This blog article will explain what CBSA record keeping entails, why it matters for Amazon FBA and other e-commerce sellers, and how our new CBSA record storage service helps you stay compliant without tying you down to a single customs broker.
Understanding CBSA Record-keeping Requirements
CBSA's 6-Year Rule: The CBSA requires all importers to keep detailed records of their imports for six years after the importation date (cbsa-asfc.gc.ca). These records include things like invoices, shipping documents, proof of payment of duties/taxes, origin of goods, and any permits or advance rulings related to your shipments. In other words, essentially "all records" relating to your imported goods must be retained for audit purposes. This applies equally to Canadian businesses and to foreign importers (NRIs) who ship goods into Canada.
Where Must Records Be Kept? Under Canadian customs law (Section 40(1) of the Customs Act), your import records are supposed to be kept at your place of business in Canada. Of course, if you're an overseas seller, you likely don't have a physical office in Canada. The CBSA anticipated this scenario: non-resident importers can request permission to keep their records at an alternate location in Canada.
In fact, you are required to designate an agent in Canada (such as a licensed customs broker or accountant) who will maintain these records on your behalf, with CBSA's approval (cbsa-asfc.gc.ca). This is typically done by submitting an official request (via form BSF900 through the CBSA's CARM portal) to authorize a specific Canadian address/agent for record storage.
Why is this important? CBSA can ask to inspect your records at any time as part of a trade compliance audit. If you cannot produce records in Canada when asked, you risk heavy penalties. Failing to keep records in Canada for the required period can trigger fines of up to $25,000 per audit under Canada's Administrative Monetary Penalty System (AMPS). Likewise, not providing records when requested can lead to escalating penalties on each request.
In short, proper record-keeping isn't optional. It's a legal must for anyone importing into Canada, including Amazon FBA sellers overseas.
Non-resident Importers and the Need for a Canadian Records Agent
Who is a Non-Resident Importer? A Non-Resident Importer (NRI) is simply an importer of record who does not have a physical presence in Canada. Many Amazon sellers and global e-commerce businesses fall into this category when they ship inventory to Canadian customers or Amazon fulfillment centers (FBA warehouses). As an NRI, you enjoy the benefit of accessing the Canadian market without setting up a local company, but you also inherit the same compliance obligations as Canadian importers. That includes registering for a Canadian business/import number and, of course, maintaining your importation records properly.
The Records Maintenance Challenge: Since you likely have no office in Canada, you need another way to satisfy the "keep records in Canada" rule. The CBSA allows you to designate a Canadian party to hold your records. Some NRIs have relied on their customs broker to fulfill this role, usually if they are exclusively using them. For example, if you hire a customs brokerage firm to handle your shipments into Canada, they might offer to store the required documents for you at their Canadian office, but that means you are tied to that customs broker. An accountant or another authorized agent in Canada can also do this. The key is that CBSA must officially approve where and with whom your records are kept.
In fact, starting May 2024, CBSA has tightened enforcement of this requirement: new importer accounts won't even be issued unless you have an approved records maintenance arrangement (Form BSF900) in place via the CARM portal (cbsa-asfc.gc.ca). This means before you can begin importing, you must have your record-keeping agent and location sorted out, underscoring how critical this step is for new Amazon sellers expanding to Canada.
Consequences of Non-Compliance: Ignoring this requirement is risky. CBSA's audits are not hypothetical. They do conduct trade compliance verifications. If your records aren't where they're supposed to be (i.e., accessible in Canada through your designated agent) or you haven't kept the necessary documentation, you could face those steep fines (up to $25,000 per audit as noted above) and potential disruptions to your ability to import. For a small business or individual seller, such penalties can be devastating.
Beyond fines, non-compliance can damage your credibility with customs authoriti