Courier Low Value Shipment Program

Cargo reporting and release

This section provides details for the cargo reporting and release stages of the Courier Low Value Shipment Program:

• Description
• Exclusions
• Inland movement
• Provincial taxes

Description

Before or when a shipment arrives, the participant will present a cargo/release list to the CBSA detailing all low-value shipments for which release is being requested. The list constitutes the cargo report as required by section 12(3)(b) of the Customs Act. The cargo/release list consists of two copies, one of which will be returned to the participant as proof of release by the CBSA.

(a) The header of the cargo/release list will contain the following information:

• carrier code
• carrier name
• port of exit
• vehicle identification number
  • For highway, use the licence number -- including province or state and year -- and trailer number.
  • For air, use the aircraft registration number and/or flight number and state.
  • For marine, use the vessel name and vessel registration number.
  • For rail, use the rail unit car initials and number.
• port of release
• date.

The above fields are in the header only and need not be matched to each individual shipment.

Each shipment on the cargo/release list will be documented using the following data elements:

• a unique identifier number
• consignee name and address
• importer name and address, if different from consignee
• name of shipper/exporter/vendor
• quantity
• weight
• estimated value for duty (in Canadian dollars)
• description
• country of origin.

The total number of shipments must be indicated on the cargo/release list.

Cargo/release lists must be split into two distinct sections: one for OIC/CIRO shipments ($0-$20) and one for low value shipments ($20.00-$1600).

(b)  All goods removed from the cargo/release list will require a manifest and will be processed through the regular procedures of RMD/Accounting.

(c)  The participant will direct the release information for each shipment to the appropriate customs broker. If the carrier assigns a release incorrectly, the broker will advise the carrier within two business days and the carrier will be responsible for notifying the correct broker.

Exclusions

The following shipments are to be excluded from the cargo/release list prepared by the participant:

• shipments that are prohibited, controlled, or regulated by an act of Parliament that prohibits, controls, or regulates the importation of goods or a regulation made under such an Act
• shipments valued at $1,600 or more.

Procedures for handling exceptions are as follows:

1. If the participant knows in advance that one of these conditions exists, the shipments should not be included on the cargo/release list and should be reported to the CBSA using the cargo reporting procedures described in the D3 series of customs memorandums.
2. If these shipments have been included on the cargo/release list in error and the participant notices that one of these conditions exists before the goods are delivered, the participant must generate a cargo control document (CCD). The cargo control number (CCN) will acquit the "unique number" assigned to the shipment on the cargo/release list. In the "Previous CCN" field of the cargo control document, the participant will insert the shipment's "unique number."
3. Copies of the CCD will be turned over to the CBSA and the broker. These shipments will be released by presenting an RMD package and will be accounted for individually by Form B3, Canada Customs Coding Form, or CADEX transmission.

The participant will notify brokers immediately in writing of any shipments that cannot be delivered, or which are refused by importers on delivery. These shipments must remain in possession of the carrier, and must be returned to sender under the same unique shipment identifier numbers assigned to the shipments at the time of importation.

Inland movement

Inland movement of LVS shipments from the frontier or first point of entry inland for customs clearance is permitted provided that the entire container/load of LVS shipments identified on the cargo/release list is moved inland (de-consolidation to move only some of the goods is not permitted).

All LVS shipments must be reported on a single cargo control document, indicating the total number of shipments in the container. Highway shipments are documented on Form A8A(B), Cargo Control Document, and reported at a highway sufferance warehouse. Transborder air shipments in highway service are documented on an air waybill and reported at an air sufferance warehouse.

The CBSA office of clearance must be indicated on the cargo/release list (shipments processed through the Courier LVS Program may not be re-manifested from the office of clearance shown on the cargo/release list).

Provincial taxes

The CBSA and some of the provinces have reached agreements on the collection of PST/HST and tobacco/alcohol taxes on imported non-commercial goods. As a general rule, where an agreement exists between the CBSA and a province, the PST/HST and/or provincial alcohol and tobacco taxes must be assessed and collected on imported non-commercial goods when they are applicable.

Non-commercial goods are defined as any goods imported into Canada other than goods imported for sale or for any commercial, industrial, occupational, institutional or other like use. Goods may not be accounted for as commercial goods when they are, in reality, casual.

When couriers/brokers do not remit these provincial taxes at the time of accounting, their casual shipments will not be released until the payment is made.

Further details regarding the accounting of these provincial taxes can be found in Memorandum D17-1-22. The rates and the provincial agreements can be found in D2-3-6.