Refund of Duties Regulations

40 (1) Where merchantable scrap, waste or by-products result from the destruction or disposal of goods or the incorporation of goods into other goods in respect of which a refund of duties is to be granted under the Act, the amount of the refund shall be reduced by an amount determined by applying to the value of the merchantable scrap, waste or by-products produced the rate of duty under the Customs Tariff that applies on the date of production to the merchantable scrap, waste or by-products.

(2) In this section, "value" means, in respect of merchantable scrap, waste or by-products,

• (a) if the manufacturer or producer sold the merchantable scrap, waste or by-products in an arm's length transaction, their price; or

• (b) in any other case, the price at which the manufacturer or producer would ordinarily have sold the merchantable scrap, waste or by-products in an arm's length transaction on the date the application for a refund is made to an officer at a customs office.