Customs defines the term “For Processing” in imports agri-food processing inputs

The Canada Border Services Agency (CBSA) issued a new memorandum which outlines and explains the interpretation of the term “for processing”, as it appears in Chapters 1 to 21 and tariff item 9907.00.00 of the Customs Tariff.

The term is generally used in the text of some tariff items to provide conditional relief of customs duty on certain imported inputs used by Canadian agri-food processors in their operations. An importer must be able to demonstrate that the criteria upon which conditional relief was granted has been met.

According to CBSA the term “processing” means the conversion, by the domestic manufacturing industry, of materials from their natural, or processed, state to another form or state for subsequent use as human or animal food, nutritional supplements or cosmetics.

The agency gives examples, and also specifies what is not considered to be a processing operation.

Link: Memorandum D10-14-69 Administrative Policy – Interpretation of the Term “For Processing” as found in the Chapters 1 to 21 and Tariff Item 9907.00.00

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