CBSA Postpones Duty Payments Until June 2020
April 23, 2020
The Canada Border Services Agency announces extensions of timeframes for duty payments as response to COVID-19.
The Canada Border Services Agency (CBSA) recently announced that in light of the recent COVID-19 pandemic, the timeframe for the payment of duties and the Goods and Services Tax (GST) has been extended to June 30. Debts due on the Statement of Account (SOA) dated March 25, 2020, and later will now be deferred to June 30, 2020.
It was unclear initially whether this grace period extended to non-resident importers (NRIs), the CBSA issued clarifying language on April 3rd that NRIs are eligible. The grace period includes customs duties; Goods and Services Tax (GST) on regular imports, Harmonized Sales tax, re-assessments, penalties, etc.; and charges on statements of account for March that are due April 1. Customs duty and GST payments on imports are typically due before the first day of the month following the month in which the statement of accounts is issued. Non-resident importers deferring payment will not need to file for extensions, as the CBSA will automatically change the due dates.
The CBSA notes that there is no change to the accounting timeframes prescribed by the Accounting for Imported Goods and Payment of Duties Regulations. As a result, importers must continue to submit accounting declarations for imported goods released on minimum documentation within the required timeframes. However, the CBSA has also said it will provide a 45-business day grace period for late accounting penalties. This policy applies to transactions released from March 11 through May 14 and companies will not have to submit an application to have such penalties waived.
For more details regarding specific transaction types and their due dates, click here: https://cscb.ca/article/arl-bulletin-54-extension-timeframes-functional-guidance-past-due-items
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