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Glossary
of Customs Terminology
Part I – Navigating Through
the Plethora of Acronyms
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| The world of customs and international trade is full of... well, acronyms.
B3’s, ACROSS, DAS’s, ECO’s, DPV, VFCC… the list is almost endless. |
| As confusing and seemingly arcane though it may be, understanding this specialized
terminology will greatly facilitate your communications with carriers, brokers,
forwarders and, in fact, everyone involved in the shipping process. |
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| Jumpstart Your Search
From the Links Below: |
 A
B C
D E
F G
H I
J K
L M
N O
P Q
R S
T U
V W
X Y
Z |
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A
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| ACIS–Automated Customs Information System |
| A computerized, 24/7 telephone service operated by Revenue Canada that
automatically answers all incoming calls and provides general customs information.
For a listing of ACIS numbers, click here. |
| ACROSS–Accelerated Customs Release Operations
Support System |
| The computerized system that enables shipment release inofrmation to be transmitted
electronically to Canada Customs. For more information on the ACROSS sytem,
please click here. |
| ADD–Anti-Dumping Duty |
| A Special Import Measure applied by Customs
to protect domestic producers by offsetting the potentially damaging effects of
goods being exported into Canada below “fair market” price. |
| AIRPARS–Air Pre-Arrival Review System |
| This is the Canada Customs Line Release program in effect at international
airports which allows for submission of release information to Customs prior to
the actual arrival of the shipment. |
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B
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| B3 |
| The Canada Customs coding form, also referred to as an “Accounting document”
or more simply, an “entry”. This form details the HS classification code(s) applicable
to imported goods and all other information relevant to an import transaction
(i.e., tariff treatment, country of origin, quantity, value, applicable duties,
taxes, etc.) Actually, brokers utilizing CADEX do not submit a hard-copy
B3 to Revenue Canada, but instead, transmit all of the same information electronically
(the hard-copy is usually still printed for billing purposes however). |
| BOL–Bill of Lading |
| A document that acknowledges receipt of the goods and establishes the terms
and conditions of a contract between a shipper and a carrier. The BOL may
sometimes be referred to as an OBL (Ocean Bill of Lading) or AWB (Airwaybill)
dpending on the particular mode of transport involved. |
| B2 (B2A or B2R) |
| A Canada Customs form used to claim refunds of duties paid at the time of
importation, file appeals under the Customs Act or other legislation, and
to amend B3 entry documents |
| BN–Business Number |
| In order to streamline the processing of import transactions, all businesses
dealing with Revenue Canada are required to have a Business Number.
To obtain a BN from Revenue Canada, call 1-800-959-5525 (or 613-941-0100 if calling
from outside Canada). |
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C
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| CADEX–Customs Automated Data Exchange |
| A computer network that enables customs brokers and importers to transmit
entry data including duty and tax information to Revenue Canda electronically. |
| CCD–Cargo Control Document |
| This refers to the cargo manifest, whether it be truck bill of lading, airwaybill
or ocean bill of lading. |
| CCI–Canada Customs Invoice |
| A prescribed form which details all shipment information pertinant to Revenue
Canada. All data covered by the CCI is mandatory for shipments valued over
$1,600 (Cdn Funds). You can obtain a copy of the form online from
our Download Center. |
| CI–Commercial Invoice |
| For shipments valued up to $1,600, Canada Customs will accept the shipper’s
own commercial invoice document. Also referred to sometimes as a “Pro Forma Invoice”.
Note: Depending on the context, the term “CI” may also refer to Customs Inspector. |
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D
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| DAS–Detailed Adjustment Statement |
| A form generated by Revenue Canada to amend commodity information originally
reported to Customs (e.g., a change in tariff classification or valuation of the
imported goods). DAS’s may be “revenue” or “non-revenue” types depending
on whether additional duties and/or taxes are determined by Customs to be owing. |
| DPV–Duty Paid Value |
| The value at which applicable GST is calculated. DPV is the aggregate
of the value of the goods in Canadian funds, plus applicable Canadian import duties
and any SIMA assessment. |
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E
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| E29B |
| Canada Customs document used to report and control goods which enter Canada
on a temporary basis and qualify under the Temporary Import Regulations.
Also referred to (formally) as a Temporary Admission Permit. |
| ECO—Exporter’s Certificate of Origin |
| The document used to certify the origin of products under the North American
Free Trade Agreement. A properly completed NAFTA certificate verifies
the country of manufacture of the goods being shipped, thereby allowing for preferential
duty treatment. You can obtain a copy of the form online from our Download
Center. |
| EDI–Electronic Data Interchange |
| The computer-to-computer transmission of information between shippers, importers,
brokers, carriers and Canada Customs. The scope of EDI is broad and its application
in the customs environment is expanding all the time. |
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F
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| FIRST–Frequent Importer Release System |
| A Line Release system designed for use by importers with a high volume of
low risk shipments (e.g., bulk commodities). |
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G
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| GAA–General Agency Agreement |
| A legal document provided by an importer to a Customs Broker authorizing the
broker to represent the importer in matters relating to Customs and Excise. Also
referred to as a Power of Attorney or “PA” form. |
| GATT–General Agreement on Tariffs &
Trade |
| A multilateral trade agreement designed to liberalize and, to a great extent,
harmonize trade around the world by incrementally reducing tariff barriers
and standardizing customs practices. The GATT or World Trade Organization (“WTO”)
as it is now called, also acts as an impartial judiciary body for the resolution
and settlement of international trade disputes. |
| GST–Goods & Services Tax |
| Federal sales tax levied on a “value-added” basis on most goods and services,
including goods imported into Canada. Also see DPV. |
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H
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| HS–Harmonized System |
| The Harmonized System is an international goods classification nomenclature
originally developed in Europe and now used by most trading nations throughout
the world including Canada, the United States and Japan. The first six digits
of the HS number classify the goods internationally (e.g., 8471.50) and the remaining
digits provide classification information within the importing country (i.e.,
for statistical or duty assessment purposes). Also called the Harmonized Commodity
Description and Coding System. |
| HST–Harmonized Sales Tax |
| The combination of Provincial and Federal Sales Taxes (PST and GST) in certain
Maritime provinces. |
| HVS–High Value Shipment |
| An import shipment valued at over $1,600 (Canadian Funds). |
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I
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| INPARS–Inland Pre-Arrival Review System |
| The Line Release program utilized at inland sufferance warehouse locations. |
| ITC–Input Tax Credit |
| A tax rebate claimed by businesses that are GST registrants for the GST or
HST paid or payable on goods and services. |
| IT or ITB–In-Transit Bond |
| Security posted with U.S. Customs to cover the movement of cargo “in bond”
from one location to another when the ultimate destination is other than the United
States (e.g., goods moving from Mexico to Canada through the U.S.A.) . |
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J
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| JIT–Just In Time (Manufacturing) |
| Management theory predicated on the reduction of stored inventory (i.e., “producing
the required items, at the required quality and in the right quantities at the
precise time as they are required.”). The prevalence of JIT manufacturing
has highlighted the need for fast, increasingly efficient release and clearance
processes (esp. involving EDI). |
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K
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| K84 |
| The form number of the accounting statement used by customs brokers to reconcile
their consolidated remittance of duties and taxes to Revenue Canada. |
| K14 |
| Revenue Canada form number for high-level appeals made to the Deputy Minister
(i.e., requests for redetermination of tariff classification or reappraisal of
value). |
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L
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| LTL–Less Than Truckload |
| Most road freight shipments transported by common carriers are LTL.
The term LCL similarly applies to ocean freight shipments that are “Less
than Container Load”. |
| LVS–Low Value Shipment |
| Shipments valued at under $1,600 (Canadian Funds). Canada Customs
provides for expedited processing of these shipments under the LVS Entry Program. |
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M
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| MFN–Most Favoured Nations (Tariff) |
| Goods imported from the few countries that are not members of the General
Agreement on Tariffs and Trade (GATT), or from countries with which Canada has
no other trade agreements, are subject to a 35% duty under the General Tariff.
Goods imported into Canada from all other countries are subject to the MFN tariff
treatment (unless they also qualify for preferential tariff treatment under a
free trade agreement such as NAFTA). |
| MPF–Merchandise Processing Fee |
| This is a user-fee levied by U.S. Customs
on each shipment imported into the United States. Under NAFTA, the MPF does not
apply however. |
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N
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| NAFTA–North American Free Trade Agreement |
| Free Trade Agreement implemented on January 1, 1994 between Canada, the United
States and Mexico to phase out duty on most goods within a 10 year period.
In order for an importer to claim the benefits of NAFTA tariff preference, the
exporter must provide a NAFTA Certificate of Origin for products that qualify
under the particular “Rules of Origin” applicable to the good in question.
You can obtain a copy of the entire NAFTA online from our Download
Center. |
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O
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| OBL–Ocean Bill of Lading |
| See “BOL–Bill of Lading” |
| OGD–“Other Government Departments” |
| Term used to refer to Federal agencies and government departments other than
Revenue Canada or the U.S. Customs Service that impose import restrictions or
documentation requirements that are administered by the two aforementioned entities
at the time of importation. |
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P
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| PA–Power of Attorney |
| See “GAA–General Agency Agreement” |
| PARS–Pre-Arrival Release System |
| Customs Line Release system used to clear goods prior to their arrival in
Canada. |
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Q
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R
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| RMD–Release on Minimum Documentation |
| Customs release which is obtained by importers or brokers with financial security
on file with Revenue Canada, by initially submitting minimum documentation (i.e.,
a cargo manifest, commercial invoice and/or CCI, along with any permits or certificates
required by other government departments) |
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S
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| SIMA–Special Import Measures Act |
| The legislative authority to take retaliatory action against goods which are
determined to have been “dumped” or “subsidized” by levying anti-dumping or countervailing
duties. See “ADD–Anti-Dumping Duty” |
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T
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| TIB–Temporary Import Bond |
| U.S. Customs permits releiv of import duties for particular goods imported
into the United States on a temporary basis. The goods must be exported
under Customs supervision within a prescribed timeframe however, otherwise the
full amount of applicable duties must be paid. This should not be confused
with an IT entry however. |
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U
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| USCS–United States Customs Service |
| Federal agency responsible for administration and enforcement of all U.S.
regulatory requirements applicable to the import and export of goods to/from the
United States.. |
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V
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| VFCC–Value for Currency Conversion |
| The value of imported products in the currency of sale (subject to any applicable
additions or deductions) prior to conversion into Canadian funds. |
| VFD–Value for Duty |
| The VFCC when converted into Canadian funds at the currency exchange rate
based on the date of direct shipment to Canada. |
| VFT–Value for Tax |
| The value on which the GST or HST is calculated. The VFT is the aggregate
of customs duties (including Excise duties and taxes, if any) and any applicable
SIMA assessment. |
| VI–Value Included |
| Generally, a shipment of goods which arrives in Canada subsequent to the main
consignment that was reported to Customs (e.g., a missing box which arrives after
the shipment has cleared, but which has already been accounted for). |
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W-X-Y-Z
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| N/A |
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| Did we
miss something? |
| If you would like us to add an acronym to the list, please feel free to drop
us an e-mail with your suggestion
and we will be sure to include it in our next update. Terms beginning with the
letters Q, W, X, Y or Z would be especially appreciated! |
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