Vol. 147, No. 26 — December 18, 2013
SOR/2013-228 December 6, 2013
Order Amending the Schedule to the Customs Tariff (Extension of Most-Favoured-Nation Tariff to South Sudan)
P.C. 2013-1330 December 5, 2013
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 31 (see footnote a) of the Customs Tariff (see footnote b), makes the annexed Order Amending the Schedule to the Customs Tariff (Extension of Most-Favoured-Nation Tariff to South Sudan).
ORDER AMENDING THE SCHEDULE TO THE CUSTOMS TARIFF (EXTENSION OF MOST-FAVOURED-NATION TARIFF TO SOUTH SUDAN)
1. The List of Countries and Applicable Tariff Treatments set out in the schedule to the Customs Tariff (see footnote 1) is amended
- (a) by adding, in alphabetical order, in the column “Country Name”, a reference to “South Sudan”; and
- (b) by adding, in the column “MFN”, the symbol “X” opposite the reference to “South Sudan”.
COMING INTO FORCE
2. This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the orders.)
A referendum on self-determination of southern Sudan was held in January 2011. During this referendum, the citizens of southern Sudan voted massively in favour of independence.
On February 8, 2011, Prime Minister Harper announced Canada’s intention to recognize the Republic of South Sudan (South Sudan).
The Government of Sudan subsequently recognized the result of the referendum, and South Sudan became independent on July 9, 2011.
On December 23, 2012, South Sudan was declared a least developed country by the United Nations (UN). It is general Canadian practice to extend Least Developed Country Tariff (LDCT) treatment under the Customs Tariff to countries on the UN list of least developed countries.
The LDCT offers duty-free access on the importation into Canada of all products (with the exception of certain supply-managed agricultural goods), under the Customs Tariff. In order to be eligible for LDCT treatment, South Sudan must first be granted Most-Favoured-Nation Tariff (MFN) and General Preferential Tariff (GPT) treatments.
South Sudan already benefits from MFN, GPT, and LDCT tariff preferences as a former part of Sudan. However, now that it has been recognized as independent of Sudan and was declared a least developed country by the UN, it is necessary to officially extend these tariff treatments.
Officially extend MFN, GPT, and LDCT tariff treatments to imports from South Sudan.
The Order Amending the Schedule to the Customs Tariff (Extension of Most-Favoured-Nation Tariff to South Sudan) officially extends MFN tariff treatment to South Sudan.
The Order Amending the Schedule to the Customs Tariff (Extension of General Preferential Tariff to South Sudan) officially extends GPT tariff treatment to South Sudan.
The Order Amending the Schedule to the Customs Tariff (Extension of Least Developed Country Tariff to South Sudan) officially extends LDCT tariff treatment to South Sudan.
The “One-for-One” Rule does not apply to this proposal as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to this proposal as there are no costs imposed on small business.
These orders are necessary to officially extend MFN, GPT, and LDCT tariff treatments to imports from the Republic of South Sudan, following its recognition as an independent state in July 2011.
The extension of MFN, GPT, and LDCT treatments to South Sudan has no commercial or government revenue implications. Imports from South Sudan already benefit from these tariff preferences as they are currently classified as imports from Sudan, which is also eligible for MFN, GPT, and LDCT treatment.
Implementation, enforcement and service standards
The Canada Border Services Agency will ensure that the applicable tariff treatment is accorded to imported goods from South Sudan.
International Trade Policy Division
Department of Finance