Application of the Computer Carrier Media Remission Order

Memorandum D8-3-15

Ottawa, February 03, 2014

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In Brief

  • The editing revisions made in this memorandum do not affect or change any of the existing policies or procedures.

This memorandum outlines and explains the conditions under which remission may be granted on computer carrier media.

Legislation

Computer Carrier Media Remission Order


Guidelines and General Information

1. All Canada Border Services Agency (CBSA) documents relating to goods imported in accordance with the Computer Carrier Media Remission Order, are to bear the number in Council (refer to the legislative references of this memorandum).

2. The value for duty of computer software is to be determined under the value for duty provisions of the Customs Act (the Act) and must include the value of the carrier medium, the value of the instructions or data to be used by data processing equipment contained on it, and the value of reproducing the instructions or data on the medium. For more information, refer to Memorandum D13-11-6, Determining Value for Duty of Computer Software.

3. The value for duty of the carrier medium and the reproduction service will be determined as follows:

  • (a) If the medium is purchased by the exporter under competitive conditions, the purchase price will be acceptable for value for duty purposes.
  • (b) If the medium is manufactured by the exporter, the valuation provisions of the Act will apply. For more information, refer to D13-11-6.
  • (c) If the reproduction service is purchased by the exporter under competitive conditions, the purchase price will be acceptable for value for duty purposes.
  • (d) If the reproduction service is performed by the exporter, the valuation provisions of the Act will apply. For more information, refer to D13-11-6.

4. Importers are requested to declare the value of the instructions or data contained on the carrier medium separately from the value of the carrier medium and the reproduction service.

5.   The value of the instructions or data which are subject to the Remission Order refers to the value of the instructions or data contained on the carrier media only. Instructions or data contained in other forms such as printed matter, instruction booklets, etc., are not subject to the Remission Order and should be valued separately from the carrier medium and the instructions or data contained on the carrier medium. Although such material is to be valued separately, the tariff classification of the subject goods is not influenced.

6.   The Remission Order does not consider the applicability of the goods and services tax (GST). The GST is payable on the full value for duty of the software package (i.e., disk and program).

Additional Information

7. For more information, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time/except holidays). TTY is also available within Canada: 1-866-335-3237.

References

Issuing office :
Trade Programs Directorate
Headquarters file :
Other references :
Superseded memorandum D :
D8-3-15 dated July 2, 1997