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Relieving excise tax on supplies for government contracts
You may be entitled to use tariff code 9982 in the following cases:
- you are a company that imports defence supplies as defined in the Defence Production Act that are covered by a contract, the total value of which is $250,000 or more, certified by the Minister of Public Works and Government Services that the goods supplied under the contract are defence supplies; or
- you import articles and materials for use in the development or production of goods, or for incorporation into goods, you carry out business in Canada and the Canadian Commercial Corporation (CCC) verifies that you have been awarded a contract or subcontract for an agency of the Government of the United States under defence production and development sharing arrangements between the governments of Canada and the United States.
If you have already paid duties on the goods, you could qualify for a refund by submitting a Form B2, Canada Customs Adjustment Request. If any of the goods are subject to excise tax that was paid at the time of import, you could also qualify for a drawback of this tax.
Goods deemed exported
Goods that you deliver to satisfy a contractual agreement under the CCC or under joint Canada–North American Free Trade Agreement government projects are deemed exported. If you have any questions, contact your local Canada Border Services Agency (CBSA) office.
Drawbacks
In the context of goods qualifying for the use of tariff code 9982, a drawback is a refund of the excise tax paid on imported goods that are eventually supplied under one of the above-mentioned contracts. You can supply goods as they are or, before they are supplied, you can further manufacture or use them in a limited manner without affecting the drawback amount.
Claiming a drawback
You can claim a drawback under the Drawback Program if you are the importer, exporter, owner or producer of the goods. If more than one person is eligible to file a drawback claim, waivers must be submitted by the other eligible claimants before the CBSA can process your claim.
To claim a drawback, complete Form K32, Drawback Claim. Attach documents establishing that the goods qualify and send the package to your local CBSA office.
Duties Relief Program
The Duties Relief Program enables qualified companies to import goods without paying the excise tax, as long as they eventually supply the goods under a contract. Before the goods are delivered, they can be further manufactured or used in a limited manner without having to pay the excise tax.
Applying for duties relief
To apply, complete Form K90, Duties Relief Application (PDF, 15 KB), and send it to your local CBSA office.
Your application will be reviewed and an officer will arrange to visit your premises. During this visit, the officer will confirm that you qualify for the Duties Relief Program and that you are aware of your obligations. When your application is approved, you will be issued a unique licence number that identifies you as a Program participant. For more information on the Duties Relief Program, see the information sheet called Importing Without Paying the Duties or contact your local CBSA office.
Time limits
In most cases, you have to present your claim no later than four years from the date the goods were released by the CBSA. You cannot file a claim until the imported goods have been supplied. If you have qualified to participate in the Duties Relief Program, your goods have to be exported within four years of importing them.
More information
For more information or for help preparing your claim, contact your local CBSA office.
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