39. 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.

• 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.

40.1 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.

41. The Refund of Duties RegulationsFootnote ¹ are repealed.

• Return to footnote ¹SOR/86-945

42. These Regulations come into force on January 1, 1998.