| Extension of
period
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(4) The Minister of National Revenue may,
in respect of prescribed goods, extend the
period of exportation by not more than six
months if that Minister is satisfied that it is not
practical or possible to export the goods
within the period.
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| Waiver
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(5) The Minister of National Revenue may
waive the requirement under subsection (1) to
provide security.
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General
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| Effect of relief
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107. (1) Subject to section 95, if relief is
granted under section 89, 92, 101 or 106 from
the payment of the whole or a portion of
duties,
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(a) no duties are payable, if the relief was
from the payment of the whole; and
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(b) the portion is not payable, if the relief
was only from the payment of the portion.
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| Effect of relief
on duty paid
value
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(2) Notwithstanding subsection (1), the
amount of the customs duties payable on
goods shall, for the purposes of determining
the duty paid value of the goods, be
determined as if relief had not been granted
under section 89, 92, 101 or 106.
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| Effect of relief
on value
under Excise
Tax Act
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(3) Notwithstanding subsection (1), the
amount of customs duties payable on goods
shall, for the purposes of determining the
value of the goods under section 215 of the
Excise Tax Act, be determined as if relief had
been granted under section 101 but had not
been granted under section 89, 92 or 106.
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| Refund or
cancellation
of security
|
108. The Minister of National Revenue
shall refund or cancel any security given
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(a) in respect of the issuance of a licence
under section 91, when the licence is
cancelled;
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(b) in respect of goods that would have been
classified under tariff item No. 9993.00.00
if they had met the conditions set out in that
tariff item, when the goods are accounted
for under section 32 of the Customs Act and
all duties payable in respect of the goods are
paid;
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(c) in respect of goods of tariff item No.
9993.00.00, when the goods are destroyed
in the manner that the Minister of National
Revenue directs or the destruction is
certified by a customs officer or another
person designated by that Minister;
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(d) in respect of goods of any tariff item in
respect of which security is required, other
than goods of tariff item No. 9993.00.00,
when the goods are exported in the manner
and within the period referred to in the tariff
item in respect of which security was given
or within the period established or extended
by the regulations;
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(e) in respect of goods of tariff item No.
9993.00.00, when the goods are exported,
destroyed, consumed or expended in the
manner and within the period referred to in
that tariff item or within the period
established or extended by the regulations;
and
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(f) in respect of an application for relief
under section 106, if
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(i) the goods in respect of which the
application was made are not exported
within the period referred to in
subsection 106(3) or (4), as the case may
be, the goods are accounted for under
section 32 of the Customs Act, and all
duties and taxes payable in respect of the
goods are paid,
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(ii) the goods in respect of which the
application was made are destroyed in
the manner that the Minister of National
Revenue directs, or
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(iii) the goods in respect of which the
application was made are exported
within the period referred to in
subsection 106(3) or (4), as the case may
be.
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| Definition of
``obsolete or
surplus
goods''
|
109. In this Division, ``obsolete or surplus
goods'' means goods that are
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(a) found to be obsolete or surplus
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(i) in the case of imported goods, by their
importer or owner, or
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(ii) in any other case, by their
manufacturer, producer or owner;
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(c) destroyed in such manner as the Minister
of National Revenue may direct; and
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(d) not damaged before their destruction.
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| Relief for
obsolete or
surplus goods
|
110. If an application is made in accordance
with section 111, a refund shall be granted of
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(a) all duties, other than the goods and
services tax, paid in respect of imported
obsolete or surplus goods;
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(b) all duties, other than taxes imposed
under the Excise Tax Act, paid in respect of
imported goods processed in Canada, if the
goods that result from the processing
become obsolete or surplus goods; and
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(c) all duties, other than taxes imposed
under the Excise Tax Act, paid in respect of
imported goods, other than fuel or plant
equipment, that are directly consumed or
expended in the processing in Canada of
goods that become obsolete or surplus
goods.
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| Application
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111. An application under section 110 must
be
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(a) made in the prescribed form and
manner, with the prescribed information,
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(i) if the obsolete or surplus goods were
imported, by the importer or owner of
those goods, or
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(ii) in any other case, by the
manufacturer, producer or owner of the
obsolete or surplus goods;
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(b) accompanied by a waiver referred to in
section 119, if applicable, and by the
prescribed documents; and
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(c) made within five years, or such other
time as may be prescribed, after the goods
in respect of which it is made are released.
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| Regulations
|
112. The Governor in Council may, on the
recommendation of the Minister of National
Revenue, make regulations prescribing
documents that must accompany an
application under section 110 and the period
within which such an application must be
made.
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| Refund or
drawback
|
113. (1) Subject to subsection (2), section
96 and any regulations made under subsection
(4), a refund or drawback shall be granted of
all or a portion of duties if
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(a) relief or a refund of all or a portion of the
duties could have been, but was not, granted
under section 89 or 101;
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(b) all or a portion of the duties was paid;
and
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(c) an application is made in accordance
with subsection (3) and section 119.
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| No refund or
drawback in
respect of
tobacco
products
|
(2) No refund or drawback of the duties or
taxes imposed or levied on tobacco products
under the Excise Tax Act or section 21 shall be
granted under subsection (1), except if a
refund of the whole or the portion of the duties
is required to be granted under Division 3.
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| Application
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(3) For the purposes of subsection (1), an
application must
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(a) be supported by such evidence as the
Minister of National Revenue may require;
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(b) be made by a prescribed person or by a
person belonging to a prescribed class of
persons;
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(c) be made in the prescribed form and
manner, with the prescribed information,
within four years, or within such other time
as may be prescribed, after the goods in
respect of which it is made are released; and
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(d) if the goods have not been exported or
deemed exported for the purposes of relief
under section 89, disclose the number of the
certificate issued under section 90.
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| Regulations
|
(4) For the purposes of this section, the
Governor in Council may, on the
recommendation of the Minister of National
Revenue, make regulations prescribing
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(a) the circumstances in which, and the
classes of goods in respect of which, a
refund or drawback of duties levied under
section 21 or under the Special Import
Measures Act, a surtax levied under section
53, 55, 60, 63, 68 or 78, a temporary duty
levied under any of sections 69 to 76, a tax
levied under the Excise Tax Act or a duty
levied under the Excise Act may not be
granted under subsection (1);
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(b) the portion of duties paid that may be
granted as a refund or drawback under
subsection (1);
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(c) the persons or classes of persons who
may make an application for a refund or
drawback under subsection (1);
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(d) the uses to which goods may be put or
operations that goods may undergo after
which the goods will be considered to be in
the same condition;
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(e) goods that are considered to be of the
same class;
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(f) the time within which an application for
a refund or drawback must be made;
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(g) the circumstances in which an
application for a refund or drawback may be
made;
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(h) restrictions as to the classes of goods for
which a refund or drawback may be
granted; and
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(i) the circumstances in which a refund or
drawback may not be granted.
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| Designated
goods
|
(5) Notwithstanding the exception in
subsection 89(2), a refund or drawback of
duties or taxes levied or imposed under
section 21, the Excise Act or the Excise Tax Act
shall be granted under paragraph (1)(a) on
designated goods.
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| Overpayment
of refund or
drawback
|
114. (1) If a refund or drawback is granted
under section 110 or 113 to a person who is not
eligible for the refund or drawback or in an
amount exceeding the amount for which the
person is eligible, that person shall pay to Her
Majesty in right of Canada, on the day that the
refund or drawback is received,
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(a) any amount for which the person is not
eligible; and
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(b) any interest granted under section 127
on the amount referred to in paragraph (a).
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| Debt to Her
Majesty
|
(2) An amount referred to in subsection (1),
while it remains unpaid, is deemed to be a debt
owing to Her Majesty in right of Canada under
the Customs Act.
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| Discretionary
relief
|
115. (1) The Governor in Council may, on
the recommendation of the Minister or the
Minister of National Revenue, by order, remit
duties.
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| Scope of
relief
|
(2) A remission under subsection (1) may be
conditional or unconditional, may be granted
in respect of the whole or any portion of the
duties and may be granted regardless of
whether any liability to pay the duties has
arisen.
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| Remission by
way of refund
|
(3) If duties have been paid, a remission
under subsection (1) shall be made by granting
a refund of the duties to be remitted.
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| Debts due the
Crown
|
116. Relief under section 89 or 101 may be
refused if, at the time the relief is authorized
or required to be granted, the person to whom
the relief is to be granted is indebted to
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(a) Her Majesty in right of Canada; or
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(b) Her Majesty in right of a province in
respect of tax payable to the province, if
there is an agreement between the
Government of Canada and the government
of the province authorizing Canada to
collect the tax on behalf of the province.
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| Sum in lieu of
drawback,
refund, etc.
|
117. If circumstances exist that render it
difficult to determine the exact amount of
relief under section 89, of a refund under
section 110 or of a refund or drawback under
section 113 or the exact amount of a general
remission of duties under an order made under
section 115 of this Act or section 23 of the
Financial Administration Act, the Minister of
National Revenue may, with the consent of the
applicant for the relief, refund, drawback or
remission, grant to the applicant a sum, in an
amount determined by that Minister, in lieu of
the relief, refund, drawback or remission.
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| Failure to
comply with
conditions
|
118. (1) If relief from, or remission of,
duties is granted under this Act, other than
under section 92, or if remission of duties is
granted under section 23 of the Financial
Administration Act and a condition to which
the relief or remission is subject is not
complied with, the person who did not comply
with the condition shall, within 90 days or
such other period as may be prescribed after
the day of the failure to comply,
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(a) report the failure to comply to an officer
at a customs office; and
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(b) pay to Her Majesty in right of Canada an
amount equal to the amount of the duties in
respect of which the relief or remission was
granted, unless that person can provide
evidence satisfactory to the Minister of
National Revenue that
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(i) at the time of the failure to comply
with the condition, a refund or drawback
would otherwise have been granted if
duties had been paid, or
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(ii) the goods in respect of which the
relief or remission was granted qualify in
some other manner for relief or remission
under this Act or the Financial
Administration Act.
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| Diversions
|
(2) If a drawback has been granted of duties
paid in respect of imported goods by reason of
a deemed exportation under subsection 89(3),
the goods are not subsequently exported and
the goods are diverted to a use other than a use
set out in that subsection, the person who
diverted the goods shall, within 90 days after
the day of the diversion,
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(a) report the diversion to an officer at a
customs office; and
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(b) pay the amount of the drawback and the
amount of any interest granted on the
drawback under section 127.
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| Debt to Her
Majesty
|
(3) An amount referred to in paragraph
(1)(b) or (2)(b), while it remains unpaid, is
deemed to be a debt owing to Her Majesty in
right of Canada under the Customs Act.
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| Regulations
|
(4) The Governor in Council may make
regulations
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|
(a) on the recommendation of the Minister
of National Revenue, prescribing time
limits for the application of subsection (1)
and the goods or classes of goods in respect
of which, or the circumstances in which,
those limits apply; and
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(b) on the recommendation of the Minister,
prescribing the circumstances in which
certain goods are exempted from the
application of subsection (1) and the goods
or classes of goods in respect of which, and
the period for which and the conditions
under which, those exemptions apply.
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| Waivers
|
119. An application under section 110 or
113 must be accompanied by a waiver, in the
prescribed form, from every other person
eligible to claim a drawback, refund or
remission of the duties in respect of which the
application is made, waiving that person's
right to apply for the drawback, refund or
remission.
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| Definition of
``value''
|
120. For the purposes of sections 121 and
122, ``value'' means, in respect of a
by-product, goods or merchantable scrap or
waste,
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(a) if the processor has sold the by-product,
goods or merchantable scrap or waste in an
arms-length transaction, the price at which
the processor sold the by-product, goods or
merchantable scrap or waste; and
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(b) in any other case, the price at which the
processor would ordinarily have sold the
by-product, goods or merchantable scrap or
waste in an arms-length transaction,
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(i) in the case of an application for a
drawback or refund, at the time the
application is made, or
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(ii) if relief from the payment of duties
has been granted under section 89, at the
time the goods are exported.
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| Relief reduced
by value of
by-product
|
121. (1) If relief from payment of duties is
granted in respect of goods under section 89
and the goods enter into a process that
produces a by-product in respect of which
relief could not have been granted, the
processor shall, within 90 days after
production of the by-product, pay to Her
Majesty in right of Canada an amount that
bears the same proportion to the amount of the
relief as the value of the by-product bears to
the total value of the products produced from
the processing of the goods.
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