SOR/96-4219961
1
20207
16
CUSTOMS TARIFFGoods Imported and Exported Refund and Drawback RegulationsRegulations Respecting the Refund and Drawback of Duties Paid in Respect of Imported Goods Subsequently Exported, in Respect of Imported Goods Processed in Canada and Subsequently Exported and in Respect of Imported Goods Used, Consumed or Expended in the Processing in Canada of Goods Subsequently ExportedP.C.1995-2250  199512
28
His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsections 77(3)*, 79.4(3)** and 80(3)***, paragraph 95(1)(d)**** and subsections 100(3)***** and (5)***** of the Customs Tariff******, is pleased hereby to make the annexed Regulations respecting the refund and drawback of duties paid in respect of imported goods subsequently exported, in respect of imported goods processed in Canada and subsequently exported and in respect of imported goods used, consumed or expended in the processing in Canada of goods subsequently exported, effective on the day on which section 56 of An Act to amend the Customs Act and the Customs Tariff and to make related and consequential amendments to other Acts, being chapter 41 of the Statutes of Canada, 1995, comes into force.S.C. 1989, c. 18, s. 6S.C. 1989, c. 18, s. 7S.C. 1995, c. 41, s. 47S.C. 1995, c. 41, s. 55(1)S.C. 1995, c. 41, s. 56R.S., c. 41 (3rd Supp.)Short Title
These Regulations may be cited as the Goods Imported and Exported Refund and Drawback Regulations.
Interpretation
In these Regulations,Act means the Customs Tariff; (Loi)beer means beer or malt liquor as defined in section 4 of the Excise Act; (bière)Crown corporation means a corporation named in Schedule II or Schedule III to the Financial Administration Act; (société d’État)textile fabric means textile fibre, glass fibre, textile fabric, glass fabric or other textile product that is of a stage between textile fibre and fabric that is composed exclusively of fibres that fall within a class set out in Schedule I. (tissus textiles)SOR/2003-237, s. 1
DrawbackApplication
This Part applies in respect of the grant, under subsection 113(1) of the Act, of a drawback of the duties paid in respect of imported goods described in subsection 89(1) of the Act, other than goods in respect of which the Exported Motor Vehicles Drawback Regulations apply.SOR/98-54, s. 3
Circumstances in Which an Application for Drawback May Be Made
Subject to section 5, an application for a drawback may be made wherein the case of goods described in paragraph 89(1)(a) of the Act, the goods were not damaged before being exported;in the case of exported goods described in any of paragraphs 89(1)(b) to (e) of the Act, the goodswere not used in Canada before being exported for any purpose other than display or demonstration, andwere not damaged before being exported;in the case of imported goods described in paragraph 89(1)(d) of the Act, other than textile fabric, on which relief of duties would otherwise have been granted,the imported goods are processed in the plant in Canada in which the same quantity of domestic or imported goods of the same class was processed and subsequently exported, andthe exported goods were exported within two years after the date the imported goods were released;in the case of imported textile fabric described in paragraph 89(1)(d) of the Act on which relief of duties would otherwise have been granted,the imported textile fabric is processed into textile goods in a plant in Canada by the processor of textile goods who processed the same quantity of domestic or imported textile fabric of the same class that was subsequently exported, andthe exported textile goods were exported within two years after the date the imported textile fabric was released; andin the case of imported goods described in paragraph 89(1)(e) of the Act on which relief of duties would otherwise have been granted,the imported goods are directly consumed or expended in the processing of goods in the plant in Canada in which the same quantity of domestic or imported goods of the same class was directly consumed or expended in the processing of the exported goods, andthe exported goods were exported within two years after the date the imported goods were released.SOR/98-54, s. 3
An application for a drawback under this Part may be made wherethe goods were exported or deemed to have been exported before the application for drawback is made; andthe applicant provides a waiver from all other persons entitled to claim a drawback, refund or remission of the duties, waiving their right to do so.
Prescribed Classes of Goods and Use
For the purposes of paragraph 89(3)(b) of the Act, the ships and aircraft described in Schedule II are prescribed as classes of ships and aircraft.SOR/98-54, s. 3
For the purposes of paragraph 89(3)(c) of the Act, the prescribed class of telegraph cable ships includes only those telegraph cable ships that areregistered in any country;used exclusively for the laying and repairing of oceanic telegraph cables outside Canada; andproceeding on an ocean voyage outside Canada.SOR/98-54, s. 3
For the purposes of paragraph 89(3)(g) of the Act, goods are used or destined for use where theyare purchased by the government of a country that is party to the Canada–United States–Mexico Agreement or its authorized agent, by a department of the Government of Canada, or by a Crown corporation acting on behalf of the Government of Canada;are for use solely and exclusively in conjunction witha project undertaken jointly by the Government of Canada and the government of a country that is party to the Canada–United States–Mexico Agreement, oran undertaking, located in Canada, of the government of a country that is party to the Canada–United States–Mexico Agreement; andare or will become the property of the government of a country that is party to the Canada–United States–Mexico Agreement.SOR/98-54, s. 3SOR/2020-64, s. 1
Persons Who May Claim a Drawback
Subject to subsection (2), a drawback may be claimed by any person who is the importer or exporter of the imported or exported goods, or is the processor, owner or producer of those goods between the time of their direct shipment to Canada and their export or deemed export.In the case of the goods described in section 10, a drawback may be claimed only by the importer of the goods.
Time Limits for Applying for Drawback
In the case of spirits, wine, or beer that are imported goods described in paragraph 89(1)(b) of the Act on which the relief of duties would otherwise have been granted, an application for drawback shall be made within five years after the date on which the imported spirits, wine or beer were released.SOR/98-54, s. 3; SOR/2003-237, s. 2
Goods of the Same Class
Subject to subsection (2), for the purposes of paragraphs 89(1)(d) and (e) of the Act, domestic or imported goods shall be considered to be of the same class if the goods are so similar that they may beused interchangeably in the processing of goods in Canada; ordirectly consumed or expended interchangeably in the processing in Canada of goods.For the purposes of paragraphs 89(1)(d) and (e) of the Act, domestic and imported textile fabrics composed of different fibres shall be considered to be of the same class if the domestic and imported textile fabrics are composed offibres that fall within one class set out in Schedule I; orfibres that do not fall within one class set out in Schedule I, ifany particular class set out in that Schedule within which fall fibres of which the domestic textile fabric is composedis a class within which fall fibres of which the imported textile fabric is composed, orrepresents less than five per cent of the weight of the domestic textile fabric, andthe difference between the following proportions does not exceed 33 percentage points:the proportion, expressed as a percentage, that the aggregate weight of the fibres of which the domestic textile fabric is composed that fall within the particular class is of the weight of the domestic textile fabric, andthe proportion, expressed as a percentage, that the aggregate weight of the fibres of which the imported textile fabric is composed that fall within that particular class is of the weight of the imported textile fabric.SOR/98-54, s. 3
Same Condition Uses and Operations
For the purposes of paragraph 89(1)(a) of the Act, imported goods will be considered to be in the same condition after theyundergo any of the processes referred to in subparagraph (6)(b) of Article 2.5 of the Canada–United States–Mexico Agreement, if those processes do not materially alter the characteristics of the goods;are used forthe development or production, other than as plant equipment, of goods to be exported, ordisplay or demonstration; orin the case of reusable containers, are used in the international transportation of goods.SOR/98-54, s. 3SOR/2020-64, s. 2
Portion of Duties that May Be Granted as a Drawback
Where the amount of duties paid in respect of imported textile fabric that is considered under section 11 to be of the same class as domestic textile fabric exceeds the amount of duties that would have been payable had the domestic textile fabric been imported, the portion of the duties so paid that may be granted as a drawback is the proportion that the amount that would have been so payable is of the amount that was so paid.
No Drawback to Be Granted
A drawback shall not be granted in respect ofimported goods described in paragraph 89(1)(d) of the Act on which relief of duties would otherwise have been granted, where the domestic goods referred to in subparagraph 4(c)(i) or (d)(i) are processed before those imported goods are processed;imported goods described in paragraph 89(1)(e) of the Act on which relief of duties would otherwise have been granted, where the domestic goods referred to in subparagraph 4(e)(i) are consumed or expended before those imported goods are consumed or expended;imported goods described in paragraph 89(1)(c) or (e) of the Act on which relief of duties would otherwise have been granted, if those goods are goods described in Schedule III; orimported goods described in paragraph 89(1)(d) of the Act on which relief of duties would otherwise have been granted, if those goods are spirits, wine or beer.SOR/98-54, s. 3; SOR/2003-237, s. 3
A drawback in respect of duties levied under section 21.1 or 21.2 of the Act shall not be granted to a person in respect of goods subject to those duties to the extent that it can reasonably be regarded thatthe amount has previously been refunded, remitted, applied or paid to that person under the Act or any other Act of Parliament; orthe person has applied for a refund, payment or remission of the amount under any other Act of Parliament.SOR/2003-237, s. 3
RefundApplication
This Part applies in respect of the grant, under subsection 113(1) of the Act, of a refund of the duties paid on imported goods described in subsection 89(1) of the Act.SOR/98-54, s. 3
Circumstances in Which an Application for a Refund May Be Made
An application for a refund under this Part may be made where the goods have not been exported or deemed to have been exported before the application for a refund is made.
Persons Who May Claim a Refund
A refund may be claimed by the person to whom the Minister of National Revenue has issued a certificate under subsection 90(1) of the Act in respect of the goods on which the duties were paid.SOR/98-54, s. 1
No Refund to Be Granted
A refund in respect of duties levied under section 21.1 or 21.2 of the Act shall not be granted to a person in respect of goods subject to those duties to the extent that it can reasonably be regarded thatthe amount has previously been refunded, remitted, applied or paid to that person under the Act or any other Act of Parliament; orthe person has applied for a refund, payment or remission of the amount under any other Act of Parliament.SOR/2003-237, s. 4
(Sections 2 and 11)Classes of FibresNatural textile fibres such as silk, wool, cotton, flax and sisalArtificial fibres that are viscose or acetatesSynthetic fibres that are nylons or other polyamides, polyesters, acrylics, polyethylenes, polypropylenes or elastomersGlass(Section 6)Classes of Ships and AircraftOcean-going ships operating or being repaired or reconstructed to operate exclusively in international tradeForeign warships, within the meaning of the Ships’ Stores RegulationsTelegraph cable ships, within the meaning of the Ships’ Stores RegulationsShips registered in a country other than Canada that are used exclusively for pleasure purposesAircraft operating exclusively in international flightsInternational aircraft, within the meaning of the Ships’ Stores Regulations(Section 14)Goods Not Subject to DrawbackFuelPlant equipment