Policy Respecting the Importation and Transportation of Goods Memorandum D3-1-1. U.S. Customs and Border Protection (CBP) has basic information on importing and exporting. You do not have to self-assess the provincial part of the HST if you are a registrant and the service or IPP is consumed, used, or supplied at least 90% in your commercial activities. If you are not registered for GST/HST and have to self-assess the provincial part of the HST, use Form GST489, Return for Self-assessment of the Provincial Part of Harmonized Sales Tax (HST). Most questions revolve around the difference between commercial and personal shipments. Official websites use .gov To qualify for the GST/HST rebate, the non-resident purchaser has to export the goods from Canada within 60 days of delivery, as well as meet other conditions. A locked padlock The tax is calculated on the amount you were charged for the service or IPP in Canadian dollars, and the tax is payable in the reporting period in which the amount for the service or the IPP was paid or became payable. In this situation, the second registrant must issue a drop-shipment certificate to the first registrant and will only be required to self-assess tax if the second registrant is acquiring the goods for use in non-commercial activities. Find out about the process of importing goods for personal useFind out about the process of importing or exporting for businessesFind out how the GST/HST applies to imports and exportsDetermine which export programs provide GST/HST relief But, for certain goods being imported, some agencies may require a license, permit, or other certification. A complete list of countries eligible for the above tariff treatments can be found at the beginning of the Customs Tariff. Elections, Presidents, Vice Presidents, and First Ladies, Download a Copy of the Consumer Action Handbook, Financial Assistance and Support Services, Disaster Financial Assistance for Workers and Small Business Owners, Disaster Financial Assistance with Food, Housing, and Bills, Financial Assistance Within Designated Natural Disaster Areas, Government Response to Coronavirus, COVID-19, Field Trip to the Money Factory Lesson Plan, How to Become President of the U.S. Poster Lesson Plan, Public Service and Volunteer Opportunities, How to Become a Federal Government Contractor, The Contract Opportunities Search Tool on beta.SAM.gov, Federal Personnel Records and Employment Verification, Locate Military Members, Units, and Facilities. Depending on the good or service, you may need a license or permit to export it from the U.S. as a part of your business. If you are not registered for the GST/HST, you still have to pay tax on imported services or IPP. These rules also apply if the unregistered non-resident is purchasing the goods for the purpose of leasing them to another registrant in Canada. An exception to this is where the importer transfers possession of the imported goods or the processed products for the purpose of their storage, their transportation to or from a place of storage, or their transportation in the course of being exported. The U.S. Department of Homeland Security is committed to upholding the law and preventing illicit activity from harming American interests. The goods are stored until a third party purchaser is found, and the registrant is not required to charge tax on the sale of the goods to you. The special measures available under the SIMA include anti-dumping duties, countervailing duties and undertakings. A review of your operations will be conducted and the CRA tax services will be consulted to determine whether an import certificate for the GST/HST would be allowable. Ottawa, November 18, 2019 ISSN 2369-2391. Some types of goods and services require a license or permit to import into the U.S. as a part of your business. If you are registered, the provincial part of the HST is payable when the goods are brought into a participating province. These representatives are known as customs brokers or entry filers. All products offered for entry into the United States, including items for personal use, must be declared to U.S. Customs and Border Protection (CBP). Refused products must be destroyed or exported from the United States within 90 days. transfers possession of the goods to a common carrier or consignee that: is retained to ship the property to a destination outside Canada, is retained either by the supplier on the recipient’s behalf or by the recipient’s employer, sends the goods by mail or courier to an address outside Canada. Preparing to import Obtain a Business Number. Failure to make a payment or provide legal justification of non-payment may result in suspension of immediate release privileges in accordance with 19 CFR 142.26. A purchaser who is registered for GST/HST purposes can apply for authorization to issue an export certificate, which, when provided to the supplier, will cause the goods to be zero-rated. The warehouse operator has to pay GST/HST to us if and when physical possession of the goods is transferred to another person on your behalf, unless the warehouse operator obtains a drop-shipment certificate from the person to whom he or she transfers physical possession of the goods. Lock You must possess proof of origin for the specific trade agreement at the time of importation. They can be shipped, sent by email, or even hand-carried in personal luggage on a plane. For more details on how to determine the value for duty of your shipments, refer to the Memoranda Series D13, Valuation. You will need to determine whether or not the goods you want to import are subject to regulations, restrictions, permits or other requirements. By issuing the certificate, the consignees acknowledge that they are responsible for the GST/HST payable if they do not acquire the goods for consumption, use, or supply exclusively in the course of commercial activities, or if an unregistered person ultimately uses the goods in Canada. Before importing commercial goods into Canada, as a business or an individual, you will need to obtain a Business Number (BN) issued by the Canada Revenue Agency (CRA) for an import/export account. See GI-034, Exports of Intangible Personal Property, for further information. You buy radios from a registered supplier. Share sensitive information only on official, secure websites. a supply made to an individual unless the individual is outside Canada when the supply is made; a supply of IPP that relates to a supply of a service that is made in Canada and is not zero-rated as an export, a transportation service or a financial service; a supply of IPP that may only be used in Canada; or. During a business trip, a Prince Edward Island resident purchases a watch in Ontario for $10,000 plus $1,300 HST (5% is the federal part of the HST ($500) and 8% is the provincial part of the HST ($800)). Official website of the Department of Homeland Security, Performance, Accountability and Financial Reports, Both CBP and the importing/exporting community have a shared responsibility to maximize compliance with laws and regulations. GST/HST is as follows: These rules also apply if a registered consignee does not issue a drop-shipment certificate to the GST/HST registrant. The authorizations for relief from the payment of the GST/HST under the EOPS program are valid for three years. CBP's regulations and requirements are at its website. It can reasonably be expected that during the fiscal year in which the authorization will be in effect, all of the following criteria are met: Your export revenue percentage will be 90% or more, You will not engage in substantial alteration of property. It can only be avoided by not taking physical possession of the goods. The GST (5%) is payable on most goods at the time of importation under Part IX, Division III of the Excise Tax Act. A drop-shipment generally happens when a non-resident who is not registered for GST/HST acquires goods from a registrant in Canada and tells the registrant to deliver the goods to another person in Canada. The information on this page promotes the understanding of this responsibility, as there may be specific requirements related to a particular commodity, such as those set by Partner Government Agencies (PGA). The FDA determines whether products are admissible into U.S. commerce and may refuse entry to any that violate or appear to violate any provisions of the Federal Food, Drug, and Cosmetic Act (FD&C Act). Form K90 would be sent to your local CBSA office. Importing and exporting can help your business expand at home or abroad, but it’s important to follow all laws and regulations. Convert the value into Canadian dollars using the exchange rate from the date of direct shipment (the date the goods began their direct and continuous journey to a specific destination in Canada). Importing and exporting can help your business expand at home or abroad, but it’s important to follow all laws and regulations. For more information, see Exported Call Centre Services in the 2016 Federal Budget - Tax Measures: Supplementary Information. Import Program – Food and Drug Administration (FDA), Recalls, Market Withdrawals and Safety Alerts, Import Program – Food and Drug Administration (FDA), Federal Food, Drug, and Cosmetic Act (FD&C Act). When both offices are in agreement, you will be given a duties relief certificate allowing the GST/HST relief.