OTTAWA — Canada Border Services Agency has issued a memorandum outlining rules that highway carriers must meet when reporting and accounting for repairs to their vehicles performed outside Canada.
The Customs Act requires that all such repairs must be reported by the drivers, regardless of whether they are authorized to account for repairs — including emergency repairs — to the nearest CBSA office when these vehicles are returned to Canada. Also highway carriers must account for repairs to their vehicles on a quarterly basis.
The memorandum has been revised to clarify that invoices for repairs to highway vehicles performed outside Canada must be stamped by the border officer at the time of importation as proof of reporting.
If, at the time of importation during an examination of the truck, invoices or other evidence of non-reported repairs are found, duties and taxes are to be collected immediately.
Penalties may be issued for non-compliance in addition to the carrier no longer being authorized to participate in the summary accounting program.
Also, the repairs must be reported, whether or not the highway carrier is paying for them, such as repairs performed under a warranty arrangement or paid for by an insurance company.
Owner-operated privately owned vehicles hired by authorized highway carriers may be afforded the benefit of quarterly summary accounting.
The driver must be prepared to present the inspecting CBSA official with a copy of the highway carrier’s authorization letter and a copy of an agreement between the driver and the highway carrier confirming that the carrier will assume liability for the duties and taxes owing, including the GST, for all vehicle repairs performed outside Canada.
Click here to read the entire memorandum click here.
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