• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/15/2013

Canada - Tax exemption for imports of electronic goods 

July 15: Importers of certain electronic goods (such as MP3 players) may be able to import these goods duty-free into Canada without the need for retailers to have their individual customers sign certificates about the end-use of these products.

The Canada Border Services Agency (CBSA) recently clarified its policy on this matter, but some uncertainty still remains.

Although the CBSA's practice has been to allow duty-free status without having to provide these certificates, the CBSA recently decided it did want the certificates and asked some importers to provide them retroactively for goods previously imported. When importers could not provide the certificates, the duty-free status was denied and duty was collected.

The CBSA clarified in a new notice that it will no longer require importers to obtain and keep on file end-use certificates signed by individual consumers. Importers are still required to keep written records about the intended use of the goods; however, it is unclear exactly what these records must include.

The status of the duty collected for not having the certificates is also unclear.

Read a July 2013 report prepared by the KPMG member firm in Canada: Importers of Electronic Goods Seek Clarity on Tax Exemption

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