12 September 2000 GST/HST Interpretation 32025 - Request for Information Regarding Refunds of GST and Interest

Dear XXXXX:

Thank you for your request for information regarding the refund/rebate of Duties, GST and interest collected by the Canada Customs and Revenue Agency (CCRA).

Your request has been transferred from the Ontario East and North and Nunavut Region to the Border Issues Unit of the General Operations and Border Issues Division of the Excise and GST/HST Rulings Directorate for response.

The scenario described in your correspondence and our subsequent telephone conversations involves the refund of duties and interest pursuant to a re-determination of the value for duty of imported goods by the Deputy Minister or Commissioner. A GST/HST registered company (CANCO) imported goods and paid the applicable duties and taxes on the value for duty of the imported goods. The Canada Customs and Revenue Agency (CCRA) re-appraised the value for duty of the imported goods and assessed CANCO additional duties, GST, and interest on the increased value for duty. CANCO appealed the re-appraisal to the Canadian International Trade Tribunal (CITT) and received a favourable decision. The CCRA subsequently provided a refund of the duties (excluding GST) and the interest on the duties to CANCO pursuant to paragraph 64(d) of the 1997 Customs Act and 61(1)(a) of the amended Customs Act.

Where a refund of excess duties and interest has been authorized by virtue of a re-determination of the value for duty of an import under either of these provisions of the Customs Act, subsection 216(6) of the Excise Tax Act provides for a rebate of the excess of the Division III GST collected over that which is required to be paid. Subsection 216(6) of the Excise Tax Act provides that a rebate be paid pursuant to the provisions of the Customs Act that relate to the payment of such refunds and interest on the refunds as if the rebate of the excess tax were a refund of duty. Subsection 216(6) of the Excise Tax Act is subject to section 263 of that Act, meaning the rebate may only be paid in circumstances where the amount has not been previously rebated, refunded or remitted to the person, and the person is not entitled and has not claimed an input tax credit (ITC) in respect of the amount.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-8812.

Yours truly,

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