2018-05-11 15:12:41 Taxes English Lower your tax burden if you import goods into Canada and meet a few conditions with the Duty Deferral Program. Learn about the three ways... https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2018/04/12131609/Accountant-Explaining-Duty-Deferral-Program.jpg Importers: Use the Duty Deferral Program to Lower Your Tax Burden

Importers: Use the Duty Deferral Program to Lower Your Tax Burden

1 min read

You could save money owed to the Canadian government for duties and taxes on imported goods through the Duty Deferral Program’s three subprograms. And, if you’ve already paid the duty on the goods, you might be qualified to receive a full reimbursement.

Sometimes, no matter what you are importing, duties and taxes must be paid. The Customs Bonded Warehouse Program lets you delay the payment of duties for up to four years. By storing the goods in a bonded warehouse, which is a warehouse controlled by customs, until you introduce the goods to the Canadian market, you don’t have to pay any duties or taxes right now.

The Duties Relief Program allows you to import goods without paying any duties if the goods are exported at a later date in the same condition as when they were imported. Through this option of the program, you can also potentially avoid paying duties if the goods are used to produce other products that are to be exported in the future.

Lastly, the Drawback Program allows you to apply for a refund of duties you’ve already paid. Though it’s not guaranteed you can get a reimbursement, if the goods meet the conditions from the Duties Relief Program, it’s worth a try.

The Duty Deferral Program offers you three ways that you can potentially lower your tax burden on imported goods. As for the particular goods that qualify for the program and the exact dollar amounts you could save, you should consult with a qualified professional that focuses on import duties and taxes.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

What Is Duty of Good Faith?

If you own a small business that enters into lots of contracts,…

Read more

How to Use Trade Incentive Programs to Stay Ahead of the Competition

Importers and exporters pay a lot of duties and taxes. The extra…

Read more

How Does NAFTA Impact Your Small Business?

North American Free Trade Agreement, or NAFTA, removes trade barriers between the…

Read more