Customs Tariff (S.C. 1997, c. 36)

Marginal note:Maximum drawback

96 Subject to subsection 95(6), a drawback, granted under section 113, of customs duties paid in respect of imported goods that are or were exported to the United States or Mexico, may not exceed the lesser of

• (a) the amount of customs duties paid or owed in respect of the imported goods at the time of importation, and

• (b) the amount of customs duties paid to the country that is a party to the Canada–United States–Mexico Agreement to which the imported goods were subsequently exported.

Marginal note:No relief or drawback of SIMA duties

97 Subject to subsection 95(6), relief may not be granted under section 89 or 92 and a drawback may not be granted under section 113 of duties paid under the Special Import Measures Act on imported goods that are or were exported to the United States or Mexico.

Marginal note:Exports to United States or Mexico

• 98 (1) Subject to subsection 95(6), if relief or a drawback of duties levied under the Special Import Measures Act has been granted in respect of imported goods and the goods are or were exported to the United States or Mexico and the relief or drawback could not be granted because of section 97,

  • (a) the person who exported the goods shall, within 60 days after exporting the goods, report the exportation in the prescribed manner to an officer at a customs office and pay the amount of the duties levied under that Act that were relieved or on which a drawback was granted; and

  • (b) notwithstanding any other provision of this Part, any person who exported the goods or who was granted the relief or drawback is, from the time of exporting the goods, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount of the duties levied under that Act that were relieved or on which a drawback was granted.

• Marginal note:Debt to Her Majesty

  (2) An amount referred to in subsection (1), while it remains unpaid, is deemed to be a debt owing to Her Majesty in right of Canada under the Customs Act.

Marginal note:Repayment of relief — EU

• 98.1 (1) If relief is granted under section 89 in respect of goods used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported, on or after the third anniversary of the day on which section 49.8 comes into force, to an EU country or other CETA beneficiary and that benefit, when imported into that country, from a preferential tariff under the Canada–European Union Comprehensive Economic Trade Agreement,

  • (a) the person who exported the other goods shall, within 60 days after exporting them, report their exportation in the prescribed manner to an officer at a customs office and pay an amount equal to the portion of the duties relieved under section 89 that are customs duties; and

  • (b) subject to subsection (4) but despite any other provision of this Part, the person and any other person who was granted that relief are, from the time the other goods are exported, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount referred to in paragraph (a).

• Marginal note:Debt to Her Majesty

  (2) While it remains unpaid, the amount referred to in subsection (1) is a debt owing to Her Majesty in right of Canada under the Customs Act.

• Marginal note:No refund or drawback

  (3) No refund or drawback may be granted under section 113 for customs duties paid in respect of goods for which relief of all or a portion of the duties could have been, but was not, granted under section 89, if

  • (a) the goods are used as materials, or identical, equivalent or similar substitutes for those goods are used as materials, in the production of other goods; and

  • (b) those other goods are exported, on or after the third anniversary of the day on which section 49.8 comes into force, to an EU country or other CETA beneficiary and benefit, when imported into that country, from a preferential tariff under the Canada–European Union Comprehensive Economic Trade Agreement.

• Marginal note:Exceptions

  (4) Subsections (1) and (3) do not apply to

  • (a) imported goods that originate in an EU country or other CETA beneficiary that are used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to an EU country or other CETA beneficiary;

  • (b) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been

    • (i) placed in a duty free shop for exportation,

    • (ii) designated as ships’ stores by regulations made under paragraph 99(g), or

    • (iii) supplied for use on board a conveyance of a class prescribed under paragraph 99(g); or

  • (c) any other imported goods or any imported goods used as materials, or any class of such goods, that may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the other parties to the Canada–European Union Comprehensive Economic and Trade Agreement.

• Marginal note:Definition of materials

  (5) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients.

Marginal note:Repayment of relief — U.K.

• 98.2 (1) If relief is granted under section 89 in respect of goods used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to a CUKTCA beneficiary and that benefit, when imported into that country, from a preferential tariff under the Canada–United Kingdom Trade Continuity Agreement,

  • (a) the person who exported the other goods shall, within 60 days after exporting them, report their exportation in the prescribed manner to an officer at a customs office and pay an amount equal to the portion of the duties relieved under section 89 that are customs duties; and

  • (b) subject to subsection (4) but despite any other provision of this Part, the person and any other person who was granted that relief are, from the time the other goods are exported, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount referred to in paragraph (a).

• Marginal note:Debt to Her Majesty

  (2) While it remains unpaid, the amount referred to in subsection (1) is a debt owing to Her Majesty in right of Canada under the Customs Act.

• Marginal note:No refund or drawback

  (3) No refund or drawback may be granted under section 113 for customs duties paid in respect of goods for which relief of all or a portion of the duties could have been, but was not, granted under section 89, if

  • (a) the goods are used as materials, or identical, equivalent or similar substitutes for those goods are used as materials, in the production of other goods; and

  • (b) those other goods are exported to a CUKTCA beneficiary and benefit, when imported into that country, from a preferential tariff under the Canada–United Kingdom Trade Continuity Agreement.

• Marginal note:Exceptions

  (4) Subsections (1) and (3) do not apply to

  • (a) imported goods that originate in a CUKTCA beneficiary that are used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to a CUKTCA beneficiary;

  • (b) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been

    • (i) placed in a duty free shop for exportation,

    • (ii) designated as ships’ stores by regulations made under paragraph 99(g), or

    • (iii) supplied for use on board a conveyance of a class prescribed under paragraph 99(g); or

  • (c) any other imported goods or any imported goods used as materials, or any class of such goods, that may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the Government of the United Kingdom.

• Marginal note:Definition of materials

  (5) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients.

Marginal note:Regulations

99 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.

Marginal note:Regulations

100 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.

Canadian Goods Abroad

Marginal note:Relief for Canadian goods abroad

• 101 (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).