Abatement of Duties Payable Regulations (SOR/86-946)

Regulations are current to 2014-04-02

Abatement of Duties Payable Regulations

SOR/86-946

CUSTOMS ACT

Registration 1986-09-11

Regulations Respecting the Abatement of Duties on Imported Goods that Have Suffered Damage, Deterioration or Destruction or a Loss in Volume or Weight

P.C. 1986-2067 1986-09-11

Whereas a copy of proposed regulations, substantially in the form annexed hereto, was published in Part I of the Canada Gazette on March 15, 1986 and a reasonable opportunity was thereby afforded to interested persons to make representations with respect thereto to the Minister of National Revenue;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 75(1) and section 81 of the Customs ActFootnote *, is pleased hereby to make the annexed Regulations respecting the abatement of duties on imported goods that have suffered damage, deterioration or destruction or a loss in volume or weight, effective on the coming into force of subsection 75(1) and section 81 of the Customs ActFootnote *.

SHORT TITLE

 These Regulations may be cited as the Abatement of Duties Payable Regulations.

INTERPRETATION

 In these Regulations,

“Act”

“Act” means the Customs Act; (Loi)

“qualified appraiser”

“qualified appraiser” means a person who, in relation to any goods, is qualified by virtue of his business, occupation or profession to appraise those goods and to appraise the loss in value thereto where the goods have suffered damage, deterioration or destruction. (appréciateur qualifié)

DETERMINATION OF AMOUNT OF ABATEMENT

  •  (1) The amount of an abatement of duties that may be granted on imported goods that have suffered damage, deterioration or destruction from the time of shipment to Canada to the time of release shall be

    • (a) in the case of perishable goods or brittle goods such as crockery, china, glass and glassware, an amount equal to that proportion of the duties otherwise payable on the goods that 85 per cent of the loss in value of the goods is of the value for duty of the goods;

    • (b) in the case of sugar or any other saccharine product on which duty is determined according to the polarimetric test and that has suffered damage or deterioration from salt water, an amount equal to the difference between

      • (i) the duties otherwise payable on the goods, and

      • (ii) the duties that would be payable on the goods if, after the percentage of polarization of the goods is determined, there is deducted from that percentage an amount equal to five times the percentage of salt present in that portion of the water found in the damaged goods that is in excess of the water found in samples of undamaged goods, as certified by an officer authorized to test such samples; and

    • (c) in the case of any other goods, an amount equal to that proportion of the duties otherwise payable on the goods that the loss in value of the goods is of the value for duty of the goods.

  • (2) The determination of the loss in value of goods shall be made by a qualified appraiser.

  •  (1) Subject to subsection (2), the amount of an abatement of duties that may be granted on imported bulk wines and spirits that have suffered a loss in volume or weight arising from natural causes while in a bonded warehouse shall be an amount equal to that proportion of the duties otherwise payable on the goods that the loss in volume or weight is of the volume or weight of the goods when originally warehoused.

  • (2) No abatement of duties shall be granted under subsection (1) in respect of any loss in volume or weight in excess of one sixth of one per cent of the original volume or weight multiplied by the number of months that have elapsed since the date of original warehousing or eight per cent of the original volume or weight, whichever is the lesser.

ABATEMENT NOT TO BE GRANTED

 No abatement of duties shall be granted in respect of

  • (a) goods for which there is a manufacturer’s or producer’s recommended shelf life period or allowable storage-before-use period if the goods have suffered damage or deterioration by reason of the expiration of that period;

  • (b) iron or steel or any manufacture thereof that has suffered damage or deterioration by reason of rust; or

  • (c) packages of liquids that have suffered damage or deterioration, where the damage or deterioration is confined to the package and does not extend to the liquid contents thereof.