Import and export considerations

In addition to the various forms of commodity taxes previously discussed, firms importing goods into Canada are required to pay customs duties and Goods and Services Tax (GST) or Harmonized Sales Tax (HST), as well as abide by a number of federal laws, which regulate customs procedures, quotas, product standards and labelling requirements within Canada. See the section titled “Federal consumer product and labelling standards” for additional reference.

Companies contemplating Canada for manufacturing/exporting purposes are also subject to certain regulations, including reporting requirements. Further, certain goods are subject to export controls, including all goods imported from the US that are not substantially transformed in Canada.

In addition to specific long-standing legislative deterrents, Canada has implemented the Administrative Monetary Penalty System (AMPS). AMPS is a civil penalty regime designed to secure compliance with Canada’s import and export obligations. AMPS provides  a monetary penalty to be levied for a violation of obligations related to either importing to, or exporting from, Canada, as set out in three pieces of federal legislation: the Customs Act, the Customs Tariff and the Special Import Measures Act, and the regulations promulgated thereunder. The scheme is designed so that the level of penalty increases each time an importer or exporter repeats an infraction.

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