ARCHIVED — Vol. 147, No. 7 — March 27, 2013

Registration

SOR/2013-43 March 8, 2013

CUSTOMS TARIFF

Order Amending the Schedule to the Customs Tariff, 2013-1

P.C. 2013-275 March 7, 2013

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 14 (see footnote a) of the Customs Tariff (see footnote b), makes the annexed Order Amending the Schedule to the Customs Tariff, 2013-1.

ORDER AMENDING THE SCHEDULE TO THE CUSTOMS TARIFF, 2013-1

AMENDMENTS

1. The List of Tariff Provisions set out in the schedule to the Customs Tariff (see footnote 1) is amended as set out in Part 1 of the schedule to this Order.

2. The List of Tariff Provisions set out in the schedule to the Act is amended as set out in Part 2 of the schedule to this Order.

3. The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff item set out in Part 3 of the schedule to this Order.

4. The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff items set out in Part 4 of the schedule to this Order.

COMING INTO FORCE

5. (1) Subject to subsection (2), this Order comes into force on the day on which it is registered.

(2) Sections 1 and 3 are deemed to have come into force on May 15, 2012.

SCHEDULE

PART 1
(Section 1)
AMENDMENT TO THE LIST OF TARIFF PROVISIONS

1. Tariff item No. 1701.99.90 is amended by replacing, in the column “Preferential Tariff / Final Rate”, the reference to “Free (S3)” after the abbreviation “COLT” with a reference to “Free (F)”.

PART 2
(Section 2)
AMENDMENTS TO THE LIST OF TARIFF PROVISIONS

1. Tariff item No. 8419.19.00 is amended by replacing, in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “5% (F)”.

2. Tariff item No. 9015.80.20 is amended by replacing, in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “5% (F)”.

PART 3
(Section 3)
ADDITION OF TARIFF ITEM


Tariff Item

Most-
Favoured-
Nation
Tariff

Preferential Tariff

1701.99.90

 

Effective on May 15, 2012....................

COLT: $26.74/tonne

Effective on January 1, 2013.................

COLT: $24.69/tonne

Effective on January 1, 2014.................

COLT: $22.63/tonne

Effective on January 1, 2015.................

COLT: $20.57/tonne

Effective on January 1, 2016.................

COLT: $18.52/tonne

Effective on January 1, 2017.................

COLT: $16.46/tonne

Effective on January 1, 2018.................

COLT: $14.40/tonne

Effective on January 1, 2019.................

COLT: $12.34/tonne

Effective on January 1, 2020.................

COLT: $10.29/tonne

Effective on January 1, 2021.................

COLT: $8.23/tonne

Effective on January 1, 2022.................

COLT: $6.17/tonne

Effective on January 1, 2023.................

COLT: $4.11/tonne

Effective on January 1, 2024.................

COLT: $2.06/tonne

Effective on January 1, 2025.................

COLT: Free

PART 4
(Section 4)
ADDITION OF TARIFF ITEMS

Tariff Item

Most-Favoured-Nation Tariff

Preferential Tariff

8419.19.00

Effective on the coming into force of Part 4
of the schedule to the Order Amending the Schedule
to the Customs Tariff, 2013-1..................................
5%

 

9015.80.20

Effective on the coming into force of Part 4
of the schedule to the Order Amending the Schedule
to the Customs Tariff, 2013-1..................................
5%

 

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issue

The Canada-Colombia Free Trade Agreement (CCOFTA) came into force on August 15, 2011. On May 15, 2012, the Colombia-United States Free Trade Promotion Agreement (TPA) came into force and certain Canadian products lost the advantage they had had in the Colombian market since the CCOFTA came into force. The CCOFTA anticipated the coming into force of the TPA and the Agricultural Transversal Clause (the Clause) of the CCOFTA states that both Canada and Colombia are to accelerate tariff elimination for certain agricultural products listed in Annex 203 of the CCOFTA, effective on the day of coming into force of the TPA. For Canada, this means adopting a 15-year tariff phase-out period for certain refined sugars in place of the 17-year phase-out originally established under Canada’s tariff elimination schedule in the CCOFTA. The Clause states that Colombia must also accelerate the tariff phase-out period for 27 tariff lines by two years. Colombia has already amended its tariff schedule to meet its obligations under the Clause.

At the 2011 Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit, Prime Minister Harper and other APEC leaders committed to liberalizing tariffs on environmental goods and tasked officials to develop a list in 2012. On September 9, 2012, APEC Leaders agreed that they would lower their Most-Favoured-Nation (MFN) rates of customs duty on a list of 54 environmental goods to no more than 5% by 2015. For Canada, all but two of the affected tariff items already had a MFN rate of 5% or less.

Objectives

These amendments will fulfill Canada’s obligations under the CCOFTA and Canada’s APEC commitment to reduce tariffs on a list of 54 environmental goods.

Description

The Order amends the Schedule to the Customs Tariff to accelerate the tariff phase-out period of the Colombia Tariff (COLT) rate on certain refined sugars (tariff item 1701.99.90). This change is effective May 15, 2012, which is the date the Clause was triggered by virtue of the entry into force of the TPA.

The Order also amends the Schedule to the Customs Tariff to reduce the MFN rate on tariff items covering solar water heaters and certain measuring instruments (tariff items 8419.19.00 and 9015.80.20) from 6.5% to 5% effective on the day of coming into force of the Order.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this Order as there is no change in administrative costs to business.

Small business lens

The small business lens does not apply to this Order as there are no costs imposed on small business.

Consultation

There were no consultations on changes related to the CCOFTA as they are necessary to fulfill Canada’s obligations under that agreement. With respect to the amendments related to the implementation of Canada’s APEC commitment, the APEC list of 54 environmental goods is based on broader lists of environmental goods developed by Canada for use in other international trade fora, particularly at the World Trade Organization. The Government consulted extensively over the years in developing those broader lists.

Rationale

An order pursuant to section 14 of the Customs Tariff is the most appropriate and timely method to make these changes in order that Canada respect its international obligations.

The amendment with respect to certain refined sugar imports from Colombia under the COLT treatment will result in this tariff item being duty-free two years earlier. As a result of the revised tariff phase-out period, the COLT rate that was in place from May 15, 2012, until the coming into force of this Order will be lowered and tariffs will be completely eliminated by the year 2025 instead of 2027. There will be a minimal duty savings for importers (less than $5,000) from May 15, 2012, until the coming into force of this Order but the main benefit is an earlier tariff elimination for the goods in question. These duties foregone by the Government have already been accounted for in the overall duties foregone related to the CCOFTA and therefore do not increase the total foregone revenues by the Government.

With respect to the amendments necessary to fulfill the APEC Leaders commitment, lowering the duty by 1.5 percentage points on two tariff items will result in duty savings to importers of an estimated $76,000 per year. These represent equivalent annual foregone revenues by the Government. By implementing its APEC commitment nearly two years ahead of schedule, Canada continues to show global trade liberalization leadership.

Implementation, enforcement and service standards

The Canada Border Services Agency is responsible for the administration of and compliance with customs and tariff legislation and regulations. In the course of its administration of these tariff amendments, the Agency will inform the importing community.

Contact

Diane Kelloway
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: 613-996-6470