Government of Canada Deferral of GST & Duty

Date posted: March 29, 2020 | Author: Chad Swance, Director of Regulatory Affairs and Trade Compliance


On March 27, 2020, the Prime Minister of Canada announced that they would be allowing companies to defer the payment of duty and tax until June 30, 2020.  This is a welcome relief for many businesses in Canada. As the current business environment constantly changes, KN is here to keep your supply chain moving with up to date practical information.

The Prime Minister’s announcement and subsequent Customs Notices, allow importers who transact directly with the Government of Canada to delay the payment of their March, April and May Statement of Accounts until June 30, 2020. The Government of Canada has many additional subsidies available to business, which are available here.

In light of the recent policy changes from the Government of Canada, we would like to advise our clients of the following:

  • GST and Duty Direct clients may continue to pay on their own behalf. Clients can choose if delaying payment is in the best interest of their company.  Please note the entire amount is due directly to the Government of Canada on June 30, 2020.
  • Clients who are not GST and Duty Direct will be required to adhere to current Kuehne + Nagel credit terms for the payment of duty and taxes. Should a client wish to become GST or Duty Direct, please contact your local customer service representative to discuss.
  • If you are unsure if your company is GST and Duty Direct, please contact your local customer service representative.

Kuehne + Nagel is here to keep your supply chain moving.  With sudden changes and new announcements coming from all levels of government, we will continue to keep you updated. Our objective is to ensure you receive the necessary support and resources to plan your supply chains. Please reach out to your account managers so they may assist with any needs or changes.

Should your facility be closing as part of the efforts to flatten the COVID-19 curve, please reach out to Kuehne + Nagel to make arrangements for any outstanding deliveries. Please provide emergency contacts, alternate shipment delivery information, and shipment projections for upcoming weeks.  We are here to partner with you for the continued success of your business.

For more information regarding your company’s current fiscal arrangements, please contact your local sales or customer service contact.