Section 213.2

Subsection 213.2(1)

Administrative Policy

1 September 2020 GST/HST Interpretation 180336 - Fourniture effectuée au Canada suivi d’importation

certificate unavailable where re-export intention not established

A manufacturer resident in Quebec (the “Recipient”) acquired goods from a registered corporation resident in the U.S. (the “Supplier”) for consumption, use or supply in the course of the Recipient’s commercial activities. The parties argued that delivery was to occur at the Quebec facilities of the Recipient and that the Recipient was responsible for paying all taxes and duties applicable to the goods’ importation (with this function being performed on its behalf by a Montreal customs broker).

In response to the Recipient’s query as to whether it could avoid a second level of imposition under Division III (in addition to the tax under Division II) by obtaining a certificate under s. 213.2, CRA stated:

In general, section 213.2 establishes an import certificate regime allowing registered importers to import goods owned by a non-resident person for the purpose of providing a storage or distribution service, or performing certain manufacturing or processing services, in respect of those goods prior to their export. This section also applies where the registrant imports goods or raw materials (other than fuels, lubricants and plant equipment) that will be consumed or absorbed directly in the processing of other goods for export.

In this case, we understand that the imported goods are owned by the Recipient, who acquired them for use, consumption or supply in the course of its own commercial activities in Canada and not necessarily for export or for the purpose of providing a service in respect of them to the non-resident supplier. If this is the case, it would appear that the import certificate regime set out in section 213.2 would not apply in this case.