Many importers/exporters are familiar with End Use Certificate requirements for export transactions, which are provided to give information for export controls / economic sanctions purposes. It is important to realize that a different form of End Use Certificate may be required for import purposes when an importer has classified goods pursuant to special duty relieving “end use” tariff items in Chapter 99 of the Customs Tariff (Canada). Many Chapter 99 tariff items have a lower rate of duty applicable. Some Chapter 99 tariff items contain wording that restricts or constrains the imported goods to certain uses. For example, the tariff item contains the words “for the use in”. “for use in the manufacture of”, “for the use by”, “for use on”, “for”, “to be employed”., or “which enter into the cost of manufacture of”. Simply put, if you are importing goods for a specified end use, you are able to benefit from reduced duty rate.
However, in order to benefit from the lower tariff rate, evidence of the application of the end use pre-condition is required. An End-Use Certificate from the party who will use the goods satisfied the evidentiary burden to a certain extent. An End Use Certificate is an attestation affirming the use of the imported goods in accordance with the provisions of the end use tariff item (see D-Memo D-11-8-5 “End Use Programs”). An End Use Certificate must be signed by the end-user of the goods and include the end user’s name, address, occupation, actual end use of the goods (a brief description of the manner in which the goods will be used), the applicable tariff item number and a description of the goods (see D-Memo D-11-8-5 and D-Memo 17-1-21 “Maintenance of Records In Canada by Importers“).
The importer must maintain records of the End-Use Certificate. The CBSA takes the position that the End-Use Certificate must be available at the time of importation. End Use Certificates signed after the fact may not be accepted by the CBSA despite the fact the information is accurate and correct and the information in the certificate may be verified.