Canadian Duty Deferral consists of three programs: Duty Drawback, Public Bonded Warehouse and Duties Relief.
GST relief consists of two programs: Exporter of Processing Services (EOPS) and Export Distribution Centre (EDC) programs, both of which have unique conditions and requirements.
Duty Deferral can reduce costs and improve cash flow, and Duties Relief or Bonded Warehouse is required in order to preserve the first cost when re-exporting goods to the United States.
The Duty Deferral programs allow for the full or partial relief of duty on imported goods that are subsequently exported. They also provide deferral of duty payment on domestic goods for up to 90 days after sale.
Duty relief may be granted on imported goods that are:
- exported in the same condition as imported,
- exported after being further processed in Canada,
- used or consumed in the production of goods for export.
The following conditions apply in order to be eligible for the Duties Relief Program:
- Application form K-90 must be completed and accepted by Customs
- Tracking of import, inventory, and export records must be in an accessible format for auditing purposes
- Accurate reporting and payment of duty within 90 days of goods sold/diverted to the Canadian market
- Re-payment of duty within 60 days on exported goods processed in Canada
Additional information and assistance can be obtained from our technical consulting group.