Canada to Require Correct 10-Digit HS Number

April 2002

Beginning on May 1, 2002, the Canada Customs and Revenue Agency (CCRA) will require that most commercial shipment invoices list the correct 10-digit Harmonized System (HTS) number before a shipment can be released. The requirement applies to all paper and electronic Release on Minimum Documentation (RMD) and Pre-Arrival Review System (PARS) releases that are valued at CAN $1,600 or more. The new requirement will not alter the current Canada Customs Invoice form that is now used by commercial importers, nor does it alter any other 10-digit HS number requirement that is already in place, such as machine release and other government department releases. It is also not expected to change the current HS number requirements on NAFTA certificates of origin.

The rule requires that when a shipment contains more that one good, the 10-digit HS number must reflect either (1) the highest value invoice line of the shipment; or (2) a reasonable representation of the goods contained in the shipment. In the case of multiple page invoices, the HS number should be displayed on the first page with a notation of the page and line of the good to which the number applies (if the good is not listed on the first page of the invoice).

Sources of the CCRA stated unofficially that release of goods will be delayed until the correct HS number is provided if it is not originally furnished. The source also stated that if, after the release of the goods, it is discovered that the HS number provided was incorrect, the CCRA may issue warnings and penalty actions. However, the Commerce Department's Office of Textiles and Apparel (OTEXA) issued a notice stating that because AMPS has for the most part replaced seizures and forfeitures for technical violations, seizure and determined forfeiture will only be applied for serious violations.