Tax Insights: Notice to exporters ─ Mandatory electronic reporting coming July 2020

Issue 2019-28

In brief

On July 8, 2019, the Canada Border Services Agency (CBSA) released Customs Notice 19-14, “Mandatory electronic reporting for exporters.” Customs Notice 19-14 announced that mandatory electronic reporting for exporters will begin July 1, 2020. As of June 30, 2020, paper export reporting using the Export Declaration form B13A will be eliminated. Instead, the following two new methods of electronic reporting will be available to exporters:

• Canadian Export Reporting System (CERS)¹
• G7 Export Reporting Electronic Data Interchange (G7-EDI)¹

In detail

Exporters who currently use form B13A can begin transitioning to electronic export reporting as the G7‑EDI is already available for use; however, this system requires an investment from the exporter to connect directly to the CBSA’s Accelerated Commercial Release Operations Support System (ACROSS).

CERS is a new, web-based, self-service portal that will replace the Canadian Automated Export Declaration (CAED) system and allow exporters to submit export declarations electronically to the CBSA, including bulk upload and summary reporting. The CBSA has advised that this option will be available March 16, 2020.

Current CAED users as well as exporters in the Summary Reporting Program will receive information from the CBSA on how to activate their CERS account beginning February 2020. According to the CBSA, the CAED system will be retired on June 30, 2020.

Despite the CBSA’s transition to electronic reporting, the Customs Notice advises that if the goods being exported require permits, a paper copy of the electronic export declaration submission as well as the permit issued must be presented either at:

• the place specified in the export permit, or
• the CBSA export reporting office closest to where the goods will be exported from Canada

At present, there will not be a change to this regulatory requirement.

How PwC can help 

As the export process becomes more automated, exporters should take the opportunity during this transition to review their internal processes on export reporting. PwC can help you assess and identify your export compliance risks by reviewing your export processes/controls and any permits, licenses, and certificates on file. To the extent that goods requiring an export report were not reported, you may be eligible to benefit from filing an Export Voluntary Disclosure (EVP) – and we can help with this.

Ensuring that your business is compliant before the transition not only helps you to become more efficient, but also allows you to avoid potential penalties as the CBSA will closely monitor exporters during and after the transition period.

^{1. For more information on:
    - CERS, visit www.cbsa-asfc.gc.ca/export/reporting-declaration-eng.html
    - G7-EDI, visit www.cbsa-asfc.gc.ca/eservices/menu-eng.html}