Customs Bonded Warehouse Data Transmission
25 Jul 2010 17:36:11 PST
- This notice is for the attention of all parties involved in the Bonded Warehouse Program, and its purpose is to clarify the procedures for clients who transmit a B3, Canada Customs Coding Form, type 10, to the Canada Border Services Agency (CBSA) via Electronic Data Interchange.
- All bonded warehouse B3 forms, as well as CADEX packages, must be submitted in a grey wrapper. The grey wrapper will be imprinted with the following information: "RMD CADEX," warehouse name, bonded warehouse licence number, and the type, e.g. "type 10."
- No type B3, Canada Customs Coding Form, or supporting documentation will be stamped "released" unless the goods are being removed from the warehouse for domestic consumption (use) in Canada on a B3 type 20. The B3 type 10 is the in warehouse control document. All fields of the B3 documentation must be completed accurately. Of particular note, field 44 must contain complete warehouse licence information consisting of the port code, where the bonded warehouse is located, the letter 'W' and the bonded warehouse number assigned by that port office.
- Form B3 type 10 is used for all in warehouse transactions. The B3 type 13 is used for re warehouse transactions. Both may be closed, or the quantity of goods depleted, by one of the following:
- B3 type 20, for all goods ex-warehoused for domestic consumption and may use remission authority if applicable;
- B3 type 21, ex-warehouse for export;
- B3 type 21, ex-warehouse for approved deficiencies such as damaged goods;
- B3 type 21, for approved deficiency such as short-shipped goods;
- B3 type 22, ex-warehouse to ships' stores;
- B3 type 22, ex-warehouse to Governor General and accredited representatives;
- B3 type 30, ex-warehouse to duty-free stores;
- B3 type 30, transfer of goods within a CBSA office or to another CBSA office;
- B3 type 30, transfer of ownership within a CBSA office, goods consigned to order in care of a bank;
- B3 type 30, transfer of ownership and goods to another CBSA office; and
- B3 type 30, transfer of goods to a sufferance warehouse.
- Cargo control documents - see Memorandum D3 1 1, Regulations Respecting the Importation, Transportation and Exportation of Goods.
- Form B116 (Red), Canada Customs Duty Free Shop Accounting Document.
- Form B3 ex-warehouse shall be bar coded by the importer/broker.
- Form B3 ex-warehouse must show the quantity and value of goods ex warehoused. Goods may be ex warehoused in different quantities and at different times from the original B3 type 10 in warehouse or B3 type 13 re warehouse document. Form B3 ex warehouse should show previous transaction numbers (i.e. B3 type 10 or type 13 in-warehouse for those goods). When it is not possible to link the quantity of goods being ex-warehoused with the quantity on an in warehouse B3 type 10 or B3 type 13, the goods may be considered ex warehoused, using First In/First Out (FIFO).
- The document required is the B3 type 21. The transaction detail lines will account for the full quantity on the in warehouse B3 type 10 or B3 type 13 and will require backup documentation, for example, a K11, Certificate of Damaged Goods, or the appropriate proof of shortage. Further information regarding shortages may found in Memorandum D17 1 5, Importing Commercial Goods.
Quantity and Units of Measure
- In particular, field 29, quantity, and field 30, unit of measure, are mandatory on all B3 bonded warehouse accounting documents. In cases where the Customs Tariff does not prescribe a unit of measure, the most logical unit for the commodity should be used. All subsequent warehouse transactions for that same commodity must then be documented using the same unit of measure as the in warehouse transaction. Failure to be consistent with the unit of measure will result in more time consuming audits for the warehouse keeper or operator. Field 16, date of direct shipment, on form B3 must be completed on type 10 transactions only. As goods should be ex warehoused at the same value that they were in warehoused, all bonded warehouse types, except type 10, must be documented in Canadian dollars. The value is based on the in warehouse transaction and, therefore, field 16 will not apply.
- Under the Bonded Warehouse Entry Program, clients may transmit B3 information to CBSA through either the Customs Automated Data Exchange program (CADEX), or Customs Declaration (CUSDEC) UN/EDIFACT format. However, the actual authorization by CBSA to move goods into a bonded warehouse location remains paper-based. This means that clients may not transmit a Release on Minimum Documentation (RMD) to request the movement of goods into a bonded warehouse.
- The movement of goods into a bonded warehouse requires CBSA authorization. Therefore, when CADEX/CUSDEC participants request CBSA authority to move a shipment into a bonded warehouse, they must present a CADEX/CUSDEC type 10 package. This package will be presented in a grey wrapper clearly indicating CADEX/CUSDEC, consisting of two or more copies of an invoice set and a cargo control document. Any explanatory notes normally placed on B3 forms will be required on the invoices.
- CBSA will make a decision to allow or disallow the movement. When the movement is authorized, the transaction record will be keyed into the Accelerated Commercial Release Operations Support System (ACROSS). One copy of the invoice set will be returned to the importer/broker with the same stamp from CBSA as it appears on B3 hard copies. This copy will serve as the importer/broker authority to transmit the B3 data through CADEX/CUSDEC.
- Participants of the Release Notification System (RNS), as well as the CADEX/CUSDEC client, will receive notification of the decision to allow the movement of the goods into the bonded warehouse. The transaction will be identified as a C type release. This will serve as authority to move goods into the inventory of the customs bonded warehouse, NOT as authority to release goods to a client.
- All remaining transactions (types 13, 20, 21, and 30) may be transmitted as CADEX/CUSDEC transactions without prior CBSA approval. However, goods may not be removed from the warehouse until the broker or warehouse operator receives the "transaction-accepted" message from CBSA. Warehouse operators may move goods only upon receipt of either:
- B3 that has been stamped by CBSA, or
- In the case of a CADEX/CUSDEC participant, a copy of the "transaction-accepted" message transmitted from CBSA to the participant.
- Movements into or out of a bonded warehouse will not be authorized without the necessary supporting documentation. Form B2 will be used to correct information that was not accurate at time of accounting and will be automatically reviewed by a CBSA officer. Determination of origins, valuation and tariff classification can take place only at time of accounting on the B3 type 20.
- Customs bonded warehouse operators are required to keep accurate and complete records. Records should include, but are not limited to, such documents as the B3 documents, purchase records, sales invoices, A8A Cargo Control documents, etc. Record keeping systems must be able to track the movement of all goods in the bonded warehouse, including:
- the movement into the warehouse;
- the movement while in warehouse;
- transfers to and from other licensed warehouses;
- records of allowable activities including manipulation, unpacking, packing, alteration, or combination with other goods in warehouse; and
- all ex-warehouse movements.
- General information on the nature and handling of warehouse documentation is available in the Customs Commercial System (CCS) user's manual and standard operating procedures.
- B3 customs documents should be submitted to the CBSA Port (field 4 of the B3 document) where the customs-bonded warehouse is located.
Source from: http://www.cbsa-asfc.gc.ca/publications/cn-ad/cn620-eng.html