FAQ Canadian Brokerage
Goods that were imported and duty paid have subsequently been found to qualify for the North American Free Trade Agreement preferential duty rates. Is there a mechanism to retrieve the duty that was paid?
Answer: With a copy of a valid NAFTA certificate from the supplier of the goods a refund claim can be submitted within one year. Even one day more than a year after the goods have been imported would result in the rejection of any claim submitted to Customs.
A shipment was sent to a U.S. customer that was not according to order. Does duty and GST need to be paid when the customer returns the product?
Answer: As long as the goods are returned in the same condition as when sent, duty and tax would be applicable. It would be good practice to have the supplier note the reason for the return on the invoice provided for clearance. To support this claim, copies of the export documents should accompany the shipment as evidence that the goods were exported.
An international shipment was received and the paperwork used for the customs clearance was incorrect. The actual value of the shipment was lower than the amount reported to Customs. Does the entry need to be amended since duty & GST were overpaid?
Answer: The customs entry needs to be amended to reflect the exact amount of the transaction as it is imperative that the information provided to Customs corresponds to the reality of the company books and records.
A shipment was imported from a supplier and NAFTA certificate was provided. It was determined that the goods do not qualify for NAFTA. What must be done to maintain compliance?
Answer: An amendment to the customs entry must be filed in order to avoid the assessment of a penalty should there be an audit. A letter from the supplier should be obtained to explain the incorrect use of NAFTA.
Duty rates from my Chinese suppliers are higher than rates from other countries. Is there a possibility of having a lower duty rate assessed?
Answer: General Preferential Tariff treatment applies to many goods that are shipped from China, but not all goods. If goods are shipped directly from China to Canada and an original Form A or an Exporter’s Statement of Origin is supplied, then it is possible that a lower rate of duty applies.
Is it appropriate for an Importer to prepare a NAFTA certificate for a shipment arriving from the United States?
Answer: Only the manufacturer or supplier can determine if goods meet the requirements of NAFTA, therefore, only they can prepare the certificate.