Tariff Notice – 11

December 14, 2005

Excise Tax Act Changes

On November 25, 2005, Bill C-259, an Act to amend the Excise Tax Act (elimination of the excise tax on jewellery) received Royal Assent. The Canada Revenue Agency has issued a Fact Sheet replicated below on this issue. This amendment has had the following immediate effect on the administration of excise tax:

• The excise tax on clocks adapted for household or personal use, except those specially designed for the use of the blind, will be increased to 10% of the amount by which the sale price or duty paid value exceeds fifty dollars, as of November 25, 2005.
• The excise tax on all watches has been eliminated as of November 25, 2005.

Goods imported under the following Tariff Items may be affected:

Watch headings and tariff items:

91.01 Wrist-watches, pocket-watches and other watches, including stop-watches, with case of precious metal or of metal clad with precious metal.

9101.11.00, 9101.12.00, 9101.19.00, 9101.21.00, 9101.29.00, 9101.91.10, 9101.91.90, and 9101.99.00

91.02 Wrist-watches, pocket-watches and other watches, including stop-watches, other than those of heading 91.01.

9102.11.00, 9102.12.00, 9102.19.00, 9102.21.00, 9102.29.00, 9102.91.10, 9102.91.90 and 9102.99.00

Clock headings and tariff items:

91.03 Clocks with watch movements, excluding clocks of heading 91.04.

9103.10.00 and 9103.90.00

91.05 Other clocks.

9105.11.00, 9105.19.00, 9105.21.10, 9105.21.90, 9105.29.00, 9105.91.10, 9105.91.90, and 9105.99.90.

Additional information is available in the Excise Taxes and Special Levies Notices section of the Canada Revenue Agency's Web site.