Remission of Small Customs Entry Errors in Canada: Understanding the $7.50 Rule

When goods are imported into Canada, importers must declare duties and taxes correctly on the customs accounting document submitted to the Canada Border Services Agency (CBSA).

However, in real business situations, small clerical or accounting errors may occur during the preparation of customs documentation. Recognizing this reality, CBSA provides a limited relief mechanism for very small underpayments caused by such mistakes.

This relief is explained in CBSA Memorandum D17-1-9 – Remission of Underpayment Due to Customs Entry Error.

This article explains the legal concept, administrative policy, and practical implications of this rule for importers and customs professionals.

Statement of Facts

CBSA acknowledges that sometimes duties or taxes may be underpaid because of an error on the customs accounting document filed at the time of importation.

According to the memorandum:

“This memorandum outlines the conditions under which a remission shall be granted of customs duties and excise taxes underpaid due to an error on a customs accounting document.”

The purpose of the policy is to deal with minor accounting errors without imposing unnecessary administrative burden on both importers and the customs administration.

Administrative Policy of CBSA

The policy is based on the Customs Accounting Document Error Remission Order.

The remission order states:

“Remission is hereby granted of the amount by which the customs duties imposed under the Customs Tariff and the taxes imposed under Division III of Part IX and under any other Part of the Excise Tax Act on goods imported into Canada were underpaid in error, if the amount payable does not amount to more than $7.50 in respect of any one customs accounting document.”

In simple terms:
If the underpayment caused by a customs entry error is $7.50 or less, CBSA may forgive that amount.

However, this remission is subject to certain conditions.

Key Conditions of the $7.50 Remission Rule

1. The Error Must Occur on a Customs Accounting Document

The rule applies only when the underpayment results from an error on a customs accounting document, historically Form B3 – Canada Customs Coding Form.

Today, this document is referred to as the Canada Accounting Document (CAD) in the CBSA accounting system.

2. The Error Must Be a Bona Fide Error

The remission applies only when the underpayment occurred due to a genuine mistake, such as:

• Clerical errors
• Coding errors
• Minor calculation mistakes

It does not apply to deliberate misdeclarations or fraud.

3. The Threshold is $7.50 per Accounting Document

The remission threshold is $7.50 per accounting document.

• $7.50 or less → CBSA may remit the amount
• More than $7.50 → The importer must pay the adjustment

4. The Calculation is Done Per Document, Not Per Line Item

The remission rule applies to the entire accounting document, not individual line items.

Example:

If a customs accounting document contains several line items and the total underpayment exceeds $7.50, remission will not apply—even if each individual line error is small.

5. Application in CSA and B2 Adjustments

The policy also applies in situations involving:

• CSA (Customs Self Assessment) adjustments
• Form B2 – Adjustment Requests

When preparing blanket adjustments that include multiple accounting documents:

• Only adjustments above $7.50 must be included in the payable amount
• Adjustments $7.50 or less must still be recorded, but they are not payable

This ensures transparency while avoiding unnecessary payments of trivial amounts.

Legal Philosophy Behind the Rule

“De minimis non curat lex.”

Meaning:
The law does not concern itself with trivial matters.

Recovering extremely small amounts would require administrative resources that exceed the value of the amount itself. Therefore, CBSA allows remission of very small underpayments caused by genuine errors.

Practical Example

Suppose an importer files a customs accounting document and later discovers that due to a calculation mistake the duty paid was $6 less than required.

• Since the amount is less than $7.50 → CBSA may remit the amount
• No payment required

However:

• If the underpayment were $9 → The remission rule would not apply
• The importer must correct the entry and pay the additional duty

Key Takeaway for Importers

• Small underpayments caused by genuine errors may be remitted
• The threshold is $7.50 per accounting document
• The rule applies to the total document, not individual lines
• Amounts under $7.50 must still be documented for records

Understanding these rules helps maintain compliance while reducing unnecessary administrative work.

Disclaimer

This article is intended for general educational purposes only. Customs laws and CBSA policies are complex and subject to change.

Importers should consult the Canada Border Services Agency or a licensed customs broker, barrister, or solicitor for advice relating to their specific situation.