Customs broker licence

A buyer of a customs brokerage meets this licence in due diligence. The CBSA says only a licensed customs broker may account for goods and pay duties under section 32 of the Customs Act as an agent of an importer or owner. It adds that acting as a broker without a licence may result in a penalty.

Qualification and changes

Under the Customs Brokers Licensing Regulations, a corporation is qualified if, among other conditions, all of its directors are of good character, a majority are citizens or permanent residents of Canada and at least one officer has sufficient knowledge of import and export laws and procedures. A broker must immediately notify the Minister in writing of any change in the officers or directors, in the ownership of the business or corporation, or in the individuals meeting the knowledge requirement.

What to ask

• Which individuals meet the knowledge requirement, and will they stay after closing?
• Will officers, directors or owners change, and has the Minister been notified in writing?
• Does the Minister have any ground to suspend or cancel under section 18 of the Regulations?

See buying a customs brokerage in Canada and the entry on licence re-application.