Relief from tax on importation is currently granted to goods imported into Canada for warranty repair provided the goods are exported after the service is performed. 

However, where the imported good is replaced rather than repaired, relief from tax on importation does not apply. The budget proposes to extend the relieving rules to cover situations where a replacement good is provided under warranty and is exported in place of the original imported defective good (e.g., where the original good is destroyed). 

The amendment is proposed to apply to goods imported after February 28, 2000.