Customs Consultants in Canada Explain the Duty Deferral Program

The Duty Deferral Program is a relief program for the import of certain goods for certain vendors into Canada. ARGO Customs’ consultants are stationed at most major points of entry into Canada to provide assistance to you in relation to the Duty Deferral Program. Depending on your company’s needs, we can provide assistance and guidance to help you select the best option for your particular situation.

The Duty Deferral Program

The Duty Deferral Program (DDP) is implemented by the Canada Border Services Agency (CBSA) and is composed of three programs:

Duty Relief Program (or “DRP”) suspends the payment of duties at the time goods are imported if the goods are going to be exported in similar condition or are going to be expended/consumed in order to process/manufacture another good (think raw materials that are processed into a manufactured good).

The DRP is for importers who either (1) accept merchandise that was imported into Canada (2) import merchandise into Canada or (3) export those same goods from Canada and who need to suspend payment of duties at the time of importation. The DRP is also limited to the following goods (1) those for processing (2) those that are for display or demonstration in Canada (3) those for export without having any use in Canada or (4) the development or production of goods in Canada for eventual export.

Drawback Program is similar to the Duty Relief Program. The primary difference is that the Drawback Program is for the benefit of importers who have already paid the import duty or tariff and are requesting a refund (or “drawback”). The refund is calculated based on the Customs Tariff and must be authorized by the CBSA.

Customs Bonded Warehouse Program allows importers to defer the payment of all duties and taxes on goods that are imported for export or Canadian consumption. These goods must pass through a customs bonded warehouse. The customs bonded warehouse is a regulated and licensed facility that stores and holds goods imported into Canada. These warehouses are secured buildings or areas. The warehouse holds the goods until the CBSA releases the goods for eventual consumption or export.

There are eleven “classifications” of warehouses including those run by the government, private warehouses that hold the goods of the owner, yards for heavy and bulky merchandise, feeding pens or corrals, storage of grain, those for smelting goods, duty-free stores, manufacturing warehouses, international travel merchandise, and those established to hold General

Order goods.

Contact Our Canadian Customs Consultants

If you need assistance availing yourself of any of these programs, contact an ARGO Customs consultant in Canada for assistance.