Excise Tax Act — E-15 179
tion 241, the following rules apply: (e) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in paragraph (a), and (f) the taxable supply referred to in paragraph (a) is deemed to have been made outside Canada. Exception — export (4) For the purposes of this Part, if (a) paragraphs (1)(a) and (c) apply to (i) a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii), or (ii) an acquisition by a registrant of physical possession of particular tangible personal property that is referred to in subparagraph (1)(a)(iv), and (b) either (i) the registrant (A) causes physical possession of the particular property to be transferred at a place outside Canada, (B) ships the particular property to a destination outside Canada that is specified in the contract for carriage of the particular property, (C) causes physical possession of the particular property to be transferred to a common carrier or consignee that has been retained to ship the particular property to a destination outside Canada, or (D) sends the particular property by mail or courier to an address outside Canada, or (ii) the following conditions are met: (A) the registrant causes physical possession of the particular property to be transferred at a place in Canada to a person (referred to in this subparagraph as the “exporter”) for export, (B) after that transfer, the exporter exports the particular property as soon as is reasonable having regard to the circumstances surrounding the exportation and, if applicable, the normal business practices of the exporter and of the owner of the particular property, (C) the particular property has not been acquired by any owner of the particular property for consumuption use or supply in Canada at any time after that transfer and before the property is exported, (D) after that transfer but before the particular property is exported, the particular property is not further processed, transformed or altered except to the extent reasonably necessary or incidental to its transportation, and (E) the registrant maintains evidence satisfactory to the Minister of the exportation of the particular property or, if the exporter is authorized under subsection 221.1(2), the exporter provides the registrant with a certificate in which the exporter certifies that the particular property will be exported in the circumstances described in clauses (B) to (D), the following rules apply: (c) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in subparagraph (a)(i) or the acquisition referred to in subparagraph (a)(ii), as the case may be, and (d) if subparagraph (a)(i) applies, the taxable supply referred to in that subparagraph is deemed to have been made outside Canada. Retention of possession (5) If (a) a particular registrant makes a particular taxable supply in Canada of particular tangible personal property by way of sale to a particular non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the particular property, and (b) the particular registrant or another registrant has physical possession of the particular property at the particular time at which the particular property is delivered or made available to the particular non-resident person under the agreement for the particular taxable supply and retains physical possession of the particular property after the particular time (i) solely for the purpose of transferring physical possession of the particular property to the particular non-resident person, a person (in this subsection referred to as a “subsequent purchaser”) that subsequently acquires ownership of the particular property or a person designated by the particular non-resident person or a subsequent purchaser, (ii) for the purpose of making another taxable supply in Canada of a commercial service in respect of the particular property to the particular