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
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
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Case Number: 112838
Attention: XXXXX
May 14, 2009
Subject:
GST/HST INTERPRETATION
Importation of Parfait Dessert Products
Dear XXXXX
Thank you for your letter of XXXXX concerning the application of the Goods and Services Tax (GST) to importation of refrigerated parfait products.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
We understand the two products to be the following.
1. XXXXX in a XXXXX gram container. This is a multi-serving, refrigerated dessert product consisting of XXXXX. The product is manufactured by XXXXX
2. XXXXX in a XXXXX gram container. This is a multi-serving, refrigerated dessert product consisting of XXXXX. The product is manufactured by XXXXX
Interpretation Requested
You would like to know whether these products are non-taxable importations pursuant to section 6 of Schedule VII of the ETA.
Interpretation Given
Based on the information provided, the importation of the refrigerated parfait products in XXXXX gram containers is a non-taxable importation pursuant to section 6 of Schedule VII to the ETA.
Pursuant to section 6 of Schedule VII to the ETA, goods the supply of which is included in any of Parts I to IV and VIII of Schedule VI, other than section 3.1 of Part IV of that Schedule are non-taxable importations.
Section 1 of Part III of Schedule VI zero-rates supplies of food or beverages for human consumption ("basic groceries") and sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such foods or beverages, unless one of the exceptions set out in paragraphs 1(a) through 1(r) applies.
Paragraph 1(n) of Part III of Schedule VI excludes from zero-rating the supply of beverages (other than unflavoured milk) or pudding, including flavoured gelatine, mousse, flavoured whipped dessert product or any other products similar to pudding, unless one of the exceptions set out in subparagraphs 1(n)(i) through 1(n)(iii) applies. The exceptions in paragraph 1(n) are as follows:
(i) when prepared and prepackaged specially for consumption by babies,
(ii) when sold in multiples, prepackaged by the manufacturer or producer, of single servings, or
(iii) when the cans, bottles or other primary containers in which the beverages or products are sold contain a quantity exceeding a single serving;"
According to GST/HST Memoranda Series 4.3 Basic Groceries, for GST/HST purposes, a single serving for puddings and similar products includes all servings weighing less than 425 grams.
The products are considered to be "other products similar to pudding" under paragraph 1(n) of Part III of Schedule VI.
As the products are sold in quantities exceeding a single serving, the exception in subparagraph 1(n)(iii) of Part III of Schedule VI applies to the products. The products are considered zero-rated basic groceries and are thereby considered non-taxable importations pursuant to section 6 of Schedule VII.
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, Excise and GST/HST Rulings and Interpretations Service, do not bind the Canada Revenue Agency with respect to a particular situation. Future changes to the ETA, regulations, or our interpretative policy could affect this interpretation.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-957-8220. 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,
Kevin W. Smith
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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