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According to the CIFFA textbook, what is the main goal when a freight forwarder quotes a customer? What are the three stages of quoting? Quiz 1 This document helps plan the unloading and delivery by itemizing contents of cartons and crates. The information on this document indicates the amount the buyer must remit to the seller. When preparing an export shipment, what resources can you use to ensure your documentation is cor Which of the following parties is commercial documentation least relevant to? Where is the bulk of the commercial documentation prepared? In what currency are the amounts on the Commercial Invoice? When an export declaration isn't required, how is this indicated to the Canada Border Services Agency One of the revenue streams that you should advise clients about deals with offsetting the minimum lia carriers. What is it? An LCL ocean shipment has a freight rate of USD $55.00 per cbm/1,000 kg from Terminal Hong Kong Toronto. You have 100 skids, each weighing 100 kg. The dimensions of each skid are 48 in x 48 in x 4 is the total freight cost? An air shipment has 50 boxes, each weighting 10 kg and each has a dimensions of L30 cm x W1 m x H the rate is CAD $ 2 per kilogram from Toronto to Tokyo, what is the cost? This document is required in order for goods to qualify for preferential tariff treatment when clearing c their destination. What export reporting document is specifically required if goods are shipped through the U.S.A. for fu and exceed the value of CAD $2,000.00? An Export Declaration is covered under NDR and not required for Mexico because that information is r under CUSMA (formerly NAFTA)?
The most important document used by a customs broker in assessing import duties is the The commercial Invoice is the document that This document is used by the parties to ascertain duty free status among Canada, USA and Mexico. Which export declaration method is largely designed to facilitate low risk, low value bulk exports? Which of the following is not required in the completion of the Certificate of origin? Quiz 2 When the buyer importer issues an RFQ (request for quotes) to a seller, the seller's response, once ac the buyer becomes a legally binding contact. This seller's response in known as a This document has been replaced by CERS but formerly needed to accompany goods being exported valued at more than $2,000.00 What value needs to be invoiced to the customer in the bottom line of the commercial invoice of the shipment? Shipper: Ontario Mountain Equipment Coop, 1234 King St W, Toronto M5T 2S1,. Consignee: Burbury C Thames River Rd., Feltham, Middlesex., TW2 9DG, UK. Commodity: 200 Cartons of Rolled Gortex; the of each roll is 10 kg; the gross weight of each carton is 12 kg; the dimensions off each carton are 100 x 30 cm . The value of the goods is CAD 350.00/ carton. the HS Code is 9366.66.92.00. Packaging Mar Burberry, Feltham. Terms of Trade: CPT Burberry, Feltham, UK (Incoterm® 2020). Transportation book Canada : AC 1234 on December 16th, 2019. selling airfreight rate $2.00/kg, pre-carriage by truck @ C 350.00. Which one of the following parties is an acceptable nominee to sign the certificate of origin in attestin goods come from Canada when exporting Canadian goods? The COO is signed by 2 separate parties. Which one certifies that the company is a real one and that t legitimate? When preparing to receive an import shipment, what resource(s) would you be well advised to use to shipment clears customs without issue?
When is the Canada Customs Invoice, Form CI-1, required? Which Canadian government department issues the import permit? A customer is exporting 25 crates of barbina dolls by airfreight and each box contains 25 dolls. The co carriage is CAD$100.00 and the cost of each doll is CAD $10.00. The Incoterm® is FCA YYZ (Incoterm® 2020). Which of the following values should be put in the field for value of the goods in the CERS expo (formerly B13A)? Given US $1 = CAD $1.3 Which document was judged essentially a non-tariff barrier to trade and not an acceptable practice ac the World Trade Organization
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Who issues most phytosanitary certificates? The Export Control List (ECL) has seven groups that aim to prevent unauthorized exports and include What international convention regulates the traffic of poaching and smuggling animals that are at risk extinct? A fumigation certificate is acceptable to confirm treatment of non-manufactured wood packing materi exporting from Canada.
Which party is responsible for completing the commercial invoice in international trade transactions? When preparing an export shipment, which of the following resources would be helpful to ensure your documentation is correct? You are the agent for a touring group called Cirque du Soleil and it is performing a show in Frankfurt. equipment needs to clear customs in Germany today and they will be leaving for Hong Kong next wee document(s) would be most useful in this situation
Canada's current Area Control List includes which of the following countries? (select as many as apply Under the Canadian Customs Act, foreign exporters who ship goods from the US to Canada are requir full copies of their Canadian Imports for a period of 6 years Important Review from Logistics: Which of the following BEST describes the contracting parties to the Lading: Export controls from Canada are generally not stringent and difficult to but can be subject to governm sanctions. They would be most strict for:
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Which document(s) need to be certified by the consulate when a consular invoice/visa is required? This is used to reduce the administrative complexity and inefficiencies of exporting less sensitive good export controls
To gain new business Insurance CAD $1,250.00 The Packing List The Commercial Invoice No The manufacturer Costing, quoting, and invoicing Actual weight is 100 kg x 100 = 10,000 kg 100 x 48in x 48 in x 40 in = converting cubic inches into cubic metres divided by 61,023.744 = 151.023 cbm (volume weight). Volume weight is the chargeable weight. The rate is therefore 151.023 x 55 USD = USD $8,306.27 All of the resources mentioned here The Certification of Origin None, export reporting is done online through CERS In the country of export Whatever currency is agreed upon in the sales contract The NDR code is stated on the Bill of Lading
Pro Forma Invoice B13A Certificate of Origin CUSMA CAD $76,350.00 exporter Is the basis for entry and determination the amount of duties and taxes summary reporting in CERS clearance stamp by the Canada Border Services Agency The exporter/shipper/manufa cturer Canadian export guide, e.g., Migra The CBSA Your customs broker Your Freight Forwarder Company agents in the country of origin The CBSA Your customs broker Freight Forwarder
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Global Affairs Canada CAD $6350.00 The Consular Invoice It isn't, provided there is a complete Commercial Invoice Always, along with a commercial invoice If the Commercial Invoice is unsigned For Goods under $2500 It isn't, provided there is a complete Commercial Invoice Global Affairs Canada Canadian Border Services Agency The Import Controls Bureau Export Import Canada US $4884.62 CAD $2650.00 CAD $6250.00 CAD $6350.00 Question 5 options: The Import Permit The Export Permit The Consular Invoice The CITES Certificate
Canadian Food Inspection Agency UNCITES 0 Question 6 options: Migra Canadian Food Inspection Agency Global Affairs Canada CITES Question 7 options: Group 5 - Miscellaneous Goods and Technology (includes goods of US origin) Group 3 - Countries on Canada's Area Control List (ACL) Group 7 - Chemical and Biological Weapons Group 1 - Dual Use list for such goods that might be adapted for military use Group 3 - Countries on Canada's Area Control List (ACL) Question 8 options: ATA Carnet UNCISG UNCITES URC522
The A.T.A Carnet exporter CBSA Foreign Gov't websites Your bank or financial institution Destination Agents Migra's Foreign Govt Websites, Migras, Destination agents Question 11 options: Clearance Passports The CERS Export Declaration The A.T.A Carnet Temporary Import Permits Freight Forwarder Manufacturer Exporter Consignor Importer
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North Korea 0 Shipper and Carrier Countries on the Area Control List Russia Syria North Korea Myanmar Iran 1) Countries that are subject to a US embargo 2) Shipments to Cuba and Russia 3) Livestock and Animals 4) Countries on the Area Control List
General Export Permit Individual Export Permit General Export Permit G7 EDI Reporting Export Summary Reporting (filed through CERS) Check Migra's
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The CBSA Your customs broker Freight Forwarder
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3 Types of Documents (International Trade) 1. Transportation Documents issued by the carrier truck and rail bills of lading some cases, a receipt of the goods air waybill ocean bill of lading (ocean waybill) 2. Financial Documents refer to the payment options promissory note bill of exchange draft 3. Commercial Documents Differ for each country in the world. 3 Types of Commercial Documents 1. Commercial Invoice act as evidence of a contract of carriage between the carrier and the customer original bill of lading can be used to transfer the ownership of the goods freight forwarder plays a key role in the preparation the most important document issued in the import/export transaction.
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Pro forma invoice and commercial invoice are used interchangeably, but they should not be. They contain the same information, but pro forma invoice is not the final invoice and it is generally issued where there is no sale. Example: When shipping samples, promotional or exhibit goods. It is the estimated invoice issued by the exporter in advance of a shipment when it is needed. A good example would be when applying for a letter of credit or an import permit. However, when the actual shipment is made, the exporter will prepare the commercial invoice. Note that the delivery address may be different from the buyer's address. Incoterms identify which party pays for which logistics part of the shipment's journey, it will affect what is included in the price in the commercial invoice. terms of payment must be shown, either payment in advance or net 30 days, or payment by letter of credit. common mistake when completing the commercial invoice is the omission of currency. The exact currency must be shown.
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2. Packing List 3. Certificate of Origin Form "A" Certificate of Origin Free Trade Agreement Certificate of Origin Export Procedures 4. Documents for Custom Clearance for when goods leave a country Packing list is an excellent tool for the exporter and the importer to keep inventory. The exporter usually completes and signs this while packing the shipment and the receiver uses it to make sure that the shipment has been received in good condition. Mirrors the information in the commercial invoice itemizing packages, the contents of each package, their numbers, weights, and dimensions. key document because it is a declaration by the exporter that the goods contained in the export shipment are wholly obtained, produced, manufactured or processed in a particular country or countries. The exporter, manufacturer or their legal representative usually compeltes and signs the certificate of origin. The generic certificate of origin often requires the board of trade to add its certification. Freight forwarded may guide the exporter in completing the certificate of origin but should never issue or sign the free trade agreement certificate of origin. Sometimes the certificate must also be certified by a consulate or an embassy.
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Export Control List Area Control List Export Permits 2 Types of Export Permits Generally issued by the freight forwarder or the customs broker but always on behalf, and under the responsibility of the exporter as far as compliance is concerned. Governments all over the world want to have control over the export of goods. Generally, export controls are in place to regulate or prevent exports of military good, protect vulnerable industries, such as clothing manufacturing, obtain negotiated benefits from international agreements, implement trade restrictions in support of domestic supply chain programs, fulfil other international obligations and implement UN Security Council trade sanctions. Consits of 7 groups of commodities and products, mostly military (defence) equipment, and high tech or dual purpose goods, but also agricultural and forestry products. With some exception, these products require an export permit without any consideration for the country of destination. 1. Dual Use 2. Munitions 3. Nuclear Non-proliferation 4. Nuclear-related Dual Use 5. Miscellaneous Goods and Technology 6. Missile Technology Control Regime 7. Chemical and Biological Weapons non-proliferation List of countries to which an export permit is required, regardless of what is exported. The list changes periodically. Currently, there is only one country on the Canadian area control list, and that's North Korea. Exporters must be familiar with their countries' list of sanctions, as well as the UN sanctions. Canadian importers can consult the Global Affairs website and its global sanctions list. Depending on the circumstances, exported goods may require export permits.
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1. General 2. Individual Export Declaration Data Required in Form allows to export certain less-sensitive goods without having to submit an individual export permit application everytime. However, this export permit must be mentioned on the export declaration. Applies to goods under sanctions and on the export control list. This must be applied for with each such shipment and issued before the goods are shipped. This must be shown on the export declaration. must be filed for controlled or regulated goods that need export permits, regardless of value. It is required for export goods over a certain value or moving under certain conditions, although in most countries, export declaration are filed electronically. 1. Proof of report number is generated after the export declaration has been filed.It is provided to the carrier who will show it on the bill of lading as proof that the declaration was filed prior to the goods' departure. If no declaration is required "NDR" is noted. 5. The HS code of the country of export should be provided. Refer to the Customs Tariff. 2.Filing timelines: Ocean: not less than 48 hours prior to loading Air: not less than 2 hours prior to loading Train: not less than 2 hours prior to train assembly Other means: immediately prior to export live animals, persihables, time-sensitive goods, bulk goods: immediately prior to 6. For each line, the quantity and unit of measurement for each item must be listed, as specified by export classification requirements, or the import Customs tariff or the permit.
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8. Currency must be clearly identified. Import Procedures 3. The country of the goods' origin must be stated - grown, mined or manufactured. 7. The value of each item must be shown on each separate line. This value will include the freight charges, handling insurance or similar chargers incurred to the place of exit from Canada, minus any discounts entered into prior to exportation. 4. Complete description of the goods in normal trade terms with sufficient detail to verify the declared HS code, must be provided. General terms, e.g., groceries, machinery, are not acceptable. Part of the freight forwarder's duty and obligation with respect to imports is to educate the customer on what is required by Customs and when. Also, the forwarder's obligation is to communicate with the customers as well as with Customs. The documents necessary to clear customs at the country of destination are generally prepared by the freight forwarder or the customs broker but always on behalf and under the responsibility of the exporter or importer as far as compliance is concerned.
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Cargo Control Document Canada Customs Invoice Import Permit A.T.A. Carnet when goods arrive in a country, they must be customs cleared. Upon import, Customs assess duties and taxes. The commercial invoice usually provides sufficient information in this respect. However, in Canada, sometimes Canada Customs Invoice must be completed by the exporter, importer or their customs broker. This mainly applies in cases of related companies or when some expenses are not detailed in the commercial invoice and when royalties are involved. In Canada, import permits are required to support inter-governmental quotas, control or prevent the importation of endangered species, some agricultural and dairy product, textiles, and steel. There are cases when cargo is exported and imported into a country temporarily.
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Other Documents CITES Permit Phytosanitary Certificate Electronic Tracking Notes Weight Certificate Vessel Certificate It is valid only once in the country of departure, accompanies the goods through various countries where it gets stamped and comes back with the goods to the country of the carnet's issuance where it is cancelled and the deposit initially paid is refunded. IT is valid for a year. May be required as Customs have the right to audit documents related to a shipment when a discrepancy is found, the Canadian Customs Act requires importers and exporters to keep records for a period of 6 years following the importation or exportation. This requirement differs for various countries around the world. If shipping endangered species, the Convention on International Trade in Endangered Species of Wild Fauna and Flora must be followed and CITES permits for export and import are needed. Quite commonly requested for food, plant and animal products. Required by some west African countries. In this case, the exporter needs an authorized company to issue the electronic tracking note to confirm that the shipment is legitimate and the importer will require it at destination. Certain commodities that are sold by weight, for example cereals, may require a weight certificate. May be requested by a bank or an insurance company under letters of credit to confirm the age of the vessel. It is issued by the carrier on request.
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Certificate of Free Sale Export to the US and Mexico May be required by an importer from the exporter for pharmaceutical products that have not been tested in the importing country. 75% of all Canadian exports destined to the US, the US is Canada's biggest trade partner. The trade between Canada, the US and Mexico is further boosted by the Canada US Mexico free trade agreement - the CUSMA.
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guide and educate the customer and therefore must stay up to date with current documentary requirements of the countries of export, import, sometimes, the country of transit. Commercial documents are negotiable documents and with the exception of the certificate of origin, can transfer the ownership of the goods. FALSE ensures that the documentation is not only prepared correctly but also in a timely manner. if not, either the exporter will not get paid, or the importer will not receive the goods on time, causing additional expenses and dissatisfied customer. contractual document or evidence of contract between the exporter and importer, but it's not the only document of contract. As there may be purchase orders, order confirmations, sometimes there is an actual contract signed between the two parties. Usually issued by the exporter, although the freight forwarder may be sometimes involved especially when exporting to a new country. Important accounting document - the basis for the financial claim by the exporter.
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The description of goods should be detailed enough for a customs officer to see what it refers to. That means not only model numbers or item numbers but also a clearly understandable description of the goods, with HS codes, quantity, gross and net weights. Depending on the requirements of the country of destination, and the applicable incoterm, the relevant amount could either be itemized or not. Generally speaking, packaging is included but insurance or international freight may not simply because it is not paid by the exporter.Pre carriage by exporting carrier is not always available on the commercial invoice. Although not always required, it is mandatory in some countries that the commercial invoice is signed, preferably in blue ink. The omission of signature is another common mistake. The omission of date is the 3rd most common mistake on a commercial invoice. The document must be dated.
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No set format requisite for the packing list, except that it must conform to the requirements of the consignee and the regulations of the country of import. A properly completed packing list helps make the customs inspection faster. Also, in case of damage, it helps with the insurance claim. Mandatory in some countries to make the packing list available at the door inside the container. Although the commercial invoice shows the origin of the goods, some countries require a separate document. It is completed on a generic certificate of origin, unless a specific form is required. For example, under a certain free trade agreement. The purpose of this type of certificate of origin is to benefit from the lower rates of duty. sometimes required to get preferred import status for the merchandise in the country of destination.
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Libya Central African Republic Myanmar Ukraine Democratic Republic of Congo Nicaragua Venezuala Eritrea North Korea Yemen Iran Russia Sudan Iraq Somalia Syria Lebanon South Sudan Mali For example, Canada controls its exports by three mechanisms, the export control list, the area control list and the export and import permits act. 19 Countries for which Canada has sanctions.
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Clean Report of Findings Methods of filing For example, in Canada for items valued over CAD$2000 or moving in bond through the US. However, it is not needed for goods with a final destination in the US for domestic consumption. A pre-shipment inspection and certificate issued by an independent inspector may be requested by a customer or the importer because of the need in the country of destination or the kind of product Report indicating: -Pre-shipment inspection -That price has been verified -That goods conform to buyer's specification
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In Canada, the export declaration can be filed electronically, using the Canadian Export Reporting System (CERS), G7 electronic data interchange (EDI) export reporting or export summary reporting for low-risk, low value, bulk type commodities. The proof of report number that is generated after the export declaration has been filed is provided to the carrier who will show it on the bill of lading. This is proof that an export declaration has been filed prior to the goods' departure. If no export declaration is required, "NDR" is noted. In order for goods to be loaded and exported in a timely manner, and avoid penalties, the filing of an export declaration must adhere to strict timelines. These timelines vary according to the modes of transport.
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For example, in Canada, the carrier issues a cargo control document, sometimes also called arrival notice, manifest or advice note. It is a unique number assigned to that shipment to be Customs cleared before it is delivered. Sometimes shipments are cleared immediately upon arrival and sometimes they move in bond and stay in bond - at the port or a warehouse, rail or truck terminal or in case of consolidated shipments, in another location - until they are cleared. The process of import Customs clearance starts already at the foreign port of loading before the cargo is shipped. The shipment information is sent to the Customs of the importing country ahead of time, all data and documents are linked together and eventually, the cargo control document is matched with the transportation and commercial documents. The Canada Customs invoice is not necessary when the value of the imported goods is under CAD$3,300 Required by Customs but issued by Global Affairs Canada. This applies, for example, to commercial samples, exhibit goods or professional equipment. It is an international Customs document that acts like a passport for the goods so that they can be imported into a country duty and tax free. Goods travelling under ATA carnet do not require an export declaration.
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Not every country in the world accepts the ATA carnet, but approximately 80 countries do. The exporters should consult the World Customs Organization's website to ensure that they can use the ATA carnet for their shipment's destination. In US, the Lacey Act bans trafficking in illegal wildlife which includes such plant products as timber and paper. As such, anything made of wood - toys, tools, etc. must have a specific declaration completed.
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States that the pharmaceutical has already been cleared by the Health Department of the coutnry of export, in Canada that is Health Canada. In order to receive the CUSMA 0% duty benefits, products must comply with the rules of origin as stipulated in the agreement, and an origin certificate is required. There are some similarities but also differences between exporting to the US and Mexico from Canada.
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Supports the customs declaration anywhere in the world as it spells out the quantity, quality, and value of the goods at origin. It provides information to the government of the country of exportation.
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The exporter must apply for the ATA carnet at a Chamber of Commerce and supply a guarantee in the amount of 40% of the value of the goods.
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