Customs Notice 24-35: Temporary resolution to the alignment of units of measures within the CBSA Assessment and Revenue Management (CARM) system

Ottawa, October 15, 2024

1. The purpose of this Customs Notice is to advise of the temporary resolution taken to ensure the alignment between certain applicable Customs Tariff (Tariff) units of measure and Excise units of measure on CBSA Assessment and Revenue Management (CARM) Commercial Accounting Declarations (CADs).

2. Units of measures are legislated and set within the Tariff at the classification number level (10th digit), as well as in the Excise Tax Act and the Excise Act, 2001 for excisable goods. For the most part, units of measures are aligned within the same dimensions (weight, volume, area, number, etc.), though for some goods, such as cannabis, tobacco and fuel, the applicable units of measure sometimes differ.

3. The misalignment of units of measure for the types of goods mentioned above prevent a CAD from being accepted in CARM. The CBSA is actively working with system developers to implement a permanent solution to rectify this issue.

4. In the interim, in order for the CADs to be accepted and to uphold both the Tariff and Excise legislation, a modification to some of the excise codes affecting Cannabis, Tobacco and Fuel has been made. This interim solution takes effect on October 21, 2024, CARM’s Release 3 date.

5. The following excise codes have been modified to reflect an “Accept Rate” calculation which means that no unit of measures associated to the excise code are to be inserted on the CAD.

Excise Code and description

C01

Federal specified rate – Dried, fresh, plants and plant seeds – flowering material

C02

Federal specified rate – Dried, fresh, plants and plant seeds – non-flowering material

C03

Federal specified rate – Dried, fresh, plants and plant seeds – viable seed

C04

Federal specified rate – Dried, fresh, plants and plant seeds – vegetative cannabis plant

C08

Federal and Provincial specified rate – Dried, fresh, plants and plant seeds – flowering material

C10

Federal and Provincial specified rate – Dried, fresh, plants and plant seeds – non-flowering material

C12

Federal and Provincial specified rate – Dried, fresh, plants and plant seeds – viable seeds

C14

Federal and Provincial specified rate – Dried, fresh, plants and plant seeds – vegetative cannabis plant

E14

Gasoline and Aviation Gasoline – Leaded

E15

Diesel fuel and Aviation fuel, other than aviation gasoline

E22

Tobacco sticks

E37

Package size less or equal to 50g

E38

Package size more than 50g but less than or equal to 100g

E39

Package size more than 100g but less than or equal to 150g

E40

Package size more than 150g but less than or equal to 200g

6. The above modifications mean that it is now the onus of the Trade Chain Partner (TCP) to self-calculate the amount owed in accordance to the most current legislated rates and the quantity of the goods being imported. The rates can be found on the Canada Revenue Agency’s (CRA) website and within Schedule I of the Excise Tax Act.

7. Following the calculation of the amount owed, the TCP will enter on the CAD the amount in the “Net excise tax” field if the E14 and E15 codes apply, or in the “Net excise duty” field if any of the cannabis and tobacco codes apply. That amount will then show in the CAD summary.

Example:

Text version

Duties and taxes
Destination province
Select an option
Net customs duty
0.00
Excise tax code
Select an option
Net excise tax
0.00
Net excise duty
0.00

8. An application for a refund under paragraph 74(1)(c.11) of the Customs Act may be made within four years from the date the goods were accounted for under subsections 32(1), (3), or (5), in respect of goods that were imported.

9. The CBSA recommends that importers request a ruling if they have any doubt as to the correct tariff classification or value for duty of goods. The procedures for obtaining a ruling are outlined in Memorandum D11-11-1: National Customs Rulings (NCR) or Memorandum D11-11-3: Advance Rulings for Tariff Classification.

For more information, call the CBSA Border Information Service (BIS):
Calls within Canada and the United States (toll free): 1-800-461-9999
Calls outside Canada and the United States (long distance charges apply):
1-204-983-3550 or 1-506-636-5064
TTY: 1-866-335-3237
Email: contact@cbsa-asfc.gc.ca

Contact Us at the CBSA website may also be accessed for information.