3 February 1997 GST/HST Ruling HQR0000475 - GST Status of [Surgical Prosthesis] Imported Into Canada

Dear XXXXX

This is in response to your facsimile of December 18, 1996, concerning the application of the Goods and Services Tax (GST) to XXXXX imported into Canada.

Statement of Facts

1. Your client, XXXXX, imports XXXXX into Canada. XXXXX[.]

2. Your client, XXXXX, imports XXXXX into Canada XXXXX XXXXX[.]

Proposed Transactions

XXXXX, will import and distribute both XXXXX and XXXXX in Canada.

Ruling Requested

Is the GST applicable on the importation into Canada of either XXXXX or XXXXX?

Ruling Given

Based on the facts set out above, we rule that:

XXXXX are considered to be zero-rated "surgical prosthesis" pursuant to section 25 of Part II of Schedule VI to the Excise Tax Act (ETA). As such, these devices can be imported on a tax-free basis pursuant to section 6 of Schedule VII to the ETA.

XXXXX does not meet any of the zero-rating provisions of Part II of Schedule VI to the ETA and is therefore taxable at the rate of 7 percent. XXXXX will attract the GST at the time of importation.

This ruling is subject to the general limitations and qualifications outlined in the GST Memoranda Series Section 1.4. We are bound by this ruling provided that none of the above issues are presently under audit, objection or appeal, there are no relevant changes in the future to the Excise Tax Act, and provided that you have fully described all necessary facts and transactions for which you requested a ruling.

Explanation

For purposes of the ETA, XXXXX is not considered to be a medical or surgical prosthesis, as it is not an artificial substitute for a missing body part. Consequently, XXXXX does not meet the zero-rating provision of section 25 of Part II of Schedule VI to the ETA and is therefore taxable at the rate of 7 percent. XXXXX will attract the GST at the time of importation.

If you have any questions or require any further clarification, please do not hesitate to contact Ken Syer at (613) 952-9590.

Yours truly,

Lance G. Dixon
Municipalities and Health Care Services
GST Rulings and Interpretations
Policy and Legislation