Order Amending the Settlers’ Effects Acquired with Blocked Currencies Remission Order: SI/2019-35

Canada Gazette, Part II, Volume 153, Number 12

Registration

SI/2019-35 June 12, 2019

FINANCIAL ADMINISTRATION ACT

P.C. 2019-718 June 3, 2019

Her Excellency the Governor General in Council, considering that it is in the public interest to do so, on the recommendation of the Minister of Public Safety and Emergency Preparedness, pursuant to subsection 23(2) footnote a of the Financial Administration Act footnote b, makes the annexed Order Amending the Settlers’ Effects Acquired with Blocked Currencies Remission Order.

Order Amending the Settlers’ Effects Acquired with Blocked Currencies Remission Order

Amendment

1 Paragraph (c) of the definition settler in section 2 of the Settlers’ Effects Acquired with Blocked Currencies Remission Order footnote 1 is replaced by the following:

Coming into Force

2 This Order comes into force on the day on which the Preclearance Act, 2016, chapter 27 of the Statutes of Canada, 2017, comes into force, but if it is registered after that day, it comes into force on the day on which it is registered.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

Pursuant to subsection 23(2) of the Financial Administration Act, this amending Order updates a reference in the Settlers’ Effects Acquired with Blocked Currencies Remission Order (the Order).

Objective

To update the Order and ensure its reference to the Agreement on Air Transport Preclearance between the Government of Canada and the Government of the United States of America (Air Agreement) is replaced with reference to the Agreement on Land, Rail, Marine and Air Transport Preclearance between the Government of Canada and the Government of the United States of America (the LRMA).

Background

Generally, goods imported to Canada are subject to duties or taxes applied under various federal statutes such as the Customs Act and Excise Tax Act. Through the Order, goods that have been purchased using blocked currencies and that are brought to Canada when foreign nationals immigrate to Canada are not subject to duties or taxes (i.e. is remitted at source) under certain conditions.

For the Order to apply, an individual must demonstrate that the country from which they are immigrating to Canada from applies restrictions on the transfer of capital and that, due to such restrictions, the currency they have on deposit in that country cannot be transferred to Canada (i.e. blocked currency). Because the currencies are blocked from leaving these countries, goods of an equivalent value may be purchased instead, and then the goods are brought to Canada.

If these circumstances exist, the Order remits any duties and taxes that may apply upon importation of eligible goods. Eligible goods are those imported for personal use from the country from which the settler is emigrating and purchased with currency on deposit in that country at the time of immigration to Canada. As such, the original Order facilitates the transfer of value (in the form of goods) to Canada that cannot be transferred in the form of currency and to treat this transfer, in practice, as if it was a transfer of currency.

Since U.S. preclearance officers are not considered to be settling in Canada, they are explicitly excluded from the original Order’s application. The same exclusion also applies to those entering Canada for employment of less than 36 months or to study at an educational institution.

Canada and the United States signed a new preclearance agreement, the LRMA, on March 16, 2015. When it comes into force, the new agreement will supersede the Air Agreement. Accordingly, reference to the Air Agreement in the Order requires updating.

Implications

This Order only updates reference to the Air Agreement with reference to the LRMA; it does not change the application or the terms and conditions of the original Order.

Consultations

Given the administrative nature of this change, no consultations were undertaken.

Departmental contact

Mark Potter
Director General
Strategic Policy, Research, Planning and International Affairs
Public Safety Canada
Telephone: 613‑998‑2936