Vol. 148, No. 25 — December 3, 2014
Registration
SOR/2014-270 November 21, 2014
CUSTOMS TARIFF
2015 Pan American and Parapan American Games Remission Order
P.C. 2014-1273 November 20, 2014
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 115 (see footnote a) of the Customs Tariff (see footnote b), makes the annexed 2015 Pan American and Parapan American Games Remission Order.
2015 PAN AMERICAN AND PARAPAN AMERICAN GAMES REMISSION ORDER
INTERPRETATION
1. The following definitions apply in this Order.
“APC” means the Americas Paralympic Committee. (CPA)
“Games” means the Pan American Games or the Parapan American Games, as the case may be. (Jeux)
“Games family member” means an individual, other than an individual ordinarily resident in Canada, who is the holder of an accreditation issued by TO2015 and is
- (a) an athlete participating in the Games or a coach, judge, team official, support staff member or technical official in the Games; or
- (b) a member of PASO, IPC, APC or of an NOC, an NPC or an international sports federation. (membre de la famille des Jeux)
“IPC” means the International Paralympic Committee. (CIP)
“media accreditation holder” means an individual, other than an individual ordinarily resident in Canada, who holds a media accreditation issued by TO2015 for the purpose of conducting media coverage of the Games. (titulaire d’une accréditation de média)
“media rights holder” means a person that has been granted broadcasting rights in respect of the Games by TO2015, PASO, IPC or APC. (titulaire de droits de diffusion)
“NOC” means a National Olympic Committee of a country that is participating in the Pan American Games. (CNO)
“NPC” means a National Paralympic Committee of a country that is participating in the Parapan American Games. (CNP)
“Pan American Games” means the 2015 Pan American Games to be held in and around Toronto, Ontario, during the period beginning on July 10, 2015 and ending on July 26, 2015. (Jeux panaméricains)
“Parapan American Games” means the 2015 Parapan American Games to be held in and around Toronto, Ontario, during the period beginning on August 7, 2015 and ending on August 15, 2015. (Jeux parapanaméricains)
“PASO” means the Pan American Sports Organization. (OSP)
“person” means an individual, a partnership, a corporation, a trust, the estate or succession of a deceased individual, or a body that is a society, a union, a club, an association, a commission or another organization of any kind. (personne)
“sponsor” means a person that has been designated by TO2015, PASO, IPC or APC as an official sponsor of the Games. (commanditaire)
“supplier” means a person that has been designated by TO2015, PASO, IPC or APC as an official supplier to the Games. (fournisseur)
“TO2015” means the Toronto Organizing Committee for the 2015 Pan American and Parapan American Games. (TO2015)
APPLICATION
2. This Order does not apply to alcoholic beverages or tobacco products.
REMISSION
3. Remission is granted of the tax paid or payable under Part IX of the Excise Tax Act, and of the customs duties paid or payable, on goods imported temporarily into Canada by a Games family member or a media accreditation holder, if the goods are imported for the exclusive use of that member or holder in connection with the Games.
4. (1) Remission is granted of a portion of the tax paid or payable under Part IX of the Excise Tax Act, and of the customs duties paid or payable, on
- (a) goods for display, including apparatus to display those goods, imported temporarily into Canada by TO2015, PASO, IPC, APC, an NOC, an NPC, a media rights holder, a sponsor or a supplier, or the agent or representative of any of them, for use exclusively in connection with the Games;
- (b) equipment imported temporarily into Canada by TO2015, PASO, IPC, APC, an NOC, an NPC, a media rights holder, a sponsor or a supplier, or the agent or representative of any of them, for use exclusively in connection with the Games; and
- (c) vehicles of heading No. 87.02 in the List of Tariff Provisions set out in the schedule to the Customs Tariff that are imported temporarily into Canada, by TO2015 or a person who acts on its behalf, for use exclusively in connection with the Games.
(2) The amount of the tax remitted under subsection (1) is equal to
- (a) in the case of goods, equipment or vehicles that are imported by a person who is not resident in Canada and is not a registrant, as defined in subsection 123(1) of the Excise Tax Act, the total of the tax paid or payable under Part IX of that Act in respect of the importation of the goods, equipment or vehicles; and
- (b) in any other case, the difference between
- (i) the total of the tax paid or payable under Part IX of the Excise Tax Act in respect of the importation of the goods, equipment or vehicles, and
- (ii) the amount of the tax paid or payable under Part IX of the Excise Tax Act in respect of the importation on 1/60 of the value of the goods, equipment or vehicles for each month, or portion of a month, that the goods, equipment or vehicles remain in Canada.
5. Remission is granted of the customs duties paid or payable on goods imported into Canada by TO2015, PASO, IPC, APC, an NOC, an NPC, a media rights holder, a sponsor or a supplier, or the agent or representative of any of them, if the goods have a unit value of $60 or less and are intended for free distribution in connection with the Games.
6. Remission is granted of the tax paid or payable under Part IX of the Excise Tax Act, and of the customs duties paid or payable, on goods that are imported into Canada by TO2015 or a Games family member, if the goods have a unit value of $60 or less and are intended for distribution in connection with the Games as gifts or awards to
- (a) a Games family member;
- (b) a member, agent or representative of TO2015;
- (c) an individual who is resident in Canada and is participating in the Games; or
- (d) an individual who is resident in Canada and is acting in an official capacity in connection with the Games.
7. Remission is granted of the customs duties paid or payable on goods imported into Canada by TO2015, if
- (a) the goods are
- (i) ancillary to the hosting or staging of the events of the Games, or
- (ii) athletic equipment that is certified by the relevant international sports federation as complying with the international competition standards applicable to the sport for which it is designed and that is required by an athlete exclusively for the purpose of training or competing in the Games;
- (b) the goods are donated at the conclusion of the Games to a not-for-profit sports club, a sports federation, a registered charity, an educational or other public institution or a municipality, town or city; and
- (c) the goods are not sold or otherwise disposed of within two years after the day on which they are imported.
8. Remission is granted of the customs duties paid or payable on clothing imported into Canada, if the clothing
- (a) is donated to TO2015 by a sponsor or supplier;
- (b) is provided free of charge to TO2015 or Games volunteers to be worn as uniforms when undertaking their official volunteer duties in connection with the Games; and
- (c) is kept by the individual volunteer recipients following the Games.
CONDITIONS
9. Remission is granted under sections 3 and 4 on the condition that, on or before December 31, 2015, the goods, equipment or vehicles are
- (a) exported from Canada; or
- (b) destroyed in Canada under the supervision of an officer of the Canada Border Services Agency at the expense of the importer.
10. Remission is granted under this Order only to the extent to which the amount remitted has not otherwise been rebated, remitted, credited or refunded to any person under the Financial Administration Act or any other Act of Parliament.
11. Remission is granted under this Order on the condition that
- (a) the goods, equipment or vehicles are imported into Canada during the period beginning on August 1, 2014 and ending on August 15, 2015;
- (b) a claim for remission is made to the Minister of Public Safety and Emergency Preparedness within two years after the day on which the goods, equipment or vehicles were accounted for under section 32 of the Customs Act; and
- (c) the importer provides the Canada Border Services Agency with evidence or information that demonstrates that the importer is entitled to remission under this Order.
COMING INTO FORCE
12. This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
Canada will host the 2015 Pan American and Parapan American Games in Toronto and surrounding cities, from July 10 to July 26, 2015, and from August 7 to August 15, 2015, respectively. Over 10 000 athletes and team officials from at least 41 countries are expected to participate in the Games. According to the Organizing Committee, approximately 250 000 spectators are expected to attend these events.
It has been a long-standing practice for the Government of Canada to remit certain duties and taxes on certain goods imported in connection with similar international sporting events.
Objectives
To facilitate the hosting of the 2015 Pan American and Parapan American Games in Canada.
Description
The Order remits the Goods and Services Tax/Harmonized Sales Tax (GST/HST), or a portion thereof, and the customs duties paid or payable on items such as personal effects, goods for display and equipment imported into Canada by certain persons (e.g. athletes, sponsors, suppliers) in connection with the 2015 Pan American and Parapan American Games.
“One-for-One” Rule
The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative burden or compliance costs to business.
Small business lens
The small business lens does not apply to this proposal, as there are no costs on small business.
Rationale
A remission Order is the most appropriate means for providing duty and GST/HST relief in this instance. It has been a long-standing practice for Canada to remit GST/HST, or a portion thereof, and customs duties on certain goods imported for use at major sporting events hosted in Canada. This proposal is similar to previous Orders made in connection with similar events taking place in Canada such as the 2007 FIFA Men’s U-20 World Cup, as well as the 2014 FIFA U-20 Women’s World Cup and the 2015 FIFA Women’s World Cup.
This measure will facilitate the hosting of these Games. The Organizing Committee expects these games will generate significant economic benefits, including substantial investment in facilities and infrastructure as well as employment opportunities. It will also have a positive impact on the tourism industry of the Greater Toronto Area and help maintain Canada’s positive image as a host of international sporting events. The amount of potential revenue being forgone by the Government from this measure is estimated to be less than $1 million.
Implementation, enforcement and service standards
The Canada Border Services Agency will ensure compliance with the conditions of this Order. Importation of goods under this Order will be monitored to ensure that the goods meet the conditions of the Order and that any applicable customs duties and GST/HST are collected.
Contact
David Tousignant
Senior Economist
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: 613-369-4031
- Footnote a
S.C. 2005, c. 38, par. 145(2)(j) - Footnote b
S.C. 1997, c. 36