Duty relief: Don’t miss a chance to save

 

 

Duty is a tax paid to the customs authority of the country into which goods are being imported. The amount of duty is usually calculated based on the value of the goods – but can also vary depending on other factors such as quotas, timing, quantity and country of origin.

 

All goods are classified into different categories which determine the tariff rate or duty amount that is owed upon import. If you haven’t seen it yet, check out our short video on “Paying Duty and GST on Imports” on our website (you’ll find lots of other informative videos there, too).

 

If you want to delve a little deeper, the CBSA has a wealth of resources on their website to help understand how duty is calculated, including a video on classifying imports and their main Import page that has plenty of information on importing goods and programs available to help you save duty.

 

 

Here are some potential duty-savings opportunities that all importers should know about.

Free Trade Agreements 

In addition to the well-known NAFTA which gives us free trade with the U.S. and Mexico, Canada enjoys duty-free trade with dozens of other countries – The European Union, Ukraine, Chile, Korea… to name a few.

Free-trade agreements vary in their conditions, though, so in addition to knowing which countries we have agreements with, importers should also understand which goods qualify, and the requirements that must be met to reap their benefits.

For more information on free trade agreements, check out our blog and video on FTAs and contact our Free Trade Department.

 

 

Certain otherwise dutiable goods, when destined for specific end-uses, can be brought into the country duty-free. An importer can either state the end-use at the time of importation, or can submit a claim later, once the good has been put to use at its final destination. Importers must accurately attest that the end-use of the good is one that renders it duty-free.

 

Refer to CBSA’s memorandum on Conditional Relief Tariff Items to see if your goods qualify. And, be sure to properly document the product’s importation and end-use by referring to the CBSA’s guidelines for record-keeping regarding conditional relief tariff items.

 

Claims must be accurate and CBSA must be informed if end-uses change from what was claimed. Once approved, conditional relief exemptions can be applied to future shipments of those same goods, providing ongoing savings.

 

This is just a sampling of the programs available to help save you money when trading goods across the border. Visit the CBSA’s Trade incentive programs website for more.

 

 

Save yourself valuable time and effort by enlisting the help of a professional. We have professionals in Trade Compliance, Free Trade and Customs Consulting who are available to answer your questions and help you save duty.