13 December 1999 GST/HST Interpretation 13429 - Foreign Railway Rolling Stock Entering Canada in International Use and Placed into Canadian Domestic Service (Request for GST Exemption)

Dear XXXXX

Thank you for a copy of your letter of November 5, 1999 addressed to Mr. Steve Tierney of the Department of Finance concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to Foreign Railway Rolling Stock entering Canada in international use and placed into Canadian domestic service.

As you know, any changes to the provisions of the Excise Tax Act respecting foreign railway rolling stock is a matter of tax policy to be addressed by the Department of Finance. In its announcement of 7 October 1997 respecting the introduction of the proposed legislation to implement a new simplified Customs Tariff, the Department of Finance noted that "consequential amendments to the Excise Tax Act will be introduced to ensure that the tax status of imported goods does not change as a result of tariff simplification". In the meantime, the exemptions provided in section 8 of Schedule VII of the Excise Tax [Act] continue to apply.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 952-8810.

Yours truly,

Ivan Bastasic
Manager
Border Issues Unit
General Operations and Border Issues Division
GST/HST Rulings and Interpretations Directorate
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