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 and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 179839
Dear [Client]:
Subject: GST/HST RULING
Value of temporary importation of leased aircraft
Thank you for your [correspondence] of September 27, 2016, in which you request authorization for partial relief from the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) with respect to the importation of a leased aircraft.
The HST applies in the participating provinces at the following rates: 13% in Ontario; 14% in Prince Edward Island; and 15% in New Brunswick, Newfoundland and Labrador and Nova Scotia. The Government of Prince Edward Island has proposed to increase the rate of the HST in that province from 14% to 15% effective October 1, 2016. The GST applies in the rest of Canada at the rate of 5%.
We understand that:
* […] (the “Lessee”) has entered into an agreement to lease the following aircraft from […] (the “Lessor”), a non-resident person with whom the Lessee deals at arm’s length:
Aircraft Type Model Number Serial Number Registration Number
[…] […] […] […]
* The lease agreement is for a period beginning on [mm/dd/yyyy] and ending on [mm/dd/yyyy].
* The aircraft will be imported at […] Airport, […][City 1] on [mm/dd/yyyy] and will be exported on [mm/dd/yyyy].
* The total number of months that the aircraft is to be held in Canada by the Lessee under a lease with the Lessor will not exceed 24 months.
Based on the information provided as set out above, authorization is hereby granted to determine the value of the imported aircraft under subsection 215(2) of the Excise Tax Act and section 14 of the Value of Imported Goods (GST/HST) Regulations, as 1/60th of the value for duty of the aircraft for each month or part of a month that the aircraft remains in Canada, plus any remaining duties payable in respect of the aircraft. This authorization will expire on [mm/dd/yyyy] if the aircraft is not imported on or before that date. Any request for an extension to the authorization period should be submitted to this office for approval prior to the expiry date of the authorization.
In order to qualify for partial relief pursuant to section 14 of the Value of Imported Goods (GST/HST) Regulations, an imported conveyance must be exported on or before the earlier of the day that is 24 months after the day on which the conveyance is imported, and the day on which the lease is terminated. Also, if the conveyance is imported more than once, the cumulative number of months in the periods throughout which the conveyance is held in Canada by the lessee under a lease with the lessor must not exceed 24 months.
The importer is required to meet the Customs requirements as outlined in Customs Memorandum D8-1-1 Temporary Importation (Tariff Item No. 9993.00.00) Regulations with respect to the processing and control of temporary import documents and export documentation and procedures.
Please contact the Telephone Reporting Centre (TRC) of the Canada Border Service Agency at 1-888-226-7277 to get authorization from the CBSA prior to the importation of the aircraft and for additional information regarding import procedures and export requirements.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-670-9891. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Kevin W. Smith
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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