Criteria for the Application of the Prescribed Rate of Interest Levied as a Result of Decisions under Sections 34 and 58 to 94 of the Customs Act or the Provisions of Part II of the Customs Tariff
(As specified by the Minister)
1. Where the importer, of his own volition, makes a voluntary amendment prior to any action being initiated by the Department and pays any additional duty owing.
2. Where specific information (see Note 1), on matters subject to interpretation (see Note 2), was not previously provided to the importer or his agent, and was not available in the public domain (see Note 3) which gives rise to the importer not providing the correct tariff classification, origin or value for duty information.
3. Where the action giving rise to the interest was as a result of a Certificate of Origin that was reasonably relied on but later was found to be invalid.
4. Where importations are made within 30 days of the first departmental decision made on a particular subject or issue, for example tariff classification or value for duty.
5. Where the importer requests a re-determination, re-appraisal or an appeal of an assessment or re-assessment and fails to provide acceptable security within 30 days but does so within 90 days. The prescribed rate of interest will apply for the entire period between the date of the Detailed Adjustment Statement (DAS) and the date security is provided.
6. Where an assessment or re-assessment of duties and taxes results in a substantial amount of money owing and the importer, who is unable to pay the amount at one time, negotiates a deferred payment plan and honours it.
7. Where the importation is non-commercial, that is, an importation for other than sale, commercial, industrial, occupational, institutional or other like use.
Notes: 1. This refers to information which is directly germane to the tariff classification, the value for duty or the origin of goods that are the subject of the importation at issue. Such information would normally be obtained from sources that are not in the public domain, such as departmental rulings, departmental opinions, previous determinations, appraisals, re-determinations and re-appraisals.
2. This refers to situations where no clear guidance has been issued to the importer and none is available within the public domain. For example, it is sometimes a matter of interpretation as to whether or not a "royalty payment" is to be included in the value for duty. However, this rule would not apply to the misclassification of an imported product where common sense ought to apply, for example a diamond ring cannot be classified under the tariff item for automotive piston rings.
3. This refers to information which has been published for dissemination to the public on matters relating to compliance with Customs legislation. This would include, but is not necessarily limited to, Customs Notices, D-Memoranda, Canadian International Trade Tribunal decisions, Court decisions, statutes and regulations published in Part I, II or III of the Canada Gazette and other relevant Government of Canada publications.
