Customs Drawback on Toy Skins Regulations (SOR/80-337)

5 (1) The rate of drawback referred to in section 3 that may be granted under these Regulations in respect of a drawback period of a manufacturer shall be,

• (a) where a manufacturer’s total cost of Canadian fabrics purchased during the period for the manufacture of stuffed toys is more than 55 per cent of the duty paid value of imported toy skins used by that manufacturer during the period, 80 per cent of the customs duties plus an amount equal to 2 per cent of those customs duties for each percentage point or portion thereof by which the manufacturer’s total cost of Canadian fabrics purchased during the period exceeds 55 per cent of the duty paid value of imported toy skins used by that manufacturer during the period;

• (b) where a manufacturer’s total cost of Canadian fabrics purchased during the period for the manufacture of stuffed toys is not more than 55 per cent and not less than 45 per cent of the duty paid value of imported toy skins used by that manufacturer during the period, 80 per cent of the customs duties; or

• (c) where the manufacturer’s total cost of Canadian fabrics purchased during the period for the manufacture of stuffed toys is less than 45 per cent of the duty paid value of imported toy skins used by the manufacturer during the period, 80 per cent of the customs duties minus an amount equal to 2 per cent of the customs duties for each percentage point or portion thereof by which the manufacturer’s total cost of Canadian fabrics purchased during the period is less than 45 per cent of the duty paid value of imported toy skins used by that manufacturer during the period.

(2) Notwithstanding subsection (1), the rate of drawback referred to therein shall not exceed 100 per cent of the customs duties.