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Customs Tariff (S.C. 1997, c. 36)

Full Document:  

Act current to 2021-12-23 and last amended on 2021-06-21. Previous Versions

PART 3Duties Relief (continued)

DIVISION 3Obsolete or Surplus Goods

Marginal note:Definition of obsolete or surplus goods

 In this Division, obsolete or surplus goods means goods that are

  • (a) found to be obsolete or surplus

    • (i) in the case of imported goods, by their importer or owner, or

    • (ii) in any other case, by their manufacturer, producer or owner;

  • (b) not used in Canada;

  • (c) destroyed in such manner as the Minister of Public Safety and Emergency Preparedness may direct; and

  • (d) not damaged before their destruction.

  • 1997, c. 36, s. 109
  • 2005, c. 38, ss. 142, 145

Marginal note:Relief for obsolete or surplus goods

 If an application is made in accordance with section 111, a refund shall be granted of

  • (a) all duties, other than the goods and services tax, paid in respect of imported obsolete or surplus goods;

  • (b) all duties, other than taxes imposed under the Excise Tax Act, paid in respect of imported goods processed in Canada, if the goods that result from the processing become obsolete or surplus goods; and

  • (c) all duties, other than taxes imposed under the Excise Tax Act, paid in respect of imported goods, other than fuel or plant equipment, that are directly consumed or expended in the processing in Canada of goods that become obsolete or surplus goods.

Marginal note:Application

 An application under section 110 must be

  • (a) made in the prescribed form and manner, with the prescribed information,

    • (i) if the obsolete or surplus goods were imported, by the importer or owner of those goods, or

    • (ii) in any other case, by the manufacturer, producer or owner of the obsolete or surplus goods;

  • (b) accompanied by a waiver referred to in section 119, if applicable, and by the prescribed documents; and

  • (c) made within five years, or such other time as may be prescribed, after the goods in respect of which it is made are released.

  • 1997, c. 36, s. 111
  • 2005, c. 38, ss. 89(F), 145

Marginal note:Regulations

 The Governor in Council may, on the recommendation of the Minister of Public Safety and Emergency Preparedness, make regulations prescribing documents that must accompany an application under section 110 and the period within which such an application must be made.

  • 1997, c. 36, s. 112
  • 2005, c. 38, ss. 142, 145

DIVISION 4Additional Relief

Marginal note:Refund or drawback

  •  (1) Subject to subsection (2), sections 96, 98.1 and 98.2 and any regulations made under subsection (4), a refund or drawback shall be granted of all or a portion of duties if

    • (a) relief or a refund of all or a portion of the duties could have been, but was not, granted under section 89 or 101;

    • (b) all or a portion of the duties was paid; and

    • (c) an application is made in accordance with subsection (3) and section 119.

  • Marginal note:No refund or drawback in respect of tobacco products

    (2) No refund or drawback of the duties imposed on tobacco products under the Excise Act, 2001 shall be granted under subsection (1), except if a refund of the whole or the portion of the duties is required to be granted under Division 3.

  • Marginal note:Application

    (3) For the purposes of subsection (1), an application must

    • (a) be supported by such evidence as the Minister of Public Safety and Emergency Preparedness may require;

    • (b) be made by a prescribed person or by a person belonging to a prescribed class of persons;

    • (c) be made in the prescribed form and manner, with the prescribed information, within four years, or within such other time as may be prescribed, after the goods in respect of which it is made are released; and

    • (d) if the goods have not been exported or deemed exported for the purposes of relief under section 89, disclose the number of the certificate issued under section 90.

  • Marginal note:Regulations

    (4) For the purposes of this section, the Governor in Council may, on the recommendation of the Minister of Public Safety and Emergency Preparedness, make regulations prescribing

    • (a) the circumstances in which, and the classes of goods in respect of which, a refund or drawback 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 levied under the Excise Act, 2001 may not be granted under subsection (1);

    • (b) the portion of duties paid that may be granted as a refund or drawback under subsection (1);

    • (c) the persons or classes of persons who may make an application for a refund or drawback under subsection (1);

    • (d) the uses to which goods may be put or operations that goods may undergo after which the goods will be considered to be in the same condition;

    • (e) goods that are considered to be of the same class;

    • (f) the time within which an application for a refund or drawback must be made;

    • (g) the circumstances in which an application for a refund or drawback may be made;

    • (h) restrictions as to the classes of goods for which a refund or drawback may be granted; and

    • (i) the circumstances in which a refund or drawback may not be granted.

  • Marginal note:Designated goods

    (5) Despite the exception in subsection 89(2), a refund or drawback of duties or taxes levied or imposed under sections 21.1 to 21.3, the Excise Act, 2001 or the Excise Tax Act shall be granted under paragraph (1)(a) on designated goods.

  • 1997, c. 36, s. 113
  • 2001, c. 28, s. 44
  • 2002, c. 19, ss. 11, 25, c. 22, s. 354
  • 2005, c. 38, ss. 89(F), 142, 145
  • 2011, c. 24, s. 133
  • 2017, c. 6, s. 104
  • 2021, c. 1, s. 44

Marginal note:Overpayment of refund or drawback

  •  (1) If a refund or drawback is granted under section 110 or 113 to a person who is not eligible for the refund or drawback or in an amount exceeding the amount for which the person is eligible, that person shall pay to Her Majesty in right of Canada, on the day that the refund or drawback is received,

    • (a) any amount for which the person is not eligible; and

    • (b) any interest granted under section 127 on the amount referred to in paragraph (a).

  • 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:Discretionary relief

  •  (1) The Governor in Council may, on the recommendation of the Minister or the Minister of Public Safety and Emergency Preparedness, by order, remit duties.

  • Marginal note:Scope of relief

    (2) A remission under subsection (1) may be conditional or unconditional, may be granted in respect of the whole or any portion of the duties and may be granted regardless of whether any liability to pay the duties has arisen.

  • Marginal note:Remission by way of refund

    (3) If duties have been paid, a remission under subsection (1) shall be made by granting a refund of the duties to be remitted.

  • 1997, c. 36, s. 115
  • 2005, c. 38, ss. 142, 145

DIVISION 5General

Marginal note:Debts due the Crown

 Relief under section 89 or 101 may be refused if, at the time the relief is authorized or required to be granted, the person to whom the relief is to be granted is indebted to

  • (a) Her Majesty in right of Canada; or

  • (b) Her Majesty in right of a province in respect of tax payable to the province, if there is an agreement between the Government of Canada and the government of the province authorizing Canada to collect the tax on behalf of the province.

Marginal note:Sum in lieu of drawback, refund, etc.

 If circumstances exist that render it difficult to determine the exact amount of relief under section 89, of a refund under section 110 or of a refund or drawback under section 113 or the exact amount of a general remission of duties under an order made under section 115 of this Act or section 23 of the Financial Administration Act, the Minister of Public Safety and Emergency Preparedness may, with the consent of the applicant for the relief, refund, drawback or remission, grant to the applicant a sum, in an amount determined by that Minister, in lieu of the relief, refund, drawback or remission.

  • 1997, c. 36, s. 117
  • 2005, c. 38, ss. 142, 145

Marginal note:Failure to comply with conditions

  •  (1) If relief from, or remission of, duties is granted under this Act, other than under section 92, or if remission of duties is granted under section 23 of the Financial Administration Act and a condition to which the relief or remission is subject is not complied with, the person who did not comply with the condition shall, within 90 days or such other period as may be prescribed after the day of the failure to comply,

    • (a) report the failure to comply to an officer at a customs office; and

    • (b) pay to Her Majesty in right of Canada an amount equal to the amount of the duties in respect of which the relief or remission was granted, unless that person can provide evidence satisfactory to the Minister of Public Safety and Emergency Preparedness that

      • (i) at the time of the failure to comply with the condition, a refund or drawback would otherwise have been granted if duties had been paid, or

      • (ii) the goods in respect of which the relief or remission was granted qualify in some other manner for relief or remission under this Act or the Financial Administration Act.

  • Marginal note:Diversions

    (2) If a drawback has been granted of duties paid in respect of imported goods by reason of a deemed exportation under subsection 89(3), the goods are not subsequently exported and the goods are diverted to a use other than a use set out in that subsection, the person who diverted the goods shall, within 90 days after the day of the diversion,

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

    • (b) pay the amount of the drawback and the amount of any interest granted on the drawback under section 127.

  • Marginal note:Debt to Her Majesty

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

  • Marginal note:Regulations

    (4) The Governor in Council may make regulations

    • (a) on the recommendation of the Minister of Public Safety and Emergency Preparedness, prescribing time limits for the application of subsection (1) and the goods or classes of goods in respect of which, or the circumstances in which, those limits apply; and

    • (b) on the recommendation of the Minister, prescribing the circumstances in which certain goods are exempted from the application of subsection (1) and the goods or classes of goods in respect of which, and the period for which and the conditions under which, those exemptions apply.

  • 1997, c. 36, s. 118
  • 2005, c. 38, ss. 142, 145

Marginal note:Waivers

 An application under section 110 or 113 must be accompanied by a waiver, in the prescribed form, from every other person eligible to claim a drawback, refund or remission of the duties in respect of which the application is made, waiving that person’s right to apply for the drawback, refund or remission.

  • 1997, c. 36, s. 119
  • 2005, c. 38, ss. 89(F), 145

Marginal note:Definition of value

 For the purposes of sections 121 and 122, value means, in respect of a by-product, goods or merchantable scrap or waste,

  • (a) if the processor has sold the by-product, goods or merchantable scrap or waste in an arms-length transaction, the price at which the processor sold the by-product, goods or merchantable scrap or waste; and

  • (b) in any other case, the price at which the processor would ordinarily have sold the by-product, goods or merchantable scrap or waste in an arms-length transaction,

    • (i) in the case of an application for a drawback or refund, at the time the application is made, or

    • (ii) if relief from the payment of duties has been granted under section 89, at the time the goods are exported.

Marginal note:Relief reduced by value of by-product

  •  (1) If relief from payment of duties is granted in respect of goods under section 89 and the goods enter into a process that produces a by-product in respect of which relief could not have been granted, the processor shall, within 90 days after production of the by-product, pay to Her Majesty in right of Canada an amount that bears the same proportion to the amount of the relief as the value of the by-product bears to the total value of the products produced from the processing of the goods.

  • 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:Amount of drawback or refund not paid reduced by value of by-product

    (3) If goods in respect of which an application was made under section 110 or 113 enter into a process that produces a by-product in respect of which a refund or drawback cannot be granted and the drawback or refund has not yet been paid, the amount of the drawback or refund shall be reduced by the same proportion that the value of the by-product bears to the total value of the products produced from the processing of the goods.

Marginal note:Relief reduced by value of merchantable scrap or waste

  •  (1) If goods in respect of which relief is granted under section 89 enter into a process that produces merchantable scrap or waste in respect of which the relief could not have been granted, the processor shall, within 90 days after the production of the scrap or waste, pay to Her Majesty in right of Canada an amount equal to the product obtained by multiplying the value of the merchantable scrap or waste by the rate of customs duty that applies, at the time that the scrap or waste was produced, to merchantable scrap or waste of the same kind.

  • 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:Drawback or refund reduced by value of merchantable scrap or waste

    (3) If goods in respect of which an application was made under section 110 or 113 enter into a process that produces merchantable scrap or waste in respect of which a refund or drawback cannot be granted and the drawback or refund has not yet been paid, the amount of the drawback or refund shall be reduced by an amount equal to the product obtained by multiplying the value of the merchantable scrap or waste by the rate of customs duty that applies, at the time the merchantable scrap or waste results from the process, to merchantable scrap or waste of the same kind.

 
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