There's a lot to know about moving goods across the border. The customs landscape—riddled with complex processes and mired in legalese and industry lingo—can be perplexing and frustrating. Nevertheless, importers need to do it right—by knowing their roles and responsibilities and, sometimes, by seeking professional support.
CBSA provides this refreshingly readable explanation on advance rulings. There are four different types.
- A national customs ruling outlines how provisions of existing customs legislation apply to imported goods
- An advance ruling on tariff classification defines the category for applying the tariff, tax and/or duty on an imported product
- An advance ruling on origin defines the country of manufacture, production, or growth where an article or product comes from
- An advance ruling on valuation defines a product’s value that is used to assess the amount of import duty and other taxes owed
- Improved customs compliance. Customs rulings provide clarity, eliminating the potential for accidental non-compliance.
- Improved transparency with customs. Requesting a customs ruling demonstrates an importer’s commitment to due diligence in their compliance practices, mitigating against audits, penalties and interest.
- Save money. Get it right the first time and have no surprise costs at the border. Also, some customs rulings result in the classification of goods as duty-free, even retroactively—up to four years before the date of accounting.