14 March 2000 GST/HST Interpretation 8318/HQR0001924 - Importation of Books and Publications of Certain International Organizations

This is further to the telephone conversation between Elaine Bonnah of this office and XXXXX on March 10, 2000, concerning the attached correspondence, from XXXXX[.] This organization imports books and other publications of certain international organizations into XXXXX. It is asking how it could expedite the importation of this material as it has, on occasion, been charged GST and customs duties on these supplies.

As the organization is chiefly concerned with how this material should be addressed at the time of importation, it was agreed that the matter more appropriately falls within your area of responsibility.

The correspondence mentions five organizations in particular; XXXXX XXXXX[.] As you are aware, importations of publications by international organizations will be relieved of GST/HST if the goods are classified under any of the headings set out in section 1 of Schedule VII of the Excise Tax Act, including 98.12, "XXXXX any of their specialized agencies."

XXXXX is a specialized agency of the XXXXX and therefore, falls under this provision. An Order in Council issued under the XXXXX provides that this organization is entitled to "... free entry, refund or remission of the following customs duties and the consumption or sales tax imposed under the Customs Tariff or the Excise Tax Act, respectively, on printed matter and official publications and articles and materials used in the production thereof, when imported into Canada or purchased in Canada, either for sale or free distribution by the XXXXX Organization, or its duly authorized agents ..."[.]

As a specialized agency of the XXXXX, the XXXXX XXXXX also falls under section 1 of Schedule VII. It has a Privileges and Immunity Order pursuant to the XXXXX[.] It provides that the XXXXX, its assets, income and property, owned or occupied in Canada "shall be exempt from direct taxes ... and exempt from any prohibitions or restrictions on import, export or sale of its publications and exempt from customs duties and excise taxes in respect thereof."

The XXXXX is not a XXXXX organization; however, it is entitled under a XXXXX to certain privileges which are equivalent to those of an XXXXX organization. As a result, the XXXXX, its assets, income and other property "shall be exempt from all direct taxes" and "exempt from customs duties, and prohibitions and restrictions on imports and exports in respect of its publications."

Accordingly, publications of these three organizations will not be subject to GST/HST when they are brought into Canada under tariff item 98.12.

However, this treatment will not extend to publications of XXXXX, the XXXXX[.] We have consulted with the XXXXX [w]ho advises that this entity is not part of the XXXXX[.] Further, there is at present, no agreement or accord between Canada and this entity that would confer relief from direct tax on importations of its publications.

Finally, we have not been able to confirm that the XXXXX Organization) is part of the XXXXX Organization. Therefore, it appears that its publications will not be relieved of tax under section 1 of Schedule VII as they would not fall under tariff item 98.12.

We would appreciate receiving a copy of your final reply to XXXXX[. I]f you have any questions on this matter, or would like to discuss this further, please contact Elaine Bonnah at 952-9590.

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