The Canadian government is considering a change to its duty drawback policies to allow companies to donate surplus merchandise to charitable organizations within Canada and receive a refund on any duties paid on imported goods. This proposed change aims to reduce waste and provide much-needed support to Canadians in need.
Currently, surplus goods may qualify for duty refunds if the merchandise is either exported or destroyed. The rules are contained in CBSA D-Memo D7-2-3. The rules in place require that there is a clear trail from the original importation to the goods that are subject to refund of duties.
We invite interested companies to provide feedback on the following questions:
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Increase in Donations: Would you increase the amount of clothing to Canadian charities if duty refunds on donations are permitted?
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Impact on Destruction/Exportation: What is the estimated decrease in merchandise (volume and value) destroyed or exported if duty refunds were available for donations?
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Documentation and Administrative Burden: What are the anticipated challenges in providing the necessary documentation linking donated goods to the original importation ("B3" document) to qualify for a duty refund?
We are interested in understanding any potential administrative burdens and barriers that may prevent companies from qualifying for duty refunds.
Your feedback is valuable in assessing the potential impact and feasibility of this proposed policy change.
Thank you for your time and insights.