Customs Brokers Licensing Regulations

Customs Brokers Licensing Regulations Whereas, pursuant to subsection 164(3) of the Customs Act*, a copy of proposed Regulations respecting the licensing of customs brokers, substantially in the form annexed hereto, was published in the Canada Gazette Part I on May 10, 1986 and a reasonable opportunity was thereby afforded to interested persons to make representations to the Minister of National Revenue with respect thereto; S.C. 1986, c. 1 Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 9(5), paragraph 164(1)(j) and subsection 166(1) of the Customs Act*, is pleased hereby to make the annexed Regulations respecting the licensing of customs brokers, effective on the coming into force of subsection 9(5), paragraph 164(1)(j) and subsection 166(1) of the Customs Act*. [Repealed, SOR/2024-41, s. 42] In these Regulations, Act means the Customs Act; (Loi) chief officer of customs, with respect to a customs broker, means the manager of a local customs office or customs offices that serve the area in which the broker transacts business, or proposes to transact business, as a customs broker; (agent en chef des douanes) licence means a licence to transact business as a customs broker issued pursuant to section 9 of the Act. (agrément) An individual is qualified under these Regulations if the individual is a citizen or permanent resident of Canada; is of good character; is at least 18 years of age; has sufficient financial resources to conduct his business in a responsible manner; and has a sufficient knowledge of the laws and procedures relating to importations and exportations determined in accordance with section 4. A partnership is qualified under these Regulations if the partnership in the case of a partnership composed of individuals, is composed of individuals each of whom meets the qualifications prescribed in paragraphs (1)(a) to (c), has sufficient financial resources to conduct its business in a responsible manner, and has at least one partner who has a sufficient knowledge of the laws and procedures relating to importations and exportations, determined in accordance with section 4; and in the case of a partnership composed of corporations, is composed of corporations each of which meets the qualifications prescribed in paragraphs (3)(a) to (c), has at least one partner that meets the qualification prescribed in paragraph (3)(d). A corporation is qualified under these Regulations if the corporation is incorporated in Canada, is of good reputation, and has sufficient financial resources to conduct its business in a responsible manner; all of the directors of the corporation are of good character; a majority of the directors of the corporation are citizens or permanent residents of Canada; and at least one officer of the corporation has a sufficient knowledge of the laws and procedures relating to importations and exportations, determined in accordance with section 4. Subject to subsection (2), a sufficient knowledge of the laws and procedures relating to importations and exportations is established, for the purposes of paragraph 3(1)(e), subparagraphs 3(2)(a)(iii) and (b)(iii) and paragraph 3(3)(d), if the individual, partner or officer has written the Customs Brokers Professional Examination, given under section 15, and attained a grade of at least 60 per cent on it not more than one year before the day on which the application for a licence was made; or more than one year before the day on which the application for a licence was made if the individual, partner or officer transacted business as a customs broker, whether on their own behalf or on behalf of a licensee, from within one year after the day on which the examination was written until not more than one year before the day on which the application for a licence was made. For the purposes of paragraph 3(1)(e), subparagraphs 3(2)(a)(iii) and (b)(iii) and paragraph 3(3)(d), a sufficient knowledge of the laws and procedures relating to importations and exportations is established, if the individual, partner or officer prior to the coming into force of these Regulations, met the requirement under the Custom-House Brokers Licensing Regulations of having a sufficient knowledge of the law relating to customs matters to discharge the obligations of a customs broker; and transacted business as a customs broker, whether on his own behalf or on behalf of a person to whom a licence was issued under subsection 118(1) of the former Customs Act, being chapter C-40 of the Revised Statutes of Canada, 1970, until not more than six months before the date of the application for a licence. [Repealed, SOR/2006-151, s. 2] An application for a licence must be made in the prescribed form and be submitted to the Minister in writing. [Repealed, SOR/2024-41, s. 43] [Repealed, SOR/2002-149, s. 4] Before a licence is issued or renewed, the applicant must give security in accordance with the requirements of the Financial Security (Electronic Means) Regulations and in the amount of $50,000. A fee of $600 must be paid before a licence is issued. A renewal fee of $600 must be paid before a licence is renewed. A renewal fee must be refunded if, before the 15th day of February preceding the day on which the licence will expire, the customs broker withdraws the request for renewal by written notice. A licence, including a licence that has been renewed, expires on the 31st day of March next following the date on which the licence or its renewal is expressed to be effective. A licence authorizes the holder to transact business as a customs broker at any customs office if the holder maintains at least one business office in Canada. Every customs broker shall display prominently at each business office at which he transacts business as a customs broker where the customs broker is a partnership or a corporation, a sign bearing the name under which the partnership or corporation is authorized to transact business as a customs broker, and the licence or a copy thereof; immediately notify the Minister in writing of any change in the address of a business office at which he transacts business as a customs broker, in the legal or business name of the partnership or the corporation, where the customs broker is a partnership or a corporation, in the membership of the partnership, where the customs broker is a partnership, in the officers or directors of the corporation, where the customs broker is a corporation, [Repealed, SOR/2002-149, s. 6] in the ownership of the business or corporation, where the customs broker is an individual or corporation, and in the individuals meeting the knowledge requirement determined in accordance with section 4; furnish to the importer or exporter, in respect of each transaction made on their behalf, a copy of the customs accounting documents bearing the customs accounting number and official customs stamp, or a copy of the information transmitted by electronic means to the Agency; and promptly account to a client importer or exporter for funds received for the client from the Receiver General for Canada, and from the client in excess of the duties or other charges payable in respect of the client’s business with the Canada Customs and Revenue Agency. The Customs Brokers Professional Examination shall be given at least once a year at any time that the Minister or a person designated by the Minister for the purpose of section 9 of the Act directs. Notice of the date, time and place of an examination must be posted on the Agency’s website not less than 60 days before the date of the examination. Every individual proposing to write the examination must submit an application in writing in the prescribed form at least 30 days before the date of the examination; and at the time the application is made, pay a fee of $200. Every customs broker shall keep the following information: records and books of account indicating all financial transactions made while transacting business as a customs broker; a copy of each customs accounting document made while transacting business as a customs broker, a copy of all supporting documents and a copy of the information transmitted by electronic means to the Agency while transacting business as a customs broker; copies of all correspondence, bills, accounts, statements and other papers received or prepared by the customs broker that relate to the transaction of business as a customs broker; and separately, all of the records, books of account and copies referred to in paragraphs (a) to (c) relating to business transacted under section 13. Every customs broker shall retain the information for a period of six years after the importation of the goods to which the information relates. The information required by subsection (1) shall be kept in such a manner as to enable an officer to perform detailed audits and to obtain or verify the information. The information required by subsection (1) shall be kept for the period prescribed by subsection (2) in an original document; in a copy made by means of any photographic, microphotographic or image-processing process that is in accordance with National Standard of Canada CAN/CGSB-72.11-93, Microfilm and Electronic Images as Documentary Evidence, published by the Canadian General Standards Board in November 1993, as amended from time to time; or on machine-sensible data media if the media can be related back to the supporting source documents and are supported by a system capable of producing accessible and readable copy. The Minister or a person designated by the Minister for the purposes of section 9 of the Act may suspend or cancel the licence of a customs broker if the customs broker contravened the provisions of an Act of Parliament or a regulation made thereunder relating to the importation or exportation of goods; acted to defraud Her Majesty or a client; suggested a plan for the evasion of any duties or other debts due to Her Majesty in right of Canada that involves the contravention of the provisions of an Act of Parliament or a regulation made thereunder; failed to comply with these Regulations; became insolvent or bankrupt; engaged in any dishonest conduct while transacting business as a customs broker; ceased to carry on business as a customs broker or failed to carry out his duties and responsibilities as a customs broker in a competent manner; or is no longer qualified under these Regulations. Before a licence is cancelled or suspended the Minister or a person designated by him for the purposes of section 9 of the Act shall cause to be given to the customs broker 30 days notice of the proposed cancellation or suspension; reasonable information concerning any allegations with respect to any of the grounds referred to in paragraphs (1)(a) to (h) on which the Minister proposes to cancel or suspend the licence; and a reasonable opportunity to respond and make representations as to why the licence should not be cancelled or suspended. Every customs broker that ceases to transact business as a customs broker or whose licence has been cancelled must immediately stop displaying their licence.