ET/SL-0053

February 24, 2005

Notice to all Importers and Licensed Jewellery Manufacturers and Wholesalers Under the Excise Tax Act

Please refer also to Notice ETSL55 for updated information.

On Wednesday, February 23, 2005, the Minister of Finance, the Honourable Ralph Goodale, P.C., M.P., tabled a Ways and Means Motion to reduce the Excise tax on the goods outlined in section 5 of Schedule I to the Excise Tax Act. These goods are:

• clocks and watches;
• articles of all kinds made in whole or in part of natural shells and semi-precious stones;
• jewellery, including diamonds and other precious and semi-precious stones for personal use or for adornment of the person; and
• goldsmiths' and silversmiths' products.

The rate of Excise tax on taxable importations of the above-mentioned goods, and charged on deliveries of such goods to purchasers by all licensed manufacturers and wholesalers of jewellery, (including licensed retail jewellers), will decrease in accordance with the following graduated schedule:

All licensed manufacturers and wholesalers of jewellery will be provided with further information regarding the cancellation of their Excise tax licences early in 2009.

For further information regarding this reduction in Excise taxes, please consult the Department of Finance website at: http://www.fin.gc.ca, or using the following toll-free numbers: ENGLISH 1-866-330-3304 FRENCH 1-800-877-9277.