20 October 1995 GST/HST Interpretation 1995-10-20 - Section 216 of the Excise Tax Act

This is in reply to your memorandum dated May 30, 1995, regarding the above-referenced subject. We apologize for the delay in replying.

We agree with your interpretation of section 216 of the Excise Tax Act (ETA), as amended. That is, the amendment was made to section 216 to ensure that disputes related to the tax status of imported goods are processed by Customs officials under the re-determination provisions of the Customs Act.

Subsection 216(1) states that the "determination of the tax status of the goods" means the determination of whether the goods are included in Schedule VII of the ETA. Subsection 216(2) of the ETA states that the Customs Act applies to the determination of the tax status of goods, as if it were the determination (or re-determination) of the tariff classification of the goods. Therefore, in any case where the issue is the non-taxable status of the goods upon importation (because they are included in Schedule VII), the importer should apply to Canada Customs for a re-determination using the same procedures, forms etc. as if the importer were applying for a re-determination of the tariff classification of the goods. This procedure applies in all cases, even if there are no customs duties assessable on the goods.

We are not aware of any written representations by Customs regarding this amendment to section 216, which took effect in 1993. However, it is possible that there were communications between Customs and the Department of Finance, of which we are not aware.

For your information, we are enclosing a copy of the explanatory notes which accompanied the draft legislation amending section 216.

Should you have further questions in this regard, please do not hesitate to contact Mark Seigel of the GST Imports Unit at 952-1512.

H. L. Jones
Director
General Applications Division
GST Rulings and Interpretations

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