Coding of Adjustment Request Forms

Memorandum D17-2-1

Ottawa, January 1, 1991

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Interim Memorandum

The information contained in this Interim Memorandum are new procedures and will be added to the next version of Memorandum D17-2-1, Coding of Adjustment Request Forms.

These interim procedures are being implemented for the purpose of establishing policy for the presentation and processing of a B2, Canada Customs - Adjustment Request, that involve the splitting of accounting lines on an original B3, Canada Customs - Coding Form, or subsequent adjustments.

Summary

This memorandum contains instructions for the completion of form B 2 (1990 version), Canada Customs Adjustment Request, for shipments released by Customs on or after January 1, 1991.

Table of Contents


Guidelines and General Information

Adjustment Request – Form B 2

1. This Memorandum is to be used as a guide by Customs personnel, agents, importers/owners and appellants of the United States who are involved in preparing and processing form B 2, Canada Customs – Adjustment Request.

2. Adjustment requests must be properly coded before they can be accepted for either manual or automated data processing. Information used to prepare these requests is obtained from B 3 accounting documents, invoices, and other sources, and is coded and placed in a designated area on the form B 2, referred to as a field.

3. Form B 2 is a document prepared to request an adjustment to an accounting document. Up to three different legislative issues may be addressed on a form B 2 provided that none of the legislative issues involves the Special Import Measures Act (SIMA).

Special Import Measures Act

4. Issues involving SIMA are not to be combined with other legislative issues on the same form B 2. Adjustment requests related to SIMA are to be sent directly to:

Director General
Anti-dumping and Countervailing Division
Department of National Revenue
Customs and Excise
Ottawa, Ontario
K1A 0L5

Attention: Central Index

Additional information regarding these requests is contained in Memorandum D14-1-3, Re-determination of Goods under the Special Import Measures Act.

5. The form B 2 may be used by a U.S. manufacturer, producer, exporter or the U.S. Government to request an adjustment pursuant to the Special Import Measures Act. In such cases, the U.S. appellant must complete, as a minimum, the following fields on the form B 2:

  • a. Importer Number/Name and Address (Field No. 1);
  • b. Original Transaction Number (Field No. 6);
  • c. Mail To (Field No. 10) – Since the form B 2 was originally designed for importers, and this field is intended to identify an importer's agent, “Mail to” should be struck out and replaced with “U.S. Appellant Name and Address”;
  • d. Justification for Request;
  • e. Explanation; and
  • f. Declaration – The reference to “importer/agent” should be struck out and replaced with “U.S. Appellant”.

Diversions

6. The Department prefers that it be the importer who diverts goods under the provisions of section 88 of the Customs Act, who accounts for and pays any applicable duties on form B 2. However, the Department will accept a form B 2 from a purchaser of the imported goods who diverts the goods from their original use. In such cases, the normal completion instructions for a form B 2 are to be followed except that:

  • a. the purchaser's name and address is to be shown in Field No. 10; and
  • b. the “As Accounted for” line(s) may be left blank except for Field No. 18 which must show the number of the B 3 classification line on which the goods were originally accounted for.

Refunds of GST

7. Customs will not refund the GST where a GST registrant or non-registrant has overpaid the GST when accounting for imported goods on a Canada Customs Coding Form B 3. To obtain a refund of the GST overpaid, non-registrants may:

  • a. submit to Customs, a form B 2, where a rebate of the GST by Excise cannot occur until Customs renders a related adjustment decision (i.e., a form B 2 requesting a refund of GST of $7 should be submitted to Customs where this refund is dependent upon Customs rendering a decision under section 60 of the Customs Act to re-appraise the value of imported goods from $200 to $100); or
  • b. submit to Excise, without Customs rendering a related adjustment decision, a General Application for Rebate of Goods and Services Form, form GST 189, where an overpayment of GST occurred as a result of GST being paid on non-taxable goods.

Information and Documentation Requirements

8. To request an adjustment to an accounting document, an importer, agent or U.S. appellant must submit a completed B 2 Adjustment Request to Customs. The form B 2 is required in two copies:

  • a. the Customs copy, and
  • b. the Importer/Agent Receipt copy.

A third copy, the Customs security copy, is required where security is posted in lieu of payment of an amount in dispute. (A photocopy is acceptable.)

9. The B 2 Adjustment Request must be presented to Customs assembled in the following sequence:

  • a. the Customs copy,
  • b. the Importer/Agent copy and, where applicable, and
  • c. the Customs Security copy.

10. The required supporting documents must be attached to the Customs copy of the Adjustment Request.

11. It is in the best interest of those preparing forms B 2 and Customs personnel to ensure that documents presented to Customs are accurate. This allows Customs to expedite the processing of the adjustment request.

12. All information on adjustment request forms must be legible and all fields must be completed in accordance with the instructions contained in this Memorandum.

13. Appendix A, Form B 2 Coding Instructions and B 2 Format Examples and Explanations, as well as Appendix D, List of Codes, will assist in the completion of the B 2 Adjustment Request.

Blanket Form B 2

14. Form B 2 blanket requests may be used by an importer, agent or U.S. appellant to request adjustments to more than one accounting document provided that prior written authorization is obtained from the appropriate authority, as follows:

  • a. Anti-dumping and Countervailing Division Manager at Headquarters (the mailing address is provided in paragraph 4 of this Memorandum) for requests involving anti-dumping or countervailing duty under the Special Import Measures Act; or
  • b. regional Tariff Programs and Appraisal (TPA), Drawbacks, Refunds and Remissions (DRR) or Customs Assessment Manager (CAD) for all other requests.

15. When requesting authorization to use a blanket form B 2, the importer/agent must demonstrate that the blanket request will satisfy the following conditions:

  • a. administrative benefits (e.g., reduction in paper burden and processing time) accrue to both the Department and the importer/agent;
  • b. all the accounting documents being adjusted were presented in the same Customs region;
  • c. all requests cover exactly the same issue (e.g., re-determination of tariff classification, re-determination of origin, re-appraisal of value for duty, normal value, export price or amount of subsidy or export subsidy);
  • d. all accounting documents must cover shipments of goods from the same exporter to the same importer;
  • e. all accounting transactions which were released prior to January 4, 1993, must appear on a separate blanket B 2 from those transactions which were released after January 4, 1993.
  • f. a blanket form B 2 may not relate to accounting documents with respect to which the time limit for appeal, refund or diversion has expired;
  • g. all blanket forms B 2 must be supported by two copies of a detailed worksheet and a copy of the written authorization which permits the importer to use a blanket B 2 for the adjustment request submitted. The information to be shown on the worksheet will depend upon the issue being addressed. (See form B 2, examples 16-18, 21, 23 and 24 of Appendix A to this Memorandum.) The format of the worksheet and the number of accounting documents to be presented on a worksheet must be approved by the appropriate TPA/CAD Manager. The TPA/CAD Manager may restrict the number of accounting documents to be presented on an individual blanket request where the TPA/CAD Manager believes that, for the claim in question, inclusion of large numbers of accounting documents will delay the processing of the blanket request and the subsequent payment of a refund where applicable. In such cases, a large number of blanket requests can be subdivided into a smaller number of blanket requests. In specific instances, a TPA/CAD Manager may request that certain types of adjustment requests be addressed on separate forms B 2 to aid processing;
  • h. detailed worksheets must be completed by listing original transaction numbers in chronological order by date of final accounting and be grouped by month with subtotals for each month (to facilitate interest calculations). Only goods accounted for within the same calendar quarter can be documented on the same detailed worksheet. Therefore, more than one detailed worksheet may be required to be submitted with a blanket form B 2 request. Refer to Appendix A of this Memorandum, Field No. 7 – Date, for additional information; and
  • i. in the case of requests for re-determination of origin where the United States Tariff Treatment is being claimed and the goods were imported prior to January 1, 1994:
    • 1. a valid copy of each exporter's certificate of origin (ECO) pertaining to the goods under review must accompany the request when the certificate covers a single shipment. However, when the same ECO covers multiple shipments of goods, it will only be necessary to submit the cover page and the relevant continuation sheet(s) of the ECO with the blanket B 2 request; and
    • 2. the importer/agent should claim on the same blanket request only those lines where the complete form B 3 classification line qualifies for the United States Tariff Treatment. Separate blanket requests should be submitted in instances where the request covers only a portion of the form B 3 classification line.
  • j. in the case of requests for re-determination of origin where either the United States Tariff Treatment, Mexico Tariff Treatment, or Mexico-United States Tariff Treatment is being claimed and the goods were imported after January 1, 1994:
    • 1. a valid copy of each NAFTA Certificate of Origin pertaining to the goods under review must accompany the request when the certificate covers a single shipment. However, when the same NAFTA Certificate of Origin covers multiple shipments of goods, it will only be necessary to submit the cover page and the relevant continuation sheet(s) of the NAFTA Certificate of Origin with the blanket B 2 request; and
    • 2. the importer/agent should claim on the same blanket request only those lines where the complete form B 3 classification line qualifies for either the United States Tariff Treatment, Mexico Tariff Treatment, or Mexico-United States Tariff Treatment. Separate blanket requests should be submitted in instances where the request covers only a portion of the form B 3 classification line.

Printing of Forms B 2

16. Customs prints forms B 2 on white paper in brown ink. Companies may privately print forms B 2 provided they comply with the conditions outlined in Memorandum D17-1-11, Private Printing Policy and Procedures.

References

Issuing office:
Entry, Postal and Appraisal Division
Headquarters file:
7595-1
Superseded memorandum D:
N/A
Date modified: