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: 161082
Dear [Client]:
Subject: GST/HST RULING
Value of temporary importation of leased bus and trailer
Thank you for your fax of [mm/dd/yyyy], 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 bus and a trailer.
The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 14% in Prince Edward Island and 15% in Nova Scotia. 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 bus and trailer from […] (the “Lessor”), a non-resident person with whom the Lessee deals at arm’s length:
Bus 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 bus and trailer will be imported at […], on [mm/dd/yyyy] and will be exported on [mm/dd/yyyy].
* The total number of months that the bus and trailer are 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 bus 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 bus for each month or part of a month that the bus remains in Canada, plus any remaining duties payable in respect of the bus. This authorization will expire on [mm/dd/yyyy], if the bus 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.
The trailer is subject to tax pursuant to section 212 of the ETA at the time of importation at […], and it does not qualify as a non-taxable importation pursuant to Schedule VII to the ETA or pursuant to the Non-Taxable Imported Goods (GST) Regulations. There is also no relief provided under the Value of Imported Goods (GST/HST) Regulations.
A copy of this letter should be provided to the Canada Border Services Agency. Please contact the border officer 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 613-954-5124. 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,
Angela Stachowski
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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