Cusma Pdf Form

[Abigael Ortyl]

Archivedinformation is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. For updated information on the new Canada-United States-Mexico Agreement (CUSMA) and it's benefits, refer to CUSMA and small and medium-sized enterprises.

Inaccurate or incomplete documentation is the most common reason for export shipments having trouble entering the United States. A little extra time spent on your paperwork will contribute a great deal to problem-free customs clearance.

Although U.S. customs regulations are complex and often different from those used by Canada, shipping goods across the border can be relatively uncomplicated if you are well prepared for it. Some extra time spent on your paperwork will contribute a great deal to problem-free customs clearance, since inaccurate or incomplete documentation is the most common reason for export shipments to have difficulty with U.S. customs.

There are two major ways in which your goods can enter the United States: as a formal entry, also called a commercial entry, or as an informal entry. Most exports enter the U.S. as a formal entry, for which U.S. customs regulations require the use of a U.S. customs broker. Informal entry does not require a broker if the shipment is accompanied by the exporter, or if the consignee comes to the port of entry to collect it.

As well as meeting the U.S. Customs requirements for formal or informal entry, your exports may have to abide by regulations established by other U.S. agencies. The Federal Trade Commission, for example, is responsible for enforcing import regulations for clothing and textiles, which are subject to more controls than some other goods. As another instance, the U.S. Food and Drug Administration maintains guidelines for the labelling of food and beverage products; if your product falls into these categories, you may need additional documentation such as a Certificate of Hygiene, a Certificate of Free Sale or a Certificate of Inspection. Your U.S. customs broker, as well as the agencies in question, can help you understand and deal with these special requirements.

Your U.S. customs broker will act on your behalf to clear your goods through customs and deliver them to their final destination. In the United States, customs brokers are licensed, bonded and regulated by U.S. Customs and Border Protection.

To find a U.S. customs broker, check the website of the National Customs Brokers & Forwarders Association of America (NCBFAA) at www.ncbfaa.org. The site has a searchable membership directory that will direct you to the websites and contact information of NCBFAA members.

Alternatively, you can find a broker at a particular port of entry by visiting the Ports of Entry page on the U.S. Customs and Border Protection site at

www.cbp.gov/xp/cgov/toolbox/contacts/ports. Select the port of entry and scroll down the page to the link for its brokers list.

U.S. Customs requires formal entry for any shipment valued at more than US$2,500.00, and you must use a customs broker to clear such shipments. Formal entry also requires a broker for a shipment of any value if it consists of controlled goods (that is, goods requiring either Canadian or U.S. permits or licenses to cross the border).

We examined Canadian export permit requirements earlier, in Section 8.5, "Controlled, prohibited and regulated exports." On the U.S. side, licences or permits are required for the import of the following products and commodities:

The U.S. Bureau of Customs and Border Protection provides a pamphlet called Importing into the United States: A Guide for Commercial Importers. It covers the entry process, invoice requirements, duty assessment and much more. To download a PDF copy of the document, go to the CBP Trade Publications page at www.cbp.gov/xp/cgov/newsroom/publications/trade/ and scroll to the "Importing into the United States" link.

Also known as a business invoice, this must exactly represent the content and value of your shipment. If you just happen to toss in a few promotional items at the last moment and they are not on the invoice, the customs inspector may hold your shipment at the border until you clarify what is going on. Also, never declare goods, such as promotional items or samples, as being of "No commercial value." U.S. customs officials may decide to impose a value of their own or may even refuse entry of the goods.

Yet one more invoice tip: When using part numbers, provide a written description that will help classify the goods for customs purposes. And be sure that each invoice also shows the total amount charged to the buyer for the shipment; never use the net value.

Also known as the Customs Assigned Number, this is used by U.S. Customs to establish bond coverage, release and entry of merchandise, liquidation, the issuing of bills and refunds, and drawback processing. Your customs broker can help you obtain the number or you can get it yourself by submitting Form 5106 to U.S. Customs, available at www.forms.cbp.gov/pdf/CBP_Form_5106.pdf.

This is used for time-sensitive shipments, such as fresh produce, and replaces the entry manifest. The carrier is responsible for submitting this to U.S. Customs before the shipment arrives at the port of entry.

Your goods are considered an informal entry if their value is less than US$2,500.00, and if they are not controlled goods. As we also mentioned earlier, informal entry does not require a broker if the shipment is accompanied by the exporter, or if the consignee comes to the port of entry to collect it.

You should ensure with your carrier that the importer of record will be notified of your shipment as soon as it arrives at U.S. Customs. The importer of record is responsible for filing all entry documents with the authorities at the port of entry. When exporting from Canada to the U.S., the importer of record can be the exporter (you), your consignee/buyer, or your U.S. customs broker.

If you want to defer payment of duties and processing fees until you have completed the sale of your goods, you can have them sent to a bonded warehouse. Duties and fees are not levied until the goods leave the warehouse.

Once customs officials have decided that the shipment and its documentation are in order, the goods are allowed to proceed into the U.S. The broker then determines the duties or fees payable and files this information, along with any payment due, with U.S. Customs. After official appraisal of the goods, the entry is "liquidated," meaning that the final computation of duties and/or drawback is complete.

If you are importing goods in order to re-export them to the U.S., you might be able to take advantage of the Duty Deferral Program, administered by the Canadian Border Services Agency (CBSA). The program relieves or defers payment duties if the goods are in transit through Canada and will not be sold here.

This program enables eligible companies to import goods without having to pay customs duties, as long as they export the goods after importing them. For more information, refer to Memorandum D7-4-1, "Duty Deferral Program," at cbsa-asfc.gc.ca/publications/dm-md/d7/d7-4-1-eng.html. For further information on the program, refer to www.cbsa-asfc.gc.ca/import/ddr-red/tab1-eng.html.

A bonded warehouse is a storage facility operated by the private sector and regulated by the CBSA. In such a warehouse, you may store goods without having to pay duties and taxes. This could be beneficial if you are planning to import goods only for the purpose of exporting them. For more information, refer to Memorandum D7-4-4, "Customs Bonded Warehouses," at www.cbsa-asfc.gc.ca/publications/dm-md/d7/d7-4-4-eng.html. For further information on the program, refer to www.cbsa-asfc.gc.ca/import/ddr-red/tab9-eng.html.

You will not normally be penalized for clerical errors or omissions, but negligence or gross negligence, as defined by U.S. Customs, can draw penalties of up to four times the duty or 40 percent of the value of the goods.

U.S. Customs levies severe penalties for fraud or negligence, so you have be sure that the information you give about your exports is accurate and complete. If you discover errors after your goods have entered the U.S., notify your customs broker immediately; you may be able to avoid penalties through prior disclosure of the mistake (in other words, before U.S. Customs detects it).

You will not normally be penalized for clerical errors or omissions, but negligence or gross negligence, as defined by U.S. Customs, can draw penalties of up to four times the duty or 40 percent of the value of the goods. The penalty for outright fraud, such as false valuation, can be the entire value of the shipment or seizure of the shipment. Again, your best defence against such problems is to be very thorough and precise in preparing your documentation.

This form of USMCA certification and the content of this website are based in part on guidance issued by the U.S. Customs and Border Protection (CBP) found in the USMCA Interim Implementing Instructions published April 20, 2020. CBP advises that the USMCA Interim Implementing Instructions are informational, for advisory purposes only, and is subject to further revision. Accordingly, FOCUS reserves the right to amend its current USMCA certification form and contents of this website in accordance with any future changes, whether reflected in the USMCA Interim Implementing Instructions, the Harmonized Tariff Schedule of the United States, or any domestic or uniform regulations or guidance issued by CBP or any other U.S. government department or agency putting into effect these revisions. Any user of the USMCA certification form and this website is solely responsible for its use and for monitoring to ensure awareness of any revisions.

For purposes of obtaining preferential tariff treatment, this document must be completed legibly and in full, and be in the possession of the importer at the time the declaration is made. This document may be completed by the importer, exporter, or producer.

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