CANADA CUSTOM INVOICE Page -1

1. Vendor (Name and Address) / 2. DATE OF DIRECT SHIPMENT TO CANADA
3. Other Reference (include Purchaser’ Order NO.)
4. Consignee ( Name and Address) / 5. Purchaser’s Name and Address ( if other than Consignees )
6. Country of Transshipment
7. Country of Origin of Goods / If shipment includes Goods of different
Origins enter origins Against item in 12
8. Transportation : Give Mode and place of direct Shipment to Canada / 9.Conditions of sales and terms of payment (i.e Sale,
Consignment Shipment, Leases Gods etc)
10. Currency of Settlement
11. No / 12. Specification of Commodities ( Kinds of Packages, Marks and numbers / 13 . Quantity / Selling Price
Of / General Description and Characteristics, i.e Grade, Quality / (State Unit)
Pkgs / 14. Unit Price / Total
18. If any of fields 1 to 17 are included on an attached commercial / 16 Total Weight / 17. Invoice Total
Invoice, check this box / Net. / Gross
19. Exporter’s Name and Address ( if other than Vendor)
20. ( Originator ( Name and Address)
21. Department Routing ( if applicable) / 22. If fields 23 to 25 are not applicable, check this box
23. If included in field 17 indicate amount / 24. If not included in field 17 / 25. Check (if applicable)
(i). Transportation charges, expenses and insurance from the Place of direct shipment to Canada / (i). Transportation charge, expense and insurance from the place of direct shipment to Canada. / (i) Royalty payment or subsequent proceeds are paid or payable by the purchaser
$………………………………………… / $……………………………………..
(ii) Costs for construction erection and assembly / (ii). Amounts for commissions / (ii). The purchaser has supplied goods
Incurred after importation into Canada / Other buying commissions / Or services for use in the
$…………………………………………. / $… / Production of theses goods
(iii). Export packing / (iii). Export packing
US $ / $…

RULES OF ORIGIN

Country of Origin means the country of which the Invoiced goods are bona fide growth, produce or manufacture. In their present form ready for export, the goods must have been finished in the country specified as the country of origin.

In addition, there is a “not less than non-half the cost of production requirements” for the qualification for entry under the British Preferential Tariff and Most-Favored-Nation-Tariff.

For goods seeking entry under the British Preferential Tariff, not less than on-half the cost of production of each such article must have been incurred through the industry of one or more countries entitled to the British Preferential Tariff. The British content requirement of “one-half” has been modified in the case of a small number of commodities, which are mentioned in Canada Custom Memorandum D-36.

For goods seeking entry under the Most-Favoured-Nation Tariff, not less than one-half the cost of production must have been incurred through the industry of countries entitled to the benefits of the Most-Favoured-Nation, Tariff or the British Preferential Tariff.

In the calculation of cost of production for determining the qualification for entry under the British Preferential Tariff for Most-Favoured-Nation Tariff, none of the following items are to be included to be considered. Viz:

(i)  Outside packages and expenses of packing there into

(ii)  Manufacturer’s or Exporters profit and profit or remuneration of any trader, broker, or other person dealing in the article in its finished manufactured condition.

(iii)  Royalties

(iv)  Customs or Excise duty or tax paid or payable on imported materials.

(v)  Carriage, insurance, etc., from place of production of manufacture to port of shipment.

(vi)  Any other charges incurred or to be incurred subsequent to the completion of the manufacture of the goods.

Different rules apply for goods seeking entry under the General Preferential Tariff and a Certificate or Origin Form-A required. Information regarding the General Preferential tariff may be obtained from Customs Memorandum D 47-51B3.

FAIR MARKET VALUE.

When the goods are sold in the country of export:-

The value to be placed in the fair market value column shall be the invoiced price at which like goods are freely sold for home consumption in the country of export to customers with whom the vendor deals at arms length.

When only similar goods are sold in the country of export:-

The value to be placed in the fair market value column shall be sum of the cost of production of the goods shipped to Canada plus a percentage advance which is equal to the percentage mark up over production cost included in the fair market value of similar goods when sold for home consumption in the country of export to customers with whom the vendor deals at arms length.

When establishing fair market value on the basis of sales of like or similar goods, the following rules apply:-

1.  Export as provided in (2) below, the only discounts or deductions allowed are those which are shown, allowed and deducted on invoices covering sales for home consumption in the ordinary course of trade. In particular, subsidies, rebates and exemption from or drawback of any Customs duty may not be used to reduce fair market value.

2.  Commodity taxes levied on like or similar goods within the country of export may be deducted from the fair market value providing the goods shipped to Canada have been or will be exempted or relieved from such taxes. The amount should be shown as a deduction from the fair market value, with appropriate notation.

3.  Fair market value must reflect sales prices in the country of export to purchasers located at the place of direct shipment to Canada, or as near thereto as possible, who are the same or substantially the same trade level as the importer, or at the next and subsequent trade level. The place of direct shipment is the place where the goods begin their continuous journey to Canada.

4.  Fair market value must reflect sales price in effect at the time of shipment to Canada or those made most recently prior thereto, and in the same quantities as shipped to Canada or in smaller quantities.

5.  Cost of production includes all materials, labor and factory overheads. The cost of the exported goods and of the similar goods sold in the exporting country must be established on the same basis. The costs of the exported goods may not be reduced by any subsidy or by reason of exemption from or drawback of any Customs duty.

6.  Where the fair market value in not based on home market sales of like or similar goods it must be determined under other provisions of the Customs Act.

7.  Where packing is included in the price at which goods are sold to purchasers in the country of export, like of substitute packing must be included in the invoiced fair market value of the goods. Additional packing for the overseas transportation of the goods may be invoiced separately as export packing.

8.  Specific details may be obtained by writing to the Department of National Revenue, Customs and Excise Connaught Building, Ontario, Canada, KIA OL5.