FAQs

Frequently Asked Questions About Customs & Importing

Whether you are an experienced importer or moving goods into the country for the first time, Capital Customs has the answer. Here are just few of our clients’ most frequently asked questions.

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What can I import into Canada?

Virtually any goods can be imported into Canada, with the exception of certain types of products that are prohibited under various legislation or other trade rules. We would be pleased to inform you of any regulations that may apply to the products you wish to import.

When do customs penalties apply?

Administrative Monetary Penalties (AMPs) place the responsibility on all importers, exporters, and facilitative companies such as Capital Customs Brokers to be compliant and accurate. There are four main areas of compliance for importers:

Origin
Classification
Valuation
Discrepancies (e.g. when the quantities of imported goods do not match the invoice, underages and overages must be reported)

Could you explain how the Harmonized System works?

The Harmonized System (HS) is an international 10-digit commodity classification for imports that serves as the basis for Customs tariffs and international trade statistics. Under the Harmonized System, goods are specifically classified according to their state at the time of import, and not according to their stage of fabrication, intended use, country of origin, or any other criteria.

When importing a vehicle into Canada, what steps should I take?

Please consult the Registrar of Imported Vehicles website (www.riv.ca) to determine whether Transport Canada will allow the type of vehicle you would like to import. Many vehicles from the US are allowed into Canada, but vehicles from other countries are not typically allowed. Once you have determined that your vehicle is admissible, US Customs must be advised of the vehicle’s export no less than 72 hours prior to exporting.

Arrangements concerning the vehicle’s import into Canada, payment of applicable duties and taxes, and the filing of pertinent RIV forms can be handled by Capital Customs on your behalf. To do so, we’ll need the bill of sale and the vehicle’s registration documents; we will also need to know the time your vehicle is expected to cross, and through which port of entry. If you are not driving the car into Canada but instead using the services of a commercial carrier, you must also advise us of the carrier so that we may coordinate the shipment.

What is NAFTA?

The North American Free Trade Agreement (NAFTA) is a trade agreement between Canada, the United States, and Mexico. It allows for reduced or duty-free rates on certain goods that are imported from one of these countries into another.

How can I determine if the goods I’m importing from the US qualify under NAFTA?

Only the supplier or manufacturer of the goods can determine this. But don’t worry! We can help equip you with the right questions to ask your suppliers to get the exact answers you’ll need – or when in doubt, we’ll liaise with the supplier directly if that’s your preference. Whatever works best for you!

I recently imported goods from a US supplier, and just discovered that the goods qualify under NAFTA. How can I recover the duty I have paid?

Customs Act regulations allow you to file for a refund within one year of importing the goods. When submitting your claim, you must provide a copy of the NAFTA certificate along with the imported goods’ original documentation.

I recently imported goods from a supplier who provided a NAFTA certificate, and just discovered that the goods do not qualify under NAFTA. What should I do?

You would need to obtain a letter from your supplier explaining the incorrect use of NAFTA, and then an amendment to the customs entry would need to be filed.

I am expecting a shipment from the US. Can I prepare the NAFTA certificate for these goods myself?

Only the supplier or manufacturer can determine whether their goods qualify for NAFTA, therefore they must complete the NAFTA certificate themselves.

What is GST, and how is it calculated against imported goods?

Canada’s Goods and Services Tax (GST) is 5% of the duty paid value of the imported goods.

What is ‘duty paid value’?

‘Duty paid value’ represents the Canadian dollar value of imported goods combined with the duty that is payable for the goods.

I am expecting to receive a gift from the US. Will duties and taxes be due?

Canada has a gift allowance of $60 CDN per person. If the value of the gift you receive exceeds this figure, duties and taxes will apply specifically to the value of the gift minus the $60 CDN allowance.

The paperwork involved in the customs clearance of one of my shipments from the US was incorrect. The value of the goods I imported was less than the value indicated. Since I have already paid duties and GST on the larger value, what should I do?

Despite the fact that you have overpaid, you should still have the customs entry amended to its proper figure so that, should you be subjected to a verification audit in the future, your records reflect the value of the goods you actually received. Capital Customs can help with that!

I placed an order with a US supplier. Who is responsible for completing the related paperwork?

The supplier through whom you placed the order should complete the customs paperwork. However, it is acceptable for you to complete the Canada Customs invoice according to the information from the commercial invoice of your supplier.

What value does your company bring to the table in the world of customs import services?

Essentially, Capital Customs serves as the link between the customer, the people who transport the goods, and Canada Customs. Our expertise in customs importing allows us to identify any missing or incorrect information on the customs documentation. In short, we make sure all of your shipments are compliant, 100% of the time.

Capital Customs will:

ensure that the imported goods have the proper classification according to the Harmonized System (HS);
identify ways to minimize applicable duties and other related costs;
liaise with the transportation carrier to pave the way for the timely release of your goods from customs;
solve any problems that may be associated with the clearance of your goods; and
ensure the delivery of your goods.

What are the criteria for the fees you charge for importing goods?

Fees are charged based on a series of factors depending on the kind of shipment. Fees are based on the value of the goods, the number of different items on the invoice, and any applicable disbursements associated with the importing of your goods.

Do you have offices in various border locations across Canada?

While our office is located in the Ottawa region, we are electronically connected with the Canada Border Service Agency. Simply put, Capital Customs can customs-clear your shipments anywhere in Canada.