Vessel Duties Reduction or Removal Regulations (SOR/90-304)

Regulations are current to 2014-08-05

REDUCTION OR REMOVAL OF CUSTOMS DUTY ON REPAIRED OR MODIFIED VESSELS

[SOR/98-28, s. 10(E)]

 Subject to section 18, the reduction or removal of customs duty, as determined in accordance with section 13, 14, 15, 16 or 17, is granted on a Canadian-built or duty-paid vessel that returns to Canadian customs waters after having had repairs or modifications done abroad, except for a vessel that was exported for the purpose of repair or modification.

  • SOR/98-28, s. 10(E).

REDUCTION OF CUSTOMS DUTY ON REPAIRS WITHIN 12 MONTHS

[SOR/98-28, s. 10(E)]

 In the case of a vessel that returns to Canadian customs waters within 12 months after having had repairs done abroad, where the repairs were done during the course of the vessel’s operations abroad, except for a vessel having had repairs done in accordance with section 15, the reduction of customs duty on the vessel shall be equal to the difference between

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

  • (b) an amount calculated by applying the same rate of customs duty as would be applied to determine the customs duty on the vessel to the value of the repairs done to the vessel.

  • SOR/98-28, s. 10(E).

REDUCTION OF CUSTOMS DUTY ON MODIFICATIONS WITHIN THREE YEARS

[SOR/98-28, s. 10(E)]

 In the case of a vessel that returns to Canadian customs waters within three years after having had modifications done abroad, where such modifications were done during the course of the vessel’s operations abroad, the reduction of customs duty on the vessel shall be equal to the difference between

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

  • (b) an amount calculated by applying the same rate of customs duty as would be applied to determine the customs duty on the vessel, to the value of the modifications done to the vessel.

  • SOR/98-28, s. 10(E).

REMOVAL OF CUSTOMS DUTY ON ESSENTIAL REPAIRS

[SOR/98-28, s. 10(E)]

 In the case of a vessel that returns to Canadian customs waters after having had repairs done abroad, where the repairs resulted from an unforeseen contingency that occurred outside Canadian customs waters and were necessary to ensure the seaworthiness or safety of the vessel, or to enable the vessel to safely reach its port of destination or return to Canadian customs waters, the customs duty on the vessel shall be removed.

  • SOR/98-28, s. 10(E).

REMOVAL OF CUSTOMS DUTY ON REPAIRS OVER 12 MONTHS

[SOR/98-28, s. 10(E)]

 In the case of a vessel that returns to Canadian customs waters more than 12 months after having had repairs done abroad, the customs duty on the vessel shall be removed, provided the vessel has not returned to Canadian customs waters in the interim.

  • SOR/98-28, s. 10(E).

REMOVAL OF CUSTOMS DUTY ON MODIFICATIONS OVER THREE YEARS

[SOR/98-28, s. 10(E)]

 In the case of a vessel that returns to Canadian customs waters more than three years after having had modifications done abroad, the customs duty on the vessel shall be removed, provided the vessel has not returned to Canadian customs waters in the interim.

  • SOR/98-28, s. 10(E).

CONDITIONS FOR CUSTOMS DUTY REDUCTION OR REMOVAL ON REPAIRED OR MODIFIED VESSELS

[SOR/98-28, s. 10(E)]

 The reduction or removal of customs duty under section 12 shall be granted on condition that

  • (a) all repairs or modifications are reported to the Minister on the return of the vessel in Canadian customs waters;

  • (b) the owners or operators of the vessel provide, in accordance with the request of the Minister, any invoice, work order log, report or other information relevant to the repair or modification of the vessel abroad; and

  • (c) any application for a reduction or removal of customs duty is made to the Minister within two years after the date the vessel returns to Canadian customs waters.

  • SOR/98-28, s. 10(E).