24 May 2000

Customs Notice N-326 and D Memorandum D15-2-29

The following information has been published:

N-326 Goods Entering Canada as Replacement Parts or Goods Under a Warranty Arrangement

D15-2-29 Canned Ham

Customs Notice N-326 advises of a proposed change to Section 5 of Schedule VII to the Excise Tax Act and the documentation requirements for goods entering Canada under the provisions of this section. Under the revised Section 5, replacement parts and replacement goods sent to a particular person under a warranty arrangement qualify for GST/HST relief. This includes replacement parts or replacement goods sent to a particular person under a warranty arrangement to be incorporated into real property.

Section 5 does not apply where changes are made for the repair work, the replacement part, or the replacement good. The replacement part or replacement good must be supplied under a warranty for no consideration other than shipping and handling charges.

D15-2-29 refers to the application of countervailing duty to the importation of canned ham from Denmark and the Netherlands, pursuant to section 3 of the Special Import Measures Act, as a result of a finding by the CITT.