International Trade committee  Thank you very much. First of all, you were discussing the definition for “related persons” as it pertains to remanufacturers. That definition is not applicable. As I mentioned earlier, we administer the provisions of annex 7C of the agreement. To be deemed a certified independent remanufacturer, those criteria reference an “associated person”, not a “related person”.

International Trade committee  Thank you. The definition of FOB does exclude shipping costs. We have heard from industry that other costs related to these shipments were deducted for purposes of the duties in the United States. We're reviewing that right now in consultation with international trade and we are developing a policy, because it was the intention that certain costs could be deducted from the export price.

International Trade committee  I'll just note that we are currently administering the requirements outlined in annex 7C of the agreement.

International Trade committee  Okay.

International Trade committee  Sure.

International Trade committee  Again, this is a standard provision. It is also in the Income Tax Act and the Excise Tax Act for purposes of the goods and services tax. It basically provides for the liability of the directors of the corporation.

International Trade committee  At this time, I couldn't really comment on the application of that clause and on how it would work. I can get back to the committee.

International Trade committee  I'm saying I'm not aware of any standard procedure on how the clause would apply. I can get back to the committee.

International Trade committee  The people who are referred to here are the people who have sold their right and will be receiving the refund through the EDC. They won't in fact be paying this charge.

International Trade committee  That's a standard provision in the legislation now that provides for the minister to waive interest or penalty to provide fairness to the clients. It's a fairness policy, more or less.

International Trade committee  I'm not certain why there is a 10-year provision. However, as I say, it is a standard provision that we are using to administer our fairness policy.

International Trade committee  Yes, it is the standard provision.

International Trade committee  Could you repeat the clause number?

International Trade committee  Again, that would be a standard provision; however, it would be related to collections.

International Trade committee  This would allow a taxpayer operating under option B to obtain a refund of the tax paid through the transition period, because they'll have to pay at the rate provided by option A.