26 January 2004 GST/HST Interpretation 49522 - Temporary Importation of Amusement Rides

Please note that the following documents, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ces documents, bien qu'exacts au moment émis, peuvent ne pas représenter la position actuelle de l'Agence.

Dear XXXXX:

I refer to your facsimile letter XXXXX requesting partial relief of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) payable on the temporary importation of amusement rides and ancillary equipment.

Statement of Facts

1. XXXXX intends to temporarily import the following amusement rides and ancillary equipment, for use at fairs and exhibitions across XXXXX:

2. XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX[.] The initial crossing of the amusement rides will be in XXXXX. The amusement rides and ancillary equipment will be in Canada for less than one year.

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

4. The amusement rides are not imported for the purpose of further manufacture, alteration, processing, repair or maintenance.

Canada Revenue Agency's (CRA's) Position

Based on the above facts, the CRA 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 rides are 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 the importation. Consequently, CRA 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 XXXXX months from XXXXX, to permit the importation of the amusement rides. Special authority number XXXXX is to be shown in the special authority field on the Customs accounting document as applying to the amusement rides. A copy of this letter will be sent to Ms. Debbie Arcand, Manager, Trade Incentives and Refunds Unit, Trade Policy and Interpretation Directorate, Canada Border Services Agency 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
Policy and Planning Branch