SOR/86-1011198610
2
200512
14
20196
22
CUSTOMS ACTImported Goods Records RegulationsP.C.1986-2260198610
2
Whereas, pursuant to subsection 164(3) of the Customs Act, a copy of proposed Regulations, substantially in the form annexed hereto, was published in Part I of the Canada Gazette on March 15, 1986 and a reasonable opportunity was thereby afforded to interested persons to make representations with respect thereto to the Minister of National Revenue;Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 40(1) and paragraph 164(1)(i) of the Customs Act*, is pleased hereby to make the annexed Regulations respecting the keeping of records by persons who import goods or cause goods to be imported for sale or for any industrial, occupational, commercial, institutional or other like use, effective on the coming into force of subsection 40(1) and paragraph 164(1)(i) of the Customs Act*.S.C. 1986, c. 1
[Repealed, SOR/2005-384, s. 2]
Interpretation
In these Regulations,Act means the Customs Act; (Loi)commercial goods means goods imported into Canada for sale or for any industrial, occupational, commercial, institutional or other like use. (marchandises commerciales)CSA importer has the same meaning as in section 2 of the Accounting for Imported Goods and Payment of Duties Regulations. (importateur PAD)SOR/93-554, s. 1; SOR/2005-384, s. 3
General
Every person who is required by subsection 40(1) of the Act to keep records in respect of commercial goods shall keep, for the period of six years following the importation of the commercial goods, all records that relate tothe origin, marking, purchase, importation, costs and value of the commercial goods;payment for the commercial goods;the sale or other disposal of the commercial goods in Canada; andany application for an advance ruling made under section 43.1 of the Act in respect of the commercial goods.In addition to the requirements of subsection (1), every CSA importer shall keep, for the period of six years following the importation of the commercial goods,records that provide a description and the quantity of the commercial goods;records relating to the reception of the commercial goods;records showing the credits and adjustments used to determine the amount paid for the commercial goodsrecords relating to the accounting for the commercial goods;records relating to any refund, drawback or re-determination of duties;a list of vendors and consignees of the commercial goods; andrecords relating to the information needed to complete the form entitled “CSA Revenue Summary” in respect of the commercial goods and to the payment of duties on those goods.SOR/89-67, s. 1; SOR/89-482, s. 1; SOR/93-554, s. 2; SOR/97-70, s. 1; SOR/2005-384, s. 4; SOR/2006-153, s. 1
In addition to the records referred to in section 2, a person who imports or causes to be imported commercial goods that have been released free of duty or at a reduced rate of duty because of their intended use or because they were intended to be used by a specific person shall keep, for the same period of time referred to in that section,a certificate or other record signed by the user of the commercial goods that shows the user’s name, address and occupation and indicates the actual use made of the commercial goods;in the case where the commercial goods have been released free of duty under tariff item No. 9948.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff, an attestation signed by the person who imports the goods or causes them to be imported indicating the person’s name, address and occupation and the intended use of the commercial goods, sufficient to confirm that the goods fall within the description of goods corresponding to that tariff item; orin the case where the commercial goods have been diverted to a use other than that on the basis of which they were released free of duty or at a reduced rate of duty or have been sold or otherwise disposed of to a person not entitled to have the commercial goods so released, records that contain information sufficient to confirm that the full applicable duties have been paid.SOR/89-67, s. 2(F); SOR/93-554, s. 2; SOR/2015-82, s. 1
For the purposes of subsection 40(3) of the Act, commercial goods are the prescribed goods and every person who is required to keep records under that subsection shallwhere the person has been issued a licence under section 24 of the Act for the operation of a place as a sufferance warehouse, keep all records that contain information concerning the receipt of commercial goods into it, and the removal of those commercial goods from it, for the period of six years after the receipt of the commercial goods into it;where the person has been issued a licence under section 24 of the Act for the operation of a place as a duty free shop, keep all records that relate to commercial goods received into it, for the period of six years after the sale or other disposal of those commercial goods, including all records that contain information concerningthe accounting for the commercial goods,the sale or disposal of the commercial goods from the duty free shop,the actual selling price of the commercial goods in the duty free shop and the manufacturer’s suggested retail price,the amount that the person paid for the commercial goods,the control of inventory in the duty free shop,the composition of the inventory in the duty free shop,the remittance of fees to the Department of National Revenue, orthe size of the display area allocated in the duty free shop to the commercial goods;where the person has been issued a licence under subsection 91(1) of the Customs Tariff for the operation of a bonded warehouse, keep all records that relate to commercial goods received into it and commercial goods removed from it, for the period of six years after their removal, including all records that contain informationdescribing the commercial goods when they are received into or exported from the bonded warehouse,accounting for the commercial goods when they are removed from the bonded warehouse,concerning inventory and the transactions that occur while the commercial goods are in the bonded warehouse,concerning the transfer of ownership in respect of the commercial goods,concerning the transfer of the commercial goods to another bonded warehouse, to a sufferance warehouse or to a duty free shop, orconcerning the unpacking, packing, manipulation or alteration of the commercial goods, or any combining of those commercial goods with other goods; andwhere the person has been issued a certificate under subsection 90(1) of the Customs Tariff, keep all records that relate to commercial goods in respect of which relief from the payment of duties has been granted under section 89 of that Act, for the period of six years after the relief is granted, including all records that contain information concerningthe importation of the commercial goods,the processing in Canada of the commercial goods,the amount of relief granted on the commercial goods,the sale or transfer, between persons to whom certificates have been issued, of the commercial goods,the payment, under subsection 118(1) of the Customs Tariff, of an amount equal to the amount of the duties on any of the commercial goods that have been transferred, sold or disposed of, orthe inventory in Canada of the commercial goods.SOR/96-31, s. 3; SOR/98-53, s. 4; SOR/2006-153, s. 2
The records referred to in sections 2 to 3.1 shall be kept in such a manner as to enable an officer to perform detailed audits of the records and to obtain or verify the information on which a determination of the amount of the duties paid, payable, deferred, refunded or relieved was made.SOR/89-67, s. 3(F); SOR/96-31, s. 3; SOR/2006-153, s. 3
The records referred to in sections 2 to 3.1 may be copied by means of any photographic, microphotographic or image processing process that is in accordance with National Standard of Canada CAN/CGSB-72.11-93, Microfilm and Electronic Imaging as Documentary Evidence, published by the Canadian General Standards Board in November 1993, as amended from time to time, and kept in that format for the period prescribed in those sections.SOR/89-67, s. 4; SOR/96-31, s. 3
The records referred to in sections 2 to 3.1 may be kept electronically or on machine-sensible data media if the electronic file or media can be related back to the source documents and is supported by a system capable of producing accessible and readable copy.SOR/93-554, s. 3; SOR/96-31, s. 3; SOR/2005-384, s. 5
Enforcement
Where a person, other than a person referred to in section 3.1, has not kept records in accordance with these Regulations, preferential tariff treatment under NAFTA, preferential tariff treatment under CCFTA or preferential tariff treatment under CCRFTA, as the case may be, may be denied or withdrawn in respect of the commercial goods that are the subject of those records.SOR/93-554, s. 3; SOR/97-329, s. 1; SOR/2004-125, s. 1
Where a person, other than a person referred to in section 3.1, who is required to produce records in accordance with subsection 43(1) of the Act fails to do so, preferential tariff treatment under NAFTA, preferential tariff treatment under CCFTA or preferential tariff treatment under CCRFTA, as the case may be, may be denied or withdrawn in respect of the commercial goods that are the subject of those records.SOR/93-554, s. 3; SOR/97-329, s. 1; SOR/2004-125, s. 1