Warehouses

• When goods enter in Canada they stay in some type of bonded facility until they are Customs cleared.

“Bonded Warehouse” - A place of safekeeping,

(under Customs control), of goods while they await Customs clearance, export, or destruction.

Bonded Warehouse Types

• Highway Frontier Examining Warehouse- Established to hold goods pending

release by C.B.S.A.- At most points of importation

adjacent the Canada- U.S.A. border.

- Goods may not be removed from a highway frontier warehouse unless authorized to do so by Customs

- time limit to clear goods is 40 days

Bonded Warehouses - Types

• Customs Sufferance Warehouses

- Goods traveling in-bond (Not customs cleared) must be delivered to a Sufferance warehouse inland.

- Established for the landing, storage, safekeeping, transfer, examination, delivery and forwarding of imported goods not released from Customs

Warehouses - Sufferance

• Operator must be licensed under Section 24 of the Customs Act & security must be provided.

• Operator keep all records of all imports.

• Time limits: 40 days for most goods 14 days for tobacco, firearms,weapons & liquor

4 days for perishable goods.

Bonded Warehouses

• Long term Storage.• Used to differ payment of duties and taxes• Two types: Public & Private bonded warehouse.• Operator must be licensed under Section 24 of the Customs

Act & security must be provided.

• Operator keeps all records of all imports

Bonded Warehouses – Time Limits • Spare Parts for Aircraft or vessels, oil-drilling

supplies & parts, not intended for Domestic consumption: 15 years

• Liquor, Wine, Beer, and other intoxicating liquors: 5 years

• Goods to be marked. 90 days

• Goods subject to review as to whether they are prohibited or not or to determine if there is a copyright or trademark infringement: Indefinite

• All other goods: 4 years

Bonded Warehouses

• Customs and Warehouse operator must know what is in the warehouse at all times. If audit shows discrepancies, $1000.00 to $25,000.00 fine could result

• “Warehouse” Customs entries are used to enter the goods into the bonded warehouse and, “Ex-warehouse” customs entries used to take goods out of the warehouse.

• If the goods change ownership while in the warehouse, the importer or owner submits a transfer document to inform Customs.

Queens Warehouse

• Queen’s Warehouse

• Established and operated by Customs to store unclaimed, abandoned, or forfeited goods pending their final disposal

• Form E44 moves goods to a Queens warehouse.

• The goods wait 30 days in a Queens warehouse before disposal. If cleared while in Queens, the importer must pay all storage charges before import has access to the goods.

Queens Warehouse

• After 30 days in Queens warehouse the officers decide whether the goods are suitable for sale or destruction.

• Sale price must be able to cover all charges owing.

Bonded Warehouses Entries

• Importers use Bonded warehouses to defer payment of duties & taxes until such a time as the goods are required. This allows duties and taxes not to be tied up, and improves cash flow, especially on high duty or high value items.

• The goods have entered the country but in reality are not Customs cleared. Customs is aware of the goods; knows where they are; but only receive duties & taxes when the goods are taken out, or “Ex-warehoused”

• The rate of duty paid is the duty rate on the date taken out

Bonded Warehouses Entries

• A B3 is used to enter the goods into the warehouse“Warehouse entry” “Type 10”

• A B3 is used to take the goods out of the warehouse“Ex-Warehouse entry” Type “20”

• Each shipment is treated separately.

Bonded Warehouses Entries - Types

• Type 10 – Warehouse entry. Used to enter the goods into the Warehouse

• Type 13 – re-Warehouse of goods after transfer (Type 30)

• Type 20 – Ex-Warehouse for consumption

• Type 21 - Ex-Warehouse for export.

• Type 22 – Ex-Warehouse for ships Stores.

• Type 30 – Transfer of Goods to another Warehouse

Type 10 – Used to enter the goods into the

Warehouse • Clears the goods from sufferance warehouse and

allows transfer to Bonded Warehouse.

• Tell Customs all information, except amount of duties and taxes.

• Additional information: Bonded Warehouse # Time Limit of goods

Quantity, Marks & types of Pkgs must be added to description field.

Type 20 – Ex-Warehouse for consumption

• Clears portion the importer wishes to take out of Bonded Warehouse.

• Tells Customs all information, and amount of duties and taxes, of the goods being taken out of bond.

• Additional information: Bonded Warehouse # Previous Transaction

#. Quantity of goods taken out.

Warehouse Entries

• Importer/Broker keeps count of items remaining in Bonded Warehouse for each shipment.

• The records must match C.B.S.A.’s records.

• When ex-warehousing remainder of goods in shipment, must indicate “Final ex-warehouse transaction”.