Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
TO:
XXXXX
XXXXX
XXXXX
XXXXX
FROM:
Sharon Kendall
Rulings Officer
Excise Taxes and Other Levies
320 Queen Street, Place de Ville Tower A
Ottawa, Ontario K1A 0L5
CASE NUMBER:
102759
DATE:
April 22, 2008
SUBJECT:
_Excise Interpretation
XXXXX
This is in response to XXXXX inquiry that you forwarded to us on XXXXX regarding the imposition of the Green Levy on a vehicle that was imported into Canada, subsequently exported and is imported back into Canada. We apologize for the delay in responding to your inquiry.
Further to our conversation with XXXXX on XXXXX, we understand that XXXXX. XXXXX was advised that the Green Levy is only charged once.
Interpretation Requested
XXXXX would like to know if the Green Levy could be charged twice on the same vehicle.
Interpretation Given
Based on the information provided, the Green Levy could be charged upon a new vehicle when it is imported and following exportation and subsequent importation, the Green Levy can be charged again when the vehicle is imported back into Canada.
Analysis
Subsection 23(1) of the Excise Tax Act (ETA), subject to subsections (6) to (8), imposes excise tax on items listed in Schedule I to the ETA, at the rate specified in the Schedule.
Subsection 23(2) of the Excise Tax Act (ETA), "where goods are imported, the excise tax imposed by subsection (1) shall be paid in accordance with the provisions of the Customs Act by the importer, owner or other person liable to pay duties under that Act ..."
The Green Levy is a tax that is imposed and payable by the manufacturer or importer at the time vehicles are delivered to a purchaser or imported. The tax is incorporated into the price of the product as it passes from the manufacturer.
The Green Levy does not apply to automobiles that are imported and subsequently exported.
The Green Levy does not apply to automobiles that are manufactured in Canada and exported for sale in other countries.
A vehicle which has been imported and then subsequently exported without use in Canada would not be subject to the tax. A vehicle which has been imported, sold, used, exported and imported back into Canada is subject to the Green Levy upon importation provided the weighted average fuel consumption rating of 13 or more litres per 100 km.
The Green Levy can be charged twice on a vehicle sold and used in Canada and exported to the XXXXX and subsequently imported back into Canada.
The foregoing comments represent our general views with respect to the subject matter of your request. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Goods and Services Tax Rulings, do not bind the Canada Revenue Agency with respect to a particular situation. Future changes to the Excise Tax Act, regulations, or our interpretative policy could affect this interpretation.
Should you require additional information, please do not hesitate to contact me at (613) 954-6720.
UNCLASSIFIED
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