17 July 2001 GST/HST Interpretation 36658 - Temporary Importation of Horses

Dear XXXXX

This is in reference to my previous interpretation letter to you, dated XXXXX XXXXX. I am pleased to advise you that we have revised our previous position, as outlined below.

Interpretation Requested

The facts as we now understand them are:

-    You are a resident of Canada having landed in Canada on XXXXX, as an immigrant to Canada.

-    You are also a citizen of the United States, also having a place of residence in XXXXX.

-    You are an active competitor in international rodeos, specializing in XXXXX.

-    For the purpose of competing in such a rodeo activity, you have imported two horses into Canada owned by XXXXX, and have been charged some $5,000 in GST by Canada Customs.

-    These two horses XXXXX, are imported temporarily into Canada for competition purposes only.

-    The owner of the two horses has supplied you with a Power of Attorney that provides that you may use the horses for competition and move them between Canada and the United States.

Interpretation Given

Based on the information provided above and further review, I am pleased to provide you with the following interpretation.

Where horses are imported temporarily for the purpose of competition (i.e., jumping, racing, etc.) then section 8 of Schedule VII to the Excise Tax Act (the ETA), entitled "Non-Taxable Importations" may apply. Specifically, where certain types of goods are imported in prescribed circumstances, such importations are non-taxable. Accordingly, subparagraph 3(i)(i) of the "Non-Taxable Imported Goods (GST) Regulations" provides that goods listed in Item 39 of the schedule of the "Temporary Importation Regulations", are not subject to GST on their importation.

Item 39 of the schedule to Appendix D of the "Temporary Importation (Excise Levies and Additional Duties) Regulations", includes the temporary importation of animals (e.g., horses) for purposes of pasturage, competition, training or breeding in Canada.

The above tax relief is extended to non-residents and residents alike. Therefore, if the horses are imported temporarily for competition in Canada, the importation is not subject to GST.

Where Customs has charged you the GST on such an importation, you can amend the original declaration form B-3, by filing with Customs an adjustment entry form B-2G. If you have since paid the GST, upon filing the above amending entry form, Customs will arrange for the rebate of the GST paid in error.

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) 957-8220.

Yours truly,

Daniel E.B. Chamaillard
Senior Technical Analyst
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate