Railway Rolling Stock (Canadian Manufactured) Remission Order, No. 1 (C.R.C., c. 780)

Short Title

1 This Order may be cited as the Railway Rolling Stock (Canadian Manufactured) Remission Order, No. 1.

Interpretation

2 In this Order

Minister

Minister means the Minister of National Revenue; (ministre)

railway rolling stock

railway rolling stock means railway passenger, baggage and freight cars manufactured in Canada and purchased during the period January 1, 1969 to December 31, 1985 by Canadian companies for use in international service. (matériel roulant de chemin de fer)

Grant of Remission

3 Subject to this Order, remission is hereby granted of the customs duty paid in respect of

• (a) imported articles and materials used in the manufacture of, wrought into or attached to railway rolling stock;

• (b) imported materials, other than fuel or plant equipment, directly consumed in the manufacture or production of railway rolling stock; and

• (c) imported articles and materials, other than fuel or plant equipment, in quantity sufficient to produce railway rolling stock, where

  • (i) domestic articles and materials of the same class are used or directly consumed in the manufacture of, wrought into or attached to the railway rolling stock, and

  • (ii) those imported articles and materials were used in the plant producing the railway rolling stock during the 12-month period immediately preceding the production of the railway rolling stock.

Conditions

• 4 (1) Remission granted under section 3 shall be paid to a manufacturer of railway rolling stock if

  • (a) a claim for remission is made to the Minister subsequent to the date the railway rolling stock entered international service;

  • (b) the customs duty on the articles and materials in respect of which the claim referred to in paragraph (a) is made was paid within the four year period immediately preceding the date on which the claim for remission was filed; and

  • (c) the manufacturer provides to the Minister such information in such form and manner as may be required by the Minister for the administration of this Order.

• (2) Paragraph (1)(b) applies to all customs duty paid on or after April 1, 1981.

Reduction of Remission

5 Where imported articles or materials enter into a process of manufacture that results in the production of a by-product, the remission payable under this Order in respect of the articles or materials shall be reduced by the same proportion that the value of the by-product bears to the total value of all production from the articles or materials.

6 Where imported articles or materials referred to in section 3 enter into a process of manufacture that results in the production of merchantable scrap or waste, the remission payable under this Order in respect of the articles or materials shall be reduced by a sum to be arrived at by applying to the Canadian sales value of the merchantable scrap or waste the prevailing rates of customs duty on merchantable scrap or waste of the same kind when imported as such.

7 Notwithstanding section 6, no reduction referred to therein resulting from the production of merchantable scrap or waste shall be calculated on higher rates of customs duty than were paid on the imported articles or materials from which the scrap or waste was derived.

Repayment of Remission

8 Where, at any time within 10 years of the date that any railway rolling stock in respect of which remission is granted under this Order enters international service, that rolling stock is removed from that service and placed in domestic service in Canada for a period of more than 90 days in any calendar year, the manufacturer of the rolling stock shall repay to the Crown the entire amount of the remission so granted.