Memorandum D19-10-2

Ottawa, June 3, 2008

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In Brief

Export and Import Permits Act (Importations)

The following changes have been made to accurately reflect the Canada Border Services Agency’s (CBSA) role in administering the provisions of the Export and Import Permits Act:

• (a) In paragraph 2, references to the applicable legislation are now available on the Department of Justice Web site.
• (b) In paragraph 12, references to the general import permits are now available on the Department of Justice Web site.
• (c) In paragraph 16, reference to D10-18-5, Customs Bonded Warehouses TRQ Agricultural Goods, is now mentioned.
• (d) In paragraph 19, updated information is provided on clothing and textiles.
• (e) In paragraphs 31 and 32, new information is provided on disposal of goods.
• (f) In paragraphs 35 and 36, new contact information is provided.
• (g) Appendices A and B have been updated to include new document examples.
• (h) Appendix C has been updated to include changes to the Import Control List.
• (h) Appendix C has been updated to include changes to the Import Control List.

The Canada Border Services Agency (CBSA) assists Foreign Affairs and International Trade Canada with the administration of the Export and Import Permits Act. This memorandum outlines the requirements and permit procedures for the importation of goods listed in the Import Control List.

Table of Contents

• Legislation
• Guidelines and General Information
• Introduction
• Import Controls
• General Import Permits
• TRQ Goods
• Personal Importations of TRQ Goods
• Clothing and Textiles
• Carbon Steel and Specialty Steel
• Import Permit Procedures
• Amendments to Permits
• Detentions/Rejections
• Disposal of Goods
• Penalty Information
• Additional Information
• Appendix A – Application for Import/Export Permit
• Appendix B – Transaction Record
• Appendix C – Import Control List
• Appendix D – Quick Reference Guide for Personal Importations of Agricultural Tariff Rate Quota Goods
• Appendix E – Import Permit Procedures

Legislation

Export and Import Permits Act

Authorization for establishing the Import Control List is outlined below.

5. (1) The Governor in Council may establish a list of goods, to be called an Import Control List, including therein any article the import of which the Governor in Council deems it necessary to control for any of the following purposes:

• (a) to ensure, in accordance with the needs of Canada, the best possible supply and distribution of an article that is scarce in world markets or in Canada or is subject to governmental controls in the countries of origin or to allocation by intergovernmental arrangement;
• (b) to restrict, for the purpose of supporting any action taken under the Farm Products Marketing Agencies Act, the importation in any form of a like article to one produced or marketed in Canada the quantities of which are fixed or determined under that Act;
• (c) [Repealed, 1994, c. 47, s. 220]
• (c.1) to restrict the importation of arms, ammunition, implements or munitions of war, army, naval or air stores, or any articles deemed capable of being converted thereinto or made useful in the production thereof;
• (d) to implement an action taken under the Agricultural Marketing Programs Act or the Canadian Dairy Commission Act, with the object or effect of supporting the price of the article;
• (e) to implement an intergovernmental arrangement or commitment; or
• (f) to prevent the frustration or circumvention of the Agreement on Textiles and Clothing in Annex 1A of the World Trade Organization Agreement by the importation of goods that are like or directly competitive with goods to which the Agreement on Textiles and Clothing applies.

Authorization for amending or altering permits includes the following subsection:

10. (1) Subject to subsection (3), the Minister may amend, suspend, cancel or reinstate any permit, import allocation, export allocation, certificate or other authorization issued or granted under this Act.

Prohibitions under this Act include the following section:

14. No person shall import or attempt to import any goods included in an Import Control List except under the authority of and in accordance with an import permit issued under this Act.

Various responsibilities and authorities of border services officers are set out in the sections of the Act listed below.

24. All officers, as defined in the Customs Act, before permitting the export or transfer of any goods or technology or the import of any goods, shall satisfy themselves that the exporter, importer or transferor, as the case may be, has not contravened any of the provisions of this Act or the regulations and that all requirements of this Act and the regulations with reference to the goods or technology have been complied with.

25. All officers, as defined in the Customs Act, have, with respect to any goods or technology to which this Act applies, all the powers they have under the Customs Act with respect to the importation and exportation of goods, and all the provisions of that Act and the regulations under it respecting search, detention, seizure, forfeiture and condemnation apply, with such modifications as the circumstances require, to any goods or technology that is tendered for export, transfer or import or is exported, transferred or imported or otherwise dealt with contrary to this Act and the regulations and to all documents relating to the goods or technology.

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Guidelines and General Information

Introduction

1. The Export and Import Permits Act (EIPA) gives authority to the Governor in Council to establish various control lists, including an Import Control List (ICL). The Act allows the designated minister (the Minister of Foreign Affairs) to issue import permits and, under certain conditions, to alter, suspend, cancel and reinstate any permit issued under the Act. The Act also outlines offences, penalties, border services officers’ duties and the application of powers under the Customs Act. In addition, it gives to the Governor in Council the authority to establish regulations pertaining to the administration of the EIPA.

2. The EIPA, the ICL and the general import permits (GIPs) can be found on the Department of Justice’s Web site at http://laws.justice.gc.ca.

Import Controls

3. Individual import permits issued by Foreign Affairs and International Trade Canada are to be obtained for the importation of products listed on the ICL, except in cases where such products are permitted importation under the authority of the GIP. An outline of the ICL can be found in Appendix C. Import permits are also to be obtained when goods are entered into a customs bonded warehouse, except for certain non-NAFTA beef and veal. In the case of sufferance warehouses, import permits are to be obtained before the time of release.

4. It should be noted that goods identified on the ICL that are imported under temporary entry provisions (e.g. Form E29B, Temporary Admission Permit, or an ATA Carnet) are subject to the permit requirements of the EIPA.

5. Applications for an import permit can be made either to the Export and Import Controls Bureau of Foreign Affairs and International Trade Canada (see paragraph 37) or to selected customs brokers approved by that department. A sample Application for Import/Export Permit (Form EXT 1466) can be found in Appendix A.

6. EXCAPS (Foreign Affairs/Customs Automated Permit System) provides for the electronic transmission of permit information directly from Foreign Affairs and International Trade Canada to the Canada Border Services Agency (CBSA). This eliminates the requirement for importers to present paper permits to the CBSA (except at non-terminal offices) when obtaining release of goods controlled under the EIPA. In all cases, Foreign Affairs and International Trade Canada will issue a transaction record to the importer or broker to serve as a receipt showing that the permit has been issued. Importers using non-terminal offices or who have goods documented on a Form E29B or an ATA Carnet will be required to present a copy of the transaction record at the time of release (except agricultural tariff rate quota [TRQ] goods) to substantiate that a permit has been issued by Foreign Affairs and International Trade Canada. A sample of the transaction record is provided in Appendix B.

7. When an application for an import permit is completed (Form EXT 1466), the CBSA’s transaction number must be shown in field 2. In the event an importer does not have a transaction number, the CBSA will assign a transaction number to the shipment when release is requested.

8. An import permit becomes valid when the permit information has been transmitted electronically by Foreign Affairs and International Trade Canada to the CBSA office where goods are to be released.

9. In the event that EXCAPS is not available to transmit permit data to the Accelerated Commercial Release Operations Support System (ACROSS), importers and brokers may submit a paper copy of the transaction record to the CBSA to release their goods. If ACROSS is not available, importers and brokers may submit paper release documents with a copy of the transaction record to release their goods. Clients will be advised to use the above contingency procedures by their local CBSA office or via the electronic data interchange (EDI) information line at 1-888-957-7224 or through an EDI information bulletin.

General Import Permits

10. Certain goods may be imported under the authority of GIPs. In such cases, it is not necessary to apply for individual import permits. The GIP number must be quoted on the release documentation (e.g. cargo control document, invoice) or EDI transmission. The CBSA must be satisfied that the importation does in fact meet the terms of the GIP.

11. Historically, GIPs for personal use have applied equally to both residents and non-residents. It should be noted that these GIPs will continue to apply to all travellers regardless of residency.

12. As noted in paragraph 2, complete details regarding all the GIPs can be found on the Department of Justice’s Web site.

TRQ Goods

13. The World Trade Organization Agreement Implementation Act resulted in changes to the Customs Tariff and the Export and Import Permits Act that affect the importation of certain agricultural goods listed on the ICL. Importations of these agricultural goods are controlled under the EIPA by way of TRQs. This allows for the importation of TRQ goods at low duty rates under the “within access” tariff items until the quota quantities have been reached. Additional importations are classified under the “over access” tariff items at significantly higher duty rates. Importers may classify most agricultural goods listed on the ICL under the within access tariff item if they have obtained the appropriate TRQ import permit from Foreign Affairs and International Trade Canada before the goods are imported. Importations of wheat, barley and products of wheat and barley will be allowed the within access classification on a “first-come, first-served” quota basis. For more information, including a listing of the agricultural goods on the ICL, refer to memoranda D10-18-1, Tariff Rate Quotas, and D10-18-6, First-Come, First-Served Agricultural Tariff Rate Quotas.

14. The availability of TRQ import permits is not a condition of release. Border services officers will release any shipment of TRQ goods even in the absence of a specific import permit issued under section 8.3 of the EIPA. Where a specific import permit has not been obtained by the date of final accounting under subsection 32(1), (3) or (5) of the Customs Act, the portion of the goods imported without such a permit (all or part of a shipment) will be deemed to have been imported under the authority of GIP No. 100. These goods will be classified under the over access tariff item and will be subject to high rates of customs duties.

15. In situations where TRQ permit information has been matched to release information in ACROSS and is reviewed as part of the release review process, any discrepancies in the quantity or description should be referred by the border services officer to a senior officer in the CBSA’s Trade Compliance Division after releasing the shipment. The referral is generated in ACROSS by the officer and will be available to the senior officer through the ACROSS Trade Compliance Division work list.

16. If TRQ goods are entered into a bonded warehouse, the appropriate within access tariff item should be used where a specific import permit is available. This permit number should be quoted in field 26 of Form B3, Canada Customs Coding Form, (type 10) or, in the case of CADEX participants, in the special authority field of the KI30 record. If there is a transfer of ownership of TRQ goods in the warehouse, Form B3 (type 30) should be completed and presented to the CBSA. For all TRQ goods, including non-NAFTA beef and veal, the TRQ permit number should be quoted in field 26 of Form B3 (type 20) or in the special authority field of the KI30 record for CADEX participants. More information regarding TRQ goods entered into a bonded warehouse can be found in Memorandum D10-18-5, Customs Bonded Warehouses TRQ Agricultural Goods.

Personal Importations of TRQ Goods

17. The GIPs for personal importations of agricultural TRQ goods are listed in Appendix C. The eligible quantities or values that may be imported at within access rates of duty are listed in Appendix D. It should be noted that the eligible quantities or values for these GIPs apply to each person regardless of the fact a family may be travelling together in the same conveyance or live in the same household. GIP No. 100 allows the importation of unlimited quantities for TRQ goods at the high over access rate of duty and may be used for both personal and commercial importations. The personal exemptions for travellers provided under Chapter 98 of the Customs Tariff may not be used in conjunction with GIP No. 100. Importations of agricultural TRQ goods for personal use at low rates of duty are limited to the amounts provided under the relevant traveller’s GIP.

18. Travellers may import unlimited quantities of wheat and barley and their associated products (for personal use) under the authority of GIP No. 3 at the within access rates of duty. For commercial importations of wheat and barley and their associated products, GIP No. 20 may be used until the quota levels have been reached. GIP No. 100 must be used thereafter.

Clothing and Textiles

19. In the case of clothing and textile products, those goods are only subject to import permit requirements when the goods are eligible for the tariff preference level (TPL) mechanisms of Canada’s free trade agreements and the importer makes a claim for TPL in order to take advantage of a reduced rate of duty. Documentation requirements regarding TPLs may be found in Memorandum D11-4-22, Tariff Preference Levels.

Carbon Steel and Specialty Steel

20. Various types of carbon steel and specialty steel products are identified in item Nos. 80 and 81 of the ICL and are subject to import permit requirements.

• (a) Item No. 80 — Carbon steel products including semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheets and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes, but excluding the specialty steel products referred to in item No. 81.
• (b) Item Number 81 — Specialty steel products: stainless flat-rolled products (sheet, strip and plate),
• stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, alloy tool steel, mold steel and high-speed steel.

21. More information regarding which steel products are subject to controls may be obtained by contacting Foreign Affairs and International Trade Canada at the address provided in paragraph 37. If an importer wishes to import a shipment of steel that will require multiple loads to enter Canada, one permit may be obtained to cover the entire order providing the following applies:

• (a) a Canadian customs invoice (or an appraisal quality invoice if EDI release is used) and a Form B3 are prepared; and
• (b) all goods enter within a 30-day period.

22. There are two GIPs for steel products: GIP No. 80 for carbon steel and GIP No. 81 for specialty steel products. These GIPs exempt a resident of Canada from individual permit requirements provided that the total value for duty of the goods, as determined under the Customs Act, is no more than $5,000. In addition, shipments of steel that are classified under tariff item No. 9813.00.00 or 9814.00.00 (Canadian goods returned) do not require import permits.

Import Permit Procedures

23. In order to obtain release of goods controlled under the EIPA, other than certain goods controlled under a TRQ, importers must ensure that an import permit has been approved by Foreign Affairs and International Trade Canada. The transaction record from Foreign Affairs and International Trade Canada will indicate to the importer that the permit has been approved and the information transmitted to the CBSA through EXCAPS. If the importer is requesting release of goods at a non-terminal office, it will be necessary to present the CBSA with a copy of the transaction record. The CBSA will verify the permit information on the transaction record prior to releasing the goods. Transaction records will be stamped by border services officers and sent to Foreign Affairs and International Trade Canada on a weekly basis at the following address:

Export and Import Controls Bureau
Foreign Affairs and International Trade Canada
125 Sussex Drive
Ottawa ON K1A 0G2

24. The CBSA will verify the accuracy of the following permit information that has been transmitted electronically by Foreign Affairs and International Trade Canada :

• (a) transaction number;
• (b) expiry date;
• (c) importer name;
• (d) description of goods;
• (e) value;
• (f) quantity; and
• (g) country of origin.

25. Importer names appearing on import permits should correspond to importer names that appear on customs release documentation or EDI transmissions. Where the name on the permit does not match customs release information, the permit will be rejected and importers will be advised to apply for an amended permit or to resubmit the proper release information.

26. The import permit procedure and relevant responsibilities are provided in Appendix E.

27. Once an electronic permit has been used for the release of goods, this information will be transmitted to Foreign Affairs and International Trade Canada.

Amendments to Permits

28. Necessary amendments to permits may be authorized by the Export and Import Controls Bureau of Foreign Affairs and International Trade Canada. For example, differences between authorized permit and shipment quantities, product substitution, extensions of validity, expiry dates and cancellations. Amendments to permits for TRQ goods must be made prior to final accounting, and in the case of non-TRQ commodities, prior to release of the goods. For further information on amendments to permits, contact the Bureau (the address and telephone numbers are provided in paragraph 37).

Detentions/Rejections

29. Goods (except agricultural TRQ goods) will be detained by the CBSA and the release request rejected when the following applies:

• (a) there is no specific permit available;
• (b) the goods are not as described on the permit;
• (c) the importer name does not match the name on the permit;
• (d) the permit is not yet effective or has expired;
• (e) the quantity or value reported does not match the permit; or
• (f) the country of origin does not match the permit.

30. Under the above circumstances, the goods are not to be released until the appropriate corrections are made to either the release information or the permit. A decision will then be made on the disposition of the goods.

Disposal of Goods

31. When goods have been abandoned or forfeited as a result of the EIPA requirements, Foreign Affairs and International Trade Canada will determine how the goods will be disposed of. More information on disposal of such goods may be obtained by contacting the CBSA’s Partnerships Division at the address provided in paragraph 35.

32. Travellers who decide not to pay the high over access duty rate on the importation of perishable agricultural goods in excess of the personal allowable GIP quantities are encouraged to return the excess goods to the United States. In some regions it may be possible to abandon such goods at the CBSA office if disposal bins are available.

33. Any agricultural TRQ goods abandoned in the commercial stream are to be detained pending instructions for disposal from the Partnerships Division.

Penalty Information

34. Every person who violates any of the provisions or regulations of the EIPA is guilty of an offence and is liable

• (a) on summary conviction to a fine not exceeding $25,000, or to imprisonment for a term not exceeding 12 months, or to both a fine and imprisonment; or
• (b) on conviction upon indictment to a fine in an amount that is at the discretion of the court, or to imprisonment for a term not exceeding 10 years, or to both a fine and imprisonment.

Additional Information

35. Questions concerning the general administration of these guidelines by the CBSA may be directed to the following:

Partnerships Division
Admissibility Branch
Canada Border Services Agency
5^th Floor, 150 Isabella Street
Ottawa ON K1A 0L8

Telephone: 613-957-6868
Fax: 613-946-1520

36. The CBSA’s Border Information Service (BIS) line responds to public inquiries related to import requirements of other government departments, including Industry Canada.

Call toll-free within Canada: 1-800-461-9999

If you are calling from outside Canada, you can access BIS by calling 204-983-3500 or 506-636-5064 (long-distance charges will apply).

To speak directly to an agent, call during regular business hours from Monday to Friday (except holidays), 8:00 a.m. to 4:00 p.m. local time. More information can be found on the CBSA’s Web site at www.cbsa.gc.ca.

37. All questions concerning the issuance of import permits should be directed to the following:

Export and Import Controls Bureau
Foreign Affairs and International Trade Canada
125 Sussex Drive
Ottawa ON K1A 0G2

Telephone: 613-996-3711 (textiles, clothing, agriculture and steel)
Fax: 613-995-5137 (textiles, clothing, agriculture and steel)

Appendix A

Application for Import/Export Permit, page 1 of 2

Application for Import/Export Permit, page 2 of 2

Appendix B

Transaction Record, page 1 of 1

Appendix C

Import Control List

The Import Control List may be broken down into three basic groupings. The following chart depicts these groups with corresponding item numbers, general product descriptions and relevant general import permit numbers. This chart is to be used as a guide for reference purposes only. The Import Control List can be found on the Department of Justice’s Web site at http://laws.justice.gc.ca.

Group Number	Item Number	Description	General Import Permit No.
1. Miscellaneous goods	70	Arms of war	60
	71	Arms of war	60
	72	Arms of war	60
	73	Arms of war	60
	80	Carbon steel	80
	81	Specialty steel products	81
	90	Arms of South African origin
	91	Prohibited weapons
2. Apparel and fibre goods	85, 86	Tariff preference level goods	102, 106
3. Agricultural products	94, 96-104	Chicken and chicken products	2, 100
	105-113	Turkey and turkey products	7, 100
	114-116	Beef and veal, non-NAFTA countriesBeef and veal, non-NAFTA countries	13, 100
	117-134, 141-160	Dairy products	1, 100
	95, 135-139	Eggs	8, 100
	140	Margarine	14, 100
	161-191	Wheat, barley and their products	3, 20, 100
	192	Tariff rate quota goods classified under heading No. 98.04 or 98.26	1, 2, 3, 7, 8, 13, 14
	194	Meat from certain European Union countries

Note 1: In the case of agricultural products, amounts above the within access quantities or values may be imported under the authority of General Import Permit No. 100; however, the over access duty rates will apply.

Note 2: For detailed classification information, refer to Memorandum D10-18-1, Tariff Rate Quotas. For detailed information on agricultural limitations, refer to Memorandum D19-1-1, Food, Agricultural Inputs and Agricultural Products.

Appendix D

Quick Reference Guide for Personal Importations of Agricultural Tariff Rate Quota Goods

Description	General Import Permit No.	Within Access Quantity/Value
Barley, barley products	3	No quantity restrictions
Beef, fresh or frozen	13	10 kilograms (kg) (no tariff rate quota restriction for NAFTA)
Butter	1	$20 total dairy
Buttermilk	1	$20 total dairy
Cheese (cheddar, swiss, mozzarella)	1	$20 total dairy
Chicken (whole, parts), fresh or frozen	2	10 kg
Eggs for consumption	8	2 dozen
Dry whey	1	$20 total dairy
Heavy cream	1	$20 total dairy
Ice cream	1	$20 total dairy
Margarine	14	3 kg (12 kg with prescription)
Milk	1	$20 total dairy
Sour cream	1	$20 total dairy
Turkeys (whole), fresh or frozen	7	One turkey
Turkeys (parts), fresh or frozen	7	10 kg
Wheat, wheat products	3	No quantity restrictions
Yogurt	1	$20 total dairy

Note: Amounts above the within access quantities or values may be imported under the authority of General Import Permit No. 100; however, the over access duty rates will apply. For detailed classification information, refer to Memorandum D10-18-1, Tariff Rate Quotas. Detailed information regarding quantity limitations imposed by the Canadian Food Inspection Agency is provided in Memorandum D19-1-1, Food, Agricultural Inputs and Agricultural Products.

Appendix E

Import Permit Procedures

The following chart outlines the permit procedure and the responsibilities of the importer, Foreign Affairs and International Trade Canada, and the Canada Border Serives Agency.

Importer	Foreign Affairs and International Trade Canada	Canada Border Services Agency (CBSA)
1. Apply for permit.
2. Apply transaction number to Form EXT 1466, Application for Import/Export Permit.
	3. Input data into computer system.
	4. Issue transaction record to importer and transmit data to the CBSA.
5. Present release package to the CBSA or transmit release data.
		6. Verify: – the transaction number; – the effective and expiry dates of permit; – that the importer’s name on release request matches the one on permit; – the permit quantity, value shipped and description with invoice; and – that the country of origin on the release request matches the one on the permit.
		7. Release goods.
		8. Once the permit has been used, transmit this information to Foreign Affairs and International Trade Canada.
		9. If necessary, take enforcement action.

Note 1: The availability of tariff rate quota (TRQ) permits is not a condition of release. However, where a specific TRQ permit has not been obtained by the date of final accounting, the portion of the goods imported without such a permit will be deemed to have been imported under the authority of general import permit No. 100. These goods will be classified under the over access tariff item and be subject to high rates of customs duties.

Note 2: In situations where TRQ permit information has been matched to release information in ACROSS and is reviewed as part of the release review process, any discrepancies in the quantity or description should be referred by the border services officer to a senior officer in the Trade Compliance Division after releasing the shipment. The referral is generated in ACROSS by the border services officer and will be available to the senior officer through the ACROSS (Trade Compliance Division) worklist.

References

Issuing office	Partnerships Division Admissibility Branch Partnerships Division
Headquarters file	7935-1
Legislative references	Export and Import Permits Act, sections 5, 10, 14, 24 and 25 Import Control List (Not found) Regulations respecting import permits (I have found Import Permits Regulations (SOR/79-5) (Not found) General import permits
Other references	D10-18-1, D10-18-6 and D19-1-1
Superseded memoranda D	D19-10-2, June 1, 1998