be generated by each
companies legacy system.
When the systems programmer maps the legacy system components to the flat
file structure, he/she should also alter the companies internal programs to
insert these 2 fields on the manifest or waybill or other associated
documentation. Alternatively, if the company does not wish to alter their
current legacy document generation systems, the content of these two fields
could be manually inscribed on the above mentioned documents.
These 2 ID numbers will:
1. Allow CCRA to identify and access the electronic file for that
particular shipment when they view the manifest, waybill, etc prior to
exportation or at the port of exit.
2. Prove to your downstream freight forwarders, carriers, shippers, etc.
that you are approved for this mode of export reporting (authorization ID)
and that you have submitted said shipment electronically (Sequence number).
3. Additionally, each approved company receives a letter signed by both
CCRA and STC certifying that they are indeed participants (authorization
ID) in the electronic reporting program. This letter can be copied and
distributed to all necessary partners of the company involved in the export
process for internal verification purposes.
**Note:
The Export Process Division (EPD) has revised its export regulations. We expect
that the Legal Services of Canada Customs and Revenue Agency will approve
the draft regulations by the end of July. At that time a Customs Notice will be
prepared advising of the revised regulations. The time allotment for the
publishing of this Notice is two weeks. CIFFA has no details on the proposed
changes at this time but does not expect material changes to the information
given above.