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: 153132
Business Number: [...]
May 29, 2013
Dear [Client]:
Subject: EXCISE RULING
Application of Excise Tax to [...] Fuel
Thank you for your letter of April 19, 2013 concerning the application of the Excise Tax Act to [...] Fuel.
All legislative references are to the Excise Tax Act and the regulations therein, unless otherwise specified.
Statement of Facts
We understand the following regarding [...] Fuel:
• It is an ethanol-free fuel mixture.
• It consists of [...].
• It is specifically formulated for use in equipment such as [...].
• It is used by both professional landscapers and homeowners.
• [...].
• [...].
• [...] proposes to import the product into Canada from one of their distribution centres in [...][Country X].
• For importation into Canada, it will be packaged in [...].
Ruling Requested
You would like to know whether your [...] fuel product would be subject to federal excise tax upon importation into Canada.
Ruling Given
Based on the facts set out above, we rule that [...] Fuel would be subject to federal excise tax at the rate applicable to gasoline (currently 10¢ per litre) upon importation into Canada.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Goods and Services Tax Rulings. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal, that no future change to the Excise Tax Act, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
Explanation
Subsection 2(1) of the Excise Tax Act defines "gasoline" as meaning "gasoline type fuels for use in internal combustion engines other than aircraft engines."
The products for which [...] Fuel was designed, [...], typically use internal combustion engines in their operation. In the documentation submitted with your request, [...] describes its product as [...]. The documentation goes on to tout one of the benefits of the product as [...]. The fuel used to power such devices would therefore meet the definition of "gasoline" contained in the Excise Tax Act, as they are gasoline type fuels for use in combustion engines other than aircraft engines.
Accordingly, Subsection 23(1) - Tax on various articles at schedule rates - states that "...whenever goods mentioned in Schedule I are imported...and delivered to a purchaser of those goods, there shall be imposed, levied and collected, in addition to any other duty or tax that may be payable under this or any other law, an excise tax in respect of the goods at the applicable rate set out in the applicable section of that Schedule...". The current rate of applicable excise tax specified in Schedule I, Subsection 9(a), is 10¢ per litre of gasoline.
Finally, Subsection 23(2) - By whom and when tax is payable - states that "Where goods are imported, the excise tax imposed by subsection (1) shall be paid in accordance with the Customs Act by the importer, owner or other person liable to pay duties under that Act...". Accordingly, at the time the goods were imported, the federal excise tax of 10¢ per litre would be payable then by the proposed importer [...].
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 957-1140.
Yours truly,
Neil Varan
Excise Taxes and Other Levies Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
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