Customs Tariff

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.