Duties and GST on commercial import transactions can be paid by importers to the Canada Border Services Agency (CBSA) on a monthly basis through the GST Direct Payment option or the Importer Direct Security option.
With both options, the payment period will cover all transactions accounted for between the 25th of the previous month and the 24th of the current month, with payments due to CBSA by the last business day of the current month. The importer must pay any penalties or interest applied by the CBSA for late payment of duties and taxes.
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Under this option, the importer makes a monthly GST payment directly to the Canada Border Services Agency (CBSA). To participate in this payment option, importers must complete a GST Direct Letter of Undertaking on company letterhead, signed and returned to Universal Logistics. Non-resident importers (importers outside of Canada) must post security with the CBSA for release prior to payment privileges (see Requirements for Importer Direct Security option).
Under the Importer Direct Security option, the importer makes a monthly duty and GST payment directly to the Canada Border Services Agency (CBSA). To participate in this payment option, the importer must:
Most importers choose to post security by way of a D120 Customs Bond and will receive their own Account Security (ASEC) number. If you need help to place and secure the required bond and register your ASEC number with CBSA under the Importer Direct Security option, contact us today.
Paying Duty and/or GST directly to CBSA through E-payment options is recommended for importers with GST Direct Payment or Importer Direct Security privileges.
Tip #58 – Be prepared for customs penalties and fines under AMPS
Never assume that the absence of an audit means you will never be audited. Penalties under AMPS (Administrative Monetary Penalty System) can be applied at the border at time of import (or export) and also post audit.