2 May 2003 GST/HST Interpretation 45247 - GST/HST Status of the Importation of for Sale in Canada

Dear XXXXX:

It is our understanding that the XXXXX will be holding an annual gathering of its members and officers (XXXXX) in XXXXX Canada in XXXXX. It is also our understanding that members may import XXXXX into Canada for the purpose of selling them to other members during the course of this annual event.

We hope that you have an enjoyable and successful meeting and would like to confirm how the GST applies to XXXXX that are imported by members for sale at the annual event.

GST is payable on all goods imported into Canada, unless specifically relieved from tax under the GST/HST legislation. There is no tax relieving provision for the importation by XXXXX of XXXXX for sale in Canada. The importation of the XXXXX will therefore be subject to GST at a rate of 7% calculated on their value as determined by the Customs Branch of the Canada Customs and Revenue Agency in accordance with the applicable valuation method, plus any duty or other tax payable on the importation of the XXXXX. The GST on the imported XXXXX must be paid at the time of their importation.

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) 952-8812.

Yours truly,

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