Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 147921
Business Number: […]
October 10, 2012
Dear [Client]:
Subject: GST/HST RULING
Value of temporary importation of leased bus
Thank you for your letter of [mm/dd/yyyy], […], in which you request authorization for partial relief from the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) with respect to the importation of a leased bus.
HST applies at the rate of 15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 12% in British Columbia. GST applies at the rate of 5% in the remaining provinces and territories.
We understand that:
* […] (the “Lessee”) has entered into an agreement to lease the following bus from […] (the “Lessor”), a non-resident person with whom the Lessee deals at arm’s length:
Bus Type Model Number Serial Number Registration Number
[…] Not applicable […] Not applicable
* The lease agreement is for a period beginning on [mm/dd/yyyy] and ending on [mm/dd/yyyy].
* The bus will be imported at […] on [mm/dd/yyyy] and will be exported on [mm/dd/yyyy].
* The total number of months that the bus is to be held in Canada by the Lessee under a lease with the Lessor will not exceed 24 months.
Based on the information provided as set out above, authorization is hereby granted to determine the value of the imported bus under subsection 215(2) of the Excise Tax Act and section 14 of the Value of Imported Goods (GST/HST) Regulations, as 1/60th of the value for duty of the bus for each month or part of a month that the bus remains in Canada, plus any remaining duties payable in respect of the bus. This authorization will expire on [mm/dd/yyyy] if the bus is not imported on or before that date. Any request for an extension to the authorization period should be submitted to this office for approval prior to the expiry date of the authorization.
In order to qualify for partial relief pursuant to section 14 of the Value of Imported Goods (GST/HST) Regulations, an imported conveyance must be exported on or before the earlier of the day that is 24 months after the day on which the conveyance is imported, and the day on which the lease is terminated. Also, if the conveyance is imported more than once, the cumulative number of months in the periods throughout which the conveyance is held in Canada by the lessee under a lease with the lessor must not exceed 24 months.
The importer is required to meet the Customs requirements as outlined in Customs Memorandum D8-1-1 Temporary Importation (Tariff Item No. 9993.00.00) Regulations with respect to the processing and control of temporary import documents and export documentation and procedures.
A copy of this letter has been sent to the Canada Border Services Agency, Canada Border Services Office […]. Please contact this office prior to the importation of the bus for additional information regarding import procedures and export requirements.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-957-8253. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Gunar Ozols
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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