Refund of Duties Regulations (SOR/98-48)

Interpretation

1 The definitions in this section apply in these Regulations.

Act

Act means the Customs Act. (Loi)

bulk

bulk has the same meaning as in section 2 of the Excise Act, 2001. (en vrac)

carrier

carrier means a person who transports imported goods. (transporteur)

CSA importer

CSA importer has the same meaning as in section 2 of the Accounting for Imported Goods and Payment of Duties Regulations. (importateur PAD)

competent authority

competent authority means an official of the Government of Canada, an official of any municipal or provincial government, an insurance adjuster or a marine surveyor whose duties include the examination or inspection of goods that are the subject of a refund under these Regulations. (autorité compétente)

qualified appraiser

qualified appraiser means a person who is qualified by virtue of their experience, business, occupation or profession to appraise goods that are the subject of a refund under these Regulations and to estimate their loss in value. (appréciateur qualifié)

PART 1Goods that Have Suffered Damage, Deterioration or Destruction

Application

2 This Part applies to the granting of a refund under paragraph 74(1)(a) of the Act of duties paid on goods that have suffered damage, deterioration or destruction at any time from the time of shipment to Canada to the time of release.

Notice

3 Written notice of a claim for a refund of duties and the reasons for the claim must be given to an officer within

• (a) three days after the release of perishable goods; and

• (b) four years after the release of non-perishable goods.

Evidence in Support of Application

4 An application for a refund of duties must be supported by

• (a) a written statement by any carrier, any operator of a sufferance warehouse, bonded warehouse or duty free shop or any competent authority having knowledge of the circumstances, time and place of the damage, deterioration or destruction suffered by the goods, giving the particulars or, if such a statement cannot be obtained, a written statement by a competent authority certifying that the goods suffered damage, deterioration or destruction before they were released; and

• (b) documentation in the form of

  • (i) an appraisal by a qualified appraiser verifying the loss in value of the goods as a result of the damage, deterioration or destruction of the goods,

  • (ii) a copy of any document, including a credit note from the vendor, indicating the amount granted to compensate for the damage, deterioration or destruction of the goods, or

  • (iii) a commitment of payment from the carrier or the carrier’s insurers given to the importer or owner of the goods and showing the amount of compensation given for the loss in value of the goods.

Amount of Refund

5 The amount of the refund of duties shall be

• (a) in the case of perishable goods or brittle goods such as crockery, china, glass and glassware, an amount equal to that proportion of the duties paid on the goods that 85 per cent of the loss in value of the goods is of the value for duty of the goods;

• (b) in the case of sugar or any saccharine product on which duty is determined according to the polarimetric test and that has suffered damage or deterioration from salt water, an amount equal to the difference between

  • (i) the duties paid on the goods, and

  • (ii) the duties that would be payable if, after the percentage of polarization of the goods is determined, there is deducted from that percentage an amount equal to five times the percentage of salt present in that portion of the water found in the damaged goods that is in excess of the water found in samples of undamaged goods, as certified in writing by an officer authorized to test such samples; and

• (c) in the case of any other goods, an amount equal to that proportion of the duties paid on the goods that the loss in value of the goods is of the value for duty of the goods.

Classes of Goods in Respect of Which and Circumstances Where No Refunds Shall Be Granted

6 No refund of duties shall be granted in respect of

• (a) goods for which there is a manufacturer’s or producer’s recommended shelf-life period or allowable storage-before-use period if the goods have suffered damage or deterioration by reason of the expiration of that period; or

• (b) iron or steel or any product manufactured from iron or steel that has suffered damage or deterioration by reason of rust.

PART 2Goods Deficient in Quantity

Application

7 This Part applies to the granting of a refund under paragraph 74(1)(b) of the Act of duties paid on goods where the quantity of goods released is less than the quantity in respect of which duties were paid.

Notice

8 Written notice of a claim for a refund of duties and the reasons for the claim must be given to an officer within four years after the release of the goods.

Evidence in Support of Application

9 An application for a refund of duties must be supported by

• (a) a copy of any document providing evidence of the actual quantity of the goods shipped to Canada together with a copy of any document, including a credit note from the vendor, indicating the amount granted to compensate for the value of the goods short-shipped;

• (b) a written statement by the carrier of the goods verifying the deficiency in quantity of the goods, if the deficiency occurred because the goods were lost or went astray while in the course of transit outside Canada, and explaining the circumstances under which the goods were lost or went astray; or

• (c) a written statement by the carrier or operator of a sufferance warehouse, bonded warehouse or duty free shop verifying the deficiency in quantity of the goods, if the goods were lost or stolen after the goods were reported to an officer under section 12 of the Act and while the goods were in the custody of the carrier or operator, as the case may be.

Amount of Refund

10 The amount of the refund of duties shall be an amount equal to the difference between

• (a) the duties paid; and

• (b) the duties payable on the quantity of goods actually released.

Classes of Goods in Respect of Which and Circumstances Where No Refunds Shall Be Granted

11 No refund of duties shall be granted in respect of goods that were lost or stolen after they were reported to an officer under section 12 of the Act in circumstances where the carrier of the goods is liable under section 20 of the Act to pay the duties on the goods or an operator of a sufferance warehouse, bonded warehouse or duty free shop is liable under section 28 of the Act to pay the duties on the goods.

Circumstances When Unpaid Refund May Be Applied to Duties That Become Due

12 In accordance with subsection 75(2) of the Act, if the quantity of imported goods released is less than the quantity in respect of which duties were paid and no refund of duties has been granted in respect of the deficient quantity and where the goods were deficient in quantity before their arrival in Canada, an officer may, at the request of the person by whom the duties were paid, apply any duties paid in respect of the deficient quantity of the goods to any duties that become due on the deficient quantity if any portion of those goods is subsequently imported by the same importer or owner, on condition that the person submits to the officer a copy of any document providing evidence of the actual quantity of the goods shipped to Canada or, if the circumstances in paragraph 9(b) apply, a written statement described in that paragraph.

PART 3Goods of Inferior Quality

Application

13 This Part applies to the granting of a refund under paragraph 74(1)(c) of the Act of duties paid on goods that are of a quality inferior to the quality of the goods in respect of which the duties were paid.

Notice

14 Written notice of a claim for a refund of duties and the reasons for the claim must be given to an officer within

• (a) three days after the release of perishable goods; and

• (b) four years after the release of non-perishable goods.

Evidence in Support of Application

• 15 (1) Subject to subsection (2), an application for a refund of duties must be supported by a copy of any document, including a credit note from the vendor, indicating the amount granted to compensate for the difference between the value of the goods in respect of which duties were paid and the value of the goods of inferior quality.

• (2) If a person who paid duties is unable to provide the document referred to in subsection (1) because of circumstances beyond their control and the person provides evidence of those circumstances, the application for a refund of duties must be supported by

  • (a) a written statement of the importer indicating that the goods are of a quality inferior to the quality of the goods in respect of which duties were paid and identifying the respect in which the quality is inferior; and

  • (b) an appraisal by a qualified appraiser showing the difference between the value of the goods in respect of which duties were paid and the value of the goods of inferior quality.

Amount of Refund

16 The amount of the refund of duties shall be an amount equal to the difference between

• (a) the duties paid, and

• (b) the duties payable on the value of the goods of inferior quality.

Classes of Goods in Respect of Which and Circumstances Where No Refund Shall be Granted

17 No refund of duties shall be granted in respect of

• (a) goods for which there is a manufacturer’s or producer’s recommended shelf-life period or allowable storage-before-use period if the goods have suffered damage or deterioration by reason of the expiration of that period; or

• (b) iron or steel or any product manufactured from iron or steel that has suffered damage or deterioration by reason of rust.

PART 4Goods Exported from a NAFTA Country or Chile

Application

18 This Part applies to the granting of a refund under paragraph 74(1)(c.1) of the Act of duties paid on goods

• (a) that were exported from a NAFTA country or Chile and imported into Canada

  • (i) on or after January 1, 1994, in the case of goods exported from a NAFTA country, and

  • (ii) on or after July 5, 1997, in the case of goods exported from Chile; and

• (b) where no claim for preferential tariff treatment under NAFTA or no claim for preferential tariff treatment under CCFTA, as the case may be, was made in respect of those goods at the time they were accounted for under subsection 32(1), (3) or (5) of the Act.

Time Limit for Application — Goods Exported from Chile

18.1 In the case of goods that were exported from Chile and imported into Canada on or after March 1, 2014, an application for a refund of duties must be made within four years after the goods were accounted for under subsection 32(1), (3) or (5) of the Act.

Evidence in Support of Application

19 An application for a refund of duties must be supported by a copy of the Certificate of Origin for the goods in respect of which the application is made.

Amount of Refund

20 The amount of a refund of duties shall be an amount equal to the difference between

• (a) the duties paid, and

• (b) the duties payable on the goods as a result of the goods being eligible for preferential tariff treatment under NAFTA or preferential tariff treatment under CCFTA, as the case may be.

PART 5Goods Imported from Israel or Another CIFTA Beneficiary or Shipped Through the United States

Application

21 This Part applies to the granting of a refund under paragraph 74(1)(c.11) of the Act of duties paid on the following goods in respect of which no claim for preferential tariff treatment under CIFTA was made at the time the goods were accounted for under subsection 32(1), (3) or (5) of the Act:

• (a) goods that were imported on or after January 1, 1997, from Israel or another CIFTA beneficiary; and

• (b) goods, except for goods listed in any of Chapters 50 through 63 of the List of Tariff Provisions set out in the schedule to the Customs Tariff, that were shipped to Canada from Israel or another CIFTA beneficiary through the United States on or after July 15, 2002, if

  • (i) the goods did not undergo further production in the territory of the United States other than minor processing, or

  • (ii) any processing that occurred in the territory of the United States with respect to the goods did not increase the transaction value of the goods by greater than 10 per cent.

Evidence in Support of Application

22 An application for a refund of duties must be supported by a copy of the Certificate of Origin for the goods in respect of which the application is made and, if applicable, a copy of the written and signed Declaration of Minor Processing required by subsection 10(1.1) of the Proof of Origin of Imported Goods Regulations.

Amount of Refund

23 The amount of a refund of duties shall be an amount equal to the difference between

• (a) the duties paid, and

• (b) the duties payable on the goods as a result of the goods being eligible for preferential tariff treatment under CIFTA.

PART 5.1Goods Imported from Costa Rica, an EFTA State, Peru, Colombia, Jordan, Panama or Honduras

Application

23.1 This Part applies to the granting of a refund under paragraph 74(1)(c.11) of the Act of duties paid on imported goods in respect of which no claim for preferential tariff treatment under CCRFTA, CEFTA, CPFTA, CCOFTA, CJFTA, CPAFTA or CHFTA was made at the time the goods were accounted for under subsection 32(1), (3) or (5) of the Act, and that were imported from, as the case may be,

• (a) Costa Rica, on or after November 1, 2002;

• (b) an EFTA state, on or after July 1, 2009;

• (c) Peru, on or after August 1, 2009;

• (d) Colombia, on or after August 15, 2011;

• (e) Jordan, on or after October 1, 2012;

• (f) Panama, on or after April 1, 2013; or

• (g) Honduras, on or after October 1, 2014.

Evidence in Support of Application

23.2 An application for a refund of duties must be supported by a copy of the Certificate of Origin for the goods in respect of which the application is made.

Amount of Refund

23.3 The amount of a refund of duties shall be an amount equal to the difference between

• (a) the duties paid, and

• (b) the duties payable on the goods as a result of the goods being eligible for preferential tariff treatment under CCRFTA, CEFTA, CPFTA, CCOFTA, CJFTA, CPAFTA or CHFTA, as the case may be.

PART 6Clerical, Typographical or Similar Error

Application

24 This Part applies to the granting of a refund under paragraph 74(1)(d) of the Act of duties paid on goods where the calculation of duties owing was based on a clerical, typographical or similar error.

Notice

24.1 Written notice of a claim for a refund of duties and the reasons for the claim must be given to an officer within four years after the release of the goods.

Amount of Refund

25 The amount of a refund of duties shall be an amount equal to the duties paid or overpaid in error.