&&These are dogs of various breeds and/or mixed breeds that are donated by animal shelters in the United States to the Alliston & District Humane Society (ADHS). The ADHS does not pay any money for the dogs, which would otherwise be euthanized by the animal shelters due to overpopulation; however, the ADHS does pay the cost of transporting the animals to their facility in Canada. After importation, the dogs remain with the ADHS 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, Charitable Goods provides guidelines and information about tariff item 9815.00.00. Paragraph 1 of the memorandum indicates that any type of goods may be eligible, while paragraph 4 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 voluntarily transfer the canines in their possession, free of charge, to the ADHS, 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.&&