Importers claiming MFN tariff treatment should ensure their shipping records clearly show the full route to Canada, including any transshipment points.
The Canada Border Services Agency (CBSA) has updated Memorandum D11-4-3 to clarify the MFN shipping requirements for imported goods claiming Most-Favoured-Nation tariff treatment.
Under the Direct Shipment Regulations, goods claiming MFN tariff treatment must be shipped directly to Canada from an MFN beneficiary country. However, transshipment through an intermediate, non-beneficiary country is permitted, provided the required conditions are met.
To support a claim for MFN tariff treatment, importers may use a through bill of lading (TBL) or other documentation that shows the shipping route and all points of shipment and transshipment before the goods are imported into Canada.
Either form of documentation must be made available to the CBSA upon request.
Transshipment through an intermediate country is permitted where importers can provide customs control documents showing that the goods remained under customs control in the intermediate country.
Importers must also be able to provide documentary evidence showing the full shipping route and all points of shipment and transshipment before importation.
Goods transported outside an MFN beneficiary country must not undergo further production or processing while in transit.
Permitted operations are limited to unloading, reloading, separation from a bulk shipment, storage, or other handling necessary to transport the goods to Canada or preserve them in good condition.
When requested, importers must provide copies of documents demonstrating that the goods remained under customs control and were not further processed while in a non-beneficiary country.
At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses manage their import requirements with greater clarity and confidence.
Reach out to one of our trade professionals to discuss how your shipping records and import documentation can support your MFN tariff treatment claims.