Guidance document on Off-Road Compression-Ignition Engine Emission Regulations: chapter 8

H. Importing an engine

H.1 Introduction to importing an engine

Only engines that comply with the regulations may be imported.

Under section 19 of the regulations, any companyimporting an engine must submit a signed declaration to the Minister prior to importation. This declaration must contain the following:

(a) the name and street address and, if different, the mailing address of the importer

(b) in respect of an engine that is not installed in or on a machine, the name of the manufacturer and the make, model and model year of the engine

(c) in respect of a machine, the name of the manufacturer and the make, model and type of the machine, as well as the name of the manufacturer and the make, model and model year of the engine that is installed in or on the machine

(d) the expected date of importation

(e) in the case of a company:

(i) the business number assigned to the company by the Minister of National Revenue

(ii) a statement that the engine bears the national emissions mark, or that the company is either able to produce the evidence of conformity referred to in section 16 or complies with section 17

Under paragraph19 (1)(f) of the regulations, if the importer is not a company, the declaration must include:

(i) a statement from the person that the engine bears one of the following:

(A) the national emissions mark, or

(B) the emission control information label referred to in paragraph 16(d) showing that the engine conformed to the emission standards of the Environmental Protection Agency (EPA) in effect at the time of its manufacture, or

(C) a label showing that the engine conformed to the emission standards of the California Air Resources Board in effect at the time of its manufacture, or

(D) the label referred to in section 10.1 showing that the engine conformed to these regulations at the time of its manufacture, or

(ii) a statement from the manufacturer or its duly authorized representative that the engine conformed to the standards set out in these regulations, or to the standards referred to in clause (i)(B) or (C), at the time of its manufacture.

The presence of one of the above-identified labels on the engine would indicate that the engine conforms to Canadian emission standards at the time of manufacture.

Declarations may be submitted to the Regulatory Administration Section at Environment Canada, as indicated on the available importation form.

H.2 Are there special provisions when importing five or less engines or machines?

If you are not a company (as defined in the act, see D.2), and you import five or less engines or machines a year, you are not required to submit an import declaration. This provision is found in subsection 19(1.1). Engines you import must still meet other applicable requirements of the regulations, including the emission standards.

H.3 What is the business number required in subparagraph 19(1)(e)(i) of the regulations?

The business number (BN) is assigned by the Canada Revenue Agency to uniquely identify business entities and must be supplied on customs documents. It is part of a numbering system that simplifies and streamlines the way businesses deal with the federal government.

More information on business numbers is available online.

H.4 Is there a template for the importation declaration information specified in section 19 of the regulations?

The regulations set out the information that must be included in the declaration, but do not prescribe a set format or template. The information required in the declaration can be provided in any format as long as the prescribed information is included in a signed declaration that is submitted to the Minister prior to importation. However, to facilitate submitting the required information, a recommended template has been developed. The template may be obtained by contacting the Regulatory Administration Section at Environment Canada, or it may be accessed from the CEPA Registry.

If the information provided on the commercial invoice required at importation corresponds to the requirements of the regulations, the company may add the statement of conformity required under paragraph 19(1)(e) of the regulations onto their commercial invoice and submit this document to the Minister prior to importation.

If eligible, a company may provide a bulk declaration referred to in subsection 19(2) of the regulations (see H.7). A person may submit the declaration as a separate document, as long as all the information requirements for the importation declaration are met.

H.5 Is there any suggested wording for the statement in subparagraph 19(1)(e)(ii) of the regulations?

Subparagraph 19(1)(e)(ii) of the regulations requires that a company submit a statement indicating that “the engine bears the national emissions mark, or that the company is either able to produce the evidence of conformity referred to in section 16 or complies with section 17”. The recommended template (see H.4) contains the applicable statements for various scenarios.

H.6 Who is eligible to sign the import declaration as the “duly authorized representative” of the company?

“Duly authorized representative” means a person with written authority to act on behalf of the company. An authorized employee of the company or a separate commercial entity under contract with the company, such as a customs broker, can sign documents as the duly authorized representative of the company.

H.7 I import more than 50 engines, what are my options for submitting importation declarations to Environment Canada?

If you are a company and you import more than 50 engines in a calendar year, you can request to submit your import declarations on a periodic basis, rather than for each importation event.

To do this, a company must send a notice of intent to the Director of the Transportation Division to inform Environment Canada of its intention to use bulk declaration reporting.

The notice must contain the following information:

1. company name
2. business number assigned to the company by the Minister of National Revenue
3. estimated annual quantity of engines and machines containing the engines to be imported into Canada. Of these, estimate the number which will be transition engines
4. estimated frequency of importations (for example, 1 shipment/year, 1 shipment/month)
5. desired frequency of bulk declaration reports (the actual frequency will be set by Environment Canada)

Following acknowledgement of the notice of intent from Environment Canada, indicating that bulk declaration reporting is appropriate, the company would then be required to submit a bulk declaration. The declaration would provide a breakdown of engines and machines to be imported in the calendar year by applicable declaration statement. A suggested format for providing this breakdown is below:

This declaration would need to be submitted as soon as possible and prior to importation. (A due date may be specified in the acknowledgement.) Alternatively, this declaration could be submitted with the notice of intent. Please note that until the notice of intent is acknowledged by Environment Canada, the form and manner (for example, desired reporting frequency) is not considered final.

In the case of bulk declarations on an annual basis, a declaration update confirming the preliminary information submitted as part of your initial declaration, such as the quantity imported and applicable declaration statement for each model, is to be submitted no later than 90 days after the end of the calendar year. If transition engines are imported during the calendar year, then the declaration update is to be submitted with the transition engine annual report referred to in F.6.5.

All information may be submitted to the Regulatory Administration Section at Environment Canada.

At the time of publication of this document, there is no specified printed form for the bulk declaration report. Please consult the CEPA registry web section to determine if any templates have been made available.

H.8 Are there any reporting requirements for engines that I export?

No. Only engines that stay in Canada need to be reported on. Engines destined for export must be accompanied by the written statement required in paragraph 5(2)(f) (see C.3). In the event that the final destination of the engine or machine is not known, it must be imported to meet all the requirements of the Regulations as if it were to stay in Canada.

H.9 I supply machines to countries that do not have the same emission standards. Can I import higher emitting engines to install in or on those machines if I am going to export them?

Yes, paragraph 5(2)(f) allows the import of engines that: “are being exported and are accompanied by a written statement establishing that they will not be sold for use or used in Canada”. Note that while these engines are in Canada, they may not be sold for use or used, and they must have the written statement with them at all times.

H.10 What is the procedure for importing loose transition engines, for which the type of machine these engines will be installed in is not known?

If the importer does not know whether the transition engine will be installed in a machine that is sold concurrently in Canada and the United States, then the engine must be brought into Canada as a Canada-unique transition engine, which requires a submission of evidence of conformity prior to importation (see G.5).

H.11 What are the requirements for the import of an incomplete engine?

Importing “incomplete” engines (meaning engines that require either the addition of an emission control system (for example, diesel particulate filter) or other equipment or parts to function and/or meet the requirements of the regulations) is permitted as long as the two conditions below are met. First, a declaration must be submitted to Environment Canada. Second, the engine must be made to meet the requirements of the regulations while in the company’s possession and control. Specifically:

1. You must submit a declaration to Environment Canada before importation. The declaration must contain the information described in paragraphs 19(1)(a) to (d) and subparagraph 19(1)(e)(i) of the regulations and section 21:
   1. the name and street address and, if different, the mailing address of the importer
   2. in respect of an engine that is not installed in or on a machine, the name of the manufacturer and the make, model and model year of the engine
   3. in respect of a machine, the name of the manufacturer and the make, model and type of the machine, as well as the name of the manufacturer and the make, model and model year of the engine that is installed in or on the machine
   4. the expected date of importation
   5. a statement from the engine manufacturer that the engine will, when completed in accordance with the instructions provided by the manufacturer, conform to the prescribed standards
   6. a statement from the company that the engine will be completed in accordance with the engine manufacturer’s instructions
2. Ensure that the engine meets the requirements of the regulations before it leaves your possession and control and is sold at the retail level. This can be done by:
   1. Completing the engine yourself. This may make you an engine manufacturer and you may be required to apply the national emissions mark (see D.3).
   2. Prior to selling the engine to a third party, ensuring that the third party will complete the engine as per the requirements of the regulations. Note that this means you are responsible for how the engine is assembled and you must fulfill the requirements of an engine manufacturer. You may be required to apply the national emissions mark (see D.3).
   3. You may delegate the final assembly of the engine to a person/company. You are still responsible for ensuring that the engine meets the requirements of the regulations before it reaches the end user. Note that this means you are responsible for how the engine is assembled and you must fulfill the requirements of an engine manufacturer. You may be required to apply the national emissions mark (see D.3).

H.12 How do I import engines into Canada for testing and evaluation purposes?

Under paragraph 155(1)(a) of the act, engines that are used solely for purposes of exhibition, demonstration, evaluation or testing do not need to meet the requirements of the Regulations upon import into Canada.

However, as stated in subsection 20(1), prior to importation, the company must submit to the Minister the following information signed by a duly authorized company representative:

1. In respect of an engine that is not installed in or on a machine, the name of the manufacturer and the make, model, unique identification number and model year of the engine;
2. In respect of a machine, the name of the manufacturer and the make, model and type of the machine, as well as the name of the manufacturer and the make, model, unique identification number and model year of the engine that is installed in or on the machine;
3. The expected date of importation;
4. In the case of a company, the business number assigned to the company by the Minister of National Revenue,
5. A written statement that the engine will be used in Canada solely for purposes of exhibition, demonstration, evaluation or testing;
   1. For greater certainty, you will need to provide evidence of the intended purpose. This could include: invitation to exhibit or demonstrate the engine, test plan or test protocol for the engine.
6. The date on which the engine will be removed from Canada, destroyed or will conform to the regulations;
   1. For greater certainty, you will need to provide evidence that the engine was removed, destroyed or made to conform to the regulations. Evidence could be:
      1. shipping statement that the engine was removed,
      2. photo evidence of the engine’s destruction (note: the unique identification number will need to be visible),
      3. evidence that the engine was brought into compliance and meets the requirements in subparagraph 19(1)(e)(ii),
         1. This could include the EPA label and certificate;
   2. Note that the engine may only stay in Canada for a period of no longer than one year. The company must apply in writing to the Minister prior to importation if it would like to obtain an acknowledgement from the Minister specifying a different period of time that the engine can remain in Canada.
7. The engine’s unique identification number.

Companies are encouraged to contact the Regulatory Administration Section at Environment Canada if they are planning to import into Canada an engine solely for purposes of exhibition, demonstration, evaluation or testing.

H.13 I am importing engines and machines for my own (or my company’s) use, what do I need to do?

The engines or machines you import would still have to meet the emission standards and labelling requirements. If you import five or less engines per calendar year (either loose or in a machine), you do not have to submit an import declaration or transition engine annual reports.

H.14 Are there any requirements in the regulations that apply to “swing” engines?

Swing engines are typically used to replace engines placed out of service for maintenance. Swing engines are not defined in the regulations. Requirements that would apply to “swing” engines would therefore depend on other conditions under which this engine is manufactured, imported or used. If you have any questions on swing engines and are not sure of the requirements, please contact the Regulatory Administration Section at Environment Canada.

H.15 Are there other importation requirements not outlined in the regulations that I should be aware of?

The Canada Border Service Agency (CBSA) has its own importation requirements that are not part of these regulations, but that importers should be aware of. CBSA requires that the following documents be submitted when importing:

1. a Canada Customs Invoice - which would include a detailed description, HS codes (see Appendix IX), vendor, and information on country of origin
2. a completed B3 Canada Customs Coding Form

Permits, licenses and certificates required by other government departments and agencies and a step-by-step guide for importing commercial goods can also be found online.