Relieving duties on exported goods for ships stores

Relieving duties on exported goods for ships’ stores

If you supply goods for ships’ stores, you may be able to import the goods without paying duties under the Duties Relief Program. If you have already paid duties, you may qualify for a drawback under the Drawback Program.

Drawbacks

In this context, a drawback is a refund of the customs duties paid on imported goods that are eventually exported as ships’ stores. You can export the goods in the same condition as they were imported or, before export, you can further process or use them in a limited manner without affecting the drawback amount.

Goods deemed exported

If you deliver goods to a conveyance described in the Ships’ Stores Regulations, the goods are deemed exported. Please review these regulations to ensure that the conveyance you are supplying qualifies. If you have any questions, contact your local Canada Border Services Agency (CBSA) office.

Claiming a drawback

To claim a drawback under the Drawback Program, you have to complete Form K32, Drawback Claim (PDF, 133 KB), attach documents establishing that the goods qualify and then submit the package to your local CBSA office.

Duties Relief Program

The Duties Relief Program enables qualified companies to import goods without paying duties as long as the goods are eventually exported. Companies can export the goods in the same condition as they were imported or, before the goods are exported, they can be further manufactured or used in a limited manner without having to pay duties.

Applying for duties relief

If you are the importer, exporter, processor, owner or producer of the goods, you can apply for duties relief. To do this, you have to complete Form K90, Duties Relief Application (PDF, 15 KB), and send it to your local CBSA office.

Your application will be reviewed and an officer will arrange to visit your premises. During this visit, the officer will confirm that you qualify for the Duties Relief Program and that you are aware of your obligations. When your application is approved, you will be issued a unique licence number identifying you as a Program participant. For more information on the Duties Relief Program, see the information sheet called Importing Without Paying the Duties or contact your local CBSA office.

Time limits

In most cases, if you are presenting a drawback claim, you must do so within four years of the date the goods were released by the CBSA. You cannot file a claim until you export the imported goods.

If you have been approved to participate in the Duties Relief Program, the goods must be exported from Canada within four years of the date of release of the goods by the CBSA.

More information

For more information on drawbacks and duties relief or for help preparing your documents, contact your local CBSA office.