Ottawa, April 25, 2002
1. This is a reminder to parties who import commercial shipments into Canada.
2. Effective May 1, 2002, the correct 10-digit HS code will be required before the release of certain commercial shipments, as stated in CN-410 Customs Notice (mandatory HS Requirement), October 2001.
3. This requirement applies to all paper and electronic RMD and PARS releases valued at CAN$1,600 or more.
4. Where more than one commodity is included in the shipment, the 10-digit HS code has to reflect either:
(a) the highest value invoice line of the shipment, or
(b) a reasonable representation of the goods within the shipment.
5. The term "reasonable representation" is defined as a commodity line that reflects the true nature of the goods contained in the shipment.
6. The HS code must be placed on the invoice line of the commodity that shows either the highest value line or a reasonable representation.
7. When a multiple page invoice is presented, the HS code must also be shown on the first page with a notation indicating the corresponding page and line of the commodity to which this HS code applies, if this commodity is not listed on the first page.
8. This HS code requirement will not cause any change to the Canada Customs Invoice form presently used by commercial importers.
9. Release of goods will be delayed, if the 10-digit HS code is not provided.
10. There is no change to existing release situations where a 10-digit HS code is currently required, i.e., machine release and other government department releases.
11. Subsequent to the release of goods, if it is determined that an incorrect 10-digit HS code was provided, warnings and penalty actions may be applied.
12. For more information - Questions and Answers (Q & A)