Temporary Entries

• For various reasons, an importer may want to import goods on a temporary basis.

• If the goods qualify, then they may be entitled to relief of: All Duties &….

All, Part, or none of The Goods & Services Tax

Types of Temporary Entry Formats

• E29 B - Canadian Customs Form• 1/60th - Canadian Customs Form

• ATA Carnet - International Form

Remember!!! 1. Try and avoid temporary entries altogether!!!2. You must tell Customs the exact reason why the goods

are being imported. That will dictate the level of exemption, and whether they can be imported temporarily or not.

3. Find out if goods are duty free regardless. If they are, it may be better to do a regular entry as GST is refunded through an input tax credit.

Timelines 1. Get the reason behind the temporary importation.2. How long will goods be in Canada?3. Examine the duty aspect of the goods. 9993.00.00 Duty free on own merits? Duty free utilizing 9993.00.00?

4. Examine the GST aspect of the goods. D 8-1-1 Full relief? Partial? (1/60th) None?

5. The result will dictate what type of documentation Canada Border Services Agency will require.6. Clear the goods through Customs.

7. Export, Destroy or Consume goods before the expiry date.

HS# 9993.00.00

• Every item imported can be brought in under this number.

• Gives duty free status to temporary goods. NOT THE GOODS & SERVCES TAX!

9993.00.00.00 Conditions

• Goods cannot be sold or further mfg or processed in Canada• Goods are not on lease• Goods are not imported under a large quantity• Goods are exported, destroyed or accounted for in the proper

manner.• All necessary regulations of other government departments, must be

followed.

9993.00.00.00 cont’

• All goods must first be classified under their normal HS #.

• The amount of duty payable and the amount of GST payable will influence the type of temporary entry document that is used. (1/60th or E29B)

Security • Security is still required; a deposit. Can be a Certified Cheque, Cash,

or on Customs Broker’s Bond• The deposit is the amount of duties and taxes that should have been

paid if the goods were imported into Canada permanently.• A deposit is not required when…. - Goods originate under NAFTA, CCFTA,

CIFTA with a Certificate of Origin - Goods will be used in a convention or exhibition by any level of Cdn Govt or of a foreign Govt. - Applicable Customs duties are less than $100.00 CAD

Temporary Entries - GST

• All Goods are Duty free, but the level of GST paid varies.• Appendix C of D8-1-1 provides a table to determine whether or not the goods

are eligible for any GST relief.

• The reason for the import must be listed in the Appendix in order for it to qualify for any type of GST relief.

Temporary Entries - GST

• Goods can be documented (cleared) on B3(1/60th) or an E29B “Temporary Admission Permit”

• Customs will not clear the goods until they are satisfied the goods qualify, there is security, and the forms are completed properly.

• Customs will then issue a Permit number to control the temp. entry. If they do not receive a proof of export before the expiry date, full duties and taxes apply.

Temporary Entries – Which Document to

Use?

Goods GST Free GST at

1/60thFull GST

Duty Free

In Customs

Tariff

E29B B3 collects GST

and controls

period of temp.

importation

B3 - import as if

a permanent

importation

Dutiable but free

using 9993

E29B with

security for

GST & duties.

E29B controls

period of temp.importation

B3 collects the

GST owing and

controls the

period of temp.

importation

B3 and E29B

collects GST

owing and

security for duty,

and controls

period of

importation

Form E29B • Multi- copied form.• Is available on line as an electronic form, or old style hand typed

format (carbon)• Complete all information, Calculate the amount of Duties * Taxes ,

that amount will be posted for security.

• Used by Customs to control the goods. Release and then Exportation, destruction, or consumption

Commercial Samples

• Samples of goods produced outside Canada that are imported to solicit orders for goods to be supplied from outside Canada.

• Films, charts, projectors, models etc to do the same.• Usually non-resident, but can be a Canadian.• One year time limit until exportation.• Documented on an E29B• Security required as any E 29B

1/60th Entry

• Canada Customs Coding Document B3 used.• Value is calculated:

#of months goods in Canada x Value for

60 Currency Conversion

• Entry processed as normal. • Via Paper (like E29B) or electronically

1/60th Entry - Example• ABC Company Of Hollywood California, wishes to import Sound Equipment for

use in the filming of a motion picture on the streets of Toronto.

• The Sound Equipment is worth $25,000.00 USD.• Exchange rate is 1.04

• The equipment will be in Canada 5 months before being exported.

• Customs has accepted the temporary entry as duty free as a NAFTA Certificate of Origin is present, but the GST must be applied on a 1/60th basis as per the instructions of D8-1-1 for this type of importation. The entry will be accounted for on a Canada Customs Coding Form B3.

1. What is the value for duty?2. What is the amount of GST to be paid?

1/60th Entry Example

1. Value For Currency Conversion (VFCC) = $25,000.00 USD

2. Compute the value for duty (VFD) (1/60th value.)($25,000.00 USD x 1.04) x 5 months = $ 2,166.67 CAD

60

3. Compute the Duty. $2,166.67 x 0% = $0.00 (9993)

4. Compute the GST. $2,166.67 x 5% = $108.33 CAD

ATA Carnet

• “Admission Temporaire” “Temporary Admission”

• Passport for the goods being imported on a temp basis

• Acts as documentation for the goods, and provides a guarantee for duties, should the goods not be exported

• Issued by Chamber of Commerce in Country of Origin