The Canada Border Services Agency (CBSA) has confirmed the timetable for full transition of electronic house bill (eHBL) filing requirements that apply to freight forwarders and Non-Vessel Owning Common Carriers (NVOCCs), based on Customs Notice 20-28.
As of November 1, 2020, CBSA has updated the final portion of system enhancements that will enable freight forwarders and NVOCCs to submit eHBL for all consolidated shipments including:
- Back-to-Back shipments (shipment with 1 shipper and 1 consignee that is coordinated by a freight forwarder who issues a house bill of lading – HBL).
- Buyer consolidation shipments (shipment with multiple shippers and 1 consignee that is coordinated by a freight forwarder who issues a house bill of lading – HBL).
Note: As a reminder, freight forwarders have been able to file eHBLs for consolidated shipments since July 2017. However, eHBLs for back-to-back and buyer consolidated shipments were suspended due to the need for CBSA to implement upgrades to its processing systems.
- Freight Remaining on Board (FROB) must be reported using the legacy ACI supplemental reporting.
- Consolidated in-transit shipments moving from offshore through Canada and destined to the U.S. may be reported using eHBLs or legacy ACI supplemental reports.
- Consolidated in-transit shipments of U.S. origin goods entering Canada for offshore export will continue to be exempt from the eHBL requirement.
As of January 4, 2021, the use of eHBLs for all consolidated shipments will become mandatory (excluding exceptions noted above).
This will mark the beginning of a six-month informed compliance period, during which time CBSA will issue zero-rated penalties for non-compliance.
Monetary penalties are expected to come into effect as of June 2021.
For more information, contact David Lychek, Manager – Ocean & Air Services.