&&Dogs of various breeds and/or mixed breeds are donated by animal shelters in the United States and Cayman Islands to the Georgian Triangle Humane Society (GTHS). The GTHS does not pay any money for the dogs, which would otherwise be euthanized by the animal shelters due to overpopulation; however, the GTHS does pay the cost of transporting the animals to their facility in Canada. After importation, the dogs remain with the GTHS until they are adopted into Canadian households.

&&At issue is whether the rescue canines qualify for the benefits of special classification provision 9815.00.00.00, which provides remission of customs duties on “donations of any goods by non-residents of Canada to religious, charitable or educational institutions in Canada”. The Canada Border Services Memorandum D8-2-9 provides guidelines and information about tariff item 9815.00.00. Paragraph 2 of the memorandum indicates that any type of goods may be eligible, while paragraph 5 states that goods will qualify “even if the importer is required to pay an administrative fee, and/or shipping and handling charges to obtain the goods”. Paragraph 6 sets forth the following four conditions that must be satisfied in order for a donation to occur:&&&&a. Property is transferred;&&b. The transfer is voluntary;&&c. The transfer is made without expectation of return; and&&d. The intent to donate must be formed at the time of importation.&&&&The animal shelters in the United States and Cayman Islands voluntarily transfer the canines in their possession, free of charge, to the GTHS, a registered Canadian charity prior to their import into Canada. The rescue canines meet the terms and conditions of 9815.00.00.00 and are appropriately classified therein.&&&&With respect to the Goods and Services Tax (GST), goods imported by a charity or a public institution in Canada that have been donated to the charity or institution, are non-taxable importations under section 4 of Schedule VII to the Excise Tax Act. As such, no GST is payable. Code 54 should appear in the “Rate of GST” field (field 35) of Form B3-3, Canada Customs Coding Form.&&