Canada Customs has announced plans for proposed new reporting requirements for goods being exported from Canada.

Currently, all goods exported from Canada valued at $2,000 or more and shipped to non-USA destinations (including goods that go through the U.S. in transit) must be reported. In the case of controlled, regulated or prohibited goods, the exporter must obtain the applicable permit, license or certificate from the appropriate department or agency prior to export, regardless of value.

New Prior to Export reporting timelines for exporters have been proposed and are scheduled to become effective in October 2001. The new reports must be made in accordance with the following guidelines.

Marine:
    -48 hours prior to export.
Rail and Air:
    - 2 hours prior to export.

Two types of carriers have been identified by Customs, Memorandum of Undertaking (MOU) and non-MOU carriers. MOU carriers, having agreed to compliance standards, do not have to file an Export Cargo Report while non-MOU carriers must file the report prior to leaving the port. Non-MOU carriers will face penalties for exporting goods without the export report having been presented.

These penalties will be added to the Administrative Monetary Penalty System (AMPS) in due course. The implementation schedule of AMPS penalties for carriers is yet to be determined.

Currently, all goods   exported from   Canada valued at   $2,000 or more and   shipped to non-USA   destinations (including   goods that go through the   U.S. in transit) must be   reported.

Customs have discovered that about 82% ($18 billion) of the shipments entering the USA for subsequent transshipment are not being reported to Customs as required. In a recent survey, 36% of the firms contacted stated that they do not report their exports.

Customs goal is to improve the reporting of exports to non-USA destinations (U.S. Customs import statistics are used to compile U.S. export data and are therefore not an issue). To accomplish this they propose to target goods that require examination prior to export and will create examination centres, thereby minimizing the disruption in the flow of goods for export.

In addition to the AMPS penalties for carriers mentioned above, AMPS

penalties for exporters are proposed as follows:

Exporter fails to report prior to export : 1st Offence - $1,000 (or 5% of the value, whichever is greater); 2nd Offence - $2,000 (or 10% of the value, whichever is greater); 3rd and subsequent Offence $3,000 (or 20% of the value, whichever is greater).

Exporter fails to provide export permit prior to export: 1st Offence - $1,000 (or 5% of the value, whichever is greater); 2nd Offence - $2,000 (or 10% of the value, whichever is greater); 3rd and subsequent Offence $3,000 (or 20% of the value, whichever is greater).

Exporter fails to submit summary report : 1st Offence $2,000; 2nd Offence $5,000; 3rd Offence $10,000 (cancellation of privilege).

In each case the record of the infraction will remain on the Exporters’ file for 3 years.

Customs predict that the new regulations will go into effect either late this year or early next year.

Publisher:      Rick Farrow Editors:     David Hoyland     Susan Love Contributors:      John Brooks      Jack Hayden