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New Motor Vehicles Exported Drawback Regulations (SOR/82-710)

Regulations are current to 2022-06-20

New Motor Vehicles Exported Drawback Regulations

SOR/82-710

CUSTOMS ACT

EXCISE TAX ACT

Registration 1982-07-16

Regulations Respecting Drawback of Customs Duty, Sales and Excise Taxes Paid in Respect of New Motor Vehicles Purchased and Used Temporarily in Canada Prior to Exportation

P.C. 1982-2137 1982-07-15

His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to sections 275 and 276 of the Customs Act and subsection 44(8) of the Excise Tax Act, is pleased hereby to revoke the Motor Vehicles Exported Drawback Regulations made by Order in Council P.C. 1979-1937 of 19th July, 1979Footnote *, and to make the annexed Regulations respecting drawback of customs duty, sales and excise taxed paid in respect of new motor vehicles purchased and used temporarily in Canada prior to exportation, in substitution thereof.

Short Title

 These Regulations may be cited as the New Motor Vehicles Exported Drawback Regulations.

Interpretation

 In these Regulations,

Minister

Minister means the Minister of National Revenue; (Ministre)

motor vehicle

motor vehicle includes an automobile, motor cycle, motor bicycle, light truck, motor bus or motor home purchased for personal transportation, but does not include any truck that has a gross vehicle weight in excess of 4.5359 t (10,000 pounds) or any motor vehicle that is to be used in commercial operations of any kind; (véhicule automobile)

new motor vehicle

new motor vehicle means a motor vehicle that

  • (a) was new immediately prior to its use in Canada, and

  • (b) prior to its exportation from Canada, was used only for a period not greater than the period referred to in section 4; (véhicule automobile neuf)

non-resident

non-resident means a person who makes his home and is ordinarily present in a place outside Canada. (non-résident)

Drawback

 Subject to these Regulations, on the exportation from Canada of a new motor vehicle, the Minister shall authorize the payment of a drawback of the customs duty, sales and excise taxes paid on or in respect of

  • (a) the motor vehicle, whether imported into Canada or manufactured in Canada;

  • (b) imported parts and materials used in, wrought into or attached to the motor vehicle, where the motor vehicle was manufactured or produced in Canada:

  • (c) imported materials, other than fuel and plant equipment, directly consumed in the manufacture or production of the motor vehicle; and

  • (d) imported parts and materials, in a quantity sufficient to manufacture or produce the motor vehicle, where

    • (i) domestic parts and materials of the same class as the imported parts and materials and so similar that they could have been used interchangeably in the manufacture or production of the motor vehicle were used in, wrought into or attached to the motor vehicle, or

    • (ii) domestic materials, other than fuel and plant equipment, of the same class as the imported materials and so similar that they could have been used interchangeably in the manufacture or production of the motor vehicle were directly consumed in the manufacture or production of the motor vehicle, and

    the imported parts and materials were used in the plant that manufactured or produced the motor vehicle, during the 12 month period immediately preceding the manufacture or production of the motor vehicle.

Circumstances and Conditions

  •  (1) For the purposes of subsection (2), a motor vehicle that was new immediately prior to its use in Canada may be used by the purchaser thereof before its exportation from Canada for a period not exceeding

    • (a) 30 days from the date of delivery thereof to the purchaser, where the purchaser is a resident of Canada; or

    • (b) 12 months from the date of delivery thereof to the purchaser, where the purchaser is a non-resident.

  • (2) No drawback shall be granted pursuant of section 3 in respect of motor vehicle unless the motor vehicle is exported from Canada within the period for use of that motor vehicle set out in subsection (1) and no drawback shall be granted

    • (a) if the motor vehicle was

      • (i) used in Canada prior to its exportation by anyone other than the purchaser thereof,

      • (ii) sold to anyone in Canada, or otherwise disposed of, by the purchaser thereof prior to its exportation,

      • (iii) used in Canada prior to its exportation for the transportation of persons or goods for hire or reward or the transportation of goods for sale, or

      • (iv) used in Canada prior to its exportation to solicit sales or subscriptions on behalf of a Canadian company; or

    • (b) if the motor vehicle was re-imported into Canada after its exportation otherwise than in accordance with the Customs Act or the Customs Tariff or any regulations made thereunder.

Entitlement to Claim

  •  (1) A claim for a drawback pursuant to these Regulations shall be made in duplicate, in such form as the Minister may prescribe, by

    • (a) in the case of an imported motor vehicle, the importer or the vendor thereof; and

    • (b) in the case of a motor vehicle manufacture in Canada, the manufacturer of the vehicle as exported.

  • (2) A claim for drawback under section 3 shall be filed at a customs office subsequent to the exportation of the motor vehicle in respect of which the drawback is claimed and shall be accompanied by

    • (a) a waiver of rights in respect of any duties and taxes from any person who, pursuant to these Regulations or under or pursuant to the Customs Act, the Excise Tax Act or the Financial Administration Act, would be entitled to claim a drawback, refund or remission in respect of those duties and taxes; and

    • (b) subject to subsection (3), the following documentary evidence in respect of the claim:

      • (i) a copy of the offer to purchase the motor vehicle in respect of which the drawback is claimed,

      • (ii) copies of any invoices covering the sale or transfer of the motor vehicle in respect of which the drawback is claimed,

      • (iii) any certificate of importation, sale or transfer, in duplicate,

      • (iv) any certificate of sale for exportation, in duplicate,

      • (v) a customs certified copy of the Identification of Goods Exported or Destroyed form covering exportation of the motor vehicle,

      • (vi) in the case of a motor vehicle exported to a country on the North American continent, a copy of the foreign consumption entry and a copy of the foreign vehicle registration obtained in the country to which the motor vehicle was exported, and

      • (vii) in the case of a motor vehicle that was used in Canada in accordance with paragraph 4(1)(b), a copy of a permit issued by the Department of Employment and Immigration establishing the non-resident status of the purchaser.

  • (3) Where any document referred to in paragraph (2)(b) is not available, a claim for drawback pursuant to these Regulations may be accompanied by information equivalent to the information that would have been shown on the document if it were available.

  • SOR/85-857, s. 1
  •  (1) No payment shall be made in respect of any claim for drawback unless the customs duty and sales and excise taxed on the goods in respect of which the claim is made were paid within the four year period immediately preceding the date on which the claim for a drawback was filed.

  • (2) Subsection (1) applies to all customs duty and sales and excise taxes paid on or after April 1, 1981.

  • SOR/85-857, s. 2

Reduction in Respect of Any By-product, Scrap or Waste

 Where any imported parts and materials enter a process of manufacture that results in the production of a by-product, the drawback payable in respect of those parts and materials shall be reduced by the same proportion that the value of the by-product bears to the total value of all production from the parts and materials.

  •  (1) Where any imported parts and materials enter a process of manufacture that results in the production of merchantable scrap or waste, the drawback payable in respect of those parts and materials shall be reduced by a sum to be arrived at by applying to the Canadian sales value of the merchantable scrap or waste the prevailing rate of customs duty on merchantable scrap or waste of the same kind when imported as such.

  • (2) Notwithstanding subsection (1), no reduction referred to therein shall be calculated on a higher rate of customs duty than was paid on the imported parts and materials from which the scrap or waste resulted.

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