Interpretation

1 The definitions in this section apply in this Order.

British country

British country means the United Kingdom of Great Britain and Northern Ireland, any British colony, possession or protectorate, or any territory under British trusteeship. (pays britannique)

Commonwealth developing country

Commonwealth developing country means a country listed in Schedule 1. (pays en voie de développement du Commonwealth)

Remission of Customs Duties

2 Subject to section 4, remission is hereby granted of the customs duties paid or payable on goods that are classified under a tariff item set out in column 1 of an item of schedules 2 to 6 of this Order at the rate of custom duty set out in respect of those goods in the column “Most-Favoured-Nation Tariff” of the list of Tariff Provisions set out in the schedule to the Customs Tariff, in an amount equal to the difference between the customs duty payable at that rate and

• (a) in the case of goods that are imported into Canada during the period beginning on January 1, 1998 and ending on December 31, 1999, and that are classified under a tariff item set out in column 1 of an item in Schedule 2, the customs duties that would have been payable if the rate of customs duty were the rate set out in column 2 of that item;

• (b) in the case of goods that are imported into Canada during the period beginning on January 1, 1998 and ending on July 31, 2000, and that are classified under a tariff item set out in column 1 of an item in Schedule 3, the customs duties that would have been payable if the rate of customs duty were the rate set out in column 2 of that item;

• (c) in the case of goods that are imported into Canada during the period beginning on January 1, 1998 and ending on December 31, 2002, and that are classified under a tariff item set out in column 1 of an item in Schedule 4, the customs duties that would have been payable if the rate of customs duty were the rate set out in column 2 of that item;

• (d) in the case of goods that are imported into Canada during the period beginning on January 1, 1998 and ending on December 31, 2003, and that are classified under a tariff item set out in column 1 of an item in Schedule 5, the customs duties that would have been payable if the rate of customs duty were the rate set out in column 2 of that item; or

• (e) in the case of goods that are imported into Canada during the period beginning on January 1, 2003 and ending on December 31, 2003, and that are classified under a tariff item set out in column 1 of an item in Schedule 6, the customs duties that would have been payable if the rate of customs duty were the rate set out in column 2 of that item.

Remission of Excise Taxes

3 Subject to section 4, remission is hereby granted of the taxes paid or payable under the Excise Tax Act on goods for which the customs duties are remitted under section 2, in an amount equal to the difference between

• (a) the amount of taxes paid or payable on the goods, and

• (b) the amount of taxes that would be payable in respect of the goods if the duty paid value used to calculate the taxes on the goods were reduced by the amount of the remission of customs duties granted under section 2.

Conditions

• 4 (1) Remission is granted under sections 2 and 3 on condition that

  • (a) not less than 50% of the cost of producing the goods was incurred by the industries of one or more Commonwealth developing countries or by the industries of Australia, New Zealand or Canada;

  • (b) the goods were finished in a Commonwealth developing country and were imported into Canada;

  • (c) proof of origin of the goods is given in accordance with the Customs Act;

  • (d) subject to section 5, the goods are shipped directly to Canada, with or without transhipment, from a Commonwealth developing country; and

  • (e) a claim for remission is made to the Minister of National Revenue within four years after the date of importation of the goods in respect of which remission is claimed.

• (2) In calculating the cost of production for the purpose of paragraph (1)(a), the following shall not be included:

  • (a) outside packing and expenses related to it, required for the transportation of the goods, not including packing in which the goods are ordinarily sold for consumption;

  • (b) gross profit of the manufacturer or exporter and the profit or remuneration of any trader, broker or other person dealing in the article in its finished manufactured condition;

  • (c) royalties;

  • (d) customs or excise duty or tax paid or payable on imported materials;

  • (e) carriage, insurance and other charges incurred to transfer the goods from the place of production or manufacture in the country of origin to the port of shipment; and

  • (f) any other costs or charges incurred or likely to be incurred after the completion of the manufacture of the goods.

5 Notwithstanding paragraph 4(1)(d), goods that originate in Lesotho, Botswana or Swaziland are deemed to be shipped directly to Canada from the country in which they originate if they are shipped directly on a through bill of lading from South Africa to a consignee in Canada with or without transhipment.

6 [Repealed, SOR/98-324, s. 3]

Coming into Force

7 This Order comes into force on January 1, 1998.