Warehouses

• When goods enter in Canada they stay in

some type of bonded facility until they are
Customs cleared.

“Bonded Warehouse” - A place of

safekeeping, (under Customs control), of
goods while they await Customs clearance,
export, or destruction.
 Bonded Warehouse Types
• Highway Frontier Examining Warehouse
- Established to hold goods pending
release by C.B.S.A.
- At most points of importation
adjacent
the Canada- U.S.A. border.
- Goods may not be removed from a
highway frontier warehouse unless
authorized to do so by Customs
- time limit to clear goods is 40 days
 Bonded Warehouses - Types

• Customs Sufferance Warehouses

- Goods traveling in-bond (Not customs

cleared) must be delivered to a Sufferance
warehouse inland.

- Established for the landing, storage,

safekeeping, transfer, examination,
delivery and forwarding of imported goods
not released from Customs
 Warehouses - Sufferance

• Operator must be licensed under Section 24 of the

Customs Act & security must be provided.

• Operator keep all records of all imports.

• Time limits: 40 days for most goods

14 days for tobacco,
firearms,weapons & liquor 4 days for
perishable goods.
 Bonded Warehouses

• Long term Storage.

• Used to differ payment of duties and taxes

• Two types: Public & Private bonded warehouse.

• Operator must be licensed under Section 24 of the

Customs Act & security must be provided.

• Operator keeps all records of all imports

 Bonded Warehouses – Time Limits
• Spare Parts for Aircraft or vessels, oil-drilling
supplies & parts, not intended for Domestic
consumption: 15 years

• Liquor, Wine, Beer, and other intoxicating liquors:

5 years

• Goods to be marked. 90 days

• Goods subject to review as to whether they are

prohibited or not or to determine if there is a
copyright or trademark infringement: Indefinite

• All other goods: 4 years

 Bonded Warehouses

• Customs and Warehouse operator must know what

is in the warehouse at all times. If audit shows
discrepancies, $1000.00 to $25,000.00 fine could
result

• “Warehouse” Customs entries are used to enter

the goods into the bonded warehouse and, “Ex-
warehouse” customs entries used to take goods
out of the warehouse.

• If the goods change ownership while in the

warehouse, the importer or owner submits a
transfer document to inform Customs.
 Queens Warehouse

• Queen’s Warehouse

• Established and operated by Customs to store

unclaimed, abandoned, or forfeited goods pending
their final disposal

• Form E44 moves goods to a Queens warehouse.

• The goods wait 30 days in a Queens warehouse

before disposal. If cleared while in Queens, the
importer must pay all storage charges before
import has access to the goods.
 Queens Warehouse

• After 30 days in Queens warehouse the

officers decide whether the goods are
suitable for sale or destruction.

• Sale price must be able to cover all charges

owing.
 Bonded Warehouses Entries

• Importers use Bonded warehouses to defer

payment of duties & taxes until such a time as the
goods are required. This allows duties and taxes
not to be tied up, and improves cash flow,
especially on high duty or high value items.

• The goods have entered the country but in reality

are not Customs cleared. Customs is aware of the
goods; knows where they are; but only receive
duties & taxes when the goods are taken out, or
“Ex-warehoused”

• The rate of duty paid is the duty rate on the date

 Bonded Warehouses Entries

• A B3 is used to enter the goods into the warehouse

“Warehouse entry” “Type 10”

• A B3 is used to take the goods out of the warehouse

“Ex-Warehouse entry” Type “20”

• Each shipment is treated separately.

Bonded Warehouses Entries - Types

• Type 10 – Warehouse entry. Used to enter the goods

into the Warehouse
• Type 13 – re-Warehouse of goods after transfer
(Type 30)
• Type 20 – Ex-Warehouse for consumption

• Type 21 - Ex-Warehouse for export.

• Type 22 – Ex-Warehouse for ships Stores.

• Type 30 – Transfer of Goods to another Warehouse

 Type 10 – Used to enter the goods into the

Warehouse

• Clears the goods from sufferance warehouse and

allows transfer to Bonded Warehouse.

• Tell Customs all information, except amount of

duties and taxes.

• Additional information: Bonded Warehouse #

Time Limit of goods
Quantity,
Marks & types of Pkgs must
be added to description field.
 Type 20 – Ex-Warehouse for consumption

• Clears portion the importer wishes to take out of

Bonded Warehouse.

• Tells Customs all information, and amount of duties

and taxes, of the goods being taken out of bond.

• Additional information: Bonded Warehouse #

Previous
Transaction #.
Quantity of goods taken out.
 Warehouse Entries

• Importer/Broker keeps count of items remaining in

Bonded Warehouse for each shipment.

• The records must match C.B.S.A.’s records.

• When ex-warehousing remainder of goods in

shipment, must indicate “Final ex-warehouse
transaction”.