Customs Act

R.S., 1985, c. 1 (2nd Supp.)

An Act respecting Customs

[1986, c. 1, assented to
13th February, 1986]

SHORT TITLE

1. This Act may be cited as the Customs Act.

INTERPRETATION

2. (1) In this Act,

"bonded warehouse" means a place licensed as a bonded warehouse by the Minister under subsection 91(1) of the Customs Tariff;

"Canada" [Repealed, 1996, c. 31, s. 73]

"Canada-United States Free Trade Agreement" [Repealed, 1997, c. 14, s. 35]

"CCFTA" has the same meaning as "Agreement" in subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act;

"Certificate of Origin" means the proof of origin form for goods for which preferential tariff treatment under a free trade agreement is claimed, prescribed under subsection 35.1(1) and subject to the regulations made pursuant to paragraph 35.1(4)(b);

"Chile" has the same meaning as in subsection 2(1) of the Customs Tariff;

"CIFTA" has the same meaning as "Agreement" in subsection 2(1) of the Canada-Israel Free Trade Agreement Implementation Act;

"cigar" has the meaning assigned by section 6 of the Excise Act;

"Commissioner" means the Commissioner of Customs and Revenue, appointed under section 25 of the Canada Customs and Revenue Agency Act;

"conveyance" means any vehicle, aircraft or water-borne craft or any other contrivance that is used to move persons or goods;

"courier" has the meaning assigned by regulation;

"customs office" means a place designated as a customs office by the Minister under section 5;

"Deputy Minister" [Repealed, 1999, c. 17, s. 123]

"designated goods" means

(a) alcohol, ethyl alcohol and spirits,

(b) aviation fuel,

(c) aviation gasoline,

(d) beer or malt liquor,

(e) diamonds,

(f) diesel fuel,

(g) gasoline,

(h) pearls,

(i) precious and semi-precious stones,

(j) wine, or

(k) such other goods as the Minister may, by order, designate for the purposes of all or any of the provisions of this Act;

"duties" means any duties or taxes levied or imposed on imported goods under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act or any other Act of Parliament, but, for the purposes of subsection 3(1), paragraphs 59(3)(b) and 65(1)(b), sections 69 and 73 and subsections 74(1), 75(2) and 76(1), does not include taxes imposed under Part IX of the Excise Tax Act;

"duty free shop" means a place licensed as a duty free shop by the Minister under section 24;

"export" means export from Canada;

"forfeit" means forfeit to Her Majesty in right of Canada;

"free trade agreement" means NAFTA, CCFTA or CIFTA;

"free trade partner" means

(a) a NAFTA country,

(b) Chile, or

(c) Israel or another CIFTA beneficiary;

"goods", for greater certainty, includes conveyances, animals and any document in any form;

"import" means import into Canada;

"imported from Israel or another CIFTA beneficiary" has the same meaning as in subsection 2(1) of the Customs Tariff;

"inland waters" means all the rivers, lakes and other fresh waters in Canada and includes the St. Lawrence River as far seaward as the straight lines drawn

(a) from Cap-des-Rosiers to the westernmost point of Anticosti Island, and

(b) from Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west;

"internal waters" [Repealed, 1996, c. 31, s. 73]

"Israel or another CIFTA beneficiary" has the same meaning as in subsection 2(1) of the Customs Tariff;

"mail" has the meaning set out in section 2 of the Canada Post Corporation Act;

"manufactured tobacco" has the meaning assigned by section 6 of the Excise Act;

"Minister" means the Minister of National Revenue;

"NAFTA" has the meaning assigned to the word "Agreement" by subsection 2(1) of the North American Free Trade Agreement Implementation Act;

"NAFTA country" has the meaning assigned to that expression by subsection 2(1) of the North American Free Trade Agreement Implementation Act;

"officer" means a person employed in the administration or enforcement of this Act, the Customs Tariff or the Special Import Measures Act and includes any member of the Royal Canadian Mounted Police;

"person", unless the context otherwise requires, includes a corporation, a partnership and an association;

"preferential tariff treatment under CCFTA" means, in respect of goods, entitlement to the Chile Tariff rates of customs duty under the Customs Tariff;

"preferential tariff treatment under CIFTA" means, in respect of goods, entitlement to the Canada--Israel Agreement Tariff rates of customs duty under the Customs Tariff;

"preferential tariff treatment under NAFTA" means, in respect of goods, entitlement to the United States Tariff, the Mexico Tariff or the Mexico--United States Tariff rates of customs duty under the Customs Tariff;

"prescribed" means

(a) in respect of a form, the information to be provided on or with a form, or the manner of filing a form, prescribed by the Minister, and

(b) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation;

"regulation" means a regulation made by the Governor in Council under this Act;

"release" means, in respect of goods, to authorize the removal of the goods from a customs office, sufferance warehouse, bonded warehouse or duty free shop for use in Canada;

"specified rate" means the rate of interest, expressed as a percentage per year, equal to 6% per year plus the prescribed rate;

"sufferance warehouse" means a place licensed as a sufferance warehouse by the Minister under section 24;

"tariff classification" means the classification of imported goods under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff;

"territorial sea" [Repealed, 1996, c. 31, s. 73]

"tobacco product" means manufactured tobacco or cigars;

"United States" [Repealed, 1997, c. 14, s. 35]

"value for duty" means, in respect of goods, the value of the goods as it would be determined in accordance with sections 45 to 56.

(1.1) For the purpose of the definition "designated goods" in subsection (1),

"alcohol", "ethyl alcohol" and "spirits" have the meaning assigned by subsection 3(1) of the Excise Act;

"beer" or "malt liquor" has the meaning assigned by section 4 of the Excise Act;

"diamonds" means goods for personal use or for adornment of the person and classified under subheading Nos. 7102.10, 7102.31 and 7102.39 in the List of Tariff Provisions set out in the schedule to the Customs Tariff;

"diesel fuel" has the meaning assigned by subsection 2(1) of the Excise Tax Act;

"gasoline" has the meaning assigned by subsection 2(1) of the Excise Tax Act;

"pearls" means goods for personal use or for adornment of the person and classified under heading No. 71.01 in the List of Tariff Provisions set out in the schedule to the Customs Tariff;

"precious and semi-precious stones" means goods for personal use or for adornment of the person and classified under heading No. 71.03 in the List of Tariff Provisions set out in the schedule to the Customs Tariff;

"wine" has the meaning assigned by section 25 of the Excise Tax Act.

(1.2) For the purposes of this Act, a reference to preferential tariff treatment under a free trade agreement shall be read as a reference to whichever of the following is applicable in the circumstances:

(a) preferential tariff treatment under NAFTA;

(b) preferential tariff treatment under CCFTA; or

(c) preferential tariff treatment under CIFTA.

(2) The Governor in Council may from time to time by regulation temporarily restrict, for the purposes of this Act, the extent of Canadian waters, including the inland waters, but no such regulation shall be construed as foregoing any Canadian rights in respect of waters so restricted.

(3) Any power, duty or function of the Commissioner under this Act may be exercised or performed by any person, or by any officer within a class of officers, authorized by the Commissioner to do so and, if so exercised or performed, is deemed to have been exercised or performed by the Commissioner.

(4) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial powers or duties of the Minister, under this Act.

R.S., 1985, c. 1 (2nd Supp.), s. 2, c. 41 (3rd Supp.), s. 118; 1988, c. 65, s. 66; 1990, c. 45, s. 19; 1992, c. 28, s. 1; 1993, c. 25, s. 68, c. 27, s. 213, c. 44, s. 81; 1994, c. 13, s. 7; 1995, c. 15, s. 24, c. 41, s. 1; 1996, c. 31, s. 73, c. 33, s. 28; 1997, c. 14, s. 35, c. 36, s. 147; 1998, c. 19, s. 262; 1999, c. 17, s. 123.

PART I
GENERAL

Application to Her Majesty

3. (1) All duties or taxes levied on imported goods under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act or any other law relating to customs are binding on Her Majesty in right of Canada or a province in respect of any goods imported by or on behalf of Her Majesty.

(2) Subject to subsection (3), this Act is binding on Her Majesty in right of Canada or a province.

(3) The Governor in Council may by regulation exempt Her Majesty in any case or class of cases from the requirement to report under section 12 or 95 subject to such conditions as may be prescribed.

Penalty and Interest

3.1 Interest computed at a prescribed rate or at a specified rate and any penalty computed at a rate per year under any provision of this Act (other than in respect of any amount in respect of duty levied under the Special Import Measures Act) shall be compounded daily and, where interest or such a penalty is computed in respect of an amount under a provision of this Act and is unpaid on the day it would, but for this section, have ceased to be computed under that provision, interest at the specified rate shall be computed and compounded daily on that unpaid interest or penalty from that day to the day it is paid and shall be paid as that provision required the amount to be paid.

1992, c. 28, s. 2.

3.2 Where a person is required under a provision of this Act to pay interest on an amount at the specified rate, the person shall, where the Minister or any officer designated by the Minister for the purposes of this section so authorizes, pay interest on that amount under that provision at the prescribed rate rather than at the specified rate.

1992, c. 28, s. 2.

3.3 (1) Notwithstanding any other provision of this Act, the Minister or any officer designated by the Minister for the purposes of this section may at any time waive or cancel all or any portion of any penalty or interest otherwise payable by a person under this Act.

(2) Where, as a result of a waiver or cancellation under subsection (1), a person is given a refund of an amount of penalty or interest that was paid by the person, the person shall be given, in addition to the refund, interest at the prescribed rate for the period beginning on the first day after the day the amount was paid and ending on the day the refund is given, calculated on the amount of the refund.

1992, c. 28, s. 2; 1995, c. 41, s. 2.

Security

3.4 (1) Where security has been given to the Minister by a person under a provision of this Act and the Minister or any officer (in this section referred to as a "designated officer") designated by the Minister for the purposes of this section determines that the security that has been given is no longer adequate, the Minister or a designated officer may, by notice served personally or by registered or certified mail, require additional security to be given by or on behalf of the person within such reasonable time as may be stipulated in the notice.

(2) Where the additional security required to be given by or on behalf of a person under subsection (1) is not given within the time it is so required to be given, the amount by which

(a) the amount owing in respect of which security that has been given to the Minister by the person is no longer adequate

exceeds

(b) the value of the security that has been given to the Minister by the person, as determined by the Minister or a designated officer,

is payable by the person immediately.

1992, c. 28, s. 2.

Performance of Obligations

4. Where more than one person is responsible for the performance of any obligation under this Act, performance of the obligation by any one of them shall be deemed to be performance by all of them.

Customs Offices and Facilities

5. The Minister may designate customs offices inside or outside Canada for a specified purpose or generally for business relating to customs and may at any time amend, cancel or reinstate any such designation.

6. (1) The owner or operator of

(a) any international bridge or tunnel, for the use of which a toll or other charge is payable,

(b) any railway operating internationally, or

(c) any airport, wharf or dock that receives conveyances operating internationally and in respect of which a customs office has been designated under section 5

shall provide, equip and maintain free of charge to Her Majesty at or near the bridge, tunnel, railway, airport, wharf or dock adequate buildings, accommodation or other facilities for the proper detention and examination of imported goods or for the proper search of persons by customs officers.

(2) The Minister may

(a) make such improvements as the Minister considers desirable to any facilities provided pursuant to subsection (1),

(b) post, on or about such facilities, such signs as the Minister considers appropriate for the safe use of the facilities or for the enforcement of any law relating to the importation or exportation of goods or the international movement of persons, and

(c) continue to use such facilities for as long a period of time as the Minister requires,

and no person shall interfere with any of the rights set out in this subsection.

(3) The Governor in Council may, subject to subsection (4), make regulations determining what are adequate buildings, accommodation and other facilities for the purposes referred to in subsection (1).

(4) Any building, accommodation or other facility provided for the purposes referred to in subsection (1) that fails to meet the applicable requirements of Part II of the Canada Labour Code shall be deemed not to be adequate for those purposes.

(5) Where any building, accommodation or other facility provided pursuant to subsection (1) at or near an international bridge or tunnel is not adequate for the purposes referred to in that subsection, the Minister may, on thirty days notice to the owner or operator of the bridge or tunnel, carry out any construction or repairs on the site of the facility in order to render it adequate for those purposes.

(6) The owner or operator of an international bridge or tunnel is liable for all reasonable costs incurred by the Minister under subsection (5), which costs may be recovered in accordance with sections 143 to 145.

R.S., 1985, c. 1 (2nd Supp.), s. 6, c. 26 (3rd Supp.), s. 1.

Application of Act

7. Subject to this Act and the regulations, any of the powers, duties or functions established under this Act or the regulations relating to the importation of goods may be carried out inside Canada or, where they do not conflict with the laws of another country, inside that other country and may be carried out before or after the importation.

Forms

8. The Minister may prescribe any form or any information to be given on a form that is by this Act or the regulations to be prescribed and may include on any form so prescribed a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is true, accurate and complete.

Electronic Filing

8.1 (1) For the purposes of this section, "electronic filing" means using electronic media in a manner specified in writing by the Minister.

(2) A person who is required to file or otherwise provide forms under this Act or the Customs Tariff and who meets the criteria specified in writing by the Minister may file with the Minister in the prescribed manner an application, in the prescribed form with the prescribed information, for authorization to file or otherwise provide the forms by way of electronic filing.

(3) If the Minister is satisfied that a person who files an application under subsection (2) meets the criteria referred to in that subsection, the Minister may, in writing, authorize the person to file or otherwise provide forms by way of electronic filing, subject to such conditions as the Minister may at any time impose.

(4) The Minister may revoke an authorization granted to a person under subsection (3) if

(a) the person, in writing, requests the Minister to revoke the authorization;

(b) the person fails to comply with any condition imposed in respect of the authorization or any provision of this Act or the Customs Tariff;

(c) the Minister is no longer satisfied that the criteria referred to in subsection (2) are met; or

(d) the Minister considers that the authorization is no longer required.

(5) If the Minister revokes the authorization, the Minister shall notify the person in writing of the revocation and its effective date.

(6) For the purposes of this Act and the Customs Tariff, if a person files or otherwise provides a form by way of electronic filing in accordance with the conditions, if any, imposed under subsection (3), it is deemed to be filed or provided in the prescribed form on the prescribed day.

(7) For the purposes of this Act and the Customs Tariff, a document presented by the Minister purporting to be a print-out of a form received under this section shall be received as evidence and, in the absence of proof to the contrary, is proof of the form filed or otherwise provided under this section.

(8) The Governor in Council may, on the recommendation of the Minister, make regulations for the operation of electronic systems or any other technology to be used in the administration of this Act or the Customs Tariff, including regulations respecting

(a) the supplying of information or forms for any purpose under this Act or the Customs Tariff in electronic or other form, the notification of persons and the transmission of any other information under this Act or the Customs Tariff;

(b) the payment of amounts under this Act or the Customs Tariff by electronic instructions; and

(c) the manner in which and the extent to which, if at all, any provision of this Act or the Customs Tariff or the regulations under either Act applies to the electronic systems, and adapting any such provision for the purpose of applying it.

1997, c. 36, s. 148.

Brokers and Agents

9. (1) Subject to the regulations, the Minister or any person designated by the Minister for the purposes of this section may issue to any person who is qualified under the regulations a licence to transact business as a customs broker.

(2) Subject to the regulations, the Minister may amend, suspend, renew, cancel or reinstate any licence issued under subsection (1), and any person designated by the Minister for the purpose of this section may amend, suspend, renew, cancel or reinstate any licence issued by himself under subsection (1).

(3) Where an officer so requests, a customs broker shall make available to the officer any records that he is required by the regulations to keep.

(4) No person shall transact or attempt to transact business as a customs broker or hold himself out as a customs broker unless the person holds a licence issued under subsection (1) or unless he is qualified under the regulations and is duly authorized to transact business as a customs broker by a person who holds such a licence, but nothing in this subsection shall be so construed as to prohibit any person from transacting business on his own behalf under this Act, or to prohibit persons administering estates or other duly authorized agents from transacting business under this Act.

(5) The Governor in Council may make regulations

(a) prescribing qualifications as to citizenship, residence and knowledge of the laws and procedures relating to importations and exportations and any other qualifications that must be met by an applicant for a customs broker's licence issued under subsection (1), and any such qualifications that must be met by a person who transacts business as a customs broker on behalf of a person so licensed;

(b) prescribing the terms and conditions on which such licences may be issued, including the security that may be required and the fees, if any, to be paid for the licences;

(c) prescribing the duration of such licences;

(d) prescribing the manner of applying for such licences or for renewals thereof;

(e) providing for the examination of applicants for such licences, and of persons who will transact business as customs brokers on their behalf, by the Minister or by any other person with respect to their knowledge of the laws and procedures relating to importations and exportations;

(f) prescribing the examination fees to be paid, the amount of any deposit that may be taken in respect thereof and the conditions under which such fees or deposits may be refunded;

(g) prescribing the records to be kept by customs brokers and the period of time for which they shall be kept; and

(h) prescribing the manner and circumstances in which the Minister may suspend or cancel a customs broker's licence issued under subsection (1) or any other person may suspend or cancel such a licence issued by himself thereunder, and the circumstances in which a customs broker's licence shall be surrendered.

10. (1) Subject to the regulations, any person who is duly authorized to do so may transact business under this Act as the agent of another person, but an officer may refuse to transact business with any such person unless that person, on the request of the officer, produces a written authority, in a form approved by the Minister, from the person on whose behalf he is acting.

(2) Any person who is duly authorized to administer the estate of another person by reason of death, bankruptcy, insolvency or incapacity or for any other reason may transact business under this Act on behalf of the estate but an officer may refuse to transact business with any such person unless that person satisfies the officer that he is duly authorized to administer the estate.

(3) The Governor in Council may make regulations in respect of any provision of this Act prescribing the circumstances in which a person may transact business under that provision as the agent of another person.

PART II
IMPORTATION

Persons

11. (1) Subject to this section, every person arriving in Canada shall, except in such circumstances and subject to such conditions as may be prescribed, forthwith present himself at the nearest customs office designated for that purpose that is open for business and answer truthfully any questions asked by an officer in the performance of his duties under this or any other Act of Parliament.

(2) Subsection (1) does not apply to any person who has presented himself outside Canada at a customs office designated for that purpose and has not subsequently stopped at any other place prior to his arrival in Canada unless an officer requires that person to comply therewith.

(3) Subject to this section, every person in charge of a conveyance arriving in Canada shall, except in such circumstances and subject to such conditions as may be prescribed, ensure that the passengers and crew are forthwith on arrival in Canada transported to a customs office referred to in subsection (1).

(4) Subsection (3) does not apply to any person in charge of a conveyance transporting passengers and crew all of whom have presented themselves outside Canada at a customs office designated for that purpose and have not subsequently stopped at any other place prior to their arrival in Canada unless an officer requires that person to comply therewith.

(5) Subsections (1) and (3) do not apply to any person who enters Canadian waters, including the inland waters, or the airspace over Canada while proceeding directly from one place outside Canada to another place outside Canada unless an officer requires that person to comply with those subsections.

R.S., 1985, c. 1 (2nd Supp.), s. 11; 1996, c. 31, s. 74.

Report of Goods

12. (1) Subject to this section, all goods that are imported shall, except in such circumstances and subject to such conditions as may be prescribed, be reported at the nearest customs office designated for that purpose that is open for business.

(2) Goods shall be reported under subsection (1) at such time and in such manner as the Governor in Council may prescribe.

(3) Goods shall be reported under subsection (1)

(a) in the case of goods in the actual possession of a person arriving in Canada, or that form part of his baggage where the person and his baggage are being carried on board the same conveyance, by that person;

(a.1) in the case of goods imported by courier or as mail, by the person who exported the goods to Canada;

(b) in the case of goods, other than goods referred to in paragraph (a) or goods imported as mail, on board a conveyance arriving in Canada, by the person in charge of the conveyance; and

(c) in any other case, by the person on behalf of whom the goods are imported.

(3.1) For greater certainty, for the purposes of the reporting of goods under subsection (1), the return of goods to Canada after they are taken out of Canada is an importation of those goods.

(4) Subsection (1) does not apply in respect of goods that are reported in the manner prescribed under subsection (2) prior to importation at a customs office outside Canada unless an officer requires that the goods be reported again under subsection (1) after importation.

(5) This section does not apply in respect of goods on board a conveyance that enters Canadian waters, including the inland waters, or the airspace over Canada while proceeding directly from one place outside Canada to another place outside Canada unless an officer otherwise requires.

(6) Where goods are required by the regulations to be reported under subsection (1) in writing, they shall be reported in the prescribed form containing the prescribed information, or in such form containing such information as is satisfactory to the Minister.

(7) Goods described in tariff item No. 9813.00.00 or 9814.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff

(a) that are in the actual possession of a person arriving in Canada, or that form part of his baggage, where the person and his baggage are being carried on board the same conveyance,

(b) that are not charged with duties, and

(c) the importation of which is not prohibited under the Customs Tariff or prohibited, controlled or regulated under any Act of Parliament other than this Act or the Customs Tariff

may not be seized as forfeit under this Act by reason only that they were not reported under this section.

R.S., 1985, c. 1 (2nd Supp.), s. 12, c. 41 (3rd Supp.), s. 119; 1992, c. 28, s. 3; 1996, c. 31, s. 75; 1997, c. 36, s. 149.

13. Every person reporting goods under section 12 inside or outside Canada shall

(a) answer truthfully any question asked by an officer with respect to the goods; and

(b) where an officer so requests, present the goods to the officer, remove any covering from the goods, unload any conveyance or open any part thereof, or open or unpack any package or container that the officer wishes to examine.

14. (1) No person shall unload goods from a conveyance arriving in Canada until the goods have been reported in accordance with sections 12 and 13 except where the safety of the conveyance, or the goods or persons on the conveyance, is threatened by collision, fire, the stress of weather or other similar circumstances or in such other circumstances as may be prescribed.

(2) Where a conveyance is unloaded in the circumstances described in subsection (1), the person in charge of the conveyance shall forthwith, in such manner as may be prescribed, report the conveyance, the goods that were so unloaded and any goods that remain on the conveyance at a customs office designated for that purpose.

15. Any person who finds or has in his possession goods that have been imported and who believes on reasonable grounds that the provisions of this or any other Act of Parliament that prohibits, controls or regulates the importation of goods have not been complied with in respect of the goods or that duties levied thereon have not been paid shall forthwith report to an officer that he has found the goods or has them in his possession.

16. (1) For the purposes of this Act, any wreck that has come into Canada from outside Canada shall be deemed to have been imported.

(2) Where any wreck that has come into Canada from outside Canada is delivered up to the owner thereof or his agent pursuant to section 441 of the Canada Shipping Act, the owner of the wreck

(a) shall forthwith report the delivery to an officer; and

(b) is, from the time of the delivery, liable for all duties thereon calculated at the rates applicable to the wreck at the time of the delivery.

(3) In this section, "wreck" includes

(a) jetsam, flotsam, lagan and derelict found in, or on the shores of, the sea, any tidal water, or any of the inland waters;

(b) cargo, stores and tackle of any vessel and of all parts of the vessel separated therefrom;

(c) the property of shipwrecked persons; and

(d) any wrecked aircraft or any part thereof and cargo thereof.

Duties

17. (1) Imported goods are charged with duties thereon from the time of importation thereof until such time as the duties are paid or the charge is otherwise removed.

(2) Subject to this Act, the rates of duties on imported goods shall be the rates applicable to the goods at the time they are accounted for under subsection 32(1), (2) or (5).

(3) Whenever the importer of the goods that have been released or any person authorized pursuant to paragraph 32(6)(a) or subsection 32(7) to account for goods becomes liable under this Act to pay duties thereon, the owner of the goods at the time of release becomes jointly and severally liable, with the importer or person authorized, to pay the duties.

R.S., 1985, c. 1 (2nd Supp.), s. 17; 1992, c. 28, s. 4.

Liability for Duties on Goods Reported

18. (1) For the purposes of this section, all goods reported under section 12 shall be deemed to have been imported.

(2) Subject to subsection (3), any person who reports goods under section 12, and any person for whom that person acts as agent or employee while so reporting, are jointly and severally liable for all duties levied on the goods unless one or the other of them proves, within such time as may be prescribed, that the duties have been paid or that the goods

(a) were destroyed or lost prior to report or destroyed after report but prior to receipt in a place referred to in paragraph (c) or by a person referred to in paragraph (d);

(b) did not leave the place outside Canada from which they were to have been exported;

(c) have been received in a customs office, sufferance warehouse, bonded warehouse or duty free shop;

(d) have been received by a person who transports or causes to be transported within Canada goods in accordance with subsection 20(1);

(e) have been exported; or

(f) have been released.

(3) The rates of duties payable on goods under subsection (2) shall be the rates applicable to the goods at the time they were reported under section 12.

(4) The Governor in Council may make regulations prescribing the circumstances in which such bonds or other security as may be prescribed may be required from any person who is or may become liable for the payment of duties under this section.

Movement and Storage of Goods

19. (1) Subject to section 20, any person who is authorized by an officer to do so may

(a) deliver goods that have been reported under section 12 or cause them to be delivered from a customs office to another customs office or a sufferance warehouse;

(b) deliver such goods or cause them to be delivered from a sufferance warehouse to another sufferance warehouse;

(c) where such goods are designated as ships' stores by regulations made under paragraph 99(g) of the Customs Tariff, remove them or cause them to be removed from a customs office or sufferance warehouse for use on board a conveyance of a class prescribed under that paragraph in accordance with regulations made under that paragraph;

(d) export such goods or cause them to be exported directly from a customs office or sufferance warehouse; or

(e) where such goods are at a customs office, leave them at that office, subject to such storage charges as may be prescribed.

(2) Subject to section 20, where goods that have been reported under section 12 have been described in the prescribed form at a customs office designated for that purpose, any person who is authorized by an officer to do so may

(a) deliver the goods or cause them to be delivered from a customs office or sufferance warehouse to a bonded warehouse or duty free shop;

(b) deliver them or cause them to be delivered from a bonded warehouse to another bonded warehouse or to a duty free shop or from a duty free shop to another duty free shop or to a bonded warehouse;

(c) where the goods are designated as ships' stores by regulations made under paragraph 99(g) of the Customs Tariff, remove them or cause them to be removed from a bonded warehouse for use on board a conveyance of a class prescribed under that paragraph in accordance with regulations made under that paragraph;

(d) export them or cause them to be exported directly from a duty free shop in accordance with regulations made under section 30; or

(e) export them or cause them to be exported directly from a bonded warehouse.

(3) Goods that are removed as ships' stores under paragraph (1)(c) or exported under paragraph (1)(d) are, from the time of their exportation, no longer charged with duties.

(4) and (5) [Repealed, 1995, c. 41, s. 3]

R.S., 1985, c. 1 (2nd Supp.), s. 19; 1993, c. 25, s. 69; 1995, c. 41, s. 3; 1997, c. 36, s. 150.

19.1 (1) Subject to this section, any person who is authorized by an officer under subsection 19(2) to deliver goods or cause them to be delivered to a bonded warehouse shall, before the delivery, furnish an officer at a customs office with the statistical code for the goods determined by reference to the Coding System established pursuant to section 22.1 of the Statistics Act.

(2) The statistical code referred to in subsection (1) shall be furnished in the prescribed manner and in the prescribed form containing the prescribed information.

(3) The Governor in Council may make regulations exempting persons or goods, or classes thereof, from the requirements of subsection (1) subject to such conditions, if any, as are specified in the regulations.

1988, c. 65, s. 67.

Transportation

20. (1) Except in such circumstances as may be prescribed, every person who transports or causes to be transported within Canada goods that have been imported but have not been released shall do so subject to such conditions and subject to such bonds or other security as may be prescribed.

(2) Every person who transports or causes to be transported within Canada goods that have been imported but have not been released is liable for all duties thereon unless he proves, within such time as may be prescribed, that the goods were

(a) destroyed while being so transported;

(b) received in a customs office, sufferance warehouse, bonded warehouse or duty free shop;

(c) where the goods are designated as ships' stores by regulations made under paragraph 99(g) of the Customs Tariff, received on board a conveyance of a class prescribed under that paragraph for use on the conveyance in accordance with regulations made under that paragraph;

(d) received by another person who is entitled under subsection (1) to transport such goods; or

(e) exported.

(3) The rates of duties payable on goods under subsection (2) shall be the rates applicable to the goods at the time they were reported under section 12.

R.S., 1985, c. 1 (2nd Supp.), s. 20; 1995, c. 41, s. 4; 1997, c. 36, s. 151.

21. Every person who transports or causes to be transported within Canada goods that have been imported but have not been released shall, where an officer so requests, afford the officer free access to any premises or place under his control that is attached to or forms part of any place where such goods are reported, loaded, unloaded or stored, and open any package or container of such goods or remove any covering therefrom.

22. (1) Subject to subsection (2), every person who

(a) transports or causes to be transported goods into Canada, or

(b) transports or causes to be transported within Canada goods that have been imported but have not been released

shall keep in Canada such records for such period of time and in such manner as may be prescribed and shall, where an officer so requests, make them available to the officer and answer truthfully any questions asked by the officer in respect of the records.

(2) The Minister may, subject to such terms and conditions as he may specify, exempt any person or class of persons from the requirement to keep records or from the requirement to keep records in Canada where he deems it unnecessary or impracticable to keep records or to keep them in Canada.

R.S., 1985, c. 1 (2nd Supp.), s. 22; 1995, c. 41, s. 5.

23. Goods that are transported from one place in Canada to another place in Canada over territory or waters outside Canada in accordance with such terms and conditions and subject to such bonds or other security as may be prescribed shall be treated, with respect to their liability to or exemption from duties, as if they had been transported entirely within Canada.

Warehouses and Duty Free Shops

24. (1) Subject to the regulations, the Minister may, where he deems it necessary or desirable to do so, issue to any person qualified under the regulations a licence for the operation of any place

(a) as a sufferance warehouse for the examination of imported goods that have not been released, or

(b) [Repealed, 1995, c. 41, s. 6]

(c) as a duty free shop for the sale of goods free of certain duties or taxes levied on goods under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act or any other law relating to customs, to persons who are about to leave Canada

and may specify in the licence any restriction as to the classes of goods that may be received therein or the circumstances in which goods may be received therein.

(1.1) The definition "duties" in subsection 2(1) does not apply for the purposes of paragraph (1)(c).

(2) The Minister may, subject to the regulations, amend, suspend, renew, cancel or reinstate a licence issued under subsection (1).

R.S., 1985, c. 1 (2nd Supp.), s. 24; 1993, c. 25, s. 70; 1995, c. 41, s. 6; 2001, c. 16, s. 2.

25. Subject to the regulations, the operator of a sufferance warehouse shall not refuse to receive any goods brought to the warehouse that qualify under the terms of his licence.

26. (1) The operator of a duty free shop shall ensure that the prices of goods offered for sale at the duty free shop reflect the extent to which the goods have not been subject to duties and taxes.

(2) In subsection (1), "duties" means duties or taxes levied under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act or any other law relating to customs.

R.S., 1985, c. 1 (2nd Supp.), s. 26; 1993, c. 25, s. 71.

27. The operator of a sufferance warehouse, bonded warehouse or duty free shop shall, where an officer so requests, afford the officer free access to the warehouse or duty free shop or any premises or place under his control that is attached to or forms part of the warehouse or duty free shop and open any package or container of goods therein or remove any covering therefrom.

28. (1) Subject to subsections (1.1) and (1.2), the operator of a sufferance warehouse, bonded warehouse or duty free shop is liable for all duties or taxes levied under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act or any other law relating to customs on goods that have been received therein unless the operator proves that the goods

(a) are still in the warehouse or duty free shop;

(b) have been destroyed while in the warehouse or duty free shop;

(c) have been removed from the warehouse or duty free shop pursuant to section 19;

(d) have been taken as a sample or seized under the Firearms Act or any other Act of Parliament; or

(e) have been released by an officer.

(1.1) In applying subsection (1) to an operator of a bonded warehouse in respect of the taxes and duties levied under the Excise Tax Act and section 20 of the Customs Tariff on cigars and manufactured tobacco that are delivered to the bonded warehouse after February 12, 1992 and are exported from the bonded warehouse after that date and before April 8, 1992, the reference in subsection (1) to "section 19" shall be read as a reference to "paragraph 19(2)(b) or (c)".

(1.2) Subsection (1) does not apply in respect of the tax levied under section 23.2 of the Excise Tax Act.

(2) The rates of duties payable on goods under subsection (1) shall,

(a) where the goods have been received in a sufferance warehouse, be the rates applicable to such goods at the time they were reported under section 12; and

(b) where the goods have been received in a bonded warehouse or duty free shop, be the rates applicable to such goods at the time they were received therein.

(3) The definition "duties" in subsection 2(1) does not apply for the purposes of subsections (1), (1.1) and (2).

R.S., 1985, c. 1 (2nd Supp.), s. 28; 1993, c. 25, s. 72; 1995, c. 39, s. 168.

29. [Repealed, 1995, c. 41, s. 7]

30. The Governor in Council may make regulations

(a) prescribing qualifications as to citizenship and residence or any other qualifications that must be met by the operator of a sufferance warehouse or duty free shop;

(b) prescribing the terms and conditions on which licences for the operation of sufferance warehouses or duty free shops may be issued under section 24, including the security that may be required of operators of the warehouses or shops, the duration of the licences and the fees or the manner of determining fees, if any, to be paid for the licences;

(c) prescribing the circumstances in which licences for the operation of sufferance warehouses or duty free shops may be issued, amended, suspended, renewed, cancelled or reinstated;

(d) establishing standards for the operation of and the maintenance of the facilities of sufferance warehouses or duty free shops;

(e) prescribing the manner of acknowledging receipt of goods in sufferance warehouses or duty free shops;

(f) establishing the circumstances in which and the extent to which goods may be manipulated, unpacked, packed, altered or combined with other goods while in sufferance warehouses or duty free shops;

(g) prescribing facilities, equipment and personnel that must be provided at sufferance warehouses or duty free shops;

(h) prescribing the circumstances in which the operator of a sufferance warehouse may refuse goods that are brought to the warehouse for safe-keeping;

(i) regulating the transfer of ownership of goods in duty free shops;

(j) prescribing, with respect to goods, or classes of goods, that are offered for sale in a duty free shop, minimum proportions, by reference to quantity, value or other like standard, that must be of domestic origin;

(k) prescribing restrictions as to the classes of goods that may be received in sufferance warehouses;

(l) prescribing circumstances in which goods shall not be received in sufferance warehouses;

(m) regulating the provision of information by the operator of a duty free shop; and

(n) otherwise regulating the operation of sufferance warehouses or duty free shops.

R.S., 1985, c. 1 (2nd Supp.), s. 30; 1993, c. 25, s. 73; 1995, c. 41, s. 7.

Release

31. Subject to section 19, no goods shall be removed from a customs office, sufferance warehouse, bonded warehouse or duty free shop by any person other than an officer in the performance of his duties under this or any other Act of Parliament unless the goods have been released by an officer.

Accounting and Payment of Duties

32. (1) Subject to subsections (2) and (4) and any regulations made under subsection (6), and to section 33, no goods shall be released until

(a) they have been accounted for by the importer or owner thereof in the prescribed manner and, where they are to be accounted for in writing, in the prescribed form containing the prescribed information; and

(b) all duties thereon have been paid.

(2) In such circumstances as may be prescribed, goods may be released prior to the accounting required under subsection (1) if the importer or owner of the goods makes an interim accounting in the prescribed manner and in the prescribed form containing the prescribed information, or in such form containing such information as is satisfactory to the Minister.

(3) Where goods are released under subsection (2), the person who made the interim accounting thereunder in respect of the goods shall, within the prescribed time, account for the goods in the manner described in paragraph (1)(a).

(4) In such circumstances, and under such conditions, as may be prescribed, goods imported by courier or as mail may be released prior to the accounting required under subsection (1) and prior to the payment of duties thereon.

(5) Where goods are released under subsection (4),

(a) the person who is authorized under paragraph (6)(a) or subsection (7) to account for the goods shall, within the prescribed time, account for the goods in the manner described in paragraph (1)(a) and that person or the importer or owner of the goods shall, within the prescribed time, pay duties on the goods, or

(b) where there is no person authorized under paragraph (6)(a) or subsection (7) to account for the goods, the importer or owner of the goods shall, within the prescribed time, account for the goods in the manner described in paragraph (1)(a) and shall, within the prescribed time, pay duties on the goods.

(5.1) Except in prescribed circumstances, where the importer or owner of mail that has been released as mail under subsection (4) takes delivery of the mail, the mail shall be deemed to have been accounted for under subsection (5) at the time of its release.

(6) The Governor in Council may make regulations

(a) specifying persons or classes of persons who are authorized to account for goods under this section in lieu of the importer or owner thereof and prescribing the circumstances in which and the conditions under which such persons or classes of persons are so authorized; and

(b) prescribing the circumstances in which goods may be released without any requirement of accounting.

(7) The Minister or an officer designated by the Minister for the purposes of this subsection may authorize any person not resident in Canada to account for goods under this section, in such circumstances and under such conditions as may be prescribed, in lieu of the importer or owner thereof.

R.S., 1985, c. 1 (2nd Supp.), s. 32; 1992, c. 28, s. 5; 1995, c. 41, s. 8.

32.1 (1) Subject to this section, every person who accounts for goods under subsection 32(1), (3) or (5) shall, at the time of accounting, furnish an officer at a customs office with the statistical code for the goods determined by reference to the Coding System established pursuant to section 22.1 of the Statistics Act.

(2) The statistical code referred to in subsection (1) shall be furnished in the prescribed manner and in the prescribed form containing the prescribed information.

(3) The Governor in Council may make regulations exempting persons or goods, or classes thereof, from the requirements of subsection (1) subject to such conditions, if any, as are specified in the regulations.

1988, c. 65, s. 68.

32.2 (1) An importer or owner of goods for which preferential tariff treatment under a free trade agreement has been claimed or any person authorized to account for those goods under paragraph 32(6)(a) or subsection 32(7) shall, within ninety days after the importer, owner or person has reason to believe that a declaration of origin for those goods made under this Act is incorrect,

(a) make a correction to the declaration of origin in the prescribed manner and in the prescribed form containing the prescribed information; and

(b) pay any amount owing as duties as a result of the correction to the declaration of origin and any interest owing or that may become owing on that amount.

(1.1) [Repealed, 1997, c. 14, s. 36]

(2) Subject to regulations made under subsection (7), an importer or owner of goods or a person who is within a prescribed class of persons in relation to goods or is authorized under paragraph 32(6)(a) or subsection 32(7) to account for goods shall, within ninety days after the importer, owner or person has reason to believe that the declaration of origin (other than a declaration of origin referred to in subsection (1)), declaration of tariff classification or declaration of value for duty made under this Act for any of those goods is incorrect,

(a) make a correction to the declaration in the prescribed form and manner, with the prescribed information; and

(b) pay any amount owing as duties as a result of the correction to the declaration and any interest owing or that may become owing on that amount.

(3) A correction made under this section is to be treated for the purposes of this Act as if it were a re-determination under paragraph 59(1)(a).

(4) The obligation under this section to make a correction in respect of imported goods ends four years after the goods are accounted for under subsection 32(1), (3) or (5).

(5) This section does not apply to require or allow a correction that would result in a claim for a refund of duties.

(6) The obligation under this section to make a correction to a declaration of tariff classification includes an obligation to correct a declaration of tariff classification that is rendered incorrect by a failure, after the goods are accounted for under subsection 32(1), (3) or (5), to comply with a condition imposed under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff or under any regulations made under that Act in respect of a tariff item in that List.

(7) The Governor in Council may make regulations prescribing the circumstances in which certain goods are exempt from the operation of subsection (6) and the classes of goods in respect of which, the length of time for which and the conditions under which the exemptions apply.

(8) If a declaration of tariff classification is rendered incorrect by a failure referred to in subsection (6), for the purposes of paragraph (2)(b), duties do not include duties or taxes levied under the Excise Tax Act, the Excise Act or the Special Import Measures Act.

1993, c. 44, s. 82; 1996, c. 33, s. 29; 1997, c. 14, s. 36, c. 36, s. 152.

33. In such circumstances as may be prescribed, goods may be released prior to the payment of duties thereon, and where goods are released under this section the person who accounted for the goods under subsection 32(2) or (3) shall pay the duties thereon within a prescribed time.

R.S., 1985, c. 1 (2nd Supp.), s. 33; 1992, c. 28, s. 6.

33.1 Every person who fails to account for imported goods, or fails to account for imported goods in accordance with this Part and the regulations made under this Act, is liable to a penalty of $100 for each failure.

1992, c. 28, s. 7; 1997, c. 36, s. 153.

33.2 The Minister or any officer designated by the Minister for the purposes of this section may, by notice served personally or by registered or certified mail, require any person to account, within such reasonable time as may be stipulated in the notice, in the manner described in paragraph 32(1)(a), for any goods as may be designated in the notice.

1992, c. 28, s. 7.

33.3 Every person who fails to comply with section 33.2 with respect to a notice served on the person under that section is liable, in addition to any other penalty provided for in this Part, to a penalty equal to the greater of

(a) $250, and

(b) 5% of the amount of duties payable on the goods designated in the notice.

1992, c. 28, s. 7.

33.4 (1) Subject to subsection (4), any person who is liable to pay an amount of duties in respect of imported goods (other than any amount in respect of duty levied under the Special Import Measures Act) shall pay, in addition to the amount, interest at the specified rate for the period beginning on the first day after the day the person became liable to pay the amount and ending on the day the amount has been paid in full, calculated on the outstanding balance of the amount.

(2) [Repealed, 1995, c. 41, s. 9]

(3) For the purposes of subsection (1), any duties in respect of goods payable under paragraph 59(3)(a) or 65(1)(a) are deemed to have become payable on the day duties became payable in respect of the goods under this Part.

(4) If an amount of duties in respect of goods that is payable by a person under paragraph 59(3)(a) or 65(1)(a) in accordance with a determination, re-determination or further re-determination is paid by the person within thirty days after the day (in this subsection referred to as the "decision day") the determination, re-determination or further re-determination, as the case may be, is made, interest is not payable under subsection (1) on the amount for the period beginning on the day after the decision day and ending on the day the amount is paid.

(5) Where a person is liable to a penalty under section 33.1, 33.3 or 33.6, the person shall pay, in addition to the penalty, interest at the specified rate for the period beginning on the day after the day the person became liable to the penalty and ending on the day the penalty has been paid in full, calculated on the outstanding balance of the penalty.

(6) Any person who is liable to pay tax under Division III of Part IX of the Excise Tax Act in respect of an amount of duty levied under subsection 11(1) or paragraph 60(1)(a) of the Special Import Measures Act shall pay, in addition to that tax, interest at the prescribed rate in respect of each month or fraction of a month in the period beginning thirty days after the day the tax became payable and ending on the day the tax has been paid in full, calculated on the outstanding balance of the tax.

1992, c. 28, s. 7; 1994, c. 47, s. 70; 1995, c. 41, s. 9; 1997, c. 36, s. 154.

33.5 The Minister or any officer designated by the Minister for the purposes of this section may, by notice served personally or by registered or certified mail, require any person to pay any amount owing as duties, within such reasonable time as may be stipulated in the notice, on any goods as may be designated in the notice.

1992, c. 28, s. 7.

33.6 Every person who fails to pay any amount in accordance with a notice served under section 33.5 is liable, in addition to any other penalty provided for in this Part, to a penalty equal to the greater of

(a) $250, and

(b) 5% of the amount of duties payable on the goods designated in the notice.

1992, c. 28, s. 7.

33.7 (1) The Minister or any officer designated by the Minister for the purposes of this section may at any time extend in writing the time prescribed by the regulations made under this Part for the accounting of goods or the payment of any amount owing as duties.

(2) Where the time within which a person must account for goods is extended under subsection (1),

(a) the goods shall be accounted for within the time as so extended;

(b) if the person accounts for the goods within the time as so extended, no penalty shall be imposed pursuant to section 33.1 or 33.3; and

(c) if the person fails to account for the goods within the time as so extended, the extension shall be deemed not to have been made.

(3) Where the time within which a person must pay any amount owing as duties is extended under subsection (1),

(a) that amount shall be paid within the time as so extended;

(b) if the person pays that amount within the time as so extended,

(i) subsection 33.4(1) shall apply in respect of that amount as if the time had not been so extended, but interest payable under that subsection in respect of that amount shall be computed at the prescribed rate rather than at the specified rate, and

(ii) section 33.6 shall not apply in respect of a failure to pay the amount; and

(c) if the person fails to pay the amount within the time as so extended, the extension shall be deemed not to have been made.

1992, c. 28, s. 7.

33.8 For the purposes of sections 33.1 to 33.6, "duties" do not include any amount in respect of duty levied under the Special Import Measures Act.

1992, c. 28, s. 7.

34. [Repealed, 1995, c. 41, s. 10]

35. Except in such circumstances as may be prescribed, no goods shall be released under subsection 32(2) or (4) or section 33 until such deposits, bonds or other security as may be prescribed is given, and any goods that are released under those provisions shall be released subject to such terms and conditions as may be prescribed.

R.S., 1985, c. 1 (2nd Supp.), s. 35; 1995, c. 41, s. 11.

Marking of Goods

35.01 No person shall import goods that are required to be marked by any regulations made under section 19 of the Customs Tariff unless the goods are marked in accordance with those regulations.

1993, c. 44, s. 83; 1997, c. 36, s. 155.

35.02 (1) Every person who fails to comply with section 35.01 is liable to a penalty of $250 for each failure to comply.

(2) The Minister or any officer designated by the Minister for the purposes of this section may, by notice served personally or by registered mail, require any person

(a) to mark imported goods in accordance with the regulations made under section 19 of the Customs Tariff, within such reasonable time as may be stipulated in the notice, if there has been a failure to comply with section 35.01 with respect to the goods; or

(b) to comply with section 35.01 in respect of any goods designated in the notice that will subsequently be imported by the person.

(3) Every person who fails to comply with a notice served on the person under subsection (2) in respect of goods is liable, in addition to any penalty provided for under subsection (1), to a penalty of $2000 or such lesser amount as the Minister may direct.

(4) Where a person imports goods of a prescribed class from a NAFTA country, that person is not liable to a penalty under this section unless

(a) the person has previously failed to comply with section 35.01 in respect of imported goods and has been given notice pursuant to subsection (2);

(b) the goods with respect to which there has been a failure to comply with section 35.01 or a notice given pursuant to subsection (2) have been released without being marked in the manner referred to in section 35.01; or

(c) the imported goods have been marked in a deceptive manner so as to mislead another person as to the country or geographic area of origin of the goods.

(5) Any person who is liable to pay a penalty under this section shall pay, in addition to the penalty, interest at the specified rate for the period beginning on the day after the day on which the person became liable to the penalty and ending on the day on which the penalty has been paid in full, calculated on the outstanding balance of the penalty.

1993, c. 44, s. 83; 1997, c. 36, s. 156.

Origin of Goods

35.1 (1) Subject to any regulations made under subsection (4), proof of origin, in the prescribed form containing the prescribed information and containing or accompanied by the information, statements or proof required by any regulations made under subsection (4), shall be furnished in respect of all goods that are imported.

(2) Proof of origin of goods shall be furnished under subsection (1) to an officer at such time and place and in such manner as may be prescribed.

(3) Subject to any regulations made under subsection (4), proof of origin of goods shall be furnished under subsection (1) by the importer or owner thereof.

(4) The Governor in Council, on the recommendation of the Minister and the Minister of Finance, may make regulations

(a) specifying persons or classes of persons who are authorized to furnish proof of origin of goods under subsection (1) in lieu of the importer or owner thereof and prescribing the circumstances in which and the conditions, if any, under which such persons or classes of persons are so authorized;

(b) specifying information required to be contained in, or to accompany, the prescribed proof of origin form in addition to the prescribed information and specifying any statements or proof required to be contained therein or to accompany that form; and

(c) exempting persons or goods, or classes thereof, from the requirements of subsection (1) subject to such conditions, if any, as are specified in the regulations.

(5) Preferential tariff treatment under a free trade agreement may be denied or withdrawn in respect of goods for which that treatment is claimed if the importer, owner or other person required to furnish proof of origin of the goods under this section fails to comply with any provision of this Act or the Customs Tariff, or any regulation made under either of those Acts, concerning that preferential tariff treatment.

(6) [Repealed, 1997, c. 14, s. 37]

1988, c. 65, s. 69; 1992, c. 28, s. 9; 1993, c. 44, s. 84; 1996, c. 33, s. 30; 1997, c. 14, s. 37.

Abandoned Goods

36. (1) The owner of goods that have been imported but have not been released may, with the authorization of an officer and subject to the conditions set out in subsection (2), abandon the goods to Her Majesty in right of Canada.

(2) Any person who abandons goods to Her Majesty under subsection (1) is liable for all reasonable expenses incurred by Her Majesty in the disposal of the goods where they are disposed of otherwise than by sale.

Unclaimed Goods

37. (1) Goods, other than goods of a prescribed class, that have not been removed from a customs office, sufferance warehouse or duty free shop within such period of time as may be prescribed may be deposited by an officer in a place of safe-keeping designated by the Minister for that purpose.

(2) Goods, other than goods of a class prescribed by regulations made under subparagraph 99(f)(xii) of the Customs Tariff, that have not been removed from a bonded warehouse within such time as may be prescribed by regulations made under subparagraph 99(f)(xi) of that Act may be deposited by an officer in a place of safe-keeping designated by the Minister for that purpose.

(3) The Minister may extend any period of time prescribed pursuant to subsection (1) or (2) in respect of any particular goods.

(4) A place of safe-keeping referred to in this section shall, for the purposes of this Act, be deemed to be a customs office.

R.S., 1985, c. 1 (2nd Supp.), s. 37; 1993, c. 25, s. 74; 1995, c. 41, s. 12; 1997, c. 36, s. 157.

38. (1) Goods that are deposited in a place of safe-keeping pursuant to section 37 shall be kept there at the risk of the owner and importer thereof, and the owner and importer are jointly and severally liable for such storage charges as may be prescribed and any expenses incurred in moving the goods from the customs office, sufferance warehouse, bonded warehouse or duty free shop to the place of safe-keeping.

(2) No goods shall be removed by any person other than an officer from a place of safe-keeping referred to in section 37 until the charges and expenses referred to in subsection (1) have been paid.

39. (1) Goods that have not been removed from a place of safe-keeping referred to in section 37 within such period of time after they were deposited therein as may be prescribed are, at the termination of that period of time, forfeit.

(2) The importer of goods that are forfeit under subsection (1) and the owner thereof at the time of forfeiture are jointly and severally liable for all reasonable expenses incurred by Her Majesty in right of Canada in the disposal of the goods where they are disposed of otherwise than by sale.

Goods of a Prescribed Class

39.1 (1) Goods of a prescribed class that have not been removed from a customs office, sufferance warehouse or duty free shop within such period of time as may be prescribed are, at the end of that period of time, forfeit.

(2) Goods of a class prescribed by regulations made under subparagraph 99(f)(xii) of the Customs Tariff that have not been removed from a bonded warehouse within such period of time as may be prescribed by regulations made under subparagraph 99(f)(xi) of that Act are, at the end of that period of time, forfeit.

1993, c. 25, s. 75; 1995, c. 41, s. 13; 1997, c. 36, s. 158.

Records

40. (1) Every person who imports goods or causes goods to be imported for sale or for any industrial, occupational, commercial, institutional or other like use or any other use that may be prescribed shall keep at the person's place of business in Canada or at such other place in Canada as may be designated by the Minister such records in respect of those goods in such manner and for such period of time as may be prescribed and shall, where an officer so requests, make them available to the officer and answer truthfully any questions asked by the officer in respect of the records.

(2) Where, in the opinion of the Minister, a person has not kept records in Canada in accordance with subsection (1), the Minister may request that person to keep records in Canada and to comply with subsection (1) in respect thereof.

(3) Every person who is

(a) granted a licence under section 24,

(b) authorized under paragraph 32(6)(a) or subsection 32(7) to account for goods,

(c) granted a certificate under section 90 of the Customs Tariff, or

(d) granted a licence under section 91 of that Act,

shall keep at that person's place of business or at such other place as may be designated by the Minister such records in respect of such goods in such manner and for such period of time as may be prescribed and shall, where an officer so requests, make them available to the officer and answer truthfully any questions asked by the officer in respect of the records.

(4) Where, in the opinion of the Minister, a person has not kept records in respect of goods in accordance with subsection (3), the Minister may request that person to comply with that subsection in respect of the goods.

R.S., 1985, c. 1 (2nd Supp.), s. 40; 1992, c. 28, s. 10; 1993, c. 44, s. 85; 1995, c. 41, s. 15; 1997, c. 36, s. 159.

41. (1) Any goods imported by or on behalf of a person to whom a request is made under subsection 40(2) at any time after the request is made may be detained by an officer at the expense of that person until the request is complied with.

(2) Goods that are detained under subsection (1) may be deposited in a place of safe-keeping in accordance with subsection 37(1) as if they were unclaimed and may be dealt with thereafter under sections 37 to 39.

42. An officer may at all reasonable times enter any premises or place where records are kept pursuant to section 40 and audit or examine such records.

Verifications

42.01 An officer, or an officer within a class of officers, designated by the Minister for the purposes of this section, may conduct a verification of origin (other than a verification of origin referred to in section 42.1), verification of tariff classification or verification of value for duty in respect of imported goods in the manner that is prescribed.

1997, c. 36, s. 160.

Verifications under a Free Trade Agreement

Conduct of Verification

42.1 (1) Any officer, or any officer within a class of officers, designated by the Minister for the purposes of this section, or any person, or any person within a class of persons, designated by the Minister to act on behalf of such an officer, may, subject to the prescribed conditions,

(a) conduct a verification of origin of goods for which preferential tariff treatment under a free trade agreement is claimed

(i) by entering any prescribed premises or place at any reasonable time, or

(ii) in the prescribed manner; or

(b) enter any prescribed premises or place at any reasonable time to verify the amount, if any, of

(i) a relief under section 89 of the Customs Tariff from the payment of any duties payable in respect of imported goods that are subsequently exported to a NAFTA country, or

(ii) a drawback under section 113 of the Customs Tariff of duties paid in respect of imported goods that are subsequently exported to a NAFTA country.

(2) If an exporter or producer of goods that are subject to a verification of origin under paragraph (1)(a) fails to comply with the prescribed requirements or, in the case of a verification of origin under subparagraph (1)(a)(i), does not consent to the verification of origin in the prescribed manner and within the prescribed time, preferential tariff treatment under a free trade agreement may be denied or withdrawn from the goods.

1993, c. 44, s. 86; 1995, c. 41, s. 16; 1997, c. 14, s. 38, c. 36, s. 161.

Statement of Origin

42.2 (1) On completion of a verification of origin under paragraph 42.1(1)(a), an officer designated under subsection 42.1(1) shall provide the exporter or producer whose goods are subject to the verification of origin with a statement as to whether the goods are eligible, under the Customs Tariff, for the preferential tariff treatment that was claimed.

(2) A statement referred to in subsection (1) must include any findings of fact or law on which it was based.

1993, c. 44, s. 86; 1997, c. 14, s. 38, c. 36, s. 162.

Effective Date of Re-determination of Origin

42.3 (1) In this section, "customs administration" has the meaning assigned to that expression by Article 514 of NAFTA or Article E-14 of CCFTA, as the case may be.

(2) Subject to subsection (4), a re-determination or further re-determination of origin does not take effect until notice of it is given to the importer of the goods and any person who completed and signed a Certificate of Origin for the goods if the result of the re-determination or further re-determination of origin made under subsection 59(1) in respect of goods for which preferential tariff treatment under NAFTA or preferential tariff treatment under CCFTA is claimed and that are the subject of a verification of origin under this Act is that

(a) the goods are not eligible for that preferential tariff treatment on the basis of the tariff classification or value of one or more materials used in their production; and

(b) that tariff classification or value differs from the tariff classification or value applied to those materials by the NAFTA country from which the goods were exported or from Chile, as the case may be.

(3) A re-determination or further re-determination of origin referred to in subsection (2) shall not be applied to goods imported before the date on which the notice was given if the customs administration of the NAFTA country from which the goods were exported or of Chile, as the case may be, has, before that date,

(a) given an advance ruling under Article 509 of NAFTA or Article E-09 of CCFTA, as the case may be, or given another ruling referred to in paragraph 12 of Article 506 of NAFTA or paragraph 12 of Article E-06 of CCFTA, as the case may be, on the tariff classification or value of the materials referred to in subsection (2); or

(b) given consistent treatment with respect to the tariff classification or value of the materials referred to in subsection (2) on their importation into the NAFTA country or Chile, as the case may be.

(4) The date on which a re-determination or further re-determination of origin referred to in subsection (2) takes effect shall be postponed for a period not exceeding ninety days if the importer of the goods that are the subject of the re-determination or further re-determination, or any person who completed and signed a Certificate of Origin for the goods, establishes to the satisfaction of the Minister that the importer or the person, as the case may be, has relied in good faith, to the detriment of the importer or person, on the tariff classification or value applied to the materials referred to in that subsection by the customs administration of the NAFTA country from which the goods were exported or of Chile, as the case may be.

1993, c. 44, s. 86; 1997, c. 14, s. 38, c. 36, s. 163.

Denial or Withdrawal of Benefit of Preferential Tariff Treatment under NAFTA or CCFTA

42.4 (1) In this section, "identical goods" has the meaning assigned to that expression by Article 514 of NAFTA or Article E-14 of CCFTA, as the case may be.

(2) Notwithstanding section 24 of the Customs Tariff, the Minister may, subject to the prescribed conditions, deny or withdraw preferential tariff treatment under NAFTA or preferential tariff treatment under CCFTA in respect of goods for which that treatment is claimed if the exporter or producer of the goods has made false representations that identical goods exported or produced by that exporter or producer and for which that treatment was claimed were eligible for that treatment.

1993, c. 44, s. 86; 1997, c. 14, s. 38, c. 36, s. 164.

42.5 and 42.6 [Repealed, 1997, c. 14, s. 38]

Production of Documents

43. (1) The Minister may, for any purpose related to the administration or enforcement of this Act, including the collection of any amount owing under this Act by any person, by notice served personally or by registered or certified mail, require any person to provide any records, books, letters, accounts, invoices, statements (financial or otherwise) or other documents or information at a place specified by the Minister and within such reasonable time as may be stipulated in the notice.

(2) Any person who is required to provide any records, books, letters, accounts, invoices, statements or other documents or information under subsection (1) shall, notwithstanding any other law to the contrary but subject to subsection (3), do so as required.

(3) The definitions "lawyer" and "solicitor-client privilege" in subsection 232(1) of the Income Tax Act, and subsection 232(2) of that Act, apply with respect to a requirement under subsection (1) as if the reference in subsection 232(2) to section 231.2 of that Act were a reference to this section.

R.S., 1985, c. 1 (2nd Supp.), s. 43; 2000, c. 30, s. 160.

Advance Rulings

43.1 (1) Any officer, or any officer within a class of officers, designated by the Minister for the purposes of this section shall, before goods are imported, on application by any member of a prescribed class that is made within the prescribed time, in the prescribed manner and in the prescribed form containing the prescribed information, give an advance ruling with respect to

(a) whether the goods qualify as originating goods and are entitled to the benefit of preferential tariff treatment under a free trade agreement; and

(b) in the case of goods exported from a NAFTA country or from Chile, any other matter concerning those goods that is set out in paragraph 1 of Article 509 of NAFTA or in paragraph 1 of Article E-09 of CCFTA, as the case may be.

(2) The Governor in Council may make regulations respecting advance rulings, including regulations respecting

(a) the application of an advance ruling;

(b) the modification or revocation of an advance ruling, including whether the modification or revocation applies retroactively;

(c) the authority to request supplementary information in respect of an application for an advance ruling; and

(d) the circumstances in which the issuance of advance rulings may be declined or postponed.

1993, c. 44, s. 87; 1996, c. 33, s. 33; 1997, c. 14, s. 39.

PART III
CALCULATION OF DUTY

Duties Based on Percentage Rates

Valuation for Duty

44. Where duties, other than duties or taxes levied under the Excise Tax Act or the Excise Act, are imposed on goods at a percentage rate, such duties shall be calculated by applying the rate to a value determined in accordance with sections 45 to 55.

Interpretation

45. (1) In this section and sections 46 to 55,

"computed value" means, in respect of goods, the value of the goods determined in accordance with section 52;

"country of export" means, in respect of goods, the country from which the goods are shipped directly to Canada