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Bill S-23

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SUMMARY

This enactment amends the Customs Act to modernize the customs administration by

    (a) providing for the expedited movement of persons and goods into Canada;

    (b) providing for streamlined clearance procedures for low risk passengers by pre-arrival risk assessment of passenger information;

    (c) providing for new requirements in respect of the provision of information obtained under that Act;

    (d) providing for monetary penalties in respect of designated contraventions;

    (e) extending the time for requesting reviews and appeals beyond current time limits;

    (f) harmonizing provisions for the collection of amounts owing under that Act with those of the Income Tax Act and the Excise Tax Act;

    (g) making technical and housekeeping amendments; and

    (h) making related amendments to other Acts.

EXPLANATORY NOTES

Customs Act

Clause 1: (1) The definitions ``person'', ``prescribed'' and ``release'' in subsection 2(1) read as follows:

``person'', unless the context otherwise requires, includes a corporation, a partnership and an association;

``prescribed'' means

      (a) in respect of a form, the information to be provided on or with a form, or the manner of filing a form, prescribed by the Minister, and

      (b) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation;

``release'' means, in respect of goods, to authorize the removal of the goods from a customs office, sufferance warehouse, bonded warehouse or duty free shop for use in Canada;

(2) and (3) New.

(4) Subsection 2(3) reads as follows:

(3) Any power, duty or function of the Commissioner under this Act may be exercised or performed by any person, or by any officer within a class of officers, authorized by the Commissioner to do so and, if so exercised or performed, is deemed to have been exercised or performed by the Commissioner.

Clause 2: Section 3.1 reads as follows:

3.1 Interest computed at a prescribed rate or at a specified rate and any penalty computed at a rate per year under any provision of this Act (other than in respect of any amount in respect of duty levied under the Special Import Measures Act) shall be compounded daily and, where interest or such a penalty is computed in respect of an amount under a provision of this Act and is unpaid on the day it would, but for this section, have ceased to be computed under that provision, interest at the specified rate shall be computed and compounded daily on that unpaid interest or penalty from that day to the day it is paid and shall be paid as that provision required the amount to be paid.

Clause 3: Subsection 3.3(1.1) is new. Subsection 3.3(1) reads as follows:

3.3 (1) Notwithstanding any other provision of this Act, the Minister or any officer designated by the Minister for the purposes of this section may at any time waive or cancel all or any portion of any penalty or interest otherwise payable by a person under this Act.

Clause 4: New.

Clause 5: New.

Clause 6: New.

Clause 7: Section 8 reads as follows:

8. The Minister may prescribe any form or any information to be given on a form that is by this Act or the regulations to be prescribed and may include on any form so prescribed a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is true, accurate and complete.

Clause 8: (1) Subsection 8.1(7) reads as follows:

(7) For the purposes of this Act and the Customs Tariff, a document presented by the Minister purporting to be a print-out of a form received under this section shall be received as evidence and, in the absence of proof to the contrary, is proof of the form filed or otherwise provided under this section.

(2) The relevant portion of subsection 8.1(8) reads as follows:

(8) The Governor in Council may, on the recommendation of the Minister, make regulations for the operation of electronic systems or any other technology to be used in the administration of this Act or the Customs Tariff, including regulations respecting

Clause 9: Subsection 9(3) reads as follows:

(3) Where an officer so requests, a customs broker shall make available to the officer any records that he is required by the regulations to keep.

Clause 10: (1) Subsections 11(1) and (2) read as follows:

11. (1) Subject to this section, every person arriving in Canada shall, except in such circumstances and subject to such conditions as may be prescribed, forthwith present himself at the nearest customs office designated for that purpose that is open for business and answer truthfully any questions asked by an officer in the performance of his duties under this or any other Act of Parliament.

(2) Subsection (1) does not apply to any person who has presented himself outside Canada at a customs office designated for that purpose and has not subsequently stopped at any other place prior to his arrival in Canada unless an officer requires that person to comply therewith.

(2) New.

Clause 11: New.

Clause 12: The relevant portion of subsection 12(3) reads as follows:

(3) Goods shall be reported under subsection (1)

    (a) in the case of goods in the actual possession of a person arriving in Canada, or that form part of his baggage where the person and his baggage are being carried on board the same conveyance, by that person;

Clause 13: Section 13 reads as follows:

13. Every person reporting goods under section 12 inside or outside Canada shall

    (a) answer truthfully any question asked by an officer with respect to the goods; and

    (b) where an officer so requests, present the goods to the officer, remove any covering from the goods, unload any conveyance or open any part thereof, or open or unpack any package or container that the officer wishes to examine.

Clause 14: Subsection 17(2) reads as follows:

(2) Subject to this Act, the rates of duties on imported goods shall be the rates applicable to the goods at the time they are accounted for under subsection 32(1), (2) or (5).

Clause 15: The relevant portion of subsection 18(2) reads as follows:

(2) Subject to subsection (3), any person who reports goods under section 12, and any person for whom that person acts as agent or employee while so reporting, are jointly and severally liable for all duties levied on the goods unless one or the other of them proves, within such time as may be prescribed, that the duties have been paid or that the goods

Clause 16: (1) The relevant portion of subsection 19(1) reads as follows:

19. (1) Subject to section 20, any person who is authorized by an officer to do so may

(2) New.

(3) The relevant portion of subsection 19(2) reads as follows:

(2) Subject to section 20, where goods that have been reported under section 12 have been described in the prescribed form at a customs office designated for that purpose, any person who is authorized by an officer to do so may

Clause 17: (1) The relevant portion of subsection 20(2) reads as follows:

(2) Every person who transports or causes to be transported within Canada goods that have been imported but have not been released is liable for all duties thereon unless he proves, within such time as may be prescribed, that the goods were

(2) New.

Clause 18: Subsection 22(1) reads as follows:

22. (1) Subject to subsection (2), every person who

    (a) transports or causes to be transported goods into Canada, or

    (b) transports or causes to be transported within Canada goods that have been imported but have not been released

shall keep in Canada such records for such period of time and in such manner as may be prescribed and shall, where an officer so requests, make them available to the officer and answer truthfully any questions asked by the officer in respect of the records.

Clause 19: (1) The relevant portion of subsection 28(1) reads as follows:

28. (1) Subject to subsections (1.1) and (1.2), the operator of a sufferance warehouse, bonded warehouse or duty free shop is liable for all duties or taxes levied under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act or any other law relating to customs on goods that have been received therein unless the operator proves that the goods

(2) Subsection 28(1.1) reads as follows:

(1.1) In applying subsection (1) to an operator of a bonded warehouse in respect of the taxes and duties levied under the Excise Tax Act and section 20 of the Customs Tariff on cigars and manufactured tobacco that are delivered to the bonded warehouse after February 12, 1992 and are exported from the bonded warehouse after that date and before April 8, 1992, the reference in subsection (1) to ``section 19'' shall be read as a reference to ``paragraph 19(2)(b) or (c)''.

(3) Subsection 28(3) reads as follows:

(3) The definition ``duties'' in subsection 2(1) does not apply for the purposes of subsections (1), (1.1) and (2).

Clause 20: Section 31 reads as follows:

31. Subject to section 19, no goods shall be removed from a customs office, sufferance warehouse, bonded warehouse or duty free shop by any person other than an officer in the performance of his duties under this or any other Act of Parliament unless the goods have been released by an officer.

Clause 21: Subsections 32(2) and (3) read as follows:

(2) In such circumstances as may be prescribed, goods may be released prior to the accounting required under subsection (1) if the importer or owner of the goods makes an interim accounting in the prescribed manner and in the prescribed form containing the prescribed information, or in such form containing such information as is satisfactory to the Minister.

(3) Where goods are released under subsection (2), the person who made the interim accounting thereunder in respect of the goods shall, within the prescribed time, account for the goods in the manner described in paragraph (1)(a).

Clause 22: Subsection 32.2(6) reads as follows:

(6) The obligation under this section to make a correction to a declaration of tariff classification includes an obligation to correct a declaration of tariff classification that is rendered incorrect by a failure, after the goods are accounted for under subsection 32(1), (3) or (5), to comply with a condition imposed under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff or under any regulations made under that Act in respect of a tariff item in that List.

Clause 23: New.

Clause 24: Section 33.1 reads as follows:

33.1 Every person who fails to account for imported goods, or fails to account for imported goods in accordance with this Part and the regulations made under this Act, is liable to a penalty of $100 for each failure.

Clause 25: Section 33.3 reads as follows:

33.3 Every person who fails to comply with section 33.2 with respect to a notice served on the person under that section is liable, in addition to any other penalty provided for in this Part, to a penalty equal to the greater of

    (a) $250, and

    (b) 5% of the amount of duties payable on the goods designated in the notice.

Clause 26: Section 33.4 reads as follows:

33.4 (1) Subject to subsection (4), any person who is liable to pay an amount of duties in respect of imported goods (other than any amount in respect of duty levied under the Special Import Measures Act) shall pay, in addition to the amount, interest at the specified rate for the period beginning on the first day after the day the person became liable to pay the amount and ending on the day the amount has been paid in full, calculated on the outstanding balance of the amount.

(2) [Repealed, 1995, c. 41, s. 9]

(3) For the purposes of subsection (1), any duties in respect of goods payable under paragraph 59(3)(a) or 65(1)(a) are deemed to have become payable on the day duties became payable in respect of the goods under this Part.

(4) If an amount of duties in respect of goods that is payable by a person under paragraph 59(3)(a) or 65(1)(a) in accordance with a determination, re-determination or further re-determination is paid by the person within thirty days after the day (in this subsection referred to as the ``decision day'') the determination, re-determination or further re-determination, as the case may be, is made, interest is not payable under subsection (1) on the amount for the period beginning on the day after the decision day and ending on the day the amount is paid.

(5) Where a person is liable to a penalty under section 33.1, 33.3 or 33.6, the person shall pay, in addition to the penalty, interest at the specified rate for the period beginning on the day after the day the person became liable to the penalty and ending on the day the penalty has been paid in full, calculated on the outstanding balance of the penalty.

(6) Any person who is liable to pay tax under Division III of Part IX of the Excise Tax Act in respect of an amount of duty levied under subsection 11(1) or paragraph 60(1)(a) of the Special Import Measures Act shall pay, in addition to that tax, interest at the prescribed rate in respect of each month or fraction of a month in the period beginning thirty days after the day the tax became payable and ending on the day the tax has been paid in full, calculated on the outstanding balance of the tax.

Clause 27: Section 33.6 reads as follows:

33.6 Every person who fails to pay any amount in accordance with a notice served under section 33.5 is liable, in addition to any other penalty provided for in this Part, to a penalty equal to the greater of

    (a) $250, and

    (b) 5% of the amount of duties payable on the goods designated in the notice.

Clause 28: (1) The relevant portion of subsection 33.7(2) reads as follows:

(2) Where the time within which a person must account for goods is extended under subsection (1),

    . . .

    (b) if the person accounts for the goods within the time as so extended, no penalty shall be imposed pursuant to section 33.1 or 33.3; and

(2) The relevant portion of subsection 33.7(3) reads as follows:

(3) Where the time within which a person must pay any amount owing as duties is extended under subsection (1),

    . . .

    (b) if the person pays that amount within the time as so extended,

      (i) subsection 33.4(1) shall apply in respect of that amount as if the time had not been so extended, but interest payable under that subsection in respect of that amount shall be computed at the prescribed rate rather than at the specified rate, and

      (ii) section 33.6 shall not apply in respect of a failure to pay the amount; and

Clause 29: Section 33.8 reads as follows:

33.8 For the purposes of sections 33.1 to 33.6, ``duties'' do not include any amount in respect of duty levied under the Special Import Measures Act.

Clause 30: (1) Subsection 35.02(1) reads as follows:

35.02 (1) Every person who fails to comply with section 35.01 is liable to a penalty of $250 for each failure to comply.

(2) Subsection 35.02(3) reads as follows:

(3) Every person who fails to comply with a notice served on the person under subsection (2) in respect of goods is liable, in addition to any penalty provided for under subsection (1), to a penalty of $2000 or such lesser amount as the Minister may direct.

(3) The relevant portion of subsection 35.02(4) reads as follows:

(4) Where a person imports goods of a prescribed class from a NAFTA country, that person is not liable to a penalty under this section unless

(4) Subsection 35.02(5) reads as follows:

(5) Any person who is liable to pay a penalty under this section shall pay, in addition to the penalty, interest at the specified rate for the period beginning on the day after the day on which the person became liable to the penalty and ending on the day on which the penalty has been paid in full, calculated on the outstanding balance of the penalty.

Clause 31: Subsections 40(1) to (3) read as follows:

40. (1) Every person who imports goods or causes goods to be imported for sale or for any industrial, occupational, commercial, institutional or other like use or any other use that may be prescribed shall keep at the person's place of business in Canada or at such other place in Canada as may be designated by the Minister such records in respect of those goods in such manner and for such period of time as may be prescribed and shall, where an officer so requests, make them available to the officer and answer truthfully any questions asked by the officer in respect of the records.

(2) Where, in the opinion of the Minister, a person has not kept records in Canada in accordance with subsection (1), the Minister may request that person to keep records in Canada and to comply with subsection (1) in respect thereof.

(3) Every person who is

    (a) granted a licence under section 24,

    (b) authorized under paragraph 32(6)(a) or subsection 32(7) to account for goods,

    (c) granted a certificate under section 90 of the Customs Tariff, or

    (d) granted a licence under section 91 of that Act,

shall keep at that person's place of business or at such other place as may be designated by the Minister such records in respect of such goods in such manner and for such period of time as may be prescribed and shall, where an officer so requests, make them available to the officer and answer truthfully any questions asked by the officer in respect of the records.

Clause 32: Section 42 reads as follows:

42. An officer may at all reasonable times enter any premises or place where records are kept pursuant to section 40 and audit or examine such records.

Clause 33: Section 42.01 reads as follows:

42.01 An officer, or an officer within a class of officers, designated by the Minister for the purposes of this section, may conduct a verification of origin (other than a verification of origin referred to in section 42.1), verification of tariff classification or verification of value for duty in respect of imported goods in the manner that is prescribed.

Clause 34: (1) Subsection 42.3(2) reads as follows:

(2) Subject to subsection (4), a re-determination or further re-determination of origin does not take effect until notice of it is given to the importer of the goods and any person who completed and signed a Certificate of Origin for the goods if the result of the re-determination or further re-determination of origin made under subsection 59(1) in respect of goods for which preferential tariff treatment under NAFTA or preferential tariff treatment under CCFTA is claimed and that are the subject of a verification of origin under this Act is that

    (a) the goods are not eligible for that preferential tariff treatment on the basis of the tariff classification or value of one or more materials used in their production; and

    (b) that tariff classification or value differs from the tariff classification or value applied to those materials by the NAFTA country from which the goods were exported or from Chile, as the case may be.

(2) Subsection 42.3(4) reads as follows:

(4) The date on which a re-determination or further re-determination of origin referred to in subsection (2) takes effect shall be postponed for a period not exceeding ninety days if the importer of the goods that are the subject of the re-determination or further re-determination, or any person who completed and signed a Certificate of Origin for the goods, establishes to the satisfaction of the Minister that the importer or the person, as the case may be, has relied in good faith, to the detriment of the importer or person, on the tariff classification or value applied to the materials referred to in that subsection by the customs administration of the NAFTA country from which the goods were exported or of Chile, as the case may be.

Clause 35: Subsection 43(1) reads as follows:

43. (1) The Minister may, for any purposes related to the administration or enforcement of this Act, by registered letter or by a demand served personally, require any person to produce at a place specified by the Minister any books, letters, accounts, invoices, statements (financial or otherwise) or other documents within such reasonable time as may be stipulated therein.

Clause 36: Paragraph 43.1(1)(c) is new. Subsection 43.1(1) reads as follows:

43.1 (1) Any officer, or any officer within a class of officers, designated by the Minister for the purposes of this section shall, before goods are imported, on application by any member of a prescribed class that is made within the prescribed time, in the prescribed manner and in the prescribed form containing the prescribed information, give an advance ruling with respect to

    (a) whether the goods qualify as originating goods and are entitled to the benefit of preferential tariff treatment under a free trade agreement; and

    (b) in the case of goods exported from a NAFTA country or from Chile, any other matter concerning those goods that is set out in paragraph 1 of Article 509 of NAFTA or in paragraph 1 of Article E-09 of CCFTA, as the case may be.

Clause 37: Subsection 51(6) reads as follows:

(6) In this section, ``time of importation'' means, in respect of goods, the date on which an officer authorizes, pursuant to this Act, the release of the goods.

Clause 38: Section 54 reads as follows:

54. For the purposes of sections 45 to 55, where goods are exported to Canada from any country but pass in transit through another country, the goods shall, subject to such terms and conditions as may be prescribed, be deemed to be shipped directly to Canada from the first mentioned country.

Clause 39: (1) and (2) Subsections 57.01(1) and (2) read as follows:

57.01 (1) Any officer, or any officer within a class of officers, designated by the Minister for the purposes of this section may, at or before the time goods imported from a NAFTA country are accounted for under subsection 32(1), (3) or (5), in the prescribed manner and subject to the prescribed conditions, make a determination as to whether the goods have been marked in the manner referred to in section 35.01 and shall give notice of the determination to the prescribed persons.

(2) If an officer does not make a determination under subsection (1) in respect of goods imported from a NAFTA country at or before the time the goods are accounted for under subsection 32(1), (3) or (5), a determination as to whether the goods have been marked in the manner referred to in section 35.01 shall be deemed to have been made in accordance with any representations that have been made in respect of the marking of the goods by the person who accounted for the goods.

Clause 40: The relevant portion of section 57.1 reads as follows:

57.1 For the purposes of sections 58 to 70,

    . . .

    (b) the tariff classification of imported goods is to be determined in accordance with section 10 of the Customs Tariff, unless otherwise provided in that Act; and

Clause 41: (1) The relevant portion of subsection 59(1) reads as follows:

59. (1) An officer, or any officer within a class of officers, designated by the Minister for the purposes of this section may

    (a) re-determine the origin, tariff classification or value for duty of imported goods under section 58 at any time within

(2) Subsection 59(2) reads as follows:

(2) An officer who makes a determination under subsection 58(1) or a re-determination or further re-determination under subsection (1) shall without delay give notice of the determination, re-determination or further re-determination, including the rationale on which it is made, to the prescribed persons.

(3) The relevant portion of subsection 59(3) reads as follows:

(3) If a determination is made under subsection 58(1) or a re-determination or further re-determination is made under subsection (1) in respect of goods, such persons who were given notice under subsection (2) as may be prescribed shall, in accordance with the determination, re-determination or further re-determination, as the case may be,

    (a) pay any amount owing, or additional amount owing, as the case may be, as duties in respect of the goods or, where a request is made under section 60, pay that amount or give security satisfactory to the Minister in respect of that amount and any interest owing or that may become owing on that amount; or

(4) Subsection 59(4) reads as follows:

(4) Any amount owing by or to a person under subsection (3) or 66(3) in respect of goods, other than an amount in respect of which security is given, is payable within thirty days after the day the person is given notice of the decision under subsection (2), whether or not a request is made under section 60.

Clause 42: (1) Subsections 60(1) and (2) read as follows:

60. (1) A person to whom notice is given under subsection 59(2) in respect of goods may, within ninety days after being given the notice, request a re-determination or further re-determination of origin, tariff classification or value for duty. The request may be made only after all amounts owing as duties and interest in respect of the goods are paid or security satisfactory to the Minister is given in respect of the total amount owing.

(2) A person who is given an advance ruling under section 43.1, or who is given notice of a marking determination made under subsection 57.01(1), may, within ninety days after the time the person is given the advance ruling or the notice, request a review of the advance ruling or a re-determination of the marking determination.

(2) and (3) The relevant portion of subsection 60(4) reads as follows:

(4) On receipt of a request under this section, the Commissioner shall, without delay,

    . . .

    (b) affirm, revise or reverse the advance ruling; or

    (c) re-determine the marking determination.

Clause 43: New.

Clause 44: The relevant portion of subsection 61(1) reads as follows:

61. (1) The Commissioner may

    . . .

    (b) re-determine or further re-determine the marking determination of imported goods

      . . .

      (ii) at any time, if the person who is given notice of a marking determination under section 57.01 fails to comply with any provision of this Act or the regulations or commits an offence under this Act in respect of the goods,

Clause 45: (1) The relevant portion of subsection 65(1) reads as follows:

65. (1) If a re-determination or further re-determination is made under paragraph 60(4)(a) or 61(1)(a) or (c) in respect of goods, such persons who are given notice of the decision as may be prescribed shall, in accordance with the decision,

    (a) pay any additional amount owing as duties in respect of the goods or, where an appeal is taken under section 67, give security satisfactory to the Minister in respect of that amount and any interest owing or that may become owing on that amount; or

(2) Subsection 65(2) reads as follows:

(2) Any amount owing by or to a person under subsection (1) or 66(3) in respect of goods, other than an amount in respect of which security is given, is payable within thirty days after the day the person is given notice of the decision, whether or not an appeal is taken under section 67.

Clause 46: New.

Clause 47: (1) Subsection 66(1) reads as follows:

66. (1) If the amount paid by a person on account of duties expected to be owing under paragraph 59(3)(a) or 65(1)(a) exceeds the amount of duties, if any, owing under that paragraph as a result of a determination, re-determination or further re-determination, the person shall be paid, in addition to the excess amount, interest at the prescribed rate for the period beginning on the first day after the day the amount was paid and ending on the day the determination, re-determination or further re-determination, as the case may be, was made, calculated on the excess amount.

(2) Subsection 66(3) reads as follows:

(3) A person who is given a refund under paragraph 59(3)(b) or 65(1)(b) of an amount paid shall be given, in addition to the refund, interest at the prescribed rate for the period beginning on the first day after the day the amount was paid and ending on the day the refund is given, calculated on the amount of the refund.

Clause 48: Subsection 67(1) reads as follows:

67. (1) A person aggrieved by a decision of the Commissioner made under section 60 or 61 may appeal from the decision to the Canadian International Trade Tribunal by filing a notice of appeal in writing with the Commissioner and the Secretary of the Canadian International Trade Tribunal within ninety days after the time notice of the decision was given.

Clause 49: New.

Clause 50: Subsection 69(1) reads as follows:

69. (1) Where an appeal is taken under section 67 or 68 in respect of goods and the person who appeals has paid any amount as duties and interest in respect of the goods, the person shall, on giving security satisfactory to the Minister in respect of the unpaid portion of the duties and interest owing in respect of the goods and the whole or any portion of the amount paid as duties and interest (other than interest that was paid by reason of duties not being paid in accordance with subsection 32(5) or section 33) in respect of the goods, be given a refund of the whole or any portion of the amount paid in respect of which security is given.

Clause 51: (1) The relevant portion of subsection 74(3) reads as follows:

(3) No refund shall be granted under subsection (1) in respect of a claim unless

    (a) the person making the claim affords an officer reasonable opportunity to examine the goods in respect of which the claim is made or otherwise verify the reason for the claim; and

(2) New.

Clause 52: Subsection 76(1) reads as follows:

76. (1) Subject to any regulations made under section 81, the Minister may, in such circumstances as may be prescribed, grant to any person by whom duties were paid on imported goods that are defective, are of a quality inferior to that in respect of which duties were paid or are not the goods ordered, a refund of the whole or part of the duties paid thereon if the goods have, subsequently to the importation, been disposed of in a manner acceptable to the Minister at no expense to Her Majesty in right of Canada or exported.

Clause 53: Section 80 reads as follows:

80. (1) Any person who is granted a refund of duties (other than amounts in respect of duty levied under the Special Import Measures Act) under section 74, 76 or 79 shall be granted, in addition to the refund, interest on the refund at the prescribed rate for the period beginning on the ninety-first day after the day an application for the refund is received in accordance with paragraph 74(3)(b) and ending on the day the refund is granted.

(2) Any person who is granted a refund under section 74, 76 or 79 of an amount in respect of duty levied under the Special Import Measures Act shall be granted, in addition to the refund, interest on the refund at the prescribed rate in respect of each month or fraction of a month in the period beginning on the ninety-first day after the day an application for the refund is received in accordance with paragraph 74(3)(b) and ending on the day the refund is granted.

Clause 54: Subsection 80.2(2) reads as follows:

(2) If an abatement or refund is granted to a person under paragraph 74(1)(f) and the goods are sold or otherwise disposed or are subsequently used in a manner that fails to comply with a condition imposed under a tariff item in the List of Tariff Provisions in the schedule to the Customs Tariff, the person who was granted the refund or abatement

    (a) shall, within ninety days after the failure to comply, report the failure to an officer at a customs office; and

    (b) is, from the day of the failure to comply, liable to repay to Her Majesty in right of Canada any amount to which they are not entitled, together with any interest that was granted to the person under section 80 or 80.1 on that amount.

Clause 55: (1) The relevant portion of subsection 95(3) reads as follows:

(3) Every person reporting goods under subsection (1) shall

    . . .

    (b) where an officer so requests, present the goods to the officer, remove any covering from the goods, unload any conveyance or open any part thereof, or open or unpack any package or container that the officer wishes to examine.

(2) Subsection 95(4) reads as follows:

(4) Where goods are required by the regulations to be reported under subsection (1) in writing, they shall be reported in the prescribed form containing the prescribed information or in such form containing such information as is satisfactory to the Minister.

Clause 56: Subsection 97.1(3) reads as follows:

(3) A person who has completed and signed a certificate in accordance with subsection (1) and who has reason to believe that it contains incorrect information shall immediately notify all persons to whom the certificate was given of the correct information.

Clause 57: Subsection 97.2(1) reads as follows:

97.2 (1) Every person who exports goods or causes them to be exported for sale or for any industrial, occupational, commercial, institutional or other like use or any other use that may be prescribed, and every other person who has completed and signed a certificate in accordance with subsection 97.1(1), shall keep at the place of business in Canada of that person or at any other place in Canada that may be designated by the Minister any records in respect of those goods in the manner and for the period that may be prescribed and shall, if an officer so requests, make them available to the officer and answer truthfully any questions asked by the officer in respect of the records.

Clause 58: New.

Clause 59: (1) to (6) Paragraph 99(1)(c.1) is new. Subsections 99(1) to (3) read as follows:

99. (1) An officer may

    (a) at any time up to the time of release, examine any goods that have been imported and open or cause to be opened any package or container of imported goods and take samples of imported goods in reasonable amounts;

    (b) at any time up to the time of release, examine any mail that has been imported and, subject to this section, open or cause to be opened any such mail that he suspects on reasonable grounds contains any goods referred to in the Customs Tariff, or any goods the importation of which is prohibited, controlled or regulated under any other Act of Parliament, and take samples of anything contained in such mail in reasonable amounts;

    (c) at any time up to the time of exportation, examine any goods that have been reported under section 95 and open or cause to be opened any package or container of such goods and take samples of such goods in reasonable amounts;

    (d) where the officer suspects on reasonable grounds that an error has been made in the tariff classification, value for duty or quantity of any goods accounted for under section 32, or where a refund or drawback is requested in respect of any goods under this Act or pursuant to the Customs Tariff, examine the goods and take samples thereof in reasonable amounts;

    (d.1) where the officer suspects on reasonable grounds that an error has been made with respect to the origin claimed or determined for any goods accounted for under section 32, examine the goods and take samples thereof in reasonable amounts;

    (e) where the officer suspects on reasonable grounds that this Act or the regulations or any other Act of Parliament administered or enforced by him or any regulations thereunder have been or might be contravened in respect of any goods, examine the goods and open or cause to be opened any package or container thereof; or

    (f) where the officer suspects on reasonable grounds that this Act or the regulations or any other Act of Parliament administered or enforced by him or any regulations thereunder have been or might be contravened in respect of any conveyance or any goods thereon, stop, board and search the conveyance, examine any goods thereon and open or cause to be opened any package or container thereof and direct that the conveyance be moved to a customs office or other suitable place for any such search, examination or opening.

(2) An officer may not open or cause to be opened any imported mail that weighs thirty grams or less unless the person to whom it is addressed consents or the person who sent it has completed and attached to the mail a label in accordance with article 116 of the Detailed Regulations of the Universal Postal Convention.

(3) An officer may cause imported mail that weighs thirty grams or less to be opened in his presence by the person to whom it is addressed or a person authorized by that person.

Clause 60: New.

Clause 61: Section 107.1 is new. Sections 107 and 108 read as follows:

107. (1) Except as authorized by section 108, no official or authorized person shall

    (a) knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister for the purposes of this Act or the Customs Tariff or by an authorized person for the purpose of carrying out an agreement made under subsection 147.1(3);

    (b) knowingly allow any person to inspect or to have access to any book, record, writing or other document obtained by or on behalf of the Minister for the purposes of this Act or the Customs Tariff or by an authorized person for the purpose of carrying out an agreement made under subsection 147.1(3); or

    (c) knowingly use, other than in the course of the duties of the official or authorized person in connection with the administration or enforcement of this Act or the Customs Tariff, any information obtained by or on behalf of the Minister for the purposes of this Act or the Customs Tariff or by an authorized person for the purpose of carrying out an agreement made under subsection 147.1(3).

(2) In subsection (1),

``authorized person'' means any person engaged or employed, or formerly engaged or employed,

      (a) by or on behalf of Her Majesty,

      (b) as, by or on behalf of an agent of Her Majesty, or

      (c) as, by or on behalf of an agent of an agent of Her Majesty

    to assist in carrying out the purposes and provisions of this Act or the Customs Tariff or an agreement made under subsection 147.1(3);

``official'' means any person employed in or occupying a position of responsibility in the service of Her Majesty, or any person formerly so employed or formerly occupying such a position.

108. (1) An officer may communicate or allow to be communicated information obtained under this Act or the Customs Tariff, or allow inspection of or access to any book, record, writing or other document obtained by or on behalf of the Minister for the purposes of this Act or the Customs Tariff, to or by

    (a) any officer or any person employed by the Canada Customs and Revenue Agency;

    (b) any person, or any person within a class of persons, that the Minister may authorize, subject to such conditions as the Minister may specify; or

    (c) any person otherwise legally entitled thereto.

(2) An officer may, on the order or subpoena of a court of record,

    (a) give evidence relating to information obtained by or on behalf of the Minister for the purposes of this Act or the Customs Tariff; or

    (b) produce any book, record, writing or other document obtained by or on behalf of the Minister for the purposes of this Act or the Customs Tariff.

(3) An officer may show any book, record, writing or other document obtained for the purposes of this Act or the Customs Tariff, or permit a copy thereof to be given, to the person by or on behalf of whom the book, record, writing or other document was provided, or to any person authorized to transact business under this Act or the Customs Tariff as that person's agent, at the request of any such person and on receipt of such fee, if any, as is prescribed.

(4) The Governor in Council may make regulations prescribing the circumstances in which fees may be charged for providing information, allowing inspection of or access to documents or making or certifying copies thereof pursuant to this section and the amount of any such fees.

Clause 62: Sections 109.1 and 109.11 read as follows:

109.1 Every person who fails to comply

    (a) with the terms and conditions on which a licence was issued under section 24 of this Act or section 91 of the Customs Tariff, or

    (b) with a regulation made under section 30 or 40 of this Act or any of paragraphs 99(f) to (i) or section 100 of the Customs Tariff,

is liable to a penalty of not less than one thousand dollars and not more than twenty-five thousand dollars, as the Minister may direct.

109.11 (1) In this section, ``duties payable'' means duties that have not been paid but does not include, for the purposes of calculating a penalty under subsection (2) or (3) in respect of a failure to comply with subsection 118(1) or (2), 121(1) or 122(1) of the Customs Tariff, an amount in respect of duty levied under the Special Import Measures Act.

(2) Every person who fails to comply with section 31, 32.2 or 80.2 of this Act or subsection 95(1), 118(1) or (2), 121(1) or 122(1) of the Customs Tariff is liable to a penalty equal to the total of

    (a) an amount equal to 5% of the duties payable, and

    (b) an amount equal to the product obtained when 1% of the duties payable that were unpaid when the amount was required to be paid, is multiplied by the number of complete months, not exceeding 12, from the day on which the amount was required to be paid to the day on which the amount was paid.

(3) Every person who fails to comply with section 31, 32.2 or 80.2 of this Act or subsection 95(1), 118(1) or (2), 121(1) or 122(1) of the Customs Tariff and by whom, at the time of failure, a penalty was payable under this subsection or subsection (2) in respect of a failure to comply in any of the three preceding years is liable to a penalty equal to the total of

    (a) an amount equal to 10% of the duties payable, and

    (b) an amount equal to the product obtained when 2% of the duties payable that were unpaid when the amount was required to be paid, is multiplied by the number of complete months, not exceeding 20, from the day on which the amount was required to be paid to the day on which the amount was paid.

Clause 63: Section 109.3 reads as follows:

109.3 (1) A penalty to which a person is liable under section 109.1, 109.11 or 109.2 may be assessed by an officer and, where such an assessment is made, an officer shall serve on the person a written notice of that assessment by sending or delivering it to the person.

(2) A person shall not be assessed penalties under both subsections 109.11(2) and (3), under both sections 109.1 and 109.2 or under both sections 109.11 and 109.2 in respect of the same contravention of this Act or the Customs Tariff or the regulations made under those Acts.

(3) An assessment under subsection (1) may be made in addition to a seizure under this Act or the service of a notice under section 124 in respect of the same contravention of this Act or the regulations.

Clause 64: Section 109.5 reads as follows:

109.5 A person on whom a notice of assessment of a penalty has been served under section 109.3 shall, unless a request for a decision of the Minister is made under subsection 129(1) in respect of the assessment, pay, in addition to the penalty, interest at the prescribed rate for the period beginning on the day after the notice was served on the person and ending on the day the penalty has been paid in full, calculated on the outstanding balance of the penalty, except that interest shall not be payable on the penalty if the penalty is paid in full within thirty days after the day the notice was served on the person.

Clause 65: Section 115 reads as follows:

115. (1) Where any record, book or document is examined or seized under this Act, the Minister, or the officer by whom the record, book or document is examined or seized, may make or cause to be made one or more copies thereof, and a copy of any such record, book or document purporting to be certified by the Minister or a person authorized by the Minister is admissible in evidence and has the same probative force as the original record, book or document would have if it had been proved in the ordinary way.

(2) No records, books or documents that have been seized as evidence under this Act shall be detained for a period of more than three months after the time of seizure, unless, before the expiration of that period,

    (a) the person from whom they were seized agrees to their further detention for a specified period of time;

    (b) a justice of the peace is satisfied on application that, having regard to the circumstances, their further detention for a specified period of time is warranted and he so orders; or

    (c) judicial proceedings are instituted in which the things seized may be required.

Clause 66: Section 123 reads as follows:

123. The forfeiture of goods or conveyances seized under this Act or any money or security held as forfeit in lieu thereof is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by section 129.

Clause 67: (1) and (2) New.

Clause 68: Section 127.1 is new. Section 127 reads as follows:

127. The debt due to Her Majesty as a result of a notice served under section 109.3 or a demand under section 124 is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by section 129.

Clause 69: Subsection 129(1) reads as follows;

129. (1) Any person

    (a) from whom goods or a conveyance is seized under this Act,

    (b) who owns goods or a conveyance that is seized under this Act,

    (c) from whom money or security is received pursuant to section 117, 118 or 119 in respect of goods or a conveyance seized under this Act, or

    (d) on whom a notice is served under section 109.3 or 124

may, within thirty days after the date of the seizure or the service of the notice under section 109.3 or 124, request a decision of the Minister under section 131 by giving notice in writing to the officer who seized the goods or conveyance or served the notice or caused it to be served, or to an officer at the customs office closest to the place where the seizure took place or the notice was served.

Clause 70: New.

Clause 71: Subsection 130(3) reads as follows:

(3) Evidence may be given pursuant to subsection (2) by affidavit made before any justice of the peace, commissioner for taking oaths or notary public.

Clause 72: (1) The relevant portion of subsection 131(1) reads as follows:

131. (1) After the expiration of the thirty days referred to in subsection 130(2), the Minister shall, as soon as is reasonably possible having regard to the circumstances, consider and weigh the circumstances of the case and decide

    . . .

    (c) in the case of a penalty under section 109.1 assessed against a person for failure to comply with a regulation referred to in that section or with the terms and conditions on which a licence was issued under section 24, whether the person so failed to comply with the regulation or the terms and conditions of the licence; or

    (d) in the case of a penalty under section 109.2 assessed against a person for a contravention of this Act or the regulations as described in that section, whether this Act or the regulations were so contravened.

(2) New.

Clause 73: The relevant portion of subsection 132(1) reads as follows:

132.(1) Subject to this or any other Act of Parliament,

. . .

    (b) where, as a result of a decision made by the Minister under paragraph 131(1)(c) or (d), the Minister decides that a penalty that was assessed under section 109.3 is not justified by the facts or the law, the Minister shall forthwith cancel the assessment of the penalty and authorize the return of any money paid on account of the penalty and any interest that was paid under section 109.5 in respect of the penalty.

Clause 74: (1) Subsection 133(1.1) reads as follows:

(1.1) Where, having regard to a decision made by the Minister under paragraph 131(1)(c) or (d), the Minister decides that the penalty under section 109.1 or 109.2 that was assessed is insufficient, the Minister may demand such additional amount of money as the Minister considers sufficient to increase the penalty to an amount not exceeding the maximum amount to which the person was liable under that section.

(2) Subsection 133(7) reads as follows:

(7) Where an amount of money is demanded under paragraph (1)(c) or subsection (1.1), the person to whom the demand is made shall, unless an appeal is pending on the matter, pay the amount demanded together with interest at the prescribed rate for the period beginning on the thirty-first day after the day notice is served under subsection 131(2) and ending on the day the amount has been paid in full, calculated on the outstanding balance of the amount.

Clause 75: Section 139.1 is new. Sections 138 and 139 read as follows:

138. (1) Where anything has been seized as forfeit under this Act, any person, other than the person in whose possession the thing was when seized, who claims an interest therein as owner, mortgagee, lien-holder or holder of any like interest may, within sixty days after such seizure, apply by notice in writing to the court for an order under section 139.

(2) A judge of the court to which an application is made under this section shall fix a day, which day shall be not less than thirty days after the date of the filing of the application, for the hearing thereof.

(3) A person who makes an application under this section shall serve notice of the application and of the hearing on the Commissioner, or an officer designated by the Commissioner for the purposes of this section, not later than fifteen days after a day for the hearing of the application is fixed pursuant to subsection (2).

(4) The service of a notice under subsection (3) is sufficient if it is sent by registered mail addressed to the Commissioner.

(5) In this section and sections 139 and 140, ``court'' means

    (a) in the Province of Ontario, the Superior Court of Justice;

    (b) in the Province of Quebec, the Superior Court;

    (c) in the Provinces of Nova Scotia and British Columbia, the Yukon Territory and the Northwest Territories, the Supreme Court;

    (d) in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of Queen's Bench;

    (e) [Repealed, 1992, c. 51, s. 45]

    (f) in the Provinces of Prince Edward Island and Newfoundland, the Trial Division of the Supreme Court; and

    (g) in Nunavut, the Nunavut Court of Justice.

139. Where, on the hearing of an application made under section 138, it is made to appear to the satisfaction of the court

    (a) that the applicant acquired the interest in respect of which he is applying in good faith prior to the contravention or use in respect of which the seizure was made,

    (b) that the applicant is innocent of any complicity in the contravention of this Act or the regulations or the use of a conveyance that resulted in the seizure and of any collusion in relation to that contravention or use, and

    (c) that the applicant exercised all reasonable care in respect of any person permitted to obtain possession of the thing seized to satisfy himself that it was not likely to be used in contravention of this Act or the regulations or, where the applicant is a mortgagee or lien-holder, that he exercised such care with respect to the mortgagor or lien-giver,

the applicant is entitled to an order declaring that his interest is not affected by such seizure and declaring the nature and extent of his interest at the time of the contravention or use.

Clause 76: Subsection 140(1) reads as follows:

140. (1) A person who makes an application under section 138 or the Crown may appeal to the court of appeal from an order made under section 139 and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court of appeal from orders or judgments of a court.

Clause 77: Subsection 141(1) reads as follows:

141. (1) The Commissioner or an officer designated by him shall, after forfeiture of a thing has become final and on application made to the Commissioner by a person who has obtained a final order under section 139 or 140 in respect of the thing, direct that

    (a) the thing be given to the applicant; or

    (b) an amount calculated on the basis of the interest of the applicant in the thing at the time of the contravention or use in respect of which the thing was seized, as declared in the order, be paid to him.

Clause 78: The heading before section 143 and sections 143 to 147 read as follows:

Collections

143. (1) Any duties, fee, charge or other amount owing to Her Majesty in right of Canada pursuant to this Act or the regulations, other than an amount referred to in subsection (2) or (3), constitutes a debt due to Her Majesty from and after the time such amount should have been paid, and any person from whom the amount is owing is in default unless, within thirty days after the time a notice of arrears is sent by mail addressed to him at his latest known address or delivered to that address, that person

    (a) pays the amount owing as indicated in the notice; or

    (b) where an appeal is available to him under section 144, appeals the notice thereunder.

(2) Any amount of money demanded as a penalty in a notice of assessment served under section 109.3 or demanded in a notice served under section 124, from and after the time of service, constitutes a debt due to Her Majesty from the person on whom the notice is served, and that person is in default unless, within thirty days after the time of service, the person

    (a) pays that amount; or

    (b) requests a decision of the Minister under section 131.

(3) Any amount of money demanded under paragraph 133(1)(c) or subsection 133(1.1), from and after the time notice is served under subsection 131(2), constitutes a debt due to Her Majesty from the person who requested the decision and that person is in default unless, within ninety days after the time of service, the person

    (a) pays the amount so demanded; or

    (b) where the person appeals the decision of the Minister under section 135, gives security satisfactory to the Minister.

144. A person to whom a notice of arrears is sent or delivered under subsection 143(1) may, if no appeal is or was available to that person under section 67 or 68 in respect of the same matter, within thirty days after that notice is sent, appeal the notice by way of an action in the Federal Court in which the person is the plaintiff and the Minister is the defendant.

145. (1) Any debt due to Her Majesty in respect of which there is a default of payment under section 143 or such part of any such debt that has not been paid, may be certified by the Minister.

(2) On production to the Federal Court, a certificate made under this section shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in the Court for a debt of the amount specified in the certificate.

(3) All reasonable costs and charges attendant on the registration of the certificate are recoverable in like manner as if they had been certified and the certificate had been registered under this section.

146. (1) Any goods imported or reported for exportation under section 95 on his own behalf by a person to whom a notice referred to in subsection 143(1), (2) or (3) has been sent, delivered or served, or any goods imported or reported for exportation on behalf of any such person, at any time after such notice is sent, delivered or served are subject to a lien for the amount demanded in the notice and may be detained by an officer at the expense of that person until such amount is paid.

(2) Where a person is in default of payment of a debt due to Her Majesty under section 143, the Minister, on giving thirty days notice by registered mail addressed to the person at his latest known address, may direct that any goods imported or reported for exportation by or on behalf of the person that have been detained under subsection (1), or any portion thereof, be sold by public auction or public tender or by the Minister of Supply and Services pursuant to the Surplus Crown Assets Act, subject to such regulations as may be prescribed.

(3) The proceeds of any sale under subsection (2) shall be applied to the payment of the debt referred to in that subsection, any expenses incurred by Her Majesty in right of Canada in respect of the goods sold and any duties thereon, and the surplus, if any, shall be paid to the person referred to in subsection (2).

147. Where a person is indebted to Her Majesty in right of Canada under this Act, the Minister may require the retention by way of deduction or set-off of such amount as the Minister may specify out of any amount that may be or become payable to that person by Her Majesty in right of Canada and, where an amount payable to a person under a provision of this Act has at any time been so retained, the amount shall be deemed to have been paid to the person at that time under that provision and to have been paid by the person at that time on account of the debt to Her Majesty.

Clause 79: New.

Clause 80: New.

Clause 81: Section 159.1 reads as follows:

159.1 Every person commits an offence who

    (a) fails to mark imported goods in the manner referred to in section 35.01;

    (b) marks imported goods in a deceptive manner so as to mislead another person as to the country or geographic origin of the goods; or

    (c) with intent to conceal the information given by or contained in the mark, alters, defaces, removes or destroys a mark on imported goods made as required by the regulations made under subsection 19(2) of the Customs Tariff.

Clause 82: (1) The relevant portion of section 160 reads as follows:

160. Every person who contravenes section 12, 13, 15 or 16, subsection 20(1), section 31 or 40, subsection 43(2), 95(1) or (3), 103(3) or 107(1) or section 153, 155 or 156 or commits an offence under section 159 or 159.1

(2) New.

Clause 83: Section 161 reads as follows:

161. Every person who contravenes any of the provisions of this Act not otherwise provided for in section 160 is guilty of an offence punishable on summary conviction and liable to a fine of not more than two thousand dollars and not less than two hundred dollars or to imprisonment for a term not exceeding six months or to both fine and imprisonment.

Clause 84: Subsections 163.5(1) and (2) read as follows:

163.5 (1) In addition to the powers conferred on an officer for the enforcement of this Act, a designated officer who is at a customs office and is performing the normal duties of an officer has, in relation to a criminal offence under any other Act of Parliament, the powers and obligations of a peace officer under sections 495 to 497 of the Criminal Code, and subsections 495(3) and 497(3) of that Act apply to the designated officer as if he or she were a peace officer.

(2) A designated officer who is at a customs office and is performing the normal duties of an officer has the powers and obligations of a peace officer under sections 254 and 256 of the Criminal Code and may, on demanding samples of a person's blood or breath under subsection 254(3) of that Act, require that the person accompany the officer, or a peace officer referred to in paragraph (c) of the definition ``peace officer'' in section 2 of that Act, for the purpose of taking the samples.

Clause 85: (1) and (2) Paragraph 164(1)(c) is new. The relevant portion of subsection 164(1) reads as follows:

164. (1) The Governor in Council may make regulations

    . . .

    (b) requiring, in such circumstances as may be prescribed, the owner or person in charge of a conveyance to give notice of the time and place of its arrival in Canada and such other information relating to its passengers or its movement inside or outside Canada as may be prescribed, and prescribing the time within which and the manner in which such notice is to be given;

(3) Subsections 164(3) and (4) read as follows:

(3) Subject to subsection (4), a copy of each regulation that the Governor in Council proposes to make under subsection (1) shall be published in the Canada Gazette at least sixty days before the proposed effective date thereof and a reasonable opportunity shall be afforded to interested persons to make representations with respect thereto.

(4) No proposed regulation need be published under subsection (3) that

    (a) grants an exemption or relieves a restriction;

    (a.01) implements, in whole or in part, a provision of a free trade agreement;

    (a.02) implements, in whole or in part, a provision of the Agreement as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act;

    (a.03) and (a.1) [Repealed, 1997, c. 14, s. 47]

    (a.2) gives effect, in whole or in part, to a public announcement made on or before the proposed effective date of the proposed regulation;

    (b) establishes or amends a fee;

    (c) has been published pursuant to subsection (3) whether or not it has been altered or amended after such publication as a result of representations made by interested persons as provided in that subsection; or

    (d) makes no material substantive change in an existing regulation.

Canada Post Corporation Act

Clause 87: (1) New.

(2) Subsection 42(3) reads as follows:

(3) A customs officer shall deal with all mail submitted to him under this section in accordance with the laws relating to customs and the importation of goods and, subject to such laws, shall deliver such mail to the addressee thereof, on payment of any postage due thereon, or shall return it to the Corporation.

Customs Tariff

Clause 88: (1) Subsections 123(1) to (3) read as follows:

123. (1) Any person who is liable under subsection 114(1) to pay an amount, other than an amount in respect of duty levied under the Special Import Measures Act, shall pay, in addition to the amount, interest at the specified rate for the period beginning on the first day after the refund or drawback was granted and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

(2) Subject to subsection (4), a person who is liable under subsection 118(1) or (2) to pay an amount, other than an amount in respect of duty levied under the Special Import Measures Act, shall pay, in addition to the amount, interest at the specified rate for the period beginning on the day that the liability was incurred and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

(3) Subject to subsection (4), a person who is liable under section 121 or 122 to pay an amount, other than an amount in respect of duty levied under the Special Import Measures Act, shall pay, in addition to the amount, interest at the specified rate for the period beginning on the first day after the production of the by-product or merchantable scrap or waste and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

(2) Subsections 123(5) and (6) read as follows:

(5) A person who is liable under paragraph 118(1)(b) or section 121 or 122 to pay an amount in respect of duty levied under the Special Import Measures Act shall pay interest at the prescribed rate in respect of each month or fraction of a month during the period beginning on the ninety-first day after the day the amount became payable and ending on the day the amount is paid in full, calculated on the amount of the balance outstanding.

(6) A person who is liable under section 98, subsection 114(1) or paragraph 118(2)(b) to repay the amount of a drawback or relief in respect of duty levied under the Special Import Measures Act and any interest on the drawback shall pay, in addition to those amounts, interest at the prescribed rate in respect of each month or fraction of a month during the period beginning on the first day after the day the drawback was granted or the person failed to comply with a condition to which the relief was subject, as the case may be, and ending on the day those amounts are repaid in full, calculated on the amount of the balance outstanding.

Clause 89: Section 124 reads as follows:

124. Interest computed at a prescribed rate or at a specified rate, other than in respect of an amount in respect of duty levied under the Special Import Measures Act, shall be compounded daily and, if interest computed in respect of an amount under a provision of this Act is unpaid on the day it would, but for this section, have ceased to be computed under that provision, interest at the specified rate, computed and compounded daily on the unpaid interest from that day to the day it is paid, shall be paid in the same manner as the provision requires the principal amount to be paid.

Clause 90: Subsection 127(2) reads as follows:

(2) A person who, under a provision of this Part other than section 115, is granted a drawback or refund of an amount in respect of duty levied under the Special Import Measures Act shall be granted, in addition to the drawback or refund, interest on it at the prescribed rate in respect of each month or fraction of a month during the period beginning on the ninety-first day after the day an application for the drawback or refund is made in accordance with this Part and ending on the day the drawback or refund is granted.

Special Import Measures Act

Clause 91: (1) The definition ``release'' in subsection 2(1) reads as follows:

``release'', in respect of goods, means to authorize the removal of the goods from a customs office, sufferance warehouse, bonded warehouse or duty free shop for use in Canada;

(2) New.

Clause 92: (1) and (2) Subsections 8(1) to (1.2) read as follows:

8. (1) Where the Deputy Minister makes a preliminary determination of dumping or subsidizing in an investigation under this Act and considers that the imposition of provisional duty is necessary to prevent injury, retardation or threat of injury, the importer of dumped or subsidized goods that are of the same description as any goods to which the preliminary determination applies and that are released during the period commencing on the day the preliminary determination is made and ending on the earlier of

    (a) the day on which the Deputy Minister causes the investigation to be terminated pursuant to subsection 41(1) with respect to goods of that description, and

    (b) the day on which the Tribunal makes an order or finding with respect to goods of that description,

shall, on demand of the Deputy Minister for payment of provisional duty on the imported goods,

    (c) pay or cause to be paid on the imported goods provisional duty in an amount not greater than the estimated margin of dumping of or the estimated amount of subsidy on the imported goods, or

    (d) post or cause to be posted security in a prescribed form and in an amount or to a value not greater than the estimated margin of dumping of or the estimated amount of subsidy on the imported goods,

at the option of the importer.

(1.1) Where an order or finding of the Tribunal under subsection 43(1), 76(4.1) respecting a review pursuant to subsection 76(2.1), or 91(3), other than an order or finding described in any of sections 3 to 6, is referred back to the Tribunal under subsection 77.015(3) or (4) or 77.019(5), or under subsection 77.15(3) or (4) or 77.19(4), the importer of dumped or subsidized goods that are of the same description as any goods to which the order or finding applies and that are released during the period commencing on the day on which the preliminary determination is made and ending on the day on which the Tribunal makes an order or finding, on the referral back, with respect to goods of that description, shall, on demand of the Deputy Minister for payment of provisional duty on the imported goods, at the option of the importer,

    (a) pay or cause to be paid on the imported goods provisional duty in an amount not greater than the estimated margin of dumping of, or the estimated amount of subsidy on, the imported goods; or

    (b) post or cause to be posted security in the prescribed form and in an amount or to a value not greater than the estimated margin of dumping of, or the estimated amount of subsidy on, the imported goods.

(1.2) If an order or finding of the Tribunal under subsection 43(1), 76.02(4) respecting a review under subsection 76.02(1), or 91(3), other than an order or finding described in any of sections 3 to 6, is referred back to the Tribunal by the Federal Court of Appeal, the importer of dumped or subsidized goods that are of the same description as any goods to which the order or finding applies and that are released during the period beginning on the day on which the preliminary determination under subsection 38(1) is made and ending on the day on which the Tribunal makes an order or finding, on the referral back, with respect to goods of that description, shall, on demand of the Commissioner for payment of provisional duty on the imported goods, at the option of the importer,

    (a) pay or cause to be paid on the imported goods provisional duty in an amount not greater than the estimated margin of dumping of, or the estimated amount of subsidy on, the imported goods; or

    (b) post or cause to be posted security in the prescribed form and in an amount or to a value not greater than the estimated margin of dumping of, or the estimated amount of subsidy on, the imported goods.

(3) Subsections 8(3) and (4) read as follows:

(3) Where any provisional duty is returned to an importer pursuant to subsection (2), the importer shall be paid interest thereon at the prescribed rate or at a rate determined in the prescribed manner in respect of each month or fraction of a month between the time the duty was paid and the time it is returned.

(4) Where interest owing under this section is less than ten dollars, no interest shall be paid.

(4) and (5) Subsection 8(6) reads as follows:

(6) Where the Deputy Minister terminates an undertaking pursuant to subsection 51(1) or 52(1) with respect to dumped or subsidized goods, the collection of provisional duties on those goods is resumed and the importer of dumped or subsidized goods that are of the same description as any goods to which the preliminary determination applied and that are released during the period beginning on the day on which the undertaking was terminated and ending on the earlier of

    (a) the day on which the Deputy Minister causes the investigation to be terminated pursuant to subsection 41(1) with respect to goods of that description, and

    (b) the day on which the Tribunal makes an order or finding with respect to goods of that description,

shall, on demand of the Deputy Minister for payment of provisional duty on the imported goods,

    (c) pay or cause to be paid on the imported goods provisional duty in an amount not greater than the estimated margin of dumping of, or the estimated amount of the subsidy on, the imported goods, or

    (d) post or cause to be posted security in a prescribed form and in an amount or to a value not greater than the estimated margin of dumping of, or the estimated amount of the subsidy on, the imported goods,

at the option of the importer.

Clause 93: Section 11 reads as follows:

11. (1) The importer in Canada of any goods imported into Canada in respect of which duty, other than provisional duty, is payable shall, on demand of the Deputy Minister and notwithstanding any security posted pursuant to paragraph 8(1)(d) or subsection 13.2(4), pay or cause to be paid all such duties on the goods.

(2) Any person who fails to pay any amount owing under subsection (1) shall pay, in addition to the amount owing, interest at the prescribed rate or at a rate determined in the prescribed manner in respect of each month or fraction of a month commencing thirty days after the Deputy Minister makes a demand under subsection (1) during which any amount remains outstanding, calculated on the amount outstanding.

(3) Where interest owing under this section is less than ten dollars, no interest shall be paid.

Clause 94: Section 13.1 reads as follows:

13.1 (1) Any person to whom any amount of duty paid is returned under section 9.4, 12 or 13 shall be paid, in addition to the amount returned, interest thereon at the prescribed rate or at a rate determined in the prescribed manner in respect of each month or fraction of a month between the time the duty was paid and the time the amount is returned.

(2) Where interest owing under this section is less than ten dollars, no interest shall be paid.

Clause 95: Subsection 13.2(4) reads as follows:

(4) An importer of goods that are of the same description as any goods to which a review under subsection (3) applies and that are released during the period beginning on the day the review is initiated and ending on the day on which the Deputy Minister completes the review shall, on demand of the Deputy Minister for payment of duty, post, or cause to be posted, security in the prescribed manner and form and in an amount, or of a value, equal to the margin of dumping of, or amount of subsidy on, the goods.

Clause 96: The relevant portion of subsection 60(1) reads as follows:

60. (1) Where, in accordance with section 57 or 59, a re-determination as to whether any goods are goods described in paragraph 56(1)(a) or a re-determination of the normal value or export price of or the amount of subsidy or export subsidy on the goods has been made,

    . . .

    (b) the whole or a part of any duty paid in respect of the goods shall be returned to the importer forthwith,

if on the re-determination it is determined that the additional duty is payable or that the whole or the part of the duty paid was not payable, as the case may be.

Clause 97: New.

Clause 98: Section 62.1 reads as follows:

62.1 (1) Any person who fails to pay any amount owing under paragraph 60(1)(a) shall pay, in addition to the amount owing, interest at the prescribed rate or at a rate determined in the prescribed manner in respect of each month or fraction of a month commencing thirty days after the amount became outstanding during which any amount remains outstanding, calculated on the amount outstanding.

(2) Any person who is given a refund under paragraph 60(1)(b) of an amount paid shall be given, in addition to the refund, interest at the prescribed rate or at a rate determined in the prescribed manner in respect of each month or fraction of a month between the time the amount was paid and the time the refund is given, calculated on the amount of the refund.

(3) Where interest owing under this section is less than ten dollars, no interest shall be paid.

Tax Court of Canada Act

Clause 100: Subsection 2.2(2) reads as follows:

(2) For the purposes of this Act, the ``amount in dispute'' in an appeal means

    (a) the amount of tax, net tax and rebate, within the meaning of Part IX of the Excise Tax Act, that is in issue in the appeal;

    (b) any interest or penalty under Part IX of the Excise Tax Act that is in issue in the appeal; and

    (c) any amount of tax, net tax or rebate, within the meaning of Part IX of the Excise Tax Act, that is likely to be affected by the appeal in any other appeal, assessment or proposed assessment of the person who has brought the appeal.

Clause 101: (1) Subsection 12(1) reads as follows:

12. (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Canada Pension Plan, the Cultural Property Export and Import Act, the Employment Insurance Act, Part IX of the Excise Tax Act, the Income Tax Act, the Old Age Security Act and the Petroleum and Gas Revenue Tax Act, where references or appeals to the Court are provided for in those Acts.

(2) Subsections 12(3) and (4) read as follows:

(3) The Court has exclusive original jurisdiction to hear and determine questions referred to it under section 173 or 174 of the Income Tax Act or section 310 or 311 of the Excise Tax Act.

(4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under section 166.2 or 167 of the Income Tax Act, subsection 103((1) of the Employment Insurance Act, section 304 or 305 of the Excise Tax Act, subsection 28(1) of the Canada Pension Plan or section 33.2 of the Cultural Property Export and Import Act.

Clause 102: Subsection 18.18(2) reads as follows:

(2) For the purpose of calculating a time limit for the purposes of section 18.3003 or 18.3005,

    (a) the period beginning on December 21 in any year and ending on January 7 of the next year shall be excluded; and

    (b) the period during which proceedings are stayed in accordance with subsection 327(4) of the Excise Tax Act shall be excluded.

Clause 103: Subsection 18.29(3) reads as follows:

(3) The provisions referred to in subsection (1) also apply, with such modifications as the circumstances require, in respect of applications for extensions of time under section 166.2 or 167 of the Income Tax Act, section 304 or 305 of the Excise Tax Act, subsection 103(1) of the Employment Insurance Act, subsection 28(1) of the Canada Pension Plan or section 33.2 of the Cultural Property Export and Import Act.

Clause 104: Section 18.3001 reads as follows:

18.3001 Subject to section 18.3002, where a person has so elected in the notice of appeal for an appeal under Part IX of the Excise Tax Act or at such later time as is provided in the rules of Court, this section and sections 18.3003 to 18.302 apply, with such modifications as the circumstances require, in respect of the appeal.

Clause 105: Subsection 18.3002(3) reads as follows:

(3) The Court shall, on making an order under subsection (1), order that all reasonable and proper costs of the person who has brought the appeal be borne by Her Majesty in right of Canada where

    (a) the amount in dispute is equal to or less than $7,000; and

    (b) the aggregate of supplies for the prior fiscal year of that person is equal to or less than $1,000,000.

Clause 106: Subsection 18.3003(1) reads as follows:

18.3003 (1) Subject to subsection (2), the Minister of National Revenue shall file a reply to the notice of appeal referred to in section 18.3001 within sixty days after the day the Registry of the Court transmits to that Minister the notice of appeal, unless the person who has brought the appeal consents, before or after the sixty day period has elapsed, to the filing of that reply after the expiration of those sixty days or the Court allows the Minister, on application made before or after the expiration of those sixty days, to file the reply after that period.

Clause 107: Subsection 18.3007(1) reads as follows:

18.3007 (1) Where the following conditions are met, namely,

    (a) an order has been made under subsection 18.3002(1) in respect of an appeal,

    (b) the appeal is not an appeal referred to in subsection 18.3002(3),

    (c) the amount in dispute in the appeal is equal to or less than $50,000, and

    (d) the aggregate of supplies for the prior fiscal year of the person who brought the appeal is equal to or less than $6,000,000,

the Court may, where the circumstances so warrant,

    (e) make no order as to costs or order that the person who brought the appeal be awarded costs, notwithstanding that under the rules of Court costs would be adjudged to Her Majesty in right of Canada, or

    (f) make an order that that person be awarded costs, notwithstanding that under the rules of Court no order as to costs would be made.

Clause 108: Section 18.3008 reads as follows:

18.3008 Where the Minister of National Revenue makes an application for judicial review in accordance with section 28 of the Federal Court Act of a judgment on an appeal referred to in section 18.3001, the reasonable and proper costs of the person who brought the appeal in respect of the application shall be borne by Her Majesty in right of Canada where the appeal was an appeal for which

    (a) the amount in dispute was equal to or less than $7,000; and

    (b) the aggregate of supplies for the prior fiscal year of that person was equal to or less than $1,000,000.

Clause 109: Subsection 18.3009(1) reads as follows:

18.3009 (1) Where an appeal referred to in section 18.3001 is allowed, the Court

    (a) shall reimburse to the person who brought the appeal the filing fee paid under paragraph 18.15(3)(b) by that person; and

    (b) where the judgment reduces the amount of tax, net tax, rebate, interest and penalties in issue in the appeal by more than one-half, may award costs, in accordance with the rules of Court, to the person who brought the appeal where

      (i) the amount in dispute was equal to or less than $7,000, and

      (ii) the aggregate of supplies for the prior fiscal year of that person was equal to or less than $1,000,000.

Clause 110: Subsection 18.31(2) reads as follows:

(2) Where an application has been made under section 310 of the Excise Tax Act for the determination of a question, sections 17.1, 17.2 and 17.4 to 17.8 apply, with such modifications as the circumstances require, in respect of the determination of the question.

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