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.
XXXXX
XXXXX
XXXXX
XXXXX
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 123365
Attention: XXXXX
May 20, 2010
Dear XXXXX:
Subject:
EXCISE RULING
Request for Ruling - Excise Tax Status of C5+ Condensate
Thank you for your letter of XXXXX concerning the application of the Excise Tax Act (ETA) to the operations of your client, XXXXX. In your letter, you have requested ruling as to whether C5+ condensate would be considered as gasoline and subject to the federal excise tax (FET) under Part III of the ETA.
Statement of Facts
Based on the information provided in your letter, the following is our understanding of the facts:
1. C5+ condensate, also known as natural gasoline, is a gas liquid with a vapour pressure intermediate between condensate and liquefied petroleum gas. This liquid hydrocarbon mixture is recovered at normal pressure and temperature and is much more volatile and unstable than commercial gasoline.
2. XXXXX imports C5+ condensate into Canada.
3. The imported C5+ condensate is sold to Canadian customers to be used as a diluent into heavy crude and bitumen production. The C5+ condensate acts as a "thinner" to modify the viscosity and density of the heavy crude and bitumen to meet pipeline transfer specifications.
4. The imported C5+ condensate is intended for use other than in internal combustion engines at the time of importation or sale within Canada.
Ruling Requested
You would like to know whether the importation or sale of C5+ condensate is considered to be gasoline and subject to FET.
Ruling Given
Based on the facts set out above, we rule that C5+ condensate would not be considered as gasoline under subsection 2(1) of the ETA and therefore, is not subject to FET.
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 ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 954-5899.
Yours truly,
Darren Weiner
Excise Taxes and Other Levies Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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