Customs Tariff (S.C. 1997, c. 36)

Marginal note:Discretionary relief

• 115 (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.

DIVISION 5General

Marginal note:Debts due the Crown

116 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.

117 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.

Marginal note:Failure to comply with conditions

• 118 (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.

Marginal note:Waivers

119 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.

Marginal note:Definition of value

120 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

• 121 (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

• 122 (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.

Marginal note:Interest on overpayment in relation to a refund or drawback

• 123 (1) Any person who is liable under subsection 114(1) to pay an amount, other than an amount in respect of duty levied under the Special Import Measures Act, shall pay, in addition to the amount, interest at the specified rate for the period beginning on the first day after the refund or drawback was granted and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

• Marginal note:Interest on failure to comply or diversion

  (2) Subject to subsection (4), a person who is liable under subsection 118(1) or (2) to pay an amount, other than an amount in respect of duty levied under the Special Import Measures Act, shall pay, in addition to the amount, interest at the specified rate for the period beginning on the day that the liability was incurred and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

• Marginal note:Interest on by-products and merchantable scrap or waste

  (3) Subject to subsection (4), a person who is liable under section 121 or 122 to pay an amount, other than an amount in respect of duty levied under the Special Import Measures Act, shall pay, in addition to the amount, interest at the specified rate for the period beginning on the first day after the production of the by-product or merchantable scrap or waste and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

• Marginal note:Exception

  (4) If a person pays an amount owing under paragraph 118(1)(b) or section 121 or 122 within the 90 day period referred to in that paragraph or section, no interest on the amount is payable by the person under subsection (2) or (3).

• Marginal note:Computation of interest on certain duties

  (5) A person who is liable under paragraph 118(1)(b) or section 121 or 122 to pay an amount in respect of duty levied under the Special Import Measures Act shall pay interest at the specified rate for the period beginning on the ninety-first day after the day the amount became payable and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

• Marginal note:Computation of interest on certain duties

  (6) A person who is liable under section 98, subsection 114(1) or paragraph 118(2)(b) to repay the amount of a drawback or relief in respect of duty levied under the Special Import Measures Act and any interest on the drawback shall pay, in addition to those amounts, interest at the specified rate for the period beginning on the first day after the day the drawback was granted or the person failed to comply with a condition to which the relief was subject, as the case may be, and ending on the day those amounts are repaid in full, calculated on the amount of the balance outstanding.

• Marginal note:Interest on the payment of relief for NAFTA

  (7) A person who is liable under subsection 95(1) to pay an amount, other than an amount in respect of duty levied under the Special Import Measures Act, shall pay, in addition to the amount, interest at the specified rate for the period beginning on the sixty-first day after the day the amount became payable and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

• Marginal note:Interest on the payment of relief for CETA

  (8) A person who is liable under subsection 98.1(1) to pay an amount shall pay, in addition to the amount, interest at the specified rate for the period beginning on the sixty-first day after on which the day the amount became payable and ending on the day on which the amount is paid in full, calculated on the amount of the balance outstanding.

• Marginal note:Interest on the payment of relief for CUKTCA

  (9) A person who is liable under subsection 98.2(1) to pay an amount shall pay, in addition to the amount, interest at the specified rate for the period beginning on the sixty-first day after the day on which the amount became payable and ending on the day on which the amount is paid in full, calculated on the amount of the balance outstanding.