18 March 2008 GST/HST Ruling 103269 - XXXXX Beverage XXXXX

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 of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the temporary importation of a television production truck and related television equipment.

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

Effective January 1, 2008, the rate of the GST has been reduced from 6% to 5% and the rate of HST from 14% to 13%. The new rates apply to supplies for which the GST/HST is paid on or after January 1, 2008, 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 GST/HST Notice 226, GST/HST Rate Reduction in 2008 on the Canada Revenue Agency (CRA) Web site at www.cra-arc.gc.ca/E/pub/gi/notice226/README.html.

Statement of Facts

Our understanding of the facts is as follows:

•   XXXXX a non-resident located inXXXXX is in the business of producing live specialized motor sports events.

•   XXXXX is planning on temporarily importing a television production truck and related television equipment for the recording of XXXXX.

•   XXXXX.

•   The television production truck and related television equipment are not for sale, for lease or for further manufacturing or further processing.

•   The Canadian Border Services Agency has determined that the conditions of Item 42 of the Temporary Importation (Excise Levies and Additional Duties) Regulations are met for the temporary importation of the television production truck and related television equipment.

Ruling Requested

You would like to know whether the temporary importation of the television production truck and related television equipment is a non-taxable importation for GST/HST purposes.

Ruling Given

Based on the facts set out above, we rule that the temporary importation of the television production truck and related television equipment is a non-taxable importation for GST/HST purposes.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are 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 XXXXX. Importations of goods relieved of tax under section 213 XXXXX are set out in Schedule VII XXXXX. Section 8 of Schedule VII XXXXX deems prescribed goods that are imported in prescribed circumstances into Canada to be non-taxable for GST/HST purposes. Subparagraph 3(i)(i) of the Non-Taxable Imported Goods (GST/HST) Regulations includes goods described in item 42 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations when a person imports the goods in circumstances where the terms and conditions of the regulations have been met.

Item 42 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations includes:

Photographic equipment, including film; transmitting equipment not required to be licensed by the Department of Communications; radio and television equipment; video and sound-recording apparatus and related material and equipment; all of the foregoing when imported by non-residents for their use in covering news and sports events.

The Canadian Border Services Agency has determined that the conditions of Item 42 of the Temporary Importation (Excise Levies and Additional Duties) Regulations are met for the temporary importation of the television production truck and related television equipment.

For your convenience, find enclosed a copy of GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-6743. 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,

Gregory A. Smith
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

2008/03/14 — RITS 61357R — Tour Packages