Application of the Computer Carrier Media Remission Order
Memorandum D8-3-15

Ottawa, February 03, 2014

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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, call contact the CBSA Border Information Service (BIS):
Calls within Canada & the United States (toll free): 1-800-461-9999
Calls outside Canada & the United States (long distance charges apply):
1-204-983-3550 or 1-506-636-5064
TTY: 1-866-335-3237

Contact Us online (webform)

Contact Us at the CBSA website

References

Issuing office:

Trade Programs Directorate

Headquarters file:

Legislative references:

Customs Act
Computer Carrier Media Remission Order

Other references:

D13-11-6

Superseded memorandum D:

D8-3-15 dated July 2, 1997

Date modified:

2014-02-03