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CANAAN TRANSPORT GROUP INC.

Canada Customs:

Opening Pandora’s Box

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AGENDA

• Introduction

• Customs Brokers

• Import– Duties and Taxes

– Other considerations

• Export

• Examples

• Questions and Answers

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INTRODUCTION

• Who – CBSA, Buyer, Supplier, Transportation, Customs Brokers, OGD

• What – Duties, Taxes, Admissibility, Legality

• When – Before, During and After

• Where – First point of entry or Last point of exit

• Why – Safety, Security, Revenue

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CUSTOMS BROKERS

• Licensed by CBSA

• Bonded and Trustworthy

• Like a Travel Agent or Insurance Broker

• Aware of new legislation

• Usually provides an integrated service

• Confirm that they have their own license

• www.cbsa-asfc.gc.ca/services/cb-cd/

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IMPORT

• Overview

• Country of Origin Markings http://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-3-1-eng.html

• Solid Wood Packaging http://www.inspection.gc.ca/plants/plant-protection/directives/forestry/d-98-08/eng/1323963831423/1323964135993

• Transaction Value

• Certificate of Origin or Statement of Origin

• SIMA regulationshttp://www.cbsa-asfc.gc.ca/sima-lmsi/menu-eng.html

• Import Permits and Import Control Listhttp://www.international.gc.ca/controls-controles/about-a_propos/impor/importing-importation.aspx?view=d

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DUTIES AND TAXES

• Importance of Harmonized tariff codes

• MFN and Preferential Tariff Treatmentshttp://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2012/01-99/countries-pays-eng.pdf

• GST and some exemptionshttp://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/txbl/menu-eng.html

• Advanced Tariff Ruling Request http://www.cbsa-asfc.gc.ca/import/ar-da/menu-eng.html

• Time limits for payment / GST Direct

• B2, B3 and B4 forms

• Record Retention http://www.cbsa-asfc.gc.ca/publications/dm-md/d17/d17-1-21-eng.pdf

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OTHER CONSIDERATIONS

• If food, then CFIA

• If electronics, then Industry Canada

• If automotive, then Transport Canada

• If apparel, then Competition Bureau/IC

• If chemicals, then could be Dangerous Goods or PMRA

• Customs inspections and holds

• Carnets and Temporary Importations

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EXPORT

• Simpler Customs Procedures

• Export Control List and EXCOL http://www.international.gc.ca/controls-controles/military-militaires/handbook-manuel.aspx?menu_id=73&view=d

• Electronic B13A – Some exceptionshttp://www.statcan.gc.ca/exp/index-eng.htm and http://www.cbsa-asfc.gc.ca/export/ndr-adr-eng.html

• Certificate of Originhttp://www.cbsa-asfc.gc.ca/publications/forms-formulaires/b232-eng.pdf

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OTHER MATTERS

• Set up an import/export account

• Talk to your accountant/lawyer

• OGD regulations

• Dangerous or hazardous goods

• Find a reliable forwarder and/or broker

• Do a sample first

• Give yourself a long lead time

• Tariff advanced ruling requests

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STORIES

• Import of tandoori oven

• Import of aluminum extrusions

• Import of competition Nissan

• Export of items to Burma / Belarus

• Export of logs

• Export civilian aircraft parts

• Illegal drugs

• Radioactive kitchenware

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IMPORT LINKS

• www.cbsa-asfc.gc.ca

• www.health.gc.ca

• www.dfait-maeci.gc.ca

• www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2012/01-99/tblmod-eng.html

• www.inspection.gc.ca

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EXPORT LINKS

• www.statcan.gc.ca/trade-commerce/cec/index-eng.htm

• www.cbp.gov

• www.usitc.gov/tata/hts/index.htm

• http://tc.gc.ca/eng/aviationsecurity/asc-41.htm

• www.edc.ca

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CORPORATE PROFILE

• Headquarters in Toronto, Canada

• Branches in Richmond, Vancouver and Montreal

• Licensed customs office in Ontario and BC

• Full range of integrated transportation and logistics solutions

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OPERATIONS CENTRE

• 28 loading bays• 50,000 sq. ft enclosed

warehouse• 50’ column spans• 26’ clear ceiling height• 24/7 security

recorded on multiple DVRs

• 4 reefer plugs• 7 acre facility• Customs Approved

Duty Free Zone Facility

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RETAIL CENTRE

• Heart of downtown core

• Business services mandate include transportation, mailbox rental, duplication and packaging services

• Courier and Downtown Operations facility

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SERVICES

• Freight Forwarding – Import / Export

• Customs Brokerage and Consulting

• Warehousing

• Business Services

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FREIGHT FORWARDING

IMPORT or EXPORT

• Ocean or Air LCL or FCL

• Truck and Rail

• Door to Door delivery

• Dangerous, Refrigerated, Oversized, Specialized and RO/RO cargo

• N.V.O.C.C. Operations

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CUSTOMS BROKERAGE

• Full EDI Capabilities

• 24 / 7 clearance

• Clearance at any port, airport, or border crossing in Canada

• Expertise with all types of cargo involving other government departments such as CFIA, Transport Canada

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WAREHOUSING

• Container specialist

• 24 / 7 capable operations

• In house fleet of container tractors, chassis and forklifts to handle all types of cargo

• CBSA Sufferance and Bonded facility

• 24 / 7 security, monitoring and access control

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RO/RO - BULK

• Multiple commodities handled

• All types of vehicular, towable or oversized equipment

• Access to special trailers and moving equipment

• CBSA Sufferance and Bonded facility

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NOTEWORTHY PROJECTS

• Designated Canadian specialist for the Canada Line Rapid Transit project

• Completed in 2009 on schedule and on budget

• Total of 40 train units imported over a span of 1 year

• Customs clearance of marbleware for Salvatore Ferragamo’s store in Vancouver

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CONTACTS

Head Office and Global Headquarters Vancouver Retail Store

#910 – 185 The West Mall 1085 Howe Street

Toronto, ON M9C 5L5 Vancouver, BC V6Z 1P6

Tel: 416.621.6800 Fax: 416.621.6801 Tel: 604.683.7447 Fax: 604.683.7437

Richmond Operations Centre Montreal Office

11371 Twigg Place Bureau 500, 7575 Route Transcanadienne

Richmond, BC V6V 3C9 Saint-Laurent, QC H4T 1V6

Tel: 604.873.1666 Fax: 604.295.3200 Tel:514.654.7447 Fax: 514.337.3989

www.canaantransport.com

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CANAAN TRANSPORT GROUP INC.

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