So today I received a very apologetic phone call from Canada Border Services Agency about thier Rhino double taxation refund decision. She stated that they had received a large number of these requests and that they had at first been honoring them. She stated how sorry she was that she (CBSA) was not allowed is issue the refund. She did however state that Canada Revenue Services could issue such a refund and that she would email the proper form.
I assume that at some point the decision came down that CBSA was not supposed to refund taxes charged in error only to adjust incorrect tax amounts due to stated value or classification of goods. What they did not tell me (or were ignorant of) away back when this all began was that CRA (Canada Revenue Services) was responsible to issue refunds in cases like this. Had they done that it could have saved a lot of frustration.
Back to my case or rather the one of my cases that this refers to, they went back and changed the classification of the goods which somehow altered the value. That change in value gave me a $2 refund. I don't understand that at all, I paid what I paid. There is no duty due to NAFTA and GST is the same rate on everything!
A summary of the decision follows;
This notice represents a decision of the President of the Canada Border Services Agency (CBSA)
under subsection 60(4) of the Customs Act (the Act) in response to your dispute filed on September
3, 2024. This dispute was submitted to request a review of the decision XXXXXXXXX, issued by the
Winnipeg Casual Refund Center on July 17, 2024.
In the appeal request, you indicated that taxes had already been assessed at time of purchase by the
online vendor. Therefore, you argued that taxes were incorrectly assessed at the time of
importation.
You provided supporting documentation, including a copy of the original invoice from the vendor,
to support your claim.
It has been further re-determined that the tariff classification, value for duty and origin were
incorrectly determined at the time of importation. Thus, a partial refund has been granted
A refund, including interest, in the amount of $2.04 will be issued to you by cheque within
approximately six weeks.
A refund, including interest, in the amount of $2.04 will be issued to you by cheque within
approximately six weeks.
Analysis
The tariff classification of the goods at issue has been further re-determined under 8523.80.00.00
Discs, […] whether or not recorded, including matrices and masters for the production of discs,
but excluding products of Chapter 37. –Other, in accordance with General Interpretive Rules 1 &
6 of the Customs Tariff.
Moreover, the value for duty was further re-determined to be $94.25 and the Canada-United
States-Mexico Agreement (CUSMA) preferential tariff treatment, the United States Tariff (UST),
has been applied (duty free).
However, the full refund of the Harmonized Sales Tax (HST) is denied. The CBSA is required
under sections 212 and 212.1 (2) of the Excise Tax Act to collect taxes at the time of importation.2
Since the CBSA remains legally responsible for collecting the applicable taxes upon the
importation of goods into Canada and there has been no error in this regard.
The current legislation does not authorize the CBSA to issue refunds when an online vendor has
also collected taxes at the time of sale. You are encouraged to submit form GST189 General
Application for GST/HST Rebates3 (using reason code 1C and including a copy of this decision)
to the Canada Revenue Agency in order to obtain a refund for taxes collected in error. A copy of
the form has been attached to this decision for your convenience.
While I still take great issue with the statement that CBSC are not required to issue refunds when the online vendor has already collected the taxes. Also with the statement that no error was made, at least I have made some progress on this issue. Perhaps a legislation change is in order. I doubt that CRA will be willing to refund the brokerage fees charged by the Post Office either. I guess that Canada Post can keep it; they are broke anyway losing money to begin with and then missing out on the busiest time of the year due to the Postal strike. Thankfully it's all over with now.
I assume that at some point the decision came down that CBSA was not supposed to refund taxes charged in error only to adjust incorrect tax amounts due to stated value or classification of goods. What they did not tell me (or were ignorant of) away back when this all began was that CRA (Canada Revenue Services) was responsible to issue refunds in cases like this. Had they done that it could have saved a lot of frustration.
Back to my case or rather the one of my cases that this refers to, they went back and changed the classification of the goods which somehow altered the value. That change in value gave me a $2 refund. I don't understand that at all, I paid what I paid. There is no duty due to NAFTA and GST is the same rate on everything!
A summary of the decision follows;
This notice represents a decision of the President of the Canada Border Services Agency (CBSA)
under subsection 60(4) of the Customs Act (the Act) in response to your dispute filed on September
3, 2024. This dispute was submitted to request a review of the decision XXXXXXXXX, issued by the
Winnipeg Casual Refund Center on July 17, 2024.
In the appeal request, you indicated that taxes had already been assessed at time of purchase by the
online vendor. Therefore, you argued that taxes were incorrectly assessed at the time of
importation.
You provided supporting documentation, including a copy of the original invoice from the vendor,
to support your claim.
It has been further re-determined that the tariff classification, value for duty and origin were
incorrectly determined at the time of importation. Thus, a partial refund has been granted
A refund, including interest, in the amount of $2.04 will be issued to you by cheque within
approximately six weeks.
A refund, including interest, in the amount of $2.04 will be issued to you by cheque within
approximately six weeks.
Analysis
The tariff classification of the goods at issue has been further re-determined under 8523.80.00.00
Discs, […] whether or not recorded, including matrices and masters for the production of discs,
but excluding products of Chapter 37. –Other, in accordance with General Interpretive Rules 1 &
6 of the Customs Tariff.
Moreover, the value for duty was further re-determined to be $94.25 and the Canada-United
States-Mexico Agreement (CUSMA) preferential tariff treatment, the United States Tariff (UST),
has been applied (duty free).
However, the full refund of the Harmonized Sales Tax (HST) is denied. The CBSA is required
under sections 212 and 212.1 (2) of the Excise Tax Act to collect taxes at the time of importation.2
Since the CBSA remains legally responsible for collecting the applicable taxes upon the
importation of goods into Canada and there has been no error in this regard.
The current legislation does not authorize the CBSA to issue refunds when an online vendor has
also collected taxes at the time of sale. You are encouraged to submit form GST189 General
Application for GST/HST Rebates3 (using reason code 1C and including a copy of this decision)
to the Canada Revenue Agency in order to obtain a refund for taxes collected in error. A copy of
the form has been attached to this decision for your convenience.
While I still take great issue with the statement that CBSC are not required to issue refunds when the online vendor has already collected the taxes. Also with the statement that no error was made, at least I have made some progress on this issue. Perhaps a legislation change is in order. I doubt that CRA will be willing to refund the brokerage fees charged by the Post Office either. I guess that Canada Post can keep it; they are broke anyway losing money to begin with and then missing out on the busiest time of the year due to the Postal strike. Thankfully it's all over with now.
