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Customs Tariff (S.C. 1997, c. 36)

Full Document:  

Act current to 2022-09-22 and last amended on 2022-09-01. Previous Versions

PART 3Duties Relief (continued)

DIVISION 2Importation without Full Payment of Duties (continued)

Duty Deferral (continued)

Marginal note:Submission of evidence

 If relief has been granted under section 89 or 92, the Minister of Public Safety and Emergency Preparedness may require the submission of evidence satisfactory to that Minister for the purpose of administering section 95.

  • 1997, c. 36, s. 93
  • 2005, c. 38, ss. 142, 145

Marginal note:Definition of customs duties

  •  (1) In sections 95, 96, 98.1 and 98.2, customs duties means customs duties imposed under Part 2, other than

    • (a) additional customs duties levied under sections 21.1 to 21.3; or

    • (b) surtaxes or temporary duties imposed under Division 4 of that Part.

    • (c) [Repealed, 2011, c. 24, s. 131]

  • Marginal note:For greater certainty

    (2) For greater certainty, in sections 95, 96, 98.1 and 98.2, customs duties does not include any duties or taxes levied or imposed on imported goods under the Excise Tax Act, the Special Import Measures Act, the Excise Act, 2001 or the Select Luxury Items Tax Act.

Marginal note:Repayment of relief

  •  (1) If relief is granted under section 89 or 92 in respect of goods that are subsequently exported to the United States or Mexico,

    • (a) the person who exported the goods shall, within 60 days after exporting the goods, report the exportation in the prescribed manner to an officer at a customs office and pay the portion of the duties relieved under that section that are customs duties; and

    • (b) subject to subsections (4) to (6), notwithstanding any other provision of this Part, the person who exported the goods and any other person who was granted the relief are, from the time of exporting the goods, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the portion of the duties relieved under that section that are customs duties.

  • 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.

  • (3) [Repealed, 2020, c. 1, s. 198]

  • Marginal note:Reduction of amount repayable

    (4) The amount of the customs duties levied under subsection (1) shall be reduced in accordance with subsection (5) if, within 60 days after the goods are exported, evidence satisfactory to the Minister of Public Safety and Emergency Preparedness is submitted to that Minister that customs duties in respect of the exportation of the goods have been paid to the government of the United States or of Mexico.

  • Marginal note:Amount of reduction

    (5) Subject to subsection (4), the amount of customs duties levied under subsection (1) shall be reduced by the amount of customs duties paid to the government of the United States or of Mexico or, if that amount is equal to or greater than the amount of the customs duties levied, the amount levied shall be reduced to zero.

  • Marginal note:Exceptions

    (6) Subsection (1) and sections 96 to 98 do not apply in respect of

    • (a) imported goods that originate in the United States or Mexico that are

      • (i) subsequently exported to the United States or Mexico,

      • (ii) used as materials in the production of goods that are subsequently exported to the United States or Mexico, or

      • (iii) substituted by identical or similar goods used as materials in the production of other goods that are subsequently exported to the United States or Mexico;

    • (b) imported orange or grapefruit concentrates used in the manufacture or production of orange or grapefruit products of heading No. 20.09 that are exported to the United States;

    • (c) imported goods used as materials to make apparel that is exported to the United States and subject to the Most-Favoured-Nation Tariff in accordance with the laws of that country, or imported goods substituted by identical or similar goods used as materials to make such apparel;

    • (d) imported goods used as materials in the production of, or for which identical or similar goods are substituted and used as materials in the production of, quilted cotton piece goods and quilted man-made piece goods provided for under subheading 5811.00 and furniture moving pads provided for under subheading 6307.90, that are exported to the United States and subject to the Most-Favoured-Nation Tariff in accordance with the laws of that country;

    • (e) imported goods that are subsequently exported in the condition in which they were imported;

    • (f) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been

      • (i) placed in a duty free shop for exportation,

      • (ii) designated as ships’ stores by regulations made under paragraph 99(g),

      • (iii) supplied for use on board a conveyance of a class prescribed by regulations made under paragraph 99(g), or

      • (iv) used or destined for use, in such other manner as may be prescribed, solely and exclusively in conjunction with a project undertaken jointly by the Government of Canada and the government of the United States or of Mexico, or with a project in Canada undertaken by the government of the United States or of Mexico and destined to become the property of the government of the United States or of Mexico; and

    • (g) such other imported goods or any imported goods used as materials, or any class of such goods, as may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the government of the United States or of Mexico relating to the application of this subsection.

  • Marginal note:Definitions of identical or similar goods and used

    (7) In this section, identical or similar goods and used have the same meanings as in paragraph 7 of Article 2.5 of the Canada–United States–Mexico Agreement.

  • Marginal note:Definition of materials

    (8) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients.

Marginal note:Maximum drawback

 Subject to subsection 95(6), a drawback, granted under section 113, of customs duties paid in respect of imported goods that are or were exported to the United States or Mexico, may not exceed the lesser of

  • (a) the amount of customs duties paid or owed in respect of the imported goods at the time of importation, and

  • (b) the amount of customs duties paid to the country that is a party to the Canada–United States–Mexico Agreement to which the imported goods were subsequently exported.

Marginal note:No relief or drawback of SIMA duties

 Subject to subsection 95(6), relief may not be granted under section 89 or 92 and a drawback may not be granted under section 113 of duties paid under the Special Import Measures Act on imported goods that are or were exported to the United States or Mexico.

Marginal note:Exports to United States or Mexico

  •  (1) Subject to subsection 95(6), if relief or a drawback of duties levied under the Special Import Measures Act has been granted in respect of imported goods and the goods are or were exported to the United States or Mexico and the relief or drawback could not be granted because of section 97,

    • (a) the person who exported the goods shall, within 60 days after exporting the goods, report the exportation in the prescribed manner to an officer at a customs office and pay the amount of the duties levied under that Act that were relieved or on which a drawback was granted; and

    • (b) notwithstanding any other provision of this Part, any person who exported the goods or who was granted the relief or drawback is, from the time of exporting the goods, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount of the duties levied under that Act that were relieved or on which a drawback was granted.

  • 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:Repayment of relief — EU

  •  (1) If relief is granted under section 89 in respect of goods used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported, on or after the third anniversary of the day on which section 49.8 comes into force, to an EU country or other CETA beneficiary and that benefit, when imported into that country, from a preferential tariff under the Canada–European Union Comprehensive Economic Trade Agreement,

    • (a) the person who exported the other goods shall, within 60 days after exporting them, report their exportation in the prescribed manner to an officer at a customs office and pay an amount equal to the portion of the duties relieved under section 89 that are customs duties; and

    • (b) subject to subsection (4) but despite any other provision of this Part, the person and any other person who was granted that relief are, from the time the other goods are exported, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount referred to in paragraph (a).

  • Marginal note:Debt to Her Majesty

    (2) While it remains unpaid, the amount referred to in subsection (1) is a debt owing to Her Majesty in right of Canada under the Customs Act.

  • Marginal note:No refund or drawback

    (3) No refund or drawback may be granted under section 113 for customs duties paid in respect of goods for which relief of all or a portion of the duties could have been, but was not, granted under section 89, if

    • (a) the goods are used as materials, or identical, equivalent or similar substitutes for those goods are used as materials, in the production of other goods; and

    • (b) those other goods are exported, on or after the third anniversary of the day on which section 49.8 comes into force, to an EU country or other CETA beneficiary and benefit, when imported into that country, from a preferential tariff under the Canada–European Union Comprehensive Economic Trade Agreement.

  • Marginal note:Exceptions

    (4) Subsections (1) and (3) do not apply to

    • (a) imported goods that originate in an EU country or other CETA beneficiary that are used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to an EU country or other CETA beneficiary;

    • (b) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been

      • (i) placed in a duty free shop for exportation,

      • (ii) designated as ships’ stores by regulations made under paragraph 99(g), or

      • (iii) supplied for use on board a conveyance of a class prescribed under paragraph 99(g); or

    • (c) any other imported goods or any imported goods used as materials, or any class of such goods, that may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the other parties to the Canada–European Union Comprehensive Economic and Trade Agreement.

  • Marginal note:Definition of materials

    (5) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients.

  • 2017, c. 6, s. 102

Marginal note:Repayment of relief — U.K.

  •  (1) If relief is granted under section 89 in respect of goods used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to a CUKTCA beneficiary and that benefit, when imported into that country, from a preferential tariff under the Canada–United Kingdom Trade Continuity Agreement,

    • (a) the person who exported the other goods shall, within 60 days after exporting them, report their exportation in the prescribed manner to an officer at a customs office and pay an amount equal to the portion of the duties relieved under section 89 that are customs duties; and

    • (b) subject to subsection (4) but despite any other provision of this Part, the person and any other person who was granted that relief are, from the time the other goods are exported, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount referred to in paragraph (a).

  • Marginal note:Debt to Her Majesty

    (2) While it remains unpaid, the amount referred to in subsection (1) is a debt owing to Her Majesty in right of Canada under the Customs Act.

  • Marginal note:No refund or drawback

    (3) No refund or drawback may be granted under section 113 for customs duties paid in respect of goods for which relief of all or a portion of the duties could have been, but was not, granted under section 89, if

    • (a) the goods are used as materials, or identical, equivalent or similar substitutes for those goods are used as materials, in the production of other goods; and

    • (b) those other goods are exported to a CUKTCA beneficiary and benefit, when imported into that country, from a preferential tariff under the Canada–United Kingdom Trade Continuity Agreement.

  • Marginal note:Exceptions

    (4) Subsections (1) and (3) do not apply to

    • (a) imported goods that originate in a CUKTCA beneficiary that are used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to a CUKTCA beneficiary;

    • (b) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been

      • (i) placed in a duty free shop for exportation,

      • (ii) designated as ships’ stores by regulations made under paragraph 99(g), or

      • (iii) supplied for use on board a conveyance of a class prescribed under paragraph 99(g); or

    • (c) any other imported goods or any imported goods used as materials, or any class of such goods, that may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the Government of the United Kingdom.

  • Marginal note:Definition of materials

    (5) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients.

 
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