FAQ
Frequently Asked Questions
Clear answers for importers evaluating customs brokerage, CARM compliance, and duty management options in Canada.
What is an HS code and why does it matter for Canadian customs?
An HS code (Harmonized System code) is an internationally standardized number used to classify traded goods. In Canada, it determines the duty rate, trade agreement eligibility, surtax exposure, and permit requirements for your shipment. Using the wrong HS code can result in underpaid duties, penalties, and CBSA compliance issues.
How many digits are in a Canadian tariff classification number?
Canadian tariff classification numbers are 10 digits. The first 6 digits follow the international Harmonized System, digits 7–8 are Canada-specific subheadings, and digits 9–10 are statistical suffixes.
What happens if I use the wrong HS code on my customs entry?
Using the wrong HS code can result in incorrect duty payment, potential CBSA penalties for misrepresentation, delays due to re-assessment, and loss of trade agreement tariff preferences. CBSA can also reassess past entries if errors are found during an audit.
Can Ezcustoms help with CBSA advance rulings on HS classification?
Yes. For complex products or high-value import programs where classification certainty is important, Ezcustoms can assist with preparing and submitting an advance ruling request to CBSA. An advance ruling provides a binding classification decision before your goods are imported.
How does HS classification affect trade agreement eligibility?
Tariff preference programs like CUSMA (Canada-US-Mexico), CPTPP, and CETA are linked to specific HS codes. The correct classification is required to claim preferential duty rates. An incorrect code can disqualify your shipment from preferential treatment and result in higher duties.