Goods Imported and Exported Refund and Drawback Regulations

These Regulations may be cited as the Goods Imported and Exported Refund and Drawback Regulations.

In these Regulations, Act means the Customs Tariff; beer means beer or malt liquor as defined in section 4 of the Excise Act; Crown corporation means a corporation named in Schedule II or Schedule III to the Financial Administration Act; 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.

PART I Drawback Application

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.

Circumstances in Which an Application for Drawback May Be Made

An application for a drawback under this Part may be made where:

• the goods were exported or deemed to have been exported before the application for drawback is made; and


• the 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. Similarly, 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 are:

• registered in any country;


• used exclusively for the laying and repairing of oceanic telegraph cables outside Canada; and


• proceeding on an ocean voyage outside Canada.

For the purposes of paragraph 89(3)(g) of the Act, goods are used or destined for use where they:

• are 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 with:
  
  
  • a project undertaken jointly by the Government of Canada and the government of a country that is party to the Canada–United States–Mexico Agreement, or
  
  
  • an undertaking, located in Canada, of the government of a country that is party to the Canada–United States–Mexico Agreement; and
  
  
  
  


• are or will become the property of the government of a country that is party to the Canada–United States–Mexico Agreement.

Persons Who May Claim a Drawback

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.

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.

Goods of the Same Class

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 be:

• used interchangeably in the processing of goods in Canada;


• directly consumed or expended interchangeably in the processing in Canada of goods.

Similarly, 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 of:

• fibres that fall within one class set out in Schedule I;


• fibres that do not fall within one class set out in Schedule I, if:
  
  
  • any particular class set out in that Schedule within which fall fibres of which the domestic textile fabric is composed
  
  
  • represents less than five per cent of the weight of the domestic textile fabric, and
  
  
  • the 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,

• the 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.

For the purposes of paragraph 89(1)(a) of the Act, imported goods will be considered to be in the same condition after they:

• undergo 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 for:
  
  
  • the development or production, other than as plant equipment, of goods to be exported,
  
  
  • display or demonstration; or
  
  
  
  


• in the case of reusable containers, are used in the international transportation of goods.

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 of:

• imported 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; or


• imported 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.

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 that:

• the amount has previously been refunded, remitted, applied or paid to that person under the Act or any other Act of Parliament; or


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

These Regulations may provide relief from duties paid on imported goods by allowing exporters to claim a drawback.