Customs clearance for Canadian imports

Before the first import

• Business number and program accountCommercial importers need a CRA business number with an import-export program account (RM). Confirm it is active before goods ship.
• CARM Client PortalCARM is the CBSA’s system of record for commercial importation. Importers must register their business on the CARM Client Portal to transact with the CBSA and to see their statements and rulings.
• Financial securityUnder Release Prior to Payment, importers post their own financial security through CARM so goods can be released before duties are paid. Confirm the security is in place before the first shipment.
• Customs brokerIf a broker will transact with the CBSA on your behalf, appoint them formally and delegate access in the portal. The importer remains legally responsible for the declarations.

Classify, value and check the goods

• Tariff classificationEvery commodity needs an HS tariff classification. It drives the duty rate, some taxes and regulatory requirements, and it is not the same as an LTL freight class.
• ValuationDeclared value is usually based on the price paid or payable, with legislated additions and deductions. Related-party pricing, assists, royalties and discounts can change the calculation.
• Origin and tariff treatmentThe applicable tariff treatment depends on origin and, for preferential claims such as CUSMA, on proof requirements that must be met at the time of the claim.
• Other government departmentsFood, plants, animals, drugs, controlled goods and many consumer products carry requirements from departments such as the CFIA. Check reference systems like AIRS before the goods ship.

Release at the border

Most commercial shipments are released using electronic data submitted before arrival. For highway freight, the carrier transmits advance commercial information through eManifest and the broker submits a release request, commonly under PARS, so a decision can be made when the truck reaches the port of entry.

The CBSA can refer any shipment for document review or examination. Missing invoice data, vague descriptions or unanswered regulatory requirements are common causes of referral and border wait time.

Accounting and payment

• Commercial accounting declarationAfter release, the shipment is accounted for in CARM through the commercial accounting declaration within the prescribed deadlines. Corrections and adjustments are also made through CARM.
• Duties and taxesDuties depend on classification, origin and tariff treatment; GST generally applies to most commercial imports. Amounts are consolidated on CARM statements and paid through the portal or your broker’s arrangements.
• CorrectionsAn importer who has reason to believe a declaration is incorrect generally has an obligation to correct it within the legislated time frames. Do not wait for the CBSA to find the error.

Records and responsibility

1. Keep import records, including commercial documents and proof of origin, for six years following importation.
2. Reconcile CARM statements against your own shipment records each billing cycle.
3. Review broker-prepared declarations; authorizing a broker does not transfer the importer’s legal responsibility.
4. Confirm requirements again when products, suppliers or trade programs change.