29 May 2003 GST/HST Interpretation 45857 - Temporary Importation of an Amusement Ride

Dear XXXXX:

Thank you for your letter XXXXX requesting partial relief of the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) payable on the temporary importation of an amusement ride.

Statement of Facts

•   XXXXX intends to temporarily import an amusement ride, the XXXXX, to be used at fairs in the XXXXX.

•   The initial crossing of the amusement ride will be at XXXXX. The amusement ride will remain in Canada for less than one year.

•   Neither title to nor beneficial use of the amusement ride is intended to pass, or passes, to a person while the amusement ride is in Canada.

•   The amusement ride is not imported for the purpose of further manufacture, alteration, processing, repair or maintenance.

Canada Customs and Revenue Agency's ("CCRA's) Positions

Based on the facts, the CCRA will recommend that the GST/HST payable on the importation of the amusement rides be partially relieved by way of a special Order in Council. The GST/HST will be payable only on 1/60th of the value of the amusement rides for each month or portion thereof that the ride is in Canada. This recommendation is supported by the Department of Finance.

In view of the facts of the case, it was not possible to complete the order and obtain approval of the Governor in Council prior to importation. Consequently, CCRA will allow the importation on a 1/60th basis pending approval by the Governor in Council of the order, on the understanding that GST/HST, together with any interest and penalty, would be payable if approval is not granted or if the terms of the order are not met.

This letter is valid for a period of four months XXXXX to permit the importation of the amusement ride. Special authority number XXXXX is to be shown in the special authority field on the Customs accounting document as applying to the amusement ride. A copy of this letter will be sent to Mr. David Hotchkiss, Manager, Remissions Policy Unit, Customs and Trade Administration Branch in Ottawa. Please contact your local Customs office with this letter for additional information dealing with import procedures and export requirements.

Yours truly,

John Sitka
Director
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate