Front End Wheel Loader Remission Order (SI/80-176)

Regulations are current to 2017-11-20

Application

  •  (1) This Order applies to a manufacturer who, in any twelve month period ending on July 31 after 1981, imports front end wheel loaders or parts and produces front end wheel loaders in Canada.

  • (2) Remission may be granted to a manufacturer referred to in subsection (1) in respect of a period described therein only where

    • (a) the ratio of the net sales value of front end wheel loaders produced by the manufacturer in Canada at any time and sold by him anywhere in that period to the net sales value of all front end wheel loaders sold by the manufacturer in that period for consumption in Canada is not less than 75 to 100; and

    • (b) subject to subsection (3), the sum of

      • (i) the Canadian value added of front end wheel loaders produced in Canada by the manufacturer in that period,

      • (ii) the Canadian value added of parts produced in Canada at any time by the manufacturer and sold by him in that period, and

      • (iii) the Canadian value added of parts produced in Canada at any time and acquired by or on behalf of the manufacturer in that period,

      is not less than 40 per cent of the cost of sales of all front end wheel loaders that the manufacturer sold for consumption in Canada in that period.

  • (3) For any twelve month period ending on July 31 after 1987, where a manufacturer fails to meet the 40 per cent requirement described in paragraph (2)(b) in order to be eligible for remission, the required percentage of Canadian value added is reduced by two percentage points for each 100 per cent increase of the dollar amount of Canadian value added in the production of front end wheel loaders by the manufacturer over and above the dollar amount of Canadian value added in the twelve month period ending July 31, 1983.

  • (4) For the purposes of this section, in computing the net sales value of front end wheel loaders that were sold for consumption in Canada by a manufacturer in any twelve month period ending on July 31 after 1981, the manufacturer shall deduct an amount equal to the net sales value of front end wheel loaders that were imported and sold by the manufacturer in any such period

    • (a) that are exempt from customs duties under the Customs Tariff;

    • (b) that are subsequently exported from Canada;

    • (c) for which no claim for remission is made pursuant to section 7; or

    • (d) in respect of which the total customs duties under the Customs Tariff are paid and for which there has been no remission.

  • (5) For the purposes of this section, in computing the cost of sales of front end wheel loaders that were sold for consumption in Canada by a manufacturer in any twelve month period ending on July 31 after 1981, the manufacturer shall deduct an amount equal to the cost of sales of front end wheel loaders that were imported and sold by the manufacturer in any such period

    • (a) that are exempt from customs duties under the Customs Tariff;

    • (b) that are subsequently exported from Canada;

    • (c) for which no claim for remission is made pursuant to section 7; or

    • (d) in respect of which the total customs duties under the Customs Tariff are paid and for which there has been no remission.

  • SI/88-17, s. 2;
  • SI/89-5, s. 1;
  • SI/95-82, s. 1.

Remission of Customs Duties

[SI/88-17, s. 2(E)]
  •  (1) Subject to section 7, remission is hereby granted of the customs duties paid or payable under the Customs Tariff on the following goods imported or taken out of warehouse prior to January 1, 1998 by the manufacturer or on the manufacturer’s behalf:

    • (a) front end wheel loaders, and

    • (b) parts, except pneumatic tires, tubes, buckets, digging teeth, cutting edges, cabs and roll-over protection structures

    that were or are imported or taken out of warehouse by a manufacturer for consumption or released after July 31, 1981.

  • (2) For the purposes of this section, where a manufacturer, in any twelve month period ending on July 31 after 1987, fails to achieve the percentage of Canadian value added required under subsection 4(2) or (3), the remission granted under subsection (1) shall be reduced by two per cent for each percentage point that the manufacturer’s Canadian value added is less than the Canadian value added required under subsection 4(3).

  • SI/88-17, s. 2;
  • SI/89-5, s. 2;
  • SI/98-6, s. 12.

Remission of Sales Tax

 Remission is hereby granted of the sales tax paid or payable under the Excise Tax Act on each front end wheel loader for which customs duties are remitted by this Order in an amount equal to the difference between the sales tax calculated on the duty-paid value of the front end wheel loader and the sales tax calculated on the value for duty of the front end wheel loader.

  • SI/88-17, s. 2(E).

Claim for Remission

 No remission shall be granted under this Order unless a claim therefor is made to the Minister of National Revenue within three years of the date of importation.

Designation

 Where

  • (a) a manufacturer has, by notice in writing to the Minister of National Revenue accompanied by the consent in writing of any related person, designated that person as a person associated with the manufacturer in the production of front end wheel loaders in Canada in a period ending on July 31 of the year specified in the notice, and

  • (b) the designation referred to in paragraph (a) has been approved by the Minister of Regional Industrial Expansion on or before a day not later than the 30th day after the commencement of the period referred to in that paragraph,

that person so designated shall, with respect to the importation of front end wheel loaders and sale of front end wheel loaders, be deemed for the purposes of this Order in that period not to be a separate person but to be one and the same person as the manufacturer.

  • SI/89-5, s. 3.

Reports

 A manufacturer shall submit to the Minister of National Revenue, as a condition of any remission granted under section 5 or 6, such reports as may be required by that Minister respecting the production and sales by the manufacturer of front end wheel loaders.

  • SI/89-5, s. 4.
 
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