Voluntary Disclosure of Unreported Goods Transiting Through the United States to a Subsequent Country CN 15-035

1. The purpose of this notice is to advise exporters of a grace period for voluntarily disclosing undeclared exports that should have been reported to the Canada Border Services Agency (CBSA).
2. It has come to the CBSA’s attention that a large number of businesses have been exporting goods to Mexico and other countries, transiting through the U.S. in the highway mode, without declaring them to the Agency.
3. Goods transiting through the U.S. to a subsequent destination for consumption must be reported on an export declaration. Because the ultimate destination of the goods is a country other than the U.S., they must be reported if their value is CAN$2,000 or more.
4. In addition, if the goods are controlled, other than by a General Export Permit, the appropriate permit/license/certificate and an export declaration must be presented to the CBSA before the exportation, regardless of the value of the goods.

Grace period for unreported goods

5. The CBSA is offering a six-month grace period, from Dec 1, 2015 to Jun 1, 2016, to companies who wish to voluntarily disclose exported shipments that transited through the U.S. prior to the issuance of this customs notice that should have been reported, but were not. Companies that report eligible unreported goods using this process (outlined below) will not be penalized.
6. Once the grace period expires, compliance verification activities will be conducted by the CBSA and penalties may be issued for failure to report exported goods.
7. Note that this grace period does not exempt companies from their obligation to report. Goods must continue to be reported per the relevant legislation and regulations. Goods exported after the issuance of this customs notice are not covered by this grace period, and penalties may be issued for failure to report.

Process for voluntary disclosure of unreported goods

8. During the grace period noted above, companies may submit a Voluntary Disclosure application using the process outlined in Memorandum D11-6-4, Relief of Interest and/or Penalties Including Voluntary Disclosure. We can provide a template to assist companies in documenting eligible exports.
9. Voluntary Disclosures should include all unreported, non-exempt exports. The information outlined in Memorandum D11-6-4 must be provided, including all data elements required in the export declaration, or the voluntary disclosure application will be considered void.
10. Voluntary Disclosure applications should be sent electronically to IE_Compliance-IE_Conformite@cbsa-asfc.gc.ca.
11. For additional information regarding this process, please consult Memorandum D11-6-4 or contact IE_Compliance-IE_Conformite@cbsa-asfc.gc.ca.

This notice is available on the CBSA website at: http://www.cbsa-asfc.gc.ca/publications/cn-ad/cn15-035-eng.html