Customs Act (R.S.C., 1985, c. 1 (2nd Supp.))

Short Title

Marginal note:Short title

1 This Act may be cited as the Customs Act.

Interpretation

Marginal note:Definitions

• 2 (1) In this Act,

  Agency

  Agency means the Canada Border Services Agency; (Agence)

  bonded warehouse

  bonded warehouse means a place licensed as a bonded warehouse by the Minister under subsection 91(1) of the Customs Tariff; (entrepôt de stockage)

  Canada

  Canada[Repealed, 1996, c. 31, s. 73]

  Canada-United States Free Trade Agreement

  Canada-United States Free Trade Agreement[Repealed, 1997, c. 14, s. 35]

  cannabis

  cannabis has the same meaning as in subsection 2(1) of the Cannabis Act; (cannabis)

  cannabis product

  cannabis product has the same meaning as in section 2 of the Excise Act, 2001; (produit du cannabis)

  carrier code

  carrier code means the unique identification number issued by the Minister either under subsection 12.1(4) or before the coming into force of that subsection; (code de transporteur)

  CCFTA

  CCFTA has the same meaning as Agreement in subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act; (ALÉCC)

  CCOFTA

  CCOFTA has the same meaning as Agreement in section 2 of the Canada–Colombia Free Trade Agreement Implementation Act; (ALÉCCO)

  CCRFTA

  CCRFTA has the same meaning as Agreement in subsection 2(1) of the Canada — Costa Rica Free Trade Agreement Implementation Act; (ALÉCCR)

  CEFTA

  CEFTA has the same meaning as Agreement in subsection 2(1) of the Canada–EFTA Free Trade Agreement Implementation Act; (ALÉCA)

  Certificate of Origin

  Certificate of Origin means the proof of origin form for goods for which preferential tariff treatment under a free trade agreement is claimed, prescribed under subsection 35.1(1) and subject to the regulations made pursuant to paragraph 35.1(4)(b); (certificat d’origine)

  CETA

  CETA has the same meaning as Agreement in section 2 of the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act; (AÉCG)

  CHFTA

  CHFTA has the same meaning as Agreement in section 2 of the Canada–Honduras Economic Growth and Prosperity Act; (ALÉCH)

  Chile

  Chile has the same meaning as in subsection 2(1) of the Customs Tariff; (Chili)

  CIFTA

  CIFTA has the same meaning as Agreement in subsection 2(1) of the Canada-Israel Free Trade Agreement Implementation Act; (ALÉCI)

  cigar

  cigar[Repealed, 2002, c. 22, s. 328]

  CJFTA

  CJFTA has the same meaning as Agreement in section 2 of the Canada–Jordan Economic Growth and Prosperity Act; (ALÉCJ)

  CKFTA

  CKFTA has the same meaning as Agreement in section 2 of the Canada–Korea Economic Growth and Prosperity Act; (ALÉCRC)

  Colombia

  Colombia has the same meaning as in subsection 2(1) of the Customs Tariff; (Colombie)

  Commissioner

  Commissioner[Repealed, 2005, c. 38, s. 60]

  conveyance

  conveyance means any vehicle, aircraft or water-borne craft or any other contrivance that is used to move persons or goods; (moyen de transport)

  Costa Rica

  Costa Rica has the same meaning as in subsection 2(1) of the Customs Tariff; (Costa Rica)

  courier

  courier has the meaning assigned by regulation; (messager)

  CPAFTA

  CPAFTA has the same meaning as Agreement in section 2 of the Canada–Panama Economic Growth and Prosperity Act; (ALÉCPA)

  CPFTA

  CPFTA has the same meaning as Agreement in section 2 of the Canada–Peru Free Trade Agreement Implementation Act; (ALÉCP)

  CPTPP

  CPTPP has the same meaning as Agreement in section 2 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act; (PTPGP)

  CPTPP country

  CPTPP country has the same meaning as in subsection 2(1) of the Customs Tariff; (pays PTPGP)

  CUFTA

  CUFTA has the meaning assigned by the definition Agreement in section 2 of the Canada–Ukraine Free Trade Agreement Implementation Act, 2023; (ALÉCU)

  CUFTA 2017

  CUFTA 2017 has the meaning assigned by the definition Agreement in section 2 of the Canada–Ukraine Free Trade Agreement Implementation Act, as it reads immediately before the day on which section 39 of the Canada–Ukraine Free Trade Agreement Implementation, 2023 comes into force; (ALÉCU de 2017)

  CUKTCA

  CUKTCA has the meaning assigned by the definition Agreement in section 2 of the Canada–United Kingdom Trade Continuity Agreement Implementation Act; (ACCCRU)

  CUKTCA beneficiary

  CUKTCA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff; (bénéficiaire de l’ACCCRU)

  CUSMA

  CUSMA has the meaning assigned by the definition Agreement in section 2 of the Canada–United States–Mexico Agreement Implementation Act; (ACEUM)

  CUSMA country

  CUSMA country means a country that is a party to CUSMA; (pays ACEUM)

  customs office

  customs office means a place designated as a customs office by the Minister under section 5; (bureau de douane)

  data

  data means representations, in any form, of information or concepts; (données)

  Deputy Minister

  Deputy Minister[Repealed, 1999, c. 17, s. 123]

  designated goods

  designated goods means

  • (a) [Repealed, 2002, c. 22, s. 328]

  • (b) aviation fuel,

  • (c) aviation gasoline,

  • (d) beer or malt liquor,

  • (e) diamonds,

  • (f) diesel fuel,

  • (g) gasoline,

  • (h) pearls,

  • (i) precious and semi-precious stones,

  • (i.1) spirits,

  • (j) wine, or

  • (k) such other goods as the Minister may, by order, designate for the purposes of all or any of the provisions of this Act; (marchandises désignées)

  duties

  duties means any duties or taxes levied or imposed on imported goods under the Customs Tariff, the Excise Act, 2001, the Excise Tax Act, the Special Import Measures Act or any other Act of Parliament, but, for the purposes of subsection 3(1), paragraphs 59(3)(b) and 65(1)(b), sections 69 and 73 and subsections 74(1), 75(2) and 76(1), does not include taxes imposed under Part IX of the Excise Tax Act; (droits)

  duty free shop

  duty free shop means a place licensed as a duty free shop by the Minister under section 24; (boutique hors taxes)

  EFTA state

  EFTA state has the same meaning as in subsection 2(1) of the Canada–EFTA Free Trade Agreement Implementation Act; (État de l’AELÉ)

  EU country or other CETA beneficiary

  EU country or other CETA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff; (pays de l’Union européenne ou autre bénéficiaire de l’AÉCG)

  excise stamp

  excise stamp has the same meaning as in section 2 of the Excise Act, 2001; (timbre d’accise)

  export

  export means export from Canada; (exporter)

  forfeit

  forfeit means forfeit to Her Majesty in right of Canada; (confisquer)

  free trade agreement

  free trade agreement means an agreement set out in column 2 of Part 1 of the schedule; (accord de libre-échange)

  free trade partner

  free trade partner means a country or territory set out in column 1 of Part 1 of the schedule; (partenaire de libre-échange)

  goods

  goods, for greater certainty, includes conveyances, animals and any document in any form; (marchandises)

  Honduras

  Honduras has the same meaning as in subsection 2(1) of the Customs Tariff; (Honduras)

  Iceland

  Iceland has the same meaning as in subsection 2(1) of the Customs Tariff; (Islande)

  immediate container

  immediate container has the same meaning as in section 2 of the Excise Act, 2001; (contenant immédiat)

  import

  import means import into Canada; (importer)

  imported from Israel or another CIFTA beneficiary

  imported from Israel or another CIFTA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff; (importé d’Israël ou d’un autre bénéficiaire de l’ALÉCI)

  inland waters

  inland waters means all the rivers, lakes and other fresh waters in Canada and includes the St. Lawrence River as far seaward as the straight lines drawn

  • (a) from Cap-des-Rosiers to the westernmost point of Anticosti Island, and

  • (b) from Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west; (eaux internes)

  internal waters

  internal waters[Repealed, 1996, c. 31, s. 73]

  Israel or another CIFTA beneficiary

  Israel or another CIFTA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff; (Israël ou autre bénéficiaire de l’ALÉCI)

  Jordan

  Jordan has the same meaning as in subsection 2(1) of the Customs Tariff; (Jordanie)

  Korea

  Korea has the same meaning as in subsection 2(1) of the Customs Tariff; (Corée)

  licensed user

  licensed user has the same meaning as in section 2 of the Excise Act, 2001; (utilisateur agréé)

  Liechtenstein

  Liechtenstein has the same meaning as in subsection 2(1) of the Customs Tariff; (Liechtenstein)

  mail

  mail has the meaning set out in section 2 of the Canada Post Corporation Act; (envois ou courrier)

  manufactured tobacco

  manufactured tobacco[Repealed, 2002, c. 22, s. 328]

  Minister

  Minister means, except in Part V.1, the Minister of Public Safety and Emergency Preparedness; (ministre)

  NAFTA

  NAFTA has the meaning assigned to the word Agreement by subsection 2(1) of the North American Free Trade Agreement Implementation Act; (ALÉNA)

  NAFTA country

  NAFTA country has the meaning assigned to that expression by subsection 2(1) of the North American Free Trade Agreement Implementation Act; (pays ALÉNA)

  Norway

  Norway has the same meaning as in subsection 2(1) of the Customs Tariff; (Norvège)

  officer

  officer means a person employed in the administration or enforcement of this Act, the Customs Tariff or the Special Import Measures Act and includes any member of the Royal Canadian Mounted Police; (agent ou agent des douanes)

  Panama

  Panama has the same meaning as in subsection 2(1) of the Customs Tariff; (Panama)

  person

  person means an individual, a partnership, a corporation, a trust, the estate of a deceased individual or a body that is a society, a union, a club, an association, a commission or other organization of any kind; (personne)

  Peru

  Peru has the same meaning as in subsection 2(1) of the Customs Tariff; (Pérou)

  preferential tariff treatment

  preferential tariff treatment means, in respect of goods, entitlement to whichever tariff set out in column 3 of Part 1 of the schedule is applicable in the circumstances; (traitement tarifaire préférentiel)

  preferential tariff treatment under CCFTA

  preferential tariff treatment under CCFTA[Repealed, 2012, c. 18, s. 24]

  preferential tariff treatment under CCOFTA

  preferential tariff treatment under CCOFTA[Repealed, 2012, c. 18, s. 24]

  preferential tariff treatment under CCRFTA

  preferential tariff treatment under CCRFTA[Repealed, 2012, c. 18, s. 24]

  preferential tariff treatment under CEFTA

  preferential tariff treatment under CEFTA[Repealed, 2012, c. 18, s. 24]

  preferential tariff treatment under CIFTA

  preferential tariff treatment under CIFTA[Repealed, 2012, c. 18, s. 24]

  preferential tariff treatment under CPFTA

  preferential tariff treatment under CPFTA[Repealed, 2012, c. 18, s. 24]

  preferential tariff treatment under NAFTA

  preferential tariff treatment under NAFTA[Repealed, 2012, c. 18, s. 24]

  prescribed

  prescribed means

  • (a) in respect of a form or the manner of filing a form, authorized by the Minister,

  • (b) in respect of the information to be provided on or with a form, specified by the Minister, and

  • (c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation;

  and for the purposes of paragraphs (a) and (b), form is not limited to a single record or document with blank spaces to be filled out; (Version anglaise seulement)

  President

  President means the President of the Canada Border Services Agency appointed under subsection 7(1) of the Canada Border Services Agency Act; (président)

  raw leaf tobacco

  raw leaf tobacco has the same meaning as in section 2 of the Excise Act, 2001; (tabac en feuilles)

  record

  record means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device; (document)

  regulation

  regulation means a regulation made by the Governor in Council under this Act; (règlement)

  release

  release means

  • (a) in respect of goods, to authorize the removal of the goods from a customs office, sufferance warehouse, bonded warehouse or duty free shop for use in Canada, and

  • (b) in respect of goods to which paragraph 32(2)(b) applies, to receive the goods at the place of business of the importer, owner or consignee; (dédouanement)

  restricted formulation

  restricted formulation has the same meaning as in section 2 of the Excise Act, 2001; (préparation assujettie à des restrictions)

  specially denatured alcohol

  specially denatured alcohol has the same meaning as in section 2 of the Excise Act, 2001; (alcool spécialement dénaturé)

  specified rate

  specified rate means the rate of interest, expressed as a percentage per year, equal to 6% per year plus the prescribed rate; (taux déterminé)

  spirits

  spirits has the same meaning as in section 2 of the Excise Act, 2001; (spiritueux)

  spirits licensee

  spirits licensee has the same meaning as in section 2 of the Excise Act, 2001; (titulaire de licence de spiritueux)

  sufferance warehouse

  sufferance warehouse means a place licensed as a sufferance warehouse by the Minister under section 24; (entrepôt d’attente)

  Switzerland

  Switzerland has the same meaning as in subsection 2(1) of the Customs Tariff; (Suisse)

  tariff classification

  tariff classification means the classification of imported goods under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff; (classement tarifaire)

  territorial sea

  territorial sea[Repealed, 1996, c. 31, s. 73]

  tobacco licensee

  tobacco licensee has the same meaning as in section 2 of the Excise Act, 2001; (titulaire de licence de tabac)

  tobacco product

  tobacco product has the same meaning as in section 2 of the Excise Act, 2001; (produit du tabac)

  Ukraine

  Ukraine has the same meaning as in subsection 2(1) of the Customs Tariff; (Ukraine)

  United States

  United States[Repealed, 1997, c. 14, s. 35]

  value for duty

  value for duty means, in respect of goods, the value of the goods as it would be determined in accordance with sections 45 to 56; (valeur en douane)

  vaping device

  vaping device has the same meaning as in section 2 of the Excise Act, 2001; (dispositif de vapotage)

  vaping product

  vaping product has the same meaning as in section 2 of the Excise Act, 2001; (produit de vapotage)

  vaping product licensee

  vaping product licensee has the same meaning as in section 2 of the Excise Act, 2001; (titulaire de licence de produits de vapotage)

  vaping substance

  vaping substance has the same meaning as in section 2 of the Excise Act, 2001; (substance de vapotage)

  wine

  wine has the same meaning as in section 2 of the Excise Act, 2001; (vin)

  wine licensee

  wine licensee has the same meaning as in section 2 of the Excise Act, 2001. (titulaire de licence de vin)

• Marginal note:Definitions

  (1.1) For the purpose of the definition designated goods in subsection (1),

  alcohol

  alcohol, ethyl alcohol and spirits[Repealed, 2002, c. 22, s. 328]

  beer

  beer or malt liquor has the meaning assigned by section 4 of the Excise Act; (bière ou liqueur de malt)

  diamonds

  diamonds means goods for personal use or for adornment of the person and classified under subheading Nos. 7102.10, 7102.31 and 7102.39 in the List of Tariff Provisions set out in the schedule to the Customs Tariff; (diamants)

  diesel fuel

  diesel fuel has the meaning assigned by subsection 2(1) of the Excise Tax Act; (combustible diesel)

  gasoline

  gasoline has the meaning assigned by subsection 2(1) of the Excise Tax Act; (essence)

  pearls

  pearls means goods for personal use or for adornment of the person and classified under heading No. 71.01 in the List of Tariff Provisions set out in the schedule to the Customs Tariff; (perles)

  precious and semi-precious stones

  precious and semi-precious stones means goods for personal use or for adornment of the person and classified under heading No. 71.03 in the List of Tariff Provisions set out in the schedule to the Customs Tariff. (pierres précieuses ou fines)

  wine

  wine[Repealed, 2002, c. 22, s. 328]

• (1.2) [Repealed, 2012, c. 18, s. 24]

• Marginal note:Electronic records

  (1.3) Every person required by this Act to keep records who does so electronically shall retain them in an electronically readable format for the prescribed retention period.

• Marginal note:Restriction of Canadian waters

  (2) The Governor in Council may from time to time by regulation temporarily restrict, for the purposes of this Act, the extent of Canadian waters, including the inland waters, but no such regulation shall be construed as foregoing any Canadian rights in respect of waters so restricted.

• Marginal note:Powers, duties and functions of President

  (3) Any power, duty or function of the President under this Act may be exercised or performed by any person, or by any officer within a class of officers, authorized by the President to do so and, if so exercised or performed, is deemed to have been exercised or performed by the President.

• Marginal note:Delegation

  (4) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial powers or duties of the Minister, under this Act.

• Marginal note:Delegation by Minister

  (5) The Minister may authorize a person employed by the Canada Revenue Agency, or a class of those persons, to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial powers or duties of the Minister, under this Act.

• Marginal note:Delegation by Minister of National Revenue

  (6) The Minister of National Revenue may authorize a person employed by the Canada Revenue Agency or the Agency, or a class of those persons, to exercise powers or perform duties of that Minister, including any judicial or quasi-judicial powers or duties of that Minister, under this Act.

PART IGeneral

Application to Her Majesty

Marginal note:Duties binding on Her Majesty

• 3 (1) All duties or taxes levied on imported goods under the Excise Tax Act, the Special Import Measures Act, the Customs Tariff, the Excise Act, 2001, the Select Luxury Items Tax Act or any other law relating to customs are binding on Her Majesty in right of Canada or a province in respect of any goods imported by or on behalf of Her Majesty.

• Marginal note:Act binding on Her Majesty

  (2) Subject to subsection (3), this Act is binding on Her Majesty in right of Canada or a province.

• Marginal note:Exemption

  (3) The Governor in Council may by regulation exempt Her Majesty in any case or class of cases from the requirement to report under section 12 or 95 subject to such conditions as may be prescribed.

Penalty and Interest

Marginal note:Interest to be compounded

3.1 Interest shall be computed at a prescribed rate or at a specified rate and compounded daily and, if interest is computed in respect of an amount under a provision of this Act and is unpaid on the day it would, but for this section, have ceased to be computed under that provision, interest at the specified rate shall be computed and compounded daily on that unpaid interest from that day to the day it is paid and shall be paid as that provision required the amount to be paid.

Marginal note:Prescribed rate may be authorized

3.2 Where a person is required under a provision of this Act to pay interest on an amount at the specified rate, the person shall, where the Minister or any officer designated by the Minister for the purposes of this section so authorizes, pay interest on that amount under that provision at the prescribed rate rather than at the specified rate.

Marginal note:Waiver of penalty or interest

• 3.3 (1) Except with respect to the collection of any debt due to Her Majesty under Part V.1, the Minister or any officer designated by the President for the purposes of this section may at any time waive or cancel all or any portion of any penalty or interest otherwise payable by a person under this Act.

• Marginal note:Exception

  (1.1) Subsection (1) does not apply if measures may be taken under section 127.1, a request under section 129 is made or the time for making a request set out in that section has not expired.

• Marginal note:Interest on penalty or interest refunded

  (2) Where, as a result of a waiver or cancellation under subsection (1), a person is given a refund of an amount of penalty or interest that was paid by the person, the person shall be given, in addition to the refund, interest at the prescribed rate for the period beginning on the first day after the day the amount was paid and ending on the day the refund is given, calculated on the amount of the refund.

Security

Marginal note:Additional security

• 3.4 (1) Where security has been given to the Minister by a person under a provision of this Act and the Minister or any officer (in this section referred to as a “designated officer”) designated by the President for the purposes of this section determines that the security that has been given is no longer adequate, the Minister or a designated officer may, by notice served personally or by registered or certified mail, require additional security to be given by or on behalf of the person within such reasonable time as may be stipulated in the notice.

• Marginal note:Payment where additional security not given

  (2) Where the additional security required to be given by or on behalf of a person under subsection (1) is not given within the time it is so required to be given, the amount by which

  • (a) the amount owing in respect of which security that has been given to the Minister by the person is no longer adequate

  exceeds

  • (b) the value of the security that has been given to the Minister by the person, as determined by the Minister or a designated officer,

  is payable by the person immediately.

Payments

Marginal note:Payments

3.5 Except in the circumstances that the Minister may specify, every person who makes a payment under this Act shall make the payment to the account of the Receiver General in the prescribed manner, within the prescribed time and at the prescribed place.

Performance of Obligations

Marginal note:Performance of obligations

4 Where more than one person is responsible for the performance of any obligation under this Act, performance of the obligation by any one of them shall be deemed to be performance by all of them.

Marginal note:Undertakings

4.1 In the case of goods to which paragraph 32(2)(b) applies, the Minister may accept from an importer or transporter an undertaking to assume obligations in relation to compliance with this Act and the regulations.

Customs Offices and Facilities

Marginal note:Customs offices

5 The Minister may designate customs offices inside or outside Canada for a specified purpose or generally for business relating to customs and may at any time amend, cancel or reinstate any such designation.

Marginal note:Customs facilities

• 6 (1) The owner or operator of

  • (a) any international bridge or tunnel, for the use of which a toll or other charge is payable,

  • (b) any railway operating internationally, or

  • (c) any airport, wharf or dock that receives conveyances operating internationally and in respect of which a customs office has been designated under section 5

  shall provide, equip and maintain free of charge to Her Majesty at or near the bridge, tunnel, railway, airport, wharf or dock adequate buildings, accommodation or other facilities for the proper detention and examination of imported goods or for the proper search of persons by customs officers.

• Marginal note:Clarification

  (1.1) For the purposes of subsection (1), maintain means, in addition to performing general maintenance, paying all costs related to the operation of the buildings, accommodation and other facilities, including electricity, lighting, ventilation, heating, cooling, water supply, sewage treatment, fire protection, snow removal and cleaning.

• Marginal note:Retroactive effect

  (1.2) Subsection (1.1) has retroactive effect to the day on which subsection (1) came into force and applies in respect of any action or judicial proceeding that is pending on the day on which this subsection comes into force.

• Marginal note:Rights of Minister

  (2) The Minister may

  • (a) make such improvements as the Minister considers desirable to any facilities provided pursuant to subsection (1),

  • (b) post, on or about such facilities, such signs as the Minister considers appropriate for the safe use of the facilities or for the enforcement of any law relating to the importation or exportation of goods or the international movement of persons, and

  • (c) continue to use such facilities for as long a period of time as the Minister requires,

  and no person shall interfere with any of the rights set out in this subsection.

• Marginal note:Regulations

  (3) The Governor in Council may, subject to subsection (4), make regulations determining what are adequate buildings, accommodation and other facilities for the purposes referred to in subsection (1).

• Marginal note:Retroactive effect of regulations

  (3.1) A regulation made under subsection (3) may, if it so provides, have retroactive effect and apply in respect of any pending action or judicial proceeding.

• Marginal note:Canada Labour Code

  (4) Any building, accommodation or other facility provided for the purposes referred to in subsection (1) that fails to meet the applicable requirements of Part II of the Canada Labour Code shall be deemed not to be adequate for those purposes.

• Marginal note:Powers of Minister

  (5) Where any building, accommodation or other facility provided pursuant to subsection (1) at or near an international bridge or tunnel is not adequate for the purposes referred to in that subsection, the Minister may, on thirty days notice to the owner or operator of the bridge or tunnel, carry out any construction or repairs on the site of the facility in order to render it adequate for those purposes.

• Marginal note:Liability for costs

  (6) The owner or operator of an international bridge or tunnel is liable for all reasonable costs incurred by the Minister under subsection (5), which costs may be recovered in accordance with sections 143 to 145.

Application of Act

Marginal note:Application inside and outside Canada

7 Subject to this Act and the regulations, any of the powers, duties or functions established under this Act or the regulations relating to the importation of goods may be carried out inside Canada or, where they do not conflict with the laws of another country, inside that other country and may be carried out before or after the importation.

Provision of Information

Marginal note:Obligation to provide accurate information

7.1 Any information provided to an officer in the administration or enforcement of this Act, the Customs Tariff or the Special Import Measures Act or under any other Act of Parliament that prohibits, controls or regulates the importation or exportation of goods, shall be true, accurate and complete.

Forms

Marginal note:Declaration

8 The Minister may include on any form a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is true, accurate and complete.

Electronic Administration and Enforcement

Marginal note:Electronic administration and enforcement

• 8.1 (1) This Act may be administered and enforced using electronic means. Any person on whom powers, duties or functions are conferred under this Act may exercise any of those powers or perform any of those duties or functions using the electronic means made available or specified by the Minister.

• Marginal note:Authorization

  (2) Any person who has been authorized to exercise any power or perform any duty or function conferred on a person referred to in subsection (1) under this Act may do so using the electronic means that are made available or specified by the Minister.

Marginal note:Provision of information

8.2 For the purposes of sections 8.3 to 8.6, providing information includes providing a signature and serving, filing or otherwise providing a record or document.

Marginal note:Conditions for electronic version

8.3 A requirement under this Act to provide information or security — in any form or manner or by any means — is satisfied by providing the electronic version of the information or security if

• (a) the electronic version is provided by the electronic means, including an electronic system, that are made available or specified by the Minister, if any; and

• (b) any prescribed requirements with respect to electronic communications or electronic means have been met.

Marginal note:Deemed timing of receipt

8.4 Any information or security provided by electronic means, including an electronic system, in accordance with section 8.1 or 8.3, is deemed to be received

• (a) if the regulations provide for a day, on that day;

• (b) if the regulations provide for a day and time, on that day and at that time; or

• (c) if the regulations do not provide for a day or a day and a time, on the day and at the time that the information or security is sent.

Marginal note:For greater certainty

8.5 For greater certainty, by virtue of section 12 of the Customs Tariff, sections 8.1 to 8.4 apply, with any modifications that the circumstances require, to the administration and enforcement of that Act and regulations made under it.

Marginal note:Regulations

• 8.6 (1) The Governor in Council may, on the recommendation of the Minister, make regulations in respect of electronic communications and electronic means, including electronic systems, or any other technology to be used in the administration or enforcement of this Act or the Customs Tariff, including regulations respecting

  • (a) the provision of information or security for any purpose under this Act or the Customs Tariff in electronic or other form;

  • (b) the payment of amounts under this Act or the Customs Tariff by electronic instructions; and

  • (c) the manner in which and the extent to which any provision of this Act, the Customs Tariff or their regulations applies to the electronic communications or electronic means, including electronic systems, and adapting any such provision for the purpose of applying it.

• Marginal note:Classes

  (2) Regulations made for the purpose of section 8.3 may establish classes and distinguish among those classes.

Brokers and Agents

Marginal note:Issue of customs broker’s licence

• 9 (1) Subject to the regulations, the Minister or any person designated by the Minister for the purposes of this section may issue to any person who is qualified under the regulations a licence to transact business as a customs broker.

• Marginal note:Amendment, etc., of licence

  (2) Subject to the regulations, the Minister may amend, suspend, renew, cancel or reinstate any licence issued under subsection (1), and any person designated by the Minister for the purpose of this section may amend, suspend, renew, cancel or reinstate any licence issued by himself under subsection (1).

• Marginal note:Records

  (3) If an officer so requests, a customs broker shall make available to the officer, within the time specified by the officer, any records that the customs broker is required by the regulations to keep.

• Marginal note:Prohibition

  (4) No person shall transact or attempt to transact business as a customs broker or hold himself out as a customs broker unless the person holds a licence issued under subsection (1) or unless he is qualified under the regulations and is duly authorized to transact business as a customs broker by a person who holds such a licence, but nothing in this subsection shall be so construed as to prohibit any person from transacting business on his own behalf under this Act, or to prohibit persons administering estates or other duly authorized agents from transacting business under this Act.

• Marginal note:Regulations

  (5) The Governor in Council may make regulations

  • (a) prescribing qualifications as to citizenship, residence and knowledge of the laws and procedures relating to importations and exportations and any other qualifications that must be met by an applicant for a customs broker’s licence issued under subsection (1), and any such qualifications that must be met by a person who transacts business as a customs broker on behalf of a person so licensed;

  • (b) prescribing the terms and conditions on which such licences may be issued, including the security that may be required and the fees, if any, to be paid for the licences;

  • (c) prescribing the duration of such licences;

  • (d) prescribing the manner of applying for such licences or for renewals thereof;

  • (e) providing for the examination of applicants for such licences, and of persons who will transact business as customs brokers on their behalf, by the Minister or by any other person with respect to their knowledge of the laws and procedures relating to importations and exportations;

  • (f) prescribing the examination fees to be paid, the amount of any deposit that may be taken in respect thereof and the conditions under which such fees or deposits may be refunded;

  • (g) prescribing the records to be kept by customs brokers and the period of time for which they shall be kept; and

  • (h) prescribing the manner and circumstances in which the Minister may suspend or cancel a customs broker’s licence issued under subsection (1) or any other person may suspend or cancel such a licence issued by himself thereunder, and the circumstances in which a customs broker’s licence shall be surrendered.

Marginal note:Agents

• 10 (1) Subject to the regulations, any person who is duly authorized to do so may transact business under this Act as the agent of another person, but an officer may refuse to transact business with any such person unless that person, on the request of the officer, produces a written authority, in a form approved by the Minister, from the person on whose behalf he is acting.

• Marginal note:Administrators

  (2) Any person who is duly authorized to administer the estate of another person by reason of death, bankruptcy, insolvency or incapacity or for any other reason may transact business under this Act on behalf of the estate but an officer may refuse to transact business with any such person unless that person satisfies the officer that he is duly authorized to administer the estate.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations in respect of any provision of this Act prescribing the circumstances in which a person may transact business under that provision as the agent of another person.

PART IIImportation

Persons

Marginal note:Presentation of persons on arrival in Canada

• 11 (1) Subject to this section, every person arriving in Canada shall, except in such circumstances and subject to such conditions as may be prescribed, enter Canada only at a customs office designated for that purpose that is open for business and without delay present himself or herself to an officer and answer truthfully any questions asked by the officer in the performance of his or her duties under this or any other Act of Parliament.

• Marginal note:Exception

  (2) Subsection (1) does not apply to any person who has presented himself or herself outside Canada at a customs office designated for that purpose and has not subsequently stopped at any other place prior to his or her arrival in Canada unless an officer requires that person to present himself or herself to the officer.

• Marginal note:Presentation of passengers and crew

  (3) Subject to this section, every person in charge of a conveyance arriving in Canada shall, except in such circumstances and subject to such conditions as may be prescribed, ensure that the passengers and crew are forthwith on arrival in Canada transported to a customs office referred to in subsection (1).

• Marginal note:Exception

  (4) Subsection (3) does not apply to any person in charge of a conveyance transporting passengers and crew all of whom have presented themselves outside Canada at a customs office designated for that purpose and have not subsequently stopped at any other place prior to their arrival in Canada unless an officer requires that person to comply therewith.

• Marginal note:Entry and departure

  (5) Subject to the regulations, subsections (1) and (3) do not apply to any of the following persons, unless an officer requires them to comply with those subsections:

  • (a) a person who enters Canadian waters, including the inland waters, or the airspace over Canada on board a conveyance directly from outside Canada and then leaves Canada on board the conveyance, as long as the person was continuously on board that conveyance while in Canada and

    • (i) in the case of a conveyance other than an aircraft, the person did not land in Canada and the conveyance did not anchor, moor or make contact with another conveyance while in Canadian waters, including the inland waters, or

    • (ii) in the case of an aircraft, the conveyance did not land while in Canada; and

  • (b) a person who leaves Canadian waters, including the inland waters, or the airspace over Canada on board a conveyance and then re-enters Canada on board the conveyance, as long as the person was continuously on board that conveyance while outside Canada and

    • (i) in the case of a conveyance other than an aircraft, the person did not land outside Canada and the conveyance did not anchor, moor or make contact with another conveyance while outside Canada, or

    • (ii) in the case of an aircraft, the conveyance did not land while outside Canada.

• Marginal note:Exception — alternative manner

  (6) Subsection (1) does not apply to a person who

  • (a) holds an authorization issued by the Minister under subsection 11.1(1) to present himself or herself in a prescribed alternative manner and who presents himself or herself in the manner authorized for that person; or

  • (b) is a member of a prescribed class of persons authorized by regulations made under subsection 11.1(3) to present himself or herself in a prescribed alternative manner and who presents himself or herself in the manner authorized for that class.

• Marginal note:Powers of officer

  (7) Notwithstanding that a person holds an authorization under subsection 11.1(1) or is authorized under the regulations made under subsection 11.1(3), an officer may require a person to present himself or herself in accordance with subsection (1).

Marginal note:Minister may authorize

• 11.1 (1) Subject to the regulations, the Minister may issue to any person an authorization to present himself or herself in an alternative manner.

• Marginal note:Amendment, etc., of authorization

  (2) The Minister may, subject to the regulations, amend, suspend, renew, cancel or reinstate an authorization.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations

  • (a) prescribing classes of persons who are, and classes of persons who may be, authorized to present themselves in alternative manners;

  • (b) respecting alternative manners of presentation;

  • (c) respecting the requirements and conditions that are to be met before authorizations may be issued;

  • (d) respecting the terms and conditions of authorizations;

  • (e) respecting the amendment, suspension, renewal, cancellation or reinstatement of authorizations; and

  • (f) respecting fees or the manner of determining fees to be paid for authorizations.

• Marginal note:Service Fees Act

  (4) The Service Fees Act does not apply to a fee for an authorization issued under this section if it is a reciprocal fee under an international arrangement.

Marginal note:Designation of customs controlled areas

• 11.2 (1) The Minister may designate an area as a customs controlled area for the purposes of this section and sections 11.3 to 11.5 and 99.2 and 99.3.

• Marginal note:Amendment, etc. of designation

  (2) The Minister may amend, cancel or reinstate at any time a designation made under this section.

Marginal note:Entry prohibited

• 11.3 (1) No owner or operator of a facility where a customs controlled area is located shall grant or allow to be granted access to the customs controlled area to any person unless the person

  • (a) has been authorized by the Minister; or

  • (b) is a prescribed person or a member of a prescribed class of persons.

• Marginal note:Amendment, etc., of authorization

  (2) The Minister may amend, suspend, renew, cancel or reinstate an authorization.

Marginal note:Presentation and reporting — when leaving customs controlled area

• 11.4 (1) Subject to subsection (2), every person who is leaving a customs controlled area shall, if requested to do so by an officer,

  • (a) present himself or herself in the prescribed manner to an officer and identify himself or herself;

  • (b) report in the prescribed manner any goods that he or she has acquired through any means while in the customs controlled area;

  • (b.1) present those goods and remove any covering from them, unload any conveyance or open any part of it, or open or unpack any package or container that an officer wishes to examine; and

  • (c) answer truthfully any questions asked by an officer in the performance of his or her duties under this or any other Act of Parliament.

• Marginal note:Presentation and reporting — within customs controlled area

  (1.1) Every person who is in a customs controlled area shall, if requested to do so by an officer,

  • (a) present himself or herself in the prescribed manner to an officer and identify himself or herself; and

  • (b) answer truthfully any questions asked by an officer in the performance of his or her duties under this or any other Act of Parliament.

• Marginal note:Non-application of subsections (1) and (1.1)

  (2) Subsections (1) and (1.1) do not apply to persons who are required to present themselves under section 11 or report goods under section 12.

Marginal note:Regulations

11.5 The Governor in Council may make regulations

• (a) prescribing the persons or classes of persons who may be granted access under paragraph 11.3(1)(b); and

• (b) respecting the manner in which a person must present himself or herself under paragraphs 11.4(1)(a) and (1.1)(a) and report goods under paragraph 11.4(1)(b).

• (c) to (e) [Repealed, 2009, c. 10, s. 4]

Marginal note:Designation of mixed-traffic corridor

• 11.6 (1) If the Minister considers that it is necessary in the public interest, he or she may designate as a mixed-traffic corridor a portion of a roadway or other access way that

  • (a) leads from an international border to a customs office designated under section 5; and

  • (b) is used by persons arriving in Canada and by persons travelling within Canada.

• Marginal note:Amendment, etc., of designation

  (2) The Minister may amend, cancel or reinstate at any time a designation made under this section.

Marginal note:Person travelling in mixed-traffic corridor

11.7 Every person who is travelling in a mixed-traffic corridor shall present themselves to an officer at the nearest customs office and state whether they are arriving from a location outside or within Canada.

Report of Goods

Marginal note:Report

• 12 (1) Subject to this section, all goods that are imported shall, except in such circumstances and subject to such conditions as may be prescribed, be reported at the nearest customs office designated for that purpose that is open for business.

• Marginal note:Time and manner of report

  (2) Goods shall be reported under subsection (1) at such time and in such manner as the Governor in Council may prescribe.

• Marginal note:Who reports

  (3) Goods shall be reported under subsection (1)

  • (a) in the case of goods in the actual possession of a person arriving in Canada, or that form part of the person’s baggage where the person and the person’s baggage are being carried on board the same conveyance, by that person or, in prescribed circumstances, by the person in charge of the conveyance;

  • (a.1) in the case of goods imported by courier or as mail, by the person who exported the goods to Canada;

  • (b) in the case of goods, other than goods referred to in paragraph (a) or goods imported as mail, on board a conveyance arriving in Canada, by the person in charge of the conveyance; and

  • (c) in any other case, by the person on behalf of whom the goods are imported.

• Marginal note:Goods returned to Canada

  (3.1) For greater certainty, for the purposes of the reporting of goods under subsection (1), the return of goods to Canada after they are taken out of Canada is an importation of those goods.

• Marginal note:Where goods are reported outside Canada

  (4) Subsection (1) does not apply in respect of goods that are reported in the manner prescribed under subsection (2) prior to importation at a customs office outside Canada unless an officer requires that the goods be reported again under subsection (1) after importation.

• Marginal note:Exception — entry and departure

  (5) Subject to the regulations, unless an officer otherwise requires, this section does not apply in respect of goods on board a conveyance

  • (a) that enters Canadian waters, including the inland waters, or the airspace over Canada directly from outside Canada and then leaves Canada, as long as

    • (i) in the case of a conveyance other than an aircraft, the conveyance did not anchor, moor or make contact with another conveyance while in Canadian waters, including the inland waters, or

    • (ii) in the case of an aircraft, the conveyance did not land while in Canada; or

  • (b) that leaves Canadian waters, including the inland waters, or the airspace over Canada and then re-enters Canada, as long as

    • (i) in the case of a conveyance other than an aircraft, the conveyance did not anchor, moor or make contact with another conveyance while outside Canada, or

    • (ii) in the case of an aircraft, the conveyance did not land while outside Canada.

• Marginal note:Written report

  (6) If goods are required by the regulations to be reported under subsection (1) in writing, they shall be reported in the prescribed form with the prescribed information or in such form and with such information as is satisfactory to the Minister.

• Marginal note:Certain goods not subject to seizure

  (7) Goods described in 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

  • (a) that are in the actual possession of a person arriving in Canada, or that form part of his baggage, where the person and his baggage are being carried on board the same conveyance,

  • (b) that are not charged with duties, and

  • (c) the importation of which is not prohibited under the Customs Tariff or prohibited, controlled or regulated under any Act of Parliament other than this Act or the Customs Tariff

  may not be seized as forfeit under this Act by reason only that they were not reported under this section.

Marginal note:Regulations

12.01 The Governor in Council may make regulations for the purposes of sections 11 and 12, including regulations

• (a) prescribing the circumstances under which persons, goods or classes thereof on board a conveyance, or classes thereof, are required to present themselves or to be reported, as the case may be, despite subsection 11(5) or 12(5); or

• (b) defining the expression “make contact with another conveyance” for the purposes of subsections 11(5) and 12(5) and prescribing the circumstances under which a conveyance or a class thereof makes contact with another conveyance.

Marginal note:Advance information

• 12.1 (1) Before the arrival of a conveyance in Canada, the owner or person in charge of a conveyance who is prescribed or any other prescribed person shall give the Agency prescribed information about the conveyance and the persons and goods on board or expected to be on board the conveyance.

• Marginal note:Exemption

  (2) A person who is required to provide information under subsection (1) shall hold a valid carrier code unless they are exempt.

• Marginal note:Carrier code — requirements

  (3) An application for a carrier code shall be made in the prescribed form with the prescribed information.

• Marginal note:Carrier code — issuance

  (4) The Minister shall issue a carrier code to a person who applies for it if the application meets the requirements referred to in subsection (3) and the Minister is satisfied that the requirements and conditions prescribed under paragraph (8)(e) for the carrier code to be issued have been met.

• Marginal note:Carrier code — suspension, cancellation and reinstatement

  (5) The Minister may, subject to the regulations, suspend, cancel or reinstate a carrier code.

• Marginal note:Notification

  (6) The Minister may issue a notification to any person who provides information under subsection (1) to require the person to take any specified measure with respect to the information.

• Marginal note:Obligation to comply

  (7) The person to whom a notification is issued shall comply with the notification.

• Marginal note:Regulations

  (8) The Governor in Council may make regulations for the purposes of this section, including regulations

  • (a) respecting the information that must be given under subsection (1);

  • (b) prescribing the persons or classes of persons who must give the information under subsection (1);

  • (c) respecting the circumstances in which the information must be given under subsection (1);

  • (d) respecting the time within which and the manner in which the information must be given under subsection (1);

  • (e) regarding the requirements and conditions that are to be met before a carrier code may be issued;

  • (f) regarding the persons or classes of persons who are exempt from holding a valid carrier code; and

  • (g) regarding the manner and circumstances in which a carrier code may be suspended, cancelled or reinstated.

Marginal note:Obligation to answer questions and present goods

13 Every person who reports goods under section 12 inside or outside Canada or is stopped by an officer in accordance with section 99.1 shall

• (a) answer truthfully any question asked by an officer with respect to the goods; and

• (b) if an officer so requests, present the goods to the officer, remove any covering from the goods, unload any conveyance or open any part of the conveyance, or open or unpack any package or container that the officer wishes to examine.

Marginal note:Restriction on unloading before report

• 14 (1) No person shall unload goods from a conveyance arriving in Canada until the goods have been reported in accordance with sections 12 and 13 except where the safety of the conveyance, or the goods or persons on the conveyance, is threatened by collision, fire, the stress of weather or other similar circumstances or in such other circumstances as may be prescribed.

• Marginal note:Report of goods unloaded

  (2) Where a conveyance is unloaded in the circumstances described in subsection (1), the person in charge of the conveyance shall forthwith, in such manner as may be prescribed, report the conveyance, the goods that were so unloaded and any goods that remain on the conveyance at a customs office designated for that purpose.

Marginal note:Report of goods illegally imported

15 Any person who finds or has in his possession goods that have been imported and who believes on reasonable grounds that the provisions of this or any other Act of Parliament that prohibits, controls or regulates the importation of goods have not been complied with in respect of the goods or that duties levied thereon have not been paid shall forthwith report to an officer that he has found the goods or has them in his possession.

Marginal note:Wreck deemed imported

• 16 (1) For the purposes of this Act, any wreck that has come into Canada from outside Canada shall be deemed to have been imported.

• Marginal note:Report of wreck and liability for duties

  (2) If any wreck that has come into Canada from outside Canada is released to a person under section 61 of the Wrecked, Abandoned or Hazardous Vessels Act, that person

  • (a) shall forthwith report the delivery to an officer; and

  • (b) is, from the time of the delivery, liable for all duties thereon calculated at the rates applicable to the wreck at the time of the delivery.

• Definition of wreck

  (3) In this section, wreck includes

  • (a) jetsam, flotsam, lagan and derelict found in, or on the shores of, the sea, any tidal water, or any of the inland waters;

  • (b) cargo, stores and tackle of any vessel and of all parts of the vessel separated therefrom;

  • (c) the property of shipwrecked persons; and

  • (d) any wrecked aircraft or any part thereof and cargo thereof.

Duties

Marginal note:Goods charged with duties from importation

• 17 (1) Imported goods are charged with duties thereon from the time of importation thereof until such time as the duties are paid or the charge is otherwise removed.

• Marginal note:Rates of duties

  (2) Subject to this Act, the rates of duties on imported goods shall be the rates applicable to the goods at the time they are accounted for under subsection 32(1), (2) or (5) or, where goods have been released in the circumstances set out in paragraph 32(2)(b), at the time of release.

• Marginal note:Liability

  (3) Whenever the importer of the goods that have been released or any person authorized under paragraph 32(6)(a) or subsection 32(7) to account for goods becomes liable under this Act to pay duties on those goods, the owner of the goods at the time of release becomes jointly and severally, or solidarily, liable, with the importer or person authorized, to pay the duties.

Liability for Duties on Goods Reported

Marginal note:Presumption of importation

• 18 (1) For the purposes of this section, all goods reported under section 12 shall be deemed to have been imported.

• Marginal note:Liability of person reporting goods short landed

  (2) Subject to subsections (3) and 20(2.1), any person who reports goods under section 12, and any person for whom that person acts as agent or employee while so reporting, are jointly and severally or solidarily liable for all duties levied on the goods unless one or the other of them proves, within the time that may be prescribed, that the duties have been paid or that the goods

  • (a) were destroyed or lost prior to report or destroyed after report but prior to receipt in a place referred to in paragraph (c) or by a person referred to in paragraph (d);

  • (b) did not leave the place outside Canada from which they were to have been exported;

  • (c) have been received in a customs office, sufferance warehouse, bonded warehouse or duty free shop;

  • (d) have been received by a person who transports or causes to be transported within Canada goods in accordance with subsection 20(1);

  • (e) have been exported; or

  • (f) have been released.

• Marginal note:Rates of duties

  (3) The rates of duties payable on goods under subsection (2) shall be the rates applicable to the goods at the time they were reported under section 12.

• Marginal note:Regulations

  (4) The Governor in Council may make regulations prescribing the circumstances in which such bonds or other security as may be prescribed may be required from any person who is or may become liable for the payment of duties under this section.

Movement and Storage of Goods

Marginal note:Disposition of goods before release

• 19 (1) Subject to section 20, any person who is authorized by an officer or by any prescribed means to do so may

  • (a) deliver goods that have been reported under section 12 or cause them to be delivered from a customs office to another customs office or a sufferance warehouse;

  • (b) deliver such goods or cause them to be delivered from a sufferance warehouse to another sufferance warehouse;

  • (c) where such goods are designated as ships’ stores by regulations made under paragraph 99(g) of the Customs Tariff, remove them or cause them to be removed from a customs office or sufferance warehouse for use on board a conveyance of a class prescribed under that paragraph in accordance with regulations made under that paragraph;

  • (d) export such goods or cause them to be exported directly from a customs office or sufferance warehouse; or

  • (e) where such goods are at a customs office, leave them at that office, subject to such storage charges as may be prescribed.

• Marginal note:Authorization to deliver goods

  (1.1) In prescribed circumstances and under prescribed conditions, a person may be authorized by an officer or by any prescribed means to deliver goods or cause them to be delivered to the place of business of the importer, owner or consignee.

• Marginal note:Movement and storage of goods

  (2) Subject to section 20, where goods that have been reported under section 12 have been described in the prescribed form at a customs office designated for that purpose, any person who is authorized by an officer or by any prescribed means to do so may

  • (a) deliver the goods or cause them to be delivered from a customs office or sufferance warehouse to a bonded warehouse or duty free shop;

  • (b) deliver them or cause them to be delivered from a bonded warehouse to another bonded warehouse or to a duty free shop or from a duty free shop to another duty free shop or to a bonded warehouse;

  • (c) where the goods are designated as ships’ stores by regulations made under paragraph 99(g) of the Customs Tariff, remove them or cause them to be removed from a bonded warehouse for use on board a conveyance of a class prescribed under that paragraph in accordance with regulations made under that paragraph;

  • (d) export them or cause them to be exported directly from a duty free shop in accordance with regulations made under section 30; or

  • (e) export them or cause them to be exported directly from a bonded warehouse.

• Marginal note:Duties removed

  (3) Goods that are removed as ships’ stores under paragraph (1)(c) or exported under paragraph (1)(d) are, from the time of their exportation, no longer charged with duties.

• (4) and (5) [Repealed, 1995, c. 41, s. 3]

Marginal note:Statistics

• 19.1 (1) Subject to this section, any person who is authorized by an officer under subsection 19(2) to deliver goods or cause them to be delivered to a bonded warehouse shall, before the delivery, furnish an officer at a customs office with the statistical code for the goods determined by reference to the Coding System established pursuant to section 22.1 of the Statistics Act.

• Marginal note:Prescribed form

  (2) The statistical code referred to in subsection (1) shall be furnished in the prescribed form and manner of filing with the prescribed information.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations exempting persons or goods, or classes thereof, from the requirements of subsection (1) subject to such conditions, if any, as are specified in the regulations.

Transportation

Marginal note:Transportation of goods

• 20 (1) Except in such circumstances as may be prescribed, every person who transports or causes to be transported within Canada goods that have been imported but have not been released shall do so subject to such conditions and subject to such bonds or other security as may be prescribed.

• Marginal note:Liability of transporter

  (2) Subject to subsection (2.1), every person who transports or causes to be transported within Canada goods, other than goods to which paragraph 32(2)(b) applies, that have been imported but have not been released is liable for all duties on the goods unless the person proves, within the time that may be prescribed, that the goods were

  • (a) destroyed while being so transported;

  • (b) received in a customs office, sufferance warehouse, bonded warehouse or duty free shop;

  • (c) where the goods are designated as ships’ stores by regulations made under paragraph 99(g) of the Customs Tariff, received on board a conveyance of a class prescribed under that paragraph for use on the conveyance in accordance with regulations made under that paragraph;

  • (d) received by another person who is entitled under subsection (1) to transport such goods; or

  • (e) exported.

• Marginal note:Exception

  (2.1) If a person transports within Canada goods to which paragraph 32(2)(b) applies, which the person is required to report under section 12 but which have not been released, the person is liable for all duties on the goods unless the person proves, within the time that may be prescribed, that the goods were

  • (a) destroyed while being transported;

  • (b) received in a customs office, bonded warehouse or duty free shop;

  • (c) if the goods are designated as ships’ stores by regulations made under paragraph 99(g) of the Customs Tariff, received on board a conveyance of a class prescribed under that paragraph for use on the conveyance in accordance with regulations made under that paragraph;

  • (d) exported; or

  • (e) received at the place of business of the importer, owner or consignee.

• Marginal note:Rates of duties

  (3) The rates of duties payable on goods under subsection (2) shall be the rates applicable to the goods at the time they were reported under section 12.

Marginal note:Officer’s access to goods

21 Every person who transports or causes to be transported within Canada goods that have been imported but have not been released shall, where an officer so requests, afford the officer free access to any premises or place under his control that is attached to or forms part of any place where such goods are reported, loaded, unloaded or stored, and open any package or container of such goods or remove any covering therefrom.

Marginal note:Records

• 22 (1) Subject to subsection (2), the following persons shall keep the prescribed records at their place of business in Canada or at any other place that the Minister may designate, for the prescribed period and in the prescribed manner, and shall on the request of an officer make them available to the officer, within the time specified by the officer, and answer truthfully any questions asked by the officer about those records:

  • (a) a person who transports or causes to be transported goods into Canada; or

  • (b) a person who transports or causes to be transported within Canada goods that have been imported but have not been released.

• Marginal note:Exemption

  (2) The Minister may, subject to such terms and conditions as he may specify, exempt any person or class of persons from the requirement to keep records or from the requirement to keep records in Canada where he deems it unnecessary or impracticable to keep records or to keep them in Canada.

Marginal note:Transportation over territory outside Canada

23 Goods that are transported from one place in Canada to another place in Canada over territory or waters outside Canada in accordance with such terms and conditions and subject to such bonds or other security as may be prescribed shall be treated, with respect to their liability to or exemption from duties, as if they had been transported entirely within Canada.

Warehouses and Duty Free Shops

Marginal note:Licences

• 24 (1) Subject to the regulations, the Minister may, where he deems it necessary or desirable to do so, issue to any person qualified under the regulations a licence for the operation of any place

  • (a) as a sufferance warehouse for the examination of imported goods that have not been released, or

  • (b) [Repealed, 1995, c. 41, s. 6]

  • (c) as a duty free shop for the sale of goods free of certain duties or taxes levied on goods under the Customs Tariff, the Excise Act, the Excise Act, 2001, the Excise Tax Act, the Special Import Measures Act or any other law relating to customs, to persons who are about to leave Canada

  and may specify in the licence any restriction as to the classes of goods that may be received therein or the circumstances in which goods may be received therein.

• Definition of duties not to apply

  (1.1) The definition duties in subsection 2(1) does not apply for the purposes of paragraph (1)(c).

• Marginal note:Amendment of licence

  (2) The Minister may, subject to the regulations, amend, suspend, renew, cancel or reinstate a licence issued under subsection (1).

Marginal note:Sufferance warehouse operator’s obligation

25 Subject to the regulations, the operator of a sufferance warehouse shall not refuse to receive any goods brought to the warehouse that qualify under the terms of his licence.

Marginal note:Price of goods sold in duty free shop

• 26 (1) The operator of a duty free shop shall ensure that the prices of goods offered for sale at the duty free shop reflect the extent to which the goods have not been subject to duties and taxes.

• Marginal note:Definition

  (2) In subsection (1), duties means duties or taxes levied under the Customs Tariff, the Excise Act, the Excise Act, 2001, the Excise Tax Act, the Special Import Measures Act or any other law relating to customs.

Marginal note:Officer’s access to goods

27 The operator of a sufferance warehouse, bonded warehouse or duty free shop shall, where an officer so requests, afford the officer free access to the warehouse or duty free shop or any premises or place under his control that is attached to or forms part of the warehouse or duty free shop and open any package or container of goods therein or remove any covering therefrom.

Marginal note:Liability of operator

• 28 (1) The operator of a sufferance warehouse, bonded warehouse or duty free shop is liable for all duties or taxes levied under the Customs Tariff, the Excise Act, the Excise Act, 2001, the Excise Tax Act, the Special Import Measures Act or any other law relating to customs on goods that have been received in the warehouse or duty free shop unless the operator proves that the goods

  • (a) are still in the warehouse or duty free shop;

  • (b) have been destroyed while in the warehouse or duty free shop;

  • (c) have been removed from the warehouse or duty free shop pursuant to section 19;

  • (d) have been taken as a sample or seized under the Firearms Act or any other Act of Parliament; or

  • (e) have been released by an officer.

• (1.1) and (1.2) [Repealed, 2002, c. 22, s. 332]

• Marginal note:Rates

  (2) The rates of duties or taxes payable on goods under subsection (1) shall

  • (a) where the goods have been received in a sufferance warehouse, be the rates applicable to such goods at the time they were reported under section 12; and

  • (b) where the goods have been received in a bonded warehouse or duty free shop, be the rates applicable to such goods at the time they were received therein.

• Definition of duties not to apply

  (3) The definition duties in subsection 2(1) does not apply for the purposes of subsections (1) and (2).

29 [Repealed, 1995, c. 41, s. 7]

Marginal note:Regulations

30 The Governor in Council may make regulations

• (a) prescribing qualifications as to citizenship and residence or any other qualifications that must be met by the operator of a sufferance warehouse or duty free shop;

• (b) prescribing the terms and conditions on which licences for the operation of sufferance warehouses or duty free shops may be issued under section 24, including the security that may be required of operators of the warehouses or shops, the duration of the licences and the fees or the manner of determining fees, if any, to be paid for the licences;

• (c) prescribing the circumstances in which licences for the operation of sufferance warehouses or duty free shops may be issued, amended, suspended, renewed, cancelled or reinstated;

• (d) establishing standards for the operation of and the maintenance of the facilities of sufferance warehouses or duty free shops;

• (e) prescribing the manner of acknowledging receipt of goods in sufferance warehouses or duty free shops;

• (f) establishing the circumstances in which and the extent to which goods may be manipulated, unpacked, packed, altered or combined with other goods while in sufferance warehouses or duty free shops;

• (g) prescribing facilities, equipment and personnel that must be provided at sufferance warehouses or duty free shops;

• (h) prescribing the circumstances in which the operator of a sufferance warehouse may refuse goods that are brought to the warehouse for safe-keeping;

• (i) regulating the transfer of ownership of goods in duty free shops;

• (j) prescribing, with respect to goods, or classes of goods, that are offered for sale in a duty free shop, minimum proportions, by reference to quantity, value or other like standard, that must be of domestic origin;

• (k) prescribing restrictions as to the classes of goods that may be received in sufferance warehouses;

• (l) prescribing circumstances in which goods shall not be received in sufferance warehouses;

• (m) regulating the provision of information by the operator of a duty free shop; and

• (n) otherwise regulating the operation of sufferance warehouses or duty free shops.

Release

Marginal note:Release

31 Subject to section 19, no goods shall be removed from a customs office, sufferance warehouse, bonded warehouse or duty free shop by any person other than an officer in the performance of his or her duties under this or any other Act of Parliament unless the goods have been released by an officer or by any prescribed means.

Accounting and Payment of Duties

Marginal note:Accounting and payment of duties

• 32 (1) Subject to subsections (2) and (4) and any regulations made under subsection (6), and to section 33, no goods shall be released until

  • (a) they have been accounted for by the importer or owner of the goods in the prescribed manner and, if they are to be accounted for in writing, in the prescribed form with the prescribed information; and

  • (b) all duties thereon have been paid.

• Marginal note:Release prior to accounting

  (2) In prescribed circumstances and under prescribed conditions, goods may be released prior to the accounting required under subsection (1) if

  • (a) the importer or owner of the goods makes an interim accounting in the prescribed manner and in the prescribed form with the prescribed information or in the form and with the information that is satisfactory to the Minister; or

  • (b) the goods have been authorized by an officer or by any prescribed means for delivery to, and have been received at, the place of business of the importer, owner or consignee of the goods.

• Marginal note:Accounting after release

  (3) If goods are released under subsection (2), they shall be accounted for within the prescribed time and in the manner described in paragraph (1)(a) by, in the case of goods to which paragraph (2)(a) applies, the person who made the interim accounting under that paragraph in respect of the goods and, in the case of goods to which paragraph (2)(b) applies, by the importer or owner of the goods.

• Marginal note:Release of goods

  (4) In such circumstances, and under such conditions, as may be prescribed, goods imported by courier or as mail may be released prior to the accounting required under subsection (1) and prior to the payment of duties thereon.

• Marginal note:Accounting and payment of duties

  (5) Where goods are released under subsection (4),

  • (a) the person who is authorized under paragraph (6)(a) or subsection (7) to account for the goods shall, within the prescribed time, account for the goods in the manner described in paragraph (1)(a) and that person or the importer or owner of the goods shall, within the prescribed time, pay duties on the goods, or

  • (b) where there is no person authorized under paragraph (6)(a) or subsection (7) to account for the goods, the importer or owner of the goods shall, within the prescribed time, account for the goods in the manner described in paragraph (1)(a) and shall, within the prescribed time, pay duties on the goods.

• Marginal note:Deemed accounting

  (5.1) Except in prescribed circumstances, where the importer or owner of mail that has been released as mail under subsection (4) takes delivery of the mail, the mail shall be deemed to have been accounted for under subsection (5) at the time of its release.

• Marginal note:Regulations

  (6) The Governor in Council may make regulations

  • (a) specifying persons or classes of persons who are authorized to account for goods under this section in lieu of the importer or owner thereof and prescribing the circumstances in which and the conditions under which such persons or classes of persons are so authorized; and

  • (b) prescribing the circumstances in which goods may be released without any requirement of accounting.

• Marginal note:Authorization to account

  (7) The Minister or an officer designated by the President for the purposes of this subsection may authorize any person not resident in Canada to account for goods under this section, in such circumstances and under such conditions as may be prescribed, in lieu of the importer or owner of those goods.

Marginal note:Statistics

• 32.1 (1) Subject to this section, every person who accounts for goods under subsection 32(1), (3) or (5) shall, at the time of accounting, furnish an officer at a customs office with the statistical code for the goods determined by reference to the Coding System established pursuant to section 22.1 of the Statistics Act.

• Marginal note:Prescribed form

  (2) The statistical code referred to in subsection (1) shall be furnished in the prescribed form and manner of filing with the prescribed information.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations exempting persons or goods, or classes thereof, from the requirements of subsection (1) subject to such conditions, if any, as are specified in the regulations.

Marginal note:Correction to declaration of origin

• 32.2 (1) An importer or owner of goods for which preferential tariff treatment under a free trade agreement has been claimed or any person authorized to account for those goods under paragraph 32(6)(a) or subsection 32(7) shall, within ninety days after the importer, owner or person has reason to believe that a declaration of origin for those goods made under this Act is incorrect,

  • (a) make a correction to the declaration of origin in the prescribed manner and in the prescribed form with the prescribed information; and

  • (b) pay any amount owing as duties as a result of the correction to the declaration of origin and any interest owing or that may become owing on that amount.

• (1.1) [Repealed, 1997, c. 14, s. 36]

• Marginal note:Corrections to other declarations

  (2) Subject to regulations made under subsection (7), an importer or owner of goods or a person who is within a prescribed class of persons in relation to goods or is authorized under paragraph 32(6)(a) or subsection 32(7) to account for goods shall, within ninety days after the importer, owner or person has reason to believe that the declaration of origin (other than a declaration of origin referred to in subsection (1)), declaration of tariff classification or declaration of value for duty made under this Act for any of those goods is incorrect,

  • (a) make a correction to the declaration in the prescribed form and manner, with the prescribed information; and

  • (b) pay any amount owing as duties as a result of the correction to the declaration and any interest owing or that may become owing on that amount.

• Marginal note:Correction treated as re-determination

  (3) A correction made under this section after the prescribed day is to be treated for the purposes of this Act as if it were a re-determination under paragraph 59(1)(a).

• Marginal note:Four-year limit on correction obligation

  (4) The obligation under this section to make a correction in respect of imported goods ends four years after the goods are accounted for under subsection 32(1), (3) or (5).

• Marginal note:Correction not to result in refund

  (5) This section does not apply to require or allow a correction that would result in a claim for a refund of duties.

• Marginal note:Diversions

  (6) The obligation under this section to make a correction to a declaration of tariff classification includes an obligation to correct a declaration of tariff classification that is rendered incorrect by a failure, after the goods are accounted for under subsection 32(1), (3) or (5) or, in the case of prescribed goods, after the goods are released without accounting, to comply with a condition imposed under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff or under any regulations made under that Act in respect of a tariff item in that List.

• Marginal note:Regulations

  (7) The Governor in Council may make regulations prescribing the circumstances in which certain goods are exempt from the operation of subsection (6) and the classes of goods in respect of which, the length of time for which and the conditions under which the exemptions apply.

• Marginal note:Duties

  (8) If a declaration of tariff classification is rendered incorrect by a failure referred to in subsection (6), for the purposes of paragraph (2)(b), duties do not include duties or taxes levied under the Excise Act, 2001, the Excise Tax Act or the Special Import Measures Act.

Marginal note:Diversion of goods used as ships’ stores

32.3 If goods are removed or caused to be removed for use as ships’ stores under paragraph 19(1)(c) or (2)(c), and the goods are subsequently diverted to another use, the person who diverted the goods shall, at the time of the diversion,

• (a) report the diversion to an officer at a customs office;

• (b) account for the goods in the prescribed manner and in the prescribed form with the prescribed information; and

• (c) pay as duties on the goods an amount equal to the amount of duties that would be payable on like goods imported in like condition at the time of the diversion.

Marginal note:Release prior to payment of duties

• 33 (1) In prescribed circumstances, goods may be released prior to the payment of duties levied on them.

• Marginal note:Payment of duties

  (2) If goods are released under this section, the person who accounted for the goods under subsection 32(2) or (3) shall pay the duties levied on them within the prescribed time.

• Marginal note:Meaning of duties

  (3) In subsection (2), duties does not include the duties levied under

  • (a) subsection 21.1(1) of the Customs Tariff, if they are paid and collected in accordance with subsection 21.1(2) of that Act; or

  • (b) subsections 21.2(1) and (2) of the Customs Tariff, if they are paid and collected in accordance with subsection 21.2(3) of that Act.

33.1 [Repealed, 2001, c. 25, s. 24]

Marginal note:Notice requiring accounting

33.2 The Minister or any officer designated by the President for the purposes of this section may, by notice served personally or by registered or certified mail, require any person to account, within such reasonable time as may be stipulated in the notice, in the manner described in paragraph 32(1)(a), for any goods as may be designated in the notice.

33.3 [Repealed, 2001, c. 25, s. 25]

Marginal note:Interest

• 33.4 (1) Subject to the regulations, any person who is liable to pay an amount of duties in respect of imported goods shall pay, in addition to the amount, interest at the specified rate, calculated on the outstanding balance of the amount,

  • (a) in the case of goods released prior to the accounting required under subsection 32(1), for the period beginning on the day after the prescribed day and ending on the day on which the amount has been paid in full; and

  • (b) in the case of all other goods, for the period beginning on the day after the day on which the person became liable to pay the amount and ending on the day on which the amount has been paid in full.

• Marginal note:Restriction — prescribed day

  (2) The prescribed day referred to in paragraph (1)(a) falls

  • (a) at the earliest, on the 12th day after the end of the period that begins on the 18th day of a month and ends on the 17th day of the following month and that includes the earlier of

    • (i) the day on which the goods in question are accounted for, and

    • (ii) the last day on which those goods are required to be accounted for; and

  • (b) at the latest, on the 18th day after the end of the period referred to in paragraph (a).

• Marginal note:Regulations — interest-free period

  (3) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations respecting the circumstances and conditions under which any person who is liable to pay an amount of duties in respect of imported goods is not liable to pay interest on that amount for the period specified in the regulations.

Marginal note:Notice requiring payment

33.5 The Minister or any officer designated by the President for the purposes of this section may, by notice served personally or by registered or certified mail, require any person to pay any amount owing as duties, within such reasonable time as may be stipulated in the notice, on any goods as may be designated in the notice.

33.6 [Repealed, 2001, c. 25, s. 27]

Marginal note:Extension of time

• 33.7 (1) The Minister or any officer designated by the President for the purposes of this section may at any time extend in writing the time prescribed by the regulations made under this Part for the accounting of goods or the payment of any amount owing as duties.

• Marginal note:Effect of extension for accounting

  (2) Where the time within which a person must account for goods is extended under subsection (1),

  • (a) the goods shall be accounted for within the time as so extended;

  • (b) if the person accounts for the goods within the extended time, no penalty shall be imposed under section 109.1; and

  • (c) if the person fails to account for the goods within the time as so extended, the extension shall be deemed not to have been made.

• Marginal note:Effect of extension for payment

  (3) Where the time within which a person must pay any amount owing as duties is extended under subsection (1),

  • (a) that amount shall be paid within the time as so extended;

  • (b) if the person pays that amount within the time as so extended, subsection 33.4(1) shall apply in respect of that amount as if the time had not been so extended, but interest payable under that subsection in respect of that amount shall be computed at the prescribed rate rather than at the specified rate; and

  • (c) if the person fails to pay the amount within the time as so extended, the extension shall be deemed not to have been made.

33.8 [Repealed, 2001, c. 25, s. 29]

34 [Repealed, 1995, c. 41, s. 10]

Marginal note:Security and conditions of release

• 35 (1) Except in such circumstances as may be prescribed, no goods shall be released under subsection 32(2) or (4) or section 33 until such deposits, bonds or other security as may be prescribed is given, and any goods that are released under those provisions shall be released subject to such terms and conditions as may be prescribed.

• Marginal note:Obligation to satisfy terms and conditions

  (2) If a deposit, bond or other security given under subsection (1) is subject to terms and conditions prescribed by regulations made under paragraph 166(1)(b), the person who has given the deposit, bond or other security shall satisfy those terms and conditions.

Marking of Goods

Marginal note:Requirement to comply with marking regulations

35.01 No person shall import goods that are required to be marked by any regulations made under section 19 of the Customs Tariff unless the goods are marked in accordance with those regulations.

• 35.02 (1) [Repealed, 2001, c. 25, s. 30]

• Marginal note:Notice requiring marking or compliance

  (2) The Minister or any officer designated by the President for the purposes of this section may, by notice served personally or by registered or certified mail, require any person

  • (a) to mark imported goods in accordance with the regulations made under section 19 of the Customs Tariff, within such reasonable time as may be stipulated in the notice, if there has been a failure to comply with section 35.01 with respect to the goods; or

  • (b) to comply with section 35.01 in respect of any goods designated in the notice that will subsequently be imported by the person.

• (3) [Repealed, 2001, c. 25, s. 30]

• Marginal note:Goods imported from a NAFTA country

  (4) If a person imports goods of a prescribed class from a NAFTA country, that person is not liable to a penalty under section 109.1 unless

  • (a) the person has previously failed to comply with section 35.01 in respect of imported goods and has been given notice pursuant to subsection (2);

  • (b) the goods with respect to which there has been a failure to comply with section 35.01 or a notice given pursuant to subsection (2) have been released without being marked in the manner referred to in section 35.01; or

  • (c) the imported goods have been marked in a deceptive manner so as to mislead another person as to the country or geographic area of origin of the goods.

• (5) [Repealed, 2001, c. 25, s. 30]

Origin of Goods

Marginal note:Proof of origin

• 35.1 (1) Subject to any regulations made under subsection (4), proof of origin, in the prescribed form with the prescribed information and with the information, statements or proof required by any regulations made under subsection (4), shall be furnished in respect of all goods that are imported.

• Marginal note:When furnished

  (2) Proof of origin of goods shall be furnished under subsection (1) to an officer at such time and place and in such manner as may be prescribed.

• Marginal note:Who furnishes

  (3) Subject to any regulations made under subsection (4), proof of origin of goods shall be furnished in accordance with subsection (1) by the importer or owner of the goods.

• Marginal note:Certificate of origin completed by importer

  (3.1) If an importer of goods for which preferential tariff treatment under the CPTPP or CUSMA will be claimed is the person who certifies that the goods meet the rules of origin set out in, or contemplated by, the CPTPP or CUSMA, the importer shall do so in writing, in the prescribed form with the prescribed information, and on the basis of supporting documents that the importer has or supporting documents that are provided by the exporter or producer.

• Marginal note:Regulations

  (4) The Governor in Council, on the recommendation of the Minister, may make regulations

  • (a) specifying persons or classes of persons who are authorized to furnish proof of origin of goods under subsection (1) in lieu of the importer or owner thereof and prescribing the circumstances in which and the conditions, if any, under which such persons or classes of persons are so authorized;

  • (b) specifying, for the purpose of subsection (1), the information, statements or proof required in addition to the prescribed information; and

  • (c) exempting persons or goods, or classes thereof, from the requirements of subsection (1) subject to such conditions, if any, as are specified in the regulations.

• Marginal note:Denial or withdrawal of preferential tariff treatment

  (5) Preferential tariff treatment under a free trade agreement may be denied or withdrawn in respect of goods for which that treatment is claimed if the importer, owner or other person required to furnish proof of origin of the goods under this section fails to comply with any provision of this Act or the Customs Tariff, or any regulation made under either of those Acts, concerning that preferential tariff treatment.

• (6) [Repealed, 1997, c. 14, s. 37]

Abandoned Goods

Marginal note:Abandonment of goods to the Crown

• 36 (1) The owner of goods that have been imported but have not been released may, with the authorization of an officer and subject to the conditions set out in subsection (2), abandon the goods to Her Majesty in right of Canada.

• Marginal note:Conditions of abandonment

  (2) Any person who abandons goods to Her Majesty under subsection (1) is liable for all reasonable expenses incurred by Her Majesty in the disposal of the goods where they are disposed of otherwise than by sale.

Unclaimed Goods

Marginal note:Unclaimed goods

• 37 (1) Goods, other than goods of a prescribed class, that have not been removed from a customs office, sufferance warehouse or duty free shop within such period of time as may be prescribed may be deposited by an officer in a place of safe-keeping designated by the Minister for that purpose.

• Marginal note:Unclaimed goods in a bonded warehouse

  (2) Goods, other than goods of a class prescribed by regulations made under subparagraph 99(f)(xii) of the Customs Tariff, that have not been removed from a bonded warehouse within such time as may be prescribed by regulations made under subparagraph 99(f)(xi) of that Act may be deposited by an officer in a place of safe-keeping designated by the Minister for that purpose.

• Marginal note:Extension of prescribed period

  (3) The Minister may extend any period of time prescribed pursuant to subsection (1) or (2) in respect of any particular goods.

• Marginal note:Deeming provision

  (4) A place of safe-keeping referred to in this section shall, for the purposes of this Act, be deemed to be a customs office.

Marginal note:Risk and storage charges

• 38 (1) Goods that are deposited in a place of safe-keeping under section 37 shall be kept there at the risk of the owner and importer of those goods, and the owner and importer are jointly and severally, or solidarily, liable for any storage charges that may be prescribed and any expenses incurred in moving the goods from the customs office, sufferance warehouse, bonded warehouse or duty free shop to the place of safe-keeping.

• Marginal note:No removal until expenses paid

  (2) No goods shall be removed by any person other than an officer from a place of safe-keeping referred to in section 37 until the charges and expenses referred to in subsection (1) have been paid.

Marginal note:Unclaimed goods forfeit

• 39 (1) Goods that have not been removed from a place of safe-keeping referred to in section 37 within such period of time after they were deposited therein as may be prescribed are, at the termination of that period of time, forfeit.

• Marginal note:Expenses of disposal

  (2) The importer of goods that are forfeit under subsection (1) and the owner of those goods at the time of forfeiture are jointly and severally, or solidarily, liable for all reasonable expenses incurred by Her Majesty in right of Canada in the disposal of the goods if they are disposed of otherwise than by sale.

Goods of a Prescribed Class

Marginal note:Goods forfeit if not removed

• 39.1 (1) Goods of a prescribed class that have not been removed from a customs office, sufferance warehouse or duty free shop within such period of time as may be prescribed are, at the end of that period of time, forfeit.

• Marginal note:Goods in bonded warehouse forfeit if not removed

  (2) Goods of a class prescribed by regulations made under subparagraph 99(f)(xii) of the Customs Tariff that have not been removed from a bonded warehouse within such period of time as may be prescribed by regulations made under subparagraph 99(f)(xi) of that Act are, at the end of that period of time, forfeit.

Records

Marginal note:Importers’ records

• 40 (1) Every person who imports goods or causes goods to be imported for sale or for any industrial, occupational, commercial, institutional or other like use or any other use that may be prescribed shall keep at the person’s place of business in Canada or at any other place that may be designated by the Minister any records in respect of those goods in any manner and for any period of time that may be prescribed and shall, where an officer so requests, make them available to the officer, within the time specified by the officer, and answer truthfully any questions asked by the officer in respect of the records.

• Marginal note:Minister’s request

  (2) If, in the opinion of the Minister, a person has not kept records in accordance with subsection (1), the Minister may request that person to comply with that subsection in respect of the records.

• Marginal note:Requirement to keep records

  (3) The following persons shall keep at their place of business or at any other place that may be designated by the Minister the prescribed records with respect to the prescribed goods, in the manner and for the period that may be prescribed, and shall, where an officer requests, make them available to the officer, within the time specified by the officer, and answer truthfully any questions asked by the officer in respect of the records:

  • (a) a person who is granted a licence under section 24;

  • (b) a person who receives goods authorized for delivery to the person’s place of business in the circumstances set out in paragraph 32(2)(b);

  • (c) a person who is authorized under paragraph 32(6)(a) or subsection 32(7) to account for goods;

  • (d) a person who is granted a certificate under section 90 of the Customs Tariff; and

  • (e) a person who is granted a licence under section 91 of that Act.

• Marginal note:Minister’s request

  (4) Where, in the opinion of the Minister, a person has not kept records in respect of goods in accordance with subsection (3), the Minister may request that person to comply with that subsection in respect of the goods.

Marginal note:Detention of goods

• 41 (1) Any goods imported by or on behalf of a person to whom a request is made under subsection 40(2) at any time after the request is made may be detained by an officer at the expense of that person until the request is complied with.

• Marginal note:Disposition of detained goods

  (2) Goods that are detained under subsection (1) may be deposited in a place of safe-keeping in accordance with subsection 37(1) as if they were unclaimed and may be dealt with thereafter under sections 37 to 39.

Definition of dwelling-house

• 42 (1) In this section, dwelling-house means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence, and includes

  • (a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway; and

  • (b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence.

• Marginal note:Inspections

  (2) An officer, or an officer within a class of officers, designated by the President for the purposes of this section, may at all reasonable times, for any purpose related to the administration or enforcement of this Act,

  • (a) inspect, audit or examine any record of a person that relates or may relate to the information that is or should be in the records of the person or to any amount paid or payable under this Act;

  • (b) examine property in an inventory of a person and any property or process of, or matter relating to, the person, an examination of which may assist the officer in determining the accuracy of the inventory of the person or in ascertaining the information that is or should be in the records of the person or any amount paid or payable by the person under this Act;

  • (c) subject to subsection (3), enter any premises or place where any business is carried on, any property is kept, anything is done in connection with any business or any records are or should be kept; and

  • (d) require the owner or manager of the property or business and any other person on the premises or place to give the officer all reasonable assistance and to answer truthfully any question, and, for that purpose, require the owner, manager or other person designated by the owner or manager to attend at the premises or place with the officer.

• Marginal note:Prior authorization

  (3) If any premises or place referred to in paragraph (2)(c) is a dwelling-house, an officer may not enter that dwelling-house without the consent of the occupant except under the authority of a warrant under subsection (4).

• Marginal note:Warrant

  (4) On ex parte application by the Minister, a judge may issue a warrant authorizing an officer to enter a dwelling-house subject to the conditions that may be specified in the warrant, if the judge is satisfied by information on oath that

  • (a) there are reasonable grounds to believe that the dwelling-house is a premises or place referred to in paragraph (2)(c);

  • (b) entry into the dwelling-house is necessary; and

  • (c) entry into the dwelling-house has been, or there are reasonable grounds to believe that entry into the dwelling-house will be, refused.

• Marginal note:Other access to document

  (5) If the judge is not satisfied that entry into that dwelling-house is necessary for any purpose relating to the administration or enforcement of this Act but is satisfied that access to a document or property that is or should be kept in the dwelling-house has been or may be expected to be refused, the judge may

  • (a) order the occupant of the dwelling-house to provide the officer with reasonable access to any document or property; and

  • (b) make any other order that is appropriate in the circumstances to carry out the purposes of this Act.

Verifications

Marginal note:Methods of verification

42.01 An officer, or an officer within a class of officers, designated by the President for the purposes of this section may conduct a verification of origin (other than a verification of origin referred to in section 42.1), verification of tariff classification or verification of value for duty in respect of imported goods in the manner that is prescribed and may for that purpose at all reasonable times enter any prescribed premises.

Verifications under a Free Trade Agreement

Origin of Goods, Duty Relief and Drawback

Marginal note:Methods of verification

• 42.1 (1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, or any person, or any person within a class of persons, designated by the President to act on behalf of such an officer, may, subject to the prescribed conditions,

  • (a) conduct a verification of origin of goods for which preferential tariff treatment under a free trade agreement, other than a free trade agreement referred to in subsection (1.1), is claimed

    • (i) by entering any prescribed premises or place at any reasonable time, or

    • (ii) in the prescribed manner;

  • (b) enter any prescribed premises or place at any reasonable time to verify the amount, if any, of

    • (i) a relief under section 89 of the Customs Tariff from the payment of any duties payable in respect of imported goods that are subsequently exported to a NAFTA country, or

    • (ii) a drawback under section 113 of the Customs Tariff of duties paid in respect of imported goods that are subsequently exported to a NAFTA country; or

  • (c) enter any prescribed premises or place at any reasonable time to verify the amount, if any, of

    • (i) a relief under section 89 of the Customs Tariff from the payment of any duties payable in respect of imported goods that are subsequently exported to a CUSMA country, or

    • (ii) a drawback under section 113 of the Customs Tariff of duties paid in respect of imported goods that are subsequently exported to a CUSMA country.

• Marginal note:Method of verification — certain agreements

  (1.1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, or any person, or any person within a class of persons, designated by the President to act on behalf of such an officer, may, subject to any prescribed conditions, conduct any of the following:

  • (a) a verification of origin of goods for which preferential tariff treatment under CEFTA is claimed, by requesting in writing that the customs administration of the EFTA state of export conduct a verification and provide an opinion as to whether the goods are originating within the meaning of Annex C of CEFTA;

  • (a.1) a verification of origin of goods for which preferential tariff treatment under CUFTA 2017 is claimed, by requesting in writing that the customs administration of Ukraine conduct a verification and provide a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA 2017;

  • (b) a verification of origin of goods for which preferential tariff treatment under CUFTA is claimed, by requesting in writing that the customs administration of Ukraine conduct a verification and provide a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA;

  • (c) a verification of origin of goods for which preferential tariff treatment under CETA is claimed, by requesting in writing that the customs administration of the EU country or other CETA beneficiary of export conduct a verification and provide a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA; and

  • (d) a verification of origin of goods for which preferential tariff treatment under CUKTCA is claimed, by requesting in writing that the customs administration of the CUKTCA beneficiary of export conduct a verification and provide a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in CUKTCA.

• Marginal note:Withdrawal of preferential tariff treatment

  (2) If an exporter, producer or prescribed importer of goods that are subject to a verification of origin under paragraph (1)(a) fails to comply with the prescribed requirements or, in the case of a verification of origin under subparagraph (1)(a)(i), does not consent to the verification of origin in the prescribed manner and within the prescribed time, preferential tariff treatment under a free trade agreement, other than a free trade agreement referred to in subsection (1.1), may be denied or withdrawn from the goods.

• Marginal note:Withdrawal of preferential tariff treatment under CEFTA

  (3) Preferential tariff treatment under a free trade agreement referred to in subsection (1.1) may be denied or withdrawn from the goods in any of the following circumstances:

  • (a) in the case of CEFTA, if the EFTA state of export fails to conduct a verification or provide an opinion as to whether the goods are originating;

  • (a.01) in the case of CUFTA 2017, if Ukraine fails to conduct a verification or provide a written report as to whether the goods are originating;

  • (a.1) in the case of CUFTA, if Ukraine fails to conduct a verification or provide a written report as to whether the goods are originating;

  • (a.2) in the case of CETA, if the EU country or other CETA beneficiary of export fails to conduct a verification or provide a written report as to whether the goods are originating;

  • (a.3) in the case of CUKTCA, if the CUKTCA beneficiary of export fails to conduct a verification or provide a written report as to whether the goods are originating;

  • (b) if an officer or other person designated under subsection (1.1) is unable to determine whether the goods are originating; or

  • (c) in any other prescribed circumstances.

Statement of Origin

Marginal note:Statement of origin

• 42.2 (1) On completion of a verification of origin under paragraph 42.1(1)(a), an officer designated under subsection 42.1(1) shall provide the exporter, producer or prescribed importer whose goods are subject to the verification of origin with a statement as to whether the goods are eligible, under the Customs Tariff, for the preferential tariff treatment that was claimed.

• Marginal note:Basis of statement

  (2) A statement referred to in subsection (1) must include any findings of fact or law on which it was based.

Effective Date of Re-determination of Origin

Definition of customs administration

• 42.3 (1) In this section, customs administration has the meaning assigned to that expression by Article 514 of NAFTA, Article E-14 of CCFTA, Article V.14 of CCRFTA or Article 5.1 of CHFTA, as the case may be.

• Marginal note:Effective date of redetermination or further redetermination of origin of goods

  (2) Subject to subsection (4), a redetermination or further redetermination of origin does not take effect until notice of it is given to the importer of the goods and any person who completed and signed a Certificate of Origin for the goods if the result of the redetermination or further redetermination of origin made under subsection 59(1) in respect of goods for which preferential tariff treatment under NAFTA, CCFTA, CCRFTA or CHFTA is claimed and that are the subject of a verification of origin under this Act is that

  • (a) the goods are not eligible for that preferential tariff treatment on the basis of the tariff classification or value of one or more materials used in their production; and

  • (b) that tariff classification or value differs from the tariff classification or value applied to those materials by the NAFTA country from which the goods were exported, from Chile, from Costa Rica or from Honduras, as the case may be.

• Marginal note:Limitation

  (3) A redetermination or further redetermination of origin referred to in subsection (2) shall not be applied to goods imported before the date on which the notice was given if the customs administration of the NAFTA country from which the goods were exported, of Chile, of Costa Rica or of Honduras, as the case may be, has, before that date,

  • (a) given an advance ruling under Article 509 of NAFTA, Article E-09 of CCFTA, Article V.9 of CCRFTA, paragraph 1 of Article 5.10 or paragraph 11 of Article 6.2 of CHFTA as the case may be, or given another ruling referred to in paragraph 12 of Article 506 of NAFTA, paragraph 12 of Article E-06 of CCFTA, paragraph 15 of Article V.6 of CCRFTA, or paragraph 15 of Article 5.7 of CHFTA, as the case may be, on the tariff classification or value of the materials referred to in subsection (2); or

  • (b) given consistent treatment with respect to the tariff classification or value of the materials referred to in subsection (2) on their importation into the NAFTA country, Chile, Costa Rica or Honduras, as the case may be.

• Marginal note:Postponement of effective date

  (4) The date on which a redetermination or further redetermination of origin referred to in subsection (2) takes effect shall be postponed for a period not exceeding ninety days if the importer of the goods that are the subject of the redetermination or further redetermination or any person who completed and signed a Certificate of Origin for the goods establishes to the satisfaction of the Minister that the importer or the person, as the case may be, has relied in good faith, to the detriment of the importer or person, on the tariff classification or value applied to the materials referred to in that subsection by the customs administration of the NAFTA country from which the goods were exported, of Chile, Costa Rica or of Honduras, as the case may be.

• Marginal note:Effect of detrimental reliance under CEFTA

  (5) If an exporter of goods from an EFTA state demonstrates, to the satisfaction of the Minister, that it has relied, in good faith and to its detriment, on a ruling made by the Agency or the customs administration of an EFTA state with respect to the tariff classification or value of a non-originating material used in the production of goods, a redetermination of origin by the Agency in respect of goods for which preferential tariff treatment under CEFTA is claimed shall apply only to importations of the goods made after the date of the redetermination.

Denial or Withdrawal of Benefit of Preferential Tariff Treatment Under Certain Free Trade Agreements

Marginal note:Definition of identical goods

• 42.4 (1) In this section, identical goods has the meaning assigned to that expression by the provision, set out in column 2 of Part 2 of the schedule, of an agreement set out in column 1.

• Marginal note:Denial or withdrawal of benefit — specified countries

  (2) Despite section 24 of the Customs Tariff, the Minister may, subject to any prescribed conditions, deny or withdraw preferential tariff treatment under an agreement set out in column 1 of Part 2 of the schedule in respect of goods for which that treatment is claimed if the exporter, producer or prescribed importer of the goods has made false representations that identical goods exported, produced or imported by that exporter, producer or prescribed importer and for which that treatment was claimed were eligible for that treatment.

Duty Evasion

Marginal note:Definition of duty evasion

42.5 In sections 42.6 and 42.7, duty evasion means the evasion of anti-dumping, countervailing or safeguard duties that are imposed by a CUSMA country other than Canada.

Marginal note:Duty evasion verification

• 42.6 (1) If requested by a CUSMA country under paragraph 5 of Article 10.7 of CUSMA, any officer, or any officer within a class of officers, designated by the President for the purposes of this section may — for the purpose of enabling the requesting CUSMA country to determine whether goods exported from Canada to that country are subject to anti-dumping, countervailing, or safeguard duties imposed by that country — conduct a duty evasion verification that includes, among other things, obtaining information from an exporter or producer of goods in Canada.

• Marginal note:Paragraph 7(a) of Article 10.7 of CUSMA

  (2) The duty evasion verification may be conducted only if Canada and the requesting CUSMA country have mutually agreed to conditions and procedures and the verification is conducted in accordance with those conditions and procedures.

• Marginal note:Power to enter

  (3) In conducting the duty evasion verification, the officer may enter the premises of an exporter or producer of goods.

Marginal note:Report

42.7 After a duty evasion verification has been completed, an officer shall provide the requesting CUSMA country with a report that contains any relevant information obtained from an exporter or producer of goods in Canada during the verification.

Production of Documents

Marginal note:Production of records

• 43 (1) The Minister may, for any purpose related to the administration or enforcement of this Act, including the collection of any amount owing under this Act by any person, by notice served personally or sent by registered or certified mail, require any person to provide any record at a place specified by the Minister and within any reasonable time that may be stipulated in the notice.

• Marginal note:Compliance

  (2) Any person who is required to provide any records, books, letters, accounts, invoices, statements or other documents or information under subsection (1) shall, notwithstanding any other law to the contrary but subject to subsection (3), do so as required.

• Marginal note:Application of section 232 of the Income Tax Act

  (3) The definitions lawyer and solicitor-client privilege in subsection 232(1) of the Income Tax Act, and subsection 232(2) of that Act, apply with respect to a requirement under subsection (1) as if the reference in subsection 232(2) to section 231.2 of that Act were a reference to this section.

Advance Rulings

Marginal note:Advance rulings

• 43.1 (1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section shall, before goods are imported, on application by any member of a prescribed class that is made within the prescribed time, in the prescribed form and manner of filing with the prescribed information, give an advance ruling with respect to

  • (a) whether the goods qualify as originating goods and are entitled to the benefit of preferential tariff treatment under a free trade agreement;

  • (b) in the case of goods exported from a country or territory set out in column 1 of Part 3 of the schedule, any matter, other than those referred to in paragraphs (a) and (c), concerning those goods that is set out in the provision set out in column 2; and

  • (c) the tariff classification of the goods.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations respecting advance rulings, including regulations respecting

  • (a) the application of an advance ruling;

  • (b) the modification or revocation of an advance ruling, including whether the modification or revocation applies retroactively;

  • (c) the authority to request supplementary information in respect of an application for an advance ruling; and

  • (d) the circumstances in which the issuance of advance rulings may be declined or postponed.

PART IIICalculation of Duty

Duties Based on Percentage Rates

Valuation for Duty

Marginal note:Ad valorem rates of duty

44 If duties, other than duties or taxes levied under the Excise Tax Act, the Excise Act, 2001 or the Select Luxury Items Tax Act, are imposed on goods at a percentage rate, such duties shall be calculated by applying the rate to a value determined in accordance with sections 45 to 55.

Interpretation

Marginal note:Definitions

• 45 (1) In this section and sections 46 to 55,

  computed value

  computed value means, in respect of goods, the value of the goods determined in accordance with section 52; (valeur reconstituée)

  country of export

  country of export means, in respect of goods, the country from which the goods are shipped directly to Canada; (pays d’exportation)

  deductive value

  deductive value means, in respect of goods, the value of the goods determined in accordance with subsection 51(2); (valeur de référence)

  goods of the same class or kind

  goods of the same class or kind, in relation to goods being appraised, means imported goods that

  • (a) are within a group or range of imported goods produced by a particular industry or industry sector that includes identical goods and similar goods in relation to the goods being appraised, and

  • (b) for the purposes of

    • (i) section 51, were produced in any country and exported from any country, and

    • (ii) section 52, were produced in and exported from the same country as the country in and from which the goods being appraised were produced and exported; (marchandises de même nature ou de même espèce)

  identical goods

  identical goods, in relation to goods being appraised, means imported goods that

  • (a) are the same in all respects, including physical characteristics, quality and reputation, as the goods being appraised, except for minor differences in appearance that do not affect the value of the goods,

  • (b) were produced in the same country as the country in which the goods being appraised were produced, and

  • (c) were produced by or on behalf of the person by or on behalf of whom the goods being appraised were produced,

  but does not include imported goods where engineering, development work, art work, design work, plans or sketches undertaken in Canada were supplied, directly or indirectly, by the purchaser of those imported goods free of charge or at a reduced cost for use in connection with the production and sale for export of those imported goods; (marchandises identiques)

  price paid or payable

  price paid or payable, in respect of the sale of goods for export to Canada, means the aggregate of all payments made or to be made, directly or indirectly, in respect of the goods by the purchaser to or for the benefit of the vendor; (prix payé ou à payer)

  produce

  produce includes grow, manufacture and mine; (produit)

  purchaser in Canada

  purchaser in Canada has the meaning assigned by the regulations; (acheteur au Canada)

  similar goods

  similar goods, in relation to goods being appraised, means imported goods that

  • (a) closely resemble the goods being appraised in respect of their component materials and characteristics,

  • (b) are capable of performing the same functions as, and of being commercially interchangeable with, the goods being appraised,

  • (c) were produced in the same country as the country in which the goods being appraised were produced, and

  • (d) were produced by or on behalf of the person by or on behalf of whom the goods being appraised were produced,

  but does not include imported goods where engineering, development work, art work, design work, plans or sketches undertaken in Canada were supplied, directly or indirectly, by the purchaser of those imported goods free of charge or at a reduced cost for use in connection with the production and sale for export of those imported goods; (marchandises semblables)

  sufficient information

  sufficient information, in respect of the determination of any amount, difference or adjustment, means objective and quantifiable information that establishes the accuracy of the amount, difference or adjustment; (renseignements suffisants)

  transaction value

  transaction value, in respect of goods, means the value of the goods determined in accordance with subsection 48(4). (valeur transactionnelle)

• Marginal note:Goods deemed to be identical goods or similar goods

  (2) For the purposes of this section and sections 46 to 55, where there are no identical goods or similar goods, as the case may be, in relation to goods being appraised but there are goods that would be identical goods or similar goods, as the case may be, if they were produced by or on behalf of the person by or on behalf of whom the goods being appraised were produced, those goods shall be deemed to be identical goods or similar goods, as the case may be.

• Marginal note:Related persons

  (3) For the purposes of sections 46 to 55, persons are related to each other if

  • (a) they are individuals connected by blood relationship, marriage, common-law partnership or adoption within the meaning of subsection 251(6) of the Income Tax Act;

  • (b) one is an officer or director of the other;

  • (c) each such person is an officer or director of the same two corporations, associations, partnerships or other organizations;

  • (d) they are partners;

  • (e) one is the employer of the other;

  • (f) they directly or indirectly control or are controlled by the same person;

  • (g) one directly or indirectly controls or is controlled by the other;

  • (h) any other person directly or indirectly owns, holds or controls five per cent or more of the outstanding voting stock or shares of each such person; or

  • (i) one directly or indirectly owns, holds or controls five per cent or more of the outstanding voting stock or shares of the other.

Determination of Value for Duty

Marginal note:Determination of value for duty

46 The value for duty of imported goods shall be determined in accordance with sections 47 to 55.

Order of Consideration of Methods of Valuation

Marginal note:Primary basis of appraisal

• 47 (1) The value for duty of goods shall be appraised on the basis of the transaction value of the goods in accordance with the conditions set out in section 48.

• Marginal note:Subsidiary bases of appraisal

  (2) Where the value for duty of goods is not appraised in accordance with subsection (1), it shall be appraised on the basis of the first of the following values, considered in the order set out herein, that can be determined in respect of the goods and that can, under sections 49 to 52, be the basis on which the value for duty of the goods is appraised:

  • (a) the transaction value of identical goods that meets the requirements set out in section 49;

  • (b) the transaction value of similar goods that meets the requirements set out in section 50;

  • (c) the deductive value of the goods; and

  • (d) the computed value of the goods.

• Marginal note:Request of importer

  (3) Notwithstanding subsection (2), on the written request of the importer of any goods being appraised made prior to the commencement of the appraisal of those goods, the order of consideration of the values referred to in paragraphs (2)(c) and (d) shall be reversed.

• Marginal note:Residual basis of appraisal

  (4) Where the value for duty of goods is not appraised on the basis of any of the values referred to in paragraphs (2)(a) to (d), the value for duty of those goods shall be appraised under section 53.

Transaction Value of the Goods

Marginal note:Transaction value as primary basis of appraisal

• 48 (1) Subject to subsections (6) and (7), the value for duty of goods is the transaction value of the goods if the goods are sold for export to Canada to a purchaser in Canada and the price paid or payable for the goods can be determined and if

  • (a) there are no restrictions respecting the disposition or use of the goods by the purchaser thereof, other than restrictions that

    • (i) are imposed by law,

    • (ii) limit the geographical area in which the goods may be resold, or

    • (iii) do not substantially affect the value of the goods;

  • (b) the sale of the goods by the vendor to the purchaser or the price paid or payable for the goods is not subject to some condition or consideration, with respect to the goods, in respect of which a value cannot be determined;

  • (c) when any part of the proceeds of any subsequent resale, disposal or use of the goods by the purchaser is to accrue, directly or indirectly, to the vendor, the price paid or payable for the goods includes the value of that part of the proceeds or the price is adjusted in accordance with paragraph (5)(a); and

  • (d) the purchaser and the vendor of the goods are not related to each other at the time the goods are sold for export or, where the purchaser and the vendor are related to each other at that time,

    • (i) their relationship did not influence the price paid or payable for the goods, or

    • (ii) the importer of the goods demonstrates that the transaction value of the goods meets the requirement set out in subsection (3).

• Marginal note:Procedure in application of paragraph (1)(d)

  (2) In the application of paragraph (1)(d), where the purchaser and the vendor of goods being appraised are related to each other at the time the goods are sold for export and the officer who is appraising the value for duty of the goods has grounds to believe that the requirement set out in subparagraph (1)(d)(i) is not met, the officer shall notify the importer of the goods of such grounds and, on the written request of the importer, the notification shall be in writing.

• Marginal note:Requirement for accepting transaction value where purchaser and vendor related

  (3) For the purposes of subparagraph (1)(d)(ii), the transaction value of goods being appraised shall, taking into consideration any relevant factors including, without limiting the generality of the foregoing, such factors and differences as may be prescribed, closely approximate one of the following values that is in respect of identical goods or similar goods exported at the same or substantially the same time as the goods being appraised and is the value for duty of the goods to which it relates:

  • (a) the transaction value of identical goods or similar goods in a sale of those goods for export to Canada between a vendor and purchaser who are not related to each other at the time of the sale;

  • (b) the deductive value of identical goods or similar goods; or

  • (c) the computed value of identical goods or similar goods.

• Marginal note:Determination of transaction value

  (4) The transaction value of goods shall be determined by ascertaining the price paid or payable for the goods when the goods are sold for export to Canada and adjusting the price paid or payable in accordance with subsection (5).

• Marginal note:Adjustment of price paid or payable

  (5) The price paid or payable in the sale of goods for export to Canada shall be adjusted

  • (a) by adding thereto amounts, to the extent that each such amount is not already included in the price paid or payable for the goods, equal to

    • (i) commissions and brokerage in respect of the goods incurred by the purchaser thereof, other than fees paid or payable by the purchaser to his agent for the service of representing the purchaser abroad in respect of the sale,

    • (ii) the packing costs and charges incurred by the purchaser in respect of the goods, including the cost of cartons, cases and other containers and coverings that are treated for customs purposes as being part of the imported goods and all expenses of packing incident to placing the goods in the condition in which they are shipped to Canada,

    • (iii) the value of any of the following goods and services, determined in the manner prescribed, that are supplied, directly or indirectly, by the purchaser of the goods free of charge or at a reduced cost for use in connection with the production and sale for export of the imported goods, apportioned to the imported goods in a reasonable manner and in accordance with generally accepted accounting principles:

      • (A) materials, components, parts and other goods incorporated in the imported goods,

      • (B) tools, dies, moulds and other goods utilized in the production of the imported goods,

      • (C) any materials consumed in the production of the imported goods, and

      • (D) engineering, development work, art work, design work, plans and sketches undertaken elsewhere than in Canada and necessary for the production of the imported goods,

    • (iv) royalties and licence fees, including payments for patents, trademarks and copyrights, in respect of the goods that the purchaser of the goods must pay, directly or indirectly, as a condition of the sale of the goods for export to Canada, exclusive of charges for the right to reproduce the goods in Canada,

    • (v) the value of any part of the proceeds of any subsequent resale, disposal or use of the goods by the purchaser thereof that accrues or is to accrue, directly or indirectly, to the vendor, and

    • (vi) the cost of transportation of, the loading, unloading and handling charges and other charges and expenses associated with the transportation of, and the cost of insurance relating to the transportation of, the goods to the place within the country of export from which the goods are shipped directly to Canada;

  • (b) by deducting therefrom amounts, to the extent that each such amount is included in the price paid or payable for the goods, equal to

    • (i) the cost of transportation of, the loading, unloading and handling charges and other charges and expenses associated with the transportation of, and the cost of insurance relating to the transportation of, the goods from the place within the country of export from which the goods are shipped directly to Canada, and

    • (ii) any of the following costs, charges or expenses if the cost, charge or expense is identified separately from the price paid or payable for the goods:

      • (A) any reasonable cost, charge or expense that is incurred for the construction, erection, assembly or maintenance of, or technical assistance provided in respect of, the goods after the goods are imported, and

      • (B) any duties and taxes paid or payable by reason of the importation of the goods or sale of the goods in Canada, including, without limiting the generality of the foregoing, any duties or taxes levied on the goods under the Excise Tax Act, the Special Import Measures Act, the Customs Tariff, the Excise Act, 2001, the Select Luxury Items Tax Act or any other law relating to customs; and

  • (c) by disregarding any rebate of, or other decrease in, the price paid or payable for the goods that is effected after the goods are imported.

• Marginal note:Effect of absence of sufficient information

  (6) Where there is not sufficient information to determine any of the amounts required to be added to the price paid or payable in respect of any goods being appraised, the value for duty of the goods shall not be appraised under this section.

• Marginal note:Where information inaccurate

  (7) Where an officer who is appraising the value for duty of goods believes on reasonable grounds that the information submitted in support of the transaction value of the goods as determined under subsection (4) is inaccurate, the officer shall determine, in accordance with the prescribed procedure, that the value for duty of the goods shall not be appraised under this section.

Transaction Value of Identical Goods

Marginal note:Transaction value of identical goods as value for duty

• 49 (1) Subject to subsections (2) to (5), where the value for duty of goods is not appraised under section 48, the value for duty of the goods is, if it can be determined, the transaction value of identical goods, in a sale of those goods for export to Canada, if that transaction value is the value for duty of the identical goods and the identical goods were exported at the same or substantially the same time as the goods being appraised and were sold under the following conditions:

  • (a) at the same or substantially the same trade level as the goods being appraised; and

  • (b) in the same or substantially the same quantities as the goods being appraised.

• Marginal note:Where identical goods sold under different conditions

  (2) Where the value for duty of goods being appraised cannot be determined under subsection (1) because identical goods were not sold under the conditions described in paragraphs (1)(a) and (b), there shall be substituted therefor, in the application of subsection (1), identical goods sold under any of the following conditions:

  • (a) at the same or substantially the same trade level as the goods being appraised but in different quantities;

  • (b) at a trade level different from that of the goods being appraised but in the same or substantially the same quantities; or

  • (c) at a trade level different from that of the goods being appraised and in different quantities.

• Marginal note:Adjustment of transaction value of identical goods

  (3) For the purposes of determining the value for duty of goods being appraised under subsection (1), the transaction value of identical goods shall be adjusted by adding thereto or deducting therefrom, as the case may be, amounts to account for

  • (a) commercially significant differences between the costs, charges and expenses referred to in subparagraph 48(5)(a)(vi) in respect of the identical goods and those costs, charges and expenses in respect of the goods being appraised that are attributable to differences in distances and modes of transport; and

  • (b) if the transaction value is in respect of identical goods sold under the conditions described in any of paragraphs (2)(a) to (c), differences in the trade levels of the identical goods and the goods being appraised or the quantities in which the identical goods were sold and the goods being appraised were imported or both, as the case may be.

• Marginal note:Effect of absence of sufficient information

  (4) Where there is not sufficient information to determine any amount referred to in subsection (3) or the adjustment therefor in relation to the transaction value of identical goods, the value for duty of the goods being appraised shall not be appraised on the basis of that transaction value under this section.

• Marginal note:Selection of lowest transaction value of identical goods

  (5) Where, in relation to goods being appraised, there are two or more transaction values of identical goods that meet all the requirements set out in subsections (1) and (3) or, where there is no such transaction value but there are two or more transaction values of identical goods sold under the conditions described in any of paragraphs (2)(a) to (c) that meet all the requirements set out in this section that are applicable by virtue of subsection (2), the value for duty of the goods being appraised shall be determined on the basis of the lowest such transaction value.

Transaction Value of Similar Goods

Marginal note:Transaction value of similar goods as value for duty

• 50 (1) Subject to subsections (2) and 49(2) to (5), where the value for duty of goods is not appraised under section 48 or 49, the value for duty of the goods is, if it can be determined, the transaction value of similar goods, in a sale of those goods for export to Canada, if that transaction value is the value for duty of the similar goods and the similar goods were exported at the same or substantially the same time as the goods being appraised and were sold under the following conditions:

  • (a) at the same or substantially the same trade level as the goods being appraised; and

  • (b) in the same or substantially the same quantities as the goods being appraised.

• Marginal note:Application of section 49

  (2) Subsections 49(2) to (5) apply to this section in respect of similar goods and wherever in those subsections the expression “identical goods” is referred to, there shall be substituted therefor the expression “similar goods”.

Deductive Value

Marginal note:Deductive value as value for duty

• 51 (1) Subject to subsections (5) and 47(3), where the value for duty of goods is not appraised under sections 48 to 50, the value for duty of the goods is the deductive value of the goods if it can be determined.

• Marginal note:Determination of deductive value

  (2) The deductive value of goods being appraised is

  • (a) where the goods being appraised, identical goods or similar goods are sold in Canada in the condition in which they were imported at the same or substantially the same time as the time of importation of the goods being appraised, the price per unit, determined in accordance with subsection (3) and adjusted in accordance with subsection (4), at which the greatest number of units of the goods being appraised, identical goods or similar goods are so sold;

  • (b) where the goods being appraised, identical goods or similar goods are not sold in Canada in the circumstances described in paragraph (a) but are sold in Canada in the condition in which they were imported before the expiration of ninety days after the time of importation of the goods being appraised, the price per unit, determined in accordance with subsection (3) and adjusted in accordance with subsection (4), at which the greatest number of units of the goods being appraised, identical goods or similar goods are so sold at the earliest date after the time of importation of the goods being appraised; or

  • (c) where the goods being appraised, identical goods or similar goods are not sold in Canada in the circumstances described in paragraph (a) or (b) but the goods being appraised, after being assembled, packaged or further processed in Canada, are sold in Canada before the expiration of one hundred and eighty days after the time of importation thereof and the importer of the goods being appraised requests that this paragraph be applied in the determination of the value for duty of those goods, the price per unit, determined in accordance with subsection (3) and adjusted in accordance with subsection (4), at which the greatest number of units of the goods being appraised are so sold.

• Marginal note:Price per unit

  (3) For the purposes of subsection (2), the price per unit, in respect of goods being appraised, identical goods or similar goods, shall be determined by ascertaining the unit price, in respect of sales of the goods at the first trade level after importation thereof to persons who

  • (a) are not related to the persons from whom they buy the goods at the time the goods are sold to them, and

  • (b) have not supplied, directly or indirectly, free of charge or at a reduced cost for use in connection with the production and sale for export of the goods any of the goods or services referred to in subparagraph 48(5)(a)(iii),

  at which the greatest number of units of the goods is sold where, in the opinion of the Minister or any person authorized by him, a sufficient number of such sales have been made to permit a determination of the price per unit of the goods.

• Marginal note:Adjustment of price per unit

  (4) For the purposes of subsection (2), the price per unit, in respect of goods being appraised, identical goods or similar goods, shall be adjusted by deducting therefrom an amount equal to the aggregate of

  • (a) an amount, determined in the manner prescribed, equal to

    • (i) the amount of commission generally earned on a unit basis, or

    • (ii) the amount for profit and general expenses, including all costs of marketing the goods, considered together as a whole, that is generally reflected on a unit basis

    in connection with sales in Canada of goods of the same class or kind as those goods,

  • (b) the costs, charges and expenses in respect of the transportation and insurance of the goods within Canada and the costs, charges and expenses associated therewith that are generally incurred in connection with sales in Canada of the goods being appraised, identical goods or similar goods, to the extent that an amount for such costs, charges and expenses is not deducted in respect of general expenses under paragraph (a),

  • (c) the costs, charges and expenses referred to in subparagraph 48(5)(b)(i), incurred in respect of the goods, to the extent that an amount for such costs, charges and expenses is not deducted in respect of general expenses under paragraph (a),

  • (d) any duties and taxes referred to in clause 48(5)(b)(ii)(B) in respect of the goods, to the extent that an amount for such duties and taxes is not deducted in respect of general expenses under paragraph (a), and

  • (e) where paragraph (2)(c) applies, the amount of the value added to the goods that is attributable to the assembly, packaging or further processing in Canada of the goods.

• Marginal note:Rejection of deductive value

  (5) Where there is not sufficient information to determine an amount referred to in paragraph (4)(e) in respect of any goods being appraised, the value for duty of the goods shall not be appraised under paragraph (2)(c).

• Definition of time of importation

  (6) In this section, time of importation means

  • (a) in respect of goods other than those to which paragraph 32(2)(b) applies, the date on which an officer authorizes the release of the goods under this Act or the date on which their release is authorized by any prescribed means; and

  • (b) in respect of goods to which paragraph 32(2)(b) applies, the date on which the goods are received at the place of business of the importer, owner or consignee.

Computed Value

Marginal note:Computed value as value for duty

• 52 (1) Subject to subsection 47(3), where the value for duty of goods is not appraised under sections 48 to 51, the value for duty of the goods is the computed value of the goods if it can be determined.

• Marginal note:Determination of computed value

  (2) The computed value of goods being appraised is the aggregate of amounts equal to

  • (a) subject to subsection (3), the costs, charges and expenses incurred in respect of, or the value of,

    • (i) materials employed in producing the goods being appraised, and

    • (ii) the production or other processing of the goods being appraised,

    determined in the manner prescribed; and

  • (b) the amount, determined in the manner prescribed, for profit and general expenses considered together as a whole, that is generally reflected in sales for export to Canada of goods of the same class or kind as the goods being appraised made by producers in the country of export.

• Marginal note:Amounts included

  (3) Without limiting the generality of paragraph (2)(a), the costs, charges, expenses and value referred to in that paragraph include:

  • (a) the costs, charges and expenses referred to in subparagraph 48(5)(a)(ii);

  • (b) the value of any of the goods and services referred to in subparagraph 48(5)(a)(iii), determined and apportioned to the goods being appraised as referred to in that subparagraph, whether or not such goods and services have been supplied free of charge or at a reduced cost; and

  • (c) the costs, charges and expenses incurred by the producer in respect of engineering, development work, art work, design work, plans or sketches undertaken in Canada that were supplied, directly or indirectly, by the purchaser of the goods being appraised for use in connection with the production and sale for export of those goods, apportioned to the goods being appraised as referred to in subparagraph 48(5)(a)(iii).

• Definition of general expenses

  (4) For the purposes of this section, general expenses means the direct and indirect costs, charges and expenses of producing and selling goods for export, other than the costs, charges and expenses referred to in paragraph (2)(a) and subsection (3).

Residual Method

Marginal note:Residual basis of appraisal

53 Where the value for duty of goods is not appraised under sections 48 to 52, it shall be appraised on the basis of

• (a) a value derived from the method, from among the methods of valuation set out in sections 48 to 52, that, when applied in a flexible manner to the extent necessary to arrive at a value for duty of the goods, conforms closer to the requirements with respect to that method than any other method so applied; and

• (b) information available in Canada.

General

Marginal note:Goods exported to Canada through another country

54 For the purposes of sections 45 to 55, where goods are exported to Canada from any country but pass in transit through another country, the goods shall, subject to such terms and conditions as may be prescribed, be deemed to be shipped directly to Canada from the first mentioned country.

Marginal note:Value for duty in Canadian currency

55 The value for duty of imported goods shall be computed in Canadian currency in accordance with regulations made under the Currency Act.

Marginal note:Informing importer of determination of value

56 The importer of any goods, on his written request, shall be informed in writing of the manner in which the value for duty of the goods was determined.

Duties Based on Specific Quantities or Specific Values

Marginal note:Specific quantities or specific values

57 Where duties are imposed on goods according to a specific quantity or a specific value, such duties shall be deemed to apply in the same proportion to any larger or smaller quantity or value, and to any fractional part of such specific quantity or value.

Marking Determination

Marginal note:Marking determination

• 57.01 (1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section may, at or before the time goods imported from a NAFTA country are accounted for under subsection 32(1), (3) or (5), in the prescribed manner and subject to the prescribed conditions, make a determination as to whether the goods have been marked in the manner referred to in section 35.01.

• Marginal note:Deemed determination

  (2) If an officer does not make a determination under subsection (1) in respect of goods imported from a NAFTA country at or before the time the goods are accounted for under subsection 32(1), (3) or (5), a determination as to whether the goods have been marked in the manner referred to in section 35.01 shall be deemed to have been made in accordance with any representations that have been made in respect of the marking of the goods by the person who accounted for the goods.

Determination, Re-determination and Further Re-determination of Origin, Tariff Classification and Value for Duty of Imported Goods

Marginal note:Application of sections 58 to 70

57.1 For the purposes of sections 58 to 70,

• (a) the origin of imported goods is to be determined in accordance with section 16 of the Customs Tariff and the regulations under that section;

• (b) the tariff classification of imported goods is to be determined in accordance with sections 10 and 11 of the Customs Tariff, unless otherwise provided in that Act; and

• (c) the value for duty of imported goods is to be determined in accordance with sections 47 to 55 of this Act and section 87 of the Customs Tariff.

57.2 [Repealed, 1997, c. 36, s. 166]

Marginal note:Determination by officer

• 58 (1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, may determine the origin, tariff classification and value for duty of imported goods at or before the time they are accounted for under subsection 32(1), (3) or (5).

• Marginal note:Deemed determination

  (2) If the origin, tariff classification and value for duty of imported goods are not determined under subsection (1), the origin, tariff classification and value for duty of the goods are deemed to be determined, for the purposes of this Act, to be as declared by the person accounting for the goods in the form prescribed under paragraph 32(1)(a). That determination is deemed to be made at the time the goods are accounted for under subsection 32(1), (3) or (5).

• Marginal note:Review of determination

  (3) A determination made under this section is not subject to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by sections 59 to 61.

Marginal note:Re-determination or further re-determination

• 59 (1) An officer, or any officer within a class of officers, designated by the President for the purposes of this section may

  • (a) in the case of a determination under section 57.01 or 58, re-determine the origin, tariff classification, value for duty or marking determination of any imported goods at any time within

    • (i) four years after the date of the determination, on the basis of an audit or examination under section 42, a verification under section 42.01 or a verification of origin under section 42.1, or

    • (ii) four years after the date of the determination, if the Minister considers it advisable to make the re-determination; and

  • (b) further re-determine the origin, tariff classification or value for duty of imported goods, within four years after the date of the determination or, if the Minister deems it advisable, within such further time as may be prescribed, on the basis of an audit or examination under section 42, a verification under section 42.01 or a verification of origin under section 42.1 that is conducted after the granting of a refund under paragraphs 74(1)(c.1), (c.11), (e), (f) or (g) that is treated by subsection 74(1.1) as a re-determination under paragraph (a) or the making of a correction under section 32.2 that is treated by subsection 32.2(3) as a re-determination under paragraph (a).

• Marginal note:Notice requirement

  (2) An officer who makes a determination under subsection 57.01(1) or 58(1) or a re-determination or further re-determination under subsection (1) shall without delay give notice of the determination, re-determination or further re-determination, including the rationale on which it is made, to the prescribed persons.

• Marginal note:Payment or refund

  (3) Every prescribed person who is given notice of a determination, re-determination or further re-determination under subsection (2) shall, in accordance with that decision,

  • (a) pay any amount owing, or additional amount owing, as the case may be, as duties in respect of the goods or, if a request is made under section 60, pay that amount or give security satisfactory to the Minister in respect of that amount and any interest owing or that may become owing on that amount; or

  • (b) be given a refund of any duties, or a refund of any duties and interest paid (other than interest that was paid because duties were not paid when required by subsection 32(5) or section 33), in excess of the duties owing in respect of the goods.

• Marginal note:Amounts payable immediately

  (4) Any amount owing by or to a person under subsection (3) or 66(3) in respect of goods, other than an amount in respect of which security is given, is payable immediately, whether or not a request is made under section 60.

• Marginal note:Exception for par. (3)(a)

  (5) For the purposes of paragraph (3)(a), the amount owing as duties in respect of goods under subsection (3) as a result of a determination made under subsection 58(1) does not include any amount owing as duties in respect of the goods under section 32 or 33.

• Marginal note:Review of re-determination or further re-determination

  (6) A re-determination or further re-determination made under this section is not subject to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by subsection 59(1) and sections 60 and 61.

Re-determination and Further Re-determination by President

Marginal note:Request for re-determination or further re-determination

• 60 (1) A person to whom notice is given under subsection 59(2) in respect of goods may, within ninety days after the notice is given, request a re-determination or further re-determination of origin, tariff classification, value for duty or marking. The request may be made only after all amounts owing as duties and interest in respect of the goods are paid or security satisfactory to the Minister is given in respect of the total amount owing.

• Marginal note:Request for review

  (2) A person may request a review of an advance ruling made under section 43.1 within ninety days after it is given to the person.

• Marginal note:How request to be made

  (3) A request under this section must be made to the President in the prescribed form and manner of filing with the prescribed information.

• Marginal note:President’s duty on receipt of request

  (4) On receipt of a request under this section, the President shall, without delay,

  • (a) re-determine or further re-determine the origin, tariff classification or value for duty;

  • (b) affirm, revise or reverse the advance ruling; or

  • (c) re-determine or further re-determine the marking determination.

• Marginal note:Notice requirement

  (5) The President shall without delay give notice of a decision made under subsection (4), including the rationale on which the decision is made, to the person who made the request.

Marginal note:Extension of time to make a request

• 60.1 (1) If no request is made under section 60 within the time set out in that section, a person may make an application to the President for an extension of the time within which the request may be made, and the President may extend the time for making the request.

• Marginal note:Reasons

  (2) The application must set out the reasons why the request was not made on time.

• Marginal note:How application made

  (3) The application must be made to the President in the prescribed form and manner of filing with the prescribed information.

• Marginal note:Duties of President

  (4) On receipt of an application, the President must, without delay, consider it and notify the person making the application, in writing, of the President’s decision.

• Marginal note:Date of request

  (5) If the President grants the application, the request is valid as of the date of the President’s decision.

• Marginal note:Conditions for granting application

  (6) No application may be granted unless

  • (a) the application is made within one year after the expiry of the time set out in section 60; and

  • (b) the person making the application demonstrates that

    • (i) within the time set out in section 60, the person was unable to act or to give a mandate to act in the person’s name or the person had a bona fide intention to make a request,

    • (ii) it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted.

Marginal note:Extension of time by Canadian International Trade Tribunal

• 60.2 (1) A person who has made an application under section 60.1 may apply to the Canadian International Trade Tribunal to have the application granted after either

  • (a) the President has refused the application; or

  • (b) ninety days have elapsed after the application was made and the President has not notified the person of the President’s decision.

  If paragraph (a) applies, the application under this subsection must be made within ninety days after the application is refused.

• Marginal note:How application made

  (2) The application must be made by filing with the President and the Canadian International Trade Tribunal a copy of the application referred to in section 60.1 and, if notice has been given under subsection 60.1(4), a copy of the notice.

• Marginal note:Powers of Canadian International Trade Tribunal

  (3) The Canadian International Trade Tribunal may dispose of an application by dismissing or granting it and, in granting an application, it may impose any terms that it considers just or order that the request be deemed to be a valid request as of the date of the order.

• Marginal note:When application to be granted

  (4) No application may be granted under this section unless

  • (a) the application under subsection 60.1(1) was made within one year after the expiry of the time set out in section 60; and

  • (b) the person making the application demonstrates that

    • (i) within the time set out in section 60, the person was unable to act or to give a mandate to act in the person’s name or the person had a bona fide intention to make a request,

    • (ii) it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted.

Marginal note:What President may do

• 61 (1) The President may

  • (a) re-determine or further re-determine the origin, tariff classification or value for duty of imported goods

    • (i) at any time after a re-determination or further re-determination is made under paragraph 60(4)(a), but before an appeal is heard under section 67, on the recommendation of the Attorney General of Canada, if the re-determination or further re-determination would reduce duties payable on the goods,

    • (ii) at any time, if the person who accounted for the goods under subsection 32(1), (3) or (5) fails to comply with any provision of this Act or the regulations or commits an offence under this Act in respect of the goods, and

    • (iii) at any time, if the re-determination or further re-determination would give effect to a decision of the Canadian International Trade Tribunal, the Federal Court of Appeal or the Supreme Court of Canada made in respect of the goods;

  • (b) re-determine or further re-determine the marking determination of imported goods

    • (i) within four years after the date the determination was made under section 57.01, if the Minister considers it advisable to make the re-determination,

    • (ii) at any time, if the person who is given notice of a marking determination under section 57.01 or of a re-determination under paragraph 59(1)(a) fails to comply with any provision of this Act or the regulations or commits an offence under this Act in respect of the goods,

    • (iii) at any time, if the re-determination or further re-determination would give effect to a decision made in respect of the goods by the Canadian International Trade Tribunal, the Federal Court of Appeal or the Supreme Court of Canada, and

    • (iv) at any time after a re-determination is made under paragraph 60(4)(c), but before an appeal is heard under section 67, on the recommendation of the Attorney General of Canada; and

  • (c) re-determine or further re-determine the origin, tariff classification or value for duty of imported goods (in this paragraph referred to as the “subsequent goods”), at any time, if the re-determination or further re-determination would give effect, in respect of the subsequent goods, to a decision of the Canadian International Trade Tribunal, the Federal Court of Appeal or the Supreme Court of Canada, or of the President under subparagraph (a)(i),

    • (i) that relates to the origin or tariff classification of other like goods imported by the same importer or owner on or before the date of importation of the subsequent goods, or

    • (ii) that relates to the manner of determining the value for duty of other goods previously imported by the same importer or owner on or before the date of importation of the subsequent goods.

• Marginal note:Notice requirement

  (2) If the President makes a re-determination or further re-determination under this section, the President shall without delay give notice of that decision, including the rationale on which the decision is made, to the prescribed persons.

Marginal note:No review

62 A re-determination or further re-determination under section 60 or 61 is not subject to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by section 67.

63 and 64 [Repealed, 1997, c. 36, s. 166]

Marginal note:Payment or refund

• 65 (1) If a re-determination or further re-determination is made under paragraph 60(4)(a) or 61(1)(a) or (c) in respect of goods, such persons who are given notice of the decision as may be prescribed shall, in accordance with the decision,

  • (a) pay any additional amount owing as duties in respect of the goods or, where an appeal is taken under section 67, give security satisfactory to the Minister in respect of that amount and any interest owing or that may become owing on that amount; or

  • (b) be given a refund of any duties and interest paid (other than interest that was paid by reason of duties not being paid in accordance with subsection 32(5) or section 33) in excess of the duties and interest owing in respect of the goods.

• Marginal note:Amount owing or refund payable immediately

  (2) Any amount owing by or to a person under subsection (1) or 66(3) of this Act or as a result of a determination or re-determination under the Special Import Measures Act in respect of goods, other than an amount in respect of which security is given, is payable immediately, whether or not an appeal is taken under section 67 of this Act or subsection 61(1) of that Act.

• (3) [Repealed, 1997, c. 36, s. 167]

Marginal note:Refund to person other than payer

• 65.1 (1) If a person (in this subsection referred to as the “applicant”) to whom notice of a decision under subsection 59(1) or paragraph 60(4)(a) or 61(1)(a) or (c) was given would be entitled under paragraph 59(3)(b) or 65(1)(b) to a refund of an amount if the applicant had been the person who paid the amount, the amount may be paid to the applicant and any amount so paid to the applicant is deemed to have been refunded to the applicant under that paragraph.

• Marginal note:Effect of refund

  (2) If an amount in respect of goods has been refunded to a person under paragraph 59(3)(b) or 65(1)(b), no other person is entitled to a refund of an amount in respect of the goods under either of those paragraphs.

• Marginal note:Exception — marking determinations

  (3) This section does not apply to a marking determination.

Marginal note:Interest on payments

• 66 (1) If the amount paid by a person on account of duties expected to be owing under paragraph 59(3)(a) or 65(1)(a) of this Act or under the Special Import Measures Act exceeds the amount of duties, if any, owing as a result of a determination, re-determination or further re-determination, the person shall be paid, in addition to the excess amount, interest at the prescribed rate for the period beginning on the first day after the day the amount was paid and ending on the day the determination, re-determination or further re-determination, as the case may be, was made, calculated on the excess amount.

• Marginal note:Interest where security given

  (2) If, as a result of a determination, re-determination or further re-determination made in respect of goods, a person is required under paragraph 59(3)(a) or 65(1)(a) to pay an amount owing as duties in respect of the goods and the person gives security under that paragraph pending a subsequent re-determination or further re-determination in respect of the goods, the interest payable under subsection 33.4(1) on any amount owing as a result of the subsequent re-determination or further re-determination is to be computed at the prescribed rate for the period beginning on the first day after the day the security was given and ending on the day the subsequent re-determination or further re-determination is made.

• Marginal note:Interest on refunds

  (3) A person who is given a refund under paragraph 59(3)(b) or 65(1)(b) of this Act or under the Special Import Measures Act of an amount paid shall be given, in addition to the refund, interest at the prescribed rate for the period beginning on the first day after the day the amount was paid and ending on the day the refund is given, calculated on the amount of the refund.

Appeals and References

Marginal note:Appeal to the Canadian International Trade Tribunal

• 67 (1) A person aggrieved by a decision of the President made under section 60 or 61 may appeal from the decision to the Canadian International Trade Tribunal by filing a notice of appeal in writing with the President and the Canadian International Trade Tribunal within ninety days after the time notice of the decision was given.

• Marginal note:Publication of notice of appeal

  (2) Before making a decision under this section, the Canadian International Trade Tribunal shall provide for a hearing and shall publish a notice thereof in the Canada Gazette at least twenty-one days prior to the day of the hearing, and any person who, on or before the day of the hearing, enters an appearance with the Canadian International Trade Tribunal may be heard on the appeal.

• Marginal note:Judicial review

  (3) On an appeal under subsection (1), the Canadian International Trade Tribunal may make such order, finding or declaration as the nature of the matter may require, and an order, finding or declaration made under this section is not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by section 68.

Marginal note:Extension of time to appeal

• 67.1 (1) If no notice of appeal has been filed within the time set out in section 67, a person may make an application to the Canadian International Trade Tribunal for an order extending the time within which a notice of appeal may be filed, and the Tribunal may make an order extending the time for appealing and may impose any terms that it considers just.

• Marginal note:Reasons

  (2) The application must set out the reasons why the notice of appeal was not filed on time.

• Marginal note:How application made

  (3) The application must be made by filing with the President and the Canadian International Trade Tribunal the application accompanied by the notice of appeal.

• Marginal note:Conditions for granting application

  (4) No order may be made under this section unless

  • (a) the application is made within one year after the expiry of the time set out in section 67; and

  • (b) the person making the application demonstrates that

    • (i) within the time set out in section 67 for appealing, the person was unable to act or to give a mandate to act in the person’s name or the person had a bona fide intention to appeal,

    • (ii) it would be just and equitable to grant the application,

    • (iii) the application was made as soon as circumstances permitted, and

    • (iv) there are reasonable grounds for the appeal.

Marginal note:Appeal to Federal Court

• 68 (1) Any of the parties to an appeal under section 67, namely,

  • (a) the person who appealed,

  • (b) the President, or

  • (c) any person who entered an appearance in accordance with subsection 67(2),

  may, within ninety days after the date a decision is made under section 67, appeal therefrom to the Federal Court of Appeal on any question of law.

• Marginal note:Disposition of appeal

  (2) The Federal Court of Appeal may dispose of an appeal by making such order or finding as the nature of the matter may require or by referring the matter back to the Canadian International Trade Tribunal for re-hearing.

Marginal note:Refund pending appeal

• 69 (1) Where an appeal is taken under section 67 or 68 in respect of goods and the person who appeals has paid any amount as duties and interest in respect of the goods, the person shall, on giving security satisfactory to the Minister in respect of the unpaid portion of the duties and interest owing in respect of the goods and the whole or any portion of the amount paid as duties and interest (other than interest that was paid by reason of duties not being paid in accordance with subsection 32(5) or section 33) in respect of the goods, be given a refund of the whole or any portion of the amount paid in respect of which security is given.

• Marginal note:Interest

  (2) Where a refund is given under subsection (1), the person who is given the refund shall,

  • (a) if a re-determination or further re-determination is made by the President under subparagraph 61(1)(a)(iii) and a portion of the amount refunded as a result of that decision is owing as duties and interest, pay interest at the prescribed rate for the period beginning on the first day after the day the refund is given and ending on the day the amount of the refund found to be owing as duties and interest has been paid in full, calculated on the outstanding balance of that amount of the refund, except that if the amount of the refund found to be owing is paid within thirty days after the day that decision is made, interest shall not be payable on that amount from that day to the day the amount is paid; or

  • (b) if a re-determination or further re-determination is made by the President under subparagraph 61(1)(a)(iii) and a portion of the amount refunded as a result of that decision is not owing as duties and interest, be given interest at the prescribed rate for the period beginning on the day after the amount refunded was originally paid by that person and ending on the day it was refunded, calculated on the amount of the refund found not to be owing.

Marginal note:References to Canadian International Trade Tribunal

• 70 (1) The President may refer to the Canadian International Trade Tribunal for its opinion any questions relating to the origin, tariff classification or value for duty of any goods or class of goods.

• Marginal note:Idem

  (2) Sections 67 and 68 apply in respect of a reference made pursuant to this section as if the reference were an appeal taken pursuant to section 67.

Special Provisions

Marginal note:Special provisions

• 71 (1) If the release of goods is refused because the goods have been determined to be prohibited goods classified under tariff item No. 9899.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff, re-determination or further re-determination may be requested under section 60 or made under section 61 and appeals may be taken under sections 67 and 68 in respect of the determination, subject to the following modifications:

  • (a) subparagraph 61(1)(a)(iii) and paragraph 61(1)(c) are deemed to include a reference to the court; and

  • (b) in sections 67 and 68, the expression “court” is deemed to be substituted for the expression “Canadian International Trade Tribunal”.

• Marginal note:Definitions

  (2) In this section,

  clerk of the court

  clerk of the court[Repealed, 2014, c. 20, s. 445]

  court

  court means

  • (a) in the Province of Ontario, the Superior Court of Justice,

  • (b) in the Province of Quebec, the Superior Court,

  • (c) in the Provinces of Nova Scotia, British Columbia and Prince Edward Island, in Yukon and in the Northwest Territories, the Supreme Court,

  • (d) in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of Queen’s Bench,

  • (e) [Repealed, 1992, c. 51, s. 44]

  • (f) in the Province of Newfoundland and Labrador, the Trial Division of the Supreme Court, and

  • (g) in Nunavut, the Nunavut Court of Justice. (tribunal)

Marginal note:Limitation relating to security

72 No security may be given under paragraph 59(3)(a) or 65(1)(a) or subsection 69(1) in respect of any amount owing as surtaxes levied under section 53, 55, 60, 63, 68 or 78 of the Customs Tariff or temporary duties levied under any of sections 69 to 76 of that Act.

Marginal note:Limitation — heading No. 98.26 of List of Tariff Provisions

72.1 Notwithstanding subsection 59(1) and sections 60 and 61, no re-determination or further re-determination of the tariff classification of imported goods classified under heading No. 98.26 of the List of Tariff Provisions set out in the schedule to the Customs Tariff may be made unless the re-determination or further re-determination is to

• (a) change the classification of the goods to another tariff item under that heading; or

• (b) change the classification of all those goods accounted for under the same accounting document to tariff items in Chapters 1 to 97 of that List.

72.2 [Repealed, 1997, c. 36, s. 173]

PART IVAbatements and Refunds

Marginal note:Abatement

73 Subject to section 75 and any regulations made under section 81, the Minister may grant an abatement of the whole or part of the duties on imported goods where the goods have suffered

• (a) damage, deterioration or destruction at any time from the time of shipment to Canada to the time of release; or

• (b) a loss in volume or weight arising from natural causes while in a bonded warehouse.

Marginal note:Refund

• 74 (1) Subject to this section, section 75 and any regulations made under section 81, a person who paid duties on any imported goods may, in accordance with subsection (3), apply for a refund of all or part of those duties, and the Minister may grant to that person a refund of all or part of those duties, if

  • (a) they have suffered damage, deterioration or destruction at any time from the time of shipment to Canada to the time of release;

  • (b) the quantity released is less than the quantity in respect of which duties were paid;

  • (c) they are of a quality inferior to that in respect of which duties were paid;

  • (c.1) the goods were exported from a NAFTA country or from Chile but no claim for preferential tariff treatment under NAFTA or no claim for preferential tariff treatment under CCFTA, as the case may be, was made in respect of those goods at the time they were accounted for under subsection 32(1), (3) or (5);

  • (c.11) the goods were imported from Israel or another CIFTA beneficiary or from a country or territory set out in column 1 of Part 4 of the schedule but no claim for preferential tariff treatment under CIFTA or an agreement set out in column 2, as the case may be, was made in respect of those goods at the time they were accounted for under subsection 32(1), (3) or (5);

  • (c.2) [Repealed, 1997, c. 14, s. 43]

  • (d) the calculation of duties owing was based on a clerical, typographical or similar error;

  • (e) the duties were paid or overpaid as a result of an error in the determination under subsection 58(2) of origin (other than in the circumstances described in paragraph (c.1) or (c.11)), tariff classification or value for duty in respect of the goods and the determination has not been the subject of a decision under any of sections 59 to 61;

  • (f) the goods, or other goods into which they have been incorporated, are sold or otherwise disposed of to a person, or are used, in compliance with a condition imposed under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff, or under any regulations made under that Act in respect of a tariff item in that List, before any other use is made of the goods in Canada; or

  • (g) the duties were overpaid or paid in error for any reason that may be prescribed.

• Marginal note:Refund treated as re-determination

  (1.1) The granting of a refund under paragraph (1)(c.1), (c.11), (e) or (f) or, if the refund is based on tariff classification, value for duty or origin, under paragraph (1)(g) is to be treated for the purposes of this Act, other than section 66, as if it were a re-determination made under paragraph 59(1)(a).

• Marginal note:Duties

  (1.2) The duties that may be refunded under paragraph (1)(f) do not include duties or taxes levied under the Excise Tax Act, the Special Import Measures Act, the Excise Act, 2001 or the Select Luxury Items Tax Act.

• Marginal note:Claims for refund

  (2) No refund shall be granted under any of paragraphs (1)(a) to (c) and (d) in respect of a claim unless written notice of the claim and the reason for it is given to an officer within the prescribed time.

• Marginal note:Idem

  (3) No refund shall be granted under subsection (1) in respect of a claim unless

  • (a) the person making the claim affords an officer reasonable opportunity to examine the goods in respect of which the claim is made or otherwise verify the reason for the claim; and

  • (b) an application for the refund, including such evidence in support of the application as may be prescribed, is made to an officer in the prescribed manner and in the prescribed form with the prescribed information within

    • (i) in the case of an application for a refund under paragraph (1)(a), (b), (c), (c.11), (d), (e), (f) or (g), four years after the goods were accounted for under subsection 32(1), (3) or (5), and

    • (ii) in the case of an application for a refund under paragraph (1)(c.1), one year after the goods were accounted for under subsection 32(1), (3) or (5) or such longer period as may be prescribed.

• Marginal note:Effect of denial of refund

  (4) A denial of an application for a refund of duties paid on goods is to be treated for the purposes of this Act as if it were a re-determination under paragraph 59(1)(a) if

  • (a) the application is for a refund under paragraph (1)(c.1) or (c.11) and the application is denied because at the time the goods were accounted for under subsection 32(1), (3) or (5), they were not eligible for preferential tariff treatment under a free trade agreement; or

  • (b) the application is for a refund under paragraph (1)(e), (f) or (g) and the application is denied because the origin, tariff classification or value for duty of the goods as claimed in the application is incorrect.

• (4.1) [Repealed, 1997, c. 14, s. 43]

• Marginal note:Effect of denial of refund

  (5) For greater certainty, a denial of an application for a refund under paragraph (1)(c.1), (c.11), (e), (f) or (g) on the basis that complete or accurate documentation has not been provided, or on any ground other than the ground specified in subsection (4), is not to be treated for the purposes of this Act as if it were a re-determination under this Act of origin, tariff classification or value for duty.

• Marginal note:Refund without application

  (6) The Minister, within four years after goods are accounted for under subsection 32(1), (3) or (5), may refund all or part of duties paid on imported goods without application by the person who paid them if it is determined that the duties were overpaid or paid in error in any of the circumstances set out in

  • (a) paragraphs (1)(a) to (c) or (d); or

  • (b) paragraph (1)(g), only to the extent that the refund is not based on tariff classification, value for duty or origin of the goods.

• Marginal note:Duties that may not be refunded

  (7) The duties that may be refunded under subsection (6) do not include duties or taxes levied under the Excise Act, the Excise Tax Act or the Special Import Measures Act or a surtax or temporary duty imposed under Division 4 of Part II of the Customs Tariff.

• Marginal note:Application of refund

  (8) A person of a prescribed class may apply, within four years after goods are accounted for under subsection 32(1), (3) or (5), in prescribed circumstances and under prescribed conditions, the amount of any refund to which they are entitled under this section to the payment of any amount for which they are liable or may become liable under this Act.

74.1 [Repealed, 1997, c. 36, s. 176]

Marginal note:Amount of abatement or refund

• 75 (1) Subject to sections 78 and 79, the amount of any abatement or refund granted under section 73 or 74 shall be determined in accordance with such regulations as the Governor in Council may make prescribing the methods of determining the amount and the classes of cases to which such determinations apply.

• Marginal note:Alternative rule for case of deficiency

  (2) Where the quantity of imported goods released is less than the quantity in respect of which duties were paid and no refund of duties has been granted in respect of the deficient quantity, an officer may, in such circumstances as may be prescribed and at the request of the person by whom the duties were paid, apply any duties paid in respect of the deficient quantity of the goods to any duties that become due on the deficient quantity if any portion thereof is subsequently imported by the same importer or owner.

Marginal note:Refunds for defective goods

• 76 (1) Subject to any regulations made under section 81, the Minister may, in such circumstances as may be prescribed, grant to any person by whom duties were paid on imported goods that are defective, are of a quality inferior to that in respect of which duties were paid or are not the goods ordered, a refund of the whole or part of the duties paid thereon if the goods have, subsequently to the importation, been disposed of in a manner acceptable to the Minister at no expense to Her Majesty in right of Canada or exported.

• Marginal note:Subsections 74(2) and (3) and 75(1) apply

  (2) Subsections 74(2) and (3) and 75(1) apply, with such modifications as the circumstances require, in respect of refunds under this section.

77 [Repealed, 1997, c. 36, s. 177]

Marginal note:Merchantable scrap, waste or by-products

78 In such circumstances as may be prescribed, where merchantable scrap, waste or by-products result from the destruction or disposal of goods or from the incorporation of goods into other goods, the amount of any abatement or refund that is granted in respect of such goods under this Act by virtue of the destruction, disposal or incorporation into other goods shall be reduced by an amount determined in the prescribed manner.

Marginal note:Sum in lieu of refund or abatement

79 Where circumstances exist that render it difficult to determine the exact amount of any abatement or refund that should be granted in respect of goods under this Act, the Minister may, with the consent of the person claiming the abatement or refund, grant to that person, in lieu thereof, a specific sum, the amount of which shall be determined by the Minister.

Marginal note:Certain duties not included

79.1 For the purposes of sections 78 and 79, an abatement or refund does not include a rebate or refund of any amount paid in respect of tax levied under Part IX of the Excise Tax Act.

Marginal note:Interest on refunds

80 Any person who is granted a refund of duties under section 74, 76 or 79 shall be granted, in addition to the refund, interest on the refund at the prescribed rate for the period beginning on the ninety-first day after the day an application for the refund is received in accordance with paragraph 74(3)(b) and ending on the day the refund is granted.

Marginal note:Interest on past refunds

80.1 Notwithstanding subsection 80(1), any person who, under paragraph 74(1)(g), is granted a refund of duties on imported goods on which the rate of customs duty is reduced by a retroactive order or regulation of the Governor in Council made under the Customs Tariff shall be granted, in addition to the refund, interest at the prescribed rate for the period beginning on the day after the day the duties were paid and ending on the day the refund is granted, calculated on the amount of the refund.

Marginal note:Excess to be repaid

• 80.2 (1) Subject to subsection (2), if an abatement or refund is granted to a person under sections 73 to 76 and the person is not entitled to all or part of it, the person is liable to repay the amount to which they are not entitled to Her Majesty in right of Canada, on the day it is received by the person, together with any interest that was granted to the person under section 80 or 80.1 on that amount.

• Marginal note:Excess to be repaid — paragraph 74(1)(f)

  (2) If an abatement or refund is granted to a person under paragraph 74(1)(f) and the goods are sold or otherwise disposed of or are subsequently used in a manner that fails to comply with a condition imposed under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff, or under any regulations made under that Act in respect of a tariff item in that List, the person who was granted the refund or abatement shall, within ninety days after the failure to comply,

  • (a) report the failure to an officer at a customs office; and

  • (b) pay to Her Majesty in right of Canada any amount to which they are not entitled, together with any interest that was granted to the person under section 80 or 80.1 on that amount.

Marginal note:Regulations

81 The Governor in Council may make regulations prescribing the circumstances in which abatements or refunds shall not be granted under this Act in respect of prescribed classes of goods.

82 to 87 [Repealed, 1995, c. 41, s. 22]

88 to 91 [Repealed, 1997, c. 36, s. 181]

PART VCollection of Information About Persons and Goods

Persons Leaving Canada

Marginal note:Information

• 92 (1) In relation to any person who is leaving Canada or who has left Canada, the Agency may collect, from a prescribed source, in the prescribed circumstances, within the prescribed time and in the prescribed manner, the following information:

  • (a) the surname, first name and middle names, the date of birth, the citizenship or nationality and the sex of the person;

  • (b) the type of travel document that identifies the person, the name of the country or organization that issued the travel document and the travel document number; and

  • (c) the date, time and place of the person’s departure from Canada and, if the person arrives in the United States, the date, time and place of their arrival.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations for the purposes of subsection (1), including regulations

  • (a) prescribing the sources from which the information may be collected;

  • (b) respecting the circumstances in which the information may be collected; and

  • (c) respecting the time within which and the manner in which the information may be collected.

Marginal note:Information given to Agency

• 93 (1) With respect to a prescribed conveyance that departs or is expected to depart from a place inside Canada and that has a final destination outside of Canada, a prescribed person shall give the Agency, in the prescribed circumstances, within the prescribed time and in the prescribed manner,

  • (a) in relation to the conveyance or its travel route, the last place inside Canada from which it departed, regardless of whether persons boarded the conveyance at that place, the date and time of that departure and any prescribed information; and

  • (b) in relation to any person on board or expected to be on board that conveyance, the following information:

    • (i) the surname, first name and middle names, the date of birth, the citizenship or nationality and the sex of the person,

    • (ii) the type of travel document that identifies the person, the name of the country or organization that issued the travel document and the travel document number, and

    • (iii) any unique passenger reference assigned to the person by the prescribed person.

• Marginal note:Notification

  (2) The Minister may issue a notification to any person who is required to give information under subsection (1) to require the person to take any specified measure with respect to the information.

• Marginal note:Obligation to comply

  (3) The person to whom the notification is issued shall comply with the notification.

• Marginal note:Provision of information despite restriction

  (4) Any restriction under the Aeronautics Act on the disclosure of information does not apply to a person who is required to give information under subsection (1).

• Marginal note:Regulations

  (5) The Governor in Council may make regulations for the purposes of this section, including regulations

  • (a) prescribing the information that must be given under paragraph (1)(a);

  • (b) respecting the conveyances in relation to which information must be given under subsection (1);

  • (c) prescribing the persons or classes of persons who must give the information under subsection (1);

  • (d) respecting the circumstances in which the information must be given under subsection (1); and

  • (e) respecting the time within which and the manner in which the information must be given under subsection (1).

Marginal note:Retention of collected information

93.1 Subject to section 6 of the Privacy Act, information collected under sections 92 and 93 shall be retained by the Agency for a period of not more than 15 years beginning on the day on which the information is collected.

Marginal note:Obligation to answer questions

94 Every person who is leaving Canada shall, if requested to do so by an officer, present themselves to an officer and answer truthfully any questions asked by an officer in the performance of their duties under this or any other Act of Parliament.

Exportation of Goods

Marginal note:Report

• 95 (1) Subject to subsection (1.1) and regulations made under paragraph (2)(a), all goods that are exported shall be reported at any prescribed time and place and in any prescribed manner.

• Marginal note:Exception — entering or leaving temporarily

  (1.1) Subject to regulations made under paragraphs (2)(c) and (d), subsection (1) does not apply in respect of goods on board a conveyance

  • (a) that enters Canadian waters, including the inland waters, or the airspace over Canada directly from outside Canada and then leaves Canada, as long as

    • (i) in the case of a conveyance other than an aircraft, the conveyance did not anchor, moor or make contact with another conveyance while in Canadian waters, including the inland waters, or

    • (ii) in the case of an aircraft, the conveyance did not land while in Canada; or

  • (b) that leaves Canadian waters, including the inland waters, or the airspace over Canada and then re-enters Canada, as long as

    • (i) in the case of a conveyance other than an aircraft, the conveyance did not anchor, moor or make contact with another conveyance while outside Canada, or

    • (ii) in the case of an aircraft, the conveyance did not land while outside Canada.

• Marginal note:Powers of officer

  (1.2) However, an officer may require that goods that are exempted under subsection (1.1) or regulations made under paragraph (2)(a) be reported under subsection (1).

• (1.3) [Repealed, 2017, c. 11, s. 7]

• Marginal note:Regulations

  (2) The Governor in Council may make regulations

  • (a) prescribing the classes of goods that are exempted from the requirements of subsection (1) and the circumstances in which any of those classes of goods are not so exempted;

  • (b) prescribing the classes of persons who are required to report goods under subsection (1) and the circumstances in which they are so required;

  • (c) prescribing the circumstances in which goods, or classes of goods, on board a conveyance, or a class of conveyances, are required to be reported despite subsection (1.1); and

  • (d) defining the expression “make contact with another conveyance” for the purposes of subsection (1.1) and prescribing the circumstances in which a conveyance or class of conveyances makes contact with another conveyance.

• Marginal note:Obligation to answer questions and present goods

  (3) Every person reporting goods under subsection (1) shall

  • (a) answer truthfully any question asked by an officer with respect to the goods; and

  • (b) where an officer so requests, present the goods to the officer, remove any covering from the goods, unload any conveyance or open any part thereof, or open or unpack any package or container that the officer wishes to examine.

• Marginal note:Written report

  (4) If goods are required to be reported in writing, they shall be reported in the prescribed form with the prescribed information or in such form and with such information as is satisfactory to the Minister.

Marginal note:Statistics

• 95.1 (1) Subject to this section, every person who reports goods under subsection 95(1) shall, at the time of reporting, furnish an officer at a customs office with the statistical code for the goods determined by reference to the Coding System established pursuant to section 22.1 of the Statistics Act.

• Marginal note:Prescribed form

  (2) The statistical code referred to in subsection (1) shall be furnished in the prescribed form and manner of filing with the prescribed information.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations exempting persons or goods, or classes thereof, from the requirements of subsection (1) subject to such conditions, if any, as are specified in the regulations.

Marginal note:Failure to export

96 Where goods are reported under section 95 and not duly exported, the person who reported them shall forthwith report the failure to export them to an officer at a customs office.

Marginal note:Security

97 In such circumstances as may be prescribed, goods that are transported within Canada after they have been reported under section 95 shall be transported subject to such conditions and subject to such bonds or other security as may be prescribed.

97.01 [Repealed, 1997, c. 14, s. 44]

Marginal note:Certificate of Origin of goods exported to free trade partner

• 97.1 (1) Every exporter of goods to a free trade partner for which preferential tariff treatment under a free trade agreement will be claimed in accordance with the laws of that free trade partner shall certify in writing, in the prescribed manner and in the prescribed form with the prescribed information, that goods exported or to be exported from Canada to that free trade partner meet the rules of origin set out in, or contemplated by, the applicable free trade agreement and, if the exporter is not the producer of the goods, the certificate shall be completed and signed by the exporter on the basis of the prescribed criteria.

• Marginal note:Certificate of Origin — CPTPP or CUSMA

  (1.1) If an exporter or producer of goods that are exported to a CPTPP country or CUSMA country and for which preferential tariff treatment under the CPTPP or CUSMA will be claimed in accordance with the laws of that country is the person who certifies that the goods meet the rules of origin set out in, or contemplated by, the CPTPP or CUSMA, the exporter or producer shall do so in writing, in the prescribed form with the prescribed information, and

  • (a) in the case of an exporter, on the basis of supporting information that the exporter has or by relying on supporting information that the producer has; and

  • (b) in the case of a producer, on the basis of supporting information that the producer has.

• Marginal note:Provision of copy of Certificate of Origin

  (2) Every exporter or producer of goods who, for the purpose of enabling any person to comply with the applicable laws relating to customs of a free trade partner, completes and signs a certificate in accordance with subsection (1) or (1.1) shall, at the request of an officer, provide the officer with a copy of the certificate.

• Marginal note:Notification of correct information

  (3) A person who has completed and signed a certificate in accordance with subsection (1) or (1.1) and who has reason to believe that it contains incorrect information shall immediately notify each person and each CPTPP country or CUSMA country to whom the certificate was given of the correct information.

97.11 [Repealed, 1997, c. 14, s. 44]

Marginal note:Exporters’ or producers’ records

• 97.2 (1) Every person who exports goods or causes them to be exported for sale or for any industrial, occupational, commercial, institutional or other like use or any other use that may be prescribed, and every other person who has completed and signed a certificate in accordance with subsection 97.1(1) or (1.1), shall keep at the person’s place of business in Canada or at any other place that may be designated by the Minister any records in respect of those goods in the manner and for the period that may be prescribed and shall, if an officer requests, make them available to the officer, within the time specified by the officer, and answer any questions asked by the officer in respect of the records.

• Marginal note:Idem

  (2) Subsection 40(2) and sections 42 and 43 apply, with such modifications as the circumstances require, to a person required to keep records pursuant to subsection (1).

Marginal note:Verification of origin — certain agreements

• 97.201 (1) The customs administration of any state or beneficiary referred to in subsection 42.1(1.1) to which goods were exported may request in writing that the Agency conduct a verification and provide, as the case may be

  • (a) an opinion as to whether those goods are originating within the meaning of Annex C of CEFTA;

  • (a.1) a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA 2017;

  • (b) a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA;

  • (c) a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA; or

  • (d) a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in CUKTCA.

• Marginal note:Methods of verification

  (2) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, or any person, or any person within a class of persons, designated by the President to act on behalf of such an officer, may, subject to any prescribed conditions, conduct a verification of origin of goods referred to in subsection (1)

  • (a) by entering any prescribed premises or place at any reasonable time; or

  • (b) in any other prescribed manner.

• Marginal note:Statement of origin — certain agreements

  (3) On completion of a verification of origin requested under subsection (1), an officer or other person designated under subsection (2) shall

  • (a) provide, in the prescribed manner, the customs administration of the state or beneficiary with the opinion or written report requested and any relevant supporting documents that may be requested by that customs administration; and

  • (b) determine whether the goods are originating within the meaning of the applicable provision referred to in subsection (1).

• Marginal note:Notice requirement

  (4) The President shall without delay give notice of a decision made under paragraph (3)(b), including the rationale on which the decision is made, to the exporter or producer of the goods, as the case may be, subject to the verification of origin.

• Marginal note:Determination treated as re-determination

  (5) A determination made under paragraph (3)(b) is to be treated for the purposes of this Act as if it were a re-determination under paragraph 59(1)(a).

PART V.1Collections

Interpretation

Marginal note:Definitions

97.21 The definitions in this section apply in this Part.

Commissioner

Commissioner means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. (commissaire)

debtor

debtor means a person liable to pay an amount owing or payable in accordance with this Act. (débiteur)

judge

judge means a judge of a superior court having jurisdiction in the province where a matter arises or a judge of the Federal Court. (juge)

Minister

Minister means the Minister of National Revenue. (ministre)

receiver

receiver means a person who

• (a) under the authority of a debenture, bond or other debt security, a court order or an Act of Parliament or of the legislature of a province, is empowered to operate or manage a business or a property of another person;

• (b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security;

• (c) is appointed by a bank to act as agent of the bank in the exercise of the authority of the bank under subsection 426(3) of the Bank Act in respect of property of another person;

• (d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation; or

• (e) is appointed as a committee, guardian or curator with authority to manage and care for the affairs and assets of an individual who is incapable of managing those affairs and assets.

It includes a person who is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person. However, if a person is so appointed it does not include that creditor. (séquestre)

Ancillary Powers

Marginal note:Ancillary powers

• 97.211 (1) The Minister may, for the purposes of administering or enforcing this Part, exercise any of the following powers that are necessary for the collection of debts due to Her Majesty under this Part:

  • (a) the powers provided for in paragraphs (a) and (b) of the definition prescribed in subsection 2(1) as well as those provided for in subsections 3.3(1) and (2), sections 8.1 and 8.3 and subsections 43(1) and 115(1); and

  • (b) any other powers that are conferred under any provision of this Act that is specified by the Governor in Council on the recommendation of the Minister and the Minister of Public Safety and Emergency Preparedness.

• Marginal note:Publication

  (2) An order made for the purpose of subsection (1) must be published in Part II of the Canada Gazette as soon as practicable after it is made.

General

Marginal note:Debts to Her Majesty

• 97.22 (1) Subject to subsections (2) and (3), any duties, fee, charge or other amount owing or payable under this Act is a debt due to Her Majesty in right of Canada from and after the time such amount should have been paid, and any person from whom the amount is owing shall, after a notice of arrears is sent by mail addressed to the person at their latest known address or delivered to that address, pay the amount owing as indicated in the notice or appeal the notice under section 97.23.

• Marginal note:Penalty or ascertained forfeiture

  (2) Any amount of money demanded as a penalty in a notice of assessment served under section 109.3 and any interest payable under section 109.5 or any amount of money demanded in a notice under section 124 and any interest payable under subsection 124(6), from and after the time of service, is a debt due to Her Majesty in right of Canada from the person on whom the notice is served and the person shall pay that amount or, within ninety days after the time of service, request a decision of the Minister of Public Safety and Emergency Preparedness under section 131.

• Marginal note:Amounts demanded

  (3) Any amount of money demanded under paragraph 133(1)(c) or (1.1)(b) and any interest payable under subsection 133(7), from and after the time notice is served under subsection 131(2), is a debt due to Her Majesty in right of Canada from the person who requested the decision and the person shall pay the amount so demanded or, if the person appeals the decision of the Minister of Public Safety and Emergency Preparedness under section 135, give security satisfactory to that Minister.

• Marginal note:Court costs

  (4) If an amount is payable by a person to Her Majesty in right of Canada because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Act applies, sections 97.24, 97.26, 97.28 and 97.3 to 97.33 apply to the amount as if the amount were a debt owing by the person to Her Majesty on account of duties payable by the person under this Act.

• Marginal note:Court

  (5) Any amount payable under this Act is recoverable in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Part.

• Marginal note:Interest on judgments

  (6) If a judgment is obtained for any amount payable under this Act, including a certificate registered under section 97.24, the provisions of this Act under which interest is payable for failure to pay the amount apply, with any modifications that the circumstances require, to a failure to pay the judgment debt, and the interest is recoverable in the same manner as the judgment debt.

Marginal note:Appeal

97.23 A person to whom a notice is sent or delivered under subsection 97.22(1) may, within thirty days after that notice is sent, appeal the notice by way of an action in the Federal Court in which the person is the plaintiff and the Minister of Public Safety and Emergency Preparedness is the defendant if

• (a) no appeal is or was available to that person under section 67 or 68 in respect of the same matter; and

• (b) the notice is not in respect of an amount assessed under section 97.44.

Certificates, Liens and Set-off

Marginal note:Certificate

• 97.24 (1) Any debt, or any part of a debt, due to Her Majesty in right of Canada under this Act may be certified by the Minister as an amount payable by the debtor.

• Marginal note:Registration in court

  (2) On production to the Federal Court, the certificate must be registered in the Court. When it is registered, it has the same force and effect, and all proceedings may be taken, as if the certificate were a judgment obtained in the Court for a debt of the amount specified in the certificate and interest on the amount as provided under this Act. For the purposes of any such proceedings, the certificate is a judgment of the Court against the debtor and enforceable as such.

• Marginal note:Costs

  (3) All reasonable costs and charges for the registration of the certificate or in respect of any proceedings taken to collect the amount certified are recoverable in the same way as if they had been certified in the certificate registered under this section.

• Marginal note:Protected interest in property

  (4) A memorial may be recorded for the purpose of creating a protected interest in property in a province or an interest in such property held by the debtor in the same manner as a document evidencing the following may be recorded in accordance with the law of the province:

  • (a) a judgment of the superior court of the province against a person for a debt owing by the person; and

  • (b) an amount payable by a person in the province in respect of a debt owing to Her Majesty in right of the province.

• Marginal note:Creation of protected interest

  (5) The effect of recording a memorial is, in the same manner and to the same extent as if the memorial were a document evidencing a judgment or an amount referred to in subsection (4), to create a protected interest in the property of the debtor in the province, or in any interest in that property, held by the debtor or to otherwise bind that property or interest in the property. The protected interest created is subordinate to any protected interest in respect of which all steps necessary to make it effective against other creditors were taken before the time the memorial was recorded.

• Marginal note:Proceedings in respect of memorial

  (6) If a memorial is recorded in a province, proceedings may be taken, in the same manner and to the same extent as if the memorial were a document evidencing a judgment or an amount referred to in subsection (4), in the province in respect of the memorial, including proceedings

  • (a) to enforce payment of the amount evidenced by the memorial, interest on the amount and all costs and charges paid or incurred in respect of the recording of the memorial and proceedings taken to collect the amount;

  • (b) to renew or otherwise prolong the effectiveness of the recording of the memorial;

  • (c) to cancel or withdraw the memorial wholly or in respect of any of the property or interests affected by the memorial; or

  • (d) to postpone the effectiveness of the recording of the memorial in favour of any protected interest that has been or is intended to be recorded in respect of any property or interest affected by the memorial.

• Marginal note:Federal Court may make order, etc.

  (7) If in any proceeding or as a condition precedent to any proceeding referred to in subsection (6) any order, consent or ruling is required under the law of a province to be made or given by the superior court of the province or by a judge or official of the court, a like order, consent or ruling may be made or given by the Federal Court or by a judge or official of the Federal Court and, when so made or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior court of the province or by a judge or official of the court.

• Marginal note:Presentation of documents

  (8) If a memorial, or a document relating to it, is presented for recording, for the purpose of any proceeding referred to in subsection (6), to any official in the land, personal property or other registry system of a province, it is to be accepted for recording in the same manner and to the same extent as if the memorial or document were a document evidencing a judgment or an amount referred to in subsection (4) for the purpose of a like proceeding.

• Marginal note:Access for recording

  (9) If access is sought to any person, place or thing in a province for the purpose of recording a memorial, or a document relating to it, the access must be granted in the same manner and to the same extent as if the memorial or document were a document evidencing a judgment or an amount referred to in subsection (4) for the purpose of a like proceeding.

• Marginal note:Evidence deemed to have been provided

  (10) If a memorial or document is issued by the Federal Court or signed or certified by a judge or official of the Court, any affidavit, declaration or other evidence required under the law of the province to be provided with or to accompany the memorial or document in the proceeding is deemed to have been provided with or to have accompanied the memorial or document as so required.

• Marginal note:Prohibition — sale, etc., without consent

  (11) Despite any law of Canada or of a province, no sheriff or other person may, without the written consent of the Minister, sell or otherwise dispose of any property or publish any notice or otherwise advertise in respect of any sale or other disposition of any property pursuant to any process issued or protected interest created in any proceeding to collect an amount certified in a certificate, any interest on the amount and any costs.

• Marginal note:Subsequent consent

  (12) Despite subsection (11), if the Minister’s consent is subsequently given, any property that would have been affected by a process or protected interest referred to in that subsection had the Minister’s consent been given at the time the process was issued or the protected interest was created is bound, seized, attached, charged or otherwise affected as if that consent had been given at the time the process was issued or the protected interest was created, as the case may be.

• Marginal note:Completion of notices, etc.

  (13) If information required to be set out by any sheriff or other person in a minute, notice or document required to be completed for any purpose cannot, because of subsection (11), be so set out, the sheriff or other person must complete the minute, notice or document to the extent possible without that information and, when the consent of the Minister is given, a further minute, notice or document setting out all the information is to be completed for the same purpose. The sheriff or other person is deemed to have complied with any law or rule of court requiring the information to be set out in the minute, notice or document.

• Marginal note:Application for an order

  (14) A sheriff or other person who is unable, because of subsection (11) or (13), to comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on an ex parte application by the Minister, for the purpose of giving effect to the proceeding or protected interest.

• Marginal note:Secured claims

  (15) A protected interest that is registered in accordance with subsection 87(1) of the Bankruptcy and Insolvency Act is deemed to be a claim that

  • (a) is secured by a security and that, subject to subsection 87(2) of that Act, ranks as a secured claim under that Act; and

  • (b) is referred to in paragraph 86(2)(a) of that Act.

• Marginal note:Details in certificates and memorials

  (16) Despite any law of Canada or of a province, in any certificate in respect of a debtor, in any memorial evidencing the certificate or in any writ or document issued for the purpose of collecting an amount certified, it is sufficient for all purposes

  • (a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; and

  • (b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the rate prescribed under this Act applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any particular period of time.

• Marginal note:Definitions

  (17) The definitions in this subsection apply in this section.

  memorial

  memorial means a document issued by the Federal Court evidencing a certificate registered under subsection (2) in respect of a debtor and includes a writ of that Court issued pursuant to the certificate or any notification of the document or writ. (extrait)

  protected interest

  protected interest means a charge, lien, prior claim, priority on or binding interest in property. (droit garanti)

  record

  record, in respect of a memorial, means to file, register or otherwise record the memorial. (enregistrement)

Marginal note:Detention of imported or exported goods

• 97.25 (1) Any goods that are to be exported, that have been reported under section 95 or that have been imported, by or on behalf of a debtor, are subject to a lien or hypothec for the amount owed by the debtor and may be detained by an officer at the expense of the debtor until that amount is paid.

• Marginal note:Conveyances

  (2) Any conveyance used for the importation or exportation of goods in respect of which a notice has been served under section 109.3 is subject to a lien or hypothec for the amount owed by the debtor and may be detained by an officer at the expense of the person on whom the notice was served until the amount set out in the notice is paid.

• Marginal note:Sale of detained goods

  (3) Subject to the regulations, the Minister, on giving 30 days’ notice in writing to the debtor at the debtor’s latest known address, may direct that any good imported or to be exported, or any good reported under section 95, by or on behalf of the debtor, or any conveyance, that has been detained be sold

  • (a) if the good is spirits or specially denatured alcohol, to a spirits licensee;

  • (b) if the good is wine, to a wine licensee;

  • (c) if the good is raw leaf tobacco or a tobacco product, to a tobacco licensee;

  • (c.1) if the good is a vaping product, to a vaping product licensee;

  • (d) if the good is a restricted formulation, to a licensed user; or

  • (e) in any other case, by public auction or public tender or by the Minister of Public Works and Government Services under the Surplus Crown Assets Act.

• Marginal note:Excise stamps not to be sold

  (3.1) Despite subsection (3), the Minister shall not direct that detained excise stamps be sold.

• Marginal note:Proceeds of sale

  (4) The proceeds of any sale shall be applied to amounts owed by the debtor, any expenses incurred by Her Majesty in right of Canada in respect of the goods sold and any duties on the goods and the surplus, if any, shall be paid to the debtor.

Marginal note:Set-off

97.26 The Minister may require that an amount specified by the Minister be deducted from or set-off against an amount that is or may become payable to a debtor by Her Majesty in Right of Canada. If an amount payable to a person under a provision of this Act has at any time been deducted or set-off, the amount is deemed to have been paid to the debtor at that time under that provision and to have been paid by the debtor at that time on account of the debt to Her Majesty.

Marginal note:Refund may be applied against liabilities

97.27 The Minister of Public Safety and Emergency Preparedness may, if a person is or is about to become liable to make any payment to Her Majesty in right of Canada or in right of a province, apply the amount of any drawback, refund or relief granted under section 74 or 76 of this Act or section 89, 101 or 113 of the Customs Tariff to that other liability and notify the person of that action.

Garnishment and Non-arm’s Length Transfers

Marginal note:Garnishment — general

• 97.28 (1) If the Minister has knowledge or suspects that a person is or will be, within one year, liable to make a payment to a debtor, the Minister may, by notice in writing, require the person to pay without delay, if the moneys are immediately payable, and, in any other case, as and when the moneys become payable, the moneys otherwise payable to the debtor in whole or in part to the Receiver General on account of the debtor’s liability under this Act.

• Marginal note:Garnishment — institutions

  (2) The Minister may, by notice in writing, require the following institutions or persons to pay in whole or in part to the Receiver General on account of a debtor’s liability the moneys that would otherwise be loaned, advanced or paid if the Minister has knowledge or suspects that within ninety days

  • (a) a bank, credit union, trust company or other similar person (in this section referred to as the “institution”) will loan or advance moneys to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a debtor who is indebted to the institution and who has granted security in respect of the indebtedness; or

  • (b) a person, other than an institution, will loan or advance moneys to, or make a payment on behalf of, a debtor who the Minister knows or suspects

    • (i) is employed by, or is engaged in providing services or property to, that person or was or will be, within ninety days, so employed or engaged, or

    • (ii) if that person is a corporation, is not dealing at arm’s length with that person.

  Any moneys so paid to the Receiver General are deemed to have been loaned, advanced or paid to the debtor.

• Marginal note:Effect of receipt

  (3) A receipt issued by the Minister for moneys paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment.

• Marginal note:Periodic payments

  (4) If the Minister has, under this section, required a person to pay to the Receiver General on account of the liability under this Act of a debtor moneys otherwise payable by the person to the debtor as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the requirement applies to all such payments to be made by the person to the debtor until the liability under this Act is satisfied, and operates to require payments to the Receiver General out of each such payment of such amount as is required by the Minister in a notice in writing.

• Marginal note:Failure to comply

  (5) Every person who fails to comply with a requirement under subsection (1) or (4) is liable to pay to Her Majesty in right of Canada an amount equal to the amount that the person was required under that subsection to pay to the Receiver General.

• Marginal note:Failure to comply — institutions

  (6) Every institution or person that fails to comply with a requirement under subsection (2) is liable to pay to Her Majesty in right of Canada an amount equal to the lesser of

  • (a) the total of moneys loaned, advanced or paid to the debtor, and

  • (b) the amount that the institution or person was required under that subsection to pay to the Receiver General.

• Marginal note:Service

  (7) If a person carries on business under a name or style other than the person’s own name, notification to the person of a requirement under subsection (1) or (2) may be addressed to the name or style under which the person carries on business and, in the case of personal service, is validly served if it is left with an adult person employed at the place of business of the addressee.

• Marginal note:Service — partnerships

  (8) If persons carry on business in partnership, notification to the persons of a requirement under subsection (1) or (2) may be addressed to the partnership name and, in the case of personal service, is deemed to be validly served if it is served on one of the partners or left with an adult person employed at the place of business of the partnership.

• Marginal note:Effect of payment as required

  (9) If an amount that would otherwise have been payable to or on behalf of a debtor is paid by a person to the Receiver General pursuant to a notice served on the person under this section or pursuant to an assessment under section 97.44, the person is deemed, for all purposes, to have paid the amount to or on behalf of the debtor.

• Marginal note:Application to Her Majesty in right of a province

  (10) Provisions of this Part that provide that a person who has been required by the Minister to pay to the Receiver General an amount that would otherwise be loaned, advanced or paid to a debtor who is liable to make a payment under this Act apply to Her Majesty in right of a province.

Marginal note:Liability — non-arm’s length transfers

• 97.29 (1) If a person transfers property, either directly or indirectly, by means of a trust or by any other means, to the transferor’s spouse or common-law partner or an individual who has since become the transferor’s spouse or common-law partner, an individual who was under eighteen years of age, or another person with whom the transferor was not dealing at arm’s length, the transferee and transferor are jointly and severally or solidarily liable to pay an amount equal to the lesser of

  • (a) the amount determined by the formula

    A - B

    where

    A

    is the amount, if any, by which the fair market value of the property at the time of transfer exceeds the fair market value at that time of the consideration given by the transferee for the transfer of the property, and

    B

    is the amount, if any, by which the amount assessed the transferee under subsection 325(2) of the Excise Tax Act, subsection 160(2) of the Income Tax Act and subsection 297(3) of the Excise Act, 2001 in respect of the property exceeds the amount paid by the transferor in respect of the amount so assessed, and

  • (b) the total of all amounts each of which is

    • (i) an amount that the transferor is liable to pay under this Act, or

    • (ii) interest or a penalty for which the transferor is liable as of the time of transfer.

  However, nothing in this subsection limits the liability of the transferor under any other provision of this Act.

• Marginal note:Fair market value of undivided interest

  (2) For the purpose of this section, the fair market value at any time of an undivided interest in a property, expressed as a proportionate interest in that property, is, subject to subsection (4), equal to the same proportion of the fair market value of that property at that time.

• Marginal note:Rules applicable

  (3) If a transferor and transferee have, under subsection (1), become jointly and severally or solidarily liable in respect of all or part of the liability of the transferor under this Act, the following rules apply:

  • (a) a payment by the transferee on account of the transferee’s liability discharges, to the extent of the payment, the joint liability; and

  • (b) a payment by the transferor on account of the transferor’s liability discharges the transferee’s liability only to the extent that the payment operates to reduce the transferor’s liability to an amount less than the amount in respect of which the transferee was made jointly and severally or solidarily liable.

• Marginal note:Transfers to spouse or common-law partner

  (4) Despite subsection (1), if at any time a debtor transfers property to the debtor’s spouse or common-law partner under a decree, order or judgment of a competent tribunal or under a written separation agreement and, at that time, the debtor and the debtor’s spouse or common-law partner were separated and living apart as a result of the breakdown of their marriage or common-law partnership (as defined in subsection 248(1) of the Income Tax Act), for the purposes of paragraph (1)(a), the fair market value at that time of the property so transferred is deemed to be nil. However, nothing in this subsection limits the liability of the debtor under any other provision of this Act.

• Marginal note:Related persons

  (5) For the purposes of this section,

  • (a) related persons are deemed not to deal with each other at arm’s length, and it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length;

  • (b) persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that references in those subsections to “corporation” are to be read as references to “corporation or partnership”, and references in those subsections to “shares” or “shareholders” are, in respect of a partnership, to be read as references to “rights” or “partners”, respectively; and

  • (c) a member of a partnership is deemed to be related to the partnership.

• Marginal note:Definitions

  (6) The definitions in this subsection apply in this section.

  common-law partner

  common-law partner has the same meaning as in subsection 248(1) of the Income Tax Act except that references to “taxpayer” in that definition are to be read as references to “debtor”. (conjoint de fait)

  common-law partnership

  common-law partnership has the same meaning as in subsection 248(1) of the Income Tax Act. (union de fait)

  property

  property includes money. (bien)

Acquisition of Property and Seizures

Marginal note:Acquisition of debtor’s property

97.3 For the purpose of collecting amounts owed by a debtor, the Minister may purchase or otherwise acquire any interest in the debtor’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption, and may dispose of any interest so acquired in any manner that the Minister considers reasonable.

Marginal note:Moneys seized from debtor

• 97.31 (1) If the Minister has knowledge or suspects that a person is holding moneys that were seized by a police officer, in the course of administering or enforcing the criminal law of Canada, from a debtor and that are restorable to the debtor, the Minister may, by notice in writing, require that person to turn over the moneys otherwise restorable to the debtor, in whole or in part, to the Receiver General on account of the debtor’s liability under this Act.

• Marginal note:Receipt

  (2) A receipt issued for moneys turned over is a good and sufficient discharge of the requirement to restore the moneys to the debtor to the extent of the amount so turned over.

Marginal note:Seizure of chattels

• 97.32 (1) If a person fails to pay an amount as required under this Act, the Minister may give thirty days notice to the person by registered or certified mail addressed to the person at their latest known address of the Minister’s intention to direct that the person’s goods and chattels be seized and sold. If the person fails to make the payment before the expiration of the thirty days, the Minister may issue a certificate of the failure and direct that the person’s goods and chattels be seized.

• Marginal note:Sale of seized property

  (2) Seized property must be kept for ten days at the expense and risk of the owner and, if the owner does not pay the amount due together with all expenses within the ten days, the property seized shall be sold by public auction.

• Marginal note:Notice of sale

  (3) Except in the case of perishable goods, notice of the sale setting out the time and place of the sale together with a general description of the property to be sold must be published, a reasonable time before the goods are sold, in one or more newspapers of general local circulation.

• Marginal note:Surplus

  (4) Any surplus resulting from a sale, after deduction of the amount owing and all expenses, must be paid or returned to the owner of the property seized.

• Marginal note:Exemption from seizure

  (5) Goods and chattels of any person that would be exempt from seizure under a writ of execution issued out of a superior court of the province in which the seizure is made are exempt from seizure under this section.

Marginal note:Person leaving Canada

• 97.33 (1) If the Minister suspects that a person who is liable to pay an amount under this Act or would be so liable if the time for payment of the amount had arrived has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice in writing, demand payment of the amount. Despite any other provision of this Act, the person shall pay the amount immediately.

• Marginal note:Failure to pay

  (2) If a person fails to pay an amount as required, the Minister may direct that the goods and chattels of the person be seized and subsections 97.32(2) to (5) apply.

Collection Restrictions

Marginal note:Collection action delayed

• 97.34 (1) If a person is liable for the payment of an amount under this Act, if an amount is demanded in a notice served under section 109.3 or 124, or if an amount is demanded under paragraph 133(1)(c) or subsection 133(1.1) in a notice served under subsection 131(2), the Minister must not, for the purpose of collecting the amount, take the following actions until the ninety-first day after the day notice is given to the debtor:

  • (a) commence legal proceedings in a court;

  • (b) certify the amount under section 97.24;

  • (c) require the retention of the amount by way of deduction or set-off under section 97.26;

  • (d) require a person or institution to make a payment under section 97.28;

  • (e) require a person to turn over moneys under subsection 97.31(1); or

  • (f) give a notice, issue a certificate or make a direction under subsection 97.32(1).

• Marginal note:Appeal to Federal Court

  (2) If a person has appealed a decision of the Minister of Public Safety and Emergency Preparedness to the Federal Court under section 97.23 or 135, the Minister must not take any action described in subsection (1) to collect the amount in controversy before the date of the decision of the Court or the day on which the person discontinues the appeal.

• Marginal note:Reference to Canadian International Trade Tribunal

  (3) If the President has referred a question to the Canadian International Trade Tribunal under section 70, the Minister must not take any action described in subsection (1) to collect the amount in controversy before the day on which the question is determined by the Tribunal.

• Marginal note:Effect of appeal

  (4) If a person has made a request under section 60 or 129 or has appealed under section 67 or 68 and the person agrees in writing with the Minister of Public Safety and Emergency Preparedness to delay proceedings on the request or appeal, as the case may be, until judgment has been given in another action before the Federal Court, the Canadian International Trade Tribunal or the Supreme Court of Canada, in which action the issue is the same or substantially the same as that raised in the request or appeal of the person, the Minister may take any of the actions described in subsection (1) for the purpose of collecting the amount payable, or a part of the amount payable, determined in a manner consistent with the decision or judgment in the other action at any time after the Minister of Public Safety and Emergency Preparedness notifies the person in writing that

  • (a) the decision of the Canadian International Trade Tribunal or Federal Court in that action has been received by the Minister of Public Safety and Emergency Preparedness;

  • (b) judgment has been pronounced by the Federal Court of Appeal in that action; or

  • (c) judgment has been delivered by the Supreme Court of Canada in that action.

• Marginal note:Effect of taking security

  (5) The Minister must not, for the purpose of collecting an amount payable, or a part of an amount payable, under this Act, take any of the actions described in subsection (1) if a person has given security to the Minister of Public Safety and Emergency Preparedness when requesting or appealing from a decision of that Minister or the President.

Marginal note:Authorization to proceed immediately

• 97.35 (1) Despite section 97.34, if, on ex parte application by the Minister, a judge is satisfied that there are reasonable grounds to believe that the collection of all or any part of an amount assessed or demanded under this Act would be jeopardized by a delay in the collection of that amount, the judge shall, on any terms that the judge considers reasonable in the circumstances, authorize the Minister to immediately take any action described in that section to collect the amount.

• Marginal note:Notice not sent

  (2) An authorization may be granted by a judge notwithstanding that a notice in respect of the amount has not been sent to the debtor at or before the time the application is made if the judge is satisfied that the receipt of the notice by the debtor would likely further jeopardize the collection of the amount and, for the purposes of sections 97.22, 97.24, 97.26, 97.28, 97.31 and 97.32, the amount in respect of which an authorization is granted is deemed to be an amount payable under this Act.

• Marginal note:Affidavits

  (3) Statements contained in an affidavit filed in the context of an application made under this section may be based on belief but must include the grounds for the belief.

• Marginal note:Service of authorization

  (4) An authorization must be served by the Minister on the debtor within 72 hours after it is granted, except if the judge orders the authorization to be served at some other time specified in the authorization, and, if a notice has not been sent to the debtor at or before the time of the application, the notice is to be served together with the authorization.

• Marginal note:How service effected

  (5) Service on a debtor must be effected by personal service or in accordance with the directions of a judge.

• Marginal note:Application to judge for direction

  (6) If service on a debtor cannot reasonably otherwise be effected as and when required under this section, the Minister may, as soon as is practicable, apply to a judge for further direction.

• Marginal note:Review of authorization

  (7) If a judge of a court has granted an authorization, the debtor may, on six clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization.

• Marginal note:Limitation period for review application

  (8) An application under subsection (7) must be made

  • (a) within thirty days after the day on which the authorization was served on the debtor in accordance with this section; or

  • (b) within any further time that a judge may allow, on being satisfied that the application was made as soon as was practicable.

• Marginal note:Hearing in camera

  (9) An application may, on request of the debtor, be heard in camera, if the debtor establishes to the satisfaction of the judge that the circumstances of the case justify in camera proceedings.

• Marginal note:Disposition of application

  (10) On an application, the judge is to determine the question summarily and may confirm, set aside or vary the authorization and make any other order that the judge considers appropriate.

• Marginal note:Directions

  (11) If any question arises as to the course to be followed in connection with anything done or being done under this section and there is no direction in this section in respect of the matter, a judge may give any direction in respect of the matter that, in the opinion of the judge, is appropriate.

• Marginal note:No appeal from review order

  (12) No appeal lies from an order of a judge made under subsection (10).

Trustees, Receivers and Personal Representatives

Marginal note:Bankruptcies

• 97.36 (1) The following rules apply to a person who is a bankrupt:

  • (a) the trustee in bankruptcy is the agent of the bankrupt and any act performed by the trustee in the administration of the estate of the bankrupt or in the carrying on of any business of the bankrupt is deemed to have been made by the trustee as agent of the bankrupt;

  • (b) the estate of the bankrupt is not a trust or an estate;

  • (c) the property and money of the bankrupt immediately before the day of the bankruptcy does not pass to or vest in the trustee in bankruptcy on the bankruptcy order being made or the assignment in bankruptcy being filed but remains vested in the bankrupt;

  • (d) the trustee in bankruptcy, and not the bankrupt, is liable for the payment of all amounts (other than amounts that relate solely to activities in which the bankrupt begins to engage on or after the day of the bankruptcy and to which the bankruptcy does not relate) that become payable by the bankrupt under this Act during the period beginning on the day immediately after the day the trustee became the trustee in bankruptcy of the bankrupt and ending on the day the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that

    • (i) the trustee is liable for the payment of amounts that became payable by the bankrupt after the day of the bankruptcy only to the extent of the property and money of the bankrupt in possession of the trustee available to satisfy the liability, and

    • (ii) the trustee is not liable for the payment of any amount for which a receiver is liable under section 97.37,

  • (e) if, on or after the day of bankruptcy, the bankrupt begins to engage in particular activities to which the bankruptcy does not relate, the particular activities are deemed to be separate from the activities of the person to which the bankruptcy relates as though the particular activities were activities of a separate person;

  • (f) subject to paragraph (h), the trustee in bankruptcy shall perform all the obligations under this Act of the bankrupt in respect of the activities of the bankrupt to which the bankruptcy relates for the period beginning on the day immediately after the day of bankruptcy and ending on the day the discharge of the trustee is granted under the Bankruptcy and Insolvency Act;

  • (g) subject to paragraph (h), if the bankrupt has not on or before the day of bankruptcy fulfilled all of their obligations under this Act in respect of any activities of the bankrupt on or before the day of bankruptcy, the trustee in bankruptcy shall fulfil those obligations, unless the Minister waives in writing the requirement for the trustee to do so;

  • (h) if there is a receiver with authority in respect of a business, a property, affairs or assets of the bankrupt, the trustee in bankruptcy is not required to perform the obligations of the bankrupt under this Act to the extent that the receiver is required under section 97.37 to perform those obligations; and

  • (i) the property and money held by the trustee in bankruptcy for the bankrupt on the day an order of absolute discharge of the bankrupt is granted under the Bankruptcy and Insolvency Act does not pass to the bankrupt on the order being granted but is held by and vested in the bankrupt continuously since the day it was acquired by the bankrupt or the trustee, as the case may be.

• Definition of bankrupt

  (2) In this section, bankrupt has the same meaning as in subsection 2(1) of the Bankruptcy and Insolvency Act.

Marginal note:Definitions

• 97.37 (1) The definitions in this subsection apply in this section.

  business

  business includes a part of a business. (entreprise)

  relevant assets

  relevant assets of a receiver means

  • (a) if the receiver’s authority relates to all the properties, businesses, affairs and assets of a person, all those properties, businesses, affairs and assets; and

  • (b) if the receiver’s authority relates to only part of the properties, businesses, affairs or assets of a person, that part of the properties, businesses, affairs or assets, as the case may be. (actif pertinent)

• Marginal note:Receivers

  (2) The following rules apply to a receiver who on a particular day is vested with the authority to manage, operate, liquidate or wind up any business or property, or to manage and care for the affairs and assets, of a person:

  • (a) the receiver is an agent of the person and any act performed by the receiver in respect of the relevant assets of the receiver is deemed to have been performed, as the case may be, by the receiver as agent on behalf of the person;

  • (b) the receiver is not a trustee of the estate of the person or any part of the estate of the person;

  • (c) if the relevant assets of the receiver are a part and not all of the person’s businesses, properties, affairs or assets, the relevant assets of the receiver are deemed to be, throughout the period during which the receiver is acting as receiver of the person, separate from the remainder of the businesses, properties, affairs or assets of the person as though the relevant assets were businesses, properties, affairs or assets, as the case may be, of a separate person;

  • (d) the person and the receiver are jointly and severally or solidarily liable for the payment of all amounts that become payable by the person under this Act before or during the period during which the receiver is acting as receiver of the person to the extent that the amounts can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the amounts became payable except that

    • (i) the receiver is liable for the payment of amounts that became payable before that period only to the extent of the property and money of the person in possession or under the control and management of the receiver after

      • (A) satisfying the claims of creditors whose claims ranked, on the particular day, in priority to the claim of the Crown in respect of the amounts, and

      • (B) paying any amounts that the receiver is required to pay to a trustee in bankruptcy of the person, and

    • (ii) the payment by the person or the receiver of an amount in respect of the liability discharges the joint liability to the extent of that amount;

  • (e) the receiver shall perform all the obligations, in respect of the relevant assets of the receiver for the period during which the receiver is acting as receiver, that are required under this Act to be performed by the person, as if the relevant assets were the only properties, businesses, affairs and assets of the person; and

  • (f) if the person has not on or before the particular day fulfilled their obligations under this Act before the period during which the receiver was acting as receiver, the receiver shall fulfil those obligations for that period that relate to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that period, unless the Minister waives in writing the requirement for the receiver to do so.

Marginal note:Definitions

• 97.38 (1) The definitions in this subsection apply in this section and in section 97.39.

  trust

  trust includes the estate of a deceased individual. (fiducie)

  trustee

  trustee includes the personal representative of a deceased individual, but does not include a receiver. (fiduciaire)

• Marginal note:Trustee’s liability

  (2) Subject to subsection (3), each trustee of a trust is liable to satisfy every obligation imposed on the trust under this Act, whether the obligation was imposed during or before the period during which the trustee acts as trustee of the trust, but the satisfaction of an obligation of a trust by one of the trustees of the trust discharges the liability of all other trustees of the trust to satisfy that obligation.

• Marginal note:Joint and several or solidary liability

  (3) A trustee of a trust is jointly and severally or solidarily liable with the trust and each of the other trustees, if any, for the payment of all amounts that become payable by the trust under this Act before or during the period during which the trustee acts as trustee of the trust except that

  • (a) the trustee is liable for the payment of amounts that became payable before that period only to the extent of the property and money of the trust under the control of the trustee; and

  • (b) the payment by the trust or the trustee of an amount in respect of the liability discharges the joint liability to the extent of that amount.

• Marginal note:Waiver

  (4) The Minister may, in writing, waive the requirement for the personal representative of a deceased individual to fulfil the obligations under this Act in respect of the activities of the deceased individual that occurred on or before the day the individual died.

• Marginal note:Activities of a trustee

  (5) For the purposes of this Act, if a person acts as trustee of a trust, anything done by the person in the person’s capacity as trustee of the trust is deemed to have been done by the trust and not by the person.

Definition of representative

• 97.39 (1) In this section, representative means a person, other than a trustee in bankruptcy or a receiver, who is administering, winding up, controlling or otherwise dealing with any property, business, commercial activity or estate of another person.

• Marginal note:Certificates for receivers

  (2) Every receiver shall, before distributing to any person any property or money under the control of the receiver in the receiver’s capacity as receiver, obtain a certificate from the Minister certifying that the following amounts have been paid or security for the payment of the amounts has been accepted by the Minister:

  • (a) amounts that the person is or can reasonably be expected to become liable to pay under this Act at or before the time the distribution is made; and

  • (b) amounts that the receiver is or can reasonably be expected to become liable to pay in the receiver’s capacity as receiver.

• Marginal note:Certificates for representatives

  (3) Every representative shall, before distributing to any person any property or money under the control of the representative in the representative’s capacity as representative, obtain a certificate from the Minister certifying that the following amounts have been paid or that security for the payment of the amounts has been accepted by the Minister:

  • (a) amounts that the person is or can reasonably be expected to become liable to pay under this Act at or before the time the distribution is made; and

  • (b) amounts that the representative is or can reasonably be expected to become liable to pay in the representative’s capacity as representative.

• Marginal note:Liability for failure to obtain certificate

  (4) Any receiver or representative who distributes property or money without obtaining a certificate in respect of the amounts referred to in subsection (2) or (3) is personally liable for the payment of those amounts to the extent of the value of the property or money so distributed.

Amalgamations and Windings-up

Marginal note:Amalgamations

• 97.4 (1) If two or more corporations (in this section each referred to as a “predecessor”) are merged or amalgamated to form one corporation (in this section referred to as the “new corporation”), the new corporation is, for the purposes of this Act, deemed to be a separate person from each of the predecessors and the same corporation as, and a continuation of, each predecessor.

• Marginal note:Exception

  (2) Subsection (1) does not apply to the merger or amalgamation of two or more corporations that is the result of the acquisition of property of one corporation by another corporation pursuant to the purchase of the property by the other corporation or as the result of the distribution of the property to the other corporation on the winding-up of the corporation.

Marginal note:Winding-up

97.41 For the purposes of this Act, if at any time a particular corporation is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before that time, owned by another corporation, the other corporation is deemed to be the same corporation as, and a continuation of, the particular corporation.

Partnerships

Marginal note:Partnerships

• 97.42 (1) For the purposes of this Act, anything done by a person as a member of a partnership is deemed to have been done by the partnership in the course of the partnership’s activities and not to have been done by the person.

• Marginal note:Joint and several or solidary liability

  (2) A partnership and each member or former member (each of which is referred to in this subsection as the “member”) of the partnership (other than a member which is a limited partner and is not a general partner) are jointly and severally or solidarily liable for

  • (a) the payment of all amounts that become payable by the partnership under this Act before or during the period during which the member is a member of the partnership or, if the member was a member of the partnership at the time the partnership was dissolved, after the dissolution of the partnership, except that

    • (i) the member is liable for the payment of amounts that become payable before that period only to the extent of the property and money that is regarded as property or money of the partnership in accordance with the laws of the province governing the partnership, and

    • (ii) the payment by the partnership or by any member of the partnership of an amount in respect of the liability discharges the joint liability to the extent of that amount; and

  • (b) all other obligations under this Act that arose before or during the period for which the partnership is liable or, if the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution.

Unincorporated Bodies

Marginal note:Compliance by unincorporated bodies

97.43 If any amount is required to be paid or any other thing is required to be done under this Act by a person (in this section referred to as the “body”) that is not an individual, corporation, partnership, trust or estate, the following persons are jointly and severally or solidarily liable to pay that amount or to comply with the requirement:

• (a) every member of the body holding office as president, chairperson, treasurer, secretary or similar officer of the body;

• (b) if there are no members referred to in paragraph (a), every member of any committee having management of the affairs of the body; and

• (c) if there are no members referred to in paragraph (a) or (b), every member of the body.

The payment of the amount or the fullfilment of the requirement by a member is deemed to be compliance with the requirement.

Assessments, Objections and Appeals

Assessments

Marginal note:Assessments — garnishments and non-arms length transfers

• 97.44 (1) The Minister may assess any amount that a person is liable to pay

  • (a) under section 97.28, before the expiry of four years after the notice from the Minister requiring the payment is issued to the person; and

  • (b) under section 97.29, at any time.

  The Minister may reassess the amount or make an additional assessment.

• Marginal note:Interest

  (2) If a person has been assessed an amount under subsection (1), the person shall pay, in addition to the amount, interest at the prescribed rate for the period beginning on the first day after the day the amount was assessed and ending on the day the amount is paid.

• Marginal note:Exception

  (3) Paragraph (1)(a) does not apply in respect of a reassessment of a person made

  • (a) to give effect to a decision on an objection or appeal; or

  • (b) with the consent in writing of the person to dispose of an appeal.

• Marginal note:When assessment may be made

  (4) An assessment under paragraph (1)(a) may be made at any time if the person to be assessed has

  • (a) made a misrepresentation that is attributable to the person’s neglect, carelessness or wilful default;

  • (b) committed fraud in supplying, or failing to supply, any information under this Act; or

  • (c) filed a waiver under subsection (5) that is in effect at that time.

• Marginal note:Waiver

  (5) Any person may, within the time otherwise limited by paragraph (1)(a) for assessing the person, waive the application of that paragraph by filing with the Minister a waiver in the prescribed form specifying the matter in respect of which the person waives the application of that paragraph.

• Marginal note:Revoking waiver

  (6) Any person who files a waiver may revoke the waiver on six months notice to the Minister by filing with the Minister a notice of revocation of the waiver in the prescribed form.

Marginal note:Liability not affected

• 97.45 (1) Liability under this Part to pay any amount is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

• Marginal note:Assessment deemed valid

  (2) Subject to being reassessed or vacated as a result of an objection or appeal under this Part, an assessment is valid and binding, despite any error, defect or omission in the assessment or in any proceeding under this Part relating to it.

• Marginal note:Irregularities

  (3) An appeal from an assessment must not be allowed by reason only of an irregularity, informality, omission or error on the part of any person in the observation of any directory provision of this Part.

Marginal note:Notice of assessment

97.46 After making an assessment, the Minister must send to the person assessed a notice of assessment.

Marginal note:Assessment before collection

• 97.47 (1) The Minister may not collect an amount under section 97.44 unless that amount has been assessed.

• Marginal note:Payment of remainder

  (2) An amount that is unpaid by a person and the subject of a notice of assessment is payable immediately by the person to the Receiver General.

• Marginal note:Security if objection or appeal

  (3) If a person objects to or appeals from an assessment under this Part, the Minister shall accept security, in an amount and a form satisfactory to the Minister, given by or on behalf of the person, for the payment of any amount that is in controversy.

Objections and Appeals

Marginal note:Objection to assessment

• 97.48 (1) Any person who has been assessed under section 97.44 and who objects to the assessment may, within 90 days after the day the notice of the assessment is sent to the person, file with the Minister a notice of objection in the prescribed form and manner of filing setting out the reasons for the objection and all relevant facts.

• Marginal note:Issues to be decided

  (2) If a person objects to an assessment, the notice of objection must

  • (a) reasonably describe each issue to be decided;

  • (b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

  • (c) provide the facts and reasons relied on by the person in respect of each issue.

• Marginal note:Late compliance

  (3) If a notice of objection filed by a person to whom subsection (2) applies does not include the information required by paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice, the Minister may in writing request the person to provide the information, and those paragraphs are deemed to have been complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.

• Marginal note:Limitation on objections

  (4) If a person has filed a notice of objection to an assessment and the Minister makes a particular assessment under subsection (8) pursuant to the notice of objection or in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue

  • (a) only if the person complied with subsection (2) in the notice with respect to that issue; and

  • (b) only with respect to the relief sought in respect of that issue as specified by the person in the notice.

• Marginal note:Application of subsection (4)

  (5) If a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) pursuant to the notice of objection, subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not a part of the earlier assessment.

• Marginal note:Limitation on objections

  (6) Despite subsection (1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person.

• Marginal note:Acceptance of objection

  (7) The Minister may accept a notice of objection even if it was not filed in the prescribed manner.

• Marginal note:Consideration of objection

  (8) On receipt of a notice of objection, the Minister must, without delay, reconsider the assessment and vacate or confirm the assessment or make a reassessment.

• Marginal note:Waiving reconsideration

  (9) If, in a notice of objection, a person who wishes to appeal directly to the Tax Court of Canada requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.

• Marginal note:Notice of decision

  (10) After reconsidering or confirming an assessment, the Minister must send to the person objecting a written notice of the Minister’s decision by registered or certified mail.

Marginal note:Appeal to the Tax Court of Canada

97.49 If a person files a notice of objection to an assessment and the Minister sends to the person a notice of a reassessment or an additional assessment, in respect of any matter dealt with in the notice of objection, the person may, within ninety days after the day the notice of reassessment or additional assessment was sent by the Minister,

• (a) appeal to the Tax Court of Canada; or

• (b) if an appeal has already been instituted in respect of the matter, amend the appeal by joining to it an appeal in respect of the reassessment or additional assessment in any manner and on any terms that the Court directs.

Marginal note:Extension of time by Minister

• 97.5 (1) If no objection to an assessment is filed under section 97.48, within the time limit otherwise provided, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application.

• Marginal note:Contents of application

  (2) The application must set out the reasons why the notice of objection was not filed within the time otherwise limited by this Part for doing so.

• Marginal note:How application made

  (3) The application must be made by delivering or mailing the application and a copy of the notice of objection to the Chief of Appeals in a Tax Services Office or Taxation Centre of the Canada Revenue Agency.

• Marginal note:Exception

  (4) The Minister may accept the application even if it was not delivered or mailed to the person or place specified in subsection (3).

• Marginal note:Duties of Minister

  (5) On receipt of the application, the Minister must, without delay, consider it, and notify the person of his or her decision by registered or certified mail.

• Marginal note:Date of objection if application granted

  (6) If the application is granted, the notice of objection is deemed to have been filed on the day the decision of the Minister is mailed to the person.

• Marginal note:When order to be made

  (7) No application may be granted under this section unless

  • (a) the application is made within one year after the expiration of the time otherwise limited by this Part for objecting; and

  • (b) the person demonstrates that

    • (i) within the time otherwise limited by this Part for objecting, the person was unable to act or to give a mandate to act in the person’s name, or the person had a bona fide intention to object to the assessment,

    • (ii) it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted.

Marginal note:Extension of time by Tax Court of Canada

• 97.51 (1) A person who has made an application under section 97.5 may apply to the Tax Court of Canada to have the application granted after either

  • (a) the Minister has refused the application; or

  • (b) ninety days have elapsed after service of the application and the Minister has not notified the person of the Minister’s decision.

  If paragraph (a) applies, the application under this subsection must be made within thirty days after the application is refused.

• Marginal note:How application made

  (2) The application must be made by filing in the Registry of the Tax Court of Canada, in accordance with the provisions of the Tax Court of Canada Act, three copies of the documents filed under subsection 97.5(3).

• Marginal note:Copy to the Commissioner

  (3) After receiving the application, the Tax Court of Canada must send a copy of it to the office of the Commissioner.

• Marginal note:Powers of Court

  (4) The Tax Court of Canada may dispose of the application by dismissing or granting it. If the Court grants the application, it may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order.

• Marginal note:When application to be granted

  (5) No application may be granted under this section unless

  • (a) the application was made under subsection 97.5(1) within one year after the expiration of the time set out in this Part for objecting; and

  • (b) the person demonstrates that

    • (i) within the time otherwise limited by this Part for objecting, the person was unable to act or to give a mandate to act in the person’s name, or the person had a bona fide intention to object to the assessment,

    • (ii) it would be just and equitable to grant the application, and

    • (iii) the application was made under subsection 97.5(1) as soon as circumstances permitted.

Marginal note:Extension of time to appeal

• 97.52 (1) If no appeal to the Tax Court of Canada has been taken under section 97.53 within the time set out in that section, a person may make an application to the Court for an order extending the time within which an appeal may be made, and the Court may make an order extending the time for appealing and may impose any terms that it considers just.

• Marginal note:Contents of application

  (2) The application must set out the reasons why the appeal was not taken on time.

• Marginal note:How application made

  (3) The application must be made by filing in the Registry of the Tax Court of Canada, in accordance with the Tax Court of Canada Act, three copies of the application together with three copies of the notice of appeal.

• Marginal note:Copy to Deputy Attorney General of Canada

  (4) After receiving the application, the Tax Court of Canada must send a copy of the application to the office of the Deputy Attorney General of Canada.

• Marginal note:When order to be made

  (5) No order may be made under this section unless

  • (a) the application was made within one year after the expiration of the time otherwise limited by this Part for appealing; and

  • (b) the person demonstrates that

    • (i) within the time otherwise limited by this Part for appealing, the person was unable to act or to give a mandate to act in the person’s name, or the person had a bona fide intention to appeal,

    • (ii) it would be just and equitable to grant the application,

    • (iii) the application was made as soon as circumstances permitted, and

    • (iv) there are reasonable grounds for appealing from an assessment.

Marginal note:Appeal

97.53 A person who has filed a notice of objection to an assessment under this Part may appeal to the Tax Court of Canada to have the assessment vacated or a reassessment made after either

• (a) the Minister has confirmed the assessment or has reassessed; or

• (b) 180 days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed.

If paragraph (a) applies, an application to appeal under this section must be made within ninety days after the day notice is sent to the person under subsection 97.48(10).

Marginal note:Limitation on appeals to the Tax Court of Canada

• 97.54 (1) Despite section 97.49 and 97.53, a person may appeal to the Tax Court of Canada only with respect to

  • (a) an issue in respect of which the person has complied with subsection 97.48(2) in the notice of objection; or

  • (b) an issue described in subsection 97.48(5) if the person was not required to file a notice of objection to the assessment that gave rise to the issue.

  If paragraph (a) applies, the person may appeal only with respect to the relief sought in respect of the issue specified by the person in the notice.

• Marginal note:No right of appeal

  (2) Despite sections 97.49 and 97.53, a person may not appeal to the Tax Court of Canada to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person.

Marginal note:Institution of appeal

97.55 An appeal to the Tax Court of Canada under this Part, other than one referred to in section 18.3001 of the Tax Court of Canada Act, must be taken in the manner set out in that Act or in any rules made under that Act.

Marginal note:Notice to Commissioner

• 97.56 (1) If an appeal referred to in section 18.3001 of the Tax Court of Canada Act is made to the Tax Court of Canada, the Court must immediately send a copy of the notice of appeal to the office of the Commissioner.

• Marginal note:Notice, etc., forwarded to Tax Court of Canada

  (2) Immediately after receiving notice of an appeal, the Commissioner must forward to the Tax Court of Canada and the appellant copies of all applications, notices of assessment, notices of objection and notifications, if any, that are relevant to the appeal. Once forwarded, the copies form part of the record before the Tax Court of Canada and are evidence of the existence of the documents and of the making of the statements contained in them.

Marginal note:Disposition of appeal

97.57 The Tax Court of Canada may dispose of an appeal from an assessment by dismissing or allowing it. If the appeal is allowed, the Court may vacate the assessment or refer it back to the Minister for reconsideration and reassessment.

Marginal note:References to Tax Court of Canada

• 97.58 (1) If the Minister and another person agree in writing that a question arising under this Part, in respect of any assessment or proposed assessment, should be determined by the Tax Court of Canada, that question shall be determined by that Court.

• Marginal note:Time during consideration not to count

  (2) The time between the day proceedings are taken in the Tax Court of Canada to have a question determined and the day the question is finally determined must not be counted in the calculation of

  • (a) the four-year period referred to in paragraph 97.44(1)(a);

  • (b) the time for service of a notice of objection to an assessment under section 97.48; or

  • (c) the time within which an appeal may be instituted under section 97.53.

PART VIEnforcement

Powers of Officers

Marginal note:Search of the person

• 98 (1) An officer may search

  • (a) any person who has arrived in Canada, within a reasonable time after his arrival in Canada,

  • (b) any person who is about to leave Canada, at any time prior to his departure, or

  • (c) any person who has had access to an area designated for use by persons about to leave Canada and who leaves the area but does not leave Canada, within a reasonable time after he leaves the area,

  if the officer suspects on reasonable grounds that the person has secreted on or about his person anything in respect of which this Act has been or might be contravened, anything that would afford evidence with respect to a contravention of this Act or any goods the importation or exportation of which is prohibited, controlled or regulated under this or any other Act of Parliament.

• Marginal note:Person taken before senior officer

  (2) An officer who is about to search a person under this section shall, on the request of that person, forthwith take him before the senior officer at the place where the search is to take place.

• Marginal note:Idem

  (3) A senior officer before whom a person is taken pursuant to subsection (2) shall, if he sees no reasonable grounds for the search, discharge the person or, if he believes otherwise, direct that the person be searched.

• Marginal note:Search by same sex

  (4) No person shall be searched under this section by a person who is not of the same sex, and if there is no officer of the same sex at the place at which the search is to take place, an officer may authorize any suitable person of the same sex to perform the search.