Facilitating trade

Trade incentives programs

The trade incentives programs keep Canadian companies competitive by providing relief from duties under special circumstances. The Canada Border Services Agency has a variety of programs that enable it to waive (relieve), postpone (defer) or refund (drawback) some or all of the duties and taxes that would otherwise be payable.

Memorandum D6-2-3, Refund of Duties, provides more details.

Temporary importations

Goods entering Canada are normally subject to duty and/or taxes. However, legislative provisions, such as tariff item No. 9993.00.00, provide relief from the payment of applicable duties for goods that enter Canada on a temporary basis, such as goods being repaired in Canada or goods imported temporarily for training or demonstration purposes. There are also several provisions that provide for the full or partial payment of excise taxes, including the goods and services tax/harmonized sales tax (GST/HST), for goods that are temporarily imported under certain circumstances. Although temporary importations may qualify for relief from duties and taxes, they may need to be documented on a Form E29B, Temporary Admission Permit, and a refundable security deposit may be required.

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A.T.A. Carnets

Canada is a signatory to the international Customs Convention on the A.T.A. Carnet for the Temporary Admission of Goods. This convention provides an alternative to Canada's Temporary Admission Permit (Form E29B) and eliminates the need to post a security deposit at the time of importation. Importers may obtain an A.T.A. Carnet in the country of export. A.T.A. Carnets are not issued by customs administrations. In those countries that participate in the Convention, A.T.A. Carnets are generally issued by the national chamber of commerce. Each country has only one guaranteeing association, but it may have more than one issuing association. Security is posted through the guaranteeing association in the issuing country. In Canada, the guaranteeing association is the Canadian Chamber of Commerce. For more information about A.T.A. Carnets, please visit the Chamber of Commerce's web site.

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The Canadian Goods Abroad program

When Canadian goods are exported for repair, alteration, additions or further processing, the Customs Act generally requires that they be subject to duties and taxes on the full value of the goods at the time of their return to Canada. However, the Canadian Goods Abroad program allows for the relief of duties on the "Canadian" portion of the value of the goods. Under this program, the duty is payable only on the value added to the Canadian goods in the form of labour or additional material. Similarly, under the Value of Imported Goods (GST/HST) Regulations, the GST/HST is payable only on the value of the processing performed outside of Canada.

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The Duty Deferral Program

The Duty Deferral Program comprises three options, each with particular advantages:

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