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Canada Moves to Streamline, Lower Costs of Using FTZs

Tuesday, September 03, 2013
Sandler, Travis & Rosenberg Trade Report

The Canadian government announced Aug. 29 the following changes aimed at reducing the red tape and costs associated with using foreign trade zones. These measures “will help in the development of manufacturing, processing and warehouse hubs throughout Canada,” said Minister of State (Finance) Kevin Sorenson, and “make Canadian businesses even more competitive globally.”

- eliminating, effective April 1, 2013, the annual registration fee for the customs bonded warehouse program, Canada’s most-used FTZ program

- streamlining the audit process for clients of the duties relief program and providing nationally consistent verification procedures

- simplifying application forms (which will be published later) and eliminating the need to submit duplicate information

- introducing service standards under which the Canada Border Services Agency will strive to process correctly completed and supported claims under the duties relief and duty drawback programs within 90 days and customs bonded warehouse applications within 60 business days

- accepting requests for new “FTZ Point” single windows (single points of contact and coordinated service) to support FTZ-focused organizations located at major transportation hubs that are helping companies to set up at their sites and take advantage of FTZs

- creating a comprehensive new Web site to provide a central source of information on FTZs in a business-friendly format

- launching a five-year, $5 million program to market Canada’s FTZs and attract foreign investment in manufacturing, processing and distribution hubs to strategic locations across Canada

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