Section 359 — Excise Tax Act: Freight transportation services

Where one or more carriers make a supply in a participating province of freight transportation services in respect of a continuous freight movement of tangible personal property and, before the implementation date for that province, the shipper of the property transfers possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable under subsection 165(2) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date. Where one or more carriers make a supply of freight transportation services in a participating province in respect of a continuous freight movement of tangible personal property, the shipper of the property does not transfer possession of the property before the implementation date for that province to the first carrier engaged in the continuous freight movement, and consideration for the supply is paid or becomes due on or after the specified pre-implementation date for that province and before that implementation date, that consideration is deemed, for the purpose of applying subsection 165(2) to the supply, to have become due on that implementation date and not to have been paid before that implementation date. For the purposes of this section, continuous freight movement , freight transportation service and shipper have the same meanings as in Part VII of Schedule VI.