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Customs Tariff (S.C. 1997, c. 36)

Full Document:  

Act current to 2022-06-01 and last amended on 2021-06-21. Previous Versions

PART 3Duties Relief (continued)

DIVISION 2Importation without Full Payment of Duties (continued)

Duty Deferral (continued)

Marginal note:Regulations

 The Governor in Council may, on the recommendation of the Minister of Public Safety and Emergency Preparedness, make regulations

  • (a) prescribing, for the purposes of section 89,

    • (i) classes of persons who may apply for relief,

    • (ii) classes of goods for which, and the circumstances and conditions under which, relief may not be granted,

    • (iii) the circumstances in which, and the classes of goods in respect of which, relief of duties levied under sections 21.1 to 21.3 or under the Special Import Measures Act, a surtax or temporary duty imposed under Division 4 of Part 2, a tax levied under the Excise Tax Act or a duty imposed under the Excise Act, 2001 may not be granted,

    • (iv) the period after the release of the goods within which those goods or the goods processed in Canada must be exported, and

    • (v) the portion of duties otherwise payable that may be relieved;

  • (b) prescribing, for the purposes of paragraph 89(1)(a), the uses to which goods may be put or operations that goods may undergo after which the goods are considered to be in the same condition;

  • (c) prescribing, for the purposes of paragraphs 89(1)(d) and (e), goods that are to be considered to be of the same class;

  • (d) prescribing,

    • (i) for the purposes of paragraph 89(3)(b), classes of ships or aircraft, and

    • (ii) for the purposes of paragraph 89(3)(c), classes of telegraph cable ships;

  • (e) prescribing, for the purposes of section 90, the circumstances and conditions in which a certificate may be issued, amended, suspended, renewed, cancelled or reinstated;

  • (f) for the purposes of section 91,

    • (i) prescribing qualifications that must be met by an operator of a bonded warehouse,

    • (ii) prescribing the conditions under which a licence for the operation of a bonded warehouse may be issued, including the security that may be required of an operator of a bonded warehouse in order to be granted a licence, the duration of such a licence and the fees or the manner of determining any fees to be paid for such a licence,

    • (iii) prescribing the form, nature and conditions of any required security,

    • (iv) prescribing the circumstances under which a licence for the operation of a bonded warehouse may be amended, suspended, renewed, cancelled or reinstated,

    • (v) establishing standards for the operation and maintenance of the facilities of a bonded warehouse,

    • (vi) prescribing the manner of acknowledging receipt of goods in a bonded warehouse,

    • (vii) prescribing facilities, equipment and personnel that must be provided at a bonded warehouse,

    • (viii) regulating the transfer of ownership of goods in a bonded warehouse,

    • (ix) prescribing restrictions as to the classes of goods that may be received in a bonded warehouse,

    • (x) prescribing circumstances in which goods shall not be received in a bonded warehouse,

    • (xi) prescribing the period within which goods that have been delivered to a bonded warehouse shall be removed,

    • (xii) prescribing classes of goods that may be forfeited if they are not removed from a bonded warehouse within the prescribed period, and

    • (xiii) otherwise regulating the operation of a bonded warehouse;

  • (g) designating certain classes of goods as ships’ stores for use on board a conveyance of a prescribed class, including a class based on

    • (i) the physical attributes, functions or legal descriptions of conveyances,

    • (ii) areas within which conveyances voyage,

    • (iii) requirements, or limitations, related to voyages of conveyances, or

    • (iv) any combination of the bases mentioned in subparagraphs (i) to (iii);

  • (g.1) limiting the quantity of goods referred to in paragraph (g) that may be used as described in that paragraph during any prescribed period or periods;

  • (h) regulating or prohibiting the delivery to conveyances of goods designated as ships’ stores;

  • (i) regulating or prohibiting the transfer from one conveyance to another of goods designated as ships’ stores; and

  • (j) prescribing anything required to be prescribed by the Governor in Council under sections 89 to 94 and 96 to 98.

  • 1997, c. 36, s. 99
  • 2001, c. 28, s. 43
  • 2002, c. 19, ss. 10, 23, c. 22, ss. 352, 424
  • 2005, c. 38, ss. 142, 145
  • 2011, c. 24, s. 132

Marginal note:Regulations

 The Governor in Council may, on the recommendation of the Minister and the Minister of Public Safety and Emergency Preparedness, make regulations prescribing the circumstances under which and the extent to which goods may be manipulated, unpacked, packed, altered or combined with other goods while in a bonded warehouse.

  • 1997, c. 36, s. 100
  • 2005, c. 38, ss. 142, 145

Canadian Goods Abroad

Marginal note:Relief for Canadian goods abroad

  •  (1) Subject to section 104, if an application is made in accordance with section 102, relief shall be granted in accordance with section 105 from payment of the portion of the duties that, but for this section, would be payable in respect of goods returned to Canada within one year or such other time as may be prescribed after their exportation in the prescribed manner if

    • (a) the goods were repaired outside Canada after being exported for the declared purpose of being repaired;

    • (b) equipment was added to the goods outside Canada; or

    • (c) the goods were the product of Canada and work was done outside Canada on the goods.

  • Marginal note:Emergency repairs

    (2) Subject to section 104, if an application is made in accordance with section 102, relief shall be granted from the payment of the whole of the duties that, but for this section, would be payable in respect of aircraft, vehicles or vessels returned to Canada after their exportation if

    • (a) the aircraft, vehicles or vessels were repaired outside Canada as a result of an unforeseen contingency that occurred outside Canada; and

    • (b) the repairs were necessary to ensure the safe return to Canada of the aircraft, vehicles or vessels.

  • Marginal note:Regulations

    (3) The Governor in Council may make regulations

    • (a) on the recommendation of the Minister, prescribing the manner for determining what goods are considered to be a product of Canada for the purposes of subsection (1); and

    • (b) on the recommendation of the Minister of Public Safety and Emergency Preparedness, defining the words aircraft, vehicles and vessels for the purposes of subsection (2).

  • 1997, c. 36, s. 101
  • 2005, c. 38, ss. 142, 145

Marginal note:Application

 An application for relief under section 101 must be

  • (a) accompanied by evidence satisfactory to the Minister of Public Safety and Emergency Preparedness that the goods were exported and

    • (i) in respect of goods referred to in paragraph 101(1)(a), repairs could not have been made in Canada at the place the goods were located before their exportation or within a reasonable distance of that place,

    • (ii) in respect of equipment referred to in paragraph 101(1)(b), the equipment added could not practicably have been added in Canada, or

    • (iii) in respect of goods referred to in paragraph 101(1)(c), it would not have been practicable to do the work in Canada; or

  • (b) if the application is made under subsection 101(2), made in the prescribed form and manner, with the prescribed information, at the time of the return to Canada of the goods in respect of which the application is made.

  • 1997, c. 36, s. 102
  • 2005, c. 38, ss. 89(F), 142, 145.

Marginal note:Release of returned goods

 Subject to section 104, goods in respect of which relief is granted under section 101 before they are released may be released without any payment of duties.

Marginal note:Conditions for relief

 Relief shall be granted under section 101 in respect of goods that were returned to Canada after being exported only if

  • (a) relief, conditional on the exportation of the goods, was not granted in respect of any duties paid or payable; or

  • (b) if an application for relief under subsection 101(1) is made, the portion of the duties, calculated in accordance with paragraph 105(1)(b), has been paid.

Marginal note:Value for duty of work abroad

  •  (1) For the purposes of subsection 101(1), the portion of the duties in respect of which relief is granted under that subsection shall be

    • (a) the amount that, but for that subsection, would be payable in respect of the returned goods

    less

    • (b) the amount obtained by applying the rate that would, but for that subsection, be applied to determine the duties under paragraph (a) to the value of

      • (i) in respect of goods referred to in paragraph 101(1)(a), the repairs made outside Canada,

      • (ii) in respect of equipment referred to in paragraph 101(1)(b), the equipment added and related work done outside Canada, or

      • (iii) in respect of goods referred to in paragraph 101(1)(c), the work done outside Canada.

  • Marginal note:Regulations

    (2) For the purposes of subsection (1), the Governor in Council may, on the recommendation of the Minister of Public Safety and Emergency Preparedness, make regulations prescribing the method of determining the value of repairs made, equipment added and work done outside Canada.

  • 1997, c. 36, s. 105
  • 2005, c. 38, ss. 142, 145

Marginal note:Temporary relief of certain duties and taxes

  •  (1) If an application for relief is made in the prescribed circumstances by a person of a prescribed class and in the prescribed form and manner, accompanied by prescribed documents and by security of a prescribed nature in an amount fixed by the Minister of Public Safety and Emergency Preparedness, relief shall be granted from the payment of the whole or the prescribed portion, as the case may be, of any duty imposed under sections 21.1 to 21.3 or the Excise Act, 2001 or of any excise taxes that, but for this section, would be payable in respect of prescribed goods that are imported and subsequently exported after being used in Canada only for a prescribed purpose.

  • Marginal note:Release of goods

    (2) If relief is granted under subsection (1), the goods may be released without the payment of the relieved duty, duties or taxes.

  • Marginal note:Conditions

    (3) Relief under subsection (1) is subject to prescribed conditions and to the importer of the goods establishing to the satisfaction of the Minister of Public Safety and Emergency Preparedness that the goods are exported within one year after they are released or, if a period is prescribed, within the prescribed period after they are released.

  • Marginal note:Extension of period

    (4) The Minister of Public Safety and Emergency Preparedness may, in respect of prescribed goods, extend the period of exportation by not more than six months if that Minister is satisfied that it is not practical or possible to export the goods within the period.

  • Marginal note:Waiver

    (5) The Minister of Public Safety and Emergency Preparedness may waive the requirement under subsection (1) to provide security.

  • 1997, c. 36, s. 106
  • 2002, c. 22, s. 353
  • 2005, c. 38, ss. 142, 145

General

Marginal note:Effect of relief

  •  (1) Subject to sections 95, 98.1 and 98.2, if relief is granted under section 89, 92, 101 or 106 from the payment of the whole or a portion of duties,

    • (a) no duties are payable, if the relief was from the payment of the whole; and

    • (b) the portion is not payable, if the relief was only from the payment of the portion.

  • Marginal note:Effect of relief on duty paid value

    (2) Notwithstanding subsection (1), the amount of the customs duties payable on goods shall, for the purposes of determining the duty paid value of the goods, be determined as if relief had not been granted under section 89, 92, 101 or 106.

  • Marginal note:Effect of relief on value under Excise Tax Act

    (3) Notwithstanding subsection (1), the amount of customs duties payable on goods shall, for the purposes of determining the value of the goods under section 215 of the Excise Tax Act, be determined as if relief had been granted under section 101 but had not been granted under section 89, 92 or 106.

Marginal note:Refund or cancellation of security

 The Minister of Public Safety and Emergency Preparedness shall refund or cancel any security given

  • (a) in respect of the issuance of a licence under section 91, when the licence is cancelled;

  • (b) in respect of goods that would have been classified under tariff item No. 9993.00.00 if they had met the conditions set out in that tariff item, when the goods are accounted for under section 32 of the Customs Act and all duties payable in respect of the goods are paid;

  • (c) in respect of goods of tariff item No. 9993.00.00, when the goods are destroyed in the manner that the Minister of Public Safety and Emergency Preparedness directs or the destruction is certified by a customs officer or another person designated by the President of the Canada Border Services Agency;

  • (d) in respect of goods of any tariff item in respect of which security is required, other than goods of tariff item No. 9993.00.00, when the goods are exported in the manner and within the period referred to in the tariff item in respect of which security was given or within the period established or extended by the regulations;

  • (e) in respect of goods of tariff item No. 9993.00.00, when the goods are exported, destroyed, consumed or expended in the manner and within the period referred to in that tariff item or within the period established or extended by the regulations; and

  • (f) in respect of an application for relief under section 106, if

    • (i) the goods in respect of which the application was made are not exported within the period referred to in subsection 106(3) or (4), as the case may be, the goods are accounted for under section 32 of the Customs Act, and all duties and taxes payable in respect of the goods are paid,

    • (ii) the goods in respect of which the application was made are destroyed in the manner that the Minister of Public Safety and Emergency Preparedness directs, or

    • (iii) the goods in respect of which the application was made are exported within the period referred to in subsection 106(3) or (4), as the case may be.

  • 1997, c. 36, s. 108
  • 2005, c. 38, ss. 88, 142, 145
 
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