Facilitating trade
Trade incentive programs

The trade incentive programs keep Canadian companies competitive by providing relief from duties under special circumstances. The Canada Border Services Agency (CBSA) 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.

• Commercial temporary importations
• ATA Carnets
• Canadian Goods Abroad Program
• Duty Deferral Program
• Government contract supplies - duty and tax refunds

Video: Trade incentive programs

Commercial temporary importations

Commercial goods entering Canada are normally subject to duties and/or taxes. However, legislative provisions, for goods classified under tariff item No. 9993.00.00, provide relief from the payment of applicable duties for commercial 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 commercial 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 BSF865, Temporary Admission Permit: Commercial Goods, and a refundable security deposit may be required.

ATA Carnets

Canada is a signatory to the international Customs Convention on the ATA (Admission Temporaire/Temporary Admission) Carnet for the temporary admission of goods. This convention provides an alternative to Canada’s Temporary Admission Permit: Commercial Goods (Form BSF865) and eliminates the need to post a security deposit at the time of importation. Goods intended for sale, lease, processing, or repair are not permitted for temporary importation on a carnet. Importers may obtain an ATA Carnet in the country of export. ATA Carnets are not issued by customs administrations. In those countries that participate in the Convention, ATA 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 ATA Carnets, please visit the Chamber of Commerce’s website.

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.

Duty Deferral Program

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

• The Customs Bonded Warehouse Program

  The Customs Bonded Warehouse Program enables you to defer paying all duties and taxes on commercial goods until they are released for Canadian consumption or exported. A customs bonded warehouse is a licensed and regulated facility used to store imported commercial goods before the CBSA releases them.

• The Duties Relief Program

  The Duties Relief Program relieves importers, owners, manufacturers and/or processors from having to pay duties on imported commercial goods if they will eventually re-export them either in the same condition or after using, consuming or expending them to process other goods.

• The Drawback Program

  The Drawback Program has the same advantages as the Duties Relief Program. The only difference is that the Drawback Program is for people and companies who have already paid the duties on their imported commercial goods and are requesting a drawback (refund) of those duties as authorized under the Customs Tariff.