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Canada Tax Relief: Exports of Processing Services Program

Information on temporary entry and travel to Canada. Also includes taxes and standards guides.

Canada Tax Relief: Exports of Processing Services Program

Postby bridgat » Mon Nov 17, 2008 12:19 pm

Under Revenue Canada's Exporters of Processing Services Program,
U.S. companies through their Canadian Manufacturing Service Companies, may obtain relief from the payment of the goods and services tax (GST) for goods and materials exported to Canada for processing and subsequent re-export.

What is the Exporters of Processing Services Program?

This Exporters of Processing Service program allows Canadian manufacturing service companies to import certain goods that will eventually be re-exported, without paying the Goods and Services tax (GST). Manufacturing service companies can be described as businesses that perform manufacturing services, such as assembly, manufacture, alteration, etc., on goods or materials that they do
not own.

Who can participate?

To participate in this program Canadian manufacturing
service companies must meet the following conditions:

1) Be a GST-registered company.
2) Have no ownership interest in the imported goods or the processed
products.
3) Must not be closely related to the nonresident person on whose behalf the processing is being done.

Application for relief from the payment of GST.

The Canadian manufacturing services company that you have contracted to perform services on your product must apply in writing for non-dutiable goods exemption or relief to the local Revenue Canada excise/GST office. The excise/GST office will process the application and conduct a field verification if necessary, following which the company will be given written authorization. This written notification must be presented to Revenue Canada's Trade Administration Services (TAS) office prior to the first importation of eligible goods or materials to obtain a certificate number that will be used to account for the goods upon entering Canada.

Applications for both GST and Customs duties relief.

To apply for both relief from payment of duties and relief from GST, the Canadian company must file the Duties Relief Application, Form K 90, at the TAS office. If the company already holds a Customs Duties Relief certificate and wishes to apply for GST relief, the application is also to be made at the TAS office. The TAS office will conduct a pre-verification search on the company's operations and will consult with Revenue Canada excise/GST office to determine whether an import certificate for GST has been authorized. When both offices are in agreement, a duties relief certificate is granted.

Are there time limits?

All authorizations for relief from GST under this program will be valid for three years and exportation of the imported goods or materials being processed in Canada must occur within four years from the day the goods entered Canada.

Compliance.

Any Canadian company that fails to comply with the terms of
Revenue Canada's Trade Administrative Services (TAS), or misuse the import certificate will be liable for full payment of GST and will be removed from the program through the cancellation of their import certificate number.

For further information on the Exporters of Processing Services Program
please contact the following Revenue Canada's Regional Trade Administration Services (TAS) offices as follows or go on the internet
at : http://www.revcan.ca/


Revenue Canada's Trade Administration Services Officer

Atlantic Canada
P.O. Box 3080
Stn. Parkland Centre
Halifax, NS B3J 3G6
Tel: 902/426-7982
Fax: 902/426-2768

Quebec
130 Dalhousie Street
P.O. Box 2267
Quebec, QC G1K 7P6
Tel: 418/648-3401
Fax: 418/648-3040

400 d'Youville Square
Montreal, QC H2Y 2C2
Tel: 514/283-6332
Fax: 514/283-7500

Northern Ontario
333 Laurier Avenue W.
Ottawa, ON K1A 0L9
Tel: (613) 991-0537
Fax: (613) 952-7149

Southern Ontario
1 Front Street W.
P.O. Box 10
Station A
Toronto, ON M5W 1A3
Tel: 416/973-1731
Fax: 416/954-8337

26 Arrowsmith Road
P.O. Box 2989
Hamilton, ON L8N 3V8
Tel: 905/308-8608
Fax: 905/308-8615

451 Talbot Street
P.O. Box 5940
Station A
London, ON N6A 4T9
Tel: 519/645-5843
Fax: 519/645-5819

P.O. Box 1655
Windsor, ON N9A 7G7
Tel: 519/257-6353
Fax: 519/257-6444

Prairie Provinces

Federal Building
269 Main Street
Winnipeg, MB R3C 1B3
Tel: (204) 984-6986
Fax: (204) 983-6635

320 Harry Hays Building
220-4th Avenue, S.E.
Calgary, AB T2G 0L1
Tel: (403) 292-4667
Fax: (403) 292-8856

Pacific

333 Dunsmuir Street
Vancouver, BC V6B 5R4
Tel: 604/666-6753
Fax: 604/666-2637

U.S. companies that export goods and materials to Canada for further processing and re-export are not liable for the Goods and Services Tax (GST) and where applicable, custom duties, if the products or materials being processed are subsequently re-exported. However, in order for these U.S. products or materials to be exempt, the Canadian company contracted by the U.S. company must apply for an import certificate number from Revenue Canada's TAS prior to the products' entry
into Canada.

U.S. companies exporting or considering exporting products to
be reworked or further processed in Canada, may wish to familiarize
themselves with Revenue's Canada Exporters of Processing Services Program and to request that their Canadian partner meet these requirements prior to doing business. The Canadian Goods and Services Tax (GST) is a value-added consumer tax applied to all domestic and imported goods and services sold in Canada and is calculated on the duty-paid value of the imported
merchandise.
bridgat
 
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Joined: Thu Nov 13, 2008 12:51 am

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