Frequently Asked Questions About the Ships’ Stores Regulations

The Frequently Asked Questions (FAQs) below are meant to provide Canadians and businesses with basic information about the Canada Revenue Agency’s regulations. FAQ’s have only been added for some regulations - the Ships’ Stores Regulations (SOR/96-40) were selected based on the number of visits these regulations receive on the Justice Canada website.

What is the purpose of this regulation?

These regulations provide the definitions and requirements necessary for the application of the Excise Tax Act, the Excise Act and the Excise Act, 2001 with respect to ships’ stores.

The Excise Tax Act provides that if excise tax has been paid in respect of goods that are designated as ships’ stores, a refund may be paid to the purchaser in certain situations. The Excise Act provides a refund mechanism to brewers who supply packaged beer as ships’ stores; the Excise Act, 2001 allows excise warehouse licensees to provide non-duty-paid packaged alcohol as ships’ stores without the payment of excise duty.

The regulations designate which goods or classes of goods qualify as ships’ stores for use on board specified conveyances.

What are the key elements of this regulation?

These regulations

• Define the terms used in the administration of the relief provisions;
• define the types of goods used on board of a conveyance as that are considered to be ship’s stores;
• provide the requirements for sealing off the ship in a Canadian port; and
• provide various administrative powers.

How does this regulation affect Canadian businesses?

Qualifying Canadian businesses may use these regulations to determine the classes of goods that are considered to be ships’ stores and in respect of which they can claim a refund of any excise tax or excise duty they paid on these goods, or in the case of non-duty-paid packaged alcohol, not pay the excise duty.

What is the timeline for implementation?

These regulations were registered in January 1996 and are occasionally amended by the Minister of National Revenue.

Where can I get more information?

• Notice ETSL44, Proposed Legislation and Regulations Relating to Ships' Stores Provisions
• Notice ETSL69, Proposed Amendment to the Ships' Stores Regulations to Include Renewable Fuels
• Notice ETSL71, Regulations Amending the Ships' Stores Regulations (2009)
• Excise Duty Memoranda - EDM9-3-1, Export Documentation

For more information

• Cabinet Directive on Regulatory Management
• Red Tape Reduction Action Plan
• Canada–United States Regulatory Cooperation Council

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.

Date modified:

2014-12-19