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Memorandum D17-4-0: Courier Low Value Shipment Program

ISSN 2369-2391

Ottawa,

This document is also available in PDF (497 KB)

This memorandum outlines the policies and procedures relating to the transportation, reporting, release, and accounting of goods imported into Canada by couriers authorized under the Canada Border Services Agency’s (CBSA) Courier Low Value Shipment (CLVS) Program.

Plain language summary

Target audiences: Couriers; customs brokers; anyone importing eligible commercial and casual goods.
Key content: Overview of the CLVS Program; goods eligible for import under the program; eligibility requirements for participants; report, release, and post-release requirements; accounting; compliance verification and record-keeping requirements.
Keywords: Courier Low Value Shipment Program, commercial goods, casual goods, cargo/release list, low value shipment threshold, CARM.

On this page

Updates made to this D-memo

This memorandum has been revised to:

Definitions

1. In this memorandum, the following definitions apply:

Administrative Monetary Penalty System (AMPS)
a system whereby the CBSA issues monetary penalties to commercial clients for violating the CBSA’s trade and border legislation. The purpose of AMPS is to provide the Agency with a means to deter non-compliance by its clients and create a level playing field for all Canadian businesses.
Authorized person
a person who has obtained an authorization pursuant to subsection 3(3) of the Persons Authorized to Account for Casual Goods Regulations.
Business number
the unique number assigned to a person by the Minister of National Revenue.
Cargo control document (CCD)
a manifest or other control document that acts as the record of a shipment entering or exiting Canada (e.g., air waybill, A8A(B)).
Cargo control number (CCN)
a number assigned to a transport document. Uniquely identifies cargo detailed on a cargo submission. Consists of the carrier code followed by a unique reference number assigned by the carrier/representative and cannot contain spaces. Its first four characters are the CBSA-approved carrier code.
Cargo/release list (CRL)
single detailed record of shipments used in place of individual cargo control and release documents.
Carrier
a person involved in international commercial transportation who reports cargo to the CBSA and/or who operates a conveyance used to transport specified goods to or from Canada.
Carrier code
as stated in the Customs Act, the unique identification number issued by the Minister either under subsection 12.1(4) or before the coming into force of that subsection.
Casual goods
any goods imported into Canada other than goods imported for sale or for any commercial, industrial, occupational, institutional or other like use.
CBSA Assessment and Revenue Management (CARM)
a cloud-based application designed to assess and collect duties and taxes on commercial goods imported into Canada.
Commercial goods
any goods that are or will be imported into Canada for sale or for any commercial, industrial, occupational, institutional or other like use.
Conveyance
any vehicle, aircraft or water-borne craft or any other contrivance that is used to move persons or goods.
Conveyance reference number (CRN)
a unique reference number given by the conveyance operating carrier (COC) to the CBSA to a certain journey or departure of a means of transport.
Courier
a commercial carrier that is engaged in scheduled international transportation of shipments of goods other than goods imported as mail.
Courier Imports Remission Order (CIRO)
conditions under which a remission may be granted on customs duties, sales and excise taxes on certain imported goods transported into Canada by courier.
Customs Self-Assessment (CSA)
a CBSA program designed to simplify import border requirements for low-risk, pre-approved importers, carriers and registered drivers.
Deconsolidation
a process whereby a consolidated shipment is divided into individual shipments consigned to various consignees.
Designated officer
the Deputy Minister or a Director General of the CBSA.
Diplomatic bags
packages bearing visible external marks attesting to their character as diplomatic bags or diplomatic pouches. Includes consular bags or consular pouches.
Flying trucks
air cargo that physically arrives in Canada on a highway conveyance, and moves on the bonded air carrier’s waybill.
High-value shipment (HVS)
goods having a value for duty exceeding CAD $3,300.
Low-value shipment (LVS)
goods having a value for duty not exceeding CAD $3,300.
Partners In Protection (PIP)
a cooperative program between private industry and the CBSA aimed at enhancing border and trade chain security.

Guidelines

General

2. The Courier Low Value Shipment (CLVS) Program streamlines reporting, release and accounting procedures for qualifying goods imported into Canada by an authorized courier. Goods imported by courier may be released under the CLVS Program on the condition the shipment:

3. Shipments with a value for duty exceeding CAD $3,300 cannot be divided into smaller shipments to qualify for importation via the CLVS Program. The total shipment must be subject to a single transaction.

CBSA Assessment and Revenue Management System

4. Effective , the CBSA Assessment and Revenue Management (CARM) system will become the official system of record that commercial importers and other trade chain partners will use to account for imported goods and pay for duties, including taxes, owing on the goods. Additionally, the CARM Client Portal (CCP) will become the Agency’s centralized system of record for trade chain partners to register their CBSA account and enroll in the various CBSA programs (e.g., Importer, Release Prior to Payment (RPP), etc.).

5. Commercial importers must register their business in the CCP and post financial security to obtain RPP privileges to import goods via the CLVS Program. Importers working with licensed customs brokers must delegate authority to their customs broker authorizing the broker to conduct business with the CBSA on the importer’s behalf. For more information relating to financial security requirements and the (RPP) program, refer to Memorandum D17-5-2: Financial Security for Release Prior to Payment.

Goods regulated by other government departments

6. Goods that are prohibited, controlled or regulated by an Act of Parliament cannot be imported via the CLVS Program. For example, regulated Health Canada products, such as prescription drugs and food, plant and animal products, cannot be imported via the CLVS Program. For further information on OGD-regulated products, please consult D memoranda Series D19: Acts and Regulations of Other Government Departments.

7. Despite the general exclusion of other government department (OGD) goods in the CLVS Program, the following goods are permitted in the Program:

8. The importation of alcohol and tobacco for personal use only may be facilitated by a CLVS Program participant where an agreement exists between the CBSA and the relevant province/territory. For more information on casual importations of alcohol and tobacco, refer to Memorandum D2-3-6: Non-commercial Provincial Tax Collection Programs.

9. Please note that commercial shipments of intoxicating liquors do not qualify for importation to Canada under the CLVS Program. For more information, refer to Memorandum D3-1-3: Commercial Importation of Intoxicating Liquors.

Diplomatic bags

10. Due to the requirements outlined in the Foreign Missions and International Organizations Act, diplomatic bags and mail are not eligible for importation in the CLVS Program and must be processed in the regular commercial stream. For information regarding the importation of Canadian diplomatic bags, refer to Memorandum D21-1-1: Customs Privileges for Diplomatic Missions, Consular Posts and Accredited International Organizations (Tariff Item No. 9808.00.00).

Former residents returning to Canada

11. Personal effects imported under the provisions of tariff item no. 9805.00.00 are ineligible for importation in the CLVS Program. These goods must be accounted for on Form BSF18: Personal Effects Accounting Document. For more information regarding the importation of personal effects, refer to Memorandum D2-3-2: Former Residents of Canada—Tariff Item No. 9805.00.00 and Memorandum D17-1-3: Casual Importations.

Courier Low Value Shipment Program authorization and requirements

Program application process

12. Please refer to the CBSA website for more information about the CLVS Program application process.

Eligibility requirements for participants

13. Couriers are eligible to participate in the CLVS Program provided they meet and maintain the following requirements:

  1. be a bonded carrier under the appropriate mode of transportation, in accordance with D memoranda Series D3: Transportation;
    1. as per the definition of carrier, freight forwarders (8000 carrier code series) are not engaged in international commercial transportation. As such, freight forwarders are not admissible to the CLVS Program unless they acquire a bonded carrier code in the appropriate mode of transportation.
  2. be a resident company of Canada; the courier must have a physical presence and a place of business in the country;
  3. be an authorized Partners in Protection (PIP) member as a carrier under the appropriate mode of transportation; in addition, CLVS shipments must be transported by bonded and approved PIP carriers in the appropriate mode of entry;
  4. registered in the CARM Client Portal;
  5. hold security in the form of Release Prior to Payment (RPP) bond required for couriers importing casual goods as per section 3(1)(b) of the Persons Authorized to Account for Casual Goods Regulations and section 7.3(b) of the Accounting for Imported Goods and Payment of Duties Regulations.
  6. possess a sufferance warehouse license, or utilize an existing sufferance warehouse for the release and examination of CLVS goods. More information may be found in Memorandum D4-1-4: Customs Sufferance Warehouses.
  7. utilization of a qualifying courier proprietary system:
    1. the courier will authorize the CBSA use of its proprietary system for report, release and risk assessment purposes; and
    2. the courier’s proprietary system must meet the CBSA’s security and operational requirements; and
    3. employees administering the courier’s proprietary system are subject to a CBSA personnel security screening.
  8. maintain a high degree of administrative control over expedited shipments through the use of internal security, logistics, and tracking technology. Administrative control must be sufficiently integrated at both ends of the service (i.e., pick-up to delivery) so that the courier can exercise a high degree of control over the shipments, particularly in regard to the reliability of information supplied for customs purposes;
  9. offer a service to the public under advertised, reliable, timely delivery on a door-to-door basis;
  10. ability to transmit advanced commercial information (ACI) for shipments that are not eligible for the CLVS Program, in accordance with the D memoranda D3 Series: Transportation;
  11. authorization to participate in the Program has not been cancelled within the previous 12 months.

Eligibility requirements for sub-process participants

14. Couriers solely involved in the importation of casual goods from CBSA-approved online retailers in the United States (U.S.) may be approved for participation in the sub-program. Applicants/participants must meet and maintain the above-noted CLVS Program eligibility requirements, with the exception of using a proprietary system (refer to paragraph 13(g)) and administrative control over shipments (refer to paragraph 13(h)).

15. In addition, couriers involved in the importation of casual goods from approved U.S. online retailers must:

  1. email a listing of the U.S. online retailers that will be its clients to the CLVS Program at lvs-efv@cbsa-asfc.gc.ca;
  2. email a link to U.S. online retailers website to the CLVS Program at lvs-efv@cbsa-asfc.gc.ca;
  3. provide a list by email at lvs-efv@cbsa-asfc.gc.ca of the goods the participant will be importing from the website; and
  4. advise the CLVS Program monthly by email at lvs-efv@cbsa-asfc.gc.ca if additional U.S. online retailers are subsequently added to its client list.

Withdrawal from the Courier Low Value Shipment Program

16. Couriers may withdraw their application or participation from the CLVS Program at any time. Couriers must do so by informing the CLVS Program in writing electronically to: lvs-efv@cbsa-asfc.gc.ca. The notice must be submitted by the authorized signing officer of the business. Once the carrier has submitted the withdrawal, he or she will receive an electronic written confirmation of withdrawal from the CLVS Program.

17. An application or CLVS authorization that has been withdrawn will not be reinstated and a full reapplication will be required in order to be reconsidered for participation in the Program.

Suspension from the Courier Low Value Shipment Program

18. The CBSA may suspend a CLVS participant's authorization to participate in the Program if the participant is in contravention of any related legislative, regulatory or policy requirements.

19. If a decision has been made to suspend a CLVS participant’s authorization, the participant will be given written notice of the decision and the reasons for the decision.

20. Suspension of a CLVS authorization will result in an interruption of all program-related benefits including the use of expedited clearance process, the CLVS beneficial accounting option (section 7.4 of the Accounting for Imported Goods and Payment of Duties Regulations), and revenue reporting and payment.

21. The CLVS participant may have an opportunity to correct the matter that gave rise to the suspension. If the correction has been made, the CLVS participant’s authorization may be reinstated. If it is not possible for the CLVS participant to make the required correction within a period specified by the CBSA, the participant’s authorization will be revoked.

Revocation of Courier Low Value Shipment Program participant authorization

22. The CBSA may revoke a CLVS Program participant's authorization to participate in the program if the participant:

  1. requests in writing that the authorization be revoked;
  2. is bankrupt;
  3. makes a misrepresentation in obtaining the authorization;
  4. makes a misrepresentation as an authorized person in business dealings with an importer, an importer’s agent or a representative of the Government of Canada;
  5. fails to comply with any Act or Regulation that prohibits, controls or regulates the importation of goods into Canada; or,
  6. fails to comply with program regulations and requirements.

23. Once a decision has been made to revoke a CLVS authorization, the participant will be given notice of the decision and the reasons for decision.

24. Revocation of a CLVS authorization will result in the removal of all CLVS Program-related benefits, including the use of expedited clearance process, consolidated accounting option, and revenue reporting and payment. For more information regarding authorization of couriers, refer to Persons Authorized to Account for Casual Goods Regulations.

Notification of changes

25. An authorized person must notify the CBSA of any change in the participant's CLVS profile (i.e., information provided during the application process), such as business office address, legal or business name, and/or the ownership of the business. This notification must be provided within two weeks after the change. Notification of changes are to be sent to the CLVS Program by email to: lvs-efv@cbsa-asfc.gc.ca.

Cost recovery

26. Cost recovery or special service charges may be assessed where a CLVS Program participant requests the release of CLVS shipments outside the authorized hours of service and/or area(s) served by a customs office. For more information on special services, please refer to Memorandum D1-2-1: Special Services.

Report and release

Advance Commercial Information/eManifest requirements

27. CLVS participants must report all shipments to the CBSA in accordance with the Customs Act, associated regulations, and policy.

28. The conveyance must be reported electronically, as per the Reporting of Imported Goods Regulations. For additional information concerning Advance Commercial Information (ACI)/eManifest requirements, refer to the D memoranda Series D3: Transportation.

29. Shipments imported via the CLVS Program are exempt from pre-load/pre-arrival cargo requirements as per the modal D memoranda Series D3: Transportation.

30. For CLVS shipments arriving via air mode as part of a mixed load (i.e., CLVS & HVS shipments onboard), refer to the Courier LVS/HVS requirements section of Memorandum D3-2-1: Air Pre-Arrival and Reporting Requirements.

31. If the CLVS participant identifies a shipment which does not qualify for the CLVS Program prior to arrival, a complete ACI/eManifest cargo transmission is required for that specific shipment.

32. If the CBSA or CLVS participant identifies a shipment which does not qualify for the CLVS Program post-arrival, these shipments must be removed from the program (refer to Rejects: Removal of ineligible shipments below for details about the shipment removal process). An ACI/eManifest cargo transmission is not required, however, the participant must issue individual paper cargo control documents.

Cargo/release list

33. The cargo/release list (CRL) is to be used in place of individual cargo control and release documents. The CRL must be submitted by the CLVS participant. The CRL must contain true, accurate, and complete information, including a detailed description of the shipments. The CRL must be submitted to the CBSA port of release (not the port of entry) within the following modal timeframes:

34. The marine mode of transportation is excluded from the CLVS Program.

35. The CRL must contain the following conveyance information in the heading:

36. The following information must also be shown for each shipment on the CRL:

37. The CLVS Program participant must provide a breakdown on the CRL of all shipments for which release under the Courier Imports Remission Order (CIRO) is being requested. To claim the CIRO or the benefit of non-taxable status under Schedule VII to the Excise Tax Act, the separation of the CIRO categories on the CRL is required as follows:

38. For more information on the CIRO, refer to the Courier Imports Remission Order and Memorandum D8-2-16: Courier Imports Remission.

Arrival at port of entry

Highway mode

39. The carrier must submit the conveyance report at the first port of arrival (FPOA) via Electronic Data Interchange (EDI) quoting the ACI cargo exemption code for CLVS shipments.

Air mode

40. The conveyance operating carrier (COC) must submit the conveyance report at FPOA via Electronic Data Interchange (EDI). There is no ACI cargo exemption code for CLVS shipments. The following processes must be used for CLVS shipments in air mode.

CLVS shipments only:

Mixed load (CLVS and non-CLVS shipments onboard):

41. A border services officer (BSO) at the port of entry (POE) may request supporting documents, including a copy of the cargo/release list (CRL).

Reuse timeframes: Cargo/release list number

42. The CRL unique identifier number must include the participant’s 4-digit carrier code as the first four digits followed by a unique number assigned by the CLVS participant.

43. The CRL number must not be duplicated for a period of 3 years. The CRL number cannot be used at multiple ports of entry.

44. For reuse timeframe requirements of CCNs and CRNs, please refer to Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods and Memorandum D3-2-1: Air Pre-Arrival and Reporting Requirements.

Split shipments

45. Split shipments are authorized only in Air mode. As indicated in Memorandum D3-2-1: Air Pre-Arrival and Reporting Requirements, all split shipments must be reported by the authorized CLVS participant within the prescribed timeframes. Split shipments are designed to accommodate goods that were manifested as one shipment on a CRL and then split prior to departure due to carrier capacity constraints (e.g., weight capacity). Split shipments may only occur when the following conditions are met:

  1. the shipments must be consigned to the same party;
  2. the shipments must have been accepted by the carrier in the same place of acceptance;
  3. the shipments must be destined to the same CBSA office of destination; and
  4. the shipments must be consigned from the same shipper.

46. All pieces within a shipment must arrive at the destination warehouse before release can occur. If only a portion has arrived, the shipment cannot be released.

Overages

47. The reporting of overages by CLVS participants to CBSA must not constitute a normal/standard business practice.

48. If the CBSA or the CLVS Program participant finds an overage, whether the discrepancy is identified prior to or post arrival, the CLVS participant is required to report any overages to the CBSA as soon as they are discovered. The participant must immediately document these goods on an amended CRL or an overage report.

49. When an overage is discovered, the CLVS participant must proceed with one of the following actions:

50. All copies must be presented to the CBSA office of release for validation and processing. The CBSA will return a validated copy of the overage report to the participant for books and records purposes. Additional information regarding overages can be found in Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods.

Shortages

51. The reporting of shortages by CLVS participants to the CBSA must not constitute a normal/standard business practice.

52. When a shipment reported on the CRL is not on the conveyance, the CLVS Program participant must present a shortage report to the CBSA. Otherwise, all shipments reported to the CBSA on the CRL must be accounted for. Duties and taxes will be assessed on the goods declared on the CRL, unless acceptable evidence of a shortage is presented to the CBSA.

53. When a shortage is discovered at the time of the processing, the CLVS participant must proceed with 1 of the following actions:

54. The party responsible for the payment of the duties and taxes on the shipment must present evidence regarding the shortage. For acceptable evidence of shortages refer to Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods.

55. When a portion of a shipment previously identified as a shortage, on an amended CRL or shortage report, is subsequently forwarded to Canada, the goods must be reported on a new CRL.

56. Additional information regarding shortages can be found in Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods.

Gifts

57. Gifts with a value of CAD $60 or less may be imported via the CLVS Program. For an item to qualify for importation as a "gift" under tariff item no. 9816.00.00, a friend or relative outside Canada must send an item to you personally and include a card or notice indicating that it is a gift. For details on eligibility and policies regarding gift exemptions, refer to Memorandum D2-1-4: Casual Donations—Tariff Item No. 9816.00.00.

58. Gifts and gift baskets imported via the CLVS Program cannot contain any goods subject to OGD requirements (i.e., controlled, regulated or prohibited goods). Any shipment containing products such as alcohol, meat, dairy, pet food, and other regulated food products are ineligible for importation via the CLVS Program. This is not an exhaustive list.

59. CLVS participants may use a CRL exclusively for gifts during the holiday peak period from November 1 to January 8 of the new year.

Trans-border air shipments in highway service (flying trucks)

60. Where air cargo is being transported by a highway carrier, the highway carrier will transmit the ACI conveyance data to the CBSA (within the prescribed highway time frames), quoting the flying trucks cargo exception code. Cargo information must be presented at the FPOA in the form of paper air waybills. No ACI conveyance data is required from the air carrier. For more information on flying trucks, refer to Memorandum D3-2-1: Air Pre-arrival and Reporting Requirements and Memorandum D3-4-2: Highway Pre-arrival and Reporting Requirements.

Movement of shipments to a sufferance warehouse

61. CLVS shipments must be destined to a sufferance warehouse, which has been approved by the CBSA for use by the participant.

62. CLVS shipments move in-bond to the destination sufferance warehouse indicated on the CRL for release and examination purposes. Non-CLVS shipments on the same conveyance require individual CCNs and must be transported to the same sufferance warehouse for deconsolidation.

63. When goods imported via the CLVS Program arrive in Canada at an office other than the office of release, the in-bond movement of the shipments to the office of release is permitted, provided that the entire container or load is moved inland. For greater certainty, deconsolidation to move only part of the load is not permitted.

64. Examinations for health, safety, and security reasons may be conducted at the FPOA. This is not considered deconsolidation of the shipment. Goods must be reloaded and moved to the sufferance warehouse with the CLVS shipment unless an item has been removed as a result of an enforcement action.

65. Shipments processed through the CLVS Program may not be re-manifested from the office of release that is shown on the CRL, unless they are removed from the program.

Release process

66. The CRL may be provided through the courier’s proprietary system, or in paper format for sub-process participants, within specified modal timeframes. In the event that the CLVS Program participant's proprietary system has not yet been authorized for use by the CBSA, the BSO may provide a stamped copy of the CRL to the participant as proof of release by the CBSA. The second copy is retained by the CBSA office.

67. A BSO will review the CRL and notify the participant of shipments that require examination upon arrival at the sufferance warehouse. Shipments that have not been selected for examination are considered released upon arrival at the sufferance warehouse. Shipments may be subject to CBSA intervention up to the time of delivery to the addressee.

68. For casual goods, the CLVS participant must post security with the CBSA to obtain the release of goods from the CBSA before the final accounting and payment of duties and taxes (refer to paragraph 7.3(b) of the Accounting for Imported Goods and Payment of Duties Regulations).

69. For commercial goods, the importer must post security with the CBSA to obtain the release of goods from the CBSA before the final accounting and payment of duties and taxes (refer to paragraph 7.2(b) of the Accounting for Imported Goods and Payment of Duties Regulations).

Examination of shipments

70. The CBSA may choose to examine a shipment for several reasons, including to ensure the goods comply with customs legislation and/or to detect controlled, prohibited, or regulated goods. Shipments selected for examination must be presented without delay to the CBSA in the designated CBSA examination area of the sufferance warehouse for the purposes of admissibility determination. Following an examination, a CBSA officer will either release shipments to the courier for delivery or remove ineligible shipments from the CLVS Program. In cases where prohibited goods are detected, the CBSA will take appropriate enforcement action. Failure to present shipments selected for examination may result in a penalty to the CLVS participant and/or sufferance warehouse operator.

Rejects: Removal of ineligible shipments

71. When ineligible shipments are removed from the CRL, the CBSA will issue Form BSF243: Reject Document Control, and the participant is issued a copy. When a shipment is removed from the CLVS Program, the participant and/or owner/customs broker must:

72. Shipments removed from the CLVS Program are subject to regular commercial stream release and accounting requirements. For additional information, refer to Memorandum D17-1-4: Release of Commercial Goods.

73. When cargo previously reported under the CLVS Program is removed from the CRL (rejected) post-arrival, ACI/eManifest pre-arrival data must not be transmitted to the CBSA.

Post-release

74. In respect of commercial goods imported via the CLVS Program, the participant must provide the importer or the customs broker all release information and supporting documentation for each commercial shipment within two business days after the date of the report (refer to section 7.2(c) of the Accounting for Imported Goods and Payment of Duties Regulations). In accordance with Memorandum D1-8-1: Licensing of Customs Brokers, the customs broker must provide the importer with a receipt containing the details of the transaction that was reported to the CBSA, including the unique shipment number (i.e., tracking number, waybill number) identified on the CRL.

75. Post release, participants are required to provide the CBSA office of release with an electronic copy of the final CRL which the CBSA will retain for the appropriate retention period. The information must be in a format that is manageable for post-release analysis, such as a Microsoft Excel spreadsheet or database. Portable Document Format (.pdf) or picture (.jpeg) file formats are not acceptable.

Accounting for released goods

Casual goods

76. Couriers authorized to participate in the CLVS Program may account for casual goods released in accordance with subsection 32(4) of the Customs Act in lieu of the importer or owner, provided the courier meets the conditions set out in section 3 of the Persons Authorized to Account for Casual Goods Regulations.

77. Casual goods imported by an authorized courier may be released prior to the final accounting and payment of duties, provided the courier has satisfied the conditions set out in section 7.3 of the Accounting for Imported Goods and Payment of Duties Regulations. In addition, only the courier’s designated business number can be used on the Commercial Accounting Declaration (CAD) Type F to account for casual goods imported through the CLVS stream.

Commercial goods

78. Commercial goods imported by an authorized courier may be released prior to the final accounting and payment of duties, provided the importer or owner of the goods has satisfied the conditions set out in section 7.2 of the Accounting for Imported Goods and Payment of Duties Regulations, including providing security via the CARM Client Portal. In addition, only the importer’s business number can be used on the Commercial Accounting Declaration (CAD) Type F to account for commercial goods imported through the CLVS stream.

79. Commercial importers can submit their CAD directly to the CBSA via the CARM Client Portal or they may authorize a licensed customs broker to submit the CAD on their behalf.

80. A customs broker may submit a CAD on behalf of an importer if they have been granted a delegation of authority (DOA) by the importer in the CARM Client Portal (CCP). A CAD will not be accepted from a customs broker without a proper delegation of authority. For more information on using a customs broker and the DOA, refer to Memorandum D1-6-1: Authority to Act as Agent. For the steps on how to delegate authority to a service provider to access the CCP, refer to User Guide: Delegation of Authority.

Documentation and information requirements

81. Goods released under the CLVS Program must be accounted for on a CAD Type F using the CLVS Program classification number “0000999900”, unless a special authority, permit or license applies. In this case, enter the correct classification number indicated in the Customs Tariff. Instructions for completing CAD Type F consolidated accounting documents are found in Appendix A of Memorandum D17-1-10: Coding of Customs Accounting Documents.

82. CLVS participants can consolidate a number of shipments (consist sheets) on a single CAD Type F. The CAD Type F is a monthly summary of the total duties and taxes from these multiple shipments. For commercial goods, only one consolidation method is accepted by Importer business number. As such, there needs to be submission of a separate CAD Type F by Importer business number for each commercial importer. For non-commercial (casual) goods, total consolidation is allowed using the courier’s designated business number.

83. A recap sheet can be requested from the trade chain partner after submission of the CAD Type F for compliance monitoring purposes. The recap sheet captures the header, vendor, and commodity information (plus applicable unique identifiers like AWB #) for accounting submitted using the dummy classification number “0000999900” in lieu of shipment-level details.

84. When using the CAD Type F, the importer/courier/customs broker must manually calculate and populate the duty and tax values, including the provincial sales tax (PST)/harmonized sales tax (HST) value for non-commercial goods. For PST/HST, a new data element to indicate the province of destination of the goods is required. For more information on the coding of customs accounting documents, refer to Appendix A of Memorandum D17-1-10: Coding of Customs Accounting Documents.

85. Supporting documentation (e.g., invoices, order in council) is not required when submitting consolidated accounting documents; however, all records must be kept in such a manner as to enable a CBSA officer to perform detailed audits and verifications to obtain or verify the information upon which the calculation of duties was based.

86. The CLVS Program participant or the broker is required to provide the importer with accounting documents, such as a receipt containing the classification of the goods, the transaction number, and a breakdown of the duties and taxes. For additional information refer to Memorandum D1-8-1: Licensing of Customs Brokers.

87. When claiming the benefits of a preferential tariff treatment, importers and customs brokers must ensure they follow the policy guidelines contained in Memorandum D11-4-2: Proof of Origin of Imported Goods and Memorandum D11-4-14: Certification of Origin Under Free Trade Agreements.

Accounting timeframes

88. CLVS participants are required to submit accounting documents for imported goods released under subsection 32(4) of the Customs Act within the accounting timeframes prescribed by the Accounting for Imported Goods and Payment of Duties Regulations.

Shipments released in error under the CLVS Program

89. If shipments are released in error under the CLVS Program, the importer or customs broker must submit a Voluntary CAD (Type V) using the CARM Client Portal. The voluntary CAD must be submitted within 5 business days of release or upon discovery of the error, if more than 5 days have passed.

90. The Voluntary CAD must be accompanied by the corresponding invoice. Failure to comply with these requirements may result in the issuance of an administrative monetary penalty (AMP). Details of penalties involving various late accounting infractions are contained in the Administrative Monetary Penalty System Master Penalty Document. For more information on voluntary disclosure, refer to Memorandum D11-6-4: Relief of Interest and/or Penalties Including Voluntary Disclosure.

91. A Voluntary CAD is also required for high-value shipments, as well as controlled, prohibited, or regulated goods. In the case of controlled, prohibited, or regulated goods, the CBSA will inform the applicable government department of the error.

92. If goods subject to the Export and Import Permits Act are released in error under the CLVS Program, the importer or customs broker should immediately contact Global Affairs Canada (GAC) to verify if the required import permit can be obtained in respect of the goods. When applying for the permit, the importer or customs broker should state "Released in error in the CLVS Program on (release date)" in the "Other Terms and Conditions" field of the permit application.

93. If an accounting document has been submitted for goods released in error, an adjustment to the CAD Type F can be requested following the acceptance of the Voluntary CAD. A request for refund may be made using reason code “R2-74-1-D.Typo.” For more information on how to submit an adjustment request, refer to Memorandum D17-2-1: Adjusting Commercial Accounting Declarations.

Self-accounting for casual goods

94. Persons importing casual goods have the option to self-account and pay any applicable duties and/or taxes at a CBSA customs office without the assistance of a courier or broker. The self-accounting process, however, is a release/accounting option outside the CLVS Program.

95. Importers may make arrangements with the courier in advance of the arrival of the shipment, and the courier will not include the shipment in the CLVS Program. The courier will issue a separate manifest for the shipment, and the goods will be released and accounted for in the regular commercial stream.

96. The goods will be held at the sufferance warehouse approved for use by the CLVS Program until the importer presents satisfactory proof that an accounting package has been submitted to the CBSA.

97. Should a casual importer wish to self-account for their shipment at the time of delivery, they must refuse the shipment and advise the courier they will personally pay any applicable duties and/or taxes at a CBSA office. To self-account the casual importer will need to follow these steps:

98. If duties and/or taxes are due, the CBSA accounting document Form BSF715: Casual Goods Accounting Document must refer to the shipment identifier number on the CRL.

99. Instructions for accounting for casual goods are found in Memorandum D17-1-3: Casual Importations.

Corrections and adjustments

100. To request an adjustment of duties and taxes on casual shipments, refer to Memorandum D6-2-6: Refund of Duties and Taxes on Non-commercial Importations.

101. To request a correction of duties and taxes on commercial shipments before the payment due date, refer to Memorandum D17-1-5: Accounting for Commercial Goods.

102. To request an adjustment or refund of duties and taxes on commercial shipments after the payment due date, refer to Memorandum D17-2-1: Adjusting Commercial Accounting Declarations.

Goods released but not delivered to the importer/owner

103. All goods must be accounted for under section 32 of the Customs Act, including goods that have been released, but not delivered to the importer, and subsequently exported or destroyed under CBSA supervision. Duties and taxes that should have been levied on these goods do not need to be assessed, provided there is a certified copy of Form E15: Certificate of Destruction/Exportation and tariff code “CLVS-0016-1” is used on the CAD Type F. Instructions on how to apply tariff code “CLVS-0016-1” can be found in Appendix A of Memorandum D17-1-10: Coding of Customs Accounting Documents. For more information on proof of export, refer to Memorandum D20-1-4: Proof of Export, Canadian Ownership, and Destruction of Commercial Goods.

Collection of provincial taxes

104. The CBSA and certain provinces have reached agreements for the collection of the harmonized sales tax (HST), provincial sales tax (PST), and tobacco and alcohol taxes on the importation of casual goods.

105. Where an agreement exists between the CBSA and a province, the HST, PST, and provincial alcohol and tobacco taxes must be accounted for on imported casual goods. For more information regarding the release and accounting of alcohol and tobacco, refer to Memorandum D17-1-10: Coding of Customs Accounting Documents and Memorandum D2-3-6: Non-commercial Provincial Tax Collection Programs.

Shipments imported for temporary use

106. If shipments imported for temporary use are released in error under the CLVS Program without the presentation of Form E29B: Temporary Admission Permit, and are subsequently exported, proof that the goods were imported for eligible temporary use, as well as proof of export must be kept on the importer's or customs broker's premises for future compliance verification.

107. If it is discovered that HVS imported for eligible temporary use, including high-value repair shipments, were released in error under the CLVS Program, the importer or customs broker must report the error to the CBSA and be prepared to submit Form E29B: Temporary Admission Permit, accompanied by the corresponding invoice, an explanatory letter and any required security. These documents may be presented at any CBSA office where commercial services are offered. Additional information regarding the Form E29B is available in Memorandum D8-1-4: Administrative Procedures Related to Form E29B, Temporary Admission Permit.

Compliance verification

108. All CLVS Program participants, importers, customs brokers and authorized persons who report and account for shipments released under the CLVS Program are subject to compliance verification by the CBSA. Therefore, all related records of these shipments must be maintained for a period of 6 years following the date of importation.

109. During a compliance verification, the CBSA will verify whether shipments have been properly reported and accounted for by the CLVS Program participant, the importer, the importer's customs broker or by the authorized person. Non-compliance may result in the issuance of penalties to the liable party, as per the AMPS Master Penalty Document, or the suspension or revocation of the courier’s authorization to participate in the CLVS Program.

110. The CBSA requires the following information from participants, importers, customs brokers, and authorized persons to verify compliance:

111. If the results of the compliance verification indicate that there may be instances of undervaluation, incorrect tariff classification, incorrect country of origin or non-payment of the duties, GST/HST and/or PST, the normal provisions of re-determination under section 59 of the Customs Act will apply. Interest may be charged on any amounts payable to the CBSA.

Action plans

112. Action plans are administered by the CBSA to resolve specific incidents of non-compliance related to relevant legislation, regulations, and policies. Action plans are created to formally document identified compliance issue(s) and provide a means and support to resolve the issue(s).

113. An action plan may be instituted for a period of up to 6 months. The CLVS participant can make a request in writing if additional time is required to address or correct the issue(s). Extension requests and action plan inquiries can be made to:

Postal & Courier Program Unit - Compliance Team,
cpc-csmsp@cbsa-asfc.gc.ca
Subject: Attn: Manager-CLVS participant name, case number

114. The CLVS Participant should also contact the manager of the Carrier, Courier and Postal Compliance Unit if they are of the view that an action plan is not warranted.

115. It is important to note that an action plan cannot be appealed, as it is an interim measure to aid a client with compliance issues.

116. If a client does not follow through with the required corrective actions, their CLVS participation may be suspended or cancelled.

Records

117. Records pertaining to the accounting for casual goods must be kept by the authorized person for 6 years, in accordance with the Persons Authorized to Account for Casual Goods Regulations. The records must include documentation relating to the origin, importation and value for duty of the goods. For more information, refer to Memorandum D17-1-21: Maintenance of Records in Canada by Importers.

118. Records related to the conveyance and cargo transmission and report upon arrival must be kept for a period of 3 years commencing on January 1 of the calendar year following the calendar year during which the cargo/conveyance referenced in the records were transported, as per subsection 7(5) of the Transportation of Goods Regulations.

119. In addition to the records retention of conveyance and cargo transmission, importer records pertaining to the importation of commercial goods released under the CLVS Program must be kept for a period of 6 years following the importation of the goods. For more information, refer to Memorandum D17-1-21: Maintenance of Records in Canada by Importers.

Appendix: Cargo/release list

(CLVS participant i.e., courier company name)

Inbound to: City, Canada

For each shipment:

References

Consult these resources for further information.

Applicable legislation

Related D memoranda

Superseded D memorandum

D17-4-0 dated

Issuing office:

Postal and Courier Programs Unit
Program and Policy Management Division
Commercial Program Directorate
Commercial and Trade Branch

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