PRINCE GEORGE FOREIGN TRADE ZONE
DOWNTOWN PRINCE GEORGE
CN INTERMODAL HIGHWAY 16 TERMINAL 3KM
BOEING ROAD CARGO FACILITY
HIGHWAY 97A
TERMINAL BOUNDARY ROAD
Foreign Trade Zone
HIGHWAY 97 Airport Lands Prince George Global Logistics Park Airport Multipurpose Airside General Aviation Airside Cargo Prince George Foreign Trade Zone
Prince George is Canada’s western-most inland port and newest Foreign Trade Zone. A Foreign Trade Zone (FTZ) is an officially designated location that is eligible for tariff and tax exemptions on raw materials, components, or finished goods imports. Investing in the Prince George FTZ helps businesses connect with provincial, national, and international markets by way of the city’s transportation network: • The Prince George Airport (YXS). • A CN intermodal terminal. • Provincial Highways 16 and 97. • Access to the Port of Prince Rupert and the Port of Metro Vancouver.
Foreign Trade Zone Benefits Program Main Benefit Main Qualifications Duties Relief Program Upfront relief of duties Goods must be exported within four years Drawback Program Refunds duties for exported goods Goods must have been exported within four years Customs Bonded Warehouse Defers/relieves duties and taxes Goods must not be substantially altered Export Distribution Centre Program Upfront relief of GST/HST on certain Must be export-oriented commercial entity imports and domestic purchases that adds only limited value to goods The Exporters of Processing Upfront relief of GST/HST on certain Goods must belong to non-resident and be Services Program imports re-exported after being processed
Opportunities Airport Land Global Logistics Park Land • 283 hectares (ha) of leasable land. • Over 1,214 hectares of shovel-ready light industrial land. • Airside general aviation • Privately owned. • Airside Cargo • Option to have direct airside access with security fence. • Multipurpose • 929 square metres of cargo warehouse leasable area. • Security fenced.
Task Force For more information on the One-Window Task Force, Prince George’s single-window service allows investors contact the Economic Development staff. direct access to: Economic Development • Canada Border Services Agency. City Hall - 1st Floor • Canada Revenue Agency. 1100 Patricia Boulevard • Transport Canada. Prince George, BC V2L 3V9 • Foreign Affairs and Trade Development. Canada • Industry Canada. Phone: 250-561-7633 • Export Development Canada. Email: [email protected] Prince George Foreign Trade Zone
The Duties Relief Program (DRP) With duties relief, you may not have to pay duties on imports that you store, process or use to manufacture other products, provided you later export the goods or products. Duties relief has other benefits, such as the following: • You have up to four years from the date of importation to export your goods before you have to pay duties. • You can sell or transfer the goods to other authorized duties relief participants without having to pay duties. In this case, the receiving company assumes liability for any duties. • You can substitute Canadian-made parts for imported ones to produce a finished good to help you meet changing market conditions. • You do not need to post security: for example, no bonds or licensing fees are required.
How does the program work?
Do you meet the program requirements? • Import goods into Canada PROGRAM DOES • Receive goods that were imported into Canada NO • Re-export those goods, and want duty relief at ✗ NOT APPLY time of importation
YES ✓ (Form K-90)
Complete application Form K-90
Submit application to nearest Canada Border Certification and Waivers Services Agency (CBSA) Document transfer of duty liabilities (Form K 32A, Certificate of Importation, Sales or Transfer) Commercial documentation acceptable in some cases
Additional notes for the Duties Relief Program • CBSA may occasionally check to make sure you are complying with these requirements. • CBSA will review the application and visit the premises. • Applications will be denied if money is owed to the government. • A unique certificate number is issued if the application is approved. Form K-90 http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/k90.pdf Prince George Foreign Trade Zone
Duty Drawback Program (DDP) Under the duty drawback option, you may be able to recover duties already paid on goods that were subsequently exported. The claim must be filed within four years of the date of importation. You can apply for a drawback if you export the goods in the same condition in which they were imported, or if you use them in the manufacturing of other goods that are exported.
How does the program work?
Are you an importer, exporter, processor, owner, or producer of Do you import goods? NO goods that were exported from NO ✗ Canada; and did you pay duty on ✗ the goods during importation? YES ✓ (Form K-32A PROGRAM DOES Form K-32B) YES ✓ (Form K-32) NOT APPLY
Waiver required from all other eligible claimants, waiving Complete Form K-32 Drawback Claim their right to claim a drawback (Form K-32A or Form K-328) Supporting Documentation: Copy of export sales invoice Bill of landing or other shipping document Other proof of export as requested by Canada Border Services Agency Submit application to Not importer: waiver on commercial documentation or nearest Canada Border original and copy of any: Form K-32A, Certificate of Services Agency (CBSA) Importation, Sale or Transfer Not exporter: waiver on commercial documentation or original and copy of any: Form K-32B, Drawback Certificate of Sale for Exportation Evidence if your exports are affected by NAFTA
Form K-32 http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/k32.pdf
Form K-32A https://www.cbsa-asfc.gc.ca/publications/forms-formulaires/k32a.pdf
Form K-32B https://www.cbsa-asfc.gc.ca/publications/forms-formulaires/k32b-16.pdf Prince George Foreign Trade Zone
The Customs Bonded Warehouse Program (CBW) A customs bonded warehouse is a storage facility that your company operates under the authority of the CBSA. The following are some of the benefits of using a customs bonded warehouse: • Can be an unconventional warehouse, such as an office or hotel room. • You do not pay duties and taxes until the goods enter the Canadian marketplace. • If you export the goods from Canada, you do not pay duties and taxes. • You can import goods in bulk, store them in your warehouse and remove them as you need them.
How does the program work?
Will you be conducting any of the following activities? PROGRAM DOES • Displaying NO • Marking, labelling, tagging, ticketing ✗ NOT APPLY • Disassembling, reassembling • Packing, unpacking, packaging, repackaging Complete Form E401 • Removing goods from the Include detailed site plan for the CBW warehouse to solicit orders YES ✓ designated area (Form E401) • Inspecting Security bond to be posted with CBSA • Testing Applications for alcoholic beverages • Storing must include written approval from the provincial liquor authority Applications for firearms and weapons must include a business Submit Form to the firearms licence customs office closest to Applications for fresh fruit and your warehouse vegetables have special requirements
Additional notes for operating a Customs Bonded Warehouse • Successful applicant receives customs bonded warehouse licence with unique licence number. • Must present permits, certificate, authorizations, and/or waivers for all goods. Restricted goods without permits will be denied entry. • Periodic verifications will be conducted based on risk analysis. • Consequences for failing to comply can result in a monetary penalty to licence cancellation. • Your records must track the movement of all goods, including: • Movement into the warehouse. • Ex-warehouse movements. • Transfers to and from the warehouse. • Acknowledge receipt of goods into the warehouse. • Allowable activities undertaken. • A licence transfer requires a new application. To transfer a license, submit Form B3 type 30. • Notify the CBSA at least 60 days in advance to amend or cancel a license. Form E401 https://www.cbsa-asfc.gc.ca/publications/forms-formulaires/e401.pdf Prince George Foreign Trade Zone
The Export Distribution Centre Program (EDCP) The EDCP program benefits export-oriented businesses that import goods and/or acquire goods in Canada, process them to add limited value and then export them. The “limited value” criterion is a key factor here, since the EDCP is not intended for companies that manufacture or produce new products for export. The program is of particular value to businesses involved in the processing of goods, such as distributing, disassembling or reassembling. Under the program, EDCP participants do not pay federal Goods and Services Tax (GST) or a Harmonized Sales Tax (HST) on most imported goods or on domestic purchases of goods worth $1,000 or more.
How does the program work?
Do you meet the following requirements? NO PROGRAM DOES • Registered for GST/HST purposes NOT APPLY • Exports are at least 90% of revenue (no ✗ producing or manufacturing) • At least 90% of your operations are commercial YES ✓ Complete GST Form • Property is not substantially altered (GST Form 528) 528 - Authorization to • Limited value added: 10% or less in Use an Export non-basic services; or 20% or less in total Distribution Centre
Submit Form to the Verification Audit Enforcement Division (VAED) of the local Canada Revenue Agency (CRA) Tax Services Office
Additional notes for participating in the Export Distribution Centre Program • The VAED will be in contact to review the application. • Successful applicants will be notified in writing of the effective date and the expiry date of authorization. An EDCP authorization number will be provided that can be used to purchase or import goods tax-free. • EDCP authorization must be renewed every three years by submitting the GST Form 528 again to the nearest CRA Tax Services Office, at least three months before expiry. • “Basic Services” include: • Disassembling or reassembling the goods, if they have been assembled or disassembled for packing, handling or transport. • Displaying, inspecting, labelling, packing, storing or testing the goods. • Removing a small sample of the goods to solicit orders for goods or services. • Cleaning, diluting, maintaining, servicing, preserving, separating defective goods, sorting or grading, trimming, filing, slitting, cutting, and complying with any applicable law of Canada or a province, as long as the characteristics of the goods are not materially altered.
GST Form 528 https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/gst528/gst528-16e.pdf Prince George Foreign Trade Zone
The Exporters of Processing Services Program (EOPS) Administered by the CRA, the EOPS program relieves participants of the obligation to pay GST/HST on imports of goods belonging to non-residents, provided that these goods are imported for processing, distribution or storage and are subsequently exported.
How does the program work?
Do you meet the following requirements? NO PROGRAM DOES • Registered for GST/HST purposes NOT APPLY • Able to post financial security, if required ✗ • Never transfer possession of the goods to another Canadian business (except for storage or transportation) YES ✓ • Goods are owned by non-resident(s) who is (Apply in writing) not closely related to owner or customer • Goods are never consumed or used in Canada • Goods are imported for the purpose of supplying storage, distribution, processing, Prepare an application letter requesting manufacturing, or production services to authorization to use the EOPS program and include: foreign customer Agreement(s) showing goods were imported for • Goods will be exported within four years processing services and were then re-exported Documentation showing past patterns of importing goods to process and then re-export Submit application to the local Canada Revenue Agency (CRA) Tax Services Office
Additional notes for participating in the Exporters of Processing Services Program • Applicant may request GST only or GST and duties relief. If requesting duties relief, submit Form K-90 to local Canada Border Services Agency (CBSA) office. • If eligible for EOPS, CRA will conduct a field audit. • Successful applicants will be issued an EOPS authorization number, which must be disclosed when accounting for the non-taxable importation of goods. • Authorization will be cancelled if: • The program conditions were not or will not be met . • Authorization is used inappropriately. • To renew authorization, reapply in writing to the nearest CRA Tax Services Office every three years, at least three months before expiry. City of Prince George - Economic Development 1100 Patricia Blvd. | Prince George, British Columbia, Canada V2L 3V9 Tel. 250.561.7633 www.investprincegeorge.ca
Disclaimer: The data provided in this document has been collected from a variety of sources and is deemed to be accurate and up-to- date at the time of publication. Please report errors or omissions to City of Prince George - Economic Development. City of Prince George - Economic Development does not accept responsibility or liability for information and those using the material should verify it with other sources to ensure that it is correct and current.