Lockheed Martin Canada’s SMB Mentoring Program Importing for Small and Medium Businesses

© 2016 LOCKHEED MARTIN CANADA Disclaimer This presentation is intended for informational purposes only and does not constitute an official guideline on the subject. For a complete understanding of the process and rules the official Canadian Government program/site should be consulted: Importing Commercial Goods into Canada © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Importing Goods Goods imported to or Exported from Canada are subject to compliance with certain conditions imposed by the federal and, sometimes, provincial government(s). Canadian Border Service Officers enforce compliance to import/export conditions. Prior to being able to answer questions related to the goods you may wish to import or export, Canadian Border Service Officers require specific information about the good, its purpose and its country of origin. © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Definitions CBSA = Canada Border Services Agency CRA = Canada Revenue Agency Customs Broker = a company or a person licensed by the CBSA who will act on your behalf in clearing goods into Canada Tariff Clarification Number = number used to determine the rate of duty that will be applied to your goods © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Steps to Importing There are six (6) key steps to ensuring you can import goods to Canada. Each of these steps are further broken down on subsequent pages: Prepare to Import Classify your goods Determine Duties and Taxes Shipping, examining and reporting goods Releasing goods Once goods are released © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Prepare to Import Obtain a Business Number Before importing commercial goods, you will need to obtain a Business Number (BN) issued by the Canada Revenue Agency (CRA) for an import account. This import account is free of charge. Visit the CRA’s Business Registration Online (BRO) Identify the goods to be imported Gather as much information as possible about the goods you intend to import. Obtain descriptive literature, product composition information and, whenever possible, product samples. This information will be crucial when it comes time to determine the tariff classification of the goods you wish to import/export. Determine if you want the services of a licensed customs broker to help clear goods into Canada Licensed by the CBSA, custom brokers’ services typically include: Obtaining the release of the imported goods; Paying any duties that may apply to you import; Obtaining, preparing and presenting or transmitting the necessary documents or data to Canada Customs; Maintaining records; and Responding to any CBSA concerns after payment. Payment for these services is established between your organization and your chosen broker. © 2016 LOCKHEED MARTIN CANADA

Prepare to Import Cont’d Confirm goods can be imported to Canada Certain goods are not allowed to be imported into Canada. Consult Memoranda Series D9, Prohibited Importations. Determine if goods are subject to any permits, restrictions or regulations List of most common goods that may require permits/certificates: Reference List for More comprehensive information can be found in: Memorandum Series D19, Acts and regulations of Other Government Departments © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Classify your goods Determine 10-digit tariff classification number Most trading countries use the Harmonized System (HS) as the basis of their classification systems. The first 6 digits are a common identifier across all countries. The following four (4) are unique to Canada. Tariff classification numbers can be determined by consulting the Customs Tariff Determine Duties and Taxes (Import) Determine the method by which you will transport your goods Determine the country of origin of the goods to be imported For imports: not simply the country from which the product was shipped to you. It may also include where individual parts of the product are from, as well as where it was assembled into the final product. Find more information: Memorandum D11, General Tariff Information Requirements for proof of origin can be found in Memorandum D11-4-2, Proof of Origin © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Report Your Goods All commercial goods must be reported to the CBSA. A carrier uses a bar-coded Cargo Control Document (CCD) or the Electronic Data Interchange (EDI) system to report to the CBSA. The following information should be declared on your commercial invoice to expedite your release. Description of goods and quantities Declared value for each item imported Country of origin of each item being imported Canadian 10 Harmonized System (HS) Code for each item being imported Certificate of Origin your goods may be entitled to claim a preferential tariff treatment if they have a valid certificate of origin For more information consult: Certification of Origin Under Free Trade Agreements Goods being returned to Canada after repair, proof of export must be provided to the CBSA for duty and tax relief. For shipments received through Canada Post consult: postal and courier programs. If you are transporting the goods yourself consult: Commercial Hand-Carried Goods (HCG) Release Process. © 2016 LOCKHEED MARTIN CANADA

Obtain release of goods If you elected to use a licensed customs broker, they will complete and file all necessary customs documentation with Canada customs to have your goods released. If you elected to prepare the release and accounting documents yourself, provide the following documentation to customs: B3-3, Canada Customs coding form Form A8A-B, Cargo Control document (provided to you by your carrier.) Form CI1, Canada customs Invoice (or the commercial invoice that contains the data) Import permits, certificates, licenses, or required documents from other government departments and agencies © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA More Helpful Links Canada Border Services Agency (CBSA) Importing Commercial Goods into Canada CRA - Business Registration Online (BRO) CBSA's Licensed Customs Broker List Keep all records pertaining to the import for six years You must keep all records pertaining to your importations for six years following the importation of good(s) in either electronic or paper format. This includes information relating to the quantities received, price paid, the country of origin, vendor, product, and all other related information. © 2016 LOCKHEED MARTIN CANADA