These regulations let the Minister authorize drawback payments for certain exported goods, but claims must follow prescribed form and filing rules and payments are barred if taxes were not paid within the prior four years or if the goods were used before export.
Regulations Respecting Drawback of Customs Duty, Sales and Excise Taxes Paid in Respect of Certain Goods Manufactured or Produced in Canada and Exported His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to sections 275 and 276 of the Customs Act and subsection 44(8) of the Excise Tax Act, is pleased hereby to revoke the Canadian Manufactured Goods Exported Drawback Regulations made by Order in Council P.C. 1973-120 of 16th January, 19731, as amended2, and to make the annexed Regulations respecting drawback of Customs duties and Excise taxes paid in respect of certain goods manufactured or produced in Canada and exported. SOR/73-52, Canada Gazette Part II, Vol. 107, No. 3, February 14, 1973 SOR/77-388, Canada Gazette Part II, Vol. 111, No. 10, May 25, 1977 These Regulations may be cited as the Canadian Manufactured Goods Exported Drawback Regulations. In these Regulations, Minister means the Minister of National Revenue. Subject to these Regulations, the Minister shall authorize the payment to the exporter, manufacturer or producer of goods as exported of a drawback of the customs duty, sales and excise taxes paid on or in respect of imported parts and materials used in, wrought into or attached to goods manufactured or produced in Canada and exported therefrom; imported materials, other than fuel or plant equipment, directly consumed in the manufacture or production of goods exported; and imported parts and materials in a quantity sufficient to manufacture or produce the goods exported, where those imported parts and materials were used in the plant manufacturing or producing the goods exported during the twelve month period immediately preceding the manufacture or production of such goods and domestic parts and materials of the same class as those imported and that are so similar that they could be used interchangeably in the manufacture or production of goods are used in, wrought into or attached to, the goods exported, or domestic materials, other than fuel or plant equipment, of the same class as those imported and that are so similar that they could be used interchangeably in the manufacture or production of goods are directly consumed in the manufacture or production of the goods exported. Where any imported parts and materials enter a process of manufacture that results in the production of a by-product, the drawback payable in respect of those parts and materials shall be reduced by the same proportion that the value of the by-product bears to the total value of all production from the parts and materials. Where any imported parts and materials enter a process of manufacture that results in the production of merchantable scrap or waste, the drawback payable in respect of those parts and materials shall be reduced by a sum to be arrived at by applying to the Canadian sales value of the merchantable scrap or waste the prevailing rate of customs duty on merchantable scrap or waste of the same kind when imported as such. Notwithstanding subsection (1), no reduction referred to therein shall be calculated on a higher rate of customs duty than was paid on the imported parts and materials from the manufacture of which the scrap or waste resulted. A claim for drawback shall be made in such form as the Minister may prescribe; be accompanied by waivers from any other person who, pursuant to these Regulations, would be entitled to claim a drawback; subject to subsection (2), be accompanied by [Revoked, SOR/85-299, s. 1] a copy of any bill of lading, a copy of any sales invoice, any Certificate of Importation, Sale or Transfer, any Certificate of Sale for Exportation, and a list of import entries, relating to the claim; and be filed at a customs office subsequent to the exportation of the goods referred to in the claim. A claim for drawback need not be accompanied by a document required by paragraph (1)(c) if the document is not available and information equivalent to the information that would be shown on the document is included with the claim. No payment shall be made in respect of any claim for drawback unless the customs duty and sales and excise taxes on the parts and materials in respect of which the claim is made were paid within the four year period immediately preceding the date on which the claim was filed. Subsection (1) applies to all customs duties and sales and excise taxes paid on or after April 1, 1981. Subject to subsection (2), there shall be deducted from the drawback otherwise payable under section 3 the amount of anti-dumping duty paid or payable in respect of goods described in the schedule. Subsection (1) applies only if the initial documents for entry for consumption were delivered to the collector on or after October 13, 1976, in the case of the goods described in item 1 of the schedule; on or after April 22, 1977, in the case of the goods described in item 2 of the schedule; or on or after April 1, 1984, in the case of goods described in item 3 of the schedule. No payment of drawback in respect of goods exported referred to in section 3 shall be made where those goods were used for any purpose subsequent to manufacture or production and prior to export. Single row tapered roller bearings of an outside diameter not exceeding 6.625 inches and parts thereof originating in Japan. Fabrics woven from slit-film tapes of polyethylene resin uncoated, or coated or laminated on one or both sides with polyethylene film and originating in Japan. Mold steel originating in or exported from the Federal Republic of Germany.