27 October 2000 GST/HST Ruling 32352 - Exporters of Processing Services - Import Certificate

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Thank you for your letter of August 3, 2000 (with attachments), concerning the application of the Goods and Services Tax (GST) under the Excise Tax Act (the Act) to the transaction(s) described below. I apologize for the lateness of this response.

Statement of Facts

Our understanding of the facts, the transaction(s), and the purpose of the transaction(s) is as follows:

-    XXXXX, manufactures truck mounted concrete mixers.

-    XXXXX customers place orders to acquire concrete mixers, which are to be mounted on the customer's truck chassis that are delivered to XXXXX facility.

-    Once the concrete mixer is mounted on the customer's truck, XXXXX ships the truck back to its customer.

Transaction(s)

-    Specifically, one of XXXXX customers is an unregistered non-resident operating as XXXXXsituated in XXXXX

-    XXXXX places orders with XXXXX to purchase concrete mixers, which are to be mounted on truck chassis that are acquired by XXXXX outside Canada.

-    XXXXX imports XXXXX truck chassis in order to mount the concrete mixers acquired by XXXXX.

-    XXXXX imports the truck chassis under the Deferred Duty Program with an exemption for GST.

In all cases, XXXXX customers own the truck.

Ruling Requested

The Import Certificate issued by the Canada Customs and Revenue Agency (the CCRA) to XXXXX, under the Exporter of Processing Services (EOPS) Program, remains is effect, as XXXXX has no proprietary interest in the concrete mixers or the truck chassis at the time the processing services are performed.

Ruling Given

Based on the facts set out above, we rule that XXXXX does not have any proprietary interest in the goods imported or the processed products and that the Import Certificate issued by the CCRA to XXXXX under the above EOPS Program remains in effect.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to our interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 957-8220.

Yours truly,

Daniel E.B. Chamaillard,
Senior Technical Analyst
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

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