Duties Relief Program

• Duties deferred on imported goods must not exceed the lesser of the total amount of customs duties paid or owed on the imported goods into Canada and the amount of customs duties paid when the goods enter another CUSMA country ("lesser of the two duties" principle).
• For goods subject to CUSMA, SIMA duties deferred on entry into Canada must be paid within 60 days following the date of export if exported to a CUSMA country.
• If satisfactory evidence of duties paid in another CUSMA country is not obtained within 60 days of export, all deferred Canadian duties must be paid in full.
• Interest will be charged on outstanding duty amounts not paid within the specified deadlines, starting from the 61st day after export.

• The applicant must be a company that imports commercial goods into Canada.
• Imported goods must be subsequently exported, either in the same condition or after being used to produce other goods for export.
• The company must be able to track all goods and comply with reporting and audit requirements set by the Canada Border Services Agency (CBSA).
• If goods are sold or transferred prior to export, the new owner must also be a participant in the Duties Relief Program.

Who is eligible?

• Importers of commercial goods for export
• Manufacturers that use imported commercial goods to produce goods for export
• Companies engaged in trade activities involving import and subsequent export of goods

Who is not eligible

• Companies that do not import commercial goods for export purposes.
• Businesses unable to track or report on the eventual export of imported goods.
• Organizations that cannot comply with program reporting or audit requirements.
• Companies dealing with goods subject to Special Import Measures Act (SIMA) duties may face additional restrictions.

Eligible expenses

• Import duties on commercial goods that are brought into Canada and subsequently exported as-is or after minor operations (such as dilution, cleaning, applying preservative, trimming, cutting, packaging, or labeling).
• Duties on goods used to produce other goods intended exclusively for export within the program guidelines.

Eligible geographic areas

• Canada

• Step 1: Complete Application Form
  • Obtain Form K90, Duties Relief Application.
  • Accurately fill out all required fields with information about your company and the details of the imported goods.
• Step 2: Submit Application to CBSA
  • Send the completed Form K90 to your local Canada Border Services Agency (CBSA) office.
• Step 3: Register and Manage Activities through CARM Client Portal (if applicable)
  • If you are a Trade Chain Partner (TCP) with a CRA-issued business number, register for the CARM Client Portal (CCP).
  • Use the CCP to manage applications, requests, and declarations related to the Duties Relief Program.
• Step 4: Compliance and Record-Keeping
  • Track all imported goods covered by the program.
  • Ensure that records demonstrate the eventual export of the goods and compliance with program requirements.
• Step 5: Post-Approval Obligations
  • If goods are no longer eligible for the program, pay all necessary duties immediately.
  • Submit required evidence and summary reports (including satisfactory evidence, if exporting to the US or Mexico) as directed, at minimum on a quarterly basis.

• The Canada Border Services Agency (CBSA) may conduct periodic audits to verify program compliance.
• If imported goods are sold or transferred prior to export, the new owner must also be a participant in the Duties Relief Program and assumes all related liabilities.
• Participants must track all imported goods and pay duties immediately if the goods no longer qualify for the program.
• Goods must generally be exported within four years of importation into Canada.