Trade shows are a great avenue for many companies and importers to showcase and demonstrate their products to a wider audience of potential customers. Navigating international trade barriers can prove to be difficult, with numerous barriers along the way, and Temporary Imports are a valuable tool to utilize.
When exhibiting internationally at trade shows, there are specific customs documents/requirements to enter your goods without payment of duty/tax.
In order to help ensure a smooth import process and avoid delays or issues with Customs, the following are some tips to keep in mind.
Key documents:
- Commercial Invoice,
- Itinerary and list of employees attending the show
- Bill of Lading or Air Waybill
Depending on the country of import, a Temporary Import Document or ATA Carnet will be required in most cases.
- Temporary Import Document – customs clearance under bond
- Customs will release goods for delivery upon presentation of required import documents and associated bond as guarantee of payment.
- ATA Carnet – issued by local Chamber of Commerce
- Similar to how a passport works for individuals, an ATA Carnet tracks the movement of goods in/out of each country. To obtain a Carnet, a bond is posted with the Chamber of Commerce for 40% of the shipment value, guaranteeing the return of the goods.
For shipments within North America, a Temporary Import Document is generally acceptable, as Canada, the USA, and Mexico have similar regulations. For shipments to other countries, an ATA Carnet is preferred to avoid delays due to country-specific requirements.
Prior to shipping any goods temporarily, review all required additional steps and import requirements with your customs broker, including import/export documentation and exportation processes.
- Commercial documents should clearly indicate that goods are for trade show purposes and will be exported under Customs supervision.
Temporarily importing Goods into the United States for a Trade Show
A Temporary Import Bond (TIB) is a special entry type used for the temporary import of products into the United States, typically for a period of up to one year with provisions for extension allowed in certain cases. All goods entered on a TIB are subject to their standard requirements and Participating Government Agency (PGA) regulations, as applicable. For example, medical device products entered under TIB for demonstration are still required to be listed and registered with FDA and this information must be reported to Customs just like a regular import.
It is recommended to purchase single use/disposable items such as wipes and cases of drinking water in the United States to avoid needing to submit the applicable regulations for these goods.
An important detail which is often missed, is that all goods entered under a TIB must be exported from the United States. Any goods that are intended to be sold or distributed at the trade show must enter separately on a consumption entry. This would include goods such as pens, swag (shirts/hats/etc.), flyers and anything else that may be handed out at the trade show.
Temporarily importing Goods into Canada for a Trade Show
Canada has a variety of temporary import provisions based on whether or not the imported goods are subject to duty and/or tax.
The most common (for dutiable goods) is the BSF865 Temporary Admission Permit which allows for goods, under certain conditions, to be temporarily imported for a period not to exceed 1-year, without payment of duty.
The Temporary Admission Permit must be obtained prior to the goods being imported to Canada to potentially relieve duties and taxes. It is also important to ensure that any permits or certificates required are properly applied.
The Canada Border Services Agency (CBSA) will determine whether a security deposit is required to ensure that the goods are exported. Where the goods are eligible for full relief of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) and the officer determines that the importer is low risk for non-compliance with the terms of the temporary importation, the goods may be released without a security deposit and documentation on a Form BSF865 (formerly E29B) or a Commercial Accounting Declaration (CAD, formerly B3-3), subject to any requirements in the applicable memoranda.
The maximum amount of a security deposit is the total customs duties and taxes, including GST/HST, which would be owed, if the goods were imported permanently.
A security deposit is not required on commercial goods that meet the conditions of Tariff Item No. 9993.00.00 and one of the following conditions:
(a) “originating” under the terms of the Canada-United States-Mexico Agreement (CUSMA), the Canada-Chile Free Trade Agreement (CCFTA), the Canada–Costa Rica Free Trade Agreement (CCRFTA) or such other Agreements as may be indicated in the Temporary Importation (Tariff Item No.. 9993.00.00) Regulations, where the importer presents a certificate of origin or other acceptable documentation requirements (see Memoranda D11-4-2, Proof of Origin of Imported Goods and D11-4-13, Rules of Origin for Casual Goods Under Free Trade Agreements);
(b) intended for display or demonstration at a convention or exhibition held in Canada by any level of government, in Canada or a foreign state; or
(c) commercial samples and advertising films, regardless of origin, imported from the United States, Mexico, Chile or Costa Rica. (Additional information on Tariff Item No. 9993.00.00 is contained in Memorandum D8-1-1)
For more information, contact Ivy Woo, Manager – Customs Consulting Services (Canada) or Cody Keser, Team Leader – Customs Consulting Services (USA).
