Freight Forwarder Pre-arrival and Reporting Requirements
Memorandum D3-3-1

Ottawa, September 20, 2016

ISSN 2369-2391

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In Brief

This memorandum has been revised to include pre-arrival, arrival and post arrival processes for house bills, house bill close messages and supplementary cargo data.

This memorandum outlines and explains the Canada Border Services Agency's (CBSA) requirements and administrative policies regarding the transmission of pre-load and/or pre-arrival house bill data, the house bill close data and supplementary data to the CBSA for goods being imported to, or transiting through Canada.

Note: supplementary data will be required for consolidated freight remaining on board (FROB) shipments in the air and marine modes only. For the purposes of this memorandum all references to pre-arrival will include pre-load requirements with respect to marine shipments where applicable.

This memorandum also outlines and explains the CBSA's requirements and administrative polices regarding the movement and control of unreleased cargo in Canada.

For information about the reporting and transportation of goods being exported from Canada refer to Memorandum D3-1-8, Cargo – Export Movements.

For information on the release of commercial goods, please refer to Memorandum D17-1-4, Release of Commercial Goods.


Guidelines and General Information

Definitions

The following definitions apply to this memorandum:

Administrative Monetary Penalty System (AMPS)
AMPS is the system used to issue monetary penalties to commercial clients for violating CBSA's trade and border legislation.
Advance Commercial Information Program (ACI)
ACI is about providing CBSA officers with electronic pre-arrival cargo information so that they are equipped with the right information at the right time to identify health, safety and security threats related to commercial goods before the goods arrive in Canada.
Cargo
A term used to describe a collection of goods or shipment. It consists of a grouping of related goods. The cargo is detailed on the waybill, the manifest or a Cargo Control Document.
Cargo Control Number (CCN)
The CCN is a number assigned to a transport document. It uniquely identifies cargo detailed on a cargo submission. The Cargo Control Number consists of the carrier code followed by a unique reference number assigned by the carrier/representative and cannot contain spaces. First 4 characters = CBSA-assigned carrier code.
Cargo transmission
Is an electronic message that contains all required data elements regarding a specific shipment that is to cross into Canada. This transmission includes bill of lading information.
Carrier
The CBSA defines a carrier as the entity operating a conveyance transporting specified goods to Canada. To operate a conveyance means to have legal custody and control of the conveyance as:
  • (a) an owner,
  • (b) a lessee under a lease or agreement of hire,
  • (c) a charterer under an agreement of hire,
  • (d) as a purchaser under a conditional sale or hire purchase agreement that reserves to the vendor the title to the conveyance until the purchase price is paid or certain conditions are performed, or
  • (e) a mortgagor.
Client
Anyone who sends to the CBSA a collection of information; or receives notices from the CBSA.
Commercial goods
Goods that are or will be imported for sale or for any commercial, industrial, occupational, institutional or other similar use as per the Reporting of Imported Goods Regulations.
Consignee
The definition of consignee is to be understood as follows given the applicable context:
  • (a) The consignee definition to be used by carriers when transmitting electronic ACI/eManifest data: The name and address of the party to which the cargo/goods are being shipped to as shown on carrier's contract of carriage (For example: bill of lading, air waybill or other shipping document).
  • (b) Consolidated shipment: The consignee definition used with respect to freight forwarders who are providing the CBSA with detailed information pertaining to a consolidated shipment will be: The name and address of the party to which the cargo/goods are being "shipped to" as shown on carrier's contract of carriage (For example: bill of lading, air waybill, or other shipping document).
  • (c) Deconsolidated shipment: The consignee definition used with respect to freight forwarders who are providing the CBSA with detailed information pertaining to a deconsolidated shipment will be: The name and address of the party to which the goods are being "shipped to" as shown on the commercial sales contract (For example: commercial invoice, bill of sale, or other sales contract).

  • Note: The freight forwarder is limited to the information they have on hand at the time of the transmission. The consignee may change more than one time throughout a voyage to Canada. The freight forwarder will provide updates to the transmission as they receive updated information.

  • Example: For business or legal reasons goods are consigned to a bank (foreign or Canadian domestic) or "to order" of a bank. In this case, the consignee field of the house bill transmitted by the freight forwarder will reflect the party to whom the goods are legally consigned at the time of transmission (the bank). If the goods are sold while enroute, and/or if the bank chooses to endorse the goods to a third party (as per the "to order") or if the consignee information otherwise changes; the FF will transmit an electronic change to the house bill data as soon as they become aware of the change, updating the consignee field.
Consolidation
A number of separate shipments grouped together by a consolidator or freight forwarder and shipped to an agent or a freight forwarder as one shipment under one bill of lading and reported to the CBSA on one cargo control document.
Conveyance
Taken from Customs Act s.2(1), any vehicle, aircraft or water-borne craft or any other contrivance that is used to move persons or goods.
Courier Low Value Shipment (CLVS)
CLVS goods being imported under the CLVS program by an approved courier. CLVS goods are exempt from eManifest requirements.
Electronic Commerce Client Requirements Document (ECCRD)
Provides comprehensive information about business and system requirements of various electronic transactions for multiple import and export programs.
Electronic Data Interchange (EDI)
The CBSA's EDI systems allow clients to electronically transmit their import or export data, as well as their accounting documents, to the CBSA. These systems facilitate the CBSA's ability to quickly process low-risk goods, focusing resources on identifying potential threats to Canada's safety and security. EDI is a set of standards for structuring information to be electronically exchanged between and within businesses, organizations, government entities and other groups. These standards prescribe the formats, character sets, and data elements used in the exchange of business documents and forms. The term EDI is also used to refer to the implementation and operation of systems and processes for creating, transmitting, and receiving EDI documents.
eManifest Portal
The eManifest Portal (Portal) is a secure data transmission option developed by the Canada Border Services Agency (CBSA) that allows the trade community to electronically transmit their pre-arrival data through the Internet. The eManifest Portal was developed primarily for small- to medium-sized businesses to facilitate their compliance and ease the transition from paper reporting to pre-arrival electronic data transmission.
Flying trucks
An air cargo that arrives in Canada on a highway conveyance.
FPOA
First Point of Arrival
Freight forwarder
A person who, on behalf of one or more owners, importers, shippers or consignees of goods, causes specified goods to be transported by one or more carriers.
Freight Remaining on Board (FROB)
  • (a) Marine - cargo on a vessel that is not being discharged at a Canadian seaport but remains on board the vessel for furtherance to its ultimate destination outside of Canada.
  • (b) Air - cargo that is not being discharged at a Canadian airport but remains on board the aircraft for furtherance to its ultimate destination outside of Canada.
House bill
A cargo control document submitted by a freight forwarder for shipments that have, or will be, deconsolidated from another cargo control document.
House bill number
Is a number assigned to a transport document used for a portion of a deconsolidated shipment. It uniquely identifies cargo detailed on a house bill submission. The house bill number consists of the CBSA assigned identifier code followed by a unique reference number assigned by the freight forwarder.
  • (a) 1st 4 characters = CBSA-assigned carrier code
  • (b)  Remaining characters = Carrier/representative assigned reference number.
This number cannot be re-used for 3 years beginning January 1 of the year following the year in which it was used.
House bill close message
Is provided by the freight forwarder to identify all house bills related to a consolidated primary cargo document or a consolidated house bill document for closure purposes.
In-transit
The movement of goods from a point in the United States to another point in the United States through Canada, as well as the movement of goods from a point in Canada to another point in Canada through the United States.
Low Value Shipment (LVS)
Commercial goods with a value for duty not exceeding CAD $2,500. LVS goods are not exempt from eManifest requirements. See "Courier LVS" definition is this section.
Other Government Department (OGD)
Federal Departments or Agencies such as: Canadian Food Inspection Agency (CFIA) or Department of Foreign Affairs, Trade and Development (DFATD) etc.
Overage
Any excess in the number of pieces transmitted in the same shipment and found by the carrier or freight forwarder post arrival.
Pre-Arrival Review System (PARS)
Is a line release option allowing importers and brokers to present release documents prior to the arrival of a shipment in order to obtain release upon arrival.
Port of report
  • (a) For highway: The port where highway cargo physically crosses into Canada at the FPOA. This is the 4-digit CBSA port code used to identify where the conveyance, specified goods, and/or persons are expected to arrive in Canada.
  • (b) For rail: The port or nearest port where rail cargo physically crosses into Canada at the FPOA. The carrier may use any automated port of report. This is the 4-digit CBSA port code used to identify where the conveyance, specified goods, and/or persons are expected to arrive in Canada.
  • (c) For air and marine: The designated CBSA port code used to identify where the conveyance, specified goods, and/or persons are expected to arrive in Canada. This is the 4-digit port code assigned by CBSA that identifies the expected first port of arrival in Canada.

  • Note: The port of arrival of all cargo on board a conveyance should match the port of report.
Port of destination
The port where cargo is expected to obtain release. Will be the same as the port of report unless travelling in-bond.
Pre-arrival
Prior to a conveyance or cargo arriving in Canada.
Pre-arrival Information
Data pertaining to the importation of goods that is sent to the CBSA in advance of the actual arrival.
Pre-load
Prior to a conveyance being loaded with cargo destined for Canada. Data pertaining to the importation of goods that is sent to the CBSA in advance of the goods being laden on the conveyance. Applies to the marine mode only and means prior to loading the cargo at a foreign port.
Previous CCN
Cargo Control Number of the Cargo Control Document that immediately preceded the document in question in the chain of cargo control.
Primary CCN
The Cargo Control Number of the Cargo Control Document that was used to report [section 12(1) of Customs Act] the goods at the FPOA.
Release Notification System (RNS)
A system message sent to the client regarding the status of cargo.
Record
Any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device.
Secondary Notify Party
The trade entity, other than the originator of a data submission, which is to receive notification from the CBSA (either Status Notice or Manifest Forward), pertaining to a particular shipment.
Shipper
The name and address of the party shipping the goods as stipulated on the contract of carriage (e.g. bill of lading, air waybill, etc.).
Shipment
A collection of commercial goods on a conveyance consigned to a single importer
  • (a) a shipment for which a carrier is responsible is one that consists of
    • (i) a specified good or collection of specified goods that is listed in a single bill of lading, waybill or other similar document that is issued by the carrier and that relates to the carriage of those goods, or
    • (ii) a specified good that is an empty cargo container that is not for sale that is transported by the carrier but that is not listed in a bill of lading, waybill or other similar document; and
  • (b) a shipment for which a freight forwarder is responsible is one that consists of a specified good or collection of specified goods that is listed in a single bill of lading, waybill or other similar document that is issued by the freight forwarder and that relates to the carriage of those goods.
Shortage
Where pre-arrival data was transmitted and a quantity of goods was initially reported upon arrival at FPOA, and subsequently the number of pieces found, by the freight forwarder or carrier, is less than the number of pieces reported to the CBSA pre-arrival and upon arrival.
Specified goods
(under the Customs Act) –Sas per the Reporting of Imported Goods Regulations, commercial goods, goods that are or will be imported to Canada for a fee and empty cargo containers that are not for sale but does not include:
  • (a) goods that will be released after they have been accounted for and all duties with respect to them have been paid under subsection 32(1) of the Act if
    • (i) the goods are or will be in the actual possession of a person arriving in Canada, or
    • (ii) the goods form or will form part of a person's baggage and the person and the baggage arrive or will arrive in Canada on board the same conveyance;
  • (b) mail;
  • (c) commercial goods that are used in a repair that is made outside Canada to a conveyance that was built in Canada or in respect of which duties have been paid, if the repair is made as a result of an unforeseen contingency that occurs outside Canada and is necessary to ensure the conveyance's safe return to Canada;
  • (d) a military conveyance within the meaning of subsection 18(1) of the Canadian Transportation Accident Investigation and Safety Board Act or goods that are transported on board that conveyance;
  • (e) an emergency conveyance or goods that are transported on board that conveyance; or
  • (f) a conveyance that returns to Canada immediately after being denied entry to the United States or goods that are transported on board that conveyance.
Supplementary cargo report
A document submitted by a freight forwarder for shipments that have, or will be deconsolidated from an air or marine cargo control document for freight remaining on board (FROB) shipments only.
Supplementary Reference Number (SRN)
Reference number assigned by the freight forwarder or carrier or the carrier's agent to identify the Supplementary Cargo Report.
Transiting
The movement of foreign goods through Canadian territory from a point outside Canada to another foreign point.

General Information

1. The Customs Act, and the Reporting of Imported Goods Regulations, establish the time, manner and who is required to send pre-arrival or pre-load data pertaining to house bills, house bill close transmissions and supplementary data related to cargo entering Canada.

2. The receipt of house bill and supplementary data enables the CBSA to:

3. The Customs Act, and the Transportation of Goods Regulations, establish the requirements for the control of in-bond cargo deconsolidated in Canada. Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods, should be referred to for the general CBSA requirements and administrative policies that apply to all modes of transport.

Liability

4. A freight forwarder action, as defined in the Reporting of Imported Goods Regulations and in the definitions section of this memorandum identifies who is liable for the transmission of house bill, house bill close and supplementary data. The carrier code used to transmit this data is the carrier code that the CBSA deems liable for true, accurate and complete information.

5. As per Section 12.1(1) of the Customs Act, any other prescribed person shall give the Agency prescribed information about the goods on board or expected to be on board the conveyance.

6. House bills are required for all consolidated import, in bond and in-transit shipments. Supplementary cargo reports are required for consolidated FROB shipments.

7. As per Section 7.1 of the Customs Act, the freight forwarder transmitting the house bill, house bill close message or supplementary data is liable for ensuring that all data is true, accurate, and complete.

8.As per Section 12.1 of the Customs Act, the freight forwarder transmitting the house bill, house bill close message or supplementary data is liable for ensuring that all data is received within the timeframes specified in the Reporting of Imported Goods Regulations.

9. The freight forwarder must transmit a house bill close message that identifies the previous cargo control number and all related house bills. In addition, if any of the house bills are to be further de-consolidated, the responsible freight forwarder must transmit a house bill close message that identifies the previous cargo control number of that consolidation and all related house bills. Each freight forwarder is responsible to provide a house bill close message once all the house bills, for which they are responsible for, have been received and accepted by the CBSA. This process will be applicable until there are no further de-consolidations of related house bills. House bill close messages are not required for supplementary cargo reports.

10. Freight forwarders may authorize a service provider or agent to transmit the pre-arrival house bill, house bill close message, and supplementary data on their behalf. The carrier code on the electronic transmission must be that of the actual freight forwarder, not the agent or service provider. In order for the CBSA to communicate with the agent or service provider transmitting on behalf of the freight forwarder, the Electronic Data Interchange (EDI) Application for Advance Commercial Information (ACI) form must be completed by the freight forwarder, identifying those agents and/or service providers to whom the freight forwarder is granting authorization in the appropriate area of the document. If additional agents or service providers are to be authorized or removed for whom the form has previously been completed, Form Electronic Data Interchange (EDI) Application for Advance Commercial Information (ACI) must be completed.

11. Clients using the eManifest Portal to transmit house bill data are not required to complete the form notated above to authorize an agent and/or service provider. When using the portal, authorization of another party is assigned by the Portal Account owner.

12. Carriers, who are performing all or some of the functions of a freight forwarder as defined in the Reporting of Imported Goods Regulations, may transmit supplementary data, house bill data, and house bill close message data using their CBSA approved carrier code. It is the owner of the carrier code used in the transmission of data that is held liable for the completeness, accuracy and timeliness of the data transmitted.

13. For further information on house bill, house bill close message and supplementary cargo report transmissions, refer to Chapter 5: Advance Commercial Information (ACI)/eManifest House Bill Electronic Commerce Client Requirements Document, available by contacting the Technical Commercial Client Unit.

Record Keeping

14. In addition to records required to be maintained for other CBSA programs, every person who transports or causes goods to be transported into Canada or transports or causes to be transported within Canada goods that have been imported but have not been released is required, under the Transportation of Goods Regulations, to keep records of the electronic data that has been transmitted to the CBSA and any acknowledgment of receipt of that data received from the CBSA. The records that must be kept include all source documents, in paper and/or electronic format, specifically related to the individual data elements transmitted.

15. For CBSA purposes, records by means of which the person gives the Agency information under subsection 12.1(1) of the Act (house bill, house bill close message and supplementary cargo reports) must be kept for a period of three complete calendar years plus the current year during which the house bill, supplementary and house bill close message data were transmitted.

Monitoring

16. In addition to all other monitoring and verification activities, the CBSA will perform periodic monitoring of the records kept by freight forwarders related to electronic house bill, house bill close message and supplementary cargo reports, as well as paper reporting for house bills with ACI exemptions. The monitoring will confirm that the house bill(s), house bill close messages, and supplementary cargo reports were transmitted in a timely manner and that information transmitted pre-arrival is true, accurate and complete and corresponds to the information contained on the source documents on file.

Freight Forwarder Identification Requirement

17. Any person who is required to transmit pre-arrival house bill, house bill close message or supplementary cargo reports to the CBSA must hold a valid CBSA issued carrier code.

18. The CBSA issued carrier code forms the prefix of the cargo control number on electronic ACI house bills and supplementary cargo reports.

19. For the purpose of identifying carriers and freight forwarders, a bonded or non-bonded CBSA issued carrier code will be assigned to a company upon authorization. This carrier code number must be shown on all cargo control documents, house bills, house bill close message and supplementary cargo reports presented or transmitted to the CBSA.

20. Freight forwarders with primary carrier operations must refer to the applicable modal memoranda: Memorandum D3-2-1, Air Pre-arrival and Reporting Requirements, Memorandum D3-4-2, Highway Pre-arrival and Reporting Requirements, Memorandum D3-5-1, Marine Pre-load/Pre-arrival and Reporting Requirements and MemorandumD3-6-6, Rail Pre-arrival and Reporting Requirements for further information on carrier requirements.

21. As freight forwarders do not transport goods into Canada, the carrier's primary cargo control document may show the freight forwarder as the consignee when transporting a consolidated cargo shipment or when the primary cargo document does not contain all the shipment details.

22. For information pertaining to carrier code requirements and how to obtain a CBSA issued carrier code, please refer to Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods.

Security Requirements

23. The international transportation of goods to, or from Canada is not permitted under any freight forwarder carrier code.

24. Freight forwarders must be bonded in order to move or transport goods within Canada that have been reported but not released.

25. To become a bonded carrier or freight forwarder, security must be filed in accordance with Memorandum
D3-1-1, Policy Respecting the Importation and Transportation of Goods
.

Transmission Timeframes

26. Freight forwarders (or an authorized third-party service provider acting on the freight forwarder's behalf) are required to prepare and transmit the required house bill, house bill close message and supplementary cargo data within the timeframes specified in the Reporting of Imported Goods Regulations.

27. The house bill, house bill close message and supplementary data must be electronically transmitted to the CBSA within the timeframes as described in the chart below (by mode), unless exempt from this requirement by the CBSA. Refer to Chapter 5: ACI/eManifest House Bill ECCRD for further information on exemptions from ACI/eManifest data.

Time frames Marine Air Rail Highway
For providing electronic house bill, and house bill close message data for import, in bond and in-transit shipments 24-hours before loading or arrival depending on type and loading origin of the goods* 4 hours prior to arrival or before time of departure if the flight is less than 4 hours* 2 hours prior to arrival 1 hour prior to arrival
For providing electronic supplementary cargo data for freight remaining on board shipments (FROB) 24-hours before loading or arrival depending on type and loading origin of the goods* 4 hours prior to arrival or before time of departure if the flight is less than 4 hours* n/a n/a
*Please see Chapters 1 (Marine) and 2 (Air) of the ACI ECCRD for more details on pre-arrival time frames for the marine and air modes.

28. House bill and house bill close data should be transmitted as early as possible (up to 90 days in advance). Supplementary data may only be transmitted up to 30 days in advance.

29. The transmission of the house bill and house bill close message must be accepted and validated by the CBSA prior to arrival.

Cargo Control Number Reuse Timeframes

30. The cargo control number on the house bill or the secondary reference number on the supplementary cargo report must be unique and cannot be reused for 3 years starting January 1 of the year following its initial use.

Electronic Communication With the CBSA

31. Freight forwarders must transmit data using the CBSA's electronic data interchange (EDI) systems and/or through the CBSA eManifest Portal (house bill and house bill close message data only). Before initiating the application process (outlined below), freight forwarders must have a valid CBSA issued carrier code as per Section 12.1 of the Customs Act. See Freight Forwarder Identification Requirements section of this memorandum.

Application to Transmit Electronic Data to the CBSA

32. Freight forwarders using EDI are required to complete an application form and submit it to the Technical Commercial Client Unit (TCCU).

33. EDI clients may choose to transmit their own data to the CBSA or they may choose to use a service provider. For more information on how to apply to participate consult the EDI Communications Methods Web page.

34. For all enquiries related to any problems with electronic transmission of data and the related application process, please contact the Technical Commercial Client Unit (TCCU):

Email: tccu-ustcc@cbsa-asfc.gc.ca
Telephone: 1-888-957-7224
Option 1 for EDI transactions /
Option 2 for Technical Portal Assistance (Canada or US)
1-613-946-0762 for overseas callers

35. For more information on how to apply to participate, methods of electronic communication and general information on EDI visit the Electronic Commerce Web page.

eManifest Portal

36. The eManifest Portal is an option developed by the CBSA to allow the trade community (highway carriers and freight forwarders) to electronically transmit their pre-arrival information through the Internet. The eManifest Portal was developed primarily for small to medium-sized businesses to facilitate their compliance and ease the transition from paper reporting to pre-arrival electronic data transmission. The eManifest Portal can be used to transmit house bill data and house bill close messages, but not to transmit supplementary cargo reports in the air and marine modes. Supplementary data must be transmitted through EDI communications. Clients who use EDI to transmit data to the CBSA may also have an eManifest Portal account.

37. The eManifest Portal features many self-serve functions allowing freight forwarders to:

38. For further information on computer and Internet requirements, the application process and general information visit the eManifest Portal.

Transmitting Accurate Data

39. When using Pre-Arrival Review System (PARS), the electronically transmitted cargo number on the house bill transmission must exactly match the cargo control number quoted in the PARS release request, inclusive of the acronym "PARS" where applicable.

Example: if the Cargo Control Number (CCN) used on the release request is "1234PARS56789", then the cargo number on the house bill transmission must also be "1234PARS56789". It is not a requirement to embed the letters "PARS" into a CCN, but if a freight forwarder does embed letters into the CCN, it must exactly match the release request.

40. Clients are also reminded to pay particular attention when using the letters "I" and "O" and the numbers "1" and "0" in their Cargo Control Numbers. Clients must ensure that they use the same letters/numbers when quoting the CCN in both the pre-arrival transmission and in arranging for the broker's release documents.

41. If the CCN quoted in the PARS release does not exactly match the electronically transmitted house bill data, clients may not receive certain CBSA notices. Inaccurate CCN transmissions by freight forwarders could result in sanctions for non-compliance including the issuing of monetary penalties under the Administrative Monetary Penalty System (AMPS). Release may also be negatively affected.

42. Release requests will not be accepted for consolidated house bills or consolidated primary cargos. For additional information regarding Single shipments please see paragraph 113.

Pre-arrival Electronic Data Transmission Guidelines

House Bills

43. Freight forwarders are liable for the transmission of house bill data for all consolidated import, in-bond and in-transit shipments.

44. The freight forwarder or authorized service provider for that freight forwarder must prepare and transmit an electronic transmission to the CBSA with the required data and within the prescribed timeframes for each individual shipment within the consolidated load, for which they are responsible for. In addition, a house bill close message must be transmitted to advise that no further house bills will be transmitted for the consolidated shipment.

45. The house bill and house bill close message transmissions will contain a number of mandatory, conditional, and optional data elements. Mandatory data element fields must be completed in all house bill and house bill close message transmissions. Conditional data element fields must be transmitted if specific conditions are met. Optional data elements are generally not required but may be transmitted if available to the client.

46. Non-bonded freight forwarders may not transmit consolidated house bills.

47. For a complete list and description of all house bill and house bill close message data elements and their application refer to Chapter 5: Advance Commercial Information (ACI)/eManifest House Bill ECCRD.

48. Electronic house bill data may be presented up to 90 days before arrival. If the data is not to be used, the freight forwarder must transmit a delete (cancel) for that house bill transmission data and update any applicable house bill close messages.

49. House bills may be transmitted before or after the consolidated primary cargo report, however, all house bills must be on file prior to submission of the house bill close message. As indicated in paragraph 27 of this memorandum, the house bill close message must also be transmitted within the prescribed timeframes.

Supplementary Cargo Reports – Air and Marine

50. Freight forwarders are liable for the transmission of supplementary cargo reports, which are required for all consolidated FROB cargo in the air and marine modes only. House bills are required for all other consolidated cargo.

51. The supplementary data must be electronically transmitted to the CBSA by the freight forwarder or their authorized service provider, within the prescribed timeframes as specified in paragraph 27 of this memorandum (note – only air and marine timeframes are applicable).

52. Supplementary cargo reports can be transmitted before or after the consolidated primary cargo report.

53. The supplementary cargo report will be accepted if the related primary cargo report is not on file.When the primary cargo report is captured, the supplementary cargo report will then be related to the primary cargo report. Therefore, it is imperative that the CCN of the primary cargo report be transmitted properly on the supplementary cargo report.

54. For a complete list of the information that a freight forwarder must include in the supplementary cargo transmission and additional information, please refer to: Chapter 1: Advance Commercial Information (ACI) Marine, Appendix D, or Chapter 2: Advance Commercial Information (ACI) Air, Appendix E.

Notices and Error Messages

55. All pre-arrival data received will be validated and processed through the CBSA's systems and the CBSA will transmit response messages back to the sender. Notices are sent to the sender via the same route as the incoming transmission.

56. There are two types of response messages clients can expect to receive from the CBSA systems when transmitting electronic pre-arrival submissions:

57. Positive responses are issued in the form of Acknowledgements. Acknowledgements are generated when the EDI transmission has successfully passed all syntactical, conformance and validation edits.

58. Error responses will be transmitted to the sender indicating the nature of the error. Freight forwarders must make corrections to transmissions in error and re-send to the CBSA in a timely manner.

Status Notices

59. Status Notices are electronic notices that are sent to primary notify parties (PNP), automated notify parties (ANP), and/or secondary notify parties (SNP) to inform them of the level to which their pre-arrival data has been transmitted, and/or the decisions that have been made with regard to their data transmissions to the CBSA.

60. A PNP is a client who transmits advance commercial information to the CBSA, and will receive notification from the CBSA about the status of their shipments.

61. A SNP is a client who is eligible to receive a Manifest Forward either automatically or by nomination.

62. An ANP is a client who has been identified by the CBSA to receive a Manifest Forward or a Status Notice automatically.

63. In order to be eligible to receive electronic notification about the status of transmitted data, all clients (Primary Notify Parties, Secondary Notify Parties, and Automated Notify Parties) must be registered with the CBSA, and have their EDI communications profiles set up to receive EDI notification.

64. Clients must register with the Technical Commercial Client Unit, to receive these notices.

65. Freight forwarders may choose to register to receive any of these status notices. The following types of notices are available:

66. For a complete description of all notices, error messages and codes and their application, as well as requests for status notices, refer to Chapter 8: ACI/eManifest House Bill Portal ECCRD or Chapter 11: ACI/eManifest Notices ECCRD.

Manifest Forward – (does not apply to supplementary cargo reports)

67. The Manifest Forward is a copy of transmitted data (currently only house bills) that is sent to nominated registered clients; it is made available to clients to improve the lines of communication between all parties. Clients who transmit house bill data and house bill close message data are able to identify registered CBSA clients with whom they want to share a copy of their data. Sharing data through Manifest Forward will provide trade chain partners an efficient means of communication.

Deconsolidation Notice

68. The Deconsolidation Notice is an electronic notice sent from the CBSA which informs clients (freight forwarders, warehouse operators, and carriers) that the CBSA has authorized the transfer of cargo control from a consolidated shipment to the related individual secondary house bills that were submitted by a freight forwarder.

69. The Deconsolidation Notice serves as electronic notification to the warehouse operator to allow the freight forwarder to take control of the goods within the consolidation. This notice also serves as electronic notification to the party liable for duties and taxes that the consolidated cargo or consolidated house bill has been acquitted.

70. Non-bonded freight forwarders cannot move unreleased goods within Canada. If the carrier code on the individual house bills is non-bonded, the house bills must be re-manifested to a bonded carrier if the destination warehouse does not match the primary cargo. It is not the warehouse operator's responsibility to know whether a freight forwarder is bonded or non-bonded.

71. The Deconsolidation Notice is currently an optional notice for which clients must register to receive. If a freight forwarder receives the electronic Deconsolidation Notice and the warehouse operator does not, the freight forwarder may print the EDI notice message and provide a paper copy to the warehouse operator. This paper copy will serve as authorization to the warehouse operator to allow the freight forwarder to take possession of the shipments within the primary CCN.

72. As the Deconsolidation Notice is currently only available through EDI, clients who use the eManifest Portal and do not register for Deconsolidation Notices through EDI, may print out their house bill close message which lists all of the cargo control numbers within the consolidation. This printed house bill close message must then be presented to the CBSA for stamping. Once stamped, it can then be presented to the warehouse operator and serve as authorization to allow a freight forwarder to take possession of the shipments within the primary CCN.

73. Alternatively, a freight forwarder may present a copy of the consolidated cargo control document to the CBSA for stamping. The border services officer will verify, stamp, and notate the related house bill cargo control numbers on the document.

74. The Deconsolidation Notice is currently only available through EDI. Clients must register with the Technical Commercial Client Unit, to receive this notice.

75. For a complete description of all notices, error messages and codes and their application, as well as requests for status notices, refer to Chapter 8: ACI/eManifest House Bill Portal ECCRD or Chapter 11: ACI/eManifest Notices ECCRD.

Risk Assessment Notices

76. Risk assessment notices may be issued when the CBSA requires the client to provide more information regarding the house bill or, to provide the client with specific instructions regarding the loading/unloading of the cargo. These notices are sent to the applicable parties depending on the type of notice and who sent the transmission. See Chapter 11: ACI/eManifest Notices ECCRD for more details on risk assessment notices.

77. Similar to reject notices (or error codes), risk assessment notices include a coded field identifying the reason why the notice was issued and the specific data element requiring clarification or further explanation. In addition, risk assessment notices may also include a free text remarks field providing external clients with additional information concerning the coded field or with instructions for the client.

78. CBSA systems will send 'Hold' and/or 'Cancellation' coded messages back to the sender and other relevant parties. The message is sent to the parties via the same electronic means as the incoming transmission. These messages will reference the house bill CCN. It is the freight forwarders responsibility to check their system for coded messages.

79. For a complete description of risk assessment notices, refer to Chapter 11: ACI/eManifest Notices ECCRD.

Corrections

Corrections to House Bill Data

80. Changes to house bill data should be made as soon as they are known. Electronic changes by clients will be accepted up to the arrival of the goods in Canada identified by the transmission of the conveyance arrival certification message in non-highway modes or arrived by the border services officer in highway mode. After this point all modifications must be transmitted as an amendment. Amendments will be identified by the use of an amendment code in the change record, the purpose of which will identify the type of amendment being made.

81. An addition (original) is used for the first submission of any data, whether it is house bill or house bill close message data.

82. A change involves the transmission of an entire new record (all applicable data elements), which will then replace the entire record on file. A change is allowed until the time of arrival of the goods.

83. A delete (cancel) is used for the complete removal of records or packages of records. A delete should be used if it has been determined that the goods will not be coming to Canada, otherwise a change or amendment should be used.

84. Like a change, an amendment also involves the transmission of an entire new record (all applicable data elements), which will then replace the entire record on file. An amendment is used when a change is required after the conveyance arrives in Canada.

85. For further information on transmitting changes or amendments to house bill data please refer to Chapter 5: ACI/eManifest House Bill ECCRD

Corrections to ACI Supplementary Cargo Data (FROB shipments in the air and marine modes only)

86. Should the Supplementary Reference Number on a supplementary cargo report need to be changed, a "delete" and subsequent "add" must be sent for the whole supplementary report. A change request will not be accepted in this case.

87. Changes to supplementary cargo reports can be made up to 30 days post arrival, and should be made as soon as they are known.

88. If the primary cargo control number transmitted within the supplementary cargo report is required to be corrected then the client can send a change to the supplementary cargo report to correct this data element.

89. In the marine mode, changes made to supplementary cargo data elements before the departure of the vessel from the foreign port of loading (for cargo loaded in a country other than the US) will restart the 24-hour rule clock; that is to say the cargo cannot be loaded on the vessel for at least 24 hours from the time an acknowledgement for the change transmission is received by the client from CBSA system. If the change was transmitted in response to a Do Not Load Notice, loading can proceed once a Cancellation (of the "do not load") Notice is received from the CBSA.

90. For further information on transmitting changes to supplementary data please refer to Chapter 1: Advance Commercial Information (ACI) Marine, Chapter 2: Advance Commercial Information (ACI) Air.

Post Arrival Amendments

91. House bill data and house bill close message transmissions, if found to be in error post-arrival, must be amended as soon as the error is discovered.

92. Amendments may be made to any data element with the following "key" exception:

House bill cargo control number (if required, a deletion request must be submitted manually).

93. If amendments/deletions to this data element are required, the online House Bill, Cargo and Conveyance Manual Correction Request Form – Post Arrival -All Modes (BSF673) must be completed. Carriers/freight forwarders have up to 90 days to present the correction request to CBSA.

94. In circumstances where an immediate correction is required when the conveyance has arrived and reported at the port of entry (e.g., driver waiting scenario), a completed Form BSF673 (in duplicate) can be presented to the port for processing in order to facilitate the furtherance of the conveyance and/or processing of cargo.

95. Clients are now offered additional options for submitting Form BSF673:

Exemptions to Pre-arrival Electronic Data Transmission

96. Certain types of cargo may be exempt from house bill cargo reporting, or supplementary data reporting. Freight forwarders should refer to the pre-arrival memoranda for cargo exceptions for each mode of transport. If pre-arrival primary cargo data is not required by the carrier, pre-arrival house bill data, or supplementary (FROB) will also not be required by the freight forwarder.

Process for ACI Exempt Consolidated Cargo

97. ACI exempt consolidated cargo shipments must be documented on an approved secondary cargo control document (house bill) and presented to the CBSA at the office of destination, at the time of arrival. Each individual shipment must be documented on a separate cargo control document with all mandatory fields fully and properly completed as outlined in the appendices of Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods. The cargo control document must include the previous CCN.

98. The long room and customs delivery authority copies of the secondary cargo control document(s) (house bills) will serve as the consignee's notice of arrival of the goods. These copies must be presented to the CBSA with the corresponding release document(s). When release is authorized by the CBSA, the customs delivery authority copy of the secondary cargo control document (s) will be stamped and returned to the warehouse operator as authority to release the goods. The long room copy of the secondary cargo control document will be retained on file by the CBSA.

99. In all cases under this procedure, the bonded freight forwarder's secondary cargo control document acquits the primary carrier's cargo control document in the CBSA system. The bonded freight forwarder becomes responsible for dealing with shortages, reporting overages, and for all such matters as would normally relate to the carrier. For further details on shortages and overages, refer to the Unique Shipment Processes section of this memorandum.

Flying Trucks

100. Flying trucks are currently exempt from pre-arrival electronic cargo data. If a primary cargo associated to a flying truck is consolidated, paper house bills must be presented by the freight forwarder to the CBSA office after the primary cargo has arrived at the sufferance warehouse.

Movement and Cargo Control of Unreleased Goods in Canada

Warehouse Arrival Certification Message (WACM)

101. A WACM is an electronic message sent by a warehouse operator to the CBSA when unreleased cargo that is destined to their warehouse, physically arrives. A WACM must be sent for each CCN that has a final destination of that warehouse. Warehouse operators must contact the Technical Commercial Client Unit to register for, and become compliant with WACM requirements. Clients must use EDI to transmit WACM, as this functionality is not currently supported through the eManifest Portal.

Consolidated Cargo Destined for FPOA

102. Consolidated cargo that is destined to FPOA, and has a valid release document on file that is in good standing at the time of arrival at FPOA, will be released at arrival.

103. When a consolidated primary cargo has a port of destination of FPOA and the related house bills have an inland port of destination, the shipments may be transported to the destination indicated on the house bills by another carrier or freight forwarder under the original freight forwarder's bond. If the freight forwarder is not bonded, each individual house bill must be re-manifested at FPOA to a bonded carrier or bonded freight forwarder for furtherance to the final destination.

Consolidated Cargo Destined Inland

104. Unreleased cargo can only move within Canada under a CBSA issued bonded carrier code. Bonded freight forwarders may contract other carriers or freight forwarders to move unreleased goods on their behalf, however liability for duties and taxes on unreleased goods moving within Canada remains with the owner of the carrier code on the un-acquitted cargo control document until those goods are released, or a documented transfer of liability occurs. A change in liability to another carrier or freight forwarder can only occur with a re-manifest.

105. Consolidated cargo that is destined inland, and has the same port of destination as the primary cargo, will move inland to the sufferance warehouse under the liability of the bonded primary carrier.

106. When the primary cargo physically arrives at the destination sufferance warehouse, the warehouse operator will send a WACM to the CBSA which will trigger the automated Deconsolidation Notice to the warehouse operator, freight forwarder and primary carrier.

107. Once the Deconsolidation Notice has been sent, the consolidated shipments may be released to the freight forwarder for furtherance to the final destination as indicated on the house bills. Warehouse operators and freight forwarders must keep a record of the physical transfer of liability to the freight forwarder. Records must include the applicable house bill numbers and a signature of acceptance of the shipment(s) by the freight forwarder.

108. When the individual shipments physically arrive at their final destination, a WACM must be sent by the warehouse operator for each individual shipment. If a PARS is on file and in recommended release status at the time of arrival at the final destination, the shipments will be released.

109. When shipments within a consolidation are destined to multiple final destinations, the primary carrier will move the goods to the destination as indicated on the primary cargo document. A WACM will be transmitted for the primary cargo and all consolidated shipments that have the same destination as the primary cargo will also be arrived. House bills destined to a different location will remain in reported status until they arrive at the destination as indicated on the house bills. Unreleased cargo may be moved to the final destination by the bonded freight forwarder, or by a carrier or freight forwarder contracted by the freight forwarder. Liability for duties and taxes will remain with the bonded freight forwarder unless the shipment is re-manifested to another bonded carrier or bonded freight forwarder.

In-transit and Transiting Shipments

US Domestic Goods Transiting Through Canada and Canadian Domestic Goods Transiting Through the US (highway and rail modes only)

110. Pre-arrival electronic house bills are not required for US domestic goods transiting through Canada and returning to the US; or Canadian domestic goods transiting through the US and returning to Canada. For more information on US domestic and Canadian domestic in-transit goods, refer to Memorandum D3-4-2, Highway Pre-arrival and Reporting Requirements and Memorandum D3-6-6, Rail Pre-arrival Reporting Requirements.

Cargo Transiting Through Canada to/from Foreign/Offshore

111. Consolidated shipments that are transiting Canada to/from Foreign/Offshore require pre-arrival house bill data for each shipment within the consolidation.

Unique Shipment Process (for consolidated cargo shipments)

112. Freight forwarders must transmit ACI cargo data for all goods being transported to, or transiting through Canada, unless there is an exemption or exception.

113. The following are not exempt from pre-arrival data; however the reporting and or pre-arrival requirements differ in some manner.

Single Shipments

114. Single shipments, also known as back to back shipments, are shipments that involve both a freight forwarder and a primary carrier, but consist of only one shipment. Single shipments are considered consolidated for the purposes of ACI transmissions. An electronic cargo transmission is required from the primary carrier indicating "yes" for consolidation. An electronic house bill, and house bill close message are required from the freight forwarder. Single shipments will be processed in the same manner as consolidations that included multiple house bills.

115. Single shipments that are destined to the same warehouse as the primary cargo, and are in good standing, will be arrived by the conveyance arrival certification message, and released.

116. Single shipments that are destined to the same warehouse as the primary cargo, but do not have a release on file in good standing, or require examination must be arrived by the primary warehouse using the WACM.

Consolidated Freight Remaining on Board (FROB) Shipments Re-entering Canada as Imports

117. Consolidated FROB shipments arriving in Canada which are then shipped to the United States, offloaded and then shipped to Canada as an import, must adhere to the following process:

Split Shipments (air mode only)

118. The split shipment process was designed to accommodate goods that were manifested as one shipment and then split prior to departure due to carrier capacity constraints. For additional information regarding Split Shipments in air mode see Memorandum D3-2-1, Air Pre-arrival and Reporting Requirements.

119. Any supplementary or house bill transmissions that are required for a split shipment must be applied to the primary cargo report, and not to the individual split shipment transmissions.

Goods Found Astray (Misrouted Goods)

120. Foreign goods found astray in Canada must be electronically reported post arrival as soon as they are discovered by the freight forwarder. The goods may then be exported under the Reporting of Exported Goods Regulations and Memorandum D3-1-8, Cargo-Export Movements.

Overages

121. Any excess in the number of pieces transmitted in the same shipment and found by the carrier/freight forwarder post arrival are considered overages. Freight forwarders are required to report any overages to the CBSA as soon as they are discovered by transmitting a post arrival amendment to the original house bill transmission. An overage occurs only where pre-arrival data was transmitted and a quantity of goods was initially reported upon arrival at FPOA, and subsequently the number of pieces is found, by the freight forwarder, to exceed the number of pieces reported to the CBSA pre-arrival and upon arrival. If no data was transmitted pre-arrival and no report occurred, and the goods are discovered by the CBSA post arrival, this constitutes non-report, not an overage, and may be subject to penalty action.

Shortages

122. Any deficiency in the number of pieces transmitted in a shipment and found post arrival are considered shortages. Freight forwarders are required to report any shortages discovered by them to the CBSA as soon as they are discovered by transmitting a post arrival amendment to the original house bill transmission and advise the consignee/broker accordingly.

Failure to Transmit Pre-arrival/Pre-load Information

123. The CBSA requires complete information pertaining to all specified goods arriving in Canada. Where no pre-arrival information was transmitted and no exemption or exception exists, a house bill transmission is required as soon as it is discovered. Should the CBSA discover goods for which no pre-arrival data was transmitted, and for which no report was made to the CBSA, penalties may be issued to the freight forwarder.

Non-resident Importer

124. For shipments being delivered to Canada where the consignee is a non-resident importer, the foreign name and address of the consignee will be accepted in the consignee name and address fields in the house bill transmission.

125. The Canadian party to whom the cargo is being delivered to must be provided in the Delivery Name and Delivery Address fields. The name and address may be a warehouse, rail yard, etc., if that is where the carrier/freight forwarder's contract of carriage ends.

Transmitting "To Order" Shipments

126. In acknowledgment of common business practices the CBSA will accept "To Order"; "To Order of Shipper"; or "To Order of Bank"; or "Other Named Entity" in the Consignee field provided the name and address of the owner or owner's representative is transmitted in the Notify Party fields.

127. To help clarify, the following examples illustrate the CBSA's requirements:

Ships' Stores (goods imported for ships stores)

128. Defined as goods imported into Canada by Airlines or Vessels specifically for delivery to vessels or a bonded warehouse. Please refer to Memorandum D4-2-1, Ships' Stores for additional information.

129. Pre-arrival house bill information pertaining to goods imported for ships stores into Canada must be transmitted electronically within the guidelines and procedures outlined in the Reporting of Imported Goods Regulations and this memorandum.

Duty Free Shops (goods imported by Duty Free Shops)

130. Defined as goods imported into Canada by Duty Free Shops and delivered directly to a licensed Duty Free Shop facility. Please refer to Memorandum D4-3-4, Duty Free Shop – Operational Responsibilities and Memorandum D4-3-5, Duty Free Shop – Inventory Control and Sales Requirements.

131. Pre-arrival house bill information pertaining to goods imported and delivered directly to a licensed duty free shop must be transmitted electronically within the guidelines and procedures outlined in the Reporting of Imported Goods Regulations and this memorandum.

Contingency Plan in the Event of System Failure

132. In the event of a CBSA system outage, all efforts will be made to continue normal communications and restore systems to normal operating condition as soon as is reasonably possible.

133. Clients must retain the ability to produce hard copy house bill, house bill close and supplementary report declarations in the event of a disruption to CBSA systems.

134. The CBSA System Outage Contingency Plan sets out the procedures for importing commercial goods in the event of a full CBSA system outage in all modes. This contingency plan as well as Summary Outage Sheets (SOS) for each mode can be found on the CBSA Web site.

135. Clients may contact the TCCU at 1-888-957-7224 for additional clarification.

Penalty Information

136. For information on administrative penalties, refer to Memorandum D22-1-1, Administrative Monetary Penalty System. Information on AMPS penalties is also available on the AMPS Web page.

137. Other administrative sanctions, such as the revocation of program privileges and penalties of Other Government Departments, may also be applicable.

Additional Information

138. For more information, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time / except holidays). TTY is also available within Canada: 1-866-335-3237.

References

Issuing office:
Transporter and Cargo Control Programs Unit
Program and Policy Management Division
Commercial Program Directorate
Headquarters file:
 
Legislative references:
Other references:
Superseded memorandum D:
D3-3-1 dated May 8, 2013
Date modified: