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Important Message from the CSCB President on Duty Deferral, Customs Broker Liability

Home News Important Message from the CSCB President on Duty Deferral, Customs Broker Liability

The CSCB Board of Directors has been discussing how we can best support the government’s decision to provide for deferral of SOA payments to June 30th. These are unprecedented times, and the normal and beneficial business practices that underpin the customs broker–client financial relationship now have the potential to negatively impact the intended positive effects of deferral. For example, brokers who hold release prior to payment security on behalf of importers may require deposits or payments to mitigate their financial risk. There are important questions related to liability, risk management, and the role of surety bonds in this time of uncertainty. In our consideration of options, we have had consulted with the Surety Association of Canada (SAC) and will be speaking with other key stakeholders tomorrow.

We are recommending a suspension of customs broker liability for this period and we have also requested that there be no claims against importer bonds during this time. We believe this gives importers the best chance of benefitting from the government’s decision on deferral in the next three months and beyond, supporting their viability. It also supports customs brokers and the valuable services they provide not only in the context of the accounting and payment process, but for release of goods at a time when trade facilitation is critical to recovery.

We have presented this idea to CBSA and will continue to work on and discuss our recommendation with them, and with others. We will provide more information to members in the coming days.

Source: Canadian Society of Customs Brokers (CSCB)

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