Advanced Search

• 2 (1) In this Order,

  Canadian value added

  Canadian value added means

  • (a) in relation to a class of vehicles produced in Canada in any 12 month period ending on July 31, the aggregate of the following costs to the manufacturer of producing all vehicles of that class that are produced in Canada by the manufacturer in that period and the following depreciation and capital cost allowances for that period, namely

    • (i) the cost of parts produced in Canada, and the cost of materials to the extent that they are of Canadian origin, that are incorporated in vehicles in the factory of the manufacturer in Canada, but not including parts produced in Canada, or materials to the extent that they are of Canadian origin, that have been exported from Canada and subsequently imported into Canada as parts or materials,

    • [...]

    • (iv) such part of the following costs as is reasonably attributable to the production of the vehicles, namely

      [...]

    • [...]

    • (vi) depreciation as referred to in subsection (3), in respect of production machinery and permanent plant equipment and the installation costs of such machinery and equipment, to the extent that such depreciation is reasonably attributable to the production of the vehicles, and

  recipient

  recipient means a Canadian manufacturer listed in Part One of Annex 1002.1 to Chapter Ten of the Free Trade Agreement, as that Part is modified from time to time; (bénéficiaire)

• (2) For the purposes of subparagraph (a)(i) of the definition Canadian value added in subsection (1),

  • [...]

  • (d) parts produced in Canada and materials to the extent that they are of Canadian origin include parts and materials acquired by a manufacturer from a supplier in Canada on condition that the manufacturer has obtained from the supplier a certificate stating

    • [...]

    • (ii) in the case of parts and materials acquired by the manufacturer from a supplier other than a corporation described in paragraph (a), the cost thereof as calculated in accordance with paragraph (b).

[...]

6 No customs duties are removed in the case of a manufacturer who did not qualify prior to January 1, 1988 as a manufacturer of a class of vehicles under the Motor Vehicles Tariff Order, 1965as that Order read on December 31, 1987.

[...]

3 Where a manufacturer of a class of vehicles has, by notice to the Minister in writing accompanied by the consent in writing of any other person, designated that other person as a person associated with the manufacturer in the production of vehicles of that class in Canada in the base year and in any subsequent 12-month period ending on July 31 specified in the notice and that notice has been communicated to the Minister on or before the thirtieth day after the commencement of the period, the person shall, with respect to that class of vehicles, 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.

7 No customs duties are removed in the case of a recipient where

• [...]

• (b) after acquisition of effective control or substantial ownership of assets of the recipient’s business, the fundamental nature, scope or size of the business is significantly altered from the business as it had been carried on by the recipient immediately prior to the acquisition.

[...]