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.
Excise and GST/HST Rulings Directorate
320 Queen Street,
20th floor, Tower A, Place de Ville
Ottawa, ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: # 109786
Attention: XXXXX
October 16, 2009
Dear XXXXX:
Subject:
_Excise Interpretation
Federal Excise Tax - Diesel - Foreign Vessels
Thank you for your letter of XXXXX concerning the application of the Excise Tax on fuel for research vessels operating on the continental shelf of Canada, and potential amendments to the Ships Stores Regulations that could allow for an exemption for certain classes of vessels operating "outside of Canada", in International waters. I apologize for the delay in replying.
In XXXXX, you requested a ruling as to whether diesel fuel could be purchased without payment of excise tax for seismic vessels working on the continental shelf. The subsequent ruling stated that seismic vessels were determined by Customs Import Process Division to be "service ships" for purposes of the Ships' Stores Regulations (SSRs). As a result, seismic vessels are not entitled to purchase diesel fuel or other petroleum products as ships stores.
The Schedule to the Ships' Stores Regulations designates certain classes of goods as ships' stores where they are used on qualifying conveyances. Such classes of goods are generally eligible for relief from the duties and taxes normally imposed. The current list of goods eligible for exemption includes "petroleum products" and "diesel fuel". The object of the proposed regulatory amendments are to amend the Schedule to the Regulations such that renewable fuels will be eligible for relief from the duties and excise taxes that would otherwise apply.
Our findings are that the addition of a specific type of vessel to allow for an exemption would not fall within the scope of the current proposed amendments. However, I have forwarded your correspondence to XXXXX of the Regulations, Remissions and Delegations Section for consideration for any future amendments.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 957-4138.
Yours truly,
Nathalie Robitaille
Excise Taxes and Other Levies Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
XXXXX
UNCLASSIFIED
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