Film Weekly Year Book of the Canadian Motion Picture Industry (1954)

The Most Favoured Nation tariff on cameras and parts is now nine per cent and the General tariff is 15 per cent. Item 915 "Cellulose nitrate cinematograph and moving picture films, negatives, n.o.p.," sets the rate under British Preferential and Most Favoured Nation tariffs at ten per cent, with no discount when duty is less than 15 per cent. Item 658, which was free under British Prefer¬ ential tariff, Most Favoured Nation tariff and three cents per foot under General tariff, is list¬ ed at the same rates. Item 658 reads: "Motion picture film, of 16 millimetre width and over, when imported by recognized processors of motion picture film having duly equipped laboratories for processing motion picture film in Canada, for the sole purpose of having repro¬ ductions made therefrom, and provided that the original is re-exported within six months from the date of importation, under such regulations as the Minister may prescribe." Item 696 of fords duty-free entry to a very broad range of articles and equipment imported into Canada for the use and by order of any society or institution incorporated or established solely for religious, philosophical, educational, scientific or literary purposes, or for the encour¬ agement of the fine arts, or for the use and by order of any public hopsital, college, academy, school or seminary of learning in Canada, and not for sale. The articles referred to above include sound and silent films, separate sound film tracks, positive and negative slides and filmstrips. The relation of this tariff item to certain articles of equipment is noted further on. Unexposed sensitized negative film of standard commercial width, viz., 35 mm., is rated for duty under Item 187b at 10 per cent ad valorem, Most Favoured Nation tariff. Unexposed sensitiz¬ ed negative film of lesser width, e.g., 8 mm. or 16 mm., is classified for duty purposes under Item 187 at 20 per cent ad valorem under the aforesaid Tariff and is admitted free under British Preferential tariff. Exposed 35 mm. films pay a duty of 1.5 Cana¬ dian cents per foot. This tariff also applies to British films. As mentioned above, films for the use and by order of institutions of societies quali¬ fied for the entry benefits are exempt from duty. Film cameras, for use with films of 8 mm., 16 mm. or 35 mm. silent type, are considered to be PROVINCIAL THE most comprehensive survey of the motion picture in action ever made and recorded is that which was issued by UNESCO in 1950, “Press/ Film/ Radio,” which is one of the “Reports On the Facilities of Mass Com¬ munications” embracing the world. Pages 292 to 305 are devoted to Canada, a flattering amount of space indicative of its high standing in the film world. One of the most interesting sections of Unesco’s Canadian survey was called “Legislation,” which contained informa¬ tion surprising in its nature and quantity. It is reprinted here with revisions to bring it up to date. Apart from the National Film Act governing the admissible free of duty under the provision in Item 696 relating to "mechanical equipment of a class or kind not made in Canada," when for the use and by order of institutions or societies qualified for the entry benefits of this Item and not for sale. Sound projectors for 16 mm. films are held to be articles of a class or kind not made in Canada and are therefore admissible under Item 696, when for the use and by order of institutions qualified for the entry privileges of this Item and not for sale. Slide or filmstrip still-picture projectors, when valued at no less than $25 each retail in Canada, may be admitted free of duty under Item 696, when for the use and by order of institutions qualified for the entry privileges of this item and not for sale. Articles entitled to entry under Tariff Item 696 are exempt from the consumption or sales tax; otherwise this impost of eight per cent levied on the duty-paid value is applicable. Unexposed sensitized negative film in any width, also film cameras, regardless of tariff classification, are subject to an Excise Tax of 15 per cent levied on the duty-paid value. INCOME TAX INFORMATION No changes were made in the Canada-United States Reciprocal Tax Convention during the past year, according to the Department of National Revenue. The effect of the Convention, as stated by the Legal Branch at the Taxation Division, is: "Under the Treaty Agreement between the United States and Canada, a credit for income tax deducted at source by one country will be allowed on the return filed by a taxpayer of the other country. Canadians earning income in the United States may claim credits in their Cana¬ dian returns for income tax withheld at a United States source, and Americans earning income in Canada may claim credit in their American returns for income tax withheld at a Canadian source. "Two methods may be used: (a) net income after withholding may be reported as total income from that source, or (b) the amount of tax withheld may be deducted from the tax otherwise payable in the taxpayer's country." LEGISLATION operation of the National Film Board of Canada, which will be dealt with later on, no special film legislation has been issued by the Canadian Government, this being the domain of the pro¬ vincial governments. Each of these has enacted such legislation, mainly dealing with licensing and censorship as follows: Alberta: Amusements Act and the Regulations under the Amusements Act of 1941 lastly amended by Order in Council No. 488 of 2 May 1949. A recent amendment lowered the age at which children may attend movie theatres after 8 p.m. without adult com¬ panionship from 16 to 14. British Columbia: Moving Pictures Act 1924 as amended by the Moving Pictures Act Amend¬ ment Act 1948 and the Regulations under it (Regulations respecting Moving Picture Films and Film Exchanges, lastly amended by Order in Council No. 272 of 16 February 1950). Manitoba: Amusements Act 1924. 164