This memorandum outlines the legislation, regulations, and conditions under which residents of Canada are permitted to import conveyances on which duties have not been paid for temporary use in Canada.
This memorandum outlines the legislation, regulations, and conditions under which residents of Canada are permitted to import conveyances on which duties have not been paid for temporary use in Canada. The key legislation includes the Excise Tax Act, Non-Taxable Imported Goods (GST/HST) Regulations, Value of Imported Goods (GST/HST) Regulations, and the Customs Tariff. Specific tariff items, such as No. 9802.00.00 and No. 9993.00.00, outline the conditions for temporary importation of conveyances and other goods. The Regulations Respecting Temporary Importation of Conveyances by Residents of Canada define key terms such as "commuter," "conveyance," "hire or reward," "Minister," and "resident." These regulations specify the terms and conditions for importing conveyances, including restrictions on their use within Canada. For instance, conveyances must be used solely for transportation to a specified destination and back, and cannot be used for touring or other leisure activities. Commuters have specific allowances for travel between their residence and place of employment in the United States. Border services officers classify conveyances under tariff item No. 9802.00.00 and grant free importation only when the applicable terms and conditions have been met. Form E29B, Temporary Admission Permit, is issued at the time of arrival, and a refundable security deposit may be required. Conveyances must be exported from Canada within the specified time limit, and storage of such conveyances in Canada is not permitted. For U.S.-based rental vehicles temporarily imported for non-commercial purposes under tariff item No. 9993.00.00, Goods and Services Tax (GST)/Harmonized Sales Tax (HST) may apply depending on the length of absence from Canada. Reduced tax treatment applies to these vehicles for a period not exceeding 30 days. Penalties may be assessed for false declarations or failure to comply with the terms and conditions of importation.
