MEMORANDUM D8-2-5

Ottawa, March 24, 2000

Amendments – March 24, 2000: For more information, see "In Brief".

SUBJECT

FOREIGN AIRCRAFT SERVICING EQUIPMENT REMISSION ORDER

This Memorandum outlines the conditions and procedures under which remission may be granted under the Foreign Aircraft Servicing Equipment Remission Order.

Regulations

ORDER RESPECTING THE REMISSION OF CUSTOMS DUTIES PAID OR PAYABLE UNDER THE CUSTOMS TARIFF AND A PORTION OF THE SALES TAX PAID OR PAYABLE UNDER THE EXCISE TAX ACT ON MACHINERY AND EQUIPMENT IMPORTED INTO CANADA FOR USE IN SERVICING FOREIGN AIRCRAFT

SHORT TITLE

1. This order may be cited as the Foreign Aircraft Servicing Equipment Remission Order, 1992.

REMISSION

2. Remission is hereby granted of the customs duties paid or payable under the Customs Tariff on machinery and equipment imported into Canada, on or after September 17, 1969, for use exclusively in servicing aircraft registered in a foreign country or territory while at international airports in Canada if it is established that, at the time of the importation, the foreign country or territory grants a similar privilege in respect of aircraft registered in Canada.

3. Remission is hereby granted of the sales tax paid or payable under the Excise Tax Act on the goods in respect of which customs duties are remitted by this Order, in an amount equal to the difference between

GUIDELINES AND GENERAL INFORMATION

Servicing Equipment

1. Appendix A contains examples of those items considered as servicing equipment for purposes of this Order.

2. Servicing equipment imported under this Order must remain within the boundaries of the international airport and is limited to servicing flights operated by air carriers from the named countries or territories listed in Appendix B.

Named Countries or Territories

3. The Commissioner of Customs and Revenue (formerly the Deputy Minister of National Revenue) is satisfied that the countries/territories named in Appendix B are granting Canadian air carriers privileges similar to those granted foreign air carriers operating in Canada under this Order.

Application for Remission

4. Foreign air carriers wishing to apply for remission of customs duty and the tax imposed under Part IX of the Excise Tax Act must apply in writing to the regional collector of the nearest Customs Border Services office, and must include in their application the following information:

Customs Documentation

5. Customs will use Form B3, Canada Customs Coding Form, to process servicing equipment imported under this Order and will include on the form a reference to the Order in Council number (see “Legislative References” on the last page of this Memorandum). A copy of each Form B3 processed under this Order will be forwarded to the regional Drawbacks and Remissions unit.

Exceptions

6. The provisions of this Order do not apply to aircraft spares, aircraft repair parts, or items to be installed as fixtures in air terminal buildings.

Penalty Information

7. In cases where servicing equipment imported under this Order is removed beyond the limits of the international airport, sold, or otherwise disposed of in Canada, used to service air carriers other than the importer, or where the named country or territory has been removed from the list found in Appendix B, the servicing equipment will be subject to the full payment of applicable duties and taxes. Customs will refer all documentation related to servicing equipment on which duties and taxes are payable, to the regional Drawbacks and Remissions unit for follow-up action.

Additional Information

8. For information on customs’ administration of the Foreign Aircraft Servicing Equipment Remission Order, please contact:

Goods and Services Tax

9. No changes were made to the wording of the Foreign Aircraft Servicing Equipment Remission Order as a result of the implementation of the goods and services tax (GST).

10. Regulations made pursuant to subsection 215(2) of the Excise Tax Act provide that duty remitted under this Order will not be included in the value for tax when calculating GST payable on servicing equipment.

11. While this Order continues to remit duty, it does not remit GST, since GST is not a “sales tax” as mentioned in paragraph 3 of the Order.

APPENDIX A

EXAMPLES OF FOREIGN AIRCRAFT SERVICING EQUIPMENT

1) Maintenance and servicing equipment, such as:

• maintenance platforms and steps
• test equipment for aircraft, aircraft engines, and aircraft instruments
• aircraft engine heaters and coolers
• ground radio equipment
• ground power units to provide electrical power while the aircraft is on the ground
• air conditioners to control the aircraft cabin air temperatures while the aircraft is on the ground
• water servicing units
• sanitary servicing equipment
• food trucks specially designed to carry food at controlled temperatures to and from the aircraft
• sprayers (de-icer units)
• aircraft jacks
• towbars

2) Passenger handling equipment, such as:

• passenger loading and unloading devices

3) Cargo loading equipment, such as:

• vehicles for moving or loading baggage, cargo, equipment, or supplies
• cargo loading devices
• cargo weighing devices

4) Components that are machinery or equipment in themselves, such as pumps, engines, rams, when they are for incorporation into equipment imported under this Order. Parts do not qualify for remission under the terms of this Order.

APPENDIX B

NAMED COUNTRIES OR TERRITORIES

Antigua
Argentina
Australia
Austria
Bahamas
Barbados
Belgium
Brazil
Bulgaria
Cayman Islands
Chile
China
Costa Rica
Cuba
Czech Republic
Denmark
Dominican Republic
Egypt
El Salvador
Fiji
Finland
France
Germany
Greece
Guatemala
Haiti
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Ivory Coast
Jamaica
Japan
Jordan
Korea
Lebanon
Malaysia
Mexico
Morocco
Netherlands
Netherlands Antilles
New Zealand
Nicaragua
Norway
Pakistan
Peru
Philippines
Poland
Portugal
Romania
Russia
Saudi Arabia
Singapore
Spain
Saint Lucia
Slovak Republic
St. Kitts and Nevis
Sweden
Switzerland
Taiwan
Thailand
Trinidad and Tobago
Turkey
Ukraine
United Kingdom
United States
Venezuela

REFERENCES

ISSUING OFFICE –

LEGISLATIVE REFERENCES –

HEADQUARTERS FILE –

SUPERSEDED MEMORANDA “D” –

OTHER REFERENCES –

Services provided by the Canada Customs and Revenue Agency are available in both official languages.

This Memorandum is issued under the authority of the Commissioner of Customs and Revenue.