Commercial Samples Remission Order
C.R.C., c. 751FINANCIAL ADMINISTRATION ACT
Order Respecting the Remission of Taxes Imposed under Division III Of Part IX and under any Other Part of the Excise Tax Act and Customs Duties Imposed under Section 21 of the Customs Tariff, Paid or Payable on Commercial Samples Temporarily Imported for Exhibition or DemonstrationShort Title
1 This Order may be cited as the Commercial Samples Remission Order.
2 In this Order,
carnet means an A.T.A. (Admission Temporaire — Temporary Admission) Carnet referred to in the Customs Convention on the A.T.A. Carnet for the Temporary Admission of Goods; (carnet)
chief officer of customs
chief officer of customs, with respect to an area or place, means the manager of the customs office or customs offices that serve that area or place; (agent en chef des douanes)
collector[Repealed, SI/88-18, s. 2]
commercial sample means
(a) any goods that are representative of a particular category of goods produced outside Canada and that are imported solely for the purpose of being exhibited or demonstrated to solicit orders for similar goods to be supplied from outside Canada, and
(b) any films, charts, projectors and scale models, and similar items, imported solely for the purpose of illustrating a particular category of goods produced outside Canada to solicit orders for similar goods to be supplied from outside Canada; (échantillon commercial)
foreign supplier means a non-resident of Canada. (fournisseur étranger)
SI/88-18, s. 2.
3 Subject to sections 4 and 5, remission is hereby granted of all taxes imposed under Division III of Part IX and under any other Part of the Excise Tax Act and customs duties imposed under section 21 of the Customs Tariff, paid or payable on any commercial sample imported into Canada on or after January 1, 1991 for a temporary period.
SI/88-18, s. 2;
SI/91-8, s. 2;
SI/98-10, s. 2.
4 (1) The remission mentioned in section 3 shall be granted only if
(a) the importer is
(i) a non-resident of Canada, or
(ii) a resident of Canada who is an employee or agent of a foreign supplier, acts on behalf of the foreign supplier and negotiates sales contracts only in the name of the foreign supplier;
(b) the commercial sample, while in Canada, will remain in the ownership of a non-resident of Canada;
(c) in respect of a commercial sample whose value exceeds $1,000, the importer
(i) indicates, at the time of importation, the places in Canada where he intends to exhibit or demonstrate the sample and, on demand, satisfies the Minister of National Revenue that the sample is at the places indicated, and
(ii) maintains records of the commercial sample pursuant to section 40 of the Customs Act and regulations made thereunder, while it is in Canada and produces the records for inspection on request by an officer employed in the administration of the Customs Act or the Excise Tax Act;
(d) the commercial sample will not be exhibited or demonstrated in Canada by anyone other than the importer;
(e) goods ordered as a result of the exhibition or demonstration of the commercial sample will not be supplied from within Canada; and
(f) subject to subsection (2), the commercial sample will be exported from Canada within one year of the date of importation.
(2) The Deputy Minister of National Revenue may extend the one-year period mentioned in paragraph (1)(f) by an additional six months in any case where, in his opinion, it is impracticable or impossible for the importer to comply with that one-year period.
SI/88-18, s. 2;
SI/98-10, s. 3.
5 (1) Where the commercial sample being imported into Canada for a temporary period is not accompanied by a valid carnet, the chief officer of customs may require the importer to give security to ensure compliance with the conditions set out in paragraphs 4(1)(a) to (f), in an amount not exceeding the aggregate of the taxes imposed under Division III of Part IX and under any other Part of the Excise Tax Act and the customs duties imposed under section 21 of the Customs Tariff, that would be payable if this Order did not apply.
(2) Security given under subsection (1) shall be deposited with the chief officer of customs and shall be in the form of
(b) a certified cheque;
(c) a transferable bond issued by the Government of Canada; or
(d) a bond issued by
(i) an entity that is licensed or otherwise authorized under the laws of Canada or of a province to carry on the fidelity or surety class of insurance business and that is recommended to the Treasury Board by the Office of the Superintendent of Financial Institutions as an entity whose bonds may be accepted by the Government of Canada,
(ii) a member of the Canadian Payments Association referred to in section 4 of the Canadian Payments Association Act,
(iii) a corporation that accepts deposits insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépôts du Québec to the maximums permitted by the statutes under which those institutions are established,
(iv) a credit union, as defined in subsection 137(6) of the Income Tax Act, or
(v) a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by Her Majesty in right of a province.
(3) Security given pursuant to this section shall be refunded or cancelled when the commercial sample in respect of which it was given has been
(a) released and accounted for under the Customs Act,
(b) destroyed, with such destruction certified by a customs officer, police officer or fire marshall, or
(c) exported, with such exportation certified by a customs officer on a form entitled “Temporary Admission Permit” obtained from the Department of National Revenue,
within the time period allowed in respect of the article under section 4.
SI/78-127, s. 1;
SI/86-162, s. 1;
SI/87-187, s. 1(E);
SI/88-18, s. 2;
SI/91-8, s. 2;
SI/96-44, s. 1;
SI/98-10, s. 4.
6 Where there is non-compliance with any of the conditions set out in paragraphs 4(1)(a) to (f), the commercial sample in respect of which the violation occurs shall forthwith be entered for consumption.