Part 1: Lesson 1 Working as a CCCS

Question 1

Who may issue a Customs Broker License in Canada

Answer 1

Minister of Public Safety Canada, or any person designated by the Minister for this purpose, may issue to any person who is qualified under the Customs Brokers Licensing Regulations a licence to transact business as a customs broker.

Question 2

Who can hold a Customs Broker License in Canada

Answer 2

Corporation, Partnership, Sole Proprietor; and must be incorporated in Canada, good reputation, Canadian Citizen or permanent resident in Canada, of good reputation/character, partner/owner over 18, sufficient funds to conduct business and at least one member that has sufficient knowledge to conduct the business determined in accordance with the Qualified Officer and Loss of Status Provisions of CBSA’s D1-8-1 .(corp is spoken to based on Directors - majority must fit the citizenship needs, all of good character though)

Question 3

What requirements are there to prove that a customs broker has sufficient financial resources

Answer 3

Although evidence does not have to be submitted with the application, an applicant may be asked to prove they have sufficient financial resources to manage the business in a responsible way. eg. an audited financial statement;

Question 4

What requirements are there to prove that a registered customs broker has specified knowledge requirements

Answer 4

Chosen Qualified Officer must meet the above mentioned residency, citizenship, age and character requirements and must have passed the Customs Brokers Professional Examination (administered by CBSA) (exam request form L55); only one person in company can act as the Qualified Officer

Question 5

Customs Broker License Application

Answer 5

Complete form L53 and include: 1. $50K financial security, 2. Qualified Officers cert of qualification (cert from CBSA licensing exam) 3. Proof of citizenship/residency (for qualified officer and majority of directors) 4. completed Form L60, Customs Brokers Questionnaire (completed by all appointed qualified officers, partners and directors) 5. Annual License Fee $600 to Receiver General for Canada

Question 6

Once the CBSA has received the application and before a licence is issued, the CBSA posts a notice regarding the application, where and for how long

Answer 6

10 business days, CBSA commercial office where application was made

Question 7

The Application Notice includes what information?

Answer 7

corp legal name, address, name/address of officer meeting knowledge requriements and
director(s), crops dba name if any

Question 8

Where can a Customs Broker conduct business?

Answer 8

Customs Office on license, any customs office in Canada specified by the Minister, through a sub agent, by electronic means

Question 9

What is a sub agent?

Answer 9

another customs broker appointed to present customs declarations on behalf of another customs broker in a CBSA area where primary broker does not hold a license

Question 10

Why has EDI negated most need for subagents?

Answer 10

EDI allows a customs broker to transmit information directly to CBSA, regardless of where they are licensed, or the goods are located.

Question 11

What is the CBSA’s Electronic Longroom?

Answer 11

Ability to submit “paper”entries using PDF/email rather than in person; but if a customs broker wishes to use electronic longroom services for submission of “paper” documents in a particular location, it must be licensed in that location.

Question 12

Once licensed, a customs broker must:

Answer 12

Display its license; notify CBSA of any changes (address, officers etc.); provide documentation to its clients (a copy of the customs accounting documents); Accounts for Funds Received (funds received for the client from Receiver General of Canada or in excess of pyaments to CBSA)

Question 13

How often must a Customs Broker License be Renewed?

Answer 13

Annual basis ($600 for each CBSA area)

Question 14

What are the 8 reasons a customs license can be revoked

Answer 14

1. Contravened import/export Act/Regulation of Parliament, 2. Deraud of her Majesy or Client, 3. evasion of any duties or other debts due, 4. failed to comply with the Customs Brokers Licensing Regulations, 5. became insolvent or bankrupt, 6. dishonest conduct, 7. failure to carry out broker duties, 8. no longer qualified under the Customs Brokers Licensing Regulations

Question 15

When is a Customs Broker License Required?

Answer 15

When acting on behalf of an importer to release and account for goods

Question 16

Does an importer require a customs broker licence when its employees release and account for goods directly with the CBSA?

Answer 16

No

Question 17

True or False; only a customs broker can release and account for goods on behalf of more than one importer?

Answer 17

True

Question 18

Who can become a licensed Customs Broker

Answer 18

Corporation, Partnership consisting of individuals or Corporations, or a Sole Proprietor.

Question 19

Who is the qualified officer in a Customs Brokerage Company? (only one is needed per license)

Answer 19

The individual who meets the knowledge requirements

Question 20

Name of License Application Form?

Answer 20

Form L53

Question 21

What are the 2 Key requirements of Application Process?

Answer 21

financial security, iinformation regarding the sole proprietor, partners, or directors, and Form L60

Question 22

Security can posted by what means?

Answer 22

Security
The security referred to is required by the CBSA to protect them against potential loss. It can be in the form of: cash; a certified cheque; a transferable bond issued by the Government of Canada; or a Form D120, Customs Bond.