Non-Taxable Imported Goods (GST/HST) Regulations (SOR/91-31)

1 [Repealed, SOR/2002-277, s. 12]

Interpretation

2 In these Regulations,

Act

Act means the Excise Tax Act; (Loi)

officer

officer means an officer within the meaning of the Customs Act. (agent)

qualifying vehicle

qualifying vehicle means a vehicle (other than a racing car described in heading No. 87.03 of the List of Tariff Provisions set out in the schedule to the Customs Tariff) registered under the laws of a foreign jurisdiction relating to the registration of motor vehicles that

• (a) is described in any of heading No. 87.02, subheading Nos. 8703.21 to 8703.90, 8704.21, 8704.31, 8704.90 and 8711.20 to 8711.90 and tariff item Nos. 8716.39.30 and 8716.39.90 of that List,

• (b) is described in subheading No. 8704.22 or 8704.32 of that List and has a gross vehicle weight rating (as defined in subsection 2(1) of the Motor Vehicle Safety Regulations) not exceeding 10 tonnes, or

• (c) is described in tariff item No. 8716.10.00 of that List and is a vehicle for camping. (véhicule admissible)

tax-relieved supply

tax-relieved supply means a supply of goods

• (a) included in Part V of Schedule VI to the Act;

• (b) in respect of which the recipient was entitled to claim a rebate under subsection 252(1) or 260(1) of the Act; or

• (c) made outside Canada, except if the recipient subsequently imported the goods and it is the case that all of the following do not apply in respect of that importation of the goods:

  • (i) tax under section 212 of the Act was payable and was calculated on a value determined under the Value of Imported Goods (GST/HST) Regulations (other than under sections 7, 8, 12 and 13 of those Regulations),

  • (ii) tax under section 212 of the Act was payable by a person that was entitled to obtain a rebate, refund or remission of that tax under any Act of Parliament only because the goods were subsequently exported, and

  • (iii) tax under section 212 of the Act was not payable as a consequence of section 213 of the Act only because the goods were subsequently exported. (fourniture dégrevée)

Prescribed Goods and Circumstances

3 For the purposes of section 8 of Schedule VII to the Act, the following goods and circumstances are prescribed:

• (a) precious metals imported under any circumstances;

• (b) unwrought silver, gold or platinum, waste and scrap of precious metal or of metal clad with precious metal, and concentrates of silver, gold or platinum, where imported for the purpose of being refined into precious metals;

• (c) goods imported for the sole purpose of public exhibit by a public sector body, where, while the goods are in Canada,

  • (i) title to the goods is not intended to pass and does not pass to a person in Canada, and

  • (ii) beneficial use of the goods is not intended to pass and does not pass to a person in Canada that is not a public sector body;

• (d) goods imported for the sole purpose of maintenance, overhaul or repair of those goods in Canada, where

  • (i) neither title to nor beneficial use of the goods is intended to pass, or passes, to a person in Canada while the goods are in Canada, and

  • (ii) the goods are exported as soon after the maintenance, overhaul or repair is completed as is reasonable having regard to the circumstances surrounding the importation and, where applicable, to the normal business practice of the importer;

• (e) crude oil where

  • (i) imported for the sole purpose of being refined in Canada,

  • (ii) title to the crude oil is not held by a person in Canada at the time of importation,

  • (iii) title to the crude oil is not intended to pass and does not pass to a person in Canada while the crude oil is in Canada,

  • (iv) title to all refined products produced from the crude oil is not intended to pass and does not pass to a person in Canada while the refined products are in Canada, and

  • (v) the refined product is exported as soon after the refining is completed as is reasonable having regard to the circumstances surrounding the importation and, where applicable, to the normal business practice of the importer;

• (f) foreign-based conveyances where

  • (i) the conveyance is non-taxable by reason of the reference to heading No. 98.01 of Schedule I to the Customs Tariff in section 1 of Schedule VII to the Act, and the conveyance is diverted for maintenance, overhaul or repair in Canada,

  • (ii) neither title to nor beneficial use of the conveyance is intended to pass, or passes, to a person in Canada while the conveyance is in Canada, and

  • (iii) the conveyance is exported as soon after the maintenance, overhaul or repair is completed as is reasonable having regard to the circumstances surrounding the importation and, where applicable, to the normal business practice of the importer;

• (g) a print, an etching, a drawing, a painting, a sculpture or other similar work of art where

  • (i) the work is part of a shipment of imported art on consignment and the total value of the shipment, determined in accordance with section 215 of the Act, is at least $250,000,

  • (ii) at the time of importation, having regard to previous experience, if any, of the importer in importing works of art, it is reasonable to expect that at least 75%, in value, of the shipment will be exported within one year after the importation,

  • (iii) the work is imported for the purpose of supply by the importer in the ordinary course of the importer’s business, and

  • (iv) the importer provides a declaration pursuant to section 4;

• (h) locomotives, railway rolling stock and vessels imported in circumstances where customs duties have been remitted or removed under

  • (i) Railway Rolling Stock (International Service) Remission Order No. 3,

  • (ii) code 2338 of Schedule II to the Customs Tariff,

  • (iii) Railway Rolling Stock (International Service) Remission Order No. 4, or

  • (iv) [Repealed, SOR/2014-248, s. 7]

  • (v) section 5, 6, 7, 15, 16 or 17 of the Vessel Duties Reduction or Removal Regulations;

• (h.1) railway passenger, baggage or freight cars (in this paragraph referred to as “imported cars”) if

  • (i) the imported cars are imported temporarily for use in the transportation of passengers, baggage or freight from a place in Canada to another place in Canada,

  • (ii) railway cars of the same kind and number as the imported cars could not have been acquired from Canadian production or other Canadian sources at a reasonable cost or could not have been delivered or made available in Canada when needed, and

  • (iii) the imported cars are exported on or before the earlier of

    • (A) the day that is one year after the day on which the imported cars are imported, and

    • (B) the day on or before which railway cars of the same kind and number as the imported cars could be delivered or made available in Canada after having been acquired from Canadian production or other Canadian sources at a reasonable cost;

• (i) goods described in the following items of the schedule to the Temporary Importation Regulations imported in circumstances where the terms and conditions of those Regulations are met, namely,

  • (i) items 3, 16 to 18, 27, 32, 33, 36, 39 to 44, 49, 52 to 54 and 57, and

  • (ii) items 38 and 47, when the goods are imported by a non-resident person;

• (j) goods imported after having been exported for warranty repair work;

• (j.1) a representational gift that is an article

  • (i) that is presented by a donor acting in the capacity as a Head of State, Head of Government or representative of a government, a public body of a foreign country or a political subdivision of a foreign country, to a donee acting in the capacity of the Governor General, the Prime Minister of Canada, a minister of the Government of Canada, a member of the Senate or House of Commons, a provincial premier or a municipal mayor, in the course of an official visit by the donee outside Canada, or

  • (ii) that is to be presented by a donor described in subparagraph (i) in the course of an official visit by the donor to Canada and that is subsequently so presented;

• (k) medals, trophies, plaques or other similar articles to be presented by the importer at awards ceremonies;

• (l) goods enumerated in code 1910 of Schedule II to the Customs Tariff where the goods are imported in circumstances that meet the requirements of that code;

• (m) a qualifying vehicle that is imported temporarily by an individual resident in Canada and not accounted for as a commercial good (as defined in subsection 212.1(1) of the Act) under section 32 of the Customs Act if

  • (i) the qualifying vehicle was last supplied in the course of a vehicle rental business to the individual by way of lease, licence or similar arrangement under which continuous possession or use of the qualifying vehicle is provided for a period of less than 180 days,

  • (ii) immediately before the importation, the individual was outside Canada for an uninterrupted period of at least 48 hours, and

  • (iii) the qualifying vehicle is exported within 30 days after the importation; and

• (n) goods that are classified under tariff item No. 9813.00.00 or 9814.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff, or that would be so classified in the absence of paragraphs (a) and (b) of those tariff items, if

  • (i) in the case where the goods are being imported for the first time since the goods were last supplied and delivered or made available to the recipient of that last supply,

    • (A) the supply of the goods was not a tax-relieved supply

    • (B) the supply of the goods was made by way of sale by a supplier that did not acquire the goods by way of a tax-relieved supply and the recipient is returning the goods to the supplier because

      • (I) under the agreement for the supply, or as a consequence of the termination of that agreement, ownership of the goods is never transferred to the recipient or is transferred back to the supplier,

      • (II) the goods are defective or not as ordered by the recipient, or

      • (III) the recipient exported the goods for sale and did not sell the goods, or

    • (C) the supply was made outside Canada by way of lease, licence or similar arrangement by the importer of the goods and the importer

      • (I) did not acquire the goods by way of a tax-relieved supply,

      • (II) exported the goods at a time when the importer was the owner of the goods for the sole purpose of making the supply, and

      • (II) is importing the goods after the termination of the lease, licence or similar arrangement, and

  • (ii) in any other case, the goods were either not imported previously or it is the case that all of the following do not apply in respect of the last importation of the goods:

    • (A) tax under section 212 of the Act was payable and was calculated on a value determined under the Value of Imported Goods (GST/HST) Regulations (other than under sections 7, 8, 12 and 13 of those Regulations),

    • (B) tax under section 212 of the Act was payable by a person that was entitled to obtain a rebate, refund or remission of that tax under any Act of Parliament only because the goods were subsequently exported, and

    • (C) tax under section 212 of the Act was not payable as a consequence of section 213 of the Act only because the goods were subsequently exported.

Documentation

4 An importer of goods prescribed by paragraph 3(g) shall, at the time of accounting for the goods in accordance with section 32 of the Customs Act, attach to or endorse on the accounting document the following declaration, signed and dated:

“I hereby declare that it is my expectation that at least 75%, in value, of the works of art in this shipment will be exported within one year after this date.

(Signed)

(Dated)”

• 5 (1) An importer of goods prescribed by paragraph 3(j) shall, at the time of accounting for the goods under section 32 of the Customs Act, attach to the accounting document

  • (a) except where subsection (2) applies, a copy of the export report in respect of the goods; and

  • (b) an invoice or written statement from the supplier of the goods showing that, excluding shipping charges, communication expenses and other non-repair expenses, the cost of the warranty repair to the goods was borne by the supplier under the terms of a warranty.

• (2) Where the export report referred to in paragraph (1)(a) is unavailable due to circumstances beyond the control of the importer, the importer shall provide

  • (a) a Canada customs document proving the exportation of the goods in accordance with the Customs Act;

  • (b) a transportation company document respecting the exportation of the goods;

  • (c) a customs accounting document respecting the importation of the goods into the country where the warranty repair work was performed;

  • (d) a declaration made by the foreign exporter that the goods exported to Canada are the goods that were exported from Canada for warranty repair; or

  • (e) other evidence satisfactory to the Minister showing that the goods had been exported from Canada.

Notification

6 Where an importer imports works of art prescribed by paragraph 3(g), and less than 75%, in value, of the shipment is exported within one year after the importation, the importer shall notify in writing an officer at a customs office indicating the percentage, in value, of the works of art in the shipment that was exported.