IBM 2004 – Specialized Freight Services

Instructor: Gus Lazopoulos

Assignment
Due Date: March 29th, 2022

Submitted by :-

Manpreet Singh 0777335

Tanuj Kumar 0774386

Vishakha Aggarwal 0760108

Jaspreet kaur 0774541

Satwinder Singh 0765545

1)What are the main departments involved in the development of customs legislation?
Products imported by individuals and many corporations like grocery and automobiles need to pay
the custom duty according to custom tariff. Income is being produced by federal government by
using custom duties for smooth run of Canadian economy.

Cbsa( Canada border service agency)

Department of finance Canada
Global affairs Canada
Goods should be classified according to customs by importers

Above are the departments involved in the development custom legislation.

2) What are the seven (7) main pieces of legislation that provide customs with the authority and
detailed regulations and procedures required to discharge their duties?
Ans: Customs Act: The Customs Act governs and enforces duty collection, as well as the
transportation of commodities to and from Canada. Though Canada Border Services Agency has
been given the power to execute the payment of taxes and duties required under other legislations.
However it is not a taxing statute. Purposely attempting to evade fee of duties; giving untrue
information verbally or in writing when obligated to produce statements accordance with the
provisions to the Customs Act and its regulatory requirements; removing documents or making
fake documents to mitigate adherence with the Customs Act; and illegal trading prohibited products
into Canada are just a few of the criminal offences under the Customs Act. Despite the fact that
these kinds of offences are sometimes mischaracterized as "regulatory," a conviction for them can
result in a criminal history and have a substantial affect on future career and foreign travel.
 Customs Tariff: Customs Tariff  provide the details of tariff procedures for goods originating from
countries with whom Canada has tariff agreements, and preferential tariff considerations for
goods coming from nations with which free trade agreement has been made by canada.  So this is
an  act to bring changes to the International Treaty on the Harmonized Goods Characterization and
Classification System. A ten-digit tariff code must always be applied to each importing item. The
tariff is used by raters to determine the correct tariff categorization.
Excise Act, 2001: Under the Excise Act of 2001, the Canada Revenue Agency published a wide
range of  documents that contain deeper details on administrative and legislative elements of
excise duties on wine, spirits, tobacco  and cannabis products. It is collected on the commodities
when they are imported to ensure that local businesses are not affected.

Excise Act: It levies excise duties on both imported and local beer.

Excise Tax Act: The Excise Tax Act is a Canadian act that levies excise taxes on certain items
sold or manufactured for sale. Part fourth of the Excise Tax Act establishes Canada's goods and
services tax, along with the excise taxes on petroleum, cigars, and other items . 
Special Import Measures Act:  the Special Import Measures Act establishes the rules and
processes for anti-dumping and countervailing duty actions. The Act is intended to safeguard
Canadian manufacturers who are mistreated  as a result of dumping or subsidy of goods imported
into the country. When imported items are offered in Canada at a reduced value than in the nation
of origin, this is known as dumping. Whereas, Subsidization happens when foreign
country provides financial support.

EIPA: Export and Import Permit Act:- The Export and Import Permits Act of Canada regulates the
international transfer of products and technology that the government deems critical for national
security. Sales to the United States are also subject to strict regulations.

3) What is the Customs Tariff Act?

Ans.Current Federal Customs Tariff describes how taxes are collected on commodities,
tariff classification, origination and the labelling process, revenue settlement and duty
relief and also an additional category of prohibited substances.  The term "tariff," also
referred to as customs duty is a fee imposed on the import of commodities through
national borders, typically by the head of the nation that is importing them.  Terms like
tariff, duty and customs are used interchangeably.  A Act to reduce the inconvenience
of customs and other charges and to make effective to the International Tradition of
Harmonization Merchandise Every item imported must be classified into an appropriate
tariff category that has the digits of ten.  In the end, rating agencies determine the
appropriate tariff classification according to the tariff.
4) What is the Excise Tax Act?
Ans: The Excise Tax Act authorizes and regulates GST. It also regulates Excise taxes on some
goods considered to be luxury items. When items are manufactured in Canada, excise duty is due
when they are delivered to the purchaser. The importer is responsible for paying excise duty at the
time the items are brought into the country. Moreover, Excise taxes are imposed on the sale or
production for sale of certain items in Canada under the Excise Tax Act. Part IX of the Excise Tax
Act establishes Canada's goods and services tax, in addition to excise taxes on petroleum
products, cigarettes, and other items (GST).
The general norm is that the excise duty is owed by the product's manufacturer. If the excise duty
is not paid and ownership of the commodity is passed to the buyer, the buyer/possessor of the
product may be held accountable.

5) What are the CBSA (Canada Border Services Agency) officials authorized to do under the
Customs Act?
Ans: The CBSA is responsible for delivering integrated border services that promote national
security interests and facilitate the free passage of people and goods, including animals and plants,
which comply with all program legislation criteria.
They inspect products brought in for personal or business use. At airports, seaports, railway
stations, and traffic crossings, they interact with the public. They operate as goodwill ambassadors
by being the first point of contact for newcomers. Furthermore,
 Examine, search, detain and seize goods
 Assist in the administration and enforcement of other legislation that controls the movement
of people and goods in and out of Canada.

6) What are zero-rated goods and services?

Ans: Zero-rated goods are exempt from GST and can claim a full input tax credit for GST paid on
goods or services purchased or rented to make or furnish zero-rated goods. Prescription drugs,
certain medical devices, basic groceries, agriculture and fishing, supplies for international
organizations and officials, precious metals, financial services, travel services (international portion
of services provided outside Canada), international freight transportation services, municipal transit
services, and exports are among the items included in this category.

7) What are non-taxable importations?

Ans: Non-taxable imported products are included in this list. Settlement effects, conveyances,
tourist baggage, foreign diplomats' effects, purchases made abroad by returning residents,
temporary exhibitions for public museums, awards and trophies won abroad, commodities donated
to charities, warranty replacements.
8) What is excise tax and what goods are subject to excise?
When products are produced in Canada Excise tax is due at the time the goods are delivered to
the purchaser. If they are imported, tax is due by the importer at the time the products were brought
into the country. In certain situations it is possible to claim a reimbursement of the excise tax you
paid. Tobacco, fuel, and alcohol are all subject to tax.

9) What is SIMA?
The CBSA is accountable in the management of Special Import Measures Act (SIMA) which aids to
safeguard Canadian industry from harm caused by subsidization and dumping of import products.

10.)What is “dumping”?
Dumping is an expression used in international trade. It's the case when a nation or business
exports a product at a cost that is less in the importer's foreign market than the market of the
exporter's home.

11.)What is “countervailing”?
The expression "countervailing duty" shall be taken to refer to an additional duty imposed to offset
any subsidy that is imposed directly or indirectly on the production, manufacturing and exportation
of an item according to the guidelines in Article 3 paragraph VI of GATT 1994.

12)What is EIPA?
Ans.Export and Import Permits Act: In 1947, the Export and Import Permits Act was adopted. With
the power of the Export and Import Permits Act, the CBSA assists Global Affairs Canada. This
statute governs foreign trading of products. The Export and Import Permits Act (EIPA) oversees
international trade in products and technology. The Act on Export and Import Permits includes an
Import Control List (ICL), an Export Control List (ECL), and an Area Control List (ACL) (ACL). All
products on the Import Control List require an import permission, and all commodities on the Export
Control List require an export permit. The Area Control List is made up of nations that must get an
export licence in order to export any commodities.

13.)What are D-Memos?

The D-Memoranda relate to the Canada Customs and Revenue Agency's customs and excise
guidelines (formerly Revenue Canada). The D-Memoranda, often known as D-Memos, detail the
legislation, rules, policies, and procedures used by the Agency to run customs programmes. They
also give broad recommendations and information on customs programmes. A complete set of
D'Memoranda is made up of 20 groupings.

14.)What are Customs Notices?

Customs Notices are the documents that are issued from Customs and Excise that
provide information and advice on a variety of subjects such as export and import
processes, codes for commodities and classification.

Customs Notices are the documents released through Customs and Excise that provide
information and advice on a variety of subjects that include export and import
processes, commodities codes and classification.  They are intended to assist
companies adhere to the regulations of customs and can be found at the Customs and
Excise website.

Customs Notices are divided into two types one: policy and operational.  Operational
Customs Notices contain information about specific issues, for example, the method
used to calculate customs duty and are usually issued as a result of changes to the law
or procedure. Policy Customs Notices define the Customs and Excise's policies on a
specific issue and are typically issued prior to any changes to the law or procedure.

15.)What is the CFIA (Canadian Food Inspection Agency) responsible for?

The CFIA is committed to ensuring the safety of food, animals, and plants, which benefits Canada's
inhabitants, ecology, and economics.The CFIA's top aim is to reduce food safety hazards, and the
safety and health of Canadians is the primary driver behind CFIA programme design and
development. The CFIA continues to work in collaboration with business, people, and government,
provincial, and municipal agencies to safeguard Canadians from preventable food and zoonotic
disease-related health risks.

A healthy and stable living organisms resource base is critical to the current and future economic
development of Canada's agriculture and forestry sectors. As a result, in order to avoid and
manage risks, the CFIA is constantly upgrading its programme design and implementation in the
livestock health and biological resource domains. The CFIA also does considerable work linked to
environmental biodiversity protection in order to safeguard the environmental resources from
invading living organisms infections and diseases.

16.)What is Industry Canada Responsible for?

Industry Canada is the division of the Government of Canada that is answerable for advancing a
climate that is helpful for the development of solid, prosperous Canadian organizations and
networks. Industry Canada attempts to make the circumstances that permit organizations to
advance and develop, while guaranteeing that Canadian customers approach a wide assortment of
labor and products at serious costs. The division likewise attempts to propel the interests of
Canadian industry in global business sectors. Industry Canada has a wide scope of obligations,
which include:

I) Administering the Investment Canada Act, which audits unfamiliar interests in Canada to
guarantee that they are of net advantage to the country. Industry Canada surveys whether the
venture will be of net advantage to Canada, considering variables, for example, the impact of the
speculation on the economy, the degree of innovation move, the effect on rivalry, and the impact
on business.

ii) Promoting the advancement of a solid and serious Canadian avionic business; In request to
advance the improvement of a solid and cutthroat Canadian aeronautic trade, Industry Canada
attempts to establish a climate that is helpful for development and speculation. This incorporates
offering help to the area through projects and drives that empower innovative work, advance the
commercialization of new advances, and assist organizations with getting to worldwide business
sectors. Industry Canada additionally attempts to bring issues to light of the significance of the
aviation area to the Canadian economy and to energize the up and coming age of laborers to enter
the field.

iii) Administration of the Canadian media communications strategy structure. The arrangement
structure is intended to encourage a climate wherein broadcast communications transporters can
contend to give Canadians superior grade, imaginative and reasonable broadcast communications
administrations. Industry Canada attempts to guarantee that the strategy system is applied in a
way that is steady with the goals of the Telecommunications Act and that mirrors the changing idea
of the media communications industry.

iv) Working with the regions and regions to convey monetary advancement programs; Industry
Canada works with the regions and domains to convey financial improvement programs through an
assortment of instruments, including reciprocal arrangements, government commonplace regional
working gatherings, and the conveyance of designated projects and administrations.

v) Supporting the advancement of clean energy innovations; Industry Canada upholds the
improvement of clean energy advances in various ways. The division gives financing to innovative
work, offers charge impetuses for organizations that put resources into clean energy advances,
and works with common and regional state run administrations to foster strategies and guidelines
that energize the utilization of clean energy. Industry Canada likewise advances the utilization of
clean energy advances through mindfulness raising drives and instructive projects

vi) Promoting the utilization of Canadian guidelines; Industry Canada advances the utilization of
Canadian norms through different means, including mindfulness raising exercises, distributions,
and preparing programs. Also, the office supports the utilization of Canadian guidelines through
monetary motivations, like the Standards Development Organization Program.