The Supreme Court of Canada (SCC) ruled in favour of the taxpayer in Daishowa-Marubeni International Ltd. v. The Queen (DMI). The SCC released its unanimous decision today.
Imports into Canada that qualify for GPT treatment may be subject to Canadian customs duty at a preferential duty rate, i.e. a reduced or duty-free rate, depending on the type of goods.
To claim GPT benefits when applicable, importers must ensure the goods are:
In addition, they normally must:
In certain cases, GPT claims may be made retroactively, up to four years, if a GPT claim was not made at the time of import accounting and all other requirements are met.
Generally, the Canada Border Services Agency (CBSA) can audit/verify importers that have made GPT import claims for up to four years after import. The CBSA may ask to review the documentation noted above.
The table on page 2 lists the 72 countries that no longer benefit from GPT treatment. Starting January 1, 2015, Canadian importers may be required to pay more duty on goods they import from these 72 countries – especially if no other tariff preferences are available and the goods are otherwise subject to customs duty.