Importing in a bonded warehouse

Bonded warehouses

A customs bonded warehouse is a facility operated by the private sector but regulated by the Canada Border Services Agency. Through the Bonded Warehouse Program you qualify for the complete deferral of customs duties, anti-dumping and countervailing duties and excise duties and taxes including the GST/HST. You only pay on the portion of goods entering the Canadian market. If you export the goods, you don't have to pay any duties. While the goods are in the warehouse, they may undergo certain minor manipulations, like marking, labeling, testing, inspecting, packaging, displaying, diluting, normal servicing and maintenance, grading, shorting, trimming, slitting or cutting, and repackaging. You may contact your local customs office for more details.

This can help your business if you:

• import goods into Canada for storage or minor manipulation;
• consolidate imported and domestic goods for export or Canadian consumption;
• import goods for display at conventions, exhibitions, or trade shows and export the goods after the event; and
• are involved in facilitating the movement of goods into and out of the North American marketplace.

Applying to operate a bonded warehouse

To apply as a bonded warehouse operator, complete Form E401, Application for Licence to Operate a Customs Bonded Warehouse. You can get a copy of the form from your local customs office. We will review your application and schedule a visit to review the proposed site and your record keeping system. As soon as we approve your application, we will issue a unique customs bonded warehouse licence number.

Both residents and non-residents can apply to operate a bonded warehouse. You also have the option of contacting an existing warehouse operator to take advantage of this program.

Costs

You have to pay an annual licensing fee. If we identify a need for security during your application process, you may also have to post security based on the type of goods imported and your financial compliance profile.

Time limits

In most cases you have to remove goods you import under the bonded warehouse program within four years of the date they entered it. There are provisions for extending this time limit if we agree that it is necessary.

Compliance

From time to time, we will verify if the imported goods have been removed from the warehouse and have been properly documented and accounted for. However, it is your responsibility to properly control all goods and immediately report any non-compliance.

More information

For more information on the bonded warehouse program or to get an application form, contact your local customs office.