M2.3: The Rules of Trade Flashcards
How many parts is the Customs Act divided into?
7 Parts
1. General
2. Importation
3. Calculation of Duty
4. Abatements and Refunds
5. Collection
6. Enforcement
7. Regulations
Under what acts are duties and taxes levied or imposed ?
Customs Tariff
Excise Act 2001
Excise Tax Act
SIMA (Special Import Measures Act)
Any Act of Parliament
What does Part IX (9) of the Excise Tax Act cover?
GST
What does subsection 3(1), paragraghs 59(3)(b) and 65(1)(b), sections 69 and 73 and subsections 74(1).75(2) and 76(1), of the Customs Act, Excise Act and Exice Tax Act pertain to?
Refund of duties and excludes refund of GST
How many parts is the Customs Tarff Act divided into?
9 Parts and 214 Sections;
1. International and general
2. Cusoms duties
3. Duties relief
4. Regulations and orders
5. Prohibited Goods
6. Transitional provisions
7. Related amedments
8. Consequential amendments
9. Repeal and coming into force
Who is responsible for ensuring the tariff is administered correctly?
CBSA
Who prepares the the tariff legislation and why?
Finance Canada because the tariff involves the collection of revenue.
What does the Customs Act allow the CBSA to do?
provides legislative authority for the CBSA to collect duty
What does the Customs Tariff Act do?
Imposes duties and provides relief of the imposition of certain duties
Under what subsection of the Customs Act allows the BSO to open and take samples of suspected prohibited goods?
Subsection 99(1) of the Customs Act
Under what subsection of the Customs Act allows the BSO to detain goods prior to release ensure they are legal to import or export?
Section 101 of the Customs Act
What section of the Customs Tariff Act states that importation of certain goods are prohibited?
Section 136 of the Customs Tariff Act
What D Memo covers Prohibited Goods
D 9
What section of the Customs Act allowes CBSA to seize goods that have been smuggled
Section 110 of the Customs Act
What section of the Customs Act allow an importer to appeal a seisure of goods?
Section 129 of the Customs Act states that importer who wish to appeal any seizures must do so in writing and within 90 days of the seizure date.
What goods are forfeited if seized?
Illegal Drugs, Firearms and weapons at not returned.
A person who smuggles or attempts to smuggle goods into Canada is committing an offence under what section and what Act?
Section 159 of the Customs Act.
If a person smuggles they are subject to what terms in what section of Customs Act?
Section 160 of the Customs Act
1. offence punishable on summary conviction and fined 50k, or 6 mnths in jail
2. indictable offence and fined 500K or 5 years in jail
Summarize the Customs Act
- is divided into 7 parts
- legislation that controls the movement of goods and persons in an out of Canada.
-Accounting of importer goods and payment of D & T - lists valuation methods for imported goods
Summarize the Customs Tariff Act
- divided into 9 parts and seval schedules
-imposition of customs duty and relief of other duties.
What section of the Customs Act gives BSOs the authority to open goods they suspect to be prohibited?
Section 99(1)
What section of the Customs Act gives the BSOs the authority to detain goods they suspect are prohibited?
Section 101
What section of the Customs Act gives the BSOs the authority to seize goods or conveyances they believe are in contravention of the regulations?
Section 110
What section of the Customs Tariff Act states that the importation of certain goods specified in the Customs Tariff are prohibited?
Section 136
What goods are prohibited?
miscellaneous goods
firearms and weapons
books, printed paper drawings deemed obscene, hate propaganda etc.
What section of what act covers smuggling or attemps to smuggle goods into Canada?
Section 159 of the Customs Act
What are monetary penalties based on?
Risk posed to:
National security
Health and Safety
economic and international commitments
What is AMPS? Administrative Monetary Penalty System
civil penalty regime that ensures compliance with customs legislation through the application of monetary penalties
What is the MPD(Master Penalty Document)?
Database that contains all the potential penalties that can be issued by the CBSA under AMPS
What is the penalty retention period for border violations?
1 year - generally
3 years - post release verification activities
What D memo covers AMPS?
D 22
What are the Designated Provisions (Customs) Regulations?
list the legislative authority that forms the bases of each penatly
What key elements are noted on the NPA ( Notice of Penalty Assessement)
Date
Contravention
Penalty details
Correction and redress (appeal)
payment and interest info
Where are corrections or appeals to a AMPs penalty made?
Online or writing to the CBSA Recourse Directorate in Ottawa.
What is the PRA Penalty Reivestment Agreement?
mechanism by which the amount of penalty under the AMPS can be reduced
What is the AMPS
- graduated system of penalties for infractions under Customs Act, Tariff Act and SIMA
Where are contraventions found under AMPS
Master Penaltiy Docment MPD
What is used to issue a penalty?
Notice of Penatly Assessment NPA
What can the importer due when issued a NPA
- Pay
- Request a review
- Appeal
- Enter into PRA Penalty Reinvestment Agreement
What is the PRA Penalty Reinvestment Agreement?
- it is a mechanism which the amount of a penatly under AMPS can be reduced
- reduced dollar for dollar basis
-specific or prohibited goods are not eligible
When can a PRA be requested?
when the infraction is found to be a result of a failure in the company’s CIS (Customs Information System)
What does the Excise Tax Act provide?
- imposition and collection of GST
- implementation of Harmonized Sales Tax HST (5 provinces)
- excise tax on specific goods (vehicles)
How many parts is the Excise Tax Act divided into?
9 Parts and 10 Schedules
What does Part 1 of the Excise Tax Act cover?
Insurance premiums
What does Part 2 of the Excise Tax Act cover?
Telecommunication Services
Who is responsible for the collection of excise tax on imported goods?
CBSA
What are the provinces called that are subject to HST?
Participating Provinces
What 2 Acts are the authority for excise duty?
Excise Act
Excise Act, 2001
How many parts is the Excise Act comprised of?
6 parts
key component is Section 1.1(1)
What does Excise Act Section 1.1(1) state?
Parts 3 and 4 of the Excise Act, 2001does not apply to beer, malt liquor and imposed levied and collected Excise DUTY under the Excise Act
What Act imposes, levies and collects excise duty on beer manufacture/produced in Canada?
Excise Act
How many parts does the Excise Act, 2001 comprise of?
11 Parts and several schedules
What goods manufactured or produced in Canada have Excise Duty imposed, levied and collected on under the Excise Act, 2001?
- all spirits
- wine
- tobacco
- cannabis products
What else does the Excise Tax, 2001 provide?
Ship Stores at sea or outside of Canadian coastal waters.
What Act and sections provide for additional duty to be applied for beer, spirits wine tobacco and cannibas?
Customs Tariff Act sections 21.1, 21.2 and 21.3
What is regular duty?
Duty assessed under the Customs Tariff schedule
What is excise duty?
additonal duty but technically is not
What provinces are HST participating provinces?
- Nova Scotia
- New Brunswick
- Newfoundland and Labroador;
- Ontario
- Prince Edward Island
What Act provides for excise duty on Beer manufactured/produced in Canada?
Excise Act
What Act provides for excise duty on spirits, wine, cannabis and tobacco manufactured/produced in Canada?
Excise Act, 2001
When beer, spirits, wine, cannabis and tobacco are imported what Act provides additional duty equivalent to excise duty?
Customs Tariff Act
Why was the Special Import Measures Act create?
to protect industries in Canada from injury and is divided into three parts
What does SIMA provide?
- Investigation of complaints that imported goods sold at a reduced cost cause injury to Canadian producers.
- assessment of additional costs if injury is found.
What does Dumped mean?
selling of goods in another country’s market at prices lower thatn the prices at which the goods are sold.
Offsetting by additional duty at time of importing called Anti Dumping Duty
What does Subsidized mean?
-goods imported into Canada from a foreign government financial assistance.
-Production of the goods has been subsidized by the government of the exporting country.
Countervailing duties are assessed
What does Provisional duties mean?
Duty applied to goods while in investigation of dumping or subsidizing is underway
What is the Provisional period?
The time between establishing that dumping and/or subsidizing has occurred and the determination of injury.
Where can a company file a formal complaint to begin an investigation into dumping and or subsidizing?
CBSA’s Trade and Anti-dumping Prgram Directorate.
What qualifies for a investigation into dumping and or subsidizing?
the complaint must represent at least 25% of Canadian production of the goods and;
the number of producers supporting the claim must be greater than the producers apposed.
What is SIMA?
protection for Canadian producers from dumped and subsidized goods that cause injury to Canadian production.
What are the key points of the Customs Act?
- is divided into seven parts;
- includes the legislation that controls the movement of goods and persons into and out of Canada;
- provides for the accounting of imported goods and the payment of duties and taxes;
- lists the valuation methods to be used for imported goods;
What are the key points of the Customs Tariff Act?
- is divided into nine parts and several schedules;
- provides for the imposition of customs duty, as well as for relief of other duties;
