Duties Relief Regulations (SOR/96-44)

Short Title

1 These Regulations may be cited as the Duties Relief Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Customs Tariff; (Loi)

beer

beer means beer or malt liquor as defined in section 4 of the Excise Act; (bière)

Minister

Ministermeans the Minister of National Revenue; (ministre)

textile fabric

textile fabric means textile fibre, glass fibre, textile fabric, glass fabric or other textile product that is of a stage between textile fibre and fabric that is composed exclusively of fibres that fall within a class set out in Schedule II. (tissus textiles)

Classes of Persons Who May Apply for Relief

3 An application for relief described in subsection 89(1) of the Act may be made by any person who is the importer or exporter of the imported or exported goods, or is the processor, owner or producer of those goods between the time of their direct shipment to Canada and their export or deemed export.

No Relief to Be Granted

4 Relief under subsection 89(1) of the Act may not be granted in respect of the imported goods described in that subsection where the exported goods described in that subsection are damaged before being exported.

5 For the purposes of paragraphs 89(1)(c) and (e) of the Act, relief may not be granted in respect of the goods described in Schedule I.

6 For the purposes of paragraphs 89(1)(d) and (e) of the Act, relief may not be granted in respect of the following goods:

• (a) spirits that are imported for use in the processing in Canada of spirits or that are directly consumed or expended in the processing in Canada of spirits;

• (b) goods that are imported for processing in Canada or are directly consumed or expended in the processing in Canada of other goods, where they are processed or directly consumed or expended after the same quantity of domestic or imported goods of the same class is processed or directly consumed or expended; and

• (c) imported goods, other than textile fabric, where the imported goods are processed or directly consumed or expended in a plant in Canada other than the plant in which the same quantity of domestic or imported goods of the same class is processed or directly consumed or expended.

Time Limits for Exportation

• 7 (1) Subject to subsection (2), the following goods must be exported within four years after the date on which the imported goods were released:

  • (a) goods described in paragraph 89(1)(a) or (b) of the Act on which duties are relieved; and

  • (b) goods, in the processing of which in Canada, goods described in paragraph 89(1)(c) of the Act on which duties are relieved are directly consumed or expended.

• (2) Spirits, wine or beer that are imported goods described in paragraph 89(1)(b) of the Act on which duties are relieved must be exported within five years after the date on which they were released.

• (3) For the purposes of paragraphs 89(1)(d) and (e) of the Act, the exported goods must be exported within two years after the date on which the imported goods on which duties are relieved were released.

Portion of Duties that May Be Relieved

8 Where the amount of duties otherwise payable in respect of imported textile fabric that is considered under section 10 to be of the same class as domestic textile fabric exceeds the amount of duties that would have been payable had the domestic textile fabric been imported, the portion of the duties so payable that may be relieved is the proportion that the amount that would have been so payable is of the amount that was payable.

Same Condition Processes

9 For the purposes of paragraph 89(1)(a) of the Act, goods are considered to be in the same condition in which they were imported after they

• (a) undergo any of the processes referred to in subparagraph (6)(b) of Article 2.5 of the Canada–United States–Mexico Agreement, if those processes do not materially alter the characteristics of the goods;

• (b) are used for

  • (i) display or demonstration, or

  • (ii) the development or production, other than as plant equipment, of goods to be exported; or

• (c) in the case of reusable containers, are used in the international transportation of goods.

Goods of the Same Class

• 10 (1) Subject to subsection (2), for the purposes of paragraphs 89(1)(d) and (e) of the Act, domestic or 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 of goods in Canada; or

  • (b) directly consumed or expended interchangeably in the processing in Canada of goods.

• (2) For the purposes of paragraphs 89(1)(d) and (e) of the Act, domestic and imported textile fabrics composed of different fibres shall be considered to be of the same class if the domestic and imported textile fabrics are composed of

  • (a) fibres that fall within one class set out in Schedule II; or

  • (b) fibres that do not fall within one class set out in Schedule II, if

    • (i) any particular class set out in that Schedule within which fall fibres of which the domestic textile fabric is composed

      • (A) is a class within which fall fibres of which the imported textile fabric is composed, or

      • (B) represents less than five per cent of the weight of the domestic textile fabric, and

    • (ii) the difference between the following proportions does not exceed 33 percentage points:

      • (A) the proportion, expressed as a percentage, that the aggregate weight of the fibres of which the domestic textile fabric is composed that fall within the particular class is of the weight of the domestic textile fabric, and

      • (B) the proportion, expressed as a percentage, that the aggregate weight of the fibres of which the imported textile fabric is composed that fall within that particular class is of the weight of the imported textile fabric.

Prescribed Classes of Ships, Aircraft and Telegraph Cable Ships

11 For the purposes of paragraph 89(3)(b) of the Act, the ships and aircraft described in Schedule III are prescribed as classes of ships and aircraft.

12 For the purposes of paragraph 89(3)(c) of the Act, the prescribed class of telegraph cable ships includes only those ships that are

• (a) registered in any country;

• (b) used exclusively for the laying and repairing of oceanic telegraph cables outside Canada; and

• (c) proceeding on an ocean voyage outside Canada.

Prescribed Use

13 For the purposes of paragraph 89(3)(g) of the Act, goods are used or destined for use where they

• (a) are purchased by the government of a country that is party to the Canada–United States–Mexico Agreement or its authorized agent, by a department of the Government of Canada, or by a Crown corporation named in Schedule II or Schedule III to the Financial Administration Act acting on behalf of the Government of Canada;

• (b) are for use solely and exclusively in conjunction with

  • (i) a project undertaken jointly by the Government of Canada and the government of a country that is party to the Canada–United States–Mexico Agreement, or

  • (ii) an undertaking, located in Canada, of the government of a country that is party to the Canada–United States–Mexico Agreement; and

• (c) are or will become the property of the government of a country that is party to the Canada–United States–Mexico Agreement.

Amendment of Certificate

14 The Minister may amend a certificate issued under subsection 90(1) of the Act where any of the information set out in the application for relief has changed.

Cancellation or Suspension of Certificate

15 The Minister may cancel a certificate issued under subsection 90(1) of the Act where the person to whom the certificate was issued

• (a) requests the Minister in writing to cancel the certificate;

• (b) is bankrupt;

• (c) is the subject of a receivership in respect of the person’s debts;

• (d) ceases to operate in Canada; or

• (e) fails to make representations in accordance with subsection 17(2).

16 The Minister may suspend or cancel a certificate issued under subsection 90(1) of the Act where the person to whom the certificate was issued

• (a) fails to comply with any Act of Parliament, or any regulation made pursuant to an Act of Parliament that prohibits, controls or regulates the importation or exportation of goods; or

• (b) has, in the use of the certificate, acted dishonestly in business dealings with Her Majesty or servants of Her Majesty.

• 17 (1) The Minister shall, immediately after suspending a certificate, give the certificate holder notice confirming the suspension and providing all relevant information concerning the grounds on which the Minister suspended the certificate.

• (2) The certificate holder may, within 30 days after the day on which the certificate is suspended, make representations to the Minister regarding why the certificate should be reinstated.

• (3) The Minister shall, before cancelling a certificate, except in the case of a cancellation under section 15 or a cancellation subsequent to a suspension under section 16, give the certificate holder

  • (a) 30 days notice of the proposed cancellation; and

  • (b) all relevant information concerning the grounds on which the Minister proposes to cancel the certificate.

• (4) The certificate holder may, within 15 days after the day on which the notice referred to in subsection (3) is given, make representations to the Minister regarding why the certificate should not be cancelled.

Reinstatement of Certificate

18 The Minister may reinstate a certificate suspended under section 16 where the cause for the suspension no longer exists.

Manner of Reporting Exports to a Country that is Party to the Canada–United States–Mexico Agreement

• 19 (1) For the purposes of paragraph 95(1)(a) of the Act, the person who exports the goods shall report to an officer at a customs office by providing the evidence described in section 93 of the Act.

• (2) For the purposes of paragraph 98(1)(a) of the Act, the person who exports the goods shall report to an officer at a customs office by providing a written declaration of the amount of duties that was relieved.

Satisfactory Proof of Exportation

20 For the purposes of section 101 of the Act, an application shall be accompanied by proof of export in the form of

• (a) a customs document presented to an officer of the customs administration of the country where the repair, addition of equipment or work was performed respecting the importation of the goods into that country;

• (b) a document of a transportation company respecting the exportation of the goods;

• (c) a written statement made by the exporter in the country where the work was performed stating that the goods exported to Canada are the goods that were imported into that country for repair, the addition of equipment or work; or

• (d) other documentation that establishes that the goods were exported.