12 April 2006 Excise Interpretation 78148 - Industrial Digital Clocks

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.

Dear XXXXX:

This is in reply to your facsimile message XXXXX in which you ask about the application of excise tax to imported industrial digital clocks. Our comments are set out below.

Statement of Facts

1. Your company imports industrial digital clocks, having a duty paid value of over $50, from the United States.

2. These clocks are designed to be a component in school public address and clock systems. Essentially, they are the timing device for these systems. They are not designed to be hung on a wall and show the time.

Interpretation Requested

Are these clocks subject to excise tax on importation into Canada?

Interpretation Given

The clocks about which you inquire are not subject to excise tax on importation into Canada, since they are not "adapted to household or personal use".

The foregoing comments represent our views with respect to the subject matter of your letter. Proposed amendments to the ETA, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of GST/HST Memorandum series, do not bind the Canada Revenue Agency with respect to a particular situation.

If you have any further questions or require clarification of the above matter, please do not hesitate to contact me at telephone number (613) 941-1933.

Yours truly,

Pauline Greenblatt
Rulings Officer
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
Canada Revenue Agency

2006/03/24 — RITS 78343 — Importation of Denatured and Undenatured Alcohol