Duration of application

(2) This section ceases to have effect on December 31, 2002.

Surtaxes

Surtax

78. (1) If at any time it appears to the satisfaction of the Governor in Council, on a report of the Minister, that Canada's external financial position and its balance of payments are such as to require special measures respecting Canadian imports, the Governor in Council may, by order, subject goods that originate in a country or that are entitled to any tariff treatment under regulations made under section 16, or any class of such goods, to a surtax that is in addition to the duties imposed under this Act.

Amount of surtax

(2) A surtax referred to in subsection (1) may differ in amount for different goods or classes of goods.

Order ceases to have effect unless approved by Parliament

(3) An order the period of which is longer than 180 days ceases to have effect on the one hundred and eightieth day after it is made if Parliament is then sitting or, if Parliament is not then sitting, at the end of the fifteenth sitting day of the next sitting of Parliament, unless before that day the order is approved by a resolution adopted by both Houses of Parliament.

Meaning of ``sitting day''

(4) For the purposes of subsection (3), a day on which either House of Parliament sits is deemed to be a sitting day.

Goods in Transit

Goods in transit

79. An order made under subsection 53(2) or 55(1), section 60 or subsection 63(1), 69(2), 70(2), 72(1), 75(1) or 76(1) may provide that goods that are in transit to Canada at the time the order comes into force are entitled to the tariff treatment that was applicable to those goods immediately before that time.

PART 3

DUTIES RELIEF

Interpretation

Definitions

80. The definitions in this section apply in this Part.

``customs duties''
« droits de douane »

``customs duties'', other than for the purposes of sections 95 and 96, means customs duties imposed under Part 2, other than surtaxes imposed under section 53, 55, 60, 63, 68 or 78 or temporary duties imposed under any of sections 69 to 76.

``duties''
« droits »

``duties'', other than for the purposes of section 106, means duties or taxes levied or imposed on imported goods under Part 2, under the Excise Tax Act, the Excise Act or the Special Import Measures Act or under any other Act of Parliament relating to customs, but for the purposes of sections 89 and 113 does not include the goods and services tax.

``excise taxes''
« taxes d'accise »

``excise taxes'' means the taxes imposed under the Excise Tax Act other than the goods and services tax.

``goods and services tax''
« taxe sur les produits et services »

``goods and services tax'' means the tax imposed under Part IX of the Excise Tax Act.

``process''
« transfor-
mation »

``process'', in respect of goods, includes the adjustment, alteration, assembly, manufacture, modification, production or repair of the goods.

Part binds Her Majesty

81. This Part is binding on Her Majesty in right of Canada or of a province.

DIVISION 1

REDUCTION OF RATES OF CUSTOMS DUTY

Amendment of List of Tariff Provisions and the ``F'' Staging List

82. (1) The Governor in Council may, on the recommendation of the Minister, by order, amend the List of Tariff Provisions and the ``F'' Staging List in respect of goods used in the production of other goods or the provision of services, subject to any conditions and for any period that may be set out in the order.

Repeal or amendment

(2) At any time before the expiration of an order made under subsection (1), the Governor in Council may, on the recommendation of the Minister, by subsequent order, repeal or amend the order subject to any conditions and for any period that may be set out in the subsequent order.

Maximum rate

(3) A rate specified in an order made under subsection (1) or (2) may not exceed the rate of customs duty that would have been set out in the List of Tariff Provisions or in the ``F'' Staging List in respect of those goods if no order were made under this section.

Retroactivity

(4) An order made under subsection (1) or (2) may, if it so provides, be retroactive and have effect in respect of a period before it is made, but no such order may have effect in respect of a period before this section comes into force.

Exception

(5) An order made under subsection (2) that increases a rate of customs duty may not have effect in respect of a period before the date the order is published in the Canada Gazette.

Regulations

(6) The Governor in Council may, on the recommendation of the Minister, make regulations for carrying out the purposes of this section.

DIVISION 2

IMPORTATION WITHOUT FULL PAYMENT OF DUTIES

Reduced Value for Duty

Goods of heading No. 98.04

83. In the case of goods that are imported by a traveller, that are reported in accordance with regulations made under paragraph 133(f) prescribing conditions for the classification of goods under heading No. 98.04 and that, but for the fact that their value for duty as determined under section 46 of the Customs Act exceeds the maximum value specified under tariff item No. 9804.10.00, 9804.20.00 or 9804.30.00, would be classified under one of those tariff items,

    (a) in the case of goods that would have been classified under tariff item No. 9804.10.00 or 9804.20.00, the value for duty of the goods shall be reduced by an amount equal to that maximum specified value and, in the case of alcoholic beverages and tobacco, the quantity of those goods shall, for the purposes of assessing duties, be reduced by the quantity of alcoholic beverages and tobacco up to the maximum quantities specified in tariff item No. 9804.10.00 or 9804.20.00, as the case may be;

    (b) in the case of goods that would have been classified under tariff item No. 9804.30.00,

      (i) the value for duty of the goods shall be reduced by an amount equal to the maximum value specified under tariff item No. 9804.10.00 or 9804.20.00, as the case may be, and

      (ii) the first $300 of the value for duty shall be assessed duties under tariff item No. 9804.30.00; and

    (c) the goods shall be classified under tariff items in any of Chapters 1 to 97 and heading No. 98.26, as the case may be.

Goods of tariff item No. 9805.00.00

84. Goods that, but for the fact that their value for duty as determined under section 46 of the Customs Act exceeds the value specified under tariff item No. 9805.00.00, would be classified under that tariff item, shall be classified under Chapters 1 to 97 and their value for duty reduced by that specified value.

Goods of tariff item No. 9816.00.00

85. Goods that, but for the fact that their value for duty as determined under section 46 of the Customs Act exceeds the value specified under tariff item No. 9816.00.00, would be classified under that tariff item, shall be classified under Chapters 1 to 97 and their value for duty reduced by that specified value.

Regulations

86. The Governor in Council may, on the recommendation of the Minister, make regulations respecting the conditions under which, or circumstances in which, sections 83 to 85 apply.

Goods of tariff item No. 9971.00.00

87. (1) Notwithstanding subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00

    (a) that are entitled to the Mexico Tariff is the value of the repairs or alterations made to those goods in Mexico; and

    (b) that are entitled to the Mexico-United States Tariff is the value of the repairs or alterations made to those goods in one or more NAFTA countries.

Limitation

(2) Subsection (1) ceases to have effect on December 31, 2002.

Ethno-cultural Groups

Goods of tariff item No. 9937.00.00

88. A group desiring to be recognized as an ethno-cultural group for the purposes of tariff item No. 9937.00.00 shall submit an application to the Minister of National Revenue supported by evidence that the group satisfies the criteria set out in that tariff item.

Duty Deferral

Relief

89. (1) Subject to subsection (2), section 95 and any regulations made under section 99, if an application for relief is made within the prescribed time, in accordance with subsection (4), by a person of a prescribed class, relief may be granted from the payment of duties that would but for this section be payable in respect of imported goods that are

    (a) released and subsequently exported in the same condition in which they were imported;

    (b) released, processed in Canada and subsequently exported;

    (c) released and directly consumed or expended in the processing in Canada of goods that are subsequently exported;

    (d) released, if the same quantity of domestic or imported goods of the same class is processed in Canada and subsequently exported; or

    (e) released, if the same quantity of domestic or imported goods of the same class is directly consumed or expended in the processing in Canada of goods that are subsequently exported.

Exception for tobacco products or designated goods

(2) Relief of the duties or taxes levied or imposed under the Excise Act, the Excise Tax Act or section 21 may not be granted under subsection (1) on tobacco products or designated goods.

Deemed exportation

(3) For the purposes of subsection (1), goods are deemed to have been exported if they are

    (a) designated as ships' stores by regulations made under paragraph 99(g) and supplied for use on board a conveyance of a class prescribed under that paragraph;

    (b) used for the equipment, repair or reconstruction of ships or aircraft of a class prescribed under paragraph 99(d);

    (c) delivered to a telegraph cable ship of a class prescribed under paragraph 99(d);

    (d) supplied for exportation to a department or agency of, or a corporation owned, controlled or operated by, the Government of Canada or the government of a province, that is designated by the Minister of National Revenue;

    (e) placed in a bonded warehouse or duty free shop for exportation, or placed in a bonded warehouse for use in accordance with paragraph (a) or (c);

    (f) transferred from a person who has been issued a certificate under section 90 to another person who has been issued such a certificate; or

    (g) used or destined for use in any other prescribed manner.

Application

(4) An application for relief under subsection (1) must be in a form and contain information satisfactory to the Minister of National Revenue.

Certificate

90. (1) Subject to regulations made under paragraph 99(e), the Minister of National Revenue may issue a numbered certificate to a person of a prescribed class referred to in section 89.

Amendment, suspension, etc., of certificate

(2) The Minister of National Revenue may, subject to regulations made under paragraph 99(e), amend, suspend, renew, cancel or reinstate a certificate issued under subsection (1).

Release of goods

(3) Goods in respect of which relief is granted under section 89 may be released without payment of the duties relieved under that section if the number of the certificate issued under subsection (1) is disclosed when the goods are accounted for under section 32 of the Customs Act and the certificate is in force at that time.

Minister may issue licence for operation of bonded warehouse

91. (1) If the Minister of National Revenue considers it advisable, that Minister may issue a licence for the operation of any place as a bonded warehouse to a person who meets the qualifications prescribed by regulations made under subparagraph 99(f)(i) and any requirements or conditions set out in this Act, the Customs Act and the regulations under both Acts respecting the operation of that place.

Licence restriction

(2) Subject to regulations made under paragraph 99(f), the Minister of National Revenue may impose in a licence issued under subsection (1) any restriction as to the classes of goods that may be received, or the circumstances under which goods may be received, in the bonded warehouse.

Amendment of licence

(3) The Minister of National Revenue may, subject to regulations made under paragraph 99(f), amend, suspend, renew, cancel or reinstate a licence issued under subsection (1).

Security

(4) A person to whom a licence is issued under subsection (1) shall, at the request of the Minister of National Revenue, provide security, of a type and in accordance with the conditions that may be prescribed, in an amount satisfactory to that Minister.

Duties not payable in respect of goods in bonded warehouse

92. (1) Subject to section 31 of the Customs Act and to any regulations made under paragraph 99(f) or section 100, if a bonded warehouse licence has been issued under section 91, duties imposed on goods that are delivered to the bonded warehouse are not payable until the goods are removed from the bonded warehouse.

Relief on goods removed from bonded warehouse

(2) Relief shall be granted from the payment of duties that, but for this section, would be payable in respect of goods removed from a bonded warehouse that are

    (a) subject to section 95, exported directly from the bonded warehouse; or

    (b) designated as ships' stores by regulations made under paragraph 99(g), supplied for use on board a conveyance of a class prescribed by regulations under that paragraph and exported.

Submission of evidence

93. If relief has been granted under section 89 or 92, the Minister of National Revenue may require the submission of evidence satisfactory to that Minister for the purpose of administering section 95.

Definition of ``customs duties''

94. (1) In sections 95 and 96, ``customs duties'' means customs duties imposed under Part 2, other than additional customs duties levied under section 21, surtaxes imposed under section 53, 55, 60, 63, 68 or 78 or temporary duties imposed under any of sections 69 to 76.

For greater certainty

(2) For greater certainty, in sections 95 and 96, ``customs duties'' does not include any duties or taxes levied or imposed on imported goods under the Excise Act, the Excise Tax Act or the Special Import Measures Act.

Repayment of relief

95. (1) If relief is granted under section 89 or 92 in respect of goods that are subsequently exported to a NAFTA country on or after the effective date determined under subsection (3),

    (a) the person who exported the goods shall, within 60 days after exporting the goods, report the exportation in the prescribed manner to an officer at a customs office and pay the portion of the duties relieved under that section that are customs duties; and

    (b) subject to subsections (4) to (6), notwithstanding any other provision of this Part, the person who exported the goods and any other person who was granted the relief are, from the time of exporting the goods, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the portion of the duties relieved under that section that are customs duties.

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.

Effective date

(3) For the purposes of subsection (1), the effective date for the exportation of goods to a NAFTA country is

    (a) in respect of exports to the United States or Mexico of goods referred to in paragraph 8 of Article 303 of the North American Free Trade Agreement, January 1, 1994;

    (b) in respect of other exports to the United States, January 1, 1996;

    (c) in respect of other exports to Mexico, January 1, 2001; and

    (d) in respect of exports to any other NAFTA country, the date fixed by order of the Governor in Council on the recommendation of the Minister.

Reduction of amount repayable

(4) The amount of the customs duties levied under subsection (1) in respect of goods other than goods referred to in paragraph 8 of Article 303 of the North American Free Trade Agreement shall be reduced in accordance with subsection (5) if, within 60 days after the goods are exported, evidence satisfactory to the Minister of National Revenue is submitted to that Minister that customs duties in respect of the exportation of the goods have been paid to the government of a NAFTA country other than Canada.