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, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 178671
[Addressee]
Dear [Client]:
Subject: Request for Ruling
[…][Approved formulation]
Thank you for your fax of July 21, 2016 […] and the additional information received on [mm/dd/yyyy]. Included with the fax was […][the] Material Safety Data Sheet (MSDS) for […][Product X] – Ethanol that […][the Company] wants to import into Canada.
Your letter requested that the Canada Revenue Agency (CRA) determine whether [Product X] is an approved formulation under the Excise Act, 2001 and identify the Excise implications of importing the product.
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, CRA systems, and attachments is as follows:
1. [The Company] is located […][in Canada].
2. [The Company] does not hold a licence or registration under the Act.
3. [The Company] wants to import [Product X] from […][Country A] in five litre plastic containers to clean and/or disinfect […].
4. [Product X] is manufactured by […][ACo] of [Country A] and is comprised of 93% ethanol and 1 to 5% butanone.
RULING REQUESTED
You requested a ruling on whether the specified product, [Product X], would meet the definition of “approved formulation” in section 2 and the Excise implications of importing this product into Canada.
RULING GIVEN
Based on the facts set out above and advice provided by the Science and Engineering Directorate (SED) of the Canada Border Services Agency, we rule that product [Product X], comprised of 93% ethanol and 1 to 5% butanone 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, [the Company] may import […][Product X] 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) 670-7280 or Cosette Ayoub at (613) 670-7277.
Yours truly,
Tim Krawchuk
Manager, Excise Duty Operations – Alcohol
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
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