Canada Border Services Agency
Symbol of the Government of Canada

MEMORANDUM D4-2-1

Ottawa, January 1, 1991

SUBJECT

SHIPS' STORES REGULATIONS

This memorandum outlines and explains the procedures for the delivery of ships' stores to ships and aircraft, and the conditions governing the issue and securing or sealing of ships' stores.

Regulations

REGULATIONS RESPECTING SHIPS' STORES

Short Title

1. These Regulations may be cited as the Ships' Stores Regulations.

Interpretation

2. In these Regulations

"Act" means the Customs Act;

"Canadian coast guard ship" means a coast guard ship owned by, or operated by or on behalf of, the Government of Canada;

"Canadian fishing ship" means a fishing ship

(a) that is registered or licensed in Canada under the Canada Shipping Act and is owned by one or more persons each of whom is a Canadian citizen, a person resident and domiciled in Canada or a corporation incorporated under the laws of Canada or of a province and having its principal place of business in Canada, or

(b) that is not required by the Canada Shipping Act to be registered or licensed in Canada and is not registered or licensed elsewhere but is owned as described in paragraph (a);

"Canadian warship" means a ship of war, a military transport or a military supply ship owned by, or operated by or on behalf of, the Government of Canada;

"fishing ship" means a ship used for

(a) fishing, sealing or whaling outside Canada, or

(b) provisioning, servicing, repairing or maintaining ships engaged in fishing, sealing or whaling outside Canada;

"foreign warship" means a ship of war, a military transport or a military supply ship owned by, or operated by or on behalf of, the government of a country other than Canada;

"inland waters ship" means a ship engaged in trade on an inland voyage, as defined in section 2 of the Canada Shipping Act;

"international aircraft" means an aircraft operating internationally in the transportation of passengers or goods, or both, for reward;

"military aircraft" means a military aircraft owned by, or operated by or on behalf of, the government of a country other than Canada;

"service ship" means a ship registered in any country and used for the purpose of obtaining scientific data outside Canada;

"telegraph cable ship" means a ship registered in any country and used exclusively for the laying or repairing of oceanic telegraph cables.

Ships' Stores

3. For the purposes of the Customs Act and sections 68.17 and 70 of the Excise Tax Act, the goods set out in column II of an item of the schedule are hereby designated as ships' stores for use on board a conveyance within any class of conveyance described in column I of that item, subject to any applicable exception or limitation set out in the notes to the schedule.

SCHEDULE

(section 3)

Item

Column I
Class of Conveyances

Column II
Ships' Stores

1.

(1) An ocean-going ship engaged in international trade reported under section 95 of the Act and proceeding outside Canada or proceeding to any port in Canada before reporting under that section and proceeding outside Canada

(2) A ship normally engaged in international trade that is engaged, or intends to engage, in the coasting trade not exceeding five days

(3) An ocean-going ship registered in Canada coasting, by way of the Panama Canal or Arctic waters, from a port on the east coast of Canada to a port on the west coast of Canada or from a port on the west coast of Canada to a port on the east coast of Canada

(4) An ocean-going towing or salvage tug reported under section 95 of the Act and proceeding outside Canada

(5) A foreign warship

(6) A telegraph cable ship

(a) edible supplies
(b) spirits and wines1
(c) ales and beers1
(d) mineral waters and soft drinks
(e) tobacco, cigarettes and cigars1
(f) matches and lighter fluid in dispensing cans
(g) soaps and medicinal and toilet preparations
(h) souvenirs and gifts
(i) cleaning compounds and materials, including rags and cloth remnants
(j) boiler compounds, fuel oil treatment preparation and filter sponges
(k) gas for refrigeration equipment and welding purposes
(l) petroleum products, except fuel oil and diesel fuel, and lubricants
(m) coal, fuel oil and diesel fuel
(n) coating for boilers and boiler bricks
(o) paints, varnishes and solvents
(p) stationary and other consumable paper supplies
(q) corrosion and rust inhibitors
(r) smoke abatement and oil slick dispersant preparations

2.

(1) A ship normally engaged in international trade that is engaged, or intends to engage, in the coasting trade

(a) petroleum products, except fuel oil and diesel fuel, and lubricants2
(b) coal, fuel oil and diesel fuel2

3.

3. (1) A fishing ship reported under section 95 of the Act and proceeding outside Canada

(a) petroleum products, except diesel fuel, and lubricants3
(b) tobacco, cigarettes and cigars4
(c) spirits and wines4
(d) ales and beers4
(e) diesel fuel

4.

(1) A Canadian fishing ship reported seasonally under the Reporting of Imported Goods Regulations

(a) diesel fuel

5.

(1) A Canadian warship proceeding outside Canada (2) A service ship reported under section 95 of the Act and proceeding outside Canada

(a) edible supplies
(b) spirits and wines
(c) ales and beers
(d) mineral waters and soft drinks
(e) tobacco, cigarettes and cigars
(f) matches and lighter fluid in dispensing cans
(g) soaps and medicinal and toilet preparations

6.

(1) An inland waters ship

(a) edible supplies
(b) cleaning compounds and materials, including rags and cloth remnants
(c) boiler compounds, fuel oil treatment preparation and filter sponges
(d) gas for refrigeration equipment and welding purposes
(e) petroleum products, except fuel oil and diesel fuel, and lubricants
(f) coal, fuel oil and diesel fuel
(g) coating for boilers and boiler bricks
(h) paints, varnishes and solvents
(i) corrosion and rust inhibitors
(j) smoke abatement and oil slick dispersant preparations

7.

(1) A military aircraft

(2) An international aircraft reported under section 95 of the Act and proceeding outside Canada, or reported under section 12 of the Act following a flight into Canada, other than an aircraft carrying passengers on domestic flights.

(a) aviation fuel
(b) petroleum products, except aviation fuel, and lubricants
(c) spirits and wines
(d) ales and beers
(e) mineral waters and soft drinks
(f) tobacco, cigarettes and cigars
(g) soaps and medicinal and toilet preparations
(h) edible supplies
(i) souvenirs and gifts
(j) stationery and other consumable paper supplies

8.

(1) A Canadian coast guard ship reported under section 95 of the Act and proceeding on a voyage to the Arctic.

(2) A Canadian fishing ship reported under section 95 of the Act and proceeding outside Canada.

(a) spirits and wines5
(b) ales and beers6
(c) tobacco, cigarettes and cigars7

9.

A foreign yacht reported under section 95 of the Act and proceeding outside Canada.

(a) spirits and wines
(b) ales and beers
(c) tobacco, cigarettes and cigars

NOTES

1. Are ships' stores only on a ship described in any of subitems 1(1) and (3) to (6).

2. Limited to 15 days' supply as may be required to operate the ship, measured at the time the ship engages in the coasting trade.

3. Are ships' stores only on a ship that is on a voyage that takes at least five days.

4. Are ships' stores only on a ship that is on a voyage that takes at least ten days.

5. Limited, for each officer and member of the crew, for each week of the voyage, to 1.1 litres (40 fluid ounces) of spirits or wine.

6. Limited, for each officer and member of the crew, for each week of the voyage, to 8.2 litres (288 fluid ounces) of ale or beer.

7. Limited, for each officer and member of the crew, for each week of the voyage, to 250 cigarettes or .91 kilograms (2 pounds) of tobacco or 50 cigars.


GUIDELINES AND GENERAL INFORMATION

Reporting of Ships' Stores

  1. The Ships' Stores Declaration, form E 1 (see Appendix A to this Memorandum), properly certified, and the Crew's Effects Declaration, form Y 14 (see Appendix B to this Memorandum), or their counterpart on the documentation of another country, shall be filed with Customs. Such forms shall be submitted in triplicate in English or French each time a ship engaged in international trade reports inward from a foreign country. While Customs will not always board a vessel at time of arrival, a ship's compliance with Customs laws may be verified at any time.
  2. The original of form E 1 and form Y 14 is filed with the inward report of the ship; the second and third copies are left with the master. When stores are issued or additional stores delivered, a notation to this effect is made on the reverse side of the second and third copies of the form E 1 held by the master. These copies remain with the master until the ship clears directly for a foreign port, at which time the second copies of both forms shall be submitted to Customs and filed with the outward report.
  3. When a ship reporting inward has no cargo, the inward report shall clearly state whether the ship is in ballast or in ballast with ships' stores.
  4. Customs shall permit ships agents a period of twenty-four hours from the time the outward report is filed in which to present the duplicate copies of form E 1 and form Y 14.

Ships' Stores Declaration, Form E 1

5. Form E 1, completed in triplicate, is used to list ships' stores. A boarding Customs Officer may examine form E 1 for completeness. Any quantity of stores not allowed for consumption while in port will be placed in a secure area. Sealing may be required. When ships' stores are delivered to a ship, the quantities and the seal numbers, if applicable, are recorded on the reverse side of form E 1. Similarly, when issues are made, the quantities issued are recorded on the reverse of form E 1.

6. A reasonable quantity of liquor and tobacco products may be left unsecured or unsealed for the personal use of the master or senior ships officers. These quantities are to be recorded on form E 1.

7. Goods for sale or distribution to members of the crew and not to be landed shall be secured or sealed in the same manner as ships' stores and remain secured or sealed until the ship clears for a foreign destination. These goods shall be listed on a separate sheet in triplicate by the Master or other authorized ship's officer and the sheet attached to form E 1. The location of the goods shall be noted on form E 1.

8. Duty paid goods may be delivered as ships' stores, subject to refund or drawback claims under the provisions of Memorandum D7-3-3, Goods for Ships and Aircraft Drawback Regulations. When such stores are delivered to a ship, a copy of form K 36A, Ships' Stores Declaration and Clearance Certificate, is retained by the master and filed with forms E 1 and Y 14.

9. Occasionally, foreign ships may carry animals as a supply of fresh meat; these animals shall be listed on form E 1. These animals shall not be removed from the ship while in Canada.

Crew's Effects Declaration, Form Y 14

10. Form Y 14, completed in triplicate, is used to show quantities of tobacco products and alcoholic beverages in possession of officers and crew as well as non-duty paid items such as televisions, radios, cameras, pets, etc. While such items may be kept in possession of the crew members, quantities of alcoholic beverages and tobacco products exceeding the quantity limitations set out in Memorandum D2-1-1, Temporary Importation of Baggage and Conveyances by Non-residents, shall be secured or sealed.

11. Pets belonging to crew members shall be listed by species on form Y 14 opposite the name of the individual owner. These pets shall not be removed from the ship while in Canada.

12. A crew member may bring personal items ashore without producing evidence that each article is duty paid, but a check of these articles may be conducted prior to the departure of the ship to ensure their exportation. Items declared on form Y 14 which are subsequently duty paid are deleted from the list, and the date and number of the relevant accounting document are noted on form Y 14.

13. When crew members sign off a ship in a Canadian port, any goods in their possession are subject to accounting in the normal manner. Returning Canadians may claim residents' or returning former residents' privileges and foreign crew members may apply for either temporary importation or settlers effects privileges.

Delivery and Issuance of Ships' Stores

14. At Customs offices not operating on a shift schedule, Customs approval for the delivery of ships' stores is restricted to the period between the hours of 8 a.m. to 5 p.m., Monday to Friday. In unforeseen circumstances Customs may, upon application, authorize the delivery or issuance of ships' stores beyond these hours subject to the provisions of Memorandum D1-2-1, Special Services.

15. The attendance of a Customs Officer may be required when cigarettes, cigars, tobacco, wine, spirits and narcotics are laden on board a ship as ships' stores. It is the responsibility of the vendor, chandler, or transportation company to make any necessary arrangements with Customs in order to have the services of a Customs Officer approve delivery, and to verify the quantities, sign the accounting document and place the goods under seal, if required.

16. Normally, narcotics as medical stores are held in the ship's safe under the direct control of the master or ship's doctor. The quantity of narcotics and the location of the safe shall be noted on form E 1.

17. The master or other authorized ship's officer may release a reasonable quantity of tobacco products and spirits for the immediate use of the officers and crew. The quantities issued shall be listed on form E 1. Normally, such issues are made on a weekly basis.

18. Wine used as a table beverage need not be secured or placed under seal. Form E 1 shall indicate the quantity of such wine on board and the location of the storage tanks or barrels.

19. Supplies of beer and ale need not be secured or placed under seal when the ship is departing on a foreign voyage directly from the port of lading. When a ship is to call at another Canadian port on the outward voyage, only 8.2 litres (288 ounces) for each crew member may remain unsecured or unsealed. Appropriate notations should be made on form E 1, to indicate the quantities laden on board and the portion left unsecured or unsealed.

20. The declaration and receipt forms on the reverse side of the Excise Duty Entry, form B 60, shall be properly completed when exciseable goods are delivered as ships' stores.

21. Ships' stores paint may be released to a ship's crew or, in the case of a dry docked ship, to the shipyard for painting of the ship. The quantity of paint released shall be noted on form E 1 as it is removed for use.

International Waters

22. Any ship carrying secured ships' stores or stores under seal and sailing from one Canadian port to another may issue stores in international waters, provided the ship is not participating in the coasting trade of Canada. Under international treaty, the Great Lakes, excluding tributary waters, are international waters.

23. When a ship intends to call at a non-Customs port after reporting outward, a reasonable quantity of stores may be issued for the period preceeding the actual departure from the non-Customs port. Remaining ships' stores shall be secured or sealed.

24. Stores may be checked at each port of call of a ship engaged in international trade.

Fishing Ships

25. When a fishing ship is too small to remain at sea for five days in the case of petroleum products, or for 10 days in the case of tobacco products and spirits, ships' stores shall not be supplied.

26. When a fishing ship reports outward for fishing for 10 days or more, but returns before the lapse of 10 days, the balance of the stores remaining on board shall be secured or sealed and credited to the next fishing trip of 10 days or more.

27. Under the provisions of Memorandum D7-3-3, diesel fuel supplied to fishing ships operating under Customs clearance is subject to drawback.

28. The master or owner of a fishing ship taking delivery of diesel fuel shall furnish the supplier with the following certificate:

"The undersigned, Master or owner of the ....................................... being a Canadian fishing ship and operating under Customs clearance issued at .......................... on ............... 19........, hereby certifies that the quantity of diesel fuel stated herein has been received aboard for use in the said ship in commercial fishing outside Canada and for no other purpose."

-----------

Master/Owner

29. Fishing ship masters are permitted to report at the beginning and end of the fishing season. Masters residing in remote areas may report by mail. When any ship has been supplied with ships' stores, other than diesel fuel, inward and outward reports must be completed in the regular manner.

30. Canadian manufactured and imported beer or ale may be substituted for spirits or wines supplied to fishing ships. This substitution is limited to 8.2 litres (288 ounces) of beer or ale for each 1.1 litres (40 ounces) of spirits or wines allowed.

Inland Waters Ships

31. A ship engaged in trade between ports on the Great Lakes - St. Lawrence River system west of the Anticosti Island lines described in section 2 of the Customs Act is entitled to stores unless both ports are on the minor waters section, that is, between Kingston, Ontario and Pointe-au-Père, Québec.

Ocean Ships

32. An ocean ship engaged exclusively in international trade is entitled to stores under Item I of the Schedule of the Regulations if proceeding from an ocean port outside Canada to a Canadian or United States port on the Great Lakes, even though the ship may travel between Canadian ports during the journey. Similarly, an ocean ship reporting outward from a Great Lakes port to an ocean port outside Canada via another Canadian port is entitled to the stores listed in Item I of the Schedule of the Regulations.

33. Ships' equipment may be placed on board these ships with drawbacks permitted on domestic goods in accordance with Memorandum D7-3-3. When in bond goods arrive for such a ship, the cargo control document is cancelled by the outward report of the ship.

Diversions to Coasting Trade

34. Stores on board or placed on board a ship authorized to make a single trip in the coasting trade lasting not more than five days are not subject to duties (with the exception of alcoholic beverages and tobacco products). When such voyages are to last in excess of five days, payment of duties on consumable stores is required at time of coastwise clearance. The drawback provisions of Memorandum D7-3-3 apply to quantities not consumed at time of clearance to a foreign port.

35. In lieu of the procedure outlined in paragraph 34 of this Memorandum, and at the discretion of the shipping company concerned, the following procedure may be adopted:

(a) An inventory of all consumable stores on board is taken. Security is deposited with Customs in an amount not less than the duties ordinarily payable. The security deposited may be in the form of cash or certified cheque.

(b) Upon completion of the coasting trade voyage, a second inventory is taken and duties are to be paid on stores consumed.

Procedure for Handling Ships' Stores Ex-warehouse

36. For delivery to a ship, when the warehouse and the ship are in the same port, a Canada Customs Coding Form, B 3 ex-warehouse, and a Ships' Stores - Declaration of Master, form B 6D (see Appendix C to this Memorandum), are prepared in sufficient copies to permit two copies of each form to accompany the stores from the bonded warehouse to the ship. In some cases, form B 6D declarations may be stamped on the reverse of form B 3. The stores shall be transported by bonded carrier or by private vehicle under Customs convoy, subject to the provisions of Memorandum D1-2-1. The transaction is concluded with the securing or sealing of the ships' stores and the completion of the certificate on both sets of copies. One copy is returned to complete Customs records, and the other is filed with the outward report of the ship.

37. For delivery to a ship, when the ship is not in the same port as the warehouse:

(a) Documentation described in paragraph 36 of this Memorandum is prepared in sufficient copies to permit two copies to be delivered to the port at which the ship is berthed. The stores shall be transported by a common carrier under bond or private vehicle under Customs convoy, subject to the provisions of Memorandum D1-2-1.

(b) At the second port, the carrier shall contact Customs for approval to deliver to the ship. Customs may require the sealing of the stores on board the ship. Each copy shall be signed and date stamped by a Customs Officer. A copy is retained for filing with the outward report of the ship and another copy is returned to the issuing Customs office for filing with its copy of the form B3 for-warehouse. When immediate delivery is not taken, the stores may remain in a sufferance warehouse for 40 days. At the end of that time, they may be recorded as "unclaimed" and handled accordingly. Alternatively, the stores may be placed in a bonded warehouse prior to the expiry of the 40 day period. In these circumstances, a copy of the form B 3 for-warehouse is to be returned to the issuing office for filing with its copy of form B 3 ex-warehouse.

Procedure for Handling Ships' Stores Dispatched from a Foreign Country

38. In bond stores dispatched from a foreign country for delivery to a ship at a Canadian port may go forward from the Customs point of reporting by bonded carrier under a cargo control document.

39. On arrival at destination, the bonded carrier shall report directly to Customs. If the ship is in port at the time of arrival of the stores, Customs may authorize the bonded carrier to deliver directly to the ship unless the stores are to be sealed. The master or other authorized ship's officer accepting delivery will acknowledge receipt of the stores by signing the cargo control document and indicating his title and date of lading. The stores shall be listed on the outward report of the ship by the transportation company concerned. The cargo control document may be cancelled by reference to either the outward report number or the name of the ship and the voyage number.

40. If the ship is not in port at the time, the stores may be held in a sufferance warehouse for a period up to 40 days. If not exported within the 40 day period, the stores may be entered for bonded warehouse. Alternatively, the stores may be taken to account immediately on a consumption accounting document, subject to the drawback provisions of Memorandum D7-3-3.

41. If the ship to which the stores are consigned does not arrive at the port where the stores are held in sufferance or bonded warehouse, Customs may permit the stores to be reforwarded to the vessel by bonded carrier under a cargo control document.

Direct Delivery of Ships' Stores from an Excise Bonding Warehouse

42. An Excise Duty Entry, form B 60, for excisable goods ex-warehoused for ships' stores shall be completed and the stores shall be described thereon in accordance with Circular ED 211-2, Excise Warehousing Departmental Regulations.

43. For bonding purposes, the delivery of any excisable goods as ships' stores is considered an exportation in bond under the Excise licensee's general bond. Such goods shall be transported in the same manner as excisable goods exported or removed from warehouse.

44. When stores subject to excise duty have been forwarded from a place other than the ship's port of departure, the procedure governing goods for export will apply (Circular ED 211-2). Two copies of form B 60 shall be delivered to Customs at the port where the ship's clearance is to be issued.

45. The master or agent taking delivery of the stores shall complete the declaration on the copies of form B 60. Customs shall complete the certificate on the same copies.

46. The Customs office issuing the ship's clearance shall forward one completed copy of the form B 60 to the shipping licensee to authorize him to cancel his bond obligation.

Delivery from an Excise Bonding Warehouse to a Customs Bonded Warehouse

47. Goods subject to excise duty may be removed in bond from any Excise bonding warehouse to a bonded warehouse for storage and subsequent delivery, as authorized by subsection 58(2) of the Excise Act.

48. Such goods are forwarded on form B 60, in accordance with Circular ED 211-2.

49. The portion of the entry designated "Rewarehoused by Consignee" shall be completed by the operator (licensee) of the bonded warehouse who assumes full responsibility for the quantities shown on the form B 60. When a shortage exists upon delivery, the warehouse operator shall immediately contact Customs to report the discrepancy. Full particulars of the discrepancy shall be recorded on the form B 60 and signed by the examining Customs Officer.

50. A completed copy of the form B 60 bearing the notation "Warehoused on Customs accounting document B 3 No. ..." is forwarded to the shipping licensee.

51. Such goods are removed from warehouse on form B 3 ex-warehouse.

52. Excise duty paid domestic beer may be removed from a brewery to a bonded warehouse for ships' stores. Beer deposited in the warehouse is considered as technically exported for excise duty refund purposes, and may not be returned to the brewer.

53. The warehouse operator shall give a receipt for the beer and complete the declaration as shown on all copies of the excise duty entry. The signature of a Customs Officer is not required on the excise duty entry since the warehouse operator assumes full responsibility for the quantities warehoused.

54. Since, under the provisions of the Excise Act, only a brewer is eligible for refund of excise duty collected upon beer exported, entries for ships' stores and refund claims shall be made by the brewer as provided for in Circular ED 212-7, Credit Entitlements.

Procedure for Handling Ships' Stores for International Aircraft

55. These instructions apply to commercial airlines and their commissary agents who have received permission from Customs to supply their own bar-box seals. The term "bar-box" means the securable boxes or compartments into which stores are placed on international flights.

56. Alcoholic beverages, tobacco products and imported goods for sale or free distribution on board international aircraft may be stored in a bonded warehouse.

57. Ships' stores received from suppliers shall be documented on form B 3 for-warehouse.

58. Companies operating under this procedure shall maintain inventory records, approved by the Regional Chief Officer of Customs which report the actual goods in warehouse in either of the following manners:

a) fully detailed warehouse records which show all warehoused goods by individual commodity and by size or brand within each commodity recorded; or

b) commodities grouped as follows:

(1) spirits or liqueur - miniatures and bottles,

(2) wines and champagne - splits and bottles,

(3) beer - tins or bottles,

(4) cigarettes - packages,

(5) other items for sale or free distribution on board aircraft - by individual commodity,

(6) minor changes in inventory format such as the introduction of a column for Sherry/Dubonnet are acceptable, provided they do not alter the basic concept of the procedure.

59. Stores issued to bar-boxes destined for international flights shall be documented on a pre-numbered, Customs approved, bar report form printed and completed by the airline. At least one copy of each report shall stay on file at the warehouse pending presentation of the weekly accounting specified in paragraph 61 of this Memorandum. At least two copies of the report shall be placed in the bar-box and the bar-box sealed in the usual manner before leaving the warehouse.

60. Stores not consumed during an international flight may be rewarehoused after being documented as incoming stores on one copy of the bar report contained in the bar-box. Partially empty bottles being returned in these bars shall be counted as full bottles, entered on the applicable bar report, and placed with other bottles of that brand. If there is already a sufficiently depleted bottle of that brand on hand, the bottle shall not be entered on a bar report but is to be poured into the part bottle on hand.

61. No less frequently than once per week the warehouse operator shall present form B 3 ex-warehouse to account for all items issued to bars minus the items returned in partially depleted bars, during the preceding seven days.

62. Each form B 3 ex-warehouse shall be supported by:

(a) a daily recap of all bar reports covering outgoing bars,

(b) a daily recap of all bar reports covering partially depleted incoming bars, and

(c) a weekly inventory report (see Appendix D to this Memorandum).

63. The individual bar reports, both incoming and outbound, must remain on file at the warehouse operator's office for a period of not less than three years and be available for audit by Customs during this period.

64. Any shortage or overage must be recorded on the warehouse-keeper's daily inventory record the same days as discovered. Once each week and no later than the first business day following the presentation of the accounting specified in paragraph 61 of this Memorandum, the warehouse operator shall present form B 3 ex-warehouse covering all shortages and form B 3 for-warehouse to account for all overages preceding seven days. When the overage or shortage of alcoholic beverages is less than 750 millilitres (25 ounces), the overage or shortage shall be carried over to the next week's business on the inventory report form.

65. When a company elects to use the inventory system outlined in paragraph 58 (b) of this Memorandum, any shortage shall be considered to be a shortage of the largest volume, highest value article in that inventory item.

66. Removal of ships' stores from a bonded warehouse for consumption in Canada may be allowed, provided the warehouse operator has obtained the written approval of the appropriate provincial liquor authority, and paid any applicable duties prior to removal. Bar-boxes destined for domestic flights shall be prepared from duty paid goods.

67. Bar-boxes made up in locations other than the airport from which an international flight is to originate are not required to be documented other than with the usual bar make-up sheet contained in the bar-box. The bar-boxes shall be sealed immediately following make-up.

Sealing Requirements for International Aircraft

68. As required by the Regulations Respecting the Importation, Transportation and Exportation of Goods (Memorandum D3-1-1), seals shall be intact when bars are moved:

(a) from a bonded warehouse to an international aircraft preparing for departure,

(b) from an international aircraft terminating a flight to a bonded warehouse.

69. When an international aircraft is on the ground, bar-boxes on board shall be sealed. However, seals on bar-boxes containing alcoholic beverages to be served to passengers may be broken when passengers begin boarding an aircraft departing directly on an international flight. These bar-boxes may also remain unsealed on international flights that are progressively boarded or cleared at more than one international airport in Canada, provided no domestic passengers are carried.

Penalty Information

70. Unlawful removal of ships' stores from a bonded warehouse will incur penalties as provided for in Memorandum D4-1-2, Customs Bonded Warehouses Regulations. All other instances of non-compliance may result in seizure or forfeiture or both.

Appendix A - Ship stores declaration

Appendix A

SHIP STORES DECLARATION

[not reproduced here.]

Appendix B - Crew's effects declaration

Appendix B

CREW'S EFFECTS DECLARATION

[not reproduced here.]

Appendix C - Ships stores-declaration of master

Appendix C

SHIPS STORES-DECLARATION OF MASTER

[not reproduced here.]

Appendix D - Weekly report - Attach to weekly B 3 type 22

Appendix D

WEEKLY REPORT - ATTACH TO WEEKLY B 3 TYPE 22

[not reproduced here.]


REFERENCES

ISSUING OFFICE

Licensing Division

LEGISLATIVE REFERENCES

Financial Administration Act, section 17
Excise Act, subsection 58(2)
Customs Act, paragraphs 164(1)(c) and (i)
Canada Shipping Act, section 2
Excise Tax Act, sections 68.17 and 70

HEADQUARTERS FILE

7770-3, 7770-3-1

SUPERSEDED MEMORANDA "D"

D4-2-1, October 12, 1988

OTHER REFERENCES

D1-2-1, D2-1-1, D3-1-1, D4-1-2, D7-3-3, ET 313, ED 211-2, ED 212-7