Transmanna International Inc. can also assist you in taking advantage of Customs Bonded Warehouse Program. This Program enables you to defer paying all duties and taxes on goods until the goods are released for Canadian consumption or exported. A customs bonded warehouse is a licensed and regulated facility used to store imported goods before the Canada Border Services Agency releases them, and imported and domestic goods destined for export. A customs bonded warehouse is a facility operated by the private sector but regulated by the Canada Border Services Agency (CBSA).
Companies participating in the Customs Bonded Warehouse Program may qualify for a complete deferral of duty and taxes. If your company qualifies, you pay only the duty and taxes on the portion of goods entering the Canadian market. If you export those goods, you will not pay any duty.
You may find this program useful if:
- You import goods into Canada for storage or minor manipulation;
- You consolidate imported and domestic goods for export or Canadian consumption;
- You import goods for display at conventions, exhibitions or trade shows and you export the goods after the event; and
- You are involved in facilitating the movement of goods into and out of the North American marketplace.
You may either choose to operate your own warehouse, or use a facility already participating in this program. While the goods are in the warehouse, they may undergo certain minor manipulations such as marking, labeling and repackaging
Time Limit for Storage
In most cases, you must remove imported goods within four years of the date they entered Canada. There are provisions for extending this time limit if the CBSA agrees that it is necessary.
All permits, certificates, authorizations, or waivers must be presented when entering the goods into the CBW. It is the responsibility of the warehouse operator to inform the CBSA immediately of the revocation of such authorizations.
The CBSA will periodically check that the warehouse is complying with requirements. However, it is the responsibility of the operator to ensure that proper controls are in place for all goods and to report any non-compliance to the CBSA immediately. Restricted and controlled goods without permits and/or authorizations may not be entered into a CBW unless the responsible authority has issued a waiver.
Goods unlawfully removed from a CBW may be seized.
Duties Relief and Drawback
Imported goods that have been duty paid, goods imported under the Duties Relief Program, and domestic goods (produced from imported materials) are considered to be exported when they enter a CBW. Upon entry into the CBW, these goods are eligible for a drawback of duties. For goods delivered to a CBW or duty-free shop for exportation, documentation must include a copy of Form B3-3, Canada Customs Coding Form or Form B116, Canada Customs Duty Free Shop Accounting Document.
Goods leaving the CBW for export or duty paid goods entered into a CBW as “deemed export” and seeking a drawback may be affected by article 303 of the NAFTA. If an affected end product is placed in a CBW and exported to a NAFTA country, relief of duties must be paid within 60 days of export
NAFTA does not affect relief or deferral of customs duties on products exported to non-NAFTA countries. The lesser of formula does not apply to products exported to non-NAFTA countries
A transfer means the change of ownership or the movement of goods between CBWs, or between a CBW and a duty-free shop, or both. The importer or owner of the goods shall submit a transfer document in the prescribed form to the nearest CBSA office where the goods were reported.
Shortages in Shipments
Where shipments involving shortages are accounted for and delivered to the CBW, a “Nil” Form B3-3, Canada Customs Coding Form ex-warehouse accounting entry must be presented for the quantity short-shipped, provided that evidence has been produced to verify the shortage. Where evidence of a short-shipment is not presented within 60 days of the date of warehousing, a Form B3-3, Canada Customs Coding Form ex-warehouse accounting entry must be presented to the CBSA to account for duties on the quantity of goods that were short-shipped. Where any quantity of warehoused goods will be ex-warehoused prior to the end of the 60 days, the Form B3-3 ex-warehouse must also account for any shortage that has not been properly verified.
The importer is entitled to a reduction of the duty and tax payable when goods suffer damage, deterioration, or destruction in a CBW.
Disposal of Goods
If goods remain in the CBW at the end of the specified time limit, without authorization for an extension of the allowable time limits, the CBSA will remove the goods and arrange for disposal. Goods may be either transferred to the local Queen’s warehouse or sent to a Queen’s warehouse at a central point.
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.
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 website