Duty deferral and relief

Duty deferral

This program is the grouping of three options that can defer or relieve the payment of duties on imported goods. These programs are:

• the Duties Relief Program,
• the Drawback Program,
• and the Bonded Warehouse Program

Qualifying for duty deferral

Under the Duty Deferral Program you could qualify to import goods without paying any duties if you:

• are directly or indirectly involved in importing goods exported in the same condition as imported; or
• use imported goods in the production of other goods for export; or
• store goods before entering them into domestic consumption

Applying for duty deferral

If you are the importer, exporter, processor, owner, or producer of the goods, or a warehouse operator, you may apply for one or all of the elements of the duty deferral program.

To apply, you have to complete and send the proper application form to your local customs office. We will review your application and an officer may visit you. During this visit, the officer will confirm that you qualify for the program and that you are aware of your obligations. As soon as we approve your application, we will authorize you to use the duty deferral program.

Time limits

In most cases, goods you import under the duty deferral program have to be exported or removed from the warehouse no later than four years after you import them.

Compliance

From time to time, we will verify if the imported goods have been exported or properly documented and accounted for. However, it is your responsibility to properly account for all goods and immediately pay any duties owing on goods that are not exported.

Selling or transferring imported goods

You can sell or transfer the imported goods before they are exported without paying duties as long as the receiving company is also an authorized program participant. When you sell or transfer the goods to another participant, you also transfer the liability for paying duties.

More information

For more information on the Duty Deferral Program or for help preparing your application, contact your local customs office.