Please see attached IMI entitled: Canada Customs Mandatory HS

Requirements.

BROUGHT TO YOU BY THE U.S. COMMERCIAL SERVICE: WWW.USATRADE.GOV

[CANADA CUSTOMS MANDATORY HS REQUIREMENTS]{.underline}

Madellon Lopes

04/03/2002

A. The CN-410 Customs Notice (Mandatory HS Requirement) was published on

October 31, 2001 and takes effect May 1, 2002. Below is CN- 410 in its

entirety

"Effective May 1, 2002, Canada Customs and Revenue Agency have
determined

that the correct 10-digit HS code will be required before the release of

certain commercial shipments. This notice is for the parties who import

commercial shipments into Canada and the customs staff involved in the

review of, and the decision-making process for, the importation of

commercial goods.

1\. Officials of the Canada Customs and Revenue Agency have determined

that, effective May 1, 2002, the correct 10-digit HS code will be
required

before the release of certain commercial shipments.

2\. This requirement applies to all paper and electronic RMD and PARS

releases valued at C\$1,600 or more.

3\. Where more than one commodity is included the shipment, the 10-digit

HS code has to reflect either

\(a\) the highest value invoice line of the shipment, or

\(b\) a reasonable representation of the goods within the shipment

4\. The term "reasonable representation" is defined as a commodity line

that reflects the true nature of the goods contained in the shipment.

5\. The HS code must be placed on the invoice line of the commodity that

shows either the highest value line or a reasonable representation.

6\. When a multiple page invoice is presented, the HS code must also be

shown on the first page with a notation indicating the corresponding
page

and line of the commodity to which this HS code applies, if this
commodity

is not listed on the first page.

7\. This HS code requirement will not cause any change to the Canada

Customs invoice form presently used by commercial importers.

8\. Release of goods will be delayed, if the 10-digit HS code is not

provided.

9\. There is no change to existing release situations where a 10-digit
HS

code is currently required, i.e., machine release and other government

department releases.

10\. Subsequent to the release of goods, if it is determined that an

incorrect 10-digit HS code was provided, warnings and penalty actions
may

be applied.

11\. Any questions or concerns regarding this mandatory HS requirement

should be directed to:

Commercial Re-engineering Division

Major Project Design and Development Directorate

8th floor, Vanguard Building

171 Slater Street

Ottawa, ON K1A 0L5

Contacts and telephone numbers:

Brenda Wiseman (613) 957-1229

Rick Dale, Manager (613) 954-7077"

B. CS Toronto contacted the Canada Custom and Revenue Agency (CCRA) and

was told that shipments under C\$1,600 are exempt from the mandatory

10-digit HS code effective May 1, 2002. (This explains the word
"certain"

in paragraphs 2 and 3 in notice above)

C. According to CCRA the HS mandatory 10-digit code requirement will not

change the basic structure/requirements of the Canada custom invoice

form/or forms adapted to meet Canada custom requirements. It just has to

be added to the description of the product as it appears on the invoice.

It may be hand written, circled, which ever method you choose. It must

however, be evident and easily seen by the customs officer. It is not

required on the NAFTA certificate. (Paragraph 8 above)

D. U.S. companies currently utilize a 6-digit HS code on export
shipments.

The following procedures are recommended by CCRA for U.S. companies

seeking to identify their 10-digit Canadian HS code.

· For further information on CN-410 Customs Notice (Mandatory HS

Requirement) and **to locate a relevant 10-digit HS code visit the**

**· CCRA's website at**

<http://www.ccra-adrc.gc.ca/eservices/customs/business/menu-e.html>
**(select: tariff wizard 2002)**

**http://www.ccra-adrc.gc.ca/E/pub/cm/cn410eq/README.html**

· U.S. companies may contact the following two CCRA information centers

and ask to speak to a custom/tariff officer. The numbers are as follows:

East Coast (Newfoundland) Tel: (506) 636-5064

West Coast (Winnipeg) Tel: (204) 983-3500

· U.S. companies may contact the importer (Canadian customer) for

assistance in identifying the correct 10-digit HS code.

· U.S. companies that utilize custom brokers should make them their
first

point of contact.

Export Services in Canada

The U.S. Commercial Service provides U.S. firms with a wide range of
cost

effective business development services in Canada, including market

research, corporate matchmaking and assistance with finding agents and

distributors. With professionally staffed offices throughout Canada we

can help U.S. firms promote their products and services and realize
their

full export potential. Call us today and find out how we can help you

join the largest trading relationship in the world.

Additional information on Canada can be found on the web at

www.BuyUSA.com. This B2B market place provides you with customized

international trade counseling, international market research on
countries

and industries worldwide and exposure for your company at global

promotional events.

For additional information and assistance on this report, please contact

Madellon C. Lopes, Commercial Specialist in Toronto at: (416) 595 5412,

ext. 227; fax (416) 595 5419 or e-mail madellon.lopes@mail.doc.gov

Commercial Service offices in Canada can be contacted at the following

telephone numbers:

CS Ottawa 613 - 688-5217

CS Toronto 416 - 595-5412

CS Montreal 514 - 398-0673

CS Vancouver 604 - 685-3382

CS Calgary 403 - 265-2116

CS Halifax 902 - 492-2482