Based on the information below, do the task.

Task

Type 10 Type 20 exercise

An importer is creating a Type 10 and 20 for a client looking to temporarily store their goods before being released. The Information for the transaction is described below:

Items being imported:

Lubricating oils for diesel engines (2710.19.91.20 U/M LTR MFN: 12%)

1 Sold @ $580 USD

Propane containers (2711.12.10.00 U/M LTR MFN: 18%)

1 Sold @ $920 USD

Duration of Time: 3 Years

Both items made in USA but NO CUSMA (MFN rates only)

*1st transaction number going into warehouse: 26624-124512451

*2nd transaction number to get out of the warehouse: 26624- 000000005

US exchange rate: 1.322 (D/S date of Apr 17)

US Port: 3241.... CBSA Office: 391....... Highway Mode of Trans.... warehouse 25

CCN: 7887 - 25984635

*** The Importer will process both items going into the warehouse, but will extract the propane container.

TASK: Using the information above, Create Type 10 and 20 B3s.

Additional information

Duties Relief

Customs Bonded Warehouses (CBW)

Drawbacks

Duty Deferral Program (D7)

Duties Relief

Customs Bonded Warehouse

Drawback

Duties Relief Program (K90)

Goods will be exported either in the same condition or after being used, consumed or expended in the processing of other goods;

no payment of customs duties, anti-dumping and countervailing duties, or excise taxes;

GST is not relieved under the Duties Relief Program.

Bonded Warehouses (E401)

"CBWs are facilities licensed and regulated by the Canada Border Services Agency (CBSA), and operated by the private sector. Goods in a CBW are considered to be imported into Canada but have not been released from the CBSA. Imported and domestic goods destined for export may be placed in a CBW provided that the goods are readily identifiable." - CBSA Benefits to Importer*

Type 10 and 20 B3 Entries*

(D17-1-10 Appendix C)

Example 1 - Type 10

Example 5 - Type 20 (consumption)

Benefits n Consolidate imported and domestic goods for export;

Perform certain operations on the goods while in the bonded warehouse; or

import goods temporarily for display at conventions, exhibitions or trade shows.

Customs Bonded Warehouse

imported into Canada but not released

The deferral continues until the goods are removed from the bonded warehouse and either released for Canadian domestic consumption or exported.

Time limit: 4 years

5 years for intoxicating liquor and tobacco products

Customs Bonded Warehouses

To input goods into Bonded Warehouse - importer must POST SECURITY - $ deposit 60% of all D&T paid the previous year (reviewed annually)

Bonded Warehouses Licensed warehouses in private sector CBSA routinely inspects & is present

Bonded Sufferance Warehouses - specially for CBSA to inspect goods BEFORE being released

Max time in sufferance warehouse is 40 days unless perishable (4 days)

Type 10 Type 20 Checklist (D17-1- 10 appendix C examples 1 & 5)

Type 10

1. "10" in Field 3

2. Total VFD

3. Time Limit (field 18)

4. Foreign Currency

5. Freight

6. Stop at Field 37 (VFD)

7. CCN & Carrier Code (45&46)

8. NO Summary Block (47-50)

9. Warehouse #

Type 20

1. NO Total VFD

2. No US Port of Exit

3. No D/S Date

4. CAD Dollars (field 17)

5. No Time Limit

6. No freight

7. No Mode of transport

8. "20" in field 3

9. Field 36 = 37

10. Calculate D&T and fill summary block

11. No CCN or Carrier Code

12. Warehouse #

13. **Field 24 and 25 Prev Transaction and Line*

K32 Drawbacks

Incentive to Domestic Producers/ Importers/ Exporters

Waiving the Right to Drawback n NO GST Refunds!

Legislative Authority - Section 113

Time Limits

Obsolete + Surplus Imports (E15)

LESSER OF THE TWO**

Certificates and Waivers

Form K32A, Certificate of Importation,

Sale or Transfer is used to waive the duties to someone other than the importer.

Form K32B, Drawback Certificate of Sale for Exportation

is used when the claimant is not the exporter.

"the lesser of the two duties"

(a) the amount of customs duties paid or owed on imported goods entering Canada;

(b) the amount of customs duties paid on the goods entering the other CUSMA country.