(v) preserving,
	(vi) separating defective goods from prime quality goods,
	(vii) sorting or grading, and
	(viii) trimming, filing, slitting or cutting.
``bonded warehouse'' « entrepôt de stockage »	``bonded warehouse'' has the meaning assigned by subsection 2(1) of the Customs Act.
``customer's good'' « produit de client »	``customer's good'', in respect of a particular person, means tangible personal property of another person that the particular person imports, or obtains physical possession of in Canada, for the purpose of supplying a service or added property in respect of the tangible personal property.
``domestic inventory'' « stocks intérieurs »	``domestic inventory'' of a person means tangible personal property that the person acquires in Canada, or acquires outside Canada and imports, for the purpose of selling the property separately for consideration in the ordinary course of a business carried on by the person.
``export revenue'' « recettes d'exportation »	``export revenue'' of a particular person for a fiscal year means the total of all amounts each of which is consideration, included in determining the specified total revenue of the person for the year, for
	(a) a supply by way of sale of an item of domestic inventory of the person that is made outside Canada or included in Part V of Schedule VI (other than sections 2.1, 3, 11, 14 and 15.1 of that Part);
	(b) a supply by way of sale of added property acquired by the person for the purpose of processing in Canada particular property where the particular property, or all the products resulting from that processing, as the case may be, are exported, after that processing is complete, without being consumed, used, transformed or further processed, manufactured or produced in Canada by another person except to the extent reasonably necessary or incidental to the transportation of the particular property or those products; or
	(c) a supply of a service of processing, storing or distributing tangible personal property of another person if the property, or all the products resulting from that processing, as the case may be, are exported, after the processing in Canada, if any, by the particular person is complete, without being consumed, used, transformed or further processed, manufactured or produced in Canada by any person other than the particular person except to the extent reasonably necessary or incidental to the transportation of that property or those products.
``export revenue percentage'' « pourcentage de recettes d'exportation »	``export revenue percentage'' of a person for a year means the proportion (expressed as a percentage) that the person's export revenue for the year is of the person's specified total revenue for the year.
``finished inventory'' « stocks finis »	``finished inventory'' of a person means property of the person (other than capital property) that is in the state at which it is intended to be sold by the person, or to be used by the person as added property, in the course of a business carried on by the person.
``labelling'' « étiquetage »	``labelling'' includes marking, tagging and ticketing.
``packing'' « emballage »	``packing'' includes unpacking, repacking, packaging and repackaging.
``processing'' « traitement »	``processing'' includes adjusting, altering, assembling and any basic service.
``specified total revenue'' « recettes totales déterminées »	``specified total revenue'' of a person for a fiscal year of the person means the total of all amounts each of which is consideration, included in determining the income from a business of the person for the year, for a supply made by the person (or that would be made by the person but for any provision of this Part that deems the supply to be made by another person), other than
	(a) a supply of a service in respect of property that the person neither imports nor obtains physical possession of in Canada for the purpose of providing the service;
	(b) a supply by way of sale of particular property that the person acquires for the purpose of selling the particular property (or selling other property to which the particular property has been added or with which the particular property has been combined) for consideration but that is neither acquired in Canada nor imported by the person;
	(c) a supply by way of sale of added property that the person acquires for the purpose of processing tangible personal property that the person neither imports nor obtains physical possession of in Canada; and
	(d) a supply by way of sale of capital property of the person.
``substantial alteration of property'' « modification sensible »	``substantial alteration of property'' by a person, in respect of a fiscal year of the person, means
	(a) manufacturing or producing, or engaging another person to manufacture or produce, property (other than capital property of the person) at any time in the year in the course of a business carried on by the person; or
	(b) any processing undertaken by or for the person during the year to bring property of the person to a state at which the property or the product of that processing is finished inventory of the person, if
	(i) the person's percentage value added attributable to non-basic services in respect of finished inventory of the person for the year exceeds 10%, and
	(ii) the person's percentage total value added in respect of finished inventory of the person for the year exceeds 20%.
Value added attributable to non-basic services in respect of finished inventory	(2) A person's percentage value added attributable to non-basic services in respect of finished inventory of the person for a fiscal year of the person is the amount (expressed as a percentage) determined by the formula
	A/B
	where
	A is the total of all amounts each of which
	(a) is part of the total cost to the person of all property that was finished inventory of the person supplied, or used as added property, by the person during the year, and
	(b) is reasonably attributable to
	(i) salary, wages or other remuneration paid or payable to employees of the person, excluding any amounts that are reasonably attributable to the performance of basic services, or
	(ii) consideration paid or payable by the person to engage other persons to perform processing, excluding any portion of such consideration that is reasonably attributed by the other persons to tangible personal property supplied in connection with that processing or that is reasonably attributable to the performance of basic services, and
	B is the total cost to the person of the proper ty.
Total value added in respect of finished inventory	(3) The percentage total value added in respect of finished inventory of a person for a fiscal year of the person is the amount (expressed as a percentage) that would be determined for the year by the formula in subsection (2) if the total for A in that subsection did not exclude any amounts that are reasonably attributable to the performance of basic services.
Value added attributable to non-basic services in respect of customers' goods	(4) A person's percentage value added attributable to non-basic services in respect of customers' goods for a fiscal year of the person is the amount (expressed as a percentage) determined by the formula
	A/(A + B)
	where
	A is the total of all consideration, included in determining the income from a business of the person for the year, for supplies of ser vices, or of added property, in respect of customers' goods, other than the portion of such consideration that is reasonably at tributable to the performance of basic ser vices or to the provision of added property used in the performance of basic services, and
	B is the total of the base values of the cus tomers' goods.
Total value added in respect of customers' goods	(5) A person's percentage total value added in respect of customers' goods for a fiscal year of the person is the percentage that would be determined for the year by the formula in subsection (4) if the total for A in that subsection did not exclude any amounts that are reasonably attributable to the performance of basic services or the provision of added property used in the performance of basic services.
Non-arm's length transactions	(6) For the purpose of determining a particular person's export revenue percentage or an amount under any of subsections (2) to (5) in respect of finished inventory of a particular person or customers' goods in respect of a particular person, if a supply between the particular person and another person with whom the particular person is not dealing at arm's length is made for no consideration or for less than fair market value and any consideration for the supply would be included in determining the income from a business of the particular person for a year, the supply is deemed to have been made for consideration equal to fair market value and that consideration is deemed to be included in determining that income.
Export distribution centre certificate	(7) The Minister may, on the application of a person who is registered under Subdivision d of Division V and who is engaged exclusively in commercial activities, authorize the person to use, beginning on a particular day in a fiscal year of the person and subject to such conditions as the Minister may from time to time specify, a certificate (in this section referred to as an ``export distribution centre certificate'') for the purposes of section 1.2 of Part V of Schedule VI and section 11 of Schedule VII, if it can reasonably be expected that
	(a) the person will not engage in the substantial alteration of property in the year;
	(b) either the person's percentage value added attributable to non-basic services in respect of customers' goods for the year will not exceed 10% or the person's percentage total value added in respect of customers' goods for the year will not exceed 20%; and
	(c) the person's export revenue percentage for the year will be at least 90%.
Application	(8) An application for an authorization to use an export distribution centre certificate shall be made in prescribed form containing prescribed information and be filed with the Minister in prescribed manner.
Notice of authorization	(9) If the Minister authorizes a person to use an export distribution centre certificate, the Minister shall notify the person in writing of the authorization, its effective date and its expiry date and the number assigned by the Minister that identifies the person or the authorization and that must be disclosed by the person when providing the certificate for the purpose of section 1.2 of Part V of Schedule VI or when accounting for imported goods in accordance with section 11 of Schedule VII.
Revocation	(10) The Minister may, after giving a person to whom an authorization has been granted under subsection (7) reasonable written notice, revoke the authorization, effective on a day in a particular fiscal year of the person, if
	(a) the person fails to comply with any condition attached to the authorization or with any provision of this Part;
	(b) it can reasonably be expected that
	(i) one or both of the conditions described in paragraphs (7)(a) and (b) would not be met if the fiscal year referred to in those paragraphs were the particular fiscal year, or
	(ii) the person's export revenue percentage for the particular fiscal year will be less than 80%; or
	(c) the person has requested in writing that the authorization be revoked as of that day.
Deemed revocation	(11) Subject to subsection (10), an authorization granted to a person under subsection (7) is deemed to have been revoked, effective immediately after a fiscal year of the person, if
	(a) the person had engaged in the substantial alteration of property in that year;
	(b) the person's percentage value added attributable to non-basic services in respect of customers' goods for the year exceeds 10% and the person's percentage total value added in respect of customers' goods for the year exceeds 20%; or
	(c) the person's export revenue percentage for the year is less than 80%.
Cessation	(12) An authorization granted under subsection (7) to a person ceases to have effect immediately before the earlier of
	(a) the day on which a revocation of the authorization becomes effective, and
	(b) the day that is three years after the day on which the authorization became effective.
Application after revocation	(13) If an authorization granted to a person under subsection (7) is revoked, effective on a particular day, the Minister shall not grant to the person another authorization under that subsection that becomes effective before
	(a) if the authorization was revoked in circumstances described in paragraph (10)(a), the day that is two years after the particular day; and
	(b) in any other case, the first day of the second fiscal year of the person beginning after the particular day.
	(2) Subsection (1) is deemed to have come into force on January 1, 2001.
1997, c. 10, s. 77(1)	20. (1) Subsections 278.1(2) to (4) of the Act are replaced by the following:
Filing of return by electronic filing	(2) A person who is required to file with the Minister a return under this Part, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.
1997, c. 10, s. 77(1)	(2) Subsection 278.1(5) of the Act is renumbered as subsection 278.1(3).
	(3) Subsections (1) and (2) are deemed to have come into force on October 4, 2000.
1997, c. 10, s. 243(1)	21. (1) Section 2 of Part I of Schedule V to the Act is replaced by the following:
	2. A particular supply by way of sale of a residential complex or an interest in a residential complex made by a particular person who is not a builder of the complex or, if the complex is a multiple unit residential complex, an addition to the complex, unless
	(a) the particular person claimed an input tax credit in respect of the last acquisition by the person of the complex or in respect of an improvement to the complex acquired, imported or brought into a participating province by the person after the complex was last acquired by the person; or
	(b) the recipient is registered under Subdivision d of Division V of Part IX of the Act and
	(i) the recipient made a taxable supply by way of sale (in this paragraph referred to as the ``prior supply'') of the complex or interest to a person (in this paragraph referred to as the ``prior recipient'') who is the particular person or, if the particular person is a personal trust other than a testamentary trust, the settlor of the trust or, in the case of a testamentary trust that arose as a result of the death of an individual, the deceased individual,
	(ii) the prior supply is the last supply by way of sale of the complex or interest to the prior recipient,
	(iii) the particular supply is not made more than one year after the particular day that is the day on which the prior recipient acquired the interest, or that is the earlier of the day on which the prior recipient acquired ownership of the complex and the day on which the prior recipient acquired possession of the complex, under the agreement for the prior supply,
	(iv) the complex has not been occupied by any individual as a place of residence or lodging after the construction or last substantial renovation of the complex was substantially completed,
	(v) the particular supply is made pursuant to a right or obligation of the recipient to purchase the complex or interest that is provided for under the agreement for the prior supply, and
	(vi) the recipient makes an election under this section jointly with the particular person in prescribed form containing prescribed information and filed with the Minister with the recipient's return in which the recipient is required to report the tax in respect of the particular supply.
	(2) Subsection (1) applies to supplies made after October 4, 2000.
1997, c. 10, s. 90(1)	22. (1) Paragraph 9(2)(a) of Part I of Schedule V to the Act is replaced by the following:
	(a) a supply of real property that is, immediately before the time ownership or possession of the property is transferred to the recipient of the supply under the agreement for the supply, capital property used primarily