Words and Phrases - "contract of carriage"

Customers would purchase watches or jewellery at Vancouver stores of the appellant in order to take them as gifts on their regular trips to China. The appellant’s staff would personally take the items to the airport (shortly before the flight departure) where they were inspected by a CBSA officer who would stamp a completed E15 form (a Canadian customs form evidencing exportation of the listed items) and then essentially ensure or monitor that the items were not handed over to the customer until shortly before boarding.

In finding that zero-rating was not available under s. 12(a), Lyons J stated (at paras 71, 78):

…[P]aragraph 12(a) … denotes an intention that a third party carrier would need to be engaged where the supplier “ships” the property to a destination outside Canada. This construction aligns with Parliament’s intent that exported goods are available for use (by the recipient or its designate) only outside Canada.

… As no third party carrier was engaged under a contract for carriage, I find that the appellant did not ship the Jewellery within the meaning of paragraph 12(a).