Tax Memo - Customs Update: Unilateral Duty Reductions and Audit Targets

Canadian Government Proposes Sweeping Unilateral Duty Reductions — Comments Sought by November 6, 2009

The Canadian government has announced its intention to unilaterally remove the customs duty on a wide range of imported products. The Department of Finance is seeking comments from stakeholders on a proposal to remove the duty on more than 1,500 specific tariff items. Each tariff item may encompass a broad selection of products. The Department will also consider submissions for the removal of duty on tariff items not on their list.

This proposal, if implemented, could result in unconditional duty-free entry into Canada of products classified in Chapters 25-90 of the Harmonized System, including chemicals, fibres, manufactures of stone, glass and metals, and tools, machinery and equipment. In some cases, the duty rates could end up being phased out over a maximum five-year period.

Learn more about the government's proposal and the deadline to submit comments in the Tax Memo below.

Tax Memo — Customs Update: Unilateral Duty Reductions and Audit Targets (87 KB) Download the full PDF.