Duty Free Shop Regulations

3 (1) For the purposes of section 24 of the Act and subject to subsection (6), a licence may be issued to any qualified person who makes an application in accordance with subsection (2) and who gives the security required under section 4.

(2) The person must submit the application for a licence in the prescribed form by means of the electronic system specified by the Minister.

(3) A corporation is qualified to operate a duty free shop at a border crossing point if

• (a) the corporation is incorporated in Canada;

• (b) all the shares of the corporation are beneficially owned by

  • (i) a Canadian citizen or permanent resident,

  • (ii) another corporation that is incorporated in Canada all of whose shares are beneficially owned by a Canadian citizen or permanent resident, or

  • (iii) both a Canadian citizen or permanent resident and that other corporation; and

• (c) the Canadian citizen or permanent resident referred to in paragraph (b)

  • (i) is of good character,

  • (ii) maintains their principal residence in Canada, and

  • (iii) resided in Canada for at least 183 days of the year before the year in which the corporation makes the application for the licence.

(4) A person other than a corporation is qualified to operate a duty free shop at a border crossing point if the person

• (a) is a Canadian citizen or a permanent resident;

• (b) is of good character;

• (c) maintains his principal residence in Canada; and

• (d) resided in Canada for at least 183 days of the year preceding the year in which the person makes the application for the licence.

(5) A person is qualified to operate a duty free shop at an airport or at a border crossing point if the person has been granted a lease or other right to occupy the place proposed as the duty free shop.

(6) The Minister shall not issue a licence to an applicant unless

• (a) the applicant meets the qualifications referred to in subsection (3) or (4) and subsection (5) in the case of a duty free shop at a border crossing point, or subsection (5) in the case of a duty free shop at an airport;

• (b) [Repealed, SOR/96-153, s. 2]

• (c) [Repealed, SOR/2019-259, s. 1]

• (d) [Repealed, SOR/2019-259, s. 1]

• (e) an adequate range of goods is not available in, or adequate service is not provided by, any duty free shop already located in the area in which the proposed duty free shop is to be located;

• (f) the establishment of a duty free shop will not impede the flow of traffic in the vicinity in which the proposed duty free shop is to be located; and

• (g) the Agency is able to provide customs services with respect to the proposed duty free shop.

(7) [Repealed, SOR/96-153, s. 2]