Annual lists 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995

Ottawa, September 27, 2001
2001-081

Government Proposes Changes to Ships’ Stores Provisions

Related Document:

• Proposed Legislation and Regulations Relating to Ships' Stores.

The Honourable Martin Cauchon, Minister of National Revenue and Secretary of State (Economic Development Agency of Canada for the Regions of Quebec), and the Honourable Jim Peterson, Secretary of State (International Financial Institutions), today announced proposed changes to the ships’ stores provisions under the customs and excise legislation. Those provisions grant relief from duties and taxes for goods used on board ships and aircraft in international service. The proposed changes respond to a recent decision of the Federal Court of Appeal that the Ships’ Stores Regulations are not in full accordance with the authority in their enabling legislation and that they will cease to have effect as of October 1, 2001.

First, amendments to the enabling legislation are proposed to ensure that the proper legislative authority for these Regulations is provided. It is proposed that these changes be made effective on the date the provisions identified by the Court were incorporated into the Regulations.

Second, it is proposed that the Regulations be amended, effective June 1, 2002, so that tax and duty relief for ships’ stores used on tugs, ferries and passenger ships operating on the Great Lakes and lower St. Lawrence River is provided only to the extent that the ships’ stores are consumed on vessels engaged in international trade.

Finally, to provide adequate time for affected operators to make the transition to the new rules, a temporary fuel tax rebate program is proposed. This rebate will be available to those operators of tugs, ferries and passenger ships on the Great Lakes and lower St. Lawrence River whose entitlement to ships’ stores relief is being discontinued. It is proposed that this rebate apply in respect of fuel purchased between June 1, 2002, and December 31, 2004.

The proposals to amend the affected statutes are contained in a detailed Notice of Ways and Means Motion tabled today in the House of Commons by Secretary of State Peterson. Minister Cauchon also released today a draft of the proposed changes to the Ships’ Stores Regulations. Explanatory notes providing further details of the proposed measures are also available.

These documents can be viewed free of charge on the Department of Finance Web site at the address shown below. Printed copies of these documents are available for $10 from the Department of Finance Distribution Centre at (613) 995-2855.

___________________

For further information:

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://www.fin.gc.ca/scripts/register_e.asp.