Canada Extends Timelines for Customs Duty Payments; CBSA Said to Suspend Trade Compliance Verification
The deadline for customs payments to the Canada Border Services Agency will be extended due to the COVID-19 outbreak, the agency said in bulletin on March 27. “The timeframe for all payments due to the Agency (duties and taxes on regular imports, re-assessments, penalties, etc) is extended to June 30, 2020,” it said. “This also includes charges on the statement of account of March due on April 1. The CBSA will change the due date automatically, there is no need for companies to apply for the extension.”
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The extension followed an announcement from Prime Minister Justin Trudeau authorizing the delayed payments. “This measure is the equivalent of providing up to $30 billion in interest-free loans to Canadian businesses,” he said. “It will help businesses so they can continue to pay their employees and their bills, and help ease cash-flow challenges across the country.” The CBSA also issued a customs notice on the subject.
The CBSA may also be stopping its trade compliance activities, according to a blog post from Cyndee Todgham Cherniak, a LexSage lawyer in Canada. A CBSA trade compliance officer notified Cherniak March 26 to say such activities are suspended. The agency “will temporarily suspend trade compliance activity interaction with importers/exporters and representatives until April 20, 2020,” the officer told Cerniak. “Effective immediately, all deadlines imposed in connection with the verification are automatically extended by a period of time equivalent to the period of suspension. Given the circumstances, the length of this suspension period may be re-evaluated at a later date. For greater clarity, the CBSA is continuing to process drawback claims, applications for the Duties Relief Program, and B2 requests for adjustments, and these are unaffected by this temporary suspension.” The CBSA didn't comment.
The suspension of current trade compliance verification activities “is just a delay,” Cerniak said. “Importers still must comply with Canada’s import and customs laws. Verifications and enforcement actions will start again. Any errors made during the COVID-19 pandemic crisis may be the subject of a future verification.”
Meanwhile the Canadian Food Inspection Agency said in a March 27 email that it is trying to keep up with requests from importers. “The CFIA is aware that the COVID-19 pandemic is having operational impacts for our industry partners,” the agency said. “The National Import Service Centre is working to prioritize the workload, while experiencing a higher call volume than normal. Please refrain from calling to check on the status of your shipment, unless submitted via [Integrated Import Declaration (IID)] and four hours has passed since submission.” Industry can also use the email address cfia.nisc-csni.acia@canada.ca to inquire about shipments, it said.