11 September 2012 Interpretation 145581
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.