Customs Tariff (S.C. 1997, c. 36)

Marginal note:Goods of tariff item No. 9805.00.00

84 Goods that, but for the fact that their value for duty as determined under section 46 of the Customs Act exceeds the value specified under tariff item No. 9805.00.00, would be classified under that tariff item, shall be classified under Chapters 1 to 97 and their value for duty reduced by that specified value.

Marginal note:Goods of tariff item No. 9816.00.00

85 Goods that, but for the fact that their value for duty as determined under section 46 of the Customs Act exceeds the value specified under tariff item No. 9816.00.00, would be classified under that tariff item, shall be classified under Chapters 1 to 97 and their value for duty reduced by that specified value.

Marginal note:Regulations

86 The Governor in Council may, on the recommendation of the Minister, make regulations respecting the conditions under which, or circumstances in which, sections 83 to 85 apply.

Marginal note:Goods of tariff item No. 9971.00.00

• 87 (1) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the Iceland Tariff, the Norway Tariff or the Switzerland–Liechtenstein Tariff is the value of the repairs or alterations made to those goods in Iceland, Norway, Switzerland or Liechtenstein, as the case may be.

• Marginal note:Limitation

  (2) Subsection (1) ceases to have effect on the day before the day that is 15 years after the day on which this subsection comes into force.

• Marginal note:Goods of tariff item No. 9971.00.00

  (3) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the Korea Tariff is the value of the repairs or alterations made to those goods in Korea.

• Marginal note:Limitation

  (4) Subsection (3) ceases to have effect on the day before the day that is 10 years after the day on which this subsection comes into force.

• Marginal note:Goods of tariff item No. 9971.00.00 — EU

  (5) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the Canada–European Union Tariff is the value of the repairs or alterations made to those goods in an EU country or other CETA beneficiary.

• Marginal note:Limitation

  (6) Subsection (5) ceases to have effect on January 1 of the seventh year after the year in which this subsection comes into force.

• Marginal note:Goods of tariff item No. 9971.00.00 — CPTPP country

  (7) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to a CPTPP tariff is the value of the repairs or alterations made to those goods in a CPTPP country.

• Marginal note:Goods of tariff item No. 9971.00.00 – U.K.

  (8) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the United Kingdom Tariff is the value of the repairs or alterations made to those goods in a CUKTCA beneficiary.

• Marginal note:Limitation

  (9) Subsection (8) ceases to have effect on January 1, 2024.

Ethno-cultural Groups

Marginal note:Goods of tariff item No. 9937.00.00

88 A group desiring to be recognized as an ethno-cultural group for the purposes of tariff item No. 9937.00.00 shall submit an application to the Minister of Public Safety and Emergency Preparedness supported by evidence that the group satisfies the criteria set out in that tariff item.

Duty Deferral

Marginal note:Relief

• 89 (1) Subject to subsection (2), sections 95, 98.1 and 98.2 and any regulations made under section 99, if an application for relief is made within the prescribed time, in accordance with subsection (4), by a person of a prescribed class, relief may be granted from the payment of duties that would but for this section be payable in respect of imported goods that are

  • (a) released and subsequently exported in the same condition in which they were imported;

  • (b) released, processed in Canada and subsequently exported;

  • (c) released and directly consumed or expended in the processing in Canada of goods that are subsequently exported;

  • (d) released, if the same quantity of domestic or imported goods of the same class is processed in Canada and subsequently exported; or

  • (e) released, if the same quantity of domestic or imported goods of the same class is directly consumed or expended in the processing in Canada of goods that are subsequently exported.

• Marginal note:Exception

  (2) Relief of the duties or taxes levied or imposed under sections 21.1 to 21.3, the Excise Act, 2001 or the Excise Tax Act may not be granted under subsection (1) on tobacco products, vaping products or designated goods.

• Marginal note:Deemed exportation

  (3) For the purposes of subsection (1), goods are deemed to have been exported if they are

  • (a) designated as ships’ stores by regulations made under paragraph 99(g) and supplied for use on board a conveyance of a class prescribed under that paragraph;

  • (b) used for the equipment, repair or reconstruction of ships or aircraft of a class prescribed under paragraph 99(d);

  • (c) delivered to a telegraph cable ship of a class prescribed under paragraph 99(d);

  • (d) supplied for exportation to a department or agency of, or a corporation owned, controlled or operated by, the Government of Canada or the government of a province, that is designated by the Minister of Public Safety and Emergency Preparedness;

  • (e) placed in a bonded warehouse or duty free shop for exportation, or placed in a bonded warehouse for use in accordance with paragraph (a) or (c);

  • (f) transferred from a person who has been issued a certificate under section 90 to another person who has been issued such a certificate; or

  • (g) used or destined for use in any other prescribed manner.

• Marginal note:Application

  (4) An application for relief under subsection (1) must be in a form and contain information satisfactory to the Minister of Public Safety and Emergency Preparedness.

Marginal note:Certificate

• 90 (1) Subject to regulations made under paragraph 99(e), the Minister of Public Safety and Emergency Preparedness may issue a numbered certificate to a person of a prescribed class referred to in section 89.

• Marginal note:Amendment, suspension, etc., of certificate

  (2) The Minister of Public Safety and Emergency Preparedness may, subject to regulations made under paragraph 99(e), amend, suspend, renew, cancel or reinstate a certificate issued under subsection (1).

• Marginal note:Release of goods

  (3) Goods in respect of which relief is granted under section 89 may be released without payment of the duties relieved under that section if the number of the certificate issued under subsection (1) is disclosed when the goods are accounted for under section 32 of the Customs Act and the certificate is in force at that time.

Marginal note:Minister may issue licence for operation of bonded warehouse

• 91 (1) If the Minister of Public Safety and Emergency Preparedness considers it advisable, that Minister may issue a licence for the operation of any place as a bonded warehouse to a person who meets the qualifications prescribed by regulations made under subparagraph 99(f)(i) and any requirements or conditions set out in this Act, the Customs Act and the regulations under both Acts respecting the operation of that place.

• Marginal note:Licence restriction

  (2) Subject to regulations made under paragraph 99(f), the Minister of Public Safety and Emergency Preparedness may impose in a licence issued under subsection (1) any restriction as to the classes of goods that may be received, or the circumstances under which goods may be received, in the bonded warehouse.

• Marginal note:Amendment of licence

  (3) The Minister of Public Safety and Emergency Preparedness may, subject to regulations made under paragraph 99(f), amend, suspend, renew, cancel or reinstate a licence issued under subsection (1).

• Marginal note:Security

  (4) A person to whom a licence is issued under subsection (1) shall, at the request of the Minister of Public Safety and Emergency Preparedness, provide security, of a type and in accordance with the conditions that may be prescribed, in an amount satisfactory to that Minister.

Marginal note:Duties not payable in respect of goods in bonded warehouse

• 92 (1) Subject to section 31 of the Customs Act and to any regulations made under paragraph 99(f) or section 100, if a bonded warehouse licence has been issued under section 91, duties imposed on goods that are delivered to the bonded warehouse are not payable until the goods are removed from the bonded warehouse.

• Marginal note:Relief on goods removed from bonded warehouse

  (2) Relief shall be granted from the payment of duties that, but for this section, would be payable in respect of goods removed from a bonded warehouse that are

  • (a) subject to section 95, exported directly from the bonded warehouse; or

  • (b) designated as ships’ stores by regulations made under paragraph 99(g), supplied for use on board a conveyance of a class prescribed by regulations under that paragraph and exported.

• Marginal note:Exception

  (3) This section does not apply to any duty imposed under the Excise Act, 2001 in respect of manufactured tobacco that is manufactured in Canada and imported manufactured tobacco that is stamped in accordance with that Act.

Marginal note:Submission of evidence

93 If relief has been granted under section 89 or 92, the Minister of Public Safety and Emergency Preparedness may require the submission of evidence satisfactory to that Minister for the purpose of administering section 95.

Marginal note:Definition of customs duties

• 94 (1) In sections 95, 96, 98.1 and 98.2, customs duties means customs duties imposed under Part 2, other than

  • (a) additional customs duties levied under sections 21.1 to 21.3; or

  • (b) surtaxes or temporary duties imposed under Division 4 of that Part.

  • (c) [Repealed, 2011, c. 24, s. 131]

• Marginal note:For greater certainty

  (2) For greater certainty, in sections 95, 96, 98.1 and 98.2, customs duties does not include any duties or taxes levied or imposed on imported goods under the Excise Tax Act, the Special Import Measures Act, the Excise Act, 2001 or the Select Luxury Items Tax Act.

Marginal note:Repayment of relief

• 95 (1) If relief is granted under section 89 or 92 in respect of goods that are subsequently exported to the United States or Mexico,

  • (a) the person who exported the goods shall, within 60 days after exporting the goods, report the exportation in the prescribed manner to an officer at a customs office and pay the portion of the duties relieved under that section that are customs duties; and

  • (b) subject to subsections (4) to (6), notwithstanding any other provision of this Part, the person who exported the goods and any other person who was granted the relief are, from the time of exporting the goods, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the portion of the duties relieved under that section that are customs duties.

• Marginal note:Debt to Her Majesty

  (2) An amount referred to in subsection (1), while it remains unpaid, is deemed to be a debt owing to Her Majesty in right of Canada under the Customs Act.

• (3) [Repealed, 2020, c. 1, s. 198]

• Marginal note:Reduction of amount repayable

  (4) The amount of the customs duties levied under subsection (1) shall be reduced in accordance with subsection (5) if, within 60 days after the goods are exported, evidence satisfactory to the Minister of Public Safety and Emergency Preparedness is submitted to that Minister that customs duties in respect of the exportation of the goods have been paid to the government of the United States or of Mexico.

• Marginal note:Amount of reduction

  (5) Subject to subsection (4), the amount of customs duties levied under subsection (1) shall be reduced by the amount of customs duties paid to the government of the United States or of Mexico or, if that amount is equal to or greater than the amount of the customs duties levied, the amount levied shall be reduced to zero.

• Marginal note:Exceptions

  (6) Subsection (1) and sections 96 to 98 do not apply in respect of

  • (a) imported goods that originate in the United States or Mexico that are

    • (i) subsequently exported to the United States or Mexico,

    • (ii) used as materials in the production of goods that are subsequently exported to the United States or Mexico, or

    • (iii) substituted by identical or similar goods used as materials in the production of other goods that are subsequently exported to the United States or Mexico;

  • (b) imported orange or grapefruit concentrates used in the manufacture or production of orange or grapefruit products of heading No. 20.09 that are exported to the United States;

  • (c) imported goods used as materials to make apparel that is exported to the United States and subject to the Most-Favoured-Nation Tariff in accordance with the laws of that country, or imported goods substituted by identical or similar goods used as materials to make such apparel;

  • (d) imported goods used as materials in the production of, or for which identical or similar goods are substituted and used as materials in the production of, quilted cotton piece goods and quilted man-made piece goods provided for under subheading 5811.00 and furniture moving pads provided for under subheading 6307.90, that are exported to the United States and subject to the Most-Favoured-Nation Tariff in accordance with the laws of that country;

  • (e) imported goods that are subsequently exported in the condition in which they were imported;

  • (f) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been

    • (i) placed in a duty free shop for exportation,

    • (ii) designated as ships’ stores by regulations made under paragraph 99(g),

    • (iii) supplied for use on board a conveyance of a class prescribed by regulations made under paragraph 99(g), or

    • (iv) used or destined for use, in such other manner as may be prescribed, solely and exclusively in conjunction with a project undertaken jointly by the Government of Canada and the government of the United States or of Mexico, or with a project in Canada undertaken by the government of the United States or of Mexico and destined to become the property of the government of the United States or of Mexico; and

  • (g) such other imported goods or any imported goods used as materials, or any class of such goods, as may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the government of the United States or of Mexico relating to the application of this subsection.

• Marginal note:Definitions of identical or similar goods and used

  (7) In this section, identical or similar goods and used have the same meanings as in paragraph 7 of Article 2.5 of the Canada–United States–Mexico Agreement.

• Marginal note:Definition of materials

  (8) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients.