1. The purpose of this Customs Notice is to advise that the entitlement to the Most-Favoured-Nation (MFN) Tariff has been withdrawn, effective March 2, 2022, from goods that originate in Russia or Belarus.
2. Order in Council P.C. 2022-0182, SOR / 2022-0035 is established to withdraw the entitlement to the MFN Tariff for goods that originate in Russia or Belarus. Such goods must now be accounted for under the General Tariff rate of customs duty of 35%, citing tariff treatment code 03. However, as per subsection 29(2) of the Customs Tariff, those goods are subject to the Most-Favoured-Nation Tariff rate of customs duty if:
- (a) that rate is, or is equivalent to, more than 35%; or
- (b) a Note or Supplementary Note to a Chapter of the List of Tariff Provisions or a tariff item so provides.
3. This order does not apply to goods that were in transit to Canada on or before March 2, 2022. For the purpose of this Customs Notice, "in transit to Canada" refers to goods bound to Canada which were under the control of a carrier on or before March 2, 2022.
4. Importers should have in their possession proof that such goods were in transit to Canada on or before March 2, 2022. Such proof may include, but is not limited to, the following documentation: shipping documents, report of entry documents, and cargo control documents and it may be requested at any time by a Canada Border Services Agency officer.
5. To claim the MFN Tariff rate of customs duty for goods that were in transit to Canada on or before March 2, 2022, but released and accounted for on or after March 2, 2022, importers must complete and submit Form B3-3, Canada Customs Coding Form, as follows:
- (a) in field No. 14, "Tariff Treatment", enter the General Tariff, tariff treatment "03";
- (b) in field No. 26, "Special Authority", enter "22-0182";
- (c) in field No. 33, "Rate of Customs Duty", enter the General Tariff rate of customs duty;
- (d) in field No. 34, "E.T. Rate", enter the excise tax rate if applicable;
- (e) in field No. 35, "Rate of GST", enter the GST rate applicable;
- (f) in field No. 38, "Customs Duties", enter the customs duties owing, calculated based on the MFN rate in effect on the day of the release;
- (g) in field No. 40, "Excise Tax", enter the excise tax owing, if applicable; and
- (h) in field No. 42, "GST", enter the GST owing.
6. To claim the MFN Tariff rate of customs duty for goods that were released before March 2, 2022, but accounted for on or after March 2, 2022, importers must complete and submit Form B3-3, Canada Customs Coding Form, as per the normal accounting procedures prior to the withdrawal of the MFN rate (i.e. without quoting the special authority number and using the regular tariff treatment).
7. To claim the MFN Tariff rate of customs duty on Courier Low Value Shipment (CLVS) goods released in February and accounted for by March 24, 2022, the consolidated F type B3 is to be completed and submitted as per the normal accounting procedures whereby a release date of March 1, 2022 and the MFN Tariff are to be used.
8. To claim MFN on CLVS goods that were in transit to Canada on or before March 2, 2022, and released on or after March 2nd , an F-type B3 is to be completed and submitted as per the Special Authority Shipments instructions found in Memorandum D17-1-10, Coding of Customs Accounting Documents Appendix J, quoting "22-0182" in Field 26.
9. An application for a refund of duties 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 on or after March 2, 2022.
10. The CBSA recommends that importers request a ruling if they have any doubt as to the 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.
11. 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
Contact Us at the CBSA website may also be accessed for information.
CONTACT SCHENKER FOR MORE INFORMATION:
If you have any questions, please email your KAM or Schenker’s Client Services team at firstname.lastname@example.org Schenker of Canada Limited (Customs Department)
Download: Schenker Status Withdrawn from Russia & Belarus_March 11, 2022