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Exported Motor Vehicles Drawback Regulations (SOR/96-34)

Regulations are current to 2024-10-14

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Exported Motor Vehicles Drawback Regulations

SOR/96-34

CUSTOMS TARIFF

Registration 1996-01-01

Regulations Respecting the Drawback of Duties Paid on Imported New Motor Vehicles, or on Imported Goods where they, or the Same Quantity of Domestic or Imported Goods of the Same Class, Are Used or Consumed in the Processing in Canada of New Motor Vehicles, where the New Vehicles Are Used Temporarily in Canada and Subsequently Exported

P.C. 1995-2242  1995-12-28

His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 100(5)Footnote * of the Customs TariffFootnote **, is pleased hereby to make the annexed Regulations respecting the drawback of duties paid on imported new motor vehicles, or on imported goods where they, or the same quantity of domestic or imported goods of the same class, are used or consumed in the processing in Canada of new motor vehicles, where the new vehicles are used temporarily in Canada and subsequently exported, effective on the day on which section 56 of An Act to amend the Customs Act and the Customs Tariff and to make related and consequential amendments to other Acts, being chapter 41 of the Statutes of Canada, 1995, comes into force.

Short Title

1 These Regulations may be cited as the Exported Motor Vehicles Drawback Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Customs Tariff; (Loi)

motor vehicle

motor vehicle means an automobile, motorcycle, motor bicycle, truck, motor bus or motor home, but does not include any truck that has a gross vehicle weight in excess of 4.5359 tonnes; (véhicule automobile)

purchaser

purchaser means a person who purchases a motor vehicle; (acheteur)

resident

resident means a person who is ordinarily resident in Canada. (résident)

Application

  • 3 (1) Subject to subsection (2), these Regulations apply in respect of the grant, under subsection 113(1) of the Act, of a drawback of the duties paid in respect of

    • (a) an imported motor vehicle that is subsequently exported;

    • (b) imported goods used in the processing in Canada of a motor vehicle that is subsequently exported;

    • (c) imported goods, other than goods described in the schedule, directly consumed or expended in the processing in Canada of a motor vehicle that is subsequently exported;

    • (d) imported goods, where the same quantity of domestic or imported goods of the same class is used in the processing in Canada of a motor vehicle that is subsequently exported; or

    • (e) imported goods, other than goods described in the schedule, where the same quantity of domestic or imported goods of the same class is directly consumed or expended in the processing in Canada of a motor vehicle that is subsequently exported.

  • (2) The drawback referred to in subsection (1) shall be granted only where the motor vehicle is sold to a purchaser in Canada before it is exported and it is, at the time of the sale, new.

  • SOR/98-62, s. 11

Persons Who May Claim

4 A drawback may be claimed by

  • (a) the importer of the motor vehicle or the person who sold the motor vehicle to the purchaser, in the case of an imported motor vehicle; or

  • (b) the processor of the motor vehicle, in the case of a motor vehicle processed in Canada.

Circumstances

5 An application for a drawback may be made where

  • (a) the motor vehicle is exported by the purchaser

    • (i) within 30 days after the date of its delivery to the purchaser, if the purchaser is a resident, or

    • (ii) within 12 months after the date of its delivery to the purchaser, if the purchaser is not a resident;

  • (b) before the motor vehicle is exported, it remains owned by the purchaser, it is used by the purchaser, and it is not used

    • (i) by any person other than the purchaser,

    • (ii) for carrying passengers or goods for compensation,

    • (iii) for the transport of goods for sale, or

    • (iv) for soliciting sales or subscriptions on behalf of a Canadian business;

  • (c) the motor vehicle was exported before the application is filed;

  • (d) in the case of imported goods referred to in paragraph 3(1)(d) or (e),

    • (i) the goods were used, consumed or expended in the same plant in Canada in which the domestic or imported goods of the same class were used, consumed or expended in the processing of the motor vehicle, and

    • (ii) the motor vehicle is exported within two years after the date that those imported goods were imported; and

  • (e) the applicant provides a waiver from all other persons entitled to claim a drawback, refund or remission of the duties, waiving their right to do so.

6 A drawback shall not be granted where the domestic or imported goods of the same class that are referred to in subparagraph 5(d)(i) are used, consumed or expended before the imported goods that are the subject of the application for a drawback are used, consumed or expended in the processing of the motor vehicle.

Goods of the Same Class

7 Domestic and imported goods shall be considered to be of the same class if the goods are so similar that they may be

  • (a) used interchangeably in the processing in Canada of a motor vehicle; or

  • (b) directly consumed or expended interchangeably in the processing in Canada of a motor vehicle.

SCHEDULE(Subsection 3(1))

Goods Not Subject to Drawback

  • 1 
    Fuel
  • 2 
    Plant equipment

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