PART 9-ADJUSTEMNTS AND CORRECTIONS

Corrections

Before the payment due date

A correction is an amendment made after the CAD is submitted and accepted, but before 11:59 PM ET on the payment due date.

ADJUSTMENT

After the payment due date

An adjustment is used after the CAD has passed its payment due date and is considered finalized.

NO TRIGGER CBSA INTERVENTION

Changed made with the correction period are considered voluntary and interest-free, and they will not trigger CBSA intervention during this time.

Supporting documentation must be submitted

If the correction results in a reduction of the amount owed to CBSA,_____________-_________

Only importers enrolled in the Release prior to payment(RPP) program are eligible to make corrections.

True

CCP

Supporting documents can only be attached through the CCP

Adjustment period -need the supporting documentation

Supporting documentation is required for all changes resulting in refunds during the adjustment period and must be uploaded via the CCP.

TCP

TRADE CHAIN PARTER

Statement of Adjustment(SoAdj)

Adjustments will be reflected on a ________

There are three types of adjustments under the Customs Act: 

• corrections;

• abatements; and 

• refunds. 

Correction under the adjustment -May result in either a payment of addtional duties and taxes, or they may be revenue neutral.

Corrections must be made within 90 days of having “reason to believe

Abatements

 

An abatement is a reduction, or a decrease in the amount of duties and taxes that must be paid when the goods have suffered damage, deterioration, or destruction.  

 

Abatements are typically a partial refund of the duties and apply to specific goods, such as fragile items and perishables.  Within the industry they are referred to as refunds.    

Abatements are not mandatory and are legislated under Section 73 and 74 of the Customs Act. 

 

Abatements must be filed within 4 years. 

Refunds

A refund is a return of the duties paid to the importer.

 

While it is permitted under the Customs Act, Sections 74 and 76, it is not mandated.

It is presumed that if monies are to be refunded an importer would be motivated to file the refund. 

 

Refunds must be filed within 4 years. 

 

Subsections 32.2(1); 32.2(2); or 32.2(6) of the Customs Act. 

In cases where money is owing to the Receiver of General or the end result is revenue neutral, corrections or adjustments

Customs act-32.2

Applied when there are monies owed to the Receiver General or the correction is revenue neutral.

Section 74 or 76 applied

If monies are to be returned to the importer.

74(1)(a) of the customs Act

A refund cannot be filed for goods damaged after the shipment has been released.

BUT — the CSCB text adds a special rule INSIDE 74(1)(a)-“The amount of abatement allowed for perishable or brittle goods, such as glassware or china, is 85% of the duties paid on the loss in value of the goods.85% abatement for brittle goods, even if the breakage is discovered after release.

2

A refund on excise tax must be filed with____years after the payment of the excise tax. Indicate your answer numerically.

90

A correction must be filed within ____days of having "reason to believe". Indicate your answer numerically.

4 years

A refund request to change the tariff classification of imported goods must be filed within ________________ of the date of accounting.

True

A correction must be submitted electronically

3

There are____types of adjustments under the Customs Act.

SoAdj

Once an adjustment has been processed and a decision has been rendered, the CBSA will issue a

______

60 days

An importer can request a rebate of the GST on unused, importer goods that were exported within ____ days after their release

Match the legislative reference with the reason for the correction or adjustment.

2 The quantity of goods released is less than the quantity upon which duty was paid. 3 The goods are of inferior quality.  4 An error was made in the rate of exchange. 1 Goods suffered deterioration while en route to Canada. 5 An error was made in classifying the goods.

1. Section 74(1)(a) 2. Section 74(1)(b) 3. Section 74(1)(c) 4. Section 74(1)(d) 5. Section 74(1)(e)

abatement

An______

is a reduction, or decrease in the amount of duties and taxes that must be paid when the goods have suffered damage, deterioration, or destruction.

4 years

under Subsection 32.2(4) of the Customs Act, there is still an obligation to make a correction, even after 90 days has passed. That obligation ends _____ after accounting and any corrections made after the 90-day time period and before the four years from the date of accounting are subject to penalties under the AMPS. 

The Voluntary Disclosure Program (VDP)

______________ is a mechanism intended to encourage voluntary compliance with the accounting and payment of duty and tax provisions under the Customs Act, Customs Tariff Act  and Excise Tax Act. Its application is limited to penalty and interest charges resulting from infractions of the provisions governing accounting and payment.