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Importing without paying the Goods and Services Tax/Harmonized Sales Tax (GST/HST) - The Exporters of Processing Services (EOPS) program

The Exporters of Processing Services (EOPS) Program

This program allows manufacturing service companies to import certain goods that will eventually be re-exported, without paying the GST/HST. Manufacturing service companies can be described as businesses that perform manufacturing services, such as assembly, manufacture, alteration, etc., on goods or materials that they do not own for which they charge a fee.

Qualifying for EOPS

To participate in this program, you have to:

  • be a GST/HST-registered company;
  • have no ownership interest in the imported goods or the processed products; and
  • not be closely related to the non-resident person on whose behalf you are doing the processing.

Applying for relief from payment of GST/HST

GST/HST relief only

For non-dutiable goods, apply in writing to your local Canada Revenue Agency (CRA) tax services office. This office will process the application and conduct a field verification if necessary. Following this, you will be given written confirmation. Bring the letter of authorization to your local customs office so they can issue you a certificate number. You need this certificate number to account for the goods when you import them.

GST/HST and customs duties relief

To apply for relief from payment of duties and relief from GST/HST, you have to file Form K90, Duties Relief Application at your local customs office. If you hold a customs duties relief certificate and wish to apply for GST/HST relief, you still apply at the customs office. We will conduct a pre-verification of your operations and consult with our CRA tax services office to determine whether an import certificate for GST/HST would be allowable. Where both offices are in agreement, you will be given a duties relief certificate allowing GST/HST relief.

Time limits

All authorizations for relief from GST/HST under this program will be valid for three years. Please note that the export of the imported goods or materials being processed in Canada has to occur within four years from the day on which you accounted for the goods.

Compliance

From time to time we will verify the compliance with the terms of this program. If we discover that you have misused your import certificate, the customs office will assess the full amount of GST/HST on the goods incorrectly accounted for, and you may be removed from the program by cancellation of your import certificate number.

More information

For more information on the Exporters of Processing Services program or for help preparing your claim, contact your local customs office.