27 July 2006 GST/HST Ruling 81986 - Single Servings of Unflavoured Milk

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:

Thank you for your fax XXXXX in which you request authorization for partial relief from the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) with respect to the importation of a leased aircraft.

Effective July 1, 2006, the rate of the GST has been reduced from 7% to 6% and the rate of the HST from 15% to 14%. The new rates apply to supplies for which the GST/HST is paid on or after July 1, 2006, without having become payable before that date. Specific transitional rules apply to certain supplies, for example, real property. For more information on the transitional rules for the reduction of the GST/HST rate, please refer to Reduction in the Rate of the GST/HST - Questions and Answers (http://www.cra-arc.gc.ca/agency/budget/2006/gstrateqa-e.html) on the CRA Web site.

We understand that:

•   XXXXX (the "Lessee") has entered into an agreement to lease the following aircraft from XXXXX (the "Lessor"), a non-resident person with whom the Lessee deals at arm's length:

Aircraft Type

Model Number

Serial Number

Registration Number

XXXXX
XXXXX
XXXXX
XXXXX

•   The lease agreement is for a period beginning on XXXXX and ending on XXXXX.

•   The aircraft will be imported at XXXXX on XXXXX and will be exported on or before XXXXX.

•   The total number of months that the aircraft is to be held in Canada by the Lessee under a lease with the Lessor will not exceed 24 months.

Based on the information provided as set out above, authorization is hereby granted to determine the value of the imported aircraft under subsection 215(2) of the Excise Tax Act and section 14 of the Value of Imported Goods (GST/HST) Regulations, as 1/60th of the value for duty of the aircraft for each month or part of a month that the aircraft remains in Canada, plus any remaining duties payable in respect of the aircraft. This authorization will expire on XXXXX if the aircraft is not imported on or before that date.

In order to qualify for partial relief pursuant to section 14 of the Value of Imported Goods (GST/HST) Regulations, an imported conveyance must be exported on or before the earlier of the day that is 24 months after the day on which the conveyance is imported, and the day on which the lease is terminated. Also, if the conveyance is imported more than once, the cumulative number of months in the periods throughout which the conveyance is held in Canada by the lessee under a lease with the lessor must not exceed 24 months.

The importer is required to meet the Customs requirements as outlined in Customs Memorandum D8-1-1 Temporary Importation (Tariff Item No. 9993.00.00) Regulations with respect to the processing and control of temporary import documents and export documentation and procedures.

A copy of this letter has been sent to the Canada Border Services Agency, to the attention of XXXXX, District Program Services Officer for the XXXXX of the CBSA in XXXXX. Please contact XXXXX prior to the importation of the aircraft for additional information regarding import procedures and export requirements.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 952-8812.

Yours truly,

Jeff Frobel
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

2006/05/29 — RITS 44287 — New Residential Rental Property Rebate for XXXXX