8 January 2008 GST/HST Ruling 100858 - XXXXX Energy XXXXX Drink XXXXX

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

Dear XXXXX:

Thank you for your fax XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the temporary importation of XXXXX and related equipment.

All legislative references are to the Excise Tax Act (ETA) and the regulations there under, unless otherwise specified.

Effective January 1, 2008, the rate of the GST was reduced from 6% to 5% and the rate of the HST from 14% to 13%. The new rates apply to supplies for which the GST/HST is paid on or after January 1, 2008, without having become payable before that date. Specific transitional rules will apply to certain supplies, for example, real property. For more information on the transitional rules for the reduction of the GST/HST rate, please refer to GST/HST Notice 226, GST/HST Rate Reduction in 2008 on the CRA Web site at www.cra-arc.gc.ca/E/pub/gi/notice226/README.html

Statement of Facts

Our understanding of the facts is as follows:

1. Your client, XXXXX is in the business of XXXXX.

2. XXXXX is planning to temporarily import XXXXX and related equipment to compete at various events across Canada XXXXX.

3. XXXXX are to take part in the XXXXX. The XXXXX are to take part in the XXXXX.

4. The XXXXX and related equipment are not for sale, for lease or for further manufacturing or further processing.

5. The Canada Border Services Agency has determined that the conditions of item 38 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations are met for the temporary importation of the XXXXX and related equipment.

Ruling Requested

You would like to know whether the temporary importation of XXXXX and related equipment is a non-taxable importation for GST/HST purposes.

Ruling Given

Based on the facts set out above, we rule that the importation of the XXXXX and related equipment XXXXX is a non-taxable importation for GST/HST purposes pursuant to section 8 of Schedule VII to the Excise Tax Act (ETA), section 213 of the ETA and sub-paragraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the ETA, or to our interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Explanation

Generally, all goods imported into Canada are taxable for GST/HST purposes unless specifically relieved under section 213 of the ETA. Importations of goods relieved of tax under section 213 of the ETA are set out in Schedule VII to the ETA. Section 8 of Schedule VII to the ETA deems prescribed goods that are imported in prescribed circumstances into Canada to be non-taxable for GST/HST purposes. Sub-paragraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations includes goods described in item 38 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations when a non-resident person imports the goods in circumstances where the terms and conditions of the regulations have been met.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-6743.

Yours truly,

Gregory Smith
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

2008/01/21 — RITS 83055 — [Entitlement to Claim the 83% PSB Rebate of the GST/HST as a Facility Operator]