Source: Canada US
Link: Canada Announces End of Customs Paper Reporting in 2020
On July 8, 2019, the Canada Border Services Agency (“CBSA”) issued Customs Notice 19-14 “Mandatory electronic export reporting for exporters” in which it announced paper reporting will end on June 30, 2020. Canadian exporters will not longer be able to file Form B13A to report exports.
As of June 30, 2020, it will be mandatory for all exporters and their service providers to file export declarations electronically. There will be two electronic reporting methods available to exporters to report goods: the Canadian Export Reporting System (CERS) and the G7 Export Reporting Electronic Data Interchange (G7-EDI). However, CERS will not be available until March 16, 2020. CERS is a new system that will replace the existing Canadian Automated Export Declaration (CAED) system. This means that exporters currently using CAED will be required to switch to a new electronic reporting system. Starting on March 16, 2020, you may register for CERS by submitting a completed CERS Application Form to the Commercial Registration Unit: CBSA.Export_Program-Programme_Exportation.ASFC@cbsa-asfc.gc.ca
G7-EDI currently exists and can be used now. G7-EDI requires an investment in computer software and hardware.
This is important for Canadian exporters because exporters must report exports valued over $CDN 2,000. Canadian exporters must complete an export declaration for any export of goods and/or technology to any country (except the United States & Puerto Rico and the U.S. Virgin Islands) valued over at $CDN 2000 or more (subject to regulated exceptions). Export reporting allows the government to review the information and conduct a risk assessment and enables Statistics Canada to compile export trade data. The reporting requirement is found in section 95 of the Customs Act and the Reporting of Exported Goods Regulations.
Even small sized packaged can be valued over $2,000 (most shipping containers exceed the threshold). The CBSA conducts a risk assessment as to whether the goods should have an export permit or are destined for a sanctioned country or person. If the package/shipment does not include an export declaration, the CBSA may detain the goods and, thereby, delay the transportation of the goods to its destination.
The general rule is that all goods valued at or over $CDN 2,000 must be reported. That being said, certain goods are not required to be reported on an export declaration. The exempted goods are listed in sections 6 and 7 of the Reporting of Exported Goods Regulations and are further explained in CBSA D-Memorandum D20-1-1, Export Reporting. Provided that the following goods are not prohibited goods or restricted goods (that require an export permit) and are not being sent to a designated person under Canada’s or the United Nations’ economic sanctions, the following limited classes of goods may be exported without being reported by the exporter:
The reporting MUST take place before the goods are shipped (the attempt to export). The minimum time frames for reporting exports to the CBSA are as follows:
If the CBSA randomly detains your goods (or is informed about the export by a competitor or disgruntled employee or another person and selects the goods for inspection), you will be asked to provide information about the goods. This could delay the export weeks, months or years. It is possible that the detained goods will be seized as forfeit and destroyed.
For more information, contact Cyndee Todgham Cherniak at 416-307-4168 or at Cyndee@LexSage.com. For more information about export controls and exporting, please refer to the LexSage website.