On May 6, 2020, the Canada Border Services Agency (“CBSA”) published Customs Notice 20-19 to provide information for Certain Goods Remission Order (COVID-19), SOR-2020-101 (“Remission Order”) under the Customs Tariff. In order to help the fight against COVID-19, the Remission Order allows for the relief of customs duty for eligible PPE and medical supply goods which were imported on or after May 5, 2020.
What goods are entitled to duty relief?
The CBSA has also listed certain goods in Appendix B for other medical supplies that are not subject to the Remission Order, because the goods are already eligible for Most-Favoured Nation duty-free tariff treatment.
See the goods listed in Appendix A below:
|Face and eye protection
|Plastic face-masks, without mechanical parts, with or without a replaceable non-woven filter
|Face-masks of other textile materials
|Other disposable plastic gloves
|Non-disposable plastic gloves
|Surgical rubber gloves
|Other rubber gloves
|Knitted or crocheted gloves which have been impregnated, coated or covered with plastics or rubber
|Textile work gloves that are not knitted or crocheted
|Protective Garments and the Like
|Other articles of apparel and clothing accessories, of plastics, containing not more than 25% by weight of woven fabrics of man-made fibres, coated on both sides with polymers of vinyl chloride
|Other articles of apparel and clothing accessories, of plastics, combined with knitted or woven fabrics, bolducs, nonwovens or felt, containing woven fabrics of more than 50% by weight of silk
|Other articles of apparel and clothing accessories, of plastics, combined with knitted or woven fabrics, bolducs, nonwovens or felt
|Other articles of apparel and clothing accessories, of plastics
|Other garments made of rubber sheeting
|Other garments, made up of knitted or crocheted fabrics of heading 59.03, 59.06 or 59.07
|Other garments, knitted or crocheted, of cotton
|Other garments, knitted or crocheted, of man-made fibres
|Other garments, knitted or crocheted, of other textile materials
|Other garments made up of felt or nonwovens whether or not impregnated, coated, covered or laminated (fabrics of heading 56.02 or 56.03)
|Other men’s or boys’ garments of woven fabrics that are impregnated, coated, covered or laminated (fabrics of headings 59.03, 59.06 or 59.07)
|Other women’s or girls’ garments of woven fabrics that are impregnated, coated, covered or laminated (fabrics of headings 59.03, 59.06 or 59.07). This includes unisex garments.
|Coveralls (men’s or boys’ – of cotton)
|Coveralls (men’s or boys’ – of man-made fibres)
|Other garments (men’s or boys’ – of other textile materials)
|Other garments of cotton (women’s or girls’)
|Other garments of man-made fibres (women’s or girls’)
|Other garments of other textile materials (women’s or girls’)
|Other made up clothing accessories
|Disinfectants/ Sterilization products
|Alcohol solution – undenatured, 75% ethyl alcohol
|Hand sanitizer, in liquid or gel form, or rubs and wipes impregnated with alcohol or other disinfectants, if in packages <1.36 kg each; Other disinfectant preparations put up in forms or packings for retail sale in packages <1.36 kg each, containing alcohol, benzalkonium chloride solution or peroxyacids, or other disinfectants such as hydrogen peroxide. This includes sodium dichloroisocyanurate (NaDCC) and calcium hypochlorite (65-70% active chlorine).
|Industrial shop towels, hemmed, of a width of 43 cm or more but not exceeding 56 cm and a length of 43 cm or more but not exceeding 61 cm, of unbleached woven fabrics solely of cotton or of cotton and man-made fibres, measuring per single yarn 420 decitex to 1,000 decitex and having not less than 78 yarns but not more than 133 yarns per 10 cm in the warp and not less than 78 yarns but not more than 137 yarns per 10 cm in the weft, of a weight of 135 g/m² or more but not exceeding 203 g/m²
|Other floor-cloths, dish-cloths, dusters and similar cleaning cloths
|Plastic urine bags, with outlet tap and non-return valve
|Other made up articles of textile (swabs), of cotton or other vegetable textile fibres, except solely of jute
|Other made up articles of textile (swabs), of other textile materials
|Soap (in bar form)
|Soap (in liquid, powder or other forms)
|Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap
|Sacks and bags (including cones), of polymers of ethylene
|Sanitary ware, Kidney basins (stainless steel)
*The CBSA has stated that descriptions above are for illustrative purposes only. Customs duty relief is applicable to all goods under these tariff items.
How can I receive duty relief on PPE and medical supply goods that I have imported?
The following conditions must be met for remission to be granted:
- The good was imported into Canada on or after May 5, 2020 and subject to customs duties;
- No other claim for relief of the customs duties has been granted under the Customs Tariffin respect of the good;
- The importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
- The importer agrees that it is subject, at any time, including after remission relief is provided, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and
- At the time when the Canada Border Services Agency conducts the review referred to in paragraph (d), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects.
Claims for relief of duties must also include all relevant documentation to show the CBSA that the imported goods match the list in Appendix A, that the goods were imported on or after May 5, 2020, and that the goods were subject to customs duties. Relevant documents can include a copy of original Form B3-3, bill of lading, sales invoice, waybill, sales contract, etc.. Importers should be aware that this list of documents is not exhaustive, and should take care to save all relevant paperwork when importing goods.
If you are importing commercial goods and you would like to obtain relief of customs duties at the time of import, the special authorization code 20-304 must be entered in field 26 (Special Authority) of Form B3-3.
Relief can be claimed at the time of importation, or within two years of the date of importation.
Can I receive remission for goods that have already been imported?
Duty relief can only be claimed for goods imported on or after May 5, 2020. If an overpayment of customs duty has been identified on commercial importations because the Remission Order was applicable, a B2 Adjustment Form may be filed with the CBSA.
Where the Remission Order was applicable and customs duty has been paid on non-commercial importations, Form B2G, Informal Adjustment Request may be sent to the CBSA.
What else do I need to know?
Any goods imported will still be subject to examination by the CBSA at the time of importation. The goods will also be subject to post-release verification for compliance with the Tariff Classification, Valuation, Origin and Marking programs, and any other applicable CBSA programs or provisions.
If the CBSA finds that there has been non-compliance, the importer will have to pay the applicable duties and taxes, as well as applicable penalties and interest. Therefore, it is very important for importers to be careful when requesting relief under this Remission Order and to keep copies of their paperwork to avoid penalties and interest down the road.
For more information, please contact LexSage Professional Corporation at 416-307-4168 or at email@example.com.