This notice provides information on the Legislative Proposals to Amend the Excise Tax Act, where, in support of public health during the COVID-19 pandemic, the Government of Canada proposes to temporarily relieve (i.e., zero rate) supplies of certain face masks and face shields from the Goods and Services Tax / Harmonized Sales Tax (GST/HST).
This proposed temporary relief is applicable for goods that meet the requirements found in paragraph 3 below, which are imported after December 6, 2020. The relief will only be in effect until their use is no longer broadly recommended by public health officials for the COVID-19 pandemic, at which time CBSA will issue an updated Customs Notice.
The legislative proposals provide that:
1 (1) Part II.1 of Schedule VI to the Excise Tax Act is amended by adding the following after section 1:
2 A supply of a face mask or respirator that is designed for human use and is authorized for medical use in Canada.
3 A supply of a face mask or respirator that meets N95, KN95 or equivalent certification requirements, is designed for human use and does not have an exhalation valve or vent.
4 A supply of:
(a) a face mask or respirator that
(i) is designed for human use
(ii) is made of multiple layers of dense material, but may have a portion in front of the lips made of transparent and impermeable material that permits lip reading provided that there is a tight seal between the transparent material and the rest of the face mask or respirator
(iii) is large enough to completely cover the nose, mouth and chin without gaping
(iv) has ear loops, ties or straps for securing the face mask or respirator to the head
(v) is for use in preventing the transmission of infectious agents such as respiratory viruses and
(vi) does not have an exhalation valve or vent or
(b) a prescribed mask or respirator
A supply of:
(a) a face shield that is designed for human use, has a transparent and impermeable window or visor, covers the entire face and has a head strap or cap for holding it in place, but not including a supply of a face shield specifically designed or marketed for a use other than preventing the transmission of infectious agents such as respiratory viruses or
(b) a prescribed shield
(2) Subsection (1) applies to supplies made after December 6, 2020
Imports of goods that are eligible for relief under the Legislative Proposals to Amend the Excise Tax Act as described in paragraph 3 above, may be accounted for under the tariff items listed and described in Appendix A of the Notice. Please note, Appendix A is a non-exhaustive list.
This Notice is available in its entirety on the Canada Border Services Agency website.