Section 343 — Excise Tax Act: Freight transportation services

Where one or more carriers make a supply of freight transportation services in respect of a continuous freight movement of tangible personal property and, before 1991, the shipper of the property transferred possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable in respect of any consideration for the supply that is paid or becomes due before May 1991. Where one or more carriers make a supply in Canada of freight transportation services in respect of a continuous freight movement of tangible personal property, the shipper of the property does not transfer possession of the property before 1991 to the first carrier engaged in the continuous freight movement, and consideration for the supply is paid or becomes due after August 1990 and before 1991, that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991. For the purposes of this section, “carrier”, “continuous freight movement”, “freight transportation service” and “shipper” have the same meanings as in Part VII of Schedule VI.