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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 Used to Mfg. Potato
Taiwan Chips
Imported
Into Exported to
Canada U.K.

6% Duty 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 product
Expendables - Goods that after use retain some
physical characteristics, but have become useless
or devitalized and do not form part of the finished
product
Scrap & 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


Drawbacks
Used to Mfg. an Automobile
Automobile Parts
From Taiwan
Imported Into Canada
6% Duty
VFD $1000.00 CAD
Duty: $1000.00 x 5%
=$ 50.00 CAD
VFT: $1000.00 Automobile is
+$50.00 Exported to
= $1050.00 CAD U.K.
GST: $1050.00 x 5%
=$ 52.50 CAD
Eligible for 5% duty drawback

Paid $50.00 duty to CBSA at Receive $50.00 duty back from CBSA by
importation on Automobile parts, processing a drawback claim after exportation.
therefore………
Drawbacks – Duty
Relief
Automobile Parts Used to Mfg. an Automobile
From Taiwan
Imported Into Canada
VFD $1000.00 CAD
Duty: $1000.00 x 0%
=$ 0.00 CAD
VFT: $1000.00
= $1000.00 CAD
GST: $1000.00 x 5% Automobile is
=$ 50.00 CAD Exported to
U.K.

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