Definition and Purpose of a Sufferance Warehouse

A sufferance warehouse is a privately-owned facility that has been licensed and is regulated by the Canada Border Services Agency (CBSA). Its main job is to provide a temporary holding space for imported goods that have not yet been cleared by customs authorities. Think of it as a secure, designated area where shipments can be kept while importers or their representatives sort out the necessary paperwork, pay any applicable duties and taxes, or undergo required inspections. This temporary storage is vital for keeping the import process moving smoothly and preventing congestion at ports of entry. The primary goal is to facilitate efficient customs clearance and streamline the overall import process for goods entering Canada.

The Role in Customs Clearance and Import Processes

Sufferance warehouses play a significant part in the broader customs clearance and import landscape. When goods arrive in Canada but cannot be immediately released by the CBSA, they can be moved to a sufferance warehouse. This allows the goods to enter the country and be stored securely without causing delays at the primary inspection points. It provides a necessary holding space for shipments that might have issues like incomplete documentation, discrepancies in paperwork, or require further examination by customs officials. This arrangement helps expedite inspections and ensures compliance with various regulations, ultimately contributing to a more efficient flow of international trade. The CBSA Assessment and Revenue Management (CARM) system is now the official system of record for importers and trade chain partners, impacting how these processes are managed [c515].

Distinguishing Sufferance Warehouses from Bonded Warehouses

While both sufferance warehouses and bonded warehouses serve as storage facilities for imported goods, their functions and regulatory frameworks differ. A sufferance warehouse is primarily for temporary storage of goods awaiting customs clearance. These are privately owned and licensed by the CBSA. In contrast, a bonded warehouse is also licensed by the CBSA, but it allows for goods to be stored for extended periods without payment of duties and taxes, provided they are under bond. This means duties are deferred until the goods are released into the Canadian market or exported. Sufferance warehouses are more about facilitating the immediate clearance process, whereas bonded warehouses offer a longer-term solution for duty deferral. The specific needs of an importer or carrier will dictate which type of facility is most appropriate for their situation.

Here’s a quick comparison:

Feature	Sufferance Warehouse	Bonded Warehouse
Primary Purpose	Temporary storage awaiting customs clearance	Storage with duty deferral
Storage Duration	Short-term, until clearance is granted	Longer-term, until release or export
Duty Payment	Duties and taxes are typically paid upon release	Duties and taxes are deferred until release
Licensing Body	Canada Border Services Agency (CBSA)	Canada Border Services Agency (CBSA)
Ownership	Privately owned and operated	Privately owned and operated

The distinction between these two types of facilities is important for managing import logistics and financial obligations effectively. Understanding these differences can prevent unexpected costs and compliance issues.

Eligibility and Application for a Sufferance Warehouse Licence

Criteria for Applicant Character and Financial Standing

Before you can even think about getting a sufferance warehouse licence, the Canada Border Services Agency (CBSA) wants to make sure you’re a good fit. This isn’t just about having the right building; it’s about who you are and if you’ve got the financial muscle to run things properly. They’ll look into your character. This means they want to see that you’ve got a clean record, no shady dealings in your past that might make them worry about how you’ll handle imported goods. It’s about trust, really. You need to show you’re someone who will follow the rules.

Then there’s the money side of things. You’ve got to prove you have enough financial resources. This isn’t just for buying or leasing the warehouse itself. It also covers having the right facilities, the necessary equipment, enough staff, and the services needed to operate the warehouse smoothly. Think of it as a financial stability check. They want to know you won’t go belly-up halfway through the process, leaving a mess of goods and paperwork.

Assessing the Need for a Sufferance Warehouse in a Specific Area

It’s not enough to just want a sufferance warehouse; you have to show there’s a real need for one where you plan to set it up. The CBSA looks at the business activity in that particular area. They consider the volume and the types of goods being imported. If there are already plenty of warehouses serving the importers in that region, and things are running smoothly, they might decide another one isn’t necessary. It’s about making sure these licences are granted where they’ll actually help streamline the import process, not just add more competition without a clear benefit.

They’re trying to avoid situations where a warehouse isn’t being used much, which isn’t efficient for anyone. So, you’ll likely need to provide some information or justification about why your proposed warehouse is needed. This could involve looking at current import volumes, potential growth, and any existing storage limitations that your facility would address.

Site Location and Proximity to Transportation and Customs Offices

Location, location, location – it really matters for a sufferance warehouse. The CBSA wants your proposed site to be conveniently located. This usually means it needs to be reasonably close to major transportation routes. Think highways, major roads, or even rail lines if that’s relevant to the area. The easier it is for trucks and other transport to get to and from your facility, the better.

Equally important is the proximity to a customs office. Having your warehouse near where customs officers work makes inspections and processing much more efficient. It cuts down on travel time for officers and helps keep goods moving. So, when you’re planning your application, pay close attention to where your potential site is in relation to these key points. It’s a practical consideration that plays a big role in whether your application gets approved.

The Application Process for a Sufferance Warehouse Licence

Getting a licence for a sufferance warehouse involves a structured application process with the Canada Border Services Agency (CBSA). It’s not just about filling out a form; it requires careful preparation and submission of detailed information to demonstrate your suitability and the viability of your proposed operation.

Submitting the Prescribed Application Form

The first official step is to obtain and complete the correct application form provided by the CBSA. This form is the gateway to your licence and requires accurate details about your business, the proposed warehouse, and your operational plans. It is imperative that all sections are filled out completely and truthfully. Missing information or errors can lead to significant delays or outright rejection of your application. You’ll need to provide details such as your company’s legal name, business address, contact information, and the specific location of the proposed sufferance warehouse.

Detailed Site Plans and Facility Specifications

Alongside the application form, you must submit detailed plans of the proposed sufferance warehouse. These plans are not just simple sketches; they need to be professional architectural or engineering drawings that clearly illustrate:

The overall layout of the facility.
The specific areas designated for the storage of goods.
The construction type of the building, whether existing or to be built.
The location of entrances, exits, and any security features.
The proposed site’s proximity to major transportation routes and customs offices.

These plans help the CBSA assess whether the facility meets the required standards for security, accessibility, and operational efficiency. They need to show that the space is adequate for the intended purpose and can be secured effectively.

Providing Required Financial Security

To be granted a licence, you must provide financial security to the CBSA. This is typically in the form of a bond or a guarantee. The amount of security required is determined by the CBSA and is based on factors such as the anticipated volume of goods to be stored and the potential risks involved. This security serves as a financial safeguard for the government, ensuring that any duties, taxes, or penalties owed can be recovered if the licensee fails to meet their obligations. The specific requirements for financial security will be communicated to you during the application process, and it’s a critical component that must be in place before a licence can be issued.

Operational Requirements for Licensed Sufferance Warehouses

Facilities and Equipment for Customs Officer Use

Licensed sufferance warehouses must provide specific facilities and equipment to support customs officers in their duties. This includes washroom facilities and offices, along with the necessary heat, light, and cleaning services, particularly if requested by the chief customs officer. Adequate space must be allocated for the examination of imported goods. Furthermore, the licensee is responsible for providing the personnel and equipment needed to make these goods available for inspection. If requested by the chief customs officer, a detention compound or parking area for conveyances holding imported goods is also required.

Personnel and Security Measures for Goods Storage

Maintaining the security of the warehouse and the goods within it is paramount. Licensees must implement robust procedures to control access to the sufferance warehouse and ensure that all personnel are aware of and adhere to these security protocols. This involves having sturdy doors and building components, secure locks on all doors and windows, and clear signage indicating applicable security requirements. For designated goods, additional facilities and equipment may be necessary to guarantee their secure storage. Access to storage areas is strictly limited to authorized personnel.

Record-Keeping and Compliance with CBSA Regulations

Licensees are obligated to maintain meticulous records of all goods entering and exiting the facility. This includes detailed tracking of inventory and movements. A schedule of charges for services offered must be readily available for examination by any interested party. Any facilities, services, personnel, or equipment provided to customs officers for examination purposes must be offered free of charge. Adherence to all Canada Border Services Agency (CBSA) regulations is mandatory to maintain the licence.

Security Procedures: Implement and enforce strict access control measures.
Record Management: Maintain accurate and up-to-date logs of all goods.
Officer Support: Provide necessary space, personnel, and equipment for customs inspections.
Compliance: Strictly follow all CBSA directives and regulations.

Types of Goods Stored in Sufferance Warehouses

Sufferance warehouses are equipped to handle a broad spectrum of imported items, acting as a temporary holding area before goods are officially cleared by the Canada Border Services Agency (CBSA). The specific types of goods accepted can vary based on the warehouse’s licence classification, but generally, they accommodate a wide range of commercial shipments.

General Merchandise and Consumer Goods

Many sufferance warehouses are designated for the storage of everyday items. This includes a vast array of consumer products that are imported for sale within Canada. Think of things like clothing, footwear, household furnishings, kitchenware, and decorative items. These goods typically do not require specialized storage conditions beyond basic security and environmental controls to prevent damage.

Electronics, Textiles, and Specific Commodities

Beyond general merchandise, these facilities often store more specialized categories. Electronics, such as computers, televisions, and mobile devices, are commonly held. Similarly, textiles, including fabrics, yarns, and finished apparel, are frequently found in sufferance warehouses. Some warehouses are licensed for specific commodities, which might include items like used household goods or items designated for provincial liquor authorities.

Foodstuffs and Perishable Items

Storing food products presents unique challenges. Non-perishable items like canned goods, packaged snacks, beverages, rice, and flour can be stored in standard sufferance warehouse environments. However, perishable goods, such as fresh fruits, vegetables, meats, and seafood, require more stringent conditions. These items often have very short storage time limits and may necessitate refrigerated or temperature-controlled areas within the warehouse to maintain their integrity and comply with CBSA regulations.

Designated Goods Requiring Special Storage

Certain imported items fall into categories that demand particular attention and may have specific licence requirements for the warehouse. This can include goods subject to strict regulatory oversight or those with limited storage durations. For instance, firearms, certain types of ammunition, prohibited weapons, tobacco products, and specific prescribed substances have defined maximum storage periods. The classification of the warehouse, such as Type S (Specific Commodities), dictates its suitability for these items.

Usage Scenarios for Sufferance Warehouses

Sufferance warehouses serve a critical function in the Canadian import process, acting as temporary holding areas for goods that haven’t yet cleared Canada Border Services Agency (CBSA) scrutiny. They are particularly useful when the standard import pathway hits a snag, offering a practical solution to keep goods moving and businesses operating.

Handling Delayed Customs Clearance

Sometimes, shipments arrive at the Canadian border, but the necessary paperwork isn’t quite in order. This could be due to a missing permit, an incorrect tariff classification, or simply a backlog at the customs office. When a shipment faces delays in obtaining final customs release, a sufferance warehouse provides a secure and approved location for the goods to be held. This prevents congestion at ports of entry and allows the importer or carrier time to resolve the documentation issues without the goods being held indefinitely or returned. The goods remain under CBSA supervision while the importer works to satisfy all clearance requirements.

Resolving Incomplete or Discrepant Documentation

Discrepancies in commercial invoices, bills of lading, or other import documents are common. These errors, whether minor or significant, can halt the customs clearance process. A sufferance warehouse offers a practical solution. For instance, a shipment of electronics might arrive with an invoice that lists the wrong model numbers. Instead of the entire shipment being refused or returned, it can be moved to a sufferance warehouse. This allows the importer to correct the documentation, obtain necessary amendments, and resubmit it to the CBSA for processing. This is especially important for time-sensitive goods where delays could lead to spoilage or obsolescence.

Facilitating Controlled Goods and Inspections

Certain types of goods are subject to specific regulations and may require thorough inspection by various government agencies, not just the CBSA. This can include items like food products, agricultural goods, or even certain types of machinery. A sufferance warehouse provides a controlled environment where these inspections can take place. The goods are moved from the point of arrival to the warehouse, where officials can conduct their examinations without disrupting general port operations. This ensures that all regulatory requirements are met before the goods are released into the Canadian market. The warehouse acts as a neutral ground for compliance verification.

Specific Classifications of Sufferance Warehouses

Sufferance warehouses aren’t all the same; they come in different types, each designed for specific kinds of goods or transport methods. Knowing these distinctions is important for understanding how they fit into the import process.

Type A, B, and C Warehouses for General Merchandise

These types are generally for everyday goods. Type A warehouses are often run by transportation companies like rail, marine, or airlines, holding goods that come through their system. Type B warehouses are typically for goods arriving by highway in commercial trucks. Type C facilities are usually third-party operations, meaning they’re not tied to a single transport company. These are often used by consolidators or customs brokers to sort and store shipments before they’re officially entered into Canada.

Type S Warehouses for Specific Commodities

Type S warehouses are set up for particular types of goods. They have further subdivisions:

SF: For items like fruits, vegetables, meat, and even human plasma.
SH: Used for storing household goods and personal belongings that have been used.
SL: Designated for goods handled by provincial liquor authorities.
SO: This is a catch-all for other specific commodities that are listed on the warehouse’s license.

Type SO and SO (CSA) for Specialized Use

The "SO" designation, as mentioned, covers various specific commodities. The "SO (CSA)" variant is a bit more specialized, intended specifically for participants in the Customs Self-Assessment program, but only for goods arriving by highway. This streamlines the process for those who meet the CSA criteria.

Type PS Warehouses for Rail Transported Goods

Type PS warehouses are specifically for goods that arrive by train. They act as a holding area for entire carloads of imported goods while they await release from the Canada Border Services Agency (CBSA). This classification helps manage the flow of rail freight efficiently.

Duration of Goods Storage in Sufferance Warehouses

Standard Storage Periods for Most Goods

When goods arrive in Canada and are placed in a sufferance warehouse, they aren’t cleared for entry yet. They’re essentially waiting for the Canada Border Services Agency (CBSA) to give the final go-ahead. For most general merchandise, this waiting period has a limit. Typically, goods can remain in a sufferance warehouse for a maximum of 40 days from the date they are officially reported to the CBSA. It’s important for importers and carriers to keep a close eye on this timeframe to avoid issues.

Time Limits for Perishables and Prescribed Substances

Some items just can’t wait around for too long. Perishable goods, like fresh produce or dairy, have a much shorter window. They generally must be cleared or moved out within four days. For prescribed substances, which might include certain controlled materials, the limit is extended slightly to 14 days. This shorter duration is in place to manage the risk associated with these types of goods and to keep the import process moving efficiently.

Storage Regulations for Firearms and Spirits

Certain categories of goods have their own specific storage rules within sufferance warehouses. For items like firearms, prohibited weapons, and tobacco products, the maximum storage period is also 14 days. Spirits, on the other hand, can be stored for up to 21 days. These distinct time limits are set by the CBSA to manage the security and regulatory aspects associated with these particular commodities. Exceeding these limits can lead to penalties, including the potential seizure of the goods.

It is the responsibility of the importer or their agent to ensure that all goods are accounted for and cleared within the stipulated timeframes. Failure to do so can result in significant complications and additional costs.

Here’s a quick look at some common time limits:

Goods Category	Maximum Storage Period
General Merchandise	40 days
Perishable Goods	4 days
Prescribed Substances	14 days
Firearms, Weapons, Tobacco	14 days
Spirits	21 days

Understanding these durations is key to managing your importation process smoothly and avoiding unnecessary delays or penalties from the CBSA.

Goods Prohibited from Sufferance Warehouse Storage

Exclusions for Hazardous and Illegal Materials

While sufferance warehouses are designed to hold goods temporarily during customs processing, not all items are permitted. Certain categories of goods are strictly prohibited due to their inherent risks or legal status. The Canada Border Services Agency (CBSA) maintains a clear list of items that cannot be stored in these facilities. This is to protect public safety, security, and the integrity of the supply chain.

Restrictions on Certain Prohibited Imports

Several types of goods are outright banned from sufferance warehouses. These prohibitions are in place to prevent potential harm and to comply with various Canadian laws and regulations. It is the responsibility of the importer and the warehouse licensee to be aware of and adhere to these restrictions.

Hazardous Materials: This includes substances that are flammable, explosive, toxic, or otherwise dangerous. Think of things like certain industrial chemicals, radioactive materials, or volatile compounds. Storing these would pose an unacceptable risk to the warehouse staff, the public, and the environment.
Illegal Goods: Any items that are illegal to possess or import into Canada are not allowed. This category encompasses narcotics, controlled substances, counterfeit goods, and items intended for illicit purposes.
Certain Weapons and Prohibited Devices: While some regulated weapons have specific storage time limits (like firearms for 14 days), items that are completely prohibited from import or possession under Canadian law will not be accepted.

It’s important to remember that goods held in a sufferance warehouse are not yet considered officially entered into Canada. They remain under the control of the CBSA, and any attempt to store prohibited items can lead to severe penalties, including forfeiture of the goods and potential legal action against the importer and the warehouse operator.

Importers must exercise due diligence to confirm that their goods are eligible for sufferance warehouse storage before arranging for their placement. Failure to do so can result in significant delays, additional costs, and the potential loss of the goods themselves.

Maintaining and Amending a Sufferance Warehouse Licence

Procedures for Amending Licence Restrictions

Licences for sufferance warehouses aren’t set in stone. If your business needs change, or if the Canada Border Services Agency (CBSA) identifies a need to adjust the scope of your operations, your licence might need an amendment. The Minister can change restrictions on the types of goods you’re allowed to store or the conditions under which you can receive them. However, this isn’t a quick process. The CBSA is required to give you 90 days’ notice before making any changes to these specific restrictions. This gives you time to prepare for any shifts in your operational parameters.

Modifying Licensee Information

Life happens, and businesses change. If there’s a change in the legal name of the licensee – for instance, if your company undergoes a rebranding or a name change – the licence needs to reflect this. Amending the licence to update the licensee’s name is a straightforward process. It ensures that official documentation accurately represents the business operating the sufferance warehouse.

Reinstatement Following Suspension

If your sufferance warehouse licence has been suspended, it’s not necessarily the end of the road. The Minister has the authority to reinstate a suspended licence. This typically occurs when the CBSA is satisfied that the reasons for the original suspension have been resolved. It’s important to address the issues that led to the suspension promptly and demonstrate that compliance has been restored before seeking reinstatement.

Grounds for Licence Suspension or Cancellation

Operating a sufferance warehouse comes with significant responsibilities, and failing to meet these can lead to serious consequences, including the suspension or cancellation of your licence. The Canada Border Services Agency (CBSA) has specific regulations in place to maintain the integrity of the import and export process.

Non-Compliance with Acts and Regulations

One of the primary reasons for licence action is a failure to adhere to any Act of Parliament or its associated regulations that govern the import or export of goods. This is a broad category that can encompass many different scenarios. For instance, if your warehouse becomes a point of entry for prohibited items or if you fail to properly report goods as required by law, it could trigger an investigation. The CBSA expects licensees to be fully aware of and compliant with all relevant legislation. This includes not only customs laws but also any other statutes that might affect the goods stored within your facility.

Dishonest Business Practices and Incompetence

Beyond outright legal non-compliance, the CBSA also looks at the licensee’s conduct and operational capability. Acting dishonestly in business dealings with customs brokers, importers, carriers, or even government officials is grounds for licence review. This could involve fraudulent reporting, misrepresentation of goods, or any behaviour that undermines trust in the supply chain. Similarly, demonstrating incompetence in the operation of the warehouse, such as a consistent failure to secure goods properly or make them available for inspection, can also lead to suspension or cancellation. This might manifest as repeated security breaches or an inability to manage inventory effectively.

Changes in Business Volume or Area Need

Sometimes, the need for a sufferance warehouse can change over time. If the volume of goods being processed through your warehouse significantly decreases to a point where it no longer warrants the licence, the CBSA may consider cancellation. This also applies if the geographic area no longer requires a sufferance warehouse due to shifts in trade patterns or the establishment of alternative facilities. The Agency might also cancel a licence if it determines that it can no longer provide the necessary customs services to the warehouse. These decisions are often based on an assessment of current trade needs and resource allocation.

Bankruptcy and Ownership Changes

Financial stability is a key consideration for any licensed facility. If a licensee becomes bankrupt or is the subject of receivership proceedings concerning their debts, their licence may be suspended or cancelled. This is because such financial distress can impact the ability to maintain the required security, facilities, and operational standards. Changes in ownership or lease arrangements for the licensed premises can also necessitate a review and potential amendment or cancellation of the licence, especially if the new ownership does not meet the initial eligibility criteria. It’s important to keep the CBSA informed of any significant changes in business structure or financial standing.

Reinstatement Following Suspension

If a licence is suspended, there is a possibility for reinstatement. The process typically involves the licensee demonstrating to the Minister that the reasons for the suspension no longer exist. This might require implementing corrective actions, providing evidence of improved compliance, or resolving the issues that led to the suspension. The CBSA will review these representations before making a decision on reinstatement. For more details on regulatory amendments, you can refer to the Customs Sufferance Warehouses Regulations.

Seeking Professional Assistance for Sufferance Warehouse Licences

Getting a sufferance warehouse licence can feel like a maze, and frankly, most people don’t have the time or patience to figure it all out on their own. The rules and regulations set by the Canada Border Services Agency (CBSA) are detailed, and missing even a small requirement can lead to delays or outright rejection of your application. It’s not just about filling out a form; it involves understanding site plans, financial security, and operational standards. Engaging with professionals who specialize in this area can make a significant difference.

Navigating Complex Licensing Requirements

The application process itself requires careful attention to detail. You’ll need to submit specific documentation, including detailed site plans and facility specifications. The CBSA also assesses an applicant’s character and financial standing. Beyond the initial application, there are ongoing operational requirements to consider, such as maintaining adequate facilities and security measures for the goods stored. Professionals can help ensure all these components are addressed correctly from the start, preventing common pitfalls.

Ensuring Compliance with CBSA Regulations

Compliance is key to operating a sufferance warehouse. This includes adhering to strict record-keeping standards and ensuring the secure storage of goods. The CBSA has specific guidelines for different types of goods, and failure to comply can result in penalties, including licence suspension or cancellation. A professional can guide you through these requirements, helping you establish robust procedures that meet regulatory expectations.

Contacting Substance Law for Expert Guidance

When dealing with the intricacies of sufferance warehouse licensing, seeking expert advice is a wise decision. Professionals can assist with:

Preparing and submitting your licence application.
Understanding and meeting the financial security requirements.
Developing operational procedures that align with CBSA standards.
Responding to any inquiries or requests from the CBSA.

Their knowledge of the relevant legislation and agency practices can streamline the process. For instance, understanding the different classifications of warehouses, such as Type A, B, C, S, SO, and PS, and determining which best suits your needs, is something an expert can clarify. They can also advise on the storage periods and any goods that are prohibited from being stored. This level of specialized knowledge is often necessary to successfully obtain and maintain a licence. You can find more information on the procedures for obtaining a licence on the Canada Border Services Agency website.

Operating a sufferance warehouse involves significant responsibilities. Professionals can help manage these responsibilities, ensuring that your business operates smoothly and in full compliance with all applicable laws and regulations. This proactive approach can save time, money, and considerable stress in the long run.

Getting the right permits for a warehouse that handles special items can be tricky. Don’t let the paperwork slow you down. We can help you navigate the process smoothly. Visit our website today to learn how we can assist you with your warehouse license needs.

Frequently Asked Questions

What exactly is a sufferance warehouse?

Think of a sufferance warehouse as a temporary waiting room for goods that have just arrived in Canada but haven’t officially been cleared by customs yet. It’s a safe place, approved by the Canada Border Services Agency (CBSA), where these items can be stored while the importer sorts out the necessary paperwork and pays any required fees. It helps keep the border crossing points from getting too crowded.

Why would someone need to use a sufferance warehouse?

There are a few common reasons. Sometimes, the paperwork for the goods might be incomplete or have mistakes that need fixing. Other times, customs might need to do a more thorough check or inspection of the items. It’s also useful if there’s a delay in getting the final approval from customs for any reason. Basically, it’s a holding area until everything is in order for the goods to enter Canada.

What kinds of items can be stored in a sufferance warehouse?

Many different types of goods can be stored there, like everyday items such as clothes and furniture, electronics, and even some food products. However, there are strict rules. Things like dangerous materials, illegal items, or certain weapons are not allowed. Also, some items, like fresh food or specific regulated goods, have very short time limits for storage.

How long can goods stay in a sufferance warehouse?

Generally, most items can stay for up to 40 days. But this can change depending on what the item is. For example, perishable items like fruits and vegetables usually can only be stored for about four days. Other items, like firearms or certain chemicals, have different, often shorter, time limits as well.

What’s the difference between a sufferance warehouse and a bonded warehouse?

While both are places to store imported goods, a sufferance warehouse is for short-term storage while customs clears the items. A bonded warehouse, on the other hand, is for longer-term storage, often up to four years, where you can defer paying duties and taxes until the goods are eventually removed.

How does a business get a license to operate a sufferance warehouse?

Getting a license involves a detailed application process with the CBSA. You need to show that you’re a person of good character, have enough money to run the facility properly, and that there’s a real need for a warehouse in that area. You also need to have a suitable location close to transportation and customs offices, and the facility itself must meet strict security and operational standards.

What happens if a sufferance warehouse doesn’t follow the rules?

The CBSA has the authority to suspend or even cancel a license if the warehouse operator doesn’t follow the rules. This can happen for various reasons, such as not keeping proper records, issues with security, dishonest business practices, or if the business is facing financial problems like bankruptcy. It’s crucial to follow all regulations to keep the license active.

Can Substance Law help with sufferance warehouse licensing?

Yes, navigating the rules and requirements for sufferance warehouse licenses can be complex. Substance Law specializes in these legal aspects and can provide expert guidance throughout the application process, help ensure you meet all the necessary compliance standards with the CBSA, and assist with any issues that may arise. We recommend contacting us for professional assistance.

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