• 3. (1) Subject to sections 8 and 10, in the case of a vessel that is temporarily imported for use in Canadian customs waters, the customs duty on the vessel shall be reduced or removed in accordance with section 4, 5 or 6 for a period not exceeding twelve consecutive months.

• (2) Subject to sections 8 and 10, where the vessel referred to in subsection (1) remains in Canadian customs waters on the expiration of the period for which the customs duty is reduced or removed, the customs duty on the vessel shall be reduced or removed in accordance with section 4, 5 or 6 for an additional period or periods not exceeding 12 consecutive months.

4. With the exception of the removal of customs duty in accordance with section 5 or 6, the reduction of customs duty on a vessel shall be an amount equal to the difference between

• (a) the customs duty on the vessel; and

• (b) the customs duty on 1/120 of the value for duty of the vessel for each month or part of a month during which the vessel remains in Canadian customs waters.

5. In the case of a cruise ship, the customs duty on the vessel shall be removed.

6. In the case of a vessel used to transport cargo between a point in Canada west of the meridian of longitude ninety-five degrees and a point in Canada east of the meridian of longitude ninety-five degrees, with the exception of movements between points in Canada north of the meridian of latitude sixty degrees, the customs duty on the vessel shall be removed.

• 7. (1) Subject to sections 9 and 10, in the case of a vessel that is placed in storage in a Canadian port facility, the customs duty on the vessel shall be removed for a period not exceeding 12 consecutive months.

• (2) Subject to sections 8 and 10, where the vessel referred to in subsection (1) remains in Canadian customs waters on the expiration of the period for which the customs duty is removed, the customs duty on the vessel shall be removed in accordance with section 4, 5 or 6 for an additional period or periods not exceeding 12 consecutive months.

8. The reduction or removal of customs duty under section 3 shall be granted on condition that,

• (a) in the case of a vessel that is not a duty-paid Canadian-registered vessel, no suitable duty-paid or domestically built Canadian-registered vessel is available to perform the service specified in the application referred to in paragraph 10(a);

• (b) in the case of a vessel that is not a duty-paid foreign-registered vessel, no suitable Canadian-registered vessel is available to perform the service specified in the application referred to in paragraph 10(a).