Apply for a duty-free shop licence
The Canada Border Services Agency (CBSA) licenses duty-free shop operators who sell goods free of certain duty and taxes to travellers leaving Canada.
There are 50 duty-free shops at land border and international airport locations across Canada.
The CBSA ensures duty-free goods are properly accounted for and exported. The CBSA also maintains related regulations and policies and monitors duty-free shops to make sure they comply with government requirements.
Why you need a duty-free shop licence
A licence allows a duty-free shop operator to sell goods, free of certain duties and taxes, to travellers who must immediately export them from Canada. Other taxes, such as excise taxes, may apply.
This licence does not:
- have any monetary value
- guarantee the licence holder an income
- grant the licence holder privileges in other government programs that require their own licences, permits or contracts
How to qualify for a licence
To qualify for a land border duty-free shop, an applicant must:
- be a Canadian citizen or permanent resident, or be incorporated in Canada
- be of good character
- maintain a principle residence in Canada
- have resided in Canada for at least 183 days the year preceding the application
To qualify for an airport duty-free shop, the applicable airport authority must grant the applicant a lease.
Eligible duty-free shop locations
The CBSA only accepts applications for land border and airport locations.
The CBSA does not accept applications for marine and rail locations because they are not covered by the Duty Free Shop Regulations.
Eligibility requirements differ between land border crossings and airport locations.
More information
How to request a new duty-free shop location
If you're interested in opening a duty-free shop at a location without an existing shop, or where there is one but it has a limited range of goods, contact us at duty_free_shops-boutiques_hors_taxes@cbsa-asfc.gc.ca.
The CBSA will review the request and consider whether:
- it is able to provide services to the proposed location
- a shop at that location would block the flow of traffic
- there is a sufficient traffic volume to support the shop, based on traffic and passenger data
- an adequate range of goods and services is already provided, if a shop already exists at the proposed location
Land border location: Approval process
Once the CBSA approves a proposed location, we will launch a process to solicit applications for the licence to operate a duty-free shop there. Notifications will be shared via:
- a nationally published advertisement
- the Frontier Duty Free Association
The successful applicant will then need to apply for the licence.
Airport location: Approval process
The airport authority for each airport administers a tendering process to solicit lease applications. Find information about tendering processes on the airport authorities' websites.
Once a successful candidate has been selected, the candidate must submit a completed airport duty-free shop application to the CBSA.
How to apply for a licence
To apply for a duty-free shop licence:
- Complete a BSF664: Duty Free Shop Application/Amendment
- Prepare the application package (completed BSF664 form and supporting documents based on the location, land or airport)
- Send the application package through the CARM Client Portal
- Send certain documents by registered mail or courier, for security reasons
For details on how to put together an application package and the supporting documents to include, refer to Memorandum D4-3-2: Duty Free Shop – Licensing.
How long it will take to process your application
The CBSA aims to process applications within 90 calendar days of receiving a complete application package with all supporting documents.
Once you have sent your application in CARM, notify the CBSA's Registration Unit by email at duty_free_shops-boutiques_hors_taxes@cbsa-asfc.gc.ca. This will ensure the timely processing of your application.
After that, the CBSA will contact you through the CARM Client Portal. You should monitor your account for notifications to make sure there are no processing delays.
How to comply with licensing requirements
Know your responsibilities as a licence holder. Read the CBSA's detailed information about operating a duty-free shop:
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