Connect CBSA Transaction Numbers to Lot, Production, Scrap, and Export Records
Under the Duty Relief Program, the customs entry shows the material came into Canada. Showing what happened to it afterwards takes records from receiving, production and shipping.
10in6 links the customs transaction to the supplier lot at receiving, then carries it through production batches, scrap and waste, inventory and export shipments, so each lot can be traced back to its CAD transaction and line.
The CAD number stops at the dock.
The Duty Relief Program can let eligible importers defer duties on goods brought into Canada if the goods leave the country again, either unchanged or after processing here. The program is administered by the Canada Border Services Agency (CBSA) — see CBSA's Duty Relief Program page for the official program description and reporting requirements. The operational challenge starts after customs clearance.
A plant might take in several trucks a day from different suppliers, each load covering several part numbers, purchase orders and shipments. The CBSA transaction number (from the CAD / B3) lives in customs documentation. The plant floor operates with supplier tags, lot numbers, production batches, inventory records, scrap entries, and shipping documents.
For any CAD line, the DRP reports and any audit have to show where the material went: how much was exported, how much became scrap or flash, and how much is still in the building.
Customs-to-Receiving Reconciliation
The hardest practical gap in DRP traceability is linking broker and CAD transaction data to the physical supplier lots received at the plant. Customs data lives in one set of records. The skid on the dock has a different identifier on it. Until those two are connected, the diversion, inventory and sales reports all start from a gap.
The best time to connect them is while the paperwork and the skid are in the same place. The receiver matches the broker's record against the ASN, PO and invoice and scans the supplier lot tag. Whether you also print an internal label carrying the transaction number comes down to how your receiving area works today.
- CBSA / CAD transaction number
- CAD line number
- Release date
- Imported part or material number
- PO, ASN, and invoice number
- Received quantity and unit of measure
- Supplier lot number
- Internal lot or batch number
After that, each production batch, scrap entry and shipment inherits the CAD reference from the lot it used, so nobody has to rebuild the chain at month-end.
Seven steps from customs clearance to export
The customs broker provides CAD transaction details (transaction number, line number, release date, country of origin, HS classification, duty rate, GST rate, value) through SFTP, EDI, or structured file import.
At the dock, the CAD transaction is matched to the ASN, PO and invoice, then to the supplier lot and the internal lot or batch it is received into.
Raw material lots are consumed into production batches. Each batch carries the originating CAD transaction reference forward through every operation.
Flash, shavings, process scrap and rejected parts are booked against the lot they came from, so every diverted kilogram or piece traces to a CAD transaction.
Material still on hand is tracked by lot, with quantity, value, duties remitted, GST remitted, and how long it has been on hand.
Finished goods shipments are tied back through the production batch to the consumed lot and the original CAD transaction, with the customer, commercial invoice, destination country, export date and export reference.
Diversion, Import Summary, Inventory, and Sales & Export reports are generated from the same connected record set — in Excel format, on a repeatable schedule.
The reports a manufacturer may need to produce
10in6 can generate each of these for DRP reporting, a review or an audit. Reports can be produced on a monthly cadence in Excel format using validated system data.
Diversion Report
Imported material that was not exported as finished goods — process scrap, flash, shavings, rejected parts, domestic sale, destruction, missing inventory, or material held past the DRP time limit. Combines customs data with production and scrap data to calculate diverted quantity, value, duty owing, and GST owing.
Import Summary Report
Every CAD transaction and line, with description, HS classification, PO, invoice, quantity received, quantity diverted, quantity exported, quantity remaining, duties remitted, GST remitted, and outstanding duty exposure.
Inventory Report
Imported material still on hand, by lot, item, quantity, CAD transaction number, CAD line, value, duties remitted, and GST remitted, plus aging fields for each lot.
Sales & Export Report
Finished goods sold or exported, tied back through the consumed raw material to the original CAD transaction. Includes finished item, quantity shipped, customer, commercial invoice, invoice date, ship-to country, export date, and export document reference.
Six parts of the traceability layer
Lot tracking comes from DQS, production and scrap records from MES, and the broker and ERP connections are integration work our team builds for your site.
Customs and broker data integration
Take in CAD transaction data from your customs broker by whichever transfer method the broker supports.
ERP and inventory integration
Connect to ERP data such as POs, receipts, invoices, item masters, BOMs, routings, costs, exchange rates, inventory records, and shipping records.
Lot and batch traceability
Track supplier lots, internal lots, split lots, production batches, and material consumption through each stage of production.
Production and scrap capture
Each operation records output and scrap the way that suits it. Operators key in rejects, a scan logs a bin of shavings, counts come from the machine, or the system calculates the loss. All of it is booked against the originating transaction.
Aging and timeline visibility
Each imported lot is aged against the DRP time limit, so a lot getting close to it shows up while there is still time to act, before it moves out of compliance.
Report automation
Generate monthly Excel reports from validated system data instead of compiling information from multiple systems by hand.
Example: from imported raw material to exported finished goods
A manufacturer imports raw material into Canada under a Duty Relief Program licence. The customs broker provides CAD transaction details after clearance. The material arrives at the plant with supplier lot tags and is received into the ERP.
During production the lot is consumed into batches. Part of it becomes finished goods, part becomes process scrap, flash or shavings, and the rest stays in inventory. The finished goods are later shipped to a customer outside Canada.
From the records 10in6 keeps along the way, the team can show:
- Which CAD transaction and line the material came from
- Which supplier lot was scanned and consumed
- Which production batch used the lot, and when
- How much became finished goods, and how much became scrap, flash, or shavings
- What remains in inventory, and how long it has been there
- Which finished goods were exported, to whom, and under what export reference
- Which records support each line of the monthly DRP report
Where DRP traceability shows up most often
The program sees the most use in automotive and its supply chain, forging and metals processing, fabricated metals, industrial components and aerospace: plants that bring steel coil, billet or components into Canada, work on them, and ship the finished parts to customers abroad.
Is DRP traceability relevant to your operation?
- You bring raw material or components into Canada
- You ship finished goods, or material in the same condition, out of Canada
- Your operation processes the imported material before export
- You need lot or batch traceability through production
If most of these apply, capturing lot records as material moves through the plant takes a large share of the DRP recordkeeping off your team. Whether you qualify for the program is for CBSA to decide, with advice from your customs broker.
Set up around how your material moves.
The traceability depends on details that differ from plant to plant: supplier tags, the receiving workflow, lot rules, ERP master data, how scrap is calculated, production routes and export documentation.
We configure the traceability layer around those details, so nobody needs a manual workaround when a lot arrives in a way the system didn't expect.
Process mapping
Before any configuration, we walk the receiving area, the production floor and the shipping dock, and write down how supplier lots arrive, how scrap is generated and counted, and how shipping records are produced.
Broker and ERP integration
Our team builds and maintains the connections to your customs broker's data feed and to the POs, receipts, invoices, BOMs, costs, inventory and shipments in your ERP. Your IT department doesn't have to write or look after them.
Operator-ready workflow
Receiving steps, scrap entry and production reporting follow what operators already do, so the scan or entry happens at the dock or the machine as part of the job.
Ongoing support
When you switch brokers, upgrade the ERP or add part numbers, our team updates the traceability layer so it keeps producing the records you need, without a rebuild every year.
Where DRP traceability touches the platform
DRP traceability questions
- What is the Duty Relief Program?
- The Duty Relief Program (DRP) is a Canada Border Services Agency program that can allow eligible importers to bring goods into Canada without paying duties when those goods are later exported, either in the same condition or after being used in further processing. The official program description and reporting requirements are published on CBSA's Duty Relief Program page (cbsa-asfc.gc.ca/import/ddr-red/relief-report-eng.html). Specific eligibility, conditions and timelines are set by CBSA; your customs broker can confirm how they apply to your operation.
- How is DRP different from Duty Drawback?
- DRP defers duties at the time of import: they are not paid up front, provided the goods are later exported within the required DRP timeline. Duty Drawback is a separate program where duties are paid on entry and refunded after the goods are exported, used in producing exported goods, or destroyed. Some manufacturers operate under both programs depending on the goods, timing, and how their broker structures filings. 10in6's traceability layer can support recordkeeping for either program.
- Where does PARS fit into the traceability flow?
- PARS (Pre-Arrival Review System) is the CBSA program that lets brokers submit release information before a truck arrives at the border. The PARS number is used by carriers during clearance and is later resolved into a CAD transaction number. From a plant-floor traceability perspective, the link that matters is the one made at receiving, where the CAD transaction number is connected to the physical supplier lot.
- Does 10in6 file DRP reports with CBSA?
- No. 10in6 does not determine DRP eligibility or file customs declarations. We help manufacturers build the operational traceability and reporting layer that supports their internal compliance process, ERP records, and customs broker workflows.
- How does the CBSA transaction number get connected to physical material?
- Customs transaction data can be received from your broker through SFTP, EDI, or structured file import, and then linked at receiving to the corresponding ASN, PO, invoice, supplier lot, and internal lot or batch. The transaction-to-lot link should be created as close to receipt as possible using broker data, ASN/PO/invoice records, and supplier lot scans.
- Do we need to print labels with the transaction number on them?
- Not necessarily. Optional internal labels, barcode scans, or receiving workflows can be used to connect the CBSA transaction number to supplier lots and received material, depending on what is practical in the receiving area and what fits your existing workflow.
- How is scrap, flash, and waste handled?
- Process scrap, flash, shavings, and rejected parts can be captured at the point of production through operator entry, barcode scanning, machine data, or system-calculated values, and linked back to the originating CAD transaction through the consumed lot.
- Do we need a specific ERP for this to work?
- 10in6 integrates with the ERP, inventory, and shipping systems you already use. The traceability layer connects customs data to those records rather than replacing them.
- Can we trace finished goods back to the imported raw material they came from?
- Yes. Finished goods exported to a customer can be tied back through the production batch and consumed lot to the original CAD transaction and line.
- What if imported material exceeds the required DRP timeline?
- The inventory report includes aging data so material approaching the end of the required DRP timeline is visible before it becomes a duty exposure issue. Specific timeline rules should be confirmed with your customs broker or CBSA.
- Is this only a Digital Quality System feature?
- No. DRP traceability spans MES, DQS, lot traceability, ERP integration, scrap tracking, and export reporting. It uses production data, quality records, customs data, and shipping data together, so it is not a single-module feature.
- Which industries use DRP traceability most?
- DRP is most commonly used by Canadian manufacturers in automotive and automotive supply, metals processing and forging, fabricated metals, industrial components, and aerospace — anywhere imported raw material is processed and the resulting finished goods are exported. Any operation that imports under a DRP licence and exports finished goods can benefit from a connected traceability and reporting layer.
- How do I know if DRP is right for our operation?
- Generally, DRP applies when (1) you import raw material or components into Canada, (2) you export finished goods (or material in the same condition) outside Canada, (3) you can establish lot or batch traceability through your production process, and (4) the timing between import and export fits the required DRP timeline. Final eligibility is determined by CBSA; your customs broker can advise on the application.
Set up around how your plant runs
Standardized platforms expect the plant to change to fit the software. Do-it-yourself platforms leave your team to build and maintain everything. With 10in6, we configure the system around your equipment, codes and reports, and your team runs it day to day.
Your equipment, codes and reports
Records built around your part numbers, your process steps and whatever your customers, auditors or customs programs ask you to prove.
Your team runs it day to day
Operators, downtime and scrap codes, products and targets, shift schedules, checks, alerts, emailed reports and real-time boards are managed by your own people. Everyday changes need no support ticket and no invoice.
A project manager for the bigger things
New machines, new modules and custom reports go through a 10in6 project manager who already knows your deployment, so nothing starts from scratch. If you would rather we made everyday changes too, we can.
Still here years later
The system keeps being refined after go-live, and new capabilities are added without rebuilding it. Some of our customer relationships have run for 12 years, and 97% of customers say they would never go back.
“Our 10in6 Project Manager has been very responsive and the software is flexible enough to be configured to our specific needs.”
How the 10in6 delivery model works →
Need to connect DRP requirements to your manufacturing process?
If your team needs to track imported goods through receiving, production, scrap, inventory, and export, 10in6 can help design a practical traceability and reporting workflow around your existing systems.