Excise Tax Act (R.S.C., 1985, c. E-15)

Act current to 2017-09-27 and last amended on 2017-07-01. Previous Versions

SCHEDULE III(Sections 15, 23 and 51)

PART I
Coverings or Containers

  • 1 Usual coverings or usual containers sold to or imported by a manufacturer or producer for use by him exclusively in covering or containing goods of his manufacture or production that are not subject to the consumption or sales tax, but not including coverings or containers designed for dispensing goods for sale or designed for repeated use.

  • 2 All of the following usual coverings or usual containers when for use exclusively for covering or containing goods not subject to the consumption or sales tax:

    • (a) barrels and boxes for fish; lobster crates; scallop bags;

    • (b) barrels, boxes, baskets and crates for packaging fruits and vegetables;

    • (c) bottles and cans for milk and cream;

    • (d) boxes, crates and cartons for eggs;

    • (e) butter and cheese boxes;

    • (f) cans and insulated bags for ice cream;

    • (g) corrugated paper boxes for bread;

    • (h) drums and cans for honey;

    • (i) flour bags;

    • (j) crates, cages and boxes for transportation of live poultry; and

    • (k) bottles for food or drink.

  • 3 Materials for use exclusively in the manufacture of the tax exempt goods mentioned in sections 1 and 2 of this Part.

PART II
Diplomatic

  • 1 Articles for the use of the Governor General.

  • 2 Articles imported for the personal or official use of the Heads of Diplomatic Missions, High Commissioners representing other of Her Majesty’s Governments, Counsellors, Secretaries and Attachés at Embassies, Legations and Offices of High Commissioners in Canada, Trade Commissioners and Assistant Trade Commissioners representing other of Her Majesty’s Governments, Consuls General, Consuls and Vice-Consuls of Foreign Nations, who are natives or citizens of the countries they represent and are not engaged in any other business or profession.

  • 3 Automobiles, cigars, cigarettes, manufactured tobacco, ale, beer, stout, wines and spirits purchased in Canada by and for the personal or official use of any of the persons mentioned in section 2 of this Part.

PART III
Educational, Technical, Cultural, Religious and Literary

  • 1 Bibles, missals, prayer books, psalm and hymn books, religious tracts, Sunday School lesson pictures, books, bound and unbound, pamphlets, booklets, leaflets, scripture, prayer, hymn and mass cards and religious mottoes and pictures, unframed, for the promotion of religion, and materials to be used exclusively in the manufacture thereof, but not including forms, stationery or annual calendars.

  • 2 Chalkboards, tackboards, desks, tables and chairs, not including upholstered chairs, when sold to or imported by educational institutions for their own use and not for resale, and articles and materials for use exclusively in the manufacture of the tax-exempt goods specified in this section.

  • 3. (1) The following printed matter, articles and materials:

    • (a) college and school annuals; unbound literary papers regularly issued at stated intervals not less frequently than four times yearly; sheet music; manuscripts; national manufacturing, industrial or trade directories; printed books that contain no advertising and are solely for educational, technical, cultural or literary purposes; articles and materials for use exclusively in the manufacture or production of the foregoing; and

    • (b) magazines and parts thereof; newspapers and parts thereof; articles and materials for use exclusively in the manufacture or production of the foregoing; all the foregoing other than:

      • (i) cultural, entertainment, sports or like publications that serve as programs,

      • (ii) magazines that are not issued regularly at stated intervals or that are so issued but at stated intervals less frequently than four times yearly,

      • (iii) any single issue of a magazine if

        • (A) the printed space therein devoted to advertising is more than ninety per cent of the total printed space therein, or

        • (B) the aggregate of the printed space devoted to advertising in the four issues of the magazine immediately preceding that issue is more than seventy per cent of the aggregate of the total printed space in those four issues,

      • (iv) any single issue of a newspaper if the printed space therein devoted to advertising is more than ninety per cent of the total printed space therein,

      • (v) all issues of a newspaper in any calendar quarter if the printed space devoted to advertising in any issue is, in more than fifty per cent of the issues of the newspaper in that calendar quarter, more than eighty per cent of the total printed space in that issue,

      • (vi) programs, advertising supplements or advertising inserts that,

        • (A) being substantially the same, are for distribution in two or more separate magazines or newspapers, or

        • (B) are supplied by or on behalf of an advertiser to the publisher of a magazine or newspaper, and

      • (vii) programs, advertising supplements, advertising inserts or other advertising material in a newspaper that are

        • (A) printed in a format different from the rest of the newspaper,

        • (B) not sequentially numbered in a manner consistent with the rest of the newspaper, or

        • (C) composed of one or more sheets folded separately from any other section of the newspaper,

    but excluding albums, biographical, financial or statistical surveys and reports, books for writing or drawing on, catalogues, colouring books, directories of all kinds not mentioned in this section, fashion books, guide books, periodic reports, price lists, rate books, timetables, year books, any other similar printed matter and any printed matter or part thereof or class of printed matter as may be designated by the Governor in Council.

  • (2) For the purposes of subparagraphs (1)(b)(iii) to (v),

    • (a) “printed space”

      • (i) in the case of printed space devoted to advertising, includes all space available to an advertiser, and

      • (ii) in any other case, does not include the margins of a page; and

    • (b) “margin” means that part of the surface of a page that is between the upper, lower, inner and outer edges of the page and the main body of printed matter and may contain all or any portion of the name, date, issue number, page number or price of the publication or all or any portion of the name or number of a section of the publication or any marks, marginal notes or similar printed matter and may be coloured or patterned.

  • 4 Phonograph records and audio tapes authorized by the Department of Education of any province for instruction in the English or French language, and materials for use exclusively in the manufacture thereof.

  • 5 Books purchased or imported by public libraries.

  • 6 Directories purchased or imported by free reference libraries.

  • 7 Printed matter for use by school boards, schools and universities and not for sale, and articles and materials for use exclusively in the manufacture or production of the printed matter.

  • 8 Bells of all kinds and bell operating equipment; parts therefor; the foregoing when for use in churches only.

  • 9 Astronomical, geographical and topographical globes.

  • 10 Utensils, instruments and other apparatus that are designed for use in classroom instruction and that are to be employed directly in teaching or research for more than fifty per cent of the time they are in use; scientific preparations for use directly in teaching or research; specimens, anatomical preparations and skeletons; scientific apparatus and equipment ancillary thereto; scientific utensils and instruments; glassware for laboratory or scientific uses; parts of the foregoing; all of the foregoing for use by public libraries, public museums or institutions established solely for educational or scientific purposes, and not for sale or rental; articles and materials for use exclusively in the manufacture of the foregoing.

  • 11 Maps, charts, diagrams, posters, motion picture films, filmstrips, microfilms, slides and other photographic reproductions and pictorial illustrations; reproductions of works of art; sound and video recordings; models, static or moving; parts of the foregoing; all of the foregoing for use by public libraries, public museums, or institutions established solely for educational, scientific or religious purposes, and not for sale or rental; articles and materials for use exclusively in the manufacture of the foregoing.

  • 12 Goods for placement as exhibits in public museums, public libraries, universities, colleges or schools and not for sale.

  • 13 Goods, other than spirits or wines, manufactured or produced more than one hundred years prior to the date of their importation or sale.

  • 14 Imported printed matter that is to be made available to the general public, without charge, for the promotion of tourism, where the imported printed matter is

    • (a) imported by a government or a department, agency or representative of a government; or

    • (b) produced or purchased outside Canada

      • (i) by a board of trade, chamber of commerce, municipal or automobile association or other similar organization, or

      • (ii) by or on the order of a foreign government or a department, agency or representative of a foreign government.

  • 15 Botanical and entomological specimens; mineralogical specimens; skins of birds and animals not native to Canada, for taxidermic purposes, not further manufactured than prepared for preservation; fish skins; anatomical preparations and skeletons or parts thereof; all the foregoing when imported into Canada.

PART IV
Farm and Forest

  • 1 Animals, living; poultry, living; bees.

  • 2 Baling wire for baling farm produce, and articles and materials to be used or consumed exclusively in the manufacture thereof.

  • 3 Boxes for farm wagons, and articles and materials for use exclusively in the manufacture thereof.

  • 4 Casein.

  • 5 Cut flowers; cut foliage; dormant flower bulbs, corms, roots and tubers; nursery stock; potted, flowering or bedding plants; vegetable plants.

  • 6 Drain tile for agricultural purposes and materials for use exclusively in the manufacture thereof.

  • 7 Farm produce produced and sold by the individual farmer.

  • 8 Farm wagons, including four-wheeled farm wagons equipped to be tractor drawn and farm sleds; parts therefor and materials for use exclusively in the manufacture thereof.

  • 9 Fertilizers and materials for use exclusively in the manufacture thereof.

  • 10 Forest products when produced and sold by the individual settler or farmer; logs and round unmanufactured timber; sawdust; wood shavings.

  • 11 Friction disc sharpeners.

  • 12 Furs, raw.

  • 13 Grain or seed cleaning machines and complete parts therefor; materials for use exclusively in the manufacture thereof.

  • 14 Grains and seeds in their natural state, other than those included in any paragraph of section 1 of Part V of this Schedule; hay; hops; straw.

  • 15 Harness for horses and complete parts therefor, and articles and materials for use exclusively in the manufacture thereof; harness leather.

  • 16 Hides, raw and salted.

  • 17 Individual tree guards and tree protectors not exceeding one metre in height.

  • 18 Peat moss when used for agricultural purposes, including poultry litter.

  • 19 Preparations, chemicals or poisons for pest control purposes in agriculture or horticulture, and materials used in the manufacture thereof.

  • 20 Rodent poisons, and materials for use exclusively in the manufacture thereof.

  • 21 Sap spouts, sap buckets and evaporators and complete parts therefor when for use exclusively in the production of maple syrup.

  • 22 Self-propelled, self-unloading forage wagons for off-highway use for farm purposes and materials used in the manufacture thereof.

  • 23 Steel pens, steel stalls and complete parts therefor for farm animals, and articles and materials for use exclusively in the manufacture thereof.

  • 24 Tobacco dryers, not including buildings, for use on the farm for farm purposes only, parts therefor and articles and materials for use in the manufacture thereof.

  • 25 Traction engines for farm purposes and accessories therefor, not including machines and tools for operation by those engines, and complete parts of the foregoing, and materials to be used exclusively in the manufacture thereof.

  • 26 Wool not further prepared than washed; woollen rolls or wool yarn milled for a producer of wool for his own use from wool supplied by him.

  • 27 Animal semen.

  • 28 Roofs, chutes, ladders, wall sections with or without doors incorporated therein, materials and parts therefor; all of the foregoing for the construction or repair of silos for storing ensilage, or of tanks or vessels for storing farm animal or poultry excreta.

  • 29 Agricultural machinery and parts therefor.

  • 30 Aluminum sluice-type devices for controlling water in irrigation ditches; bird scaring devices but not including recorders or reproducers therefor; farm implements and farm equipment; spraying and dusting machines and attachments therefor; parts of all the foregoing; all the foregoing when for use on the farm for farm purposes only.

  • 31 Articles and materials for use exclusively in the manufacture of the tax exempt goods mentioned in sections 28 to 30 of this Part.

PART V
Foodstuffs

  • 1 Food and drink for human consumption (including sweetening agents, seasonings and other ingredients to be mixed with or used in the preparation of the food and drink), other than

    • (a) wine, spirits, beer, malt liquor and other alcoholic beverages;

    • (b) non-alcoholic malt beverages;

    • (c) carbonated beverages and goods for use in the preparation of carbonated beverages;

    • (d) non-carbonated fruit juice beverages and fruit flavoured beverages, other than milk-based beverages, containing less than twenty-five per cent by volume of

      • (i) a natural fruit juice or combination of natural fruit juices, or

      • (ii) a natural fruit juice or combination of natural fruit juices that have been reconstituted into the original state,

    and goods that, when added to water, produce a beverage described in this paragraph;

    • (e) candies, confectionery that may be classed as candy, and all goods sold as candies, such as candy floss, chewing gum and chocolate, whether naturally or artificially sweetened, and including fruits, seeds, nuts and popcorn when coated or treated with candy, chocolate, honey, molasses, sugar, syrup or artificial sweeteners;

    • (f) chips, crisps, puffs, curls and sticks (such as potato chips, corn chips, cheese puffs, potato sticks, bacon crisps and cheese curls) and other similar snack foods; popcorn and brittle pretzels; but not including any product sold primarily as a breakfast cereal or any product manufactured or produced in a retail outlet for sale in that outlet exclusively and directly to consumers;

    • (g) salted nuts and salted seeds;

    • (h) granola products, but not including any product sold primarily as a breakfast cereal or any product manufactured or produced in a retail outlet for sale in that outlet exclusively and directly to consumers;

    • (i) snack mixtures containing cereals, nuts, seeds, dried fruit or any other edible product, but not including any mixture sold primarily as a breakfast cereal or any mixture manufactured or produced in a retail outlet for sale in that outlet exclusively and directly to consumers;

    • (j) ice lollies and flavoured, coloured or sweetened ice waters, whether or not frozen, but not including any product manufactured or produced in a retail outlet for sale in that outlet exclusively and directly to consumers;

    • (k) ice cream, ice milk, sherbet, frozen yoghurt or frozen pudding, or any product containing any of those goods, when packaged in individual servings, but not including any product manufactured or produced in a retail outlet for sale in that outlet exclusively and directly to consumers;

    • (l) fruit bars, rolls and drops and similar fruit-based snack foods, but not including any product manufactured or produced in a retail outlet for sale in that outlet exclusively and directly to consumers; and

    • (m) individually wrapped and packaged snack foods that are similar to chocolate bars, but not including any product manufactured or produced in a retail outlet for sale in that outlet exclusively and directly to consumers.

  • 2 Feeds, and supplements for addition to the feeds, for animals, fish, fowl or bees that are ordinarily raised to produce or to be used as food for human consumption.

  • 3 Articles and materials for use exclusively in the manufacture or production of the tax exempt goods mentioned in sections 1 and 2 of this Part.

PART VI
Fuels and Electricity

  • 1 Additives for fuel oil for heating, and materials used in the manufacture thereof.

  • 2 Electricity.

  • 3 Fuel oil for use in the generation of electricity except where the electricity so generated is used primarily in the operation of a vehicle.

  • 4 Fuel for lighting or heating, but not including fuel when for use in internal combustion engines; crude oil to be used in the production of fuel.

  • 5 Gas manufactured from coal, calcium carbide or oil for illuminating or heating purposes.

  • 6 Natural gas.

PART VII
Goods Enumerated in Customs Tariff Items

  • 1 Goods enumerated or referred to under heading No. 98.01, 98.02, 98.03, 98.04, 98.05, 98.06, 98.07, 98.10, 98.11, 98.16, 98.19 or 98.21 of Schedule I to the Customs Tariff, other than tariff item No. 9804.30.00.

PART VIII
Health

  • 1 Any drug described in Schedule D to the Food and Drugs Act.

  • 1.1 Any drug containing a drug described in Schedule F to the Food and Drug Regulations made under the Food and Drugs Act.

  • 1.2 Any drug containing a drug or other substance included in Schedule G to the Food and Drugs Act.

  • 1.3 Any drug containing a substance included in the schedule to the Narcotic Control Act other than a drug or mixture of drugs that may be sold by a pharmacist without a prescription pursuant to regulations made under that Act.

  • 1.4 The following drugs:

    • Digoxin
    • Digitoxin
    • Deslanoside
    • Erythrityl Tetranitrate
    • Isosorbide Dinitrate
    • Nitroglycerine
    • Prenylamine
    • Quinidine and its salts
    • Aminophylline
    • Oxtriphylline
    • Theophylline
    • Theophylline Calcium Aminoacetate
    • Theophylline Sodium Aminoacetate
    • Medical oxygen
    • Epinephrine and its salts.
  • 2 Articles and materials for the sole use of any bona fide public hospital certified to be such by the Department of Health, when purchased in good faith for use exclusively by that hospital and not for resale.

  • 3 Artificial breathing apparatus purchased or leased on the written order of a registered medical practitioner by an individual afflicted with a respiratory disorder for his own use.

  • 4 Mechanical percussors for postural drainage treatment purchased on the written order of a registered medical practitioner.

  • 5 Artificial eyes.

  • 6 Artificial teeth.

  • 7 Hearing aids and parts therefor, including batteries specifically designed for use therewith.

  • 8 Devices designed to convert sound to light signals for use by the deaf, when purchased on the written order of a registered medical practitioner.

  • 9 Laryngeal speaking aids and parts therefor, including batteries specifically designed for use therewith.

  • 10. to 12 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 55]

  • 13 Eyeglasses and contact lenses for the treatment or correction of a defect of vision when prepared in accordance with the prescription of a medical practitioner or an optometrist and parts therefor.

  • 14 Communication devices, for use with telegraph or telephone apparatus, purchased or leased on the written order of a registered medical practitioner for the assistance of the deaf and the dumb.

  • 15 Invalid chairs, commode chairs, walkers, wheel-chair lifts and similar aids to locomotion, with or without wheels; motive power and wheel assemblies therefor; patterning devices; toilet, bath and shower seats; all the foregoing specially designed for the disabled, and such other equipment as may be prescribed by regulation of the Governor in Council as being aids to the mobility of the disabled; accessories and attachments for all the foregoing, including batteries specially designed for use therewith.

  • 16 Selector control devices, purchased or leased on the written order of a registered medical practitioner, specially designed for use by physically handicapped persons to enable those persons to select, energize or control various household, industrial and office equipment.

  • 17 Heart monitoring devices, purchased or leased on the written order of a registered medical practitioner by an individual afflicted with heart disease for his own use, including batteries specially designed for use therewith.

  • 18 Hospital beds purchased or leased on the written order of a registered medical practitioner by an incapacitated person for his own use.

  • 19 Insulin infusion pumps and parts specially designed therefor and insulin syringes.

  • 20 Artificial limbs, with or without power, and all accessories and devices therefor; spinal and other orthopaedic braces; specially constructed appliances made to order for a person having a crippled or deformed foot or ankle; parts of the foregoing.

  • 21 Aural, nasal, mastectomy and other medical or surgical prostheses; ileostomy, colostomy and urinary appliances or similar articles designed to be worn by an individual; articles and materials, not including cosmetics, for use by the individual user of the prosthesis, appliance or similar article and necessary for the proper application and maintenance of the foregoing.

  • 22 Canes and crutches designed for use by the handicapped; attachments, accessories and parts therefor.

  • 23 Blood glucose monitors and meters and parts and accessories specially designed therefor, blood sugar testing strips, blood ketone testing strips, urinary sugar testing strips, reagents and tablets and urinary ketone testing strips, reagents and tablets.

  • 24 Articles and materials to be incorporated into or to form a constituent or component part of any of the tax exempt goods mentioned in this Part when sold to or imported by a manufacturer or producer for use by that manufacturer or producer in the manufacture or production of any such tax exempt goods.

PART IX
Marine and Fisheries

  • 1 Boats purchased by fishermen for use in the fisheries, and articles and materials for use exclusively in the manufacture, equipment or repair thereof.

  • 2 Carrageen or Irish moss.

  • 3 Cotton duck and cotton sail twine for use exclusively in the manufacture of equipment for ships or vessels.

  • 4 Lobster pots, lobster traps, crab or shrimp pots, crab or shrimp traps, cod traps, eel traps, articles for binding or wedging lobster claws, and materials for use exclusively in the manufacture thereof.

  • 5 Fishing nets and nettings of all kinds; specially designed needles for use in repairing fishing nets; metal panel devices for use in keeping nets open; metal swivels; fish hooks, lures, jiggers and artificial baits; sinkers and floats including trawl kegs; threads, twine, marlines, fishing lines, rope and cordage; carapace measures; all the foregoing for use in commercial fishing, or in the commercial harvesting of marine plants; none of the foregoing for sports fishing purposes; articles and materials for use in the manufacture, preservation or repair of the tax exempt goods specified in this section.

PART X
Mines and Quarries

  • 1 Crushed stone; crushed gravel.

  • 2 Gold and silver in bars, blocks, drops, ingots, plates or sheets not further manufactured.

  • 3 Ores of all kinds.

  • 4 Sand, gravel, rubble and field stone.

  • 5 Vermiculite; perlite.

  • 6 Blast furnace slag and boiler slag, not further processed than crushed and screened.

PART XI
Miscellaneous

  • 1 Articles and materials purchased or imported by a government of a country designated by the Governor in Council pursuant to heading No. 98.10 of Schedule I to the Customs Tariff, or purchased or imported by a Canadian government agency on behalf of such a government, for the construction, maintenance or operation of military or defence establishments in Canada and not intended for resale, gift or other disposition except as may be authorized by the Minister of National Revenue.

  • 2 Baler twine and materials for use exclusively in the manufacture thereof.

  • 3 British and Canadian coins; foreign gold coin.

  • 4 Coin of any metal, of authorized weight and design, issued for use as currency under the authority of the government of any country.

  • 5 Donations of clothing and books for charitable purposes.

  • 6 Fire brick, plastic refractories, high temperature cement, fire clay and other refractory materials and materials to be used or consumed exclusively in the manufacture thereof.

  • 7 Identification tags or labels for designating the grades or quality of meat, poultry, fish, eggs, fruit and vegetables, and materials for use exclusively in the manufacture thereof.

  • 8 Memorials or monuments erected in memory of members of the Armed Forces who lost their lives in the service of their country.

  • 9 Radium.

  • 10 Stained glass windows of blown glass, technically called Antique glass, or of handmade slab glass, and materials for use exclusively in the manufacture of those windows.

  • 11 Tanks for collecting milk and materials for use exclusively in the manufacture thereof, not including chassis or cabs.

  • 12 War veterans’ badges.

  • 13 Sodium chloride.

  • 14 Ice.

  • 15 Bicycles and tricycles, and articles and materials for use exclusively in the manufacture or production thereof.

  • 16 Amusement riding devices, ancillary equipment and parts therefor, not including motor trucks or coin operated devices, specially designed for use at agricultural exhibitions or commercial fairs, and articles and materials for use exclusively in the manufacture or production thereof.

  • 17 Conversion parts and kits, for use in the conversion or modification to the metric system of retail scales having a maximum weighing capacity of one hundred kilograms, specifically designed for and used in the weighing of goods in retail operations, when sold or imported before January 1, 1984.

  • 18 Articles and materials to be used in Canada for the construction of bridges and tunnels crossing the boundary between the United States and Canada.

  • 19 Postage stamps; medals, trophies and other prizes, not including usual merchantable goods, won abroad in competitions or bestowed, received or accepted abroad, or donated by persons or organizations abroad for heroic deeds, valour or distinction.

  • 19.1 Original engravings, prints and lithographs produced directly in black and white or in colour of one or of several plates wholly executed by hand by the artist, but not including such articles produced by any mechanical or photo-mechanical process.

  • 20 Paintings, drawings and pastels; all the foregoing when produced by an artist and valued at not less than twenty dollars each.

  • 21 Original sculptures and statuary; the first twelve replicas thereof; assemblages; all the foregoing when produced by a professional artist and valued at not less than seventy-five dollars each.

  • 22 Hand-woven tapestries or handmade appliqués; all the foregoing when suitable only for use as wall hangings and valued at not less than two hundred and fifteen dollars per square metre.

  • 23 All articles specially designed for the use of the blind for any purpose when for blind persons and purchased or imported by, or on the order or certificate of, the Canadian National Institute for the Blind, or any other bona fide institution or association for the blind.

  • 24 Sanitary napkins, tampons, belts for sanitary napkins, and articles and materials for use exclusively in the manufacture or production thereof.

  • 25 Contraceptives and articles and materials for use exclusively in the manufacture or production thereof.

  • 26 Trophies of war, being arms, military stores, munitions of war and other articles, which are to be retained for use as trophies, when imported into Canada.

  • 27 Menageries; carriages equipped to be animal drawn and harness for use therewith.

  • 28 All the following:

    • (a) electronic bar-code scanning equipment designed to read product bar codes applied to goods held by a person for sale in the ordinary course of business;

    • (b) cash registers designed with the capability of calculating and recording sales taxes imposed by more than one jurisdiction;

    • (c) equipment designed to convert a cash register or similar sales recording device to one that has the capability of calculating and recording sales taxes imposed by more than one jurisdiction;

    • (d) sales recording devices similar to cash registers, designed with the capability of calculating and recording sales taxes imposed by more than one jurisdiction, sold to or imported by a person for use by the person in a retail or wholesale outlet primarily for recording sales and controlling inventory;

    • (e) electronic equipment that is ancillary to the goods described in any of paragraphs (a) to (d), when sold to or imported by a person for use by the person in a retail or wholesale outlet primarily for recording sales and controlling inventory; and

    • (f) articles and materials to be incorporated into or to form a constituent or component part of any of the goods described in paragraphs (a) to (e), when sold to or imported by a manufacturer or producer for use by the manufacturer or producer in the manufacture or production of those goods.

PART XII
Municipalities

  • 1 Certain goods sold to or imported by municipalities for their own use and not for resale, as follows:

    • (a) culverts;

    • (b) equipment, at a price in excess of two thousand dollars per unit, specially designed for use directly for road making, road cleaning or fire fighting, but not including automobiles or ordinary motor trucks;

    • (c) fire hose including couplings and nozzles therefor;

    • (d) fire truck chassis for the permanent attachment thereon of fire fighting equipment for use directly in fire fighting;

    • (e) goods for use directly in a water distribution, sewerage or drainage system; goods used in the construction of a building, or that part of a building, used exclusively to house machinery and apparatus for use directly in a water distribution, sewerage or drainage system; chemicals for use in the treatment of water or sewage in a water distribution, sewerage or drainage system; and, for the purposes of this exemption, any agency operating a water distribution, sewerage or drainage system for or on behalf of a municipality may be declared by the Minister to be a municipality;

    • (f) laminated timber for bridges;

    • (g) precast concrete shapes for bridges in public highway systems;

    • (h) structural steel and aluminum for bridges;

    • (i) instruments and materials, not including motor vehicles, aircraft, ships or office equipment, to be used directly and exclusively to detect, measure, record or sample pollutants to water, soil or air;

    • (j) truck chassis for the permanent attachment thereon of equipment, at a price in excess of two thousand dollars per unit, specially designed for use directly for road making or road cleaning; and

    • (k) passenger transportation vehicles and parts therefor, not including vehicles designed to carry less than twelve passengers, for use directly and principally in the operation of a municipal public passenger transportation system, which each day provides a regularly scheduled service to the general public, owned or operated or to be owned or operated by or on behalf of a municipality.

  • 2 Articles and materials for use exclusively in the manufacture of the tax exempt goods mentioned in section 1 of this Part.

PART XIII
Production Equipment, Processing Materials and Plans

  • 1 All the following:

    • (a) machinery and apparatus sold to or imported by manufacturers or producers for use by them primarily and directly in

      • (i) the manufacture or production of goods,

      • (ii) the development of manufacturing or production processes for use by them, or

      • (iii) the development of goods for manufacture or production by them,

    • (b) machinery and apparatus sold to or imported by manufacturers or producers for use by them directly in the detection, measurement, prevention, treatment, reduction or removal of pollutants to water, soil or air attributable to the manufacture or production of goods,

    • (b.1) machinery and apparatus for use primarily and directly in the treatment or processing of toxic waste in a toxic waste treatment plant,

    • (c) equipment sold to or imported by manufacturers or producers for use by them in carrying refuse or waste from machinery and apparatus used by them directly in the manufacture or production of goods or for use by them for exhausting dust and noxious fumes produced by their manufacturing or producing operations,

    • (d) safety devices and equipment sold to or imported by manufacturers or producers for use by them in the prevention of accidents in the manufacture or production of goods,

    • (e) self-propelled trucks mounted on rubber-tired wheels for off-highway use exclusively at mines and quarries,

    • (f) internal combustion tractors, other than highway truck tractors, for use exclusively in the operation of logging, the operation to include the removal of the log from stump to skidway, log dump, or common or other carrier,

    • (g) logging wagons and logging sleds,

    • (h) machinery, logging cars, cranes, captive balloons having a volume of four thousand two hundred and forty-eight cubic metres (4 248 m3) or more, blocks and tackle, wire rope and logging boom chain; all the foregoing for use exclusively in the operation of logging, the operation to include the removal of the log from stump to skidway, log dump, or common or other carrier,

    • (i) pipes or tubes commonly known as “oil-country goods”, being casing or tubing and fittings, couplings, thread protectors and nipples therefor; drill pipe; all of the foregoing for use in connection with natural gas or oil wells,

    • (j) machinery and apparatus, including wire rope, drilling bits and seismic shot-hole casing, for use in exploration for or discovery or development of petroleum, natural gas or minerals,

    • (k) repair and maintenance equipment sold to or imported by manufacturers or producers for use by them in servicing goods described in paragraphs (a) to (j) that are used by them,

    • (l) parts for goods described in paragraphs (a) to (k),

    • (m) drilling mud and additives therefor,

    • (n) geophysical surveying precision instruments and equipment for use exclusively in prospecting for, or in the exploration and development of, petroleum, natural gas, water wells and minerals, or for geophysical studies for engineering projects, including the following: magnetometers; gravity meters and other instruments designed to measure the elements, variations and distortions of the natural gravitational force; field potentiometers, meggers, non-polarizing electrodes, and electrical equipment for making measurements in drill holes; instruments and equipment for seismic prospecting; geiger muller counters and other instruments for radioactive methods of geophysical prospecting; electrical and electronic amplifying devices and electrical thermostats designed to be used with any of the foregoing; repair parts, tripods and fitted carrying cases for any of the foregoing, and

    • (o) articles and materials for use in the manufacture of goods described in paragraphs (a) to (n),

    but not including:

    • (p) office equipment,

    • (q) motor vehicles except those described in paragraphs (e) and (h),

    • (r) electric generators and electric alternators that are portable or mobile, including drive motors therefor, and generator and alternator sets that are portable or mobile, except when such generators, alternators or sets are purchased for use on a farm for farm purposes only; stand-by electric generators and stand-by electric alternators, including drive motors therefor, and stand-by generator and stand-by alternator sets, for the production of electricity for use primarily in a building that normally utilizes electricity supplied by a public or private utility where that building is used primarily for activities other than the manufacture or production of goods,

    • (s) containers designed for repeated use sold to or imported by manufacturers or producers that are not for use by them exclusively and directly in the manufacture or production of goods,

    • (t) goods, including transformers, for use in the transmission or distribution of electricity, other than goods for use within the plant where the electricity is generated or within any other plant where goods, other than electricity, are manufactured or produced, or

    • (u) pipes, valves, fittings, pumps, compressors, regulators and equipment ancillary to any such goods, for use in transporting or distributing goods, but not including any such pipes, valves, fittings, pumps, compressors, regulators or equipment for use within a manufacturing or production facility or for use in gathering systems for natural gas, natural gas liquids or oil in natural gas fields or oil fields.

  • 2 Materials, not including grease, lubricating oils or fuel for use in internal combustion engines, consumed or expended by manufacturers or producers directly in

    • (a) the process of manufacture or production of goods;

    • (b) the development of manufacturing or production processes for use by them;

    • (c) the development of goods for manufacture or production by them; or

    • (d) the detection, measurement, prevention, treatment, reduction or removal of pollutants described in paragraph 1(b) of this Part.

  • 3 Plans and drawings, related specifications and substitutes therefor, and reproductions of any of the foregoing, when sold to or imported by manufacturers or producers for use by them directly in

    • (a) the manufacture or production of goods,

    • (b) the development of manufacturing or production processes for use by them,

    • (c) the development of goods for manufacture or production by them, or

    • (d) the detection, measurement, prevention, treatment, reduction or removal of pollutants described in paragraph 1(b) of this Part,

    and materials for use exclusively in the manufacture of those plans, drawings, specifications, substitutes or reproductions.

  • 4 Typesetting and composition, metal plates, cylinders, matrices, film, art work, designs, photographs, rubber material, plastic material and paper material, when impressed with or displaying or carrying an image for reproduction by printing, made or imported by or sold to a manufacturer or producer for use exclusively in the manufacture or production of printed matter.

PART XIV
Goods Manufactured in Institutions

  • 1 All goods manufactured or produced in Canada by the labour of individuals who are in any manner mentally or physically handicapped, where a substantial portion of the sale price of the goods is in any way attributable to the labour of those individuals, which labour has been performed in, or exclusively under the control and direction of, a certified institution.

  • 2 For the purpose of section 1 of this Part, “certified institution” means an institution in Canada that has as its main purpose the care of individuals of a class described in that section and that holds a valid certificate that has been issued by the Minister.

  • 3 Articles and materials for use exclusively in the manufacture of the goods mentioned in this Part.

PART XV
Clothing and Footwear

  • 1 Clothing and footwear, including articles and materials for incorporation in home or commercial production thereof, as the Governor in Council may determine by regulation.

  • 2 Articles and materials for use exclusively in the manufacture or production of the tax exempt goods mentioned in section 1 of this Part.

PART XVI
Construction Equipment

  • 1 The following goods (not including motor trucks, other than motor trucks specially designed for off-highway use) where the sale price by the Canadian manufacturer or the duty paid value of the imported article exceeds two thousand dollars per unit:

    • (a) excavation and earthmoving equipment; cranes; hoists and derricks; pile driving equipment; pipe-laying, pipe-wrapping and pipe-welding equipment; air compressors and pumps; compactors and rollers; attachments for the foregoing; all designed for construction or demolition purposes;

    • (b) equipment designed for use directly in the preparation, placing, paving, laying, finishing or spreading of concrete, mortar or asphalt; attachments for the foregoing; and

    • (c) repair and replacement parts designed for the equipment referred to in paragraphs (a) and (b).

  • 2 Articles and materials for use exclusively in the manufacture or production of the tax exempt goods mentioned in section 1 of this Part.

  • 3 Parts and equipment installed on the tax exempt goods mentioned in paragraphs 1(a) and (b) of this Part prior to the first use of those tax exempt goods.

PART XVII
Transportation Equipment

  • 1 Highway truck tractors; highway trucks designed primarily for the carriage of freight with a gross vehicle mass rating, within the meaning given to that expression by regulation of the Governor in Council, of seven thousand two hundred and fifty kilograms (7 250 kg) or more.

  • 2 Truck trailers, tractor trailers and semi-trailers, designed for the carriage of freight, with a gross vehicle mass rating, within the meaning given to that expression by regulation of the Governor in Council, of seven thousand two hundred and fifty kilograms (7 250 kg) or more; fifth wheel dollies designed for use in converting tractor trailers or semi-trailers to full trailers for highway towing purposes.

  • 3 Railway locomotives and railway rolling stock including equipment specially designed for movement on railway tracks; rail flaw detector apparatus for testing rail in railway tracks.

  • 4 Re-usable cargo containers with a capacity of fourteen cubic metres (14 m3) or greater; refrigeration and heating units therefor.

  • 5 Motor vehicles and trackless train systems consisting of a towing unit and one or more towed units, designed and permanently equipped to carry twelve or more passengers, for use exclusively in the provision of such class or classes of passenger transportation services as the Governor in Council may by regulation prescribe.

  • 6 Buses or vans specifically equipped for transporting handicapped persons when for use by public organizations or institutions exclusively for providing transportation to the handicapped, and that would have been capable of carrying twelve or more passengers if equipped in the normal manner.

  • 7 School buses designed to carry twelve or more passengers.

  • 8 Aircraft, parts and equipment therefor, when purchased or imported for use exclusively in the provision of

    • (a) public air transportation of passengers, freight or mail; or

    • (b) air services directly related to

      • (i) the exploration and development of natural resources,

      • (ii) aerial spraying, seeding and pest control,

      • (iii) forestry,

      • (iv) fish cultivation,

      • (v) aerial construction operations using rotating wing aircraft,

      • (vi) aerial fire control, fire protection and fire fighting, or

      • (vii) map making operations.

  • 9 Air cushion vehicles and tracked vehicles specially designed to transport twelve or more passengers or three thousand six hundred and twenty-nine kilograms (3 629 kg) or more freight.

  • 10 Parts and equipment installed on the tax exempt goods mentioned in sections 1, 2, 4, 5, 6, 7 and 9 of this Part or designed for permanent installation on the tax exempt goods mentioned in section 3 of this Part where the sale price by the Canadian manufacturer or the duty paid value of the imported article exceeds two thousand dollars per unit; all parts and equipment installed on the tax exempt goods mentioned in sections 1, 2, 3, 4, 5, 6, 7 and 9 of this Part prior to the first use of those tax exempt goods; except that parts and equipment installed on the tax exempt goods mentioned in section 1 of this Part are exempted from tax only if they are designed to facilitate the carriage or handling of freight.

  • 11 Ships and other marine vessels, purchased or imported for use exclusively in such marine activities, other than sport or recreation, as the Governor in Council may by regulation prescribe; articles and materials for use exclusively in the manufacture, equipping or repair of those tax exempt goods.

  • 12 Articles and materials for use exclusively in the manufacture or production of the tax exempt goods mentioned in sections 1 to 10 of this Part.

PART XVIII

[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 55]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. E-15, Sch. III;
  • R.S., 1985, c. 15 (1st Supp.), ss. 42 to 46, c. 7 (2nd Supp.), s. 55, c. 42 (2nd Supp.), s. 13, c. 41 (3rd Supp.), ss. 123 to 126, c. 12 (4th Supp.), ss. 41 to 51;
  • 1988, c. 65, s. 115;
  • 1989, c. 22, s. 7;
  • 1990, c. 45, s. 17;
  • 1999, c. 31, s. 87.
 
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