Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
GST/HST Rulings Directorate
5th floor, Tower A, Place de Ville
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 248568r
Dear [Client]:
Subject: GST/HST interpretation - Certificate of registered owner
We received your request of February 26, 2025, to reconsider our interpretation letter issued on January 10, 2025, under case number 248568 as that letter did not address the situations concerning subsection 179(3) as described in your original request […].
Accordingly, a revised interpretation letter under case number 248568r is being issued. We apologize for the delay in this response.
The HST applies in the participating provinces at the following rates: 13% in Ontario; 14% in Nova Scotia; and 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Based on your correspondence and […] telephone conversations […], we understand the following with regards to your proposed transaction:
1. The Manufacturer is a Canadian resident corporation that is registered for the GST/HST and is engaged in the business of manufacturing or selling […][TPP].
2. NonResCo is a non-resident person that is not registered for the GST/HST and does not carry on business in Canada. NonResCo is in the business of buying and selling [TPP].
3. CanCo is a Canadian resident corporation that is registered for the GST/HST.
4. The Dealer is a Canadian resident corporation that is registered for the GST/HST.
5. The Manufacturer makes a supply by way of sale of [TPP] to NonResCo.
6. NonResCo then resells the [TPP] to CanCo.
7. CanCo, in turn, sells the [TPP] to the Dealer.
8. CanCo and the Dealer will use the [TPP] originally acquired from NonResCo exclusively in the course of their commercial activities.
9. Following the supply of the [TPP] made by CanCo to the Dealer, NonResCo instructs the Manufacturer to deliver the [TPP] by courier to the Dealer’s premises in Canada.
10. The Dealer acquires physical possession of the [TPP] as the recipient of a taxable supply by way of sale of the [TPP] made by CanCo.
11. The Dealer sells the [TPP] to consumers in Canada.
12. In accordance with subparagraph 179(3)(c)(ii), CanCo issues a certificate of registered owner to the Manufacturer that includes CanCo’s name and GST/HST registration number.
INTERPRETATION REQUESTED
Regarding the certificate of registered owner described in fact 12, you would like to know:
1. Whether a single certificate of registered owner (“blanket certificate”) may be issued for multiple ongoing drop shipment arrangements.
2. Whether the certificate of registered owner may simply refer to the Dealer (corresponding to the “consignee” in subsection 179(3)) using the generic term “consignee” without actually identifying the Dealer by name.
3. Where the transactions involve delivery of [TPP] to different Dealers, whether a single certificate of registered owner can be used with respect to all of the Dealers, provided the certificate identifies each Dealer by name, or whether a separate certificate must be issued for each Dealer.
4. Where the answer to 3) is that several Dealers can be grouped together on a single certificate of registered owner, whether the list of Dealers on the certificate can be modified such as to add the names of additional Dealers or delete the names of Dealers that are no longer a party to the transaction.
INTERPRETATION GIVEN
Interpretation 1
Similar to drop-shipment certificates issued under subsection 179(2), a certificate of registered owner that is issued under subsection 179(3) may be restricted to a single drop shipment or it may be a blanket certificate covering multiple drop shipments. The certificate must be sufficiently detailed to easily identify each of the drop shipments to which it relates and all of the parties to the drop shipments.
Interpretation 2
A certificate of registered owner issued pursuant to subparagraph 179(3)(c)(ii), must clearly identify the consignee’s legal name and cannot simply refer to the Dealer using the generic term “consignee.”
Interpretation 3
Where the Manufacturer, NonResCo, and CanCo undertake ongoing drop shipment transactions with deliveries of [TPP] to different Dealers, the Dealers may not be grouped together on the same certificate of registered owner. A separate certificate of registered owner must be issued in respect of each Dealer which identifies them specifically by name.
Interpretation 4
Not applicable, given that the Dealers may not be grouped together on the same certificate of registered owner.
DISCLAIMER
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, the interpretation(s) given in this letter, including any additional information, is not a ruling and does not bind the Canada Revenue Agency (CRA) with respect to a particular situation. Future changes to the ETA, regulations, or the CRA’s interpretative policy could affect the interpretation(s) or the additional information provided herein.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 236-335-0893.
Should you have additional questions on the interpretation and application of the GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Sincerely,
Kevin Tran
Rulings Officer
Border Issues Unit 2
General Operations and Border Issues Division
GST/HST Rulings Directorate
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