Duty Free Shop Regulations

4 (1) An applicant shall, before a licence is issued to him, give security in an amount that is determined by the Minister, but in no case shall the amount of security be less than $10,000.

(2) The Minister may at any time require a licensee to increase the amount of security given under subsection (1) to an amount sufficient to ensure the payment of any duties payable in respect of the goods in the duty free shop.

(3) The security given under subsection (1) shall be deposited with the chief officer of customs and shall be in the form of

• (a) cash;

• (b) a certified cheque;

• (c) a transferable bond issued by the Government of Canada; or

• (d) a bond issued by

  • (i) a company that is registered and holds a certificate of registry to carry on the fidelity or surety class of insurance business and that is approved by the President of the Treasury Board as a company whose bonds may be accepted by the Government of Canada,

  • (ii) a member of the Canadian Payments Association referred to in section 4 of the Canadian Payments Association Act,

  • (iii) a corporation that accepts deposits insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépôts du Québec to the maximum amounts permitted by the statutes under which those institutions were established,

  • (iv) a credit union as defined in subsection 137(6) of the Income Tax Act, or

  • (v) a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by Her Majesty in right of a province.