16 March 2006 GST/HST Ruling 78140 - Hemp Protein Powder and Hemp Seed Oil

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 XXXXX (and attachments) concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the importation of XXXXX.

All legislative references are to the Excise Tax Act (ETA) and the regulations therein, unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. XXXXX is located in XXXXX and is in the business of importing food items.

2. XXXXX imports XXXXX from XXXXX.

3. The XXXXX imported by XXXXX are typically baked or fried and are available in various flavours.

4. You have provided us with samples and descriptions of the various types of XXXXX that your firm typically imports. The following are four representative types:

XXXXX.

XXXXX.

XXXXX.

XXXXX

5. The imported XXXXX are pre-packaged in boxes containing XXXXX pieces and are sold to consumers in the same format.

Ruling Requested

You request confirmation that the importation of XXXXX, pre-packaged in quantities of six or more, is a non-taxable importation pursuant to section 213 of the ETA and Schedule VII to the ETA.

Ruling Given

We rule that the importation of XXXXX, as described in the four types above, is a non-taxable importation for GST/HST purposes pursuant to section 213 of the ETA and section 6 of Schedule VII to the ETA. As such, GST/HST Status Code 59 may be used in the Canada Customs Coding Form to indicate that the importation is non-taxable.

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 changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, all goods imported into Canada are taxable for GST/HST purposes unless specifically relieved under section 213 of the ETA. Importations of goods relieved of tax under section 213 of the ETA are set out in Schedule VII to the ETA.

Section 6 of Schedule VII to the ETA provides for the non-taxable importation of property the supply of which is zero-rated pursuant to section 1 of Part III of Schedule VI to the ETA. The supply of XXXXX, as described in the four types above, for sale to consumers in quantities of six or more single servings is considered a zero-rated supply pursuant to paragraph 1(m) of Part III of Schedule VI to the ETA.

For your convenience, find enclosed a copy of GST/HST Memorandum 1.4, Goods and Services Tax Rulings.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 952-4294.

Yours truly,

Donato Licursi
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

2006/03/31 — RITS 78332 — Tax Paid in Error