Akwesasne Residents Remission Order

Registration DORl91-412 13 June, 1991  CUSTOMS TARIFF
P.c.1991-112913June.1991

His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue and the Minister of Indian Affairs and Northern Development, pursuant to section 101 of the Customs Tariff, is pleased hereby to make the annexed Order respecting the remission of duties paid or payable on goods acquired in the United States and imported into Canada by Akwesasne residents, by owners or operators of duly authorized community stores and by the Mohawk Council of Akwesasne or an entity authorized by that Council.

ORDER RESPECTING THE REMISSION OF DUTIES PAID OR PAYABLE ON GOODS ACQUIRED IN THE UNITED STATES AND IMPORTED INTO CANADA BY AKWESASNE RESIDENTS, BY OWNERS OR OPERATORS.OF DULY AUTHORIZED COMMUNITY STORES AND BY THE MOHAWK COUNCIL OF AKWESASNE OR AN ENTITY AUTHORIZED BY THAT COUNCIL .

Short Title
1. This Order may be cited as “the Akwesasne Residents Remission Order.”

Interpretation
2. In this Order
"Akwesasne Reserve" means the St Regis No. 15 (Quebec) and the Cornwall Island Reserve. No. 59 (Ontario);

“Akwesasne resident" means any individual who has established permanent residence on the Akwesasne Reserve;

"Authorized identification" means an identification document issued to an Akwesasne resident by the Mohawk Council of Akwesasne;

“Cornwall Customs Office" means the customs office located at the highway border crossing on Cornwall Island;

“Duly Authorized Community Store" means a store on the Akwesasne Reserve that is established primarily for the sale of goods to Akwesasne residents and that is authorized by the Mohawk Council of Akwesasne in a manner acceptable to the Minister of National Revenue and the Mohawk Council of Akwesasne;

"Duties" has the same meaning as in section 66 of the Customs Tariff;

“Personal use" means any use, other than any income-producing use by an Akwesasne resident or by a member of an Akwesasne resident's household.

Application
3. This Order applies in respect of goods referred to in sections 7, 8 end 9 that are acquired in the United States and Imported Into Canada on or after the day this Order comes into force.

Remission
4. Subject to section 7, remission Is hereby granted of the duties paid or payable In respect of goods for personal use that are imported Into Canada by an Akwesasne resident

5. Subject to section 8, remission is hereby granted of the duties paid or payable In respect of goods, other than alcoholic beverages, cigars, cigarettes and manufactured tobacco, set out in the schedule that are imported into Canada by the owner or operator of a duty authorized community store, or by a person on behalf of that owner or operator, for the purpose of sale to Akwesasne residents for their personal use.

6. Subject to section 9, remission is hereby granted of the duties paid or payable in respect of goods, other than alcoholic beverages, cigars, cigarettes and manufactured tobacco, that are imported into Canada by the Mohawk Council of Akwesasne or an entity authorized by that Council to import the goods, for use in connection with educational, hospital or social services provided to residents of the Akwesasne Reserve.

Conditions
7. The remission referred to in section 4 is granted to an Akwesasne resident on condition that
(a) the goods are reported under section 12 of the Customs Act, the Cornwall Customs Office at the time of importation and accounted for at the Cornwall customs office under section 32 of that Act;
(b) an authorized Identification is presented by the Akwesasne resident to the customs officer at the Cornwall Customs Office at the time of importation;
(c) the goods are for the personal use of that Akwesasne resident or are imported for the personal use of another Akwesasne resident;
(d) the goods that are imported for personal use are not sold or otherwise transferred within 12 months after the day of importation, other than to an Akwesasne resident for the personal use of that Akwesasne resident; and
(e) where duties have been paid. a claim for remission is made to the Minister of National Revenue within two years after the day the goods are accounted for under section 32 of the Customs Act.

8. The remission referred to in section 5 is granted to an owner or operator of a duly authorized community store on condition that:
(a) the goods set out in the schedule are reported under section 12 of the Customs Act at the Cornwall customs office at the time of Importation and accounted for at the Cornwall Customs Office under section 32 of that Act;
(b) evidence of the authorization to operate the duly
(c) the goods set out in the schedule are sold only to Akwesasne residents for their personal use or the personal use of another Akwesasne resident and
(d) where duties have been paid, a claim for remission is made to the Minister of National Revenue within two years after the day the goods are accounted for under section 32 of the Customs Act.

9. The remission referred to in section 6 is granted to the Mohawk Council of Akwesasne to any entity authorized by the Mohawk council of Akwesasne to import goods referred to in section 6 on condition that
(a) the goods are reported under section 12 of the Customs Act at the Cornwall customs office at the time of Importation and accounted for at the Cornwall customs office under section 32 of that Act;
(b) where the goods are imported by an entity authorized by the Mohawk Council of Akwesasne to import the goods, evidence of the authorization is presented to the customs officer at the Cornwall customs office at the time of importation;
(c) the goods are not sold or otherwise transferred within 12 months after the day of importation, other than to an Akwesasne resident for the personal use of that Akwesasne resident; and
(d) where duties have been paid, a claim for remission is made to the Minister of National Revenue within two years after the day the goods are accounted for under section 32 of the Customs Act

SCHEDULE
(Sections 5 and 8)
1. Bedding
2. Books, magazines and newspaper
3. Clothing apparel and footwear
4. Cosmetics
5. Diapers and baby products
6. First aid products
7. Foodstuff and edible products
8. Household cleaning products
9. Hygiene products
10. Indian craft articles, such as baskets and beaded work
11. Iron workers tools, such as tool belts
12. Light bulbs
13. Light hardware, such as hammers, nails and paint brushes
14. Personal needs products
15. Sporting goods, such as hockey sticks, fishing gear and protective sports equipment
16. Art supplies and stationery and paper products such as writing paper
17. Waste disposal bags

GUIDELINES AND GENERAL INFORMATION

The following information is provided as an explanatory supplement, and is not part of the Remission Order

1. The remission order provides relief from duty and taxes on goods acquired in the United States by a resident of the Akwesasne Reserve for his personal and household use, which are imported at the Customs office on Cornwall Island, Ontario.
A resident of the Akwesasne Reserve is, for the purposes of the remission order, an individual who has established a permanent residence on either St. Regis Reserve No. 15 (Quebec) or Cornwall Island Reserve No. 59 (Ontario). Such persons will have met the Qualifications of the Akwesasne Residency By-law (Law No.S9-01) and will be in possession of an identity document issued by the Mohawk Council of Akwesasne.
The remission order also provides relief on certain goods imported at the Customs office on Cornwall Island by a duly authorized community store for resale to residents of the Akwesasne Reserve, and on goods other than alcohol and tobacco products that are imported at the Customs office at Cornwall Island for use in connection with educational, hospital, and social services by the Mohawk Council of Akwesasne.

GOODS ADMISSIBLE -IMPORTATIONS BY INDIVIDUALS
2. Goods which may be imported by a resident of the Akwesasne Reserve free of duties and taxes are limited solely to goods for that importer's personal or household use. Examples of such items include:
(a) wearing apparel, household furniture and appliances, books, musical instruments, bicycles, hobby and other hand tools, sporting goods, and firearms;
(b) groceries, household cleaning products, cosmetics, toiletries, and personal hygiene products;
(c) motor vehicles and vehicle parts for personal use;
(d) houses for use as dwellings or residences;
(a) materials for Indian crafts;
(f) tobacco products for personal consumption;
(g) alcoholic beverages for personal consumption.

GOODS NOT ADMISSIBLE -IMPORTATIONS BY INDIVIDUALS
3. The following are examples of goods not admissible under the terms of the remission order:
(a) goods for the accommodation of others, for sale or hire or for use in a business or manufacturing establishment or as contractor's outfits, such as office equipment and furniture~ dental chairs, welding equipment, metal and woodworking machines, motor vehicles and trailers for commercial use;
(b) buildings used other than as dwellings or residences;

4. Goods classified under Schedule VII of the Customs Tariff are prohibited entry. Examples of such goods as explained in Customs Memoranda 09 series are:
(a) publications that are deemed to be obscene or constitute hate propaganda;
(b) counterfeit coins and circular metallic trading checks;
(c) used or second-hand motor vehicles. other than current model year, which have not been exempted from prohibition;
(d) prohibited weapons.

PROCEDURE -IMPORTATIONS BY INDIVIDUALS
5. In order to qualify, goods imported by a qualified individual must have been acquired in the United States for the personal use of the individual and have been reported to Customs upon entry at the Cornwall Customs office. Goods accompanying the traveler, that are not subject to other controls or permit procedures, will be released without documentation upon presentation of the authorized identification. Goods acquired in the United States that are consigned and being imported by an Akwesasne resident and are being transported by a commercial carrier will be released in the same manner as goods accompanying the traveler once the resident attends the Customs office and produces the authorized identification. Customs may refuse to release goods which obviously exceed reasonable quantities for personal use. Any disputes arising from a refusal to release goods may be referred to the dispute resolution committee described in paragraph 25 of this document.

6. Residents of Akwesasne who wish to import a firearm acquired outside of Canada must be at least 1 6 years old and present a valid Firearms Acquisition Certificate. The Customs inspector will prepare form 815, Casual Goods Accounting Document, noting the FAC number, to account for the firearm. Importations of restricted weapons must be accompanied by valid permits to convey. Further information on this matter is contained in Customs Memorandum 019-13-2. Residents of Akwesasne who wish to import a firearm must note that there may be other restrictions or permits required beyond those required by Canada Customs. Persons wishing to import a firearm should check with the appropriate police force to determine whether additional restrictions apply.

7. Importations of motor vehicles will be documented on Casual Goods Accounting Document form B 15. Form K22 will be issued to permit the vehicle to be registered with the Provincial Licensing Authority.

DIVERSION, SALE, OR DISPOSAL
8. Goods imported by a resident of Akwesasne, for which relief from the payment of duties and taxes has been granted, must not be sold or otherwise-disposed of for one year after importation to any person who is not entitled to claim the benefits of the remission order. If goods are disposed of within that year to a person who is not a resident of Akwesasne, duties and taxes must be paid on the value of the goods at the time of the diversion. The person disposing of the goods must forthwith report the transfer of the goods to the Customs office at Cornwall and pay the appropriate duty and taxes.

MOHAWK COUNCIL AND COUNCIL EMPOWERED ENTITIES
9. Goods, other than tobacco products or alcoholic beverages, imported by the Mohawk Council of Akwesasne, or by an entity-empowered by that Mohawk Council of Akwesasne, which are intended for use directly in educational, hospital or social service activities on the Reserve, or for the personal use of residents of the Reserve, may be imported pursuant I to the terms of the remission order. For the purposes of this remission order, a Council empowered entity must be an educational, hospital or social service entity or organization that is owned or controlled-by the Mohawk Council of Akwesasne, whose primary purpose is the provision of community service on a not-for-profit basis. The goods will be documented by Customs on a formal accounting document, which will be supported by a copy of a resolution of the Mohawk Council of Akwesasne explaining the intended use of the goods. If a Customs inspector has grounds to believe that an importation does not fall within the scope of the remission order the matter would be dealt with under the dispute resolution system.

DULY AUTHORIZED COMMUNITY STORE
10. "Duly authorized community store" means a community store on the Akwesasne Reserve authorized by the Mohawk Council of Akwesasne for the purpose of this remission order, which is established primarily for the sale of goods to residents of the Akwesasne Reserve.

11. Relief from duties and taxes will be granted on the goods listed below when imported by a duly authorized community store for resale to residents of the Akwesasne Reserve:

  • foodstuff and edible products;
  • clothing apparel and footwear;
  • bedding;
  • hygiene products;
  • personal needs products;
  • diapers and baby products;
  • first aid products;
  • light bulbs;
  • waste disposal bags;
  • cosmetics;
  • household cleaning products;
  • books, magazines and newspapers; l
  • ight hardware such as hammers, nails and paint brushes;
  • iron workers' tools such as tool belts;
  • stationery and paper products such as writing paper and art supplies;
  • sporting goods such as hockey sticks, fishing gear and protective sports equipment;
  • Indian craft articles such as baskets and beaded work

12. A store that wishes to obtain permission to import goods under the remission order shall ¬make application to the Mohawk Council of Akwesasne.

13. Before authorizing a community store, the Mohawk Council shall obtain an undertaking from the store owner. In the undertaking, the store owner shall agree to abide by the operating guidelines respecting the goods under the remission order. Store owners must also obtain any necessary permits or licenses to operate from the appropriate authorities.

14. Once the Mohawk Council of Akwesasne has decided to issue an authorization to a community store, a copy of the authorization will be forwarded to the Cornwall Customs office. Customs will only allow the benefits of the remission order to a store named on the list provided by the Mohawk Council of Akwesasne.

PROCEDURE· DULY AUTHORIZED COMMUNITY STORE

15. Goods imported under the provisions of this remission order are to be reported to Customs at Cornwall Island, and are to be accounted for on Canada Customs Coding Form B3. Goods which are subject to control or regulation will not be released until the necessary I' permits and/or inspections have been completed as required by the appropriate government departments. Store owners must keep copies of the forms B3 on file for review by the authorized auditor. Customs will refuse to authorize release of goods under this remission order which are not properly declared and accounted for, or goods which are not on the list of goods shown in paragraph 10. In addition, Customs may refuse to authorize release of goods which obviously exceed reasonable quantities for resale to I residents of the Reserve.

16. Where a substantial part of a store's clientele (more than 15 per cent) consists of non· residents of the reserve, the store will be obliged to segregate the goods imported under the remission order from goods that are available for sale to the non-residents or affix an appropriate sticker/tag to indicate they are non-duty paid.

17. If a store permits non-residents of the Reserve to purchase goods imported under the remission order, the store is required to report to Customs weekly and pay the appropriate duty and taxes on the goods. Store owners may choose to collect the appropriate amount of duty and taxes from their non-resident customers, or may pay the amount owing from store funds, as they choose. If the average weekly sales of such goods to non-residents is less than $100.00 value for duty, the store owner will be authorized to report to Customs monthly. Failure by the store owner to report sales to non-residents of the Reserve, or to pay the appropriate duties and taxes, will be a failure to comply with these guidelines and may result in suspension as provided for in paragraph 19.

18. The Mohawk Council of Akwesasne will require an annual verification of the books and records of the community store to satisfy itself as to the volume of business conducted by the store and the reasonableness of the reported share of business involving non-residents of the Reserve. The verification will be carried out by a representative of the Mohawk Council of Akwesasne Licensing Commission. The verification will ensure that the business conducted by the store is of a nature to restrict the benefit of purchasing .goods imported under the terms of the remission order to residents of the Reserve, and that sales of goods to non-residents of the Reserve have been properly reported to Customs and the duty and taxes paid.

19.  If the Mohawk Council of Akwesasne, or Canada Customs, believes at any time that an authorized community store is not complying with the required operating procedures, in accordance with the procedures described in paragraph 23, the Council conduct an investigation into the allegation. If a determination is made that a store owner is not in compliance with the operating procedures; the Council will advise the store owner of the corrective action that must be taken. If the store owner does not undertake immediate steps to comply, the Council will immediately rescind the authorization and will advise Customs forthwith that the store is no longer" permitted to import goods duty and tax free.

20. In the case of a first time offence, the store owner may apply for reinstatement of privileges after a two week suspension by showing that the necessary action has been taken to comply with the requirements. In the case of a second offence within a three year period, a suspension of one month will be served before the store owner can apply for reinstatement of privileges. If the store owner commits a third offence within a three year period, privileges will be permanently refused to his store with no consideration for reinstatement.

21. Any advertisement by 8 duly authorized community store that indicates that goods for sale duty and tax free must plainly show that the goods are available only to residents of the Akwesasne Reserve who are in possession of an identity card issued by the Mohawk Council of Akwesasne.

22. Failure to comply with the terms and conditions specified in the remission order may render goods imported under the benefits of the remission order subject to seizure and forfeiture.

ADDITIONAL INFORMATION

23. Complaints about the activities of the stores that are received by Customs will be forwarded to the Mohawk Council for investigation and appropriate action. Within seven days of receiving a complaint, the Mohawk Council will provide Customs with a complete report on the results of the investigation and any remedial action taken.

24. Customs and the Mohawk Council of Akwesasne will cooperate in order to ensure that the provisions of the remission order are complied with and maintained by the residents of the Akwesasne Reserve. On a monthly basis, a representative of the Mohawk Council and a representative of Customs will meet to discuss the monitoring and application of the remission order: During these meetings. Customs will report to the Mohawk Council on any reports of abuse that have been received, or detected by Customs, the Mohawk Council will provide Customs with details of the verifications that have been carried out during the previous month, and results of investigations into previous reports of abuse;

25. Customs and the Mohawk Council will establish a dispute resolution committee consisting of one representative of the Council and one representative of Customs to review disputes over the application of the remission order. For example, the committee may review the circumstances of an importation in order to determine whether the shipment qualifies or falls outside the remission order, or the committee may review whether a store applying for authorization to import under the remission order meets the definition of a duly authorized community store. In cases where the committee cannot reach agreement on a resolution for the dispute, an independent third party will be called upon to mediate. The mediator will be a person agreeable to both the Mohawk Council and Customs, and the cost shall be shared equal by both the Mohawk Council and Customs.