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Refund of Duties Regulations (SOR/98-48)

Regulations are current to 2024-05-28 and last amended on 2023-06-23. Previous Versions

PART 7Duties Paid or Overpaid Due to an Error in Determination

Application

 This Part applies to the granting of a refund under subsection 74(1)(e) of the Act of duties paid on goods where duties were paid or overpaid as a result of an error in the determination under subsection 58(2) of the Act of origin (other than in the circumstances described in paragraph 74(1)(c.1) or (c.11) of the Act), tariff classification or value for duty in respect of the goods and the determination has not been the subject of a decision under any of sections 59 to 61 of the Act.

Amount of Refund

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

PART 8Goods Sold or Otherwise Disposed of or Used, Before Any other Use Is Made of the Goods in Canada

Application

 This Part applies to the granting of a refund under paragraph 74(1)(f) of the Act of duties paid on goods, where the goods or other goods into which they have been incorporated, are sold or otherwise disposed of to a person, or are used, in compliance with a condition imposed under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff, or under any regulations made under that Act in respect of a tariff item in that List, before any other use is made of the goods in Canada.

Evidence in Support of Application

 An application for a refund of duties must be accompanied by

  • (a) a declaration signed by the end-user of the goods affirming that the goods comply in all respects with the conditions imposed under the tariff item referred to in the application;

  • (b) a copy of the purchase order, sales invoice, contract or other document that relates to the sale or disposal of the goods in Canada, if applicable; and

  • (c) a copy of the prescribed form containing the prescribed information required by paragraph 32(1)(a) of the Act for the goods accounted for under subsection 32(1), (3) or (5) of the Act in respect of which the application is made.

Amount of Refund

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

  • (a) the duties paid, and

  • (b) the duties that would have been payable if the goods had been classified under a tariff item, the conditions of which have subsequently been met by virtue of the goods being incorporated, sold or otherwise disposed of or used in compliance with those conditions.

PART 9Duties Overpaid or Paid in Error for other Reasons

Application

 This Part applies to the granting of a refund under paragraph 74(1)(g) of the Act of duties overpaid or paid in error for any of the following reasons:

  • (a) the duties were reduced or removed by a retroactive order or regulation made under the Customs Tariff;

  • (b) the goods are prohibited for use or sale by a provincial law; or

  • (c) the duties levied under section 21.1 of the Customs Tariff in respect of imported bulk spirits were paid or collected under the Act.

  • SOR/2005-213, s. 2

Evidence in Support of Application

 An application for a refund of duties overpaid or paid in error for the reason described in paragraph 31(a) must be supported by a copy of a commercial invoice or similar document substantiating that the goods subject to the refund of duties are the goods on which the duties were paid.

  • SOR/2005-213, s. 3
  • SOR/2006-222, s. 3

 An application for a refund of duties paid in error for the reason described in paragraph 31(b) must be supported by

  • (a) proof of exportation in the form of

    • (i) a copy of a customs document presented to an officer of the customs administration of a foreign country respecting the importation of the goods into that country,

    • (ii) a copy of a document of a transportation company respecting the exportation of the goods, or

    • (iii) other documentation that establishes that the goods were exported; or

  • (b) proof that the goods subject to the refund of duties were destroyed under customs supervision.

  • SOR/2005-213, s. 4(F)
  • SOR/2006-222, s. 4

 An application for a refund of duties paid in error for the reason described in paragraph 31(c) must be supported by

  • (a) a copy of a commercial invoice or similar document that substantiates that the goods subject to the refund of duties

    • (i) are the goods on which the duties were paid, and

    • (ii) were, at the time they were released in accordance with the Act, goods described under section 21.1 of the Customs Tariff; and

  • (b) evidence that substantiates that the importer is authorized under the Excise Act, 2001 to import the goods.

  • SOR/2005-213, s. 5
  • SOR/2006-222, s. 5

Amount of Refund

 In the case of a refund of duties overpaid or paid in error for the reason described in paragraph 31(a), the amount of the refund shall be an amount equal to the duties overpaid or paid.

  • SOR/2006-222, s. 6

 In the case of a refund of duties paid in error for the reason described in paragraph 31(b) or (c), the amount of the refund of duties shall be an amount equal to the duties paid.

  • SOR/2005-213, s. 6
  • SOR/2006-222, s. 6

PART 9.1Application of Refund of Duties Under Section 74 of the Act to Payment of Amounts Owing

  •  (1) CSA importers are prescribed as a class for the purposes of subsection 74(8) of the Act.

  • (2) The application of an amount of a refund of duties under subsection 74(8) of the Act is subject to the condition that the refund has been granted by the Minister under subsection 74(1) or (6) of the Act.

  • SOR/2005-386, s. 2

PART 10Goods that Are Defective, Are of Inferior Quality or Are Not the Goods Ordered and that Have Been Disposed of or Exported

Application

 This Part applies to the granting of a refund under subsection 76(1) of the Act of duties paid on goods that are defective, are of a quality inferior to that in respect of which duties were paid or are not the goods ordered and that have, subsequent to their importation, been disposed of in a manner acceptable to the Minister at no expense to Her Majesty in right of Canada or exported.

Notice

 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

 An application for a refund of duties must be supported by

  • (a) a written statement by the exporter, vendor or manufacturer of the goods confirming that the goods are defective, are of a quality inferior to that in respect of which duties were paid or are not the goods ordered and identifying the nature of the defect or inferior quality or the goods that were actually ordered, as the case may be;

  • (b) a copy of any document relating to a refund or credit given by the vendor of the goods to the importer or owner, showing the amount of any refund of the purchase price or of any credit given in respect of the goods;

  • (c) in the case of goods of inferior quality or that are not the goods ordered, a copy of the invoice, purchase order, contract or other document that shows the goods that were actually ordered; and

  • (d) a copy of the prescribed form verifying the exportation or disposal of the goods.

  • SOR/2006-222, s. 7(F)

Amount of Refund

 The amount of the refund of duties shall be an amount equal to that proportion of the duties paid on the goods that the amount of the refund or credit given by the vendor is of the value for duty of the goods.

PART 11Reduction of Amount of Refund

  •  (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.

  • SOR/2006-222, s. 8(F)

PART 12Refunds Not to Be Granted

 A refund of duties levied on bulk spirits under section 21.1 of the Customs Tariff shall not be paid under the Act to a person in respect of goods subject to those duties to the extent that it can reasonably be regarded that

  • (a) the amount has previously been refunded, remitted or paid to the person or applied against an amount owed by the person under this or any other Act of Parliament; or

  • (b) the person has applied for a refund, payment or remission of the amount under any other Act of Parliament.

  • SOR/2005-213, s. 7

Repeal

 [Repeal]

Coming into Force

 These Regulations come into force on January 1, 1998.

 

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