E400B – Application for Licence to Operate a Customs Highway Sufferance Warehouse

Introduction

The application package consists of the application form E400 and schedules A through D. The application form E400 as well as all schedules must be completed in detail and submitted in exact triplicate, together with all required documentation by the closing date for the receipt of applications. Applications should be forwarded to the address of the Canada Border Services Agency (CBSA) office indicated in the public call for applications.

Applications and/or additional information postmarked after the closing date for receipt of applications will not be eligible for consideration.

Applications not fully completed as to certification, schedules or required documentation will not be recommended for further consideration.

Responsibilities of the Canada Border Services Agency (CBSA)

The CBSA is responsible for the calling of applications for specified locations by way of advertisements, for receiving, analysing and processing applications, and for making recommendations to the Minister of Public Safety.

After licensing by the Minister, the CBSA monitors and controls the ongoing operation of the highway sufferance warehouses.

Responsibilities of the Applicants

Applicants are responsible for:

• Ensuring that they meet all the qualifying criteria for the operation of a highway sufferance warehouse;
• The selection of a suitable site for the highway sufferance warehouse. They are solely responsible for making all the necessary arrangements for the lease, purchase or construction of a suitable building or space and also for the lease or purchase of the land;
• The completion of the application package and the submission of the package together with all required documentation to the CBSA on or before the closing date for the receipt of applications for the site applied for. Registered mail or courier service is recommended;
• The accuracy and full disclosure of all information required in the application package.

The successful applicants may be responsible for the cost of providing full time customs service to the sufferance warehouses.

Application for licence to operate a customs sufferance warehouse

• 1. Application for licence
• 2. Amendment(s) to field(s)
• 3. Company name
• 4. Business Number (BN)
• 5. Head office address
• 6. Postal/Zip code
• 7. Name and title of contact(s)
• 8. Telephone No.

Security information

• 9. Surety bond
• 10. Government of Canada bond
• 11. Other (specify)
• 12. Name and address of guarantee company
• 13. Bond No.
• 14. Amount
• 15. Warehouse address
• 16. Postal code
• 17. Warehouse operator
• 18. Premises Owned by applicant Leased by applicant
• 19. Distance from customs office
• 20. Name of lessor
• 21. Type of goods to be warehoused
  • General merchandise
  • Vaping products
  • Tobacco products
  • Spirits
  • Firearms, weapons, ammunition or prohibited devices Note: Copy of Carrier or Business Licence must be submitted with application.
  • Specific class of goods (specify) Category
• 22. Cargo control document to warehouse
• 23. Canadian point(s) of entry
• 24. Mode of transportation from foreign country to Canada
• 25. Mode of transportation to warehouse
• 26. Number of bays/doors
• 27. Goods are for
  • Clearance
  • Furtherance
  • Export

I/We hereby certify that all information provided with this application is true and should I/we be granted a licence to operate a customs sufferance warehouse, I/we will conform with all the provisions of the customs and excise laws and regulations, requirements and procedures for the operation for a customs sufferance warehouse.

• Signature of applicant
• Title
• Date

Do not use this area

• Premises examined
  • Meets requirements / Does not meet requirements
  • Recommended for approval / Not recommended for approval
  • Remarks
  • Authorized signature
  • Date
• Approved (Licence No.) / Not approved
  • Authorized signature
  • Date
  • For Minister of Public Safety
  • Date

Note: This does not constitute a valid licence.

Instructions

Field 1 Indicate with a checkmark if the application is for an original licence.

Field 2 Indicate amendments by referring to field numbers.

Field 3 The legally registered name of the company as shown on the security posted and, in the case of limited companies, as shown on the corporate seal.

Field 4 The Business Number (BN) is a unique 9-digit number and the standard identifier for businesses, provided by the CRA. A BN can be obtained here.

Fields 5 and 6 The full mailing address of the corporate head office including the postal or zip code. This address will be used for all correspondence concerning the application, and, after authorization is granted, all correspondence concerning the operations of the company.

Fields 7 and 8 Provide the name, title, and telephone number of the person(s) who should be contacted in regards to the general operations of the company. If the address(es) differs from the head office address, provide the address(es). Use an additional page if necessary.

Security information

Field 8 Indicate with a checkmark if a surety bond from a guarantee company or financial institution is posted as security.

Field 9 Indicate with a checkmark if Government of Canada bonds are posted as security. Where an applicant has chosen to submit Government of Canada bonds, Form Y76 is to be completed and submitted with the bonds and this application. Form Y76 may be obtained from any customs office.

Field 10 Indicate with a checkmark if security other than a surety or Government of Canada bond is posted. Identify the type of security being posted, i.e., cash or certified cheque.

Field 11 Indicate with a checkmark if security other than a surety or Government of Canada bond is posted. Identify the type of security being posted, i.e., cash or certified cheque.

Field 12 When surety bonds are posted as security, provide the full, legally registered name of the guarantee company or financial institution which issued the bond. Where applicable, provide the head office address of the guarantee company or financial institution. If not known, leave blank.

Field 13 Where applicable, indicate the bond number of the surety bond.

Field 14 Provide the amount of security.

Fields 15 and 16 The full mailing address of the warehouse including the postal code.

Field 17 Indicate the name of the company operating the warehouse, if different from field 3.

Field 18 Place a checkmark in the appropriate box.

Field 19 Metres/kilometres or yards/miles.

Field 20 Provide name of lessor, if applicable.

Field 21 Indicate type of goods, i.e., general merchandise, vaping products, tobacco products, spirits, firearms, weapons, ammunition, or prohibited devices, specific class of goods (CSA-LTL, household goods and personal effects, bulk and liquid products, etc.).

Field 22 Indicate type of cargo control document the goods will move on to warehouse, i.e., air waybill, rail billing, highway, or marine bill, freight forwarders' house bills.

Field 23 Indicate point(s) of entry into Canada.

Fields 24 and 25 Indicate applicable mode, i. e., air, rail, highway or marine.

Field 26 Indicate number of bays.

Field 27 Place a checkmark in the appropriate box(es). The completed application in triplicate and supporting documentation must be submitted to the customs office having jurisdiction over the area where the warehouse is located.

Schedule A - Site and Building Proposals

Site

Supply detailed plans drawn to scale showing an overview of the area and the location of:

• Warehouse building;
• Detention compound or parking area.
• Location relative to major transportation routes

Building

• Supply detailed plans of the building drawn to scale indicating the location of:
  • Truck bays and docks;
  • All partitions, doors, windows, stairs, etc.;
  • Customs office and examining area;
  • Telephones, lights and sources of heat in the Customs office and examining area;
  • Computer terminals and transmission lines;
  • Washroom facilities;
  • Handicap facilities.
• Dimensions
  • Building
  • Customs Office
  • Sufferance Area
  • Examination Area
• Type of Construction (steel, concrete, etc.)
• Security Systems/Safety Equipment (locks, windows, sprinkler system, etc.)
• Personnel and Equipment for the handling of goods for examination by Customs
• Other

Note: Indicate if site and building are existing or planned.

Schedule B - Financial Stability

Where there is significant income from operating business(es), applicants should provide a current audited financial statement with an auditor's report prepared by a chartered accountant. For all other applicants the following should be completed and audited by an independent chartered accountant and accompanied by the auditor's report.

Statement of net worth of: (Name) as at (Date)

Assets

• Cash
  • $ Cost
  • $ Market Value
• Term Deposits $ $
  • $ Cost
  • $ Market Value
• Accounts Receivable
  • $ Cost
  • $ Market Value
• Marketable Investments
  • $ Cost
  • $ Market Value
• Real Estate Investments
  • $ Cost
  • $ Market Value
• Other Investments
  • $ Cost
  • $ Market Value
• Loans and Notes Receivable
  • $ Cost
  • $ Market Value
• Personal Property
  • $ Cost
  • $ Market Value
• Pension Plan Contributions and Cash Surrender Value of Life Insurance
  • $ Cost
  • $ Market Value
• Fixed Assets
  • $ Cost
  • $ Market Value
• Other Assets
  • $ Cost
  • $ Market Value
• Total Assets
  • $ Cost
  • $ Market Value

Liabilities

• Accounts Payable and Accrued Liabilities
  • $ Cost
  • $ Market Value
• Bank Overdraft
  • $ Cost
  • $ Market Value
• Bank Loans
  • $ Cost
  • $ Market Value
• Other Loans
  • $ Cost
  • $ Market Value
• Mortgage Loans
  • $ Cost
  • $ Market Value
• Income Tax (Instalments) Payable
  • $ Cost
  • $ Market Value
• Other Liabilities
  • $ Cost
  • $ Market Value
• Total Liabilities
  • $ Cost
  • $ Market Value

Net Worth (Shareholders' Equity in the case of a corporation)

• Total Assets Less Total Liabilities
  • $ Cost
  • $ Market Value

Contingent Liabilities to Others

• Guarantees Outstanding
  • $ Cost
  • $ Market Value
• Potential Lawsuits or Financial Claims
  • $ Cost
  • $ Market Value
• Guarantees or Financial Commitments Obtained from Others
  • $ Cost
  • $ Market Value

Total Capital to be Contributed or Invested

• $ Cost
• $ Market Value

Additional Loans, Advances or Equity Contributions that would and could be made to the sufferance warehouse, if required, over and above the initial required Share Capital Contributions

• $ Cost
• $ Market Value

Statement of Net Worth

Net Income (Loss) After Expenses

• Business, Farming, Fishing or Professional Income — Net
  • Current Year Forecast
  • 3 Prior Years
• Employment Income — Net
  • Current Year Forecast
  • 3 Prior Years
• Pension and Annuity Income — Net
  • Current Year Forecast
  • 3 Prior Years
• Rental and Property Income — Net
  • Current Year Forecast
  • 3 Prior Years
• Interest Income
  • Current Year Forecast
  • 3 Prior Years
• Dividend Income
  • Current Year Forecast
  • 3 Prior Years
• Other Investment Income (capital gains and losses)
  • Current Year Forecast
  • 3 Prior Years
  • Other
  • Current Year Forecast
  • 3 Prior Years
• Total
  • Current Year Forecast
  • 3 Prior Years

Gross Revenues Before Expenses Relative to the Above

• Gross Business, Farming, Fishing or Professional Income
  • Current Year Forecast
  • 3 Prior Years
• Gross Rental or Property Income (i.e., gross rent)
  • Current Year Forecast
  • 3 Prior Years

Certification

I/We certify that the information above is a true and accurate representation of my/our net worth, and I/we hereby authorize whatever credit and other checks which may be required to ensure that the above information is true and accurate.

• Signature of Applicant
• Title
• Date

Notes:

Applicants are required to submit corroborating evidence from third parties to substantiate items listed in their statement of net worth.

Applicants are encouraged to provide as much detail as possible to aid in the evaluation of their application.

Schedule C-1 - Employment/business experience

This form should be completed by the applicant or by each of the individuals who will be assuming responsibility for the day to day operations of the customs sufferance warehouse.

• Name
• Date of birth
• Address
• Position or role in the operation of the sufferance warehouse

Current Employment Profile

• Description of your current position or function
• Name of company
• Description of your current position or function
• Type of business
• Position title
• Years in this position
• Profile of company
• Your responsibilities

Describe any experience you have in the following areas:

• 1. In dealing with the Canada Border Services Agency (CBSA)
• 2. In the warehouse industry
• 3. In the transportation industry (e.g. carrier, freight forwarder)
• 4. Other business experience

Schedule D - Pro-forma business plan

Applicants must provide a detailed business plan containing sufficient information for the Canada Border Services Agency (CBSA) to assess the viability of the proposed sufferance warehouse. To this end, the CBSA will require projected volume figures for the number of highway shipments to be received by the warehouse over a three year period. These volumes must be substantiated by corroborating data such as market surveys and letters of intent from potential clients along with an indication as to how the operator intends to capture a share of the market.

In addition to projected volume figures, the applicant must provide a detailed cash flow projection for the same three-year period.

While the application package specifies essential data required for the evaluation process, applicants are encouraged to provide as much information as they feel necessary to support their application.

Projected Volume of Shipments

• Year 1
• Year 2
• Year 3

Detailed projection — yearly cash flow

Receipts

• Storage Charges
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Rental Income
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Other Services
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Total Receipts
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)

Disbursements

• Payroll and Benefits
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Land Rental
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Building Rental
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Equipment Rental
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Advertising
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Licence Fees
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Insurance
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Property and Capital Taxes
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Property Maintenance
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Equipment Maintenance
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Bank and Loan Charges
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Legal and Audit
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Utilities and Fuel
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Office Expenses
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Telephone
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• All Other Expenses
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Total Disbursements
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)

Cash Flow

• Surplus (Deficit)
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Beginning Cash Balance
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)
• Ending Cash Balance
  • Year 1 ($000)
  • Year 2 ($000)
  • Year 3 ($000)

Date modified:

2023-01-10