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D3- 6- 0 Memorandum - Railway Rolling Stock, Railway Locomotives and Miscellaneous Railway Equipment Temporarily Imported for Use in International Service and/or Diverted to Domestic Use. Railway Rolling Stock, Railway Locomotives and Miscellaneous Railway Equipment Temporarily Imported for Use in International Service and/or Diverted to Domestic Use.
Ottawa, January 1. This document is also available in PDF (1. Mb) [help with PDF files]In Brief This memorandum replaces the Memorandum D3- 6- 0 dated August 1. It has been revised to denote the following changes: Paragraph 8.
Division and Branch name changes. The Reference page was revised to reflect the Division and Branch name changes. In accordance with the new subsection 6(5) of the Proof of Origin of Imported Goods Regulations paragraph 9 has been added.
In accordance with the new subsection 6(5) of the Proof of Origin of Imported Goods Regulations, paragraphs 3. Appendix J, Lists of Regional Trade Compliance Offices, the Name and contact information for Region of Quebec has changed. This memorandum incorporates the changes resulting from the implementation of the simplified Customs Tariff on January 1, 1. The simplification of the Customs Tariff introduced two new tariff items 9. This memorandum outlines the policy for the temporary importation of foreign railway rolling stock, locomotives and miscellaneous railway equipment under tariff item No.
When reading this memorandum, it is important to note that cross- references in the Excise Tax Act (ETA) to tariff items were not amended at the time of Tariff Simplification in 1. Instead, subsection 1. Customs Tariff, which states that any reference in the ETA to headings, subheadings, tariff items, tariff codes or chapter notes would continue to apply, for Goods and Services Tax (GST) purposes, as if the pre 1. Tariff were still in effect. The Department of Finance announced, in a new release dated October 7, 1. ETA would be proposed as a result of the implementation of the simplified Customs Tariff in 1. However, these proposed changes had not yet been made at the time of the publication of this memorandum.
Consequently, the GST treatment of locomotives, railway rolling stock, and miscellaneous railway equipment temporarily imported for domestic use in Canada did not change with the introduction of tariff item 9. Therefore, one must continue to refer to the terms of the pre- 1.
Order in Council (OIC) P. C. 1. 97. 5- 1. 97. Schedule II to the pre- simplified Customs Tariff) to determine how the GST applies to these temporary importations.
Legislation. Current wording of tariff heading 9. Conveyances or containers of Chapters 8. Tariff item 9. 80. Conveyances, (a) on condition that. Canada with a vehicle licence issued by the appropriate provincial licensing authority; (ii) in the case of aircraft, they comply with the requirements of the Aeronautics Act and any regulations made thereunder; and(iii) in the case of vessels, they comply with the requirements of the Canada Shipping Act and Coasting Trade Act; and(b) on condition that the conveyances. A) of adverse weather conditions; (B) the conveyances are being equipped, reconditioned, reconstructed, refurbished or repaired; (C) the conveyances have a major equipment breakdown; (D) the conveyances are detained under an order of a Canadian court, or under an Act of Parliament or the legislature of a province or any regulation made thereunder; or(E) the delivery of the goods to be loaded on or in the conveyances is delayed.
The conveyances provided for in this tariff item may engage in the transportation of goods from one point in Canada to another point in Canada where: (a) that transportation is incidental to the international traffic of the goods; (b) the transportation does not occur outside the territorial limits of Canada; and(c) the conveyance has not entered Canada for the purpose of an in transit movement through Canada to a point outside of Canada. Tariff item No. 9. Locomotives or railway rolling stock or miscellaneous railway equipment, regardless of tariff treatment entitlement or country of origin, owned or under the control of a railway company in the United States, temporarily engaged in the transportation of goods or passengers from a place in Canada to another place in Canada or imported on a temporary basis for the repair, testing or maintenance of railways in Canada.
The wording of former tariff item 9. Customs Tariff simplification): Foreign- based conveyances of heading No. Chapters 8. 7, 8. Governor in Council may prescribe. Former tariff code 2.
Railway or tramway vehicles of heading No. United States, running upon any line or road crossing the frontier, so long as Canadian locomotives and cars are imported free of customs duties under similar circumstances into the United States, under regulations made by the Minister. The references to Customs Tariff headings 8.
December 3. 1, 1. The legislative references to the Excise Tax Act and its regulations follow. Section 1 of Schedule VII to the Excise Tax Act.
Goods that are classified under heading No. No. 9. 82. 3. 6. 0, 9. Schedule I to the Customs Tariff, to the extent that the goods are not subject to duty under that Act, but not including goods that are classified under tariff item 9. Schedule. …8. Prescribed goods imported in prescribed circumstances and under prescribed terms and conditions.
The prescribing regulations are the Non- taxable Imported Goods (GST/HST) Regulations and the Value of Imported Goods (GST/HST) Regulations. The relevant section of the Non- taxable Imported Goods (GST/HST) Regulations, subsection 3(h), reads as follows: Locomotives, railway rolling stock and vessels imported in circumstances where customs duties have been remitted or removed under.
Railway Rolling Stock (International Service) Remission Order No. Schedule II to the Customs Tariff,(iii) Railway Rolling Stock (International Service) Remission Order No. Railway Rolling Stock (Canadian Domestic Use) Remission Order No. Vessel Duties Reduction or Removal Regulations; The relevant sections of the Value of Imported Goods (GST/HST) Regulations, Section 9, 1. For the purposes of subsection 2. Act, the value of a locomotive or miscellaneous railway equipment imported in circumstances where customs duties are partially remitted under Order in Council P. C. 1. 95. 3- 1. 8/8.
A x B) + Cwhere. A is the value for duty of the locomotive or railway equipment, as the case may be; B is the number of months during which the locomotive or railway equipment, as the case may be, remains in Canada; and. C is the remaining duties payable in respect of the locomotive or railway equipment, as the case may be. For the purposes of subsection 2. Act, the value of railway rolling stock imported for use in international service in circumstances where the Railway Rolling Stock (International Service) Remission Order No. 4 applies and the rolling stock is temporarily diverted (within the meaning of that Order) shall be determined by the formula. A + Bwhere. A is the value of the monthly rental charge for the rolling stock; and. B is the remaining duties payable in respect of the rolling stock. For the purposes of subsection 2.
Act, the value of railway rolling stock that is imported in circumstances where code 2. Schedule II to the Customs Tariff applies, and that becomes subject to customs duties by reason of the temporary use of the rolling stock in Canada, shall be determined by the formula(A x B) + Cwhere. A is the average monthly rental charge for the rolling stock; B is the number of months during which the temporary use in Canada continues; and.
C is the remaining duties payable in respect of the rolling stock. Guidelines and General Information. Definitions. 1. For the purposes of this memorandum, the following definitions apply: "available" means, in respect of any railway rolling stock, that it is available when needed from Canadian production or other Canadian sources in sufficient quantities at a reasonable cost; "duties" means any duties or taxes levied or imposed on imported goods under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act or any other Act of Parliament, but, for the purposes of subsection 3(1), paragraphs 5. Part IX of the Excise Tax Act (i.
Goods and Services Tax (GST))."international commercial transportation" means any transportation resulting in, or intended to result in, the carriage of persons or goods for hire or reward, or any transportation of persons or goods by or on behalf of an enterprise engaged in an activity of financial return, where the persons or goods are conveyed. Canada to a place inside Canada; (b) from a place inside Canada to a place outside Canada; or(c) from a place outside Canada in transit through Canada to another place outside Canada."international service" means the use while loaded or empty of railway rolling stock dispatched on a direct route from a place in Canada to a place in the United States or from a place in the United States to a place in Canada and includes loading and unloading in Canada while on the direct route; "Minister" means the Minister of Public Safety and Emergency Preparedness."miscellaneous railway equipment" means railway track equipment, repair equipment, testing equipment, maintenance equipment and equipment used to maintain rail right of ways."month", for the purpose of calculating the customs duty, is interpreted to consist of the period between a certain date in one month to the corresponding day previous in the following month (in reference to the duties applicable).
For example, if railway rolling stock is diverted to domestic service from January 2. February 2. 0, the period of the diversion would be calculated as one month. A diversion from January 2. February 2. 8, would be considered two months.