The Government of Canada announcement of Hamilton’s official designation as a foreign trade zone (FTZ) point will help businesses facilitate importing and exporting trade and business opportunities.
As the third FTZ point in Ontario and one of 14 in Canada, the designation will help position the Hamilton area as a hub for international trade. The area will be more attractive to businesses and foreign direct investment by offering a single point of access to resources and information relating to programs that relieve duties, tariffs and taxes for business.
Free Trade Zone (FTZ)
FTZ refers to a specific location within a country that is officially designated for eligibility for tariff and tax exemptions with respect to the purchase or importation of raw materials, components or finished goods.
The FTZ designation improves access to existing programs and promotes Canada’s advantage. It allows the region to coordinate to provide programs that benefit businesses, such as the Duty Deferral Program, the Duties Relief Program, the Drawback Program, the Customs Bonded Warehouse Program and the Export Distribution Centre Program.
Overview of Canada’s FTZ-Type Programs
|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 imports and domestic purchases||Must be export-oriented commercial entity that adds only limited value to goods|
|The Exporters of Processing Services Program||Upfront relief of GST/HST on certain imports||Goods must belong to non-resident and be re-exported after being processed|
Learn more on Foreign Trade Zone and the associated programs.