Customs Bonded Warehouse Program

Act: Customs Tariff, S.C. 1997.e.36 as amended by 1998, c. 19, 1999, c.17
Regulation: Customs Bonded Warehouses Regulations, SOR/96-46, as amended by SOR/99-106

To Whom Does This Apply?

  Anyone wishing to operate a customs bonded warehouse.   

Eligible Activities

Summary

  Customs bonded warehouses are facilities that are licensed and regulated by the Canada Border Services Agency (CBSA) and operated by the private sector. In these facilities, goods can be stored duty free and tax free (generally for up to four years) until they are exported or are consumed domestically.

Importers or operators who use these warehouses must:

Licensees must keep inventory-related records of receipt, removal, transfer and alteration of goods. They also need to provide specified facilities, equipment and personnel. Licensees must also meet appropriate operational standards.

Most goods waiting to be exported or for CBSA release can be stored in these warehouses for up to four years, although certain goods can be stored for up to 15 years. The warehouses defer total duties and taxes payable until the goods are consumed domestically or exported, or until the time limits noted above have expired.

What Are the Benefits to Importers?

Importers who use these warehouses enjoy one or more of the following advantages:

• on-site storage;
• just-in-time delivery;
• less cash tied up in duties and taxes.

All shipments of goods moving into or out of these warehouses must be documented on a B3, Canada Customs Coding form. If goods are removed or used for consumption in Canada, they must be accounted for on the B3 with full duty and tax payment.

Requirements and Restrictions

Customs bonded warehouse operators must let the CBSA see their warehoused goods and must make their records available. They are required to keep records on goods for six years after the goods are removed from the warehouse.

Certain restrictions apply to the storage of imported alcohol and tobacco.

CBSA customs bonded warehouses are licensed under Section 91 of the Customs Tariff. The Act governs the issuing of licenses for the operation of any facility as a bonded warehouse. Such warehouses store goods that have not been released or are destined for exportation. The Customs Bonded Warehouses Regulations specify the requirements for the licensing and operation of bonded warehouses.

For more information, please contact the Canada Border Services Agency or visit the Web site.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Manitoba Contact(s):
See National Contact.

 

---

National Contact(s):
Border Information Service - BIS
Canada Border Services Agency
Telephone: 204-983-3500 or 506-636-5064 (for calls outside Canada)
Toll-free (information): 1-800-461-9999 (for calls within Canada)
Web site: http://www.cbsa.gc.ca/menu-eng.html