Customs Notice 23-22: Consolidation and Deconsolidation of Goods to SF and SH Type Sufferance Warehouses

Ottawa, October 5, 2023

1. The purpose of this notice is to announce that effective immediately consolidation and deconsolidation will be permitted at SF and SH type sufferance warehouses.

2. In 2021, industry stakeholders were consulted to ensure that sufferance warehouse operators supported this change and could continue to meet all program requirements. This policy change was widely accepted and will increase warehouse efficiency and align with current business practices.

3. SF and SH type warehouses now have the same functionality as CW type warehouses including the ability to physically deconsolidate. Electronic house bills may now be destined to and released at SF and SH type warehouses. Consolidated shipments where the primary CCN and electronic house bills all show a destination of an SF or SH type warehouse may be directly delivered to the warehouse of destination. Departmental Memorandum D4-1-4, Customs Sufferance Warehouses will be fully updated in the next revision including the updates to the following paragraphs:

133. Requirements and restrictions for operating warehouse types SF, SH, SO and SO (CSA) are:

• (a) Warehouse Type: SF
  • Delivery requirement: direct delivery permitted
  • Commodity type: perishable goods, e.g. fruits and vegetables, fresh meat, fish, poultry, flowers, human plasma, etc.
  • Mode: air, rail, marine, highway
  • Deconsolidation/consolidation: yes
  • Application type: E400
  • Serviceability: on-site
  • Delegated licensing authority: region
• (b) Warehouse Type: SH
  • Delivery requirement: direct delivery permitted
  • Commodity type: household goods and personal effects
  • Mode: air, rail, marine, highway
  • Deconsolidation/consolidation: yes
  • Application type: E400
  • Serviceability: on-site
  • Delegated licensing authority: region

4. Pre-arrival electronic house bill(s) and an electronic house bill close message are required for all consolidated shipments regardless of the type of sufferance warehouse to which they are destined.

5. Electronic house bills must be transmitted within the prescribed timeframes, depending on the mode of transport. See paragraph 30 of the Memorandum D3-3-1, Freight Forwarder pre-arrival and reporting requirements, for electronic house bill timeframes in all modes. Failing to transmit electronic house bills for a consolidated shipment may result in Administrative Monetary Penalties (AMPS).

6. A Warehouse Arrival Certification Message (WACM) must be transmitted by the sufferance warehouse operator to arrive the highest level cargo document. All electronic house bills linked to the highest level cargo document with the same destination sub-location code will also be arrived and released if a release is on file and in good standing.

7. Paper cargo documents, For example, A8A(B) In Bond – Cargo Control Document or A10 abstract are not permitted to be used to deconsolidated a shipment. Presentation of paper cargo documents to deconsolidate a shipment may result in AMPS.

8. If you have any questions or comments, please direct them to: Licensing Unit at cbsa.licensing_unit-unite_agrements.asfc@cbsa-asfc.gc.ca