Exporters of Processing Services Program

The Exporters of Processing Services Program enables qualified companies to import goods belonging to non-residents without paying the Goods and Services Tax/Harmonized Sales Tax (GST/HST), provided that these goods are imported for processing, distribution or storage, and are subsequently exported. This program may be relevant to you if:

  • You are registered for GST/HST purposes;
  • You are able to post financial security, if required;
  • You never transfer possession of the goods to another Canadian business (except for storage, transportation);
  • Goods are owned by non-resident(s) who is not closely related[1] to you;
  • The goods are never consumed or used in Canada; and
  • The goods will be exported within four years of accounting for them.

To apply to the program, prepare an application letter requesting authorization to use the EOPS program and send it to the local Canada Revenue Agency (CRA) Tax Services Office.

Additional information you may need to provide with your application includes:

  • Agreement(s) showing goods were imported for processing services and were then re-exported
  • Documentation showing past patterns of importing goods to process and then re-export

When you apply for the EOPS Program, you can also apply for duty relief under the Duty Deferral Program. In this case, also complete Form K90, Duties Relief Application, and submit the form with the application letter to the local Canada Border Services Agency (CBSA) office, not tothe CRA.

The CBSA will review the K90 application form. It will also forward your application letter to your local CRA Tax Services Office for review. The CBSA will arrange a pre-audit to review internal controls for duty relief purposes and will consult with the local CRA Tax Services Office, who will conduct a field audit.

The applicant and local CBSA office will be advised in writing of applicant’s eligibility to participate in the program. If participation to the program is authorized, an EOPS authorization number will be issued, which must be disclosed when accounting for the non-taxable importation of goods under the program.

Please note that your authorization will be cancelled if you:

  • Did not / do not / will not meet program conditions (you may reapply)
  • Used authorization inappropriately

Cancellations will be notified in writing.

To renew authorization, reapply in writing to your nearest CRA Tax Services Office every three years, at least three months before expiry.

[1] Generally, where there is a degree of common ownership of at least 90 per cent.

Return to Foreign Trade Zones –The Exporters of Processing Services Program (EOPS)