Transport Canada Changes Vehicle Pre-Clearance List

Transport Canada (TC) authorizes a streamlined process to certain commercial importers who import vehicles that are new, have never been owned or licensed, and are certified by the manufacturer to comply with the Canadian Motor Vehicle Safety Standards (CMVSS). This allows Transport Canada and Canada Border Service Agency (CBSA) to screen shipments with minimal inspection and scrutiny. These authorized importers are listed on the Transport Canada web site as follows:

• Appendix F program authorized importers - Pre-clearance List of Canadian Companies Authorized by Transport Canada to Import New CMVSS without Registrar of Imported Vehicles (RIV) Inspection or Form 1
• Appendix G program authorized importers - Search for Canadian Companies Authorized by Transport Canada to Import New CMVSS without Registrar of Imported Vehicles (RIV) Inspection however a Form 1 is required.

Importers using the Designated Importer (DI) as their importer of record on incoming Customs transactions (B3) need to be aware of an important update issued by Canada Border Services Agency on April 9, 2014.

Although for a period of time, importers have been identifying the Designated Importer on the Customs Coding Form B3, this update will now require that the importer of record named on the B3 must be the same as the importer of record on the CBSA release documentation.

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How This Transport Canada Update Affects Importers

Recreational vehicle importers should no longer use the name of a *Designated Importer as the importer of record for Customs purposes. It is important that importers familiarize themselves with this update to avoid delays at the border due to non-compliance.

A sample of a completed Form 1 for an importer that is associated with an Appendix G Designated Importer can be found here.

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How This Transport Canada Update Affects Carriers

Carriers are also affected by this change, as they no longer need to provide more than one Cargo Control Number (CCN) if the shipment contains both a recreational unit as well as parts.

Customs Notice 14-008: Appendix F and Appendix G Authorized Importer Programs as Defined in Memorandum D19-12-1, Importations of Vehicles

The CBSA Customs notice below provides further information regarding compliance with the related regulation.

1. This customs notice is for the attention of Appendix F and Appendix G Authorized Importers and their customs brokers who are involved in the importation of pre-authorized commercial vehicles and listed under Transport Canada's (TC) Appendix F Authorized Importers and Appendix G Authorized Importers programs as defined in Memorandum D19-12-1, Importation of Vehicles.
2. This customs notice is a reminder that the Canada Border Services Agency (CBSA) importer of record named in boxes 14, 16 and/or 17 on the Vehicle Import Form - Form 1 from TC must be the same as the importer of record named on the CBSA release documentation.
3. As per Memorandum D17-1-4 paragraph 43 (4) (ii) the name of the importer of record must correspond with the name under which the company registered for its RM account. Furthermore, the importer at the time of interim accounting must be the party identified as the importer at the time of final accounting.
4. An importer designated by a foreign vehicle manufacturer for the purpose of TC's pre-authorized program and listed under Appendix F or Appendix G Authorized Importer programs, is not considered the importer of record for CBSA release purposes; unless they are the true importer of record as outlined in D17-1-4.
5. If CBSA is not satisfied that the information provided is true, accurate and complete, the release request will be returned to the importer or their customs brokers for comment and/or correction with a Form Y50, Reject Document Control
6. Supporting documentation such as a commercial invoice (Other than the CI1 - Canada Customs Invoice), bill of lading or any similar documents may be requested in order to establish the name of the importer of record for the release request unless the importer or their customs broker re-submit corrected documentation with the release request under reject.
7. The goods will not be released until the CBSA receives the release documentation (invoice, manifest and the Vehicle Import Form - Form 1) with the corrected information.
8. As the requirements regarding the submission of the name of the importer of record are mandatory as outlined in D17-1-4 the information contained in this customs notice is effective immediately.
9. The CBSA recognizes that there was confusion among the importers and customs brokers involved in the importation of pre-authorized commercial vehicles and the compliance with the CBSA requirement to submit the name of the importer of record. Therefore, the CBSA will allow a compliance period of six months beginning with the issuance of this customs notice, after which a penalty may be applicable.
10. Any questions regarding this customs notice may be directed to the Import Programs Management Unit email address at: ImportPrograms.Programmesdesimportations@cbsa-asfc.gc.ca. 

Notes:

• *CBSA have confirmed that the importer of the goods must be the party that "causes the goods to be exported" and it is this party that is indicated on the CBSA release request (B3, PARS, RMD) and accounting documents.
• *Transport Canada has advised that the party known as the "Designated Importer" will now be referred to as the Compliance Specialist. Their role going forward is still to be determined, but at this time both their name and the importer's name may be shown on the Form 1. We understand that Transport Canada is in discussions with the Compliance Specialists and that some have already contacted the customs brokers, importers and manufacturers with whom they have a relationship.