On May 7, 2020 we advised that the Government of Canada waived tariffs on a vast array of Personal Protective Equipment (PPE) and medical goods to provide relief during the COVID-19 crisis. Both the Canada Border Services Agency (CBSA) and the Department of Finance have now confirmed this relief goes well beyond the intended PPE and, in fact, includes all imported goods falling within the stated HS tariff classifications.
Remission of duty is temporarily granted for classifications listed in the Certain Goods Remission Order (COVID-19) SOR-2020-101, under the following conditions:
| a) | the good was imported into Canada on or after May 5, 2020 and subject to customs duties; | |
| b) | no other claim for relief of the customs duties has been granted under the Customs Tariff in respect of the good; | |
| c) | the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission; | |
| d) | the importer agrees that it is subject, at any time, including after remission relief is provided, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and | |
| e) | at the time when the Canada Border Services Agency conducts the review referred to in paragraph (d), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects. |
As the validity of the remission relies on the importer to prove the declared classification is correct upon request by CBSA, we would recommend obtaining Binding Rulings, where applicable, in order to avoid potential re-assessment of duty and associated penalties.
Contact us if you would like to ensure the benefits of this duty-free Remission Order are applied to your qualifying imports, and Universal Logistics will request Binding Rulings from the CBSA on your behalf (Consulting fees will apply).
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
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