Class 5 / 6 inspections Flashcards
class 5 property must include only land or improvements, or both,
a)
b)
c)
d)
e)
f)
g)
a) used as a gathering pipeline
b) used or held for purposes such as extracting, processing, manufacturing, or transporting of products
c) storage of products Ancillary to or in conjunction with (b)
d) included in class 2 or 4
e) used of held for the purpose of, or for purposes ancillary to, the business of transportation by railway
f) used principally as an outlet for the sale of a finished product to a purchaser for purposes of his or her own consumption or use and not for resale in either the form in which it was purchased or any other form
g) used for extracting, processing, manufacturing or storage of food, non-alcoholic beverages or water
A property used solely for _________ does not qualify for class ____.
For class ____ to apply to storage areas, the storage must be ancillary to, or conjunction with, extracting, processing, manufacturing or transporting products. in this context storage occurs if the product remains at the property for atleast 72 hours
storage , 05
Class 05 is determined based on the type or use of the property not its _______
Ownership
The type of business that operates at the property is _________ for determining the type or use of the property
relevant
if insufficient information is provided, classify the property as class ___
06
step 1 is the property used or held for a qualifying purpose?
used for:
held for:
products:
Qualifying purposes:
used for: actually in use for a qualifying purpose and can apply while a property is under construction or renovation
held for: depends on the facts: vacant parcel was subject to a gravel extraction permit (which would ordinarily cause the property to be classified as class 05 because of extraction. the fact that the owner was actively marketing the property to be used for residential development meant the property was not held for a class 05 purpose
products: in the context of class 05, the word “products
connotes a tangible. physical products rather than an intangible product such as a medical test result.
Qualifying purpose: class 05 applies if the property is used or held for only one of the following qualifying purposes. (if activity is storage, it must be ancillary to extracting, processing, manufacturing or transporting of products
extracting of products:
to extract is to remove or take out, esp by effort or force; obtain a natural resource from the earth; obtain by suction, distillation etc
processing of products
make goods more marketable and change their appearance of nature
manufacturing of products
to manufacture is to fabricate, it is the act or process of making articles for use; it is the operations of making goods or wares of any kind; it is the production of articles for use from raw or prepared material by giving to these materials new forms, qualities and properties or combinations whether by hand or machinary
transporting of products
requiring transporting of products to be part of the larger and continuous chain of transportation activity
storage of products ancillary to or in conjunction with any of these above activities
storage that is not ancillary to or in conjunction with a class 05 or class 06 property
property is excluded from class 05 if one of the following apply:
-property is in class 2 or 4
-the property is used or held for the purposes of, or purposes ancillary to, the business of transportation by railway
-the property is used principally as a retail outlet for finished products to end users and not for resale in either the form in which it was purchased or any other form
-the property is used for extracting, processing, manufacturing, or storing of food, non alcoholic beverages or water
property is in class 2 or 4
if a property is designed to and built as a major industrial property MIP and no definable area is used for a class 05 purpose, the whole plant is class 04
the property is used or held for the purposes of, or purposes ancillary to, the business of transportation by railway
an intermodal facility where trucks were loaded with products from rail cars was
property is used as a retail outlet for finished products to end users and not for resale in either the form in which it was purchased or any other form
warehouse adjacent to a showroom where roofing supplies that were mainly sold at wholesale prices to construction contractors was a sales outlet of products to the purchaser for the purchasers own consumption
the property is used for extracting, processing, manufacturing or storing of food, non- alcoholic beverages or water
the storage area at a transit warehouse where food was stored was excluded from class 05 because although transporting of food, non-alcoholic beverages or water is a class 05 use, storage related to such transportation is excluded from class 05
are there other activities on the property?
are the areas definable
if there is no definable purpose for each use, do not ______ the class, instead determine the predominant use of the property and classify the entirety of the property in accordance with that predominant use
split
Where there are both sales areas and areas where Class 05 activities occur,
determine whether the storage is associated with the __________ or with the ________
qualifying activity and classify accordingly.
sales use, or class 5
Where the storage area is not at the production site, the storage may be merely a
storage warehouse (Class 06), although transit warehouses and distribution
warehouses are _________ because they are used for the transportation of the
products to their destination.
class 5
Depending on the type of warehouse, classification may be Class 05 or Class 06.
Class 05 will apply if the warehouse is ancillary to the production facility where the
product is _______________________________, then it will be Class 05 as being used
ancillary to or in conjunction with the extraction/manufacturing or processing.
Class 05 will also apply if the storage at the warehouse is part of the process of
transportation (e.g., transit warehouses or distribution warehouses), unless the product in question is food, non-alcoholic beverage or water (in which case the
storage area is Class 06 per Pepsico, supra).
Class 06 will apply if the warehouse is ancillary to a Class 06 activity such as _______
extracted/manufactured/processed
Sales
Determine if storage occurs at all. If the product is left at the property for a very
short time (i.e., less than 72 hours), then that does not constitute _______ If
storage does occur, determine if it is in conjunction with the Class 05 activity or is
related to other activities (e.g., sales).
If there are both Class 05 activities and other activities, determine if the classification of the storage area should be ______
storage, split
Transportation does not exist for every business that sends and receives goods;
rather transportation requires that such activity must be part of a larger and
__________ of transportation activity. Typically, though not always, the place
where the products are sold is________________.
continuous chain, point of destination
Transportation connotes the continuum of _____________ from their point of
origin to their point of destination, and can include the putting down and taking up
of the products en route.
movement of goods
_____________of storage may be relevant to whether the product is in the process of
being transported.
The shorter the duration of storage, the more likely the product
is still being transported; the longer the duration, the more likely that the product
is not still being transported (although the matter may not be completely free from
doubt).
What constitutes long or short duration will depend in part on the type of
product. Products with a ___________will typically be stored for a shorter term
en route to final destination than products with a longer self-life.
duration, shorter shelf life
The point of destination for a product being transported will turn on the facts;
storage along the transportation continuum is ______ (e.g., a distribution
warehouse) but once the product has reached its destination point, storage will be
________ (e.g., a warehouse ancillary to or part of a sales outlet).
Consider, however, whether the sales outlet sells to a purchaser who resells the products. If it
is, then the product has not yet reached its _____________ until it is at the storage
place for the reseller.
Use caution with terminology of retail/wholesale because it is
possible for purchasers paying a wholesale price to the be consumers of the
product.
class 5, class 6
Final destination
It is sometimes difficult to know when the act of storing is ancillary to
transportation or ancillary to sales. One indicator may be the business of the
occupier of the premises. Although classification cannot be based on who owns a
property, it is appropriate to c____________________ of the occupier
(owner or tenant) as one factor in determining the use of the property.
If the business is transportation (e.g., a shipper such as a motor carrier like a
trucking company, a courier company, an air freight carrier or a freight forwarder)then temporary storage of products is likely to be ______________________________________________________________ If the business of the occupier were a customs broker that deals mainly with transportation companies while goods are en route from another country then the temporary storage of the products at the premises of
the customs broker would also be ancillary to or in conjunction with the
transportation of the products.
consider the nature of the business,
ancillary to or in conjunction with use for transportation purposes.
It is also possible for a manufacturer, processer, or extractor to have a distribution
aspect to its business (e.g., a fleet of trucks to deliver the manufactured product).
In such cases, the manufacturer, processor or extractor is also in the business of
_____________________
A warehouse or other property used for the transportation of the product en route
to the product’s destination would be in Class 05 because of that transportation
use.
transportation of products
Approach
Determine the nature of the ______________ of the occupier of the premises and the
activities that occur.
If the business of the occupier is_____________, or a business that works primarily with
____________, and the use of the property for storage purpose is for the transportation
of the product en route to its _______________, then the property will be in Class 05.
If the business of the occupier is a manufacturer, processor, or extractor and the
property is used for the purpose of distributing the product then the property is
Class 05.
business
Shipping, shippers
destination
Processing and Manufacturing
Some activities _______________alter material and so may not constitute manufacturing
or processing.
In order to be “processing”, the activity must (1) make goods more ____________and
(2) change their __________ or nature. For instance, merely cutting carpet or
repackaging tiles and hardwood flooring is not “processing” of those products.
Stabilizing hazardous waste before it is disposed of in a landfill is not “processing of
products”. Conducting laboratory tests of biomedical specimens is not “processing
of products”.
Something that is marketable should result from the processing activity. Otherwise,
the activity is not processing “of products”. The products should be tangible,
physical property (e.g., medical test results are not a “product” for the purposes of
Class 05).
Manufacturing requires fabrication by hand or machine of a thing from raw or
prepared materials, by giving them new forms, qualities and properties. If materials
are only minimally altered by the activity (e.g., engraving, imprinting logos on a t-shirt,
photocopying, repairing or altering clothing, etc.), that does not constitute
“_______________”.
minimally
marketable
appearance
Manufacturing
Sales Outlets to Purchaser for Purchaser’s Own Consumption and
Not for Resale in Same or Any Other Form
If a property is used principally as a sales outlet of finished products to consumers
for their ___________ and not for the consumer to resell, then the property is excluded
from Class 05. In such cases, Class 06 is appropriate.
A grey area may be a business that could be considered a Class 05 activity in some
circumstances but not others. For example, a printer who prints books, pamphlets
and other printed materials at an industrial printing facility would generally be
regarded as Class 05, but a storefront photocopy business that copies and binds
reports, documents and other printed materials would be Class 06. The distinction
occurs because in the former case, the property is not primarily a ___________,
whereas in the latter case it is.
By legal policy, a sales outlet is a definable area whose primary purpose is sales.
For example, a showroom at a business that sold roofing supplies at wholesale
prices to construction contractors was “primarily a sales outlet”. The storage
ancillary to that sales outlet was excluded from Class 05 because the sales were to
the purchasers for their own consumption (i.e., consumption in their businesses).
Although the contractors charged their clients for the roofing materials, it was not
considered to be “reselling” the products in the same or any other form.
A property where raw materials are sold to a manufacturer or processor who
incorporates those raw materials into a finished product would constitute sales to a
consumer for resale in another form. _________ would apply.
own use
sales outlet
Class 05
Extracting, Processing, Manufacturing or Storage of Food, Nonalcoholic
Beverages or Water
Premises used for the manufacturing, processing or extracting of food, nonalcoholic
beverages and water are excluded from ___________
If the Class 05 activity is transportation of food, non-alcoholic beverages or water,
the _____________ portion of the property will be in Class 05 but any storage of
such products will be excluded from Class 05.
Where the food product is retained on the premises for a very short period of time_______________, the product
may not be stored so as to be excluded from Class 05.
If it is impossible to discern which part of the property is used for the storage of
food/non-alcoholic beverage/water as opposed to other types of products (e.g.,
because other products are stored on-site without any specific area delineated for
various products) then consider the ___________________ of the property and classify
accordingly.
Class 5
transportation
(less than 72 hours)
Gathering Pipeline:
“a pipeline used for the transportation of natural gas from a wellhead
to the intake valve at a scrubbing, processing or refining plant which precedes
the transfer of gas to a transmission line or a distribution line, or petroleum or a
petroleum product from a well-head to the intake valve at a refining, processing or
storage facility which precedes transfer of the petroleum or petroleum product to a
transportation line.” – B.C. Reg. 438/81
Ancillary to
Providing essential support to a central service or industry, Aiding; assisting, auxiliary, Subservient, subordinate [to] … a secondary matter or event follows a primary matter or event.
The secondary matter or event cannot come into existence until the primary matter or event exists … the ancillary
matter is something grafted on to the primary matter.
Business of transportation by railway
95 percent of the freight moving through a trans-loading facility is
transported by rail either onto or off of the site. The business is
dependent upon and relies on the railway for its success and would
likely not exist in that location but for the proximity to the railway.
The property’s use helps, serves, or supplements the business of
transportation by railway and is used for purposes ancillary to the
business of transportation by railway.
In addition, the land is owned by a railway corporation and leased for
use as a trans-loading facility to get customers for the railway, directly
aiding, serving or supplementing the business of transportation by
railway. The property is leased for use as a trans-loading facility to get
customers onto the railway. The owner holds the property for purposes
of, or for purposes ancillary to, the business of transportation by
railway.
Distribution
The dispersal of goods … among consumers brought about by
commerce.
“transporting of products” and the “distribution of products” are the
same thing.
End user
The person, customer, etc. who is the ultimate user of a product.
Extract
Remove or take out, esp. by effort or force; obtain (a natural resource)
from the earth; obtain (juice, etc) by suction, distillation, etc
Gathering Pipeline
… a pipeline used for the transportation of
(a) natural gas from a well-head to the intake valve at a scrubbing,
processing or refining plant which precedes the transfer of gas to a
transmission line or a distribution line, or
(b) petroleum or a petroleum product from a well-head to the intake
valve at a refining, processing or storage facility which precedes
transfer of the petroleum or petroleum product to a transportation line.
Held for
Land may be held for a Class 05 purpose if it is reserved for an
industrial purpose in the future. It may also be “held for” a Class 05
purpose if it the area is intended to be for future expansion of the light
industrial activity.
In conjunction
action of joining
a transportation use will be found when the property in
question is used as a part of a__________________________. … it
would [not] be accurate to characterize retail customers attendance at
the property to pick up product they had purchased to be a form of
“transportation” in any commercial sense.
When a retail customer, or even a contractor, collects flooring product from the property, they are
not participating in an ongoing chain of transportation. Once received
by the end user, the transport of the product has come to an end. It is
important … that there is no evidence that there are ________________
incurred by the appellant when the product leaves the property in
these circumstances as would have been the case for the commercial
transport trucks collecting freight from the distribution warehouses in
2725321 Canada Inc. and the Kebet Holdings decisions. In those
cases, it is clear that the chain of transportation is continuing.
larger chain of transportation, freight fees
