Schedule VII

A Canadian company may import two U.S.-based utility aircraft into Canada. Due to American foreign ownership rules, these aircraft are in an ownership trust agreement between the Canadian company's American subsidiary and an American bank. CRA responded:

Pursuant to section 1 of Schedule VII to the ETA, goods that are classified under headings 98.01, 98.02 and 98.03 of Schedule I to the Customs Tariff qualify as non-taxable importations to the extent that the goods are not subject to duty under the Customs Tariff. Heading 98.01 addresses importations of conveyances or containers engaged in the international commercial transportation of goods or passengers, heading 98.02 addresses the temporary importation of conveyances by a resident to be employed in the international non-commercial transportation of the person and accompanying persons using the same conveyance, and heading 98.03 addresses temporary importations of a conveyance and baggage by a non-resident person for use by the person in Canada.

Importation of embryos “no longer subject to tax”

The second proposed amendment would add, under section 13 of Schedule VII to the Act, the importation of in vitro embryos, as defined in section 3 of the Assisted Human Reproduction Act, to the list of non-taxable importations set out in Schedule VII to the Act. As a result, the importation of in vitro embryos would no longer be subject to tax. Similarly, the third proposed amendment would provide, under section 27 of Part I of Schedule X to the Act, relief of the provincial component of the HST or part thereof on bringing in vitro embryos into a participating province from a non-participating province or from another participating province for which the rate of the provincial part of the HST is lower.

Meaning of “embryo” and “in vitro embryo”

As defined in section 3 of the Assisted Human Reproduction Act, an embryo means a human organism during the first 56 days of its development following fertilization or creation, excluding any time during which its development has been suspended, and includes any cell derived from such an organism that is used for the purpose of creating a human being. …

As defined in section 3 of the Assisted Human Reproduction Act, an in vitro embryo means an embryo that exists outside the body of a human being.

Treatment of the subject supplies before amendments passed

[C]linics and donor banks are not liable to pay GST on the importation of in vitro embryos after March 19, 2019. … However, consistent with its standard practice, the Canada Border Services Agency is administering this measure on the basis of the proposed amendment.

Assimilated to single supply at fertility clinic of institutional health care service

Where a patient of a fertility clinic or other health care facility undergoes treatment or other service at the clinic which includes the implantation of a human donor ovum or the transfer of an in vitro embryo, the CRA considers that the supply of the human donor ovum or in vitro embryo made by the clinic to the patient in these circumstances would generally be part of an exempt supply of an institutional health care service.