Canada Gazette, Part I, Volume 148, Number 45: Order Amending the Schedule to the Customs Tariff (Extension of General Preferential Tariff to Burma)

November 8, 2014

Statutory authority

Customs Tariff

Sponsoring department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the orders.)

Issues

Canada extends unilateral preferential tariff rates to imports from developing and least developed countries through two tariff treatments:

• the General Preferential Tariff (GPT) offers tariff rates that are lower than Most-Favoured-Nation (MFN) Tariff rates to goods imported from developing countries identified in the Schedule to the Customs Tariff; and
• the Least Developed Country Tariff (LDCT) offers duty-free access on the importation into Canada of all products (with the exception of supply-managed agricultural goods) from least developed countries, as identified by the United Nations and listed in the Schedule to the Customs Tariff.

Burma's eligibility for the GPT and the LDCT was removed in 1997 as part of a global concerted response to the human rights situation in that country (see SOR/97-398). In recent years, there have been positive developments in Burma, notably elections in 2010 that led to a transition to civilian rule, the release of political prisoners, economic reforms, and the introduction of new laws to protect freedom of association and assembly.

In light of these positive developments, countries are gradually easing sanctions and normalizing trade relations with Burma. In that regard, Canada has already taken a number of actions towards normalizing relations with Burma. On April 24, 2012, Canada eased economic sanctions taken against Burma. Canada has also opened an embassy in Yangon and appointed its first-ever resident ambassador to Burma. Reinstating GPT and LDCT eligibility for Burma would be consistent with these actions.

Objectives

• Extend entitlement to the GPT and LDCT tariff treatments to imports originating from Burma.

Description

The Order Amending the Schedule to the Customs Tariff (Extension of General Preferential Tariff to Burma) would extend entitlement to the GPT treatment to imports originating from Burma.

The Order Amending the Schedule to the Customs Tariff (Extension of Least Developed Country Tariff to Burma) would extend entitlement to the LDCT treatment to imports originating from Burma.

“One-for-One” Rule

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 business.

Rationale

The reinstatement by Canada of GPT and LDCT entitlement for Burma would help support the continued progress towards reform in that country. The European Union reintegrated Burma into its preferential tariff regime, the Generalised System of Preferences, last year.

Based on current trading patterns, it is estimated that annual customs duties foregone by the federal government from providing Burma with GPT and LDCT eligibility would be approximately $240,000.

Implementation, enforcement and service standards

The Canada Border Services Agency would administer these changes as part of its responsibility for the administration of, and compliance with, customs and tariff legislation and regulations.

Contact

Karen LaHay
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: 613-369-4043

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to paragraph 34(1)(a) (see footnote a) of the Customs Tariff (see footnote b), proposes to make the annexed Order Amending the Schedule to the Customs Tariff (Extension of General Preferential Tariff to Burma).

Interested persons may make representations concerning the proposed Order within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Karen LaHay, International Trade Policy Division, Department of Finance, 90 Elgin Street, Ottawa, Ontario K1A 0G5 (email: Tariff-Tarif@fin.gc.ca).

Ottawa, October 30, 2014

JURICA ČAPKUN
Assistant Clerk of the Privy Council

ORDER AMENDING THE SCHEDULE TO THE CUSTOMS TARIFF (EXTENSION OF GENERAL PREFERENTIAL TARIFF TO BURMA)

AMENDMENT

1. The List of Countries and Applicable Tariff Treatments set out in the schedule to the Customs Tariff (see footnote 1) is amended by adding, in the column “GPT”, the symbol “X” opposite the reference to “Burma” in the column “Country Name”.

COMING INTO FORCE

2. This Order comes into force on the day on which it is registered.

[45-1-o]