Canada Tobacco Taxes & The CBSA

[Lakota]

MAtty I think you are on the right track, That is the number the girl gave me at CBSA, she then transferred. me to a "senior agent" who basically was not much help. On the Customs Declaration form CP72 there is a place for the HS number but it is for commercial senders only, what I am unsure on is "who is a commercial sender". I will try and contact them today or tomorrow and see what I can find. I will have your seeds in the mail this morning, should give you lots of time for a crop. Russ

 

[Matty]

I always have a hard time sleeping and last night was tough, so, around midnight I thought a little reading on tobacco excise, duty and tax would bore me to sleep pretty quick. I wasn't looking for the numbers but merely stumbled upon them reading about importation, of course I had to look it up to get the specific facts. I'd post a link but I am unable to copy/paste. I too noticed the HS number box on the customs form. Maybe the number could be added into the written description box the help out a bit.

 

[Warman]

Hi Guys,
As Lakota quoted from HTGT, I had this issue last month and sweated it for a few weeks (I believe the original taxes/duties were $459 on 3lbs of havana unstemmed). On the import forms the sender put the description as unstemmed tobacco and put the commodity code family as 2401, an unmanufactured tobacco category. The Customs agent that initially assessed the shipment changed the commodity code to the 2403 category (specifically 2403190091). I believe all of these are considered processed tobacco and carry the same charges.
I'm not sure if you have used this option on your shipment or not, as it was unclear, but when you go to the post office you can have the package sent immediately back to CBSA for appeal without accepting it or having to send it back to the sender.
The customs agent received my package back and called me to discuss and was receptive to changing the commodity code to 2401.10.1000.
The breakdown of this commodity code is:
24.01 - Unmanufactured tobacco;tobacco refuse
2401.10 - Tobacco, not stemmed/stripped
2401.10.10.1000 - For use as wrappers in the manufacture of cigars

It may work to include the descriptions of above in the package details (not sure how room there is for text).
More info can be found in the Customs Tariff - Schedule
http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2011/01-99/ch24-t2011-eng.pdf

What is the commodity code that they classified your shipment as (likely starts with 2403)?

Warren

 

[johnlee1933]

Hi Guys,
As Lakota quoted from HTGT, I had this issue last month and sweated it for a few weeks (I believe the original taxes/duties were $459 on 3lbs of havana unstemmed). On the import forms the sender put the description as unstemmed tobacco and put the commodity code family as 2401, an unmanufactured tobacco category. The Customs agent that initially assessed the shipment changed the commodity code to the 2403 category (specifically 2403190091). I believe all of these are considered processed tobacco and carry the same charges.
I'm not sure if you have used this option on your shipment or not, as it was unclear, but when you go to the post office you can have the package sent immediately back to CBSA for appeal without accepting it or having to send it back to the sender.
The customs agent received my package back and called me to discuss and was receptive to changing the commodity code to 2401.10.1000.
The breakdown of this commodity code is:
24.01 - Unmanufactured tobacco;tobacco refuse
2401.10 - Tobacco, not stemmed/stripped
2401.10.10.1000 - For use as wrappers in the manufacture of cigars

It may work to include the descriptions of above in the package details (not sure how room there is for text).
More info can be found in the Customs Tariff - Schedule
http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2011/01-99/ch24-t2011-eng.pdf

What is the commodity code that they classified your shipment as (likely starts with 2403)?

Warren

Good info. Thanks. Did it change the tariff? If so how much?

 

[Warman]

Good info. Thanks. Did it change the tariff? If so how much?

$459 total down to just over $20.
$11 of that was duty and the rest was GST on the purchase price.

 

[Lakota]

Hi Warman Glad to see you made it to the site Welcome. I am in the middle of a shipment with the cbsa. I might know what is happening with in a few days. I hope to have as good a result as you. Russ

 

[Warman]

It would help if the agents knew their information. Or rather if they don't know their information that they listen to reason instead of going on a power trip.
Good luck to ya Russ.

 

[Matty]

Hey Warman, nice to hear you got it sorted. I sent in the form to appeal the charges, no word yet. Got my fingers crossed though.

 

[Matty]

I got a full refund! Hurray! Check came in today. Cost, $18.00 total for importation.

 

[Lakota]

I also got a cheque today, total cost was $27.32 on 6 lbs. Maybe they have it figured out.

 

[Matty]

Hopefull. Cheers buddy

 

[Lakota]

Matty I think the 2401.10 number does the trick. I told them it was unstemmed raw leaf tobacco used in cigar making. I guess following the Canada Excise Act works. Glad you got yours back. Russ

 

[FmGrowit]

Don't bother doing a search for "24.01 unmanufactured tobacco"...this thread comes up on the first page.

Kind of cool we are educating the customs agents across the globe.

24.01 is the World Customs code for whole leaf

 

[Lakota]

I did not know the 24.01 was all the world code. Here is an page from the Canada excise tax act

24.01 Unmanufactured tobacco; tobacco refuse.
2401.10 -Tobacco, not stemmed/stripped
2401.10.10 00 - - -For use as wrappers in the manufacture of cigars KGM Free CCCT, LDCT, GPT, UST,
MT, CT, CRT, IT,
PT: Free
- - -Other:
2401.10.91 00 - - - -Turkish type KGM 2.5% CCCT, LDCT, GPT, UST,
MT, CT, CRT, IT,
PT: Free
2401.10.99 - - - -Other 5.5% CCCT, LDCT, UST, MT,
CT, CRT, IT, PT: Free
GPT: 5%
10- - - - -Bright virginia, flue-cured ....................................................................... KGM
20- - - - -Burley..................................................................................................... KGM
30- - - - -Cigar leaf................................................................................................ KGM
90- - - - -Other ...................................................................................................... KGM
2401.20 -Tobacco, partly or wholly stemmed/stripped
2401.20.10 00 - - -Wrapper tobacco for use in the manufacture of cigars KGM 8% CCCT, LDCT, GPT, UST,
MT, CT, CRT, IT,
PT: Free
2401.20.90 - - -Other 8% CCCT, LDCT, GPT, UST,
MT, CT, CRT, IT,
PT: Free
10- - - - -For use in the manufacture of cigars ..................................................... KGM
- - - - -Other:
91- - - - - -Bright virginia, flue-cured ..................................................................... KGM
92- - - - - -Burley................................................................................................... KGM
93- - - - - -Cigar leaf ............................................................................................. KGM
99- - - - - -Other.................................................................................................... KGM
2401.30.0000-Tobacco refuse KGM 6.5% CCCT, LDCT, UST, MT,
CT, CRT, IT, PT: Free
GPT: 5%
24.02 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco

 

[Knucklehead]

Great job guys. I'm glad you were able to get that mess cleared up.

 

[Jack in NB]

As always, more helpful information from our favourite tobacco site!

 

[Matty]

Good job Lakota. I found this site as well, www.allhscodes.com Not a complete listing but a good example of what and how hs codes work. Normal (?) hs codes are 4-6 digits and schedule B (?) hs codes are 10 digit.