17 July 2000 GST/HST Interpretation 30443 - Surplus Stock Exported From Canada by Non-resident Non-registrants

Dear XXXXX

Thank you for your letter of February 25, 2000 to XXXXX which was sent to us for reply. The letter concerns the possibility for your non-resident non-registered clients to claim a rebate of GST paid on imported goods which are subsequently exported from Canada.

Interpretation Requested

A non-resident non registered person imports goods into Canada and pays Division III tax (GST on importation of goods). The goods are intended for sale in Canada by the non-resident during the XXXXX. Goods that are not sold in Canada will be exported by the non-resident and will be subject to Customs drawback. You want to know if there is any provision in the Excise Tax Act (the Act) to allow for a rebate of Division III tax paid at the time of importation on the goods which are subject to Customs drawback because of their subsequent export from Canada.

Interpretation Given

A rebate of Division III tax paid on goods imported into Canada is generally available under the conditions outlined in sections 215.1 and 216 of the Act. However, there is no provision in the Act that would allow for a rebate of Division III tax paid by a non-resident non-registered person on the importation of goods into Canada for sale, where such goods are subsequently exported in the circumstances described above.

The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Canada Customs and Revenue Agency with respect to a particular situation.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-4291.

Yours truly,

B. Mulinda
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate