SOR/96-4419961
1
20207
16
CUSTOMS TARIFFDuties Relief RegulationsRegulations Respecting Relief from the Payment of DutiesP.C.1995-2252  199512
28
His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 80(3)*, paragraphs 83.02(1)(a)** and 83.05(a)*** and section 95**** of the Customs Tariff*****, is pleased hereby to repeal the Duties Relief Regulations, made by Order in Council P.C. 1987-1570 of July 30, 1987******, and to make the annexed Regulations respecting relief from the payment of duties, in substitution therefor, effective on the day on which section 55 of An Act to amend the Customs Act and the Customs Tariff and to make related and consequential amendments to other Acts, being chapter 41 of the Statutes of Canada, 1995, comes into force.S.C. 1995, c. 41, s. 47S.C. 1995, c. 41, s. 48(1)S.C. 1995, c. 41, s. 49S.C. 1995, c. 41, s. 55R.S., c. 41 (3rd Supp.)SOR/87-475, 1987 Canada Gazette Part II, p. 3273Short Title
These Regulations may be cited as the Duties Relief Regulations.
Interpretation
In these Regulations,Act means the Customs Tariff; (Loi)beer means beer or malt liquor as defined in section 4 of the Excise Act; (bière)Ministermeans the Minister of National Revenue; (ministre)textile fabric means textile fibre, glass fibre, textile fabric, glass fabric or other textile product that is of a stage between textile fibre and fabric that is composed exclusively of fibres that fall within a class set out in Schedule II. (tissus textiles)SOR/98-55, s. 1; SOR/2003-236, s. 1
Classes of Persons Who May Apply for Relief
An application for relief described in subsection 89(1) of the Act may be made by any person who is the importer or exporter of the imported or exported goods, or is the processor, owner or producer of those goods between the time of their direct shipment to Canada and their export or deemed export.SOR/98-55, s. 2
No Relief to Be Granted
Relief under subsection 89(1) of the Act may not be granted in respect of the imported goods described in that subsection where the exported goods described in that subsection are damaged before being exported.SOR/98-55, s. 2
For the purposes of paragraphs 89(1)(c) and (e) of the Act, relief may not be granted in respect of the goods described in Schedule I.SOR/98-55, s. 2
For the purposes of paragraphs 89(1)(d) and (e) of the Act, relief may not be granted in respect of the following goods:spirits that are imported for use in the processing in Canada of spirits or that are directly consumed or expended in the processing in Canada of spirits;goods that are imported for processing in Canada or are directly consumed or expended in the processing in Canada of other goods, where they are processed or directly consumed or expended after the same quantity of domestic or imported goods of the same class is processed or directly consumed or expended; andimported goods, other than textile fabric, where the imported goods are processed or directly consumed or expended in a plant in Canada other than the plant in which the same quantity of domestic or imported goods of the same class is processed or directly consumed or expended.SOR/98-55, s. 2; SOR/2003-236, s. 2
Time Limits for Exportation
Subject to subsection (2), the following goods must be exported within four years after the date on which the imported goods were released:goods described in paragraph 89(1)(a) or (b) of the Act on which duties are relieved; andgoods, in the processing of which in Canada, goods described in paragraph 89(1)(c) of the Act on which duties are relieved are directly consumed or expended.Spirits, wine or beer that are imported goods described in paragraph 89(1)(b) of the Act on which duties are relieved must be exported within five years after the date on which they were released.For the purposes of paragraphs 89(1)(d) and (e) of the Act, the exported goods must be exported within two years after the date on which the imported goods on which duties are relieved were released.SOR/98-55, s. 2; SOR/2003-236, s. 3
Portion of Duties that May Be Relieved
Where the amount of duties otherwise payable in respect of imported textile fabric that is considered under section 10 to be of the same class as domestic textile fabric exceeds the amount of duties that would have been payable had the domestic textile fabric been imported, the portion of the duties so payable that may be relieved is the proportion that the amount that would have been so payable is of the amount that was payable.
Same Condition Processes
For the purposes of paragraph 89(1)(a) of the Act, goods are considered to be in the same condition in which they were imported after theyundergo any of the processes referred to in subparagraph (6)(b) of Article 2.5 of the Canada–United States–Mexico Agreement, if those processes do not materially alter the characteristics of the goods;are used fordisplay or demonstration, orthe development or production, other than as plant equipment, of goods to be exported; orin the case of reusable containers, are used in the international transportation of goods.SOR/98-55, s. 2SOR/2020-64, s. 3
Goods of the Same Class
Subject to subsection (2), for the purposes of paragraphs 89(1)(d) and (e) of the Act, domestic or imported goods shall be considered to be of the same class if the goods are so similar that they may beused interchangeably in the processing of goods in Canada; ordirectly consumed or expended interchangeably in the processing in Canada of goods.For the purposes of paragraphs 89(1)(d) and (e) of the Act, domestic and imported textile fabrics composed of different fibres shall be considered to be of the same class if the domestic and imported textile fabrics are composed offibres that fall within one class set out in Schedule II; orfibres that do not fall within one class set out in Schedule II, ifany particular class set out in that Schedule within which fall fibres of which the domestic textile fabric is composedis a class within which fall fibres of which the imported textile fabric is composed, orrepresents less than five per cent of the weight of the domestic textile fabric, andthe difference between the following proportions does not exceed 33 percentage points:the proportion, expressed as a percentage, that the aggregate weight of the fibres of which the domestic textile fabric is composed that fall within the particular class is of the weight of the domestic textile fabric, andthe proportion, expressed as a percentage, that the aggregate weight of the fibres of which the imported textile fabric is composed that fall within that particular class is of the weight of the imported textile fabric.SOR/98-55, s. 2
Prescribed Classes of Ships, Aircraft and Telegraph Cable Ships
For the purposes of paragraph 89(3)(b) of the Act, the ships and aircraft described in Schedule III are prescribed as classes of ships and aircraft.SOR/98-55, s. 2
For the purposes of paragraph 89(3)(c) of the Act, the prescribed class of telegraph cable ships includes only those ships that areregistered in any country;used exclusively for the laying and repairing of oceanic telegraph cables outside Canada; andproceeding on an ocean voyage outside Canada.SOR/98-55, s. 2
Prescribed Use
For the purposes of paragraph 89(3)(g) of the Act, goods are used or destined for use where theyare purchased by the government of a country that is party to the Canada–United States–Mexico Agreement or its authorized agent, by a department of the Government of Canada, or by a Crown corporation named in Schedule II or Schedule III to the Financial Administration Act acting on behalf of the Government of Canada;are for use solely and exclusively in conjunction witha project undertaken jointly by the Government of Canada and the government of a country that is party to the Canada–United States–Mexico Agreement, oran undertaking, located in Canada, of the government of a country that is party to the Canada–United States–Mexico Agreement; andare or will become the property of the government of a country that is party to the Canada–United States–Mexico Agreement.SOR/98-55, s. 2SOR/2020-64, s. 4
Amendment of Certificate
The Minister may amend a certificate issued under subsection 90(1) of the Act where any of the information set out in the application for relief has changed.SOR/98-55, s. 2
Cancellation or Suspension of Certificate
The Minister may cancel a certificate issued under subsection 90(1) of the Act where the person to whom the certificate was issuedrequests the Minister in writing to cancel the certificate;is bankrupt;is the subject of a receivership in respect of the person’s debts;ceases to operate in Canada; orfails to make representations in accordance with subsection 17(2).SOR/98-55, s. 2
The Minister may suspend or cancel a certificate issued under subsection 90(1) of the Act where the person to whom the certificate was issuedfails to comply with any Act of Parliament, or any regulation made pursuant to an Act of Parliament that prohibits, controls or regulates the importation or exportation of goods; orhas, in the use of the certificate, acted dishonestly in business dealings with Her Majesty or servants of Her Majesty.SOR/98-55, s. 2
The Minister shall, immediately after suspending a certificate, give the certificate holder notice confirming the suspension and providing all relevant information concerning the grounds on which the Minister suspended the certificate.The certificate holder may, within 30 days after the day on which the certificate is suspended, make representations to the Minister regarding why the certificate should be reinstated.The Minister shall, before cancelling a certificate, except in the case of a cancellation under section 15 or a cancellation subsequent to a suspension under section 16, give the certificate holder30 days notice of the proposed cancellation; andall relevant information concerning the grounds on which the Minister proposes to cancel the certificate.The certificate holder may, within 15 days after the day on which the notice referred to in subsection (3) is given, make representations to the Minister regarding why the certificate should not be cancelled.
Reinstatement of Certificate
The Minister may reinstate a certificate suspended under section 16 where the cause for the suspension no longer exists.
Manner of Reporting Exports to a Country that is Party to the Canada–United States–Mexico AgreementSOR/2020-64, s. 5
For the purposes of paragraph 95(1)(a) of the Act, the person who exports the goods shall report to an officer at a customs office by providing the evidence described in section 93 of the Act.For the purposes of paragraph 98(1)(a) of the Act, the person who exports the goods shall report to an officer at a customs office by providing a written declaration of the amount of duties that was relieved.SOR/98-55, s. 2
Satisfactory Proof of Exportation
For the purposes of section 101 of the Act, an application shall be accompanied by proof of export in the form ofa customs document presented to an officer of the customs administration of the country where the repair, addition of equipment or work was performed respecting the importation of the goods into that country;a document of a transportation company respecting the exportation of the goods;a written statement made by the exporter in the country where the work was performed stating that the goods exported to Canada are the goods that were imported into that country for repair, the addition of equipment or work; orother documentation that establishes that the goods were exported.SOR/98-55, s. 2
(Section 5)Goods Not Eligible for ReliefFuelPlant equipment(Sections 2 and 10)Classes of FibresNatural textile fibres such as silk, wool, cotton, flax and sisalArtificial fibres that are viscose or acetatesSynthetic fibres that are nylons or other polyamides, polyesters, acrylics, polyethylenes, polypropylenes or elastomersGlass(Section 11)Classes of Ships and AircraftOcean-going ships operating or being repaired or reconstructed to operate exclusively in international tradeForeign warships, within the meaning of the Ships’ Stores RegulationsTelegraph cable ships, within the meaning of the Ships’ Stores RegulationsShips registered in a country other than Canada that are used exclusively for pleasure purposesAircraft operating exclusively in international flightsInternational aircraft, within the meaning of the Ships’ Stores Regulations