Global

Details

  • Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 5/2/2014

Canada - Import / export permits 

May 2:  It can be challenging to keep track of the rules involved in the import and export of goods. One of the most easily overlooked procedures when dealing with the Canada Border Services Agency (CBSA) is meeting all of the requirements of the other government departments. Failing to comply with all requirements can result in penalties.

One of the most important considerations is to determine whether import / export permits are required from the Department of Foreign Affairs and International Trade (DFAIT).


Goods that require import and exports permit are listed in the Export and Imports Permit Act, which also identifies countries where exports are restricted or prohibited. In addition to the Import Control List and the Export Control List in the Act, the Area Control List indicates the countries that require permits to ship any goods, including aid.


Also, businesses need to keep up-to-date on international and domestic obligations in the United Nations Act and the Special Economic Measures Act, which establish a list of countries to which special sanctions apply, to avoid compliance issues and penalties.


Canadian businesses that are subsidiaries of U.S. companies have additional obligations—they are subject to any U.S. laws concerning import and export controls, as well as related sanctions. If a Canadian subsidiary contravenes U.S. law, the U.S. government can penalize the parent corporation.


Read a Spring 2014 report prepared by the KPMG member firm in Canada: Trade Matters Newsletter - Spring 2014


The KPMG report also discusses the following topics:


  • 2014 NAFTA certificates of origin
  • Changes to or signing of free trade agreements
  • Changes coming to wood packaging rules in 2015



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