Recent Trade News
Statement On The Passing Of Glen Todd
Mar 29, 2022
General Strike At Port Of Montreal Set To Begin Next Week
Apr 23, 2021 CSCB
Regulation Update To Pet Foods From The US
Apr 09, 2021 CFIA
Minister Ng announces Canada is ratifying the Canada-United Kingdom Trade Continuity Agreement
Mar 19, 2021 Global Affairs Canada
Importing Food Into Canada With A Safe Food For Canadians Licence
Mar 15, 2021 CFIA
Reminder: Importing food into Canada with a Safe Food for Canadians licence
Feb 17, 2021 CFIA
Safe Food For Canadians Licence Renewals
Jan 08, 2021 CFIA
Statement By Minister Ng On Canada’s Request For CUSMA Dispute Settlement Consultations With United States On Canadian Solar Products
Jan 07, 2021 Global Affairs Canada
Canada Announces Steps To Ensure Stability For Canada-United Kingdom Trade In Goods
Dec 22, 2020 Global Affairs Canada
Minister Ng Introduces Legislation In House Of Commons To Implement Canada-United Kingdom Trade Continuity Agreement
Dec 09, 2020 Global Affairs Canada
Implementation Of Chapters Of The Animal Products Import Policy Framework
Dec 02, 2020 CFIA
Canada Successfully Concludes Talks On Transitional Trade Continuity Agreement With The United Kingdom
Nov 21, 2020 Global Affairs Canada
Updated Requirements For Importing Organic Fresh Fruits And Vegetables
Oct 02, 2020 CFIA
New And Temporary Import Requirements On Romaine Lettuce
Oct 02, 2020 CFIA
U.S. Backs Down On Aluminum Tariffs
Sep 16, 2020 Pacific Customs Brokers
Canadian Tariffs On U.S. Products Coming Within Days
Sep 15, 2020 CSCB
Additional Organic Produce Import Requirements
Sep 10, 2020
Longshoremen Return To Work At The Port Of Montreal As Negotiations Continue
Aug 24, 2020
Port Of Montreal Labour Disruption – Vessel Options
Aug 19, 2020
72-Hour Strike From July 27 to 31 At Port Of Montreal
Aug 10, 2020
Canada Retaliates With New Surtaxes Imposed On Goods Imported From The U.S.
Aug 07, 2020
U.S. Imposes A 10% Duty On Canadian Aluminium Effective August 16th, 2020
Aug 06, 2020 Pacific Customs Brokers
Reduced Inspection Frequencies For Meat Imported From Australia And New Zealand
Aug 04, 2020 CFIA
Reminder On SFCR Requirements For The Manufactured Food Sector
Jul 10, 2020 Pacific Customs Brokers
Safe Food For Canadians Regulations (SFCR) Requirement For The Manufactured Food Commodities
Jun 29, 2020 CFIA
Read More News »
U.S. Made Goods Returned – Not Always Duty Free
By Aimee Miller, Sep 03, 2015
Goods manufactured in the United States that have been previously exported and are now returning require a formal declaration called American Goods Returned (AGR) also referred to as U.S. made Goods Returned (USGR).
Common mistake made by importers
Do not assume that the return of goods to the United States will be without some difficulty. A common mistake that importers make when declaring U.S. goods is that they do not know where the products were manufactured. Just because the product was purchased in the United States it doesn’t necessarily mean it was manufactured in the United States.
U.S. Goods Returning are usually eligible for duty-free status
All goods are subject to duty every time they enter the U.S. unless they are specifically identified as duty exempt. Did you know U.S. goods returning to the United States are usually eligible for duty-free treatment? The provision 9801.00.10 in the Harmonized Tariff Schedule allows U.S. made products to return to the U.S. without being subject to duty and the Merchandise Processing Fee. However, the provision stipulates the goods cannot be advanced in value or the condition of the goods improved while abroad.
Example 1: U.S. Manufactured Helicopter Sent to Canada for Repairs
For example, say you are the owner of a helicopter manufactured in the USA. The helicopter has electrical problems and you send it to a repair shop in Canada. When the helicopter returns the value of the repairs may be subject to duty.
Example 2: Canadian Company Purchases Goods from the U.S.
Another example would be goods purchased from the U.S. by a Canadian company. They received their shipment and the goods were refused by the buyer because they did not meet their product specifications. The goods can be returned to the U.S. duty free if the proper documentation can be supplied to U.S. customs.
Documentation required for U.S. Goods Returning duty free
The most common proof is a Manufacturer’s Affidavit. Like the name implies, this form is completed by the actual manufacturer of the goods. U.S. customs requires this for any shipments that are valued over $2500 and if the articles are not clearly marked with the name and address of the manufacturer.
The affidavit must:
- State that the goods are a product of the USA
- Be on the U.S. manufacturer’s letterhead and
- Signed by an employee from the U.S. manufacturers facility that has the authority to sign on behalf of the company.
As supporting proof of U.S. Goods returning, U.S. Customs also requires:
- Foreign Shipper’s Declaration and
- Declaration by Owner, Consignee or Agent
At some U.S. ports of entry, Customs will accept a NAFTA Certificate that is completed by the manufacturer.
Next time you get ready to ship U.S. goods remember it is not always as easy as it seems. Be sure to supply the proper paperwork to support your duty free return!