Request for Removal of Customs Duty on Chemical...

October 21, 2004

21 October 2004

Request for Removal of Customs Duty on Chemical and Biological Compounds and Test Articles

The Department of Finance has received a request for the removal of the customs duty on chemical and biological compounds and test articles imported solely for the purpose of conducting research.

The companies that would benefit from duty relief in this instance are Contract Research Organizations (CROs) that do not produce a product of their own. Rather, these organizations conduct research studies on a contractual basis with independent pharmaceutical and biotechnology companies from around the world. These contracts typically involve in-vitro and in-vivo pre-clinical research to meet the requirements of worldwide regulatory authorities for administration of new drug candidates to humans in controlled clinical trials and eventual registration. At the conclusion of a study, a report is issued by the CRO to the sponsoring company detailing the results of the requested research. Usually, the compounds and test articles are fully used during the course of the research but, if they are not, the unused material is either destroyed or returned to the client company.

The research conducted by the CROs in question does not fall within the range of programs accredited by the Standards Council of Canada and, as a result, the imported compounds and test articles do not qualify for classification under the duty-free provisions of tariff item No. 9993.00.00 (goods imported for certification) of the Customs Tariff.

Members with an interest in this matter are asked to contact Dean Steadman, Senior Economist in the International Trade Policy Division, by November 19, 2004. Mr. Steadman can be reached by telephone at (613) 947-4508 or by facsimile at (613) 992-6761.


Topic(s): 
Canadian Economy & Politics
Information Source: 
Global Affairs Canada (GAC)
Document Type: 
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