Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 20th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 179397
Dear [Client]:
Subject: EXCISE RULING
Imports of Approved Formulations
Thank you for your letter of August 25, 2016. Included with your letter were Material Safety Data Sheets (MSDS) for the […] alcohol-based product Reagent Alcohol, […][XYZ] that […][Company A] distributes in Canada.
Your letter requests that the Canada Revenue Agency (CRA) consider product [XYZ] as an approved formulation.
All legislative references are to the Excise Act, 2001 (Act) or its regulations unless otherwise specified.
STATEMENT OF FACTS
Our understanding of the facts from your letter, the related MSDS and CRA records is as follows:
1. [Company A] is located at […] and its importer account number is […].
2. […].
3. The alcohol-based product specified in your letter and detailed in […] MSDS is Reagent Alcohol, product [XYZ], and comprised of […].
4. […].
5. […].
RULING REQUESTED
You requested a ruling on whether the specified product, [XYZ], would meet the definition of “approved formulation” in section 2 of the Act.
RULING GIVEN
Based on the facts set out above and advice previously provided by the Science and Engineering Directorate, we rule that the product Reagent Alcohol,[XYZ],comprised of […] is an “approved formulation” under paragraph (b) of the definition of that term in section 2 of the Act.
In accordance with the qualifications and guidelines set out in Excise and GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the CRA is bound by the ruling given in this letter provided that none of the issues discussed are currently under audit, objection, or appeal; no future changes to the Excise Act, 2001, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
EXCISE DUTY IMPLICATIONS
As an approved formulation, the product is excluded from the definition of spirits in section 2. Therefore, [Company A] may import it without requiring a licence under the Act and the goods are not subject to the additional duty equal to excise duty.
If you have any questions or require any clarification on the above matter, please call me at
(613) 957-8642 or Michel Perrier, at (613) 941-7222.
Yours truly,
Joy Piepjohn
Manager, Excise Duty Operations – Alcohol
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
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