116. Relief under section 89 or 101 may be refused if, at the time the relief is authorized or required to be granted, the person to whom the relief is to be granted is indebted to

(a) Her Majesty in right of Canada; or

(b) Her Majesty in right of a province in respect of tax payable to the province, if there is an agreement between the Government of Canada and the government of the province authorizing Canada to collect the tax on behalf of the province.

117. If circumstances exist that render it difficult to determine the exact amount of relief under section 89, of a refund under section 110 or of a refund or drawback under section 113 or the exact amount of a general remission of duties under an order made under section 115 of this Act or section 23 of the Financial Administration Act, the Minister of Public Safety and Emergency Preparedness may, with the consent of the applicant for the relief, refund, drawback or remission, grant to the applicant a sum, in an amount determined by that Minister, in lieu of the relief, refund, drawback or remission.

1997, c. 36, s. 117; 2005, c. 38, ss. 142, 145.

118. (1) If relief from, or remission of, duties is granted under this Act, other than under section 92, or if remission of duties is granted under section 23 of the Financial Administration Act and a condition to which the relief or remission is subject is not complied with, the person who did not comply with the condition shall, within 90 days or such other period as may be prescribed after the day of the failure to comply,

(a) report the failure to comply to an officer at a customs office; and

(b) pay to Her Majesty in right of Canada an amount equal to the amount of the duties in respect of which the relief or remission was granted, unless that person can provide evidence satisfactory to the Minister of Public Safety and Emergency Preparedness that

(i) at the time of the failure to comply with the condition, a refund or drawback would otherwise have been granted if duties had been paid, or

(ii) the goods in respect of which the relief or remission was granted qualify in some other manner for relief or remission under this Act or the Financial Administration Act.

(2) If a drawback has been granted of duties paid in respect of imported goods by reason of a deemed exportation under subsection 89(3), the goods are not subsequently exported and the goods are diverted to a use other than a use set out in that subsection, the person who diverted the goods shall, within 90 days after the day of the diversion,

(a) report the diversion to an officer at a customs office; and

(b) pay the amount of the drawback and the amount of any interest granted on the drawback under section 127.

(3) An amount referred to in paragraph (1)(b) or (2)(b), while it remains unpaid, is deemed to be a debt owing to Her Majesty in right of Canada under the Customs Act.

(4) The Governor in Council may make regulations

(a) on the recommendation of the Minister of Public Safety and Emergency Preparedness, prescribing time limits for the application of subsection (1) and the goods or classes of goods in respect of which, or the circumstances in which, those limits apply; and

(b) on the recommendation of the Minister, prescribing the circumstances in which certain goods are exempted from the application of subsection (1) and the goods or classes of goods in respect of which, and the period for which and the conditions under which, those exemptions apply.

1997, c. 36, s. 118; 2005, c. 38, ss. 142, 145.

119. An application under section 110 or 113 must be accompanied by a waiver, in the prescribed form, from every other person eligible to claim a drawback, refund or remission of the duties in respect of which the application is made, waiving that person’s right to apply for the drawback, refund or remission.

1997, c. 36, s. 119; 2005, c. 38, ss. 89(F), 145.

120. For the purposes of sections 121 and 122, “value” means, in respect of a by-product, goods or merchantable scrap or waste,

(a) if the processor has sold the by-product, goods or merchantable scrap or waste in an arms-length transaction, the price at which the processor sold the by-product, goods or merchantable scrap or waste; and

(b) in any other case, the price at which the processor would ordinarily have sold the by-product, goods or merchantable scrap or waste in an arms-length transaction,

(i) in the case of an application for a drawback or refund, at the time the application is made, or

(ii) if relief from the payment of duties has been granted under section 89, at the time the goods are exported.

121. (1) If relief from payment of duties is granted in respect of goods under section 89 and the goods enter into a process that produces a by-product in respect of which relief could not have been granted, the processor shall, within 90 days after production of the by-product, pay to Her Majesty in right of Canada an amount that bears the same proportion to the amount of the relief as the value of the by-product bears to the total value of the products produced from the processing of the goods.

(2) An amount referred to in subsection (1), while it remains unpaid, is deemed to be a debt owing to Her Majesty in right of Canada under the Customs Act.

(3) If goods in respect of which an application was made under section 110 or 113 enter into a process that produces a by-product in respect of which a refund or drawback cannot be granted and the drawback or refund has not yet been paid, the amount of the drawback or refund shall be reduced by the same proportion that the value of the by-product bears to the total value of the products produced from the processing of the goods.

122. (1) If goods in respect of which relief is granted under section 89 enter into a process that produces merchantable scrap or waste in respect of which the relief could not have been granted, the processor shall, within 90 days after the production of the scrap or waste, pay to Her Majesty in right of Canada an amount equal to the product obtained by multiplying the value of the merchantable scrap or waste by the rate of customs duty that applies, at the time that the scrap or waste was produced, to merchantable scrap or waste of the same kind.

(2) An amount referred to in subsection (1), while it remains unpaid, is deemed to be a debt owing to Her Majesty in right of Canada under the Customs Act.

(3) If goods in respect of which an application was made under section 110 or 113 enter into a process that produces merchantable scrap or waste in respect of which a refund or drawback cannot be granted and the drawback or refund has not yet been paid, the amount of the drawback or refund shall be reduced by an amount equal to the product obtained by multiplying the value of the merchantable scrap or waste by the rate of customs duty that applies, at the time the merchantable scrap or waste results from the process, to merchantable scrap or waste of the same kind.

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.

(4) If a person pays an amount owing under paragraph 118(1)(b) or section 121 or 122 within the 90 day period referred to in that paragraph or section, no interest on the amount is payable by the person under subsection (2) or (3).

(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 specified rate for 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 specified rate for 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.

(7) A person who is liable under subsection 95(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 sixty-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.

1997, c. 36, s. 123; 2001, c. 25, s. 88.

124. Interest computed at a prescribed rate or at a specified rate 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.

1997, c. 36, s. 124; 2001, c. 25, s. 89.

125. The Minister of Public Safety and Emergency Preparedness may authorize persons who are required under a provision of this Act to pay interest on an amount at a specified rate to instead pay interest under that provision at the prescribed rate.

1997, c. 36, s. 125; 2005, c. 38, ss. 142, 145.

126. (1) The Minister of Public Safety and Emergency Preparedness may at any time waive or cancel payment of all or any portion of any interest otherwise payable under this Part.

(2) If, as a result of a waiver or cancellation under subsection (1), a person is refunded an amount of interest that was paid, the person 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.

1997, c. 36, s. 126; 2005, c. 38, ss. 142, 145.

127. (1) A person who is granted a refund or drawback of duties under section 110 or 113, other than duty levied under the Special Import Measures Act, shall be granted, in addition to the drawback or refund, interest on the drawback or refund at the prescribed rate for the period beginning on the ninety-first day after 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.

(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 for 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.

1997, c. 36, s. 127; 2001, c. 25, s. 90.

128. A drawback or refund granted under this Part shall be paid out of the Consolidated Revenue Fund.

129. The Minister of Public Safety and Emergency Preparedness may make regulations

(a) for the purposes of tariff item No. 9813.00.00 or 9814.00.00, permitting the importation free of customs duties of containers not originating in Canada, if that Minister is satisfied that a like quantity of usable containers has been exported; and

(b) for the purposes of tariff item No. 9897.00.00, prescribing

(i) conditions under which specimens of aigrettes, egret plumes or osprey plumes and the feathers, quills, heads, wings, tails, skins or parts of skins of wild birds of that tariff item may be imported for any museum or for scientific or educational purposes, and

(ii) the manner in which materials from used or second-hand mattresses shall be cleaned and fumigated and the certificates that shall accompany those materials.

1997, c. 36, s. 129; 2005, c. 38, ss. 142, 145.

130. The Minister of Public Safety and Emergency Preparedness may

(a) specify documentation that is considered acceptable for the purposes of tariff item No. 9827.00.00; and

(b) recognize authorities, representatives or authorized persons in a country of origin as competent for the purposes of conditions of classification of goods under a tariff item.

1997, c. 36, s. 130; 2005, c. 38, ss. 142, 145.

131. The Minister may designate goods for the purposes of tariff item No. 9938.00.00.

132. (1) The Governor in Council may, on the recommendation of the Minister, make regulations

(a) amending the List of Tariff Provisions to change or prescribe conditions of classification of goods for the purposes of Chapter 99 of that List;

(b) prescribing territories for the purposes of the definition “country” in subsection 2(1);

(c) prescribing eligible Commonwealth countries or conditions for eligibility of Commonwealth countries for the purposes of a tariff item of heading No. 51.11, 51.12 or 58.03;

(d) prescribing a rate of interest or rules for determining a rate of interest for the purposes of any provision of this Act;

(e) reducing the maximum value of goods that are entitled to be classified under a tariff item of heading No. 98.04;

(f) for the purposes of tariff item No. 9808.00.00, withdrawing privileges from persons or classes of persons who are referred to in that tariff item and are from a country that refuses to grant the same privileges to Canadian officials holding corresponding or equivalent posts in that country;

(g) for the purposes of tariff item No. 9810.00.00,

(i) designating institutions, foreign countries and military service agencies, and

(ii) withdrawing privileges from persons or classes of persons who are referred to in that tariff item and are from a country that refuses to grant corresponding privileges;

(h) amending the list of products set out in tariff item No. 9905.00.00;

(i) amending the list of goods in tariff item No. 9987.00.00;

(j) in respect of goods or classes of goods of heading No. 98.26, amending the schedule to

(i) add, delete or amend tariff items relating to goods or classes of goods classified under each tariff item of that heading,

(ii) amend the rates of customs duty levied on goods or classes of goods classified under a tariff item of that heading,

(iii) amend the conditions under which goods or classes of goods may be imported under a tariff item of that heading,

(iv) exclude any goods or classes of goods from the application of a tariff item of that heading,

(v) define terms of that heading, and

(vi) amend the maximum value of goods that may be imported under a tariff item of that heading;

(k) reducing any customs duty imposed on goods of Chapter 89 in the List of Tariff Provisions in such circumstances and under such conditions as are prescribed;

(l) for the purposes of tariff item No. 9993.00.00, limiting or restricting the use, kinds or quantity of goods that may be classified under that tariff item;

(m) for the purposes of tariff item No. 9897.00.00,

(i) amending that tariff item to exclude goods manufactured or produced wholly or in part by prison labour from that tariff item, or prescribing the conditions under which such goods may be excluded from that tariff item,

(ii) amending that tariff item to exclude used or second-hand motor vehicles manufactured before the calendar year in which importation is sought to be made from that tariff item, or prescribing the conditions under which such vehicles may be excluded from that tariff item, and

(iii) amending that tariff item to exclude used or second-hand aircraft from that tariff item, or prescribing the conditions under which such aircraft may be excluded from that tariff item;

(n) for the purposes of tariff item No. 9898.00.00, amending that tariff item to prescribe conditions under which arms, military stores, munitions of war or offensive weapons are excluded from that tariff item;

(o) prescribing anything that is to be prescribed under a tariff item in Chapter 98 or 99 in the List of Tariff Provisions;

(p) prescribing anything that may be prescribed under this Act; and

(q) generally, for carrying out the purposes and provisions of this Act.

(2) Regulations made under paragraph (1)(e), or under subparagraph (1)(j)(vi) that reduce the maximum value of goods, cease to have effect on the one hundred and eightieth day after the day on which they become effective or, if Parliament is not then sitting, the fifteenth day thereafter that either House of Parliament is sitting unless, not later than that day, the regulations are approved by a resolution adopted by both Houses of Parliament.

(3) For the purposes of subsection (2), a day on which either House of Parliament sits is deemed to be a sitting day.

(4) At the time regulations referred to in subsection (2) cease to have effect, the maximum value shall be restored.

(5) A regulation made under paragraph (1)(d) that provides that it is to come into force on a day earlier than the day on which it is registered under section 6 of the Statutory Instruments Act comes into force on that earlier day if it gives effect to a public announcement made on or before that earlier day.

133. The Governor in Council may, on the recommendation of the Minister of Public Safety and Emergency Preparedness, make regulations

(a) prescribing, for the purposes of section 101,

(i) the period after the exportation of goods within which the goods must be returned to Canada, and

(ii) what constitutes satisfactory evidence of exportation of the goods;

(b) defining the expressions “baggage”, “conveyance”, “former resident”, “incidental to the international traffic of the goods”, “resident”, “temporarily” and “temporary resident” for the purposes of a tariff item of Chapter 98 of the List of Tariff Provisions;

(c) for the purposes of tariff item No. 9801.10.00, 9801.20.00, 9808.00.00 or 9810.00.00, prescribing conditions under which goods may be imported;

(d) for the purposes of tariff item No. 9802.00.00,

(i) prescribing conditions under which conveyances may be imported,

(ii) limiting the length of time that any imported conveyance may remain in Canada and the use that may be made of the conveyance while it remains in Canada, and authorizing the Minister of Public Safety and Emergency Preparedness to extend those limits,

(iii) excluding any class of conveyance from classification under that tariff item, and

(iv) authorizing the Minister of Public Safety and Emergency Preparedness to require security for imported conveyances and limit the amount and type of security that may be required;

(e) for the purposes of tariff item No. 9803.00.00,

(i) prescribing conditions under which goods or conveyances may be imported and authorizing the Minister of Public Safety and Emergency Preparedness to establish such conditions in specified circumstances,

(ii) limiting the quantity of any class of goods that may be imported and authorizing the Minister of Public Safety and Emergency Preparedness to increase those limits in specified circumstances,

(iii) limiting the length of time that imported goods or conveyances may remain in Canada and authorizing the Minister of Public Safety and Emergency Preparedness to extend those limits,

(iv) excluding any class of goods or conveyances from classification under that tariff item, and

(v) authorizing the Minister of Public Safety and Emergency Preparedness to require security for imported goods or conveyances and limit the amount and type of security that may be required;

(f) for the purposes of heading No. 98.04 or of tariff item No. 9807.00.00, 9813.00.00, 9814.00.00, 9816.00.00, 9938.00.00 or 9989.00.00, prescribing conditions under which goods may be imported;

(g) for the purposes of tariff item No. 9805.00.00,

(i) exempting goods or classes of goods imported by any class of persons referred to in that tariff item from any of its requirements relating to the period during which goods must be owned, possessed or used abroad, and

(ii) substituting less exigent requirements relating to the period during which goods or classes of goods of that tariff item must be owned, possessed or used abroad by any class of persons referred to in that tariff item;

(h) for the purposes of tariff item No. 9807.00.00,

(i) defining the word “settler”,

(ii) exempting goods or classes of goods imported by any classes of persons referred to in that tariff item from any of its requirements relating to ownership, possession or use, and

(iii) substituting less exigent requirements relating to the ownership, possession or use of goods or classes of goods of that tariff item;

(i) for the purposes of tariff item No. 9897.00.00,

(i) defining the expressions “issue”, “periodical” and “special edition”,

(ii) prescribing conditions under which an issue of a periodical will be found to be an issue of a special edition that contained an advertisement that was primarily directed to a market in Canada and that did not appear in identical form in all editions of that issue of a periodical that were distributed in the country of origin, and

(iii) prescribing conditions under which an issue of a periodical will be found to be an issue more than five per cent of the advertising space in which consisted of space used for advertisements that indicated specific sources of availability in Canada, or specific conditions relating to the sale or provision in Canada, of any goods or services;

(j) for the purpose of tariff item No. 9971.00.00 or 9992.00.00, prescribing conditions under which goods that have been exported to a NAFTA country, Chile, Costa Rica, Israel or another CIFTA beneficiary for repair or alteration may be imported;

(k) for the purposes of tariff item No. 9993.00.00,

(i) extending any period that the goods imported under that tariff item may remain in Canada, if it is impracticable or impossible for the importer to export the goods,

(ii) setting out the conditions under which the requirement for security or for prescribed documents may be waived, and

(iii) prescribing the form, nature and conditions of any security satisfactory to the Minister of Public Safety and Emergency Preparedness; and

(l) prescribing any other thing that is to be prescribed for the purposes of a tariff item referred to in this section.

1997, c. 36, s. 133; 2001, c. 28, s. 45; 2005, c. 38, ss. 142, 145.

134. (1) The Minister of Public Safety and Emergency Preparedness or President of the Canada Border Services Agency may, by order, suspend for a specified period a tariff item referred to in Supplementary Note 2(c) of Chapter 7 of the List of Tariff Provisions, and bring into force for the period one or more tariff items referred to in Supplementary Note 2( b) of that Chapter, in respect of goods that are imported through a customs office in a region or part of Canada specified in the order during that period.

(2) The Minister of Public Safety and Emergency Preparedness or President of the Canada Border Services Agency may, by order, suspend for a specified period a tariff item referred to in Supplementary Note 4(c) of Chapter 8 of the List of Tariff Provisions, and bring into force for the period one or more tariff items referred to in Supplementary Note 4( b) of that Chapter, in respect of goods that are imported through a customs office in a region or part of Canada specified in the order during that period.

1997, c. 36, s. 134; 1999, c. 17, s. 131; 2005, c. 38, ss. 141, 142, 145.

135. (1) An order made under subsection 134(1) or (2) does not apply to goods that

(a) before the order comes into force, a person purchased for importation through a customs office in a region or part of Canada specified in the order in the expectation in good faith that the “Free” rate of customs duty set out in a tariff item suspended by the order would apply to the goods; and

(b) at the time the order comes into force, were in transit to the purchaser in Canada.

(2) An order referred to in subsection 134(1) or (2) is deemed not to be a regulation within the meaning of the Statutory Instruments Act.

136. (1) The importation of goods of tariff item No. 9897.00.00, 9898.00.00 or 9899.00.00 is prohibited.

(2) Subsection 10(1) does not apply in respect of goods referred to in subsection (1).

137. In sections 139, 140 and 143 to 146, “former Act” means the Customs Tariff as it read immediately before the coming into force of section 214.

138. (1) The Minister may, by order, amend the schedule, if the Minister considers it necessary to do so as a consequence of the enactment of this Act.

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

(3) Subsection (1) ceases to have effect three years after the day on which this section comes into force.

139. (1) The Governor in Council may, on the recommendation of the Minister, by order, amend any Act of Parliament other than this Act, by

(a) substituting, for any reference made therein to a tariff item or code or portion of a tariff item or code in the former Act, a reference to a tariff item or portion of a tariff item in this Act;

(b) substituting, for any reference made therein to a schedule other than Schedule VII to the former Act, a reference to the schedule to this Act;

(c) substituting, for any reference made therein to Schedule VII to the former Act, a reference to tariff item Nos. 9897.00.00 to 9899.00.00; and

(d) making such other modifications as the Governor in Council considers necessary as a consequence of a substitution made under paragraphs (a) to (c) or as a consequence of the enactment of this Act.

(2) Subsection (1) ceases to have effect three years after the day on which this section comes into force.

140. (1) Subject to subsection (2), if a tariff item or code or portion of a tariff item or code of the former Act is referred to in an Act of Parliament, or in a regulation or order made thereunder, the reference to that tariff item, code or portion shall, unless the context requires otherwise, be construed as a reference to the tariff item or portion of a tariff item of this Act referring to goods that correspond most closely to goods referred to in the tariff item, code or portion of a tariff item or code of the former Act.

(2) A reference in a provision of an Act of Parliament other than this Act, or of an order or regulation made under an Act of Parliament, to a heading, subheading, tariff item or code, or portion of a heading, subheading, tariff item or code, of the former Act or to a note to a chapter of Schedule I to the former Act shall, for any purpose relating to a duty or tax under the Excise Act or the Excise Tax Act or for any purpose relating to an additional duty under section 21 of this Act, be read as a reference to that heading, subheading, tariff item, code, portion or note as it read immediately before the day on which this section comes into force.

141. (1) An order or regulation made under this Act may, if it so provides, be retroactive and have effect in respect of any period before it is made, but no such order or regulation may have effect from a day earlier than the day on which this section comes into force.

(2) Subsection (1) ceases to have effect 18 months after the day on which this section comes into force.

142. (1) If the Governor in Council considers it necessary for the purposes of implementing this Act that an order or regulation under the Canadian International Trade Tribunal Act, the Customs Act or the Export and Import Permits Act have retroactive effect, the order or regulation may, if it so provides, be retroactive and have effect in respect of any period before it is made, but no such order or regulation may have effect from a day earlier than the day on which this section comes into force.

(2) Subsection 164(3) of the Customs Act does not apply in respect of any regulation that, under subsection (1), provides that it has retroactive effect.

(3) Subsection (1) ceases to have effect 18 months after the day on which this section comes into force.

143. If goods were accounted for under section 32 of the Customs Act before the day on which this section comes into force and were subject to the former Act, the Customs Act or any other Act of Parliament, or to any regulation or order made thereunder, those Acts, regulations or orders continue to apply to those goods after the coming into force of this section.

144. Licences issued under section 81 of the former Act and in effect on the day on which section 91 of this Act comes into force continue to have effect under that section on and after that day.

145. Security held by the Minister of National Revenue to secure the payment of duties under subsection 81(4) of the former Act is continued as security for the purposes of subsection 91(4) of this Act on and after the day on which this section comes into force.

146. Certificates issued under section 80.1 of the former Act and in effect on the day on which section 90 of this Act comes into force continue to have effect under that section on and after that day.

147. to 191. [Amendments]

192. to 212. [Amendments]

213. [Repeal]

214. This Act comes into force or is deemed to have come into force on January 1, 1998 and applies, or is deemed to have applied, to all goods referred to in this Act imported on or after that day and to goods imported before that day that were not accounted for under section 32 of the Customs Act before that day.

* [Note: The schedule is accessible free on the Internet, in downloadable form, at the following address:

http://www.fin.gc.ca

Revenue Canada is in the process of making a readable version of the schedule to the Customs Tariff available free on the Internet, which will be accessible in 1998 at the following address:

http://www.rc.gc.ca/vco]