Refund Claims

Used to claim duties back that are paid in error due to: - Wrong Tariff Treatment - Clerical Error - Incorrect Exchange rate

- Incorrect H.S.#

Canada Customs Adjustment Request Form B2 used.

Amending Entries

Used to pay additional duties that are payable due to: - Wrong Tariff Treatment - Clerical Error - Incorrect Exchange rate - Incorrect H.S.#

Canada Customs Adjustment Request Form B2 used. B3 = Customs Entry B2 = Refund or Amendment

Drawbacks

If a good is imported into Canada, and duty is paid upon entry, then is subsequently exported, a drawback can be claimed.

Must use a Drawback claim form Proof of export must be given.

                           

Foil From Taiwan

Imported Into Canada

6% Duty

Used to Mfg. Potato Chips

Exported to U.K.

Eligible for 6% duty drawback

                           

                           

Drawbacks

Same Condition Drawbacks Import an item and re-export it unchanged

Consumption Drawbacks Import an item and consume it in producing another item.

                           

Duty Deferral Program

Designed to allow in certain circumstances, importers, producers & exporters to relieve or defer the payment of duties & taxes

2 Options: Duties Relief Program Bonded Warehouse Program

Duty Relief Program

Duties Relief – relieves the payment of duties & taxes on imported goods that will eventually be exported, in the same condition or after being used, consumed or expended in the processing of other goods

Allows “Mfg in Bond” for export

For companies that import, receive goods that were imported, or export goods from Canada

Duty Relief Program

No payment of Customs Duties, anti-dumping duties or countervailing duties, excise taxes (except for Goods & Services Tax) at time of importation as long as goods are intended for export.

If goods are not exported, then duties will apply.

Duty Relief Program

1. Company wishing to join program applies to C.B.S.A.2. C.B.S.A.. reviews the application and schedules a visit to review how records are to

be kept and what mechanisms will be in place to control the goods while they are in Canada.

3. If granted Company is given a Certificate number that is to be placed in field 26 “Special Authority” field of the Canada Customs Coding Form B3

Duty Relief Program

Company is responsible for monitoring and control of: Transfer of goods to another program participant Export of goods from Canada To pay appropriate amounts of duties and taxes is the goods are no longer for export.

Goods must be exported within 4 years of date of release.

Duty Relief Program

Records: Must be able to track all receipts activities, and movement of goods. C.B.S.A. will monitor via audit.Certificates & Waivers When goods that are imported through the program are transferred to another

company, the liability to pay the duties falls upon the participant who receives the goods.

If not a participant: Duties are owed.

Duty Relief Program

Deemed Exportation

Goods have not physically left Canada, but are intended for export

- In Bonded or Sufferance Warehouse

- Supplied to a Duty Free shop.

Duty Relief Program

Consumable & Expendable Goods Both goods that are consumed or expended in the direct manufacture of goods intended for export are

included.Consumable - Goods that virtually disappear in the manufacturing process, and do not form part of the

finished productExpendables - Goods that after use retain some physical characteristics, but have become useless or

devitalized and do not form part of the finished productScrap & Waste - Qualifies for program unless you can get $$ for it in Canada.

Duty Relief Program

Sanctions:Failure to maintain Program (& duties owing) a) $1000.00

b) $2500.00 c) $5000.00+ (1st offense): 5% of duties owing + 1% of duties owing for every month until paid.Or (2nd offense) 10% of duties owing + 2% of duties owing for every month until paid.

Exporter of Processing Services

“E.O.P.S.” Relieves GST at time of importation on goods to undergo a processing service, and then be re-exported.

Goods cannot be owned by the importer

Importer cannot be related to non- resident owner of the goods

Time limit is 4 years to export goods

Can be applied for as well as Duty Relief

Drawbacks

                           

Automobile Parts From Taiwan

Imported Into Canada

6% Duty

VFD $1000.00 CAD

Duty: $1000.00 x 5%

= $ 50.00 CAD

VFT: $1000.00 +$50.00

= $1050.00 CAD

GST: $1050.00 x 5%

= $ 52.50 CAD

Used to Mfg. an Automobile

Automobile is Exported to U.K.

Eligible for 5% duty drawback

Receive $50.00 duty back from CBSA by processing a drawback claim after exportation.

Paid $50.00 duty to CBSA at importation on Automobile parts, therefore………

Drawbacks – Duty Relief

                           

Automobile Parts From Taiwan

Imported Into Canada

VFD $1000.00 CAD

Duty: $1000.00 x 0%

= $ 0.00 CAD

VFT: $1000.00

= $1000.00 CAD

GST: $1000.00 x 5%

= $ 50.00 CAD

Used to Mfg. an Automobile

Automobile is Exported to U.K.

5% Duty is Relieved under Duty Relief Program as the finished good made from the materials will be exported