Serial No. 570
Date: December 10, 1998
Table of Contents
1.1 The purpose of this Notice is to provide information to importers regarding new financial procedures on fees payable pursuant to the Export and Import Permits and Certificates fees Order.
1.2 The Export and Import Controls Bureau (the Bureau) in the Department of Foreign Affairs(DFAIT) has experienced significant levels of accounts receivable on which we have not charged interest. In order to reduce these outstanding accounts, new financial administration rules are being introduced. These rules are based on the Interest and Administrative Charges Regulations, made under authority of the Financial Administration Act.
2.1 This notice shall remain valid until further notice.
Invoices will be sent monthly to all on-line customs brokers owing money to the Department. They will receive their monthly invoices as in the past, for the permit fees of their clients. Other clients without on-line customs brokers must pay the Department in advance for their permit fees.These fees can be paid by cheque, bank money order, bank wire transfer, Visa or Master card. Credit cards will be accepted for permit fees only excluding fees to affiliated customs brokers.
3.1 In addition to these invoices, statements will be sent at the end of each month to all on-line customs brokers with outstanding balances.
3.2 All permit fees owing to the Department from on-line customs brokers will become payable on a net 30 days basis. Therefore all amounts owing will start accumulating interest on the 31st day following invoice issuance. At this time, it will be applied retroactively to outstanding invoices to charge interest from the 31st day following the date of the invoice.
3.3 Permit issuance privileges may be suspended for companies on the 61st day following the issuance of an unpaid invoice. In addition, unpaid accounts may be given to a collection agency on the 91st day from the issuance of the unpaid invoice.
3.4 Any amounts payable to customs brokers or importers by the Department will first be applied against any outstanding invoices owed by that company. If a company doesn't have any outstanding invoices, the Department will inform that company of the credit available through the monthly statement. If it wishes to receive payment, the company should advise the Department in writing at the address given below. No interest will be paid if a company decides to leave the amount on deposit as a credit memo.
3.5 As mentioned above, the Department will commence charging interest on all outstanding accounts over 30 days. Interest will be calculated at the Bank of Canada monthly average rate plus three percent and will be compounded monthly. This rate is posted on the Internet address, The Public Works and Government Services Canada. Where the government makes overpayments or erroneous payments as a result of fraud, falsification or wilful misrepresentation, these payments will incur interest charges from the date on which the overpayment or erroneous payment is made.
3.6 When the Department is advised that a cheque for fees payment has been dishonoured, the Department shall levy a charge of $25.00 to cover the Department's administrative costs associated with each dishonoured item.
3.7 Payment is considered to have been received on the day it is made at a financial institution or when it first arrives in the Department, excluding post-dated cheques.
3.8 In the case where an amount owing is in dispute, the company must write to the Department advising the amount in dispute and providing an explanation of the disagreement. Interest charges will continue to be accrued while the item is in dispute, but it will be credited to the company if the dispute is resolved in the company's favour.
3.9 Payment of invoices may be made in two ways. First, customs brokers may send a cheque payable to the "Receiver General for Canada" with a copy of the invoice or monthly statement to the following address:
By mail:Department of Foreign Affairs and International Trade
By courier:Department of Foreign Affairs and International Trade
A second means for payment is available through wire transfers capability. For this option, you have to request from a bank that a wire transfer payable to the "Receiver General for Canada" be sent the Department's Royal Bank branch with a copy of the invoice or monthly statement to the following address:Royal Bank of Canada
3.10 Credits against invoices will be made based on instructions from the payor. These instructions must list all invoices the company is paying and the company name and number. If a payment is for more than one company, instructions are crucial. Without instructions, the payment will be applied to the oldest invoices for one particular company only. If the payment is greater than the amount outstanding, a credit memo will be issued.
3.11 Following are some examples of overdue accounts, with interest.
4.1 Company A received an invoice dated on the 30th of the month for a total of $16,000. The following entries illustrate implications of the new policy:
A - The invoice payment is received by DFAIT within 30 days of the invoice date. No interest is charged.
B - The invoice payment is received by DFAIT on the 35th day after the invoice date. Interest is charged for 5 days at the monthly rate, and will be included in the following monthly statement.
C - The invoice payment is not received by DFAIT within 60 days of the invoice date. The company's permit issuance privileges may be suspended by the Department until the total amount of the invoice plus the interest are paid.
D - The invoice payment is not received by DFAIT within 90 days from the invoice date. The department may give all unpaid invoices plus interest to a collection agency for collection.
4.2 Suspension of permit issuance privileges will be lifted once all amounts due are paid.
5.1 Where a customs broker delivers a permit, the party to whom the permit is issued shall pay the applicable fee to the customs broker.
5.2 Where an importer applies directly to EICB for an import permit they shall pay the applicable fee in advance. Payment may be made by cheque or bank money order, payable to the "Receiver General for Canada"; by bank wire transfer as decribed above in section 3.9; or by "Visa" or "Master Card", by providing card number, expiry date and name of card holder. The amount is a fee based on the total value of the goods per import permit as set out in column III of the import permit fee schedule in paragraph 2 of the Notice to Importers # 508 dated May 16, 1995.
5.3 When the Bureau receives an application without payment of the fee, the Bureau will contact the applicant to inquire about the missing fee. The Bureau will not process such application until the fee payment is received.