Notice to Exporters

New Financial Administration Rules On Export Permits/Certificates Of Eligibility

Serial No.: 109
Date: December 10, 1998

Table of Contents

1.0 Purpose

1.1 The purpose of this Notice is to provide information to exporters regarding new financial procedures on fees payable pursuant to the Export and Import permits and certificates fees Order and the Softwood Lumber Products Export Permit Fees Regulations.

1.2 The Export and Import Controls Bureau (the Bureau) in the Department of Foreign Affairs and International Trade(DFAIT) has experienced significant levels of accounts receivable on which interest was not charged. 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.

2.0 Duration

2.1 This notice shall remain valid until further notice.

3.0 New Financial Rules on all Export Fees

Invoices will be sent monthly to all companies/individuals owing money to DFAIT. Customs Brokers will receive their monthly invoice as in the past, for the permit fees of their clients. Invoices for Softwood Lumber Export Level Fees will be sent directly to the Softwood Lumber exporters on the 20th of each month.

3.1 Any client receiving permits processed directly by the Bureau must pay the associated permit fees for all commodities in advance. These fees can be paid by cheque, bank wire transfer, bank money order, Visa or Master Card. Credit cards will be accepted for permit fees only excluding fees to affiliated customs brokers; invoices for softwood lumber fees are also excluded (lower fee base's and upper fee bases's).

3.2 In addition to the invoices for Customs Brokers and Softwood Lumber Exporters, statements will be sent at the end of each month, to all exporters and Customs Brokers with outstanding balances. New monthly statements for outstanding balances for Softwood Lumber Export Level Fees were sent for the first time for balances outstanding as of February 27, 1998.

3.3 All permit/certificate fees owing to the Department will become payable on a net 30 days basis. Therefore all amounts owing will start accumulating interest on the 31st day following invoice issuance. Interest calculation will be applied retroactively to outstanding invoices to charge interest from the 31st day following the date of the invoice.

3.4 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.

3.5 Any amounts payable to exporters 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.

3.6 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. 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.

3.7 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 with each dishonoured item.

3.8 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.

3.9 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.

3.10 Payment of invoices may be done in two ways. First, an exporter 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
Export & Import Controls Bureau(EPC)
PO Box 481, Station A
Ottawa, Ontario
K1N 9K6

By courier:

Department of Foreign Affairs and International Trade
Export & Import Controls Bureau(EPC)
Tower C, 4th floor
125 Sussex Dr.
Ottawa, Ontario K1A 0G2

A second means for payment is available through wire transfers capability. For this option, the exporter has to request from a bank that a wire transfer payable to the "Receiver General for Canada" be sent to the Department's Royal Bank branch with a copy of the invoice or monthly statement to the following address:

Royal Bank of Canada
L.B. Pearson Bldg.
125 Sussex Dr.
Ottawa, Ontario K1A 8V5
Transit # 1016
Branch # 003
Attention: Lise Lachance, (613) 944-2496

3.11 Credits against invoices will be made based on instructions from the payor. These instructions, for the Softwood Lumber Export Fees must list all permits for which the company is paying fees 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.

3.12 Following are some examples of overdue accounts, with interest.

4.0 Example

4.1 Company A received an invoice dated on the 20th of the month for a total of $16,000. The following entries illustrate implications of the new policy:

  • A - A payment of $16,000 is received by DFAIT within 30 days. No interest is charged.
  • B - The total payment is received by Foreign Affairs 35 days after the invoice date. Interest is charged for 5 days on $16,000 at the monthly rate. This interest charge would be included in the following monthly statement.
  • C - The total payment is not received by DFAIT within 60 days from the invoice date. The company's permit issuance privileges may be suspended by the Department until the total amount of the invoice plus interest charges are paid.
  • D - The invoice payment is not received by DFAIT within 90 days from the invoice date. The Department may give 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.

5.0 Applications for Permits or Certificates

5.1 Where a Customs broker delivers a permit or certificate, the person to whom the permit or certificate is issued shall pay the applicable fee to the customs broker.

5.2 Where an exporter applies directly to the Bureau for an export permit or certificate, the exporter shall pay a fee of $14 for each export permit or certificate requested. 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 3.10; or by "Visa" or "Master Card", by providing card number, expiry date and name of card holder.

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 applications until the fee payment is received.