Order Amending the Import Control List: SOR/2020-69

Canada Gazette, Part II, Volume 154, Number 9

Registration

SOR/2020-69 April 7, 2020

EXPORT AND IMPORT PERMITS ACT

P.C. 2020-223 April 3, 2020

Whereas the Governor in Council deems it necessary to control the importation of certain goods to implement an intergovernmental arrangement or commitment;

And whereas the Governor in Council is satisfied that, for the purposes of implementing the Agreement between Canada, the United States of America and the United Mexican States (CUSMA), it is advisable to collect information with respect to the importation of any goods listed in Section C of Annex 6-A of Chapter 6 of CUSMA;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to paragraph 5(1)(e), subsection 5.2(2) footnote a and section 6 footnote b of the Export and Import Permits Act footnote c, makes the annexed Order Amending the Import Control List.

Order Amending the Import Control List

Amendments

1 Paragraph 85(1)(c) of the Import Control List footnote 1 is replaced by the following:

2 (1) Paragraph 86.1(1)(c) of the List is replaced by the following:

(2) Section 86.1 of the List is amended by adding the following after subsection (1):

(1.1) Metallized yarn that is classified under subheading 5605.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff that

3 (1) Paragraph 86.2(1)(a) of the List is replaced by the following:

(2) Paragraph 86.2(1)(c) of the List is replaced by the following:

4 (1) Paragraph 86.3(1)(a) of the List is replaced by the following:

(2) Paragraph 86.3(1)(c) of the List is replaced by the following:

5 Sections 114 to 116 of the List are replaced by the following:

114 Carcasses and half-carcasses of bovine animals, fresh, chilled or frozen, that do not originate in Chile, a CUSMA country or an EU country or other CETA beneficiary and are classified under tariff item No. 0201.10.10, 0201.10.20, 0202.10.10 or 0202.10.20 in the List of Tariff Provisions set out in the schedule to the Customs Tariff.

115 Cuts of meat of bovine animals, fresh, chilled or frozen, with bone in, that do not originate in Chile, a CUSMA country or an EU country or other CETA beneficiary and are classified under tariff item No. 0201.20.10, 0201.20.20, 0202.20.10 or 0202.20.20 in the List of Tariff Provisions set out in the schedule to the Customs Tariff.

116 Boneless meat of bovine animals, fresh, chilled or frozen, that does not originate in Chile, a CUSMA country or an EU country or other CETA beneficiary and is classified under tariff item No. 0201.30.10, 0201.30.20, 0202.30.10 or 0202.30.20 in the List of Tariff Provisions set out in the schedule to the Customs Tariff.

6 Sections 125.2 of the List is replaced by the following:

125.2 Milk protein substances with a milk protein content of 85% or more by weight, calculated on a dry matter basis, that do not originate in a CUSMA country, an EU country or other CETA beneficiary, Chile, Costa Rica or Israel and that are the subject of two commitments signed by the Government of Canada on June 12, 2008, one with the European Communities and the other with the Government of Switzerland, relating to the modification, in Canada’s schedule of concessions pursuant to the Agreement Establishing the World Trade Organization, to Canada’s concession on tariff item No. 3504.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff with regard to those substances.

Coming into Force

7 This Order comes into force on the day on which section 40 of the Canada–United States–Mexico Agreement Implementation Act, chapter 1 of the Statutes of Canada, 2020, comes into force, but if it is registered after that day, it comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the orders nor the regulations.)

Issues

On September 30, 2018, Canada, the United States (U.S.) and Mexico announced the completion of negotiations toward a revised North American Free Trade Agreement (NAFTA). Following more than a year of negotiations, the three countries reached important outcomes in key areas, including market access, rules of origin for automotive manufacturing, agriculture, labour, environment, intellectual property rights, culture, and dispute settlement. This outcome is expected to strengthen the trilateral commercial relationship and provide much-needed stability and predictability for Canadian businesses and workers.

The Canada-United States-Mexico Agreement (CUSMA), signed by all Parties at Buenos Aires, on November 30, 2018, was signed in amended form, through the Protocol of Amendment to the Agreement between Canada, the United States of America and the United Mexican States, at Mexico City on December 10, 2019. An Act to implement the Agreement between Canada, the United States of America and the United Mexican States (the Act) obtained royal assent on March 13, 2020. Among other changes, the Act amended the Export and Import Permits Act to implement elements of CUSMA related to trade controls. Consequential regulatory measures and amendments are also needed to support full implementation of these commitments.

Background

A good listed on the Import Control List or Export Control List may normally only be lawfully imported or exported under the authority of a permit or certificate issued by the Minister of Foreign Affairs (the Minister). Certain textile goods may be imported or exported without a permit or certificate issued by the Minister, but such imports and exports will not qualify for preferential tariff treatment.

The purposes for which the Governor in Council may add goods to a control list are specified in the Export and Import Permits Act and include implementing an intergovernmental arrangement or commitment, such as a trade agreement. Goods may also be added to the Export Control List for the purpose of ensuring the orderly export marketing when the goods are subject to a limitation by another country, and eligible for a benefit when imported into that country under that limitation.

Export thresholds

In CUSMA, Canada agreed to introduce an “export thresholds” regime for global exports of (1) skim milk powders and milk protein concentrates; and (2) retail-ready infant formula containing 10% of cow’s milk (hereafter “the covered dairy products”). Under CUSMA, Canada shall monitor global exports of these products, and once annual quantities are exceeded, it shall apply the applicable “export charge.”

Tariff preference levels for textile and apparel goods

Under NAFTA’s tariff preference level commitments, textile and apparel products from NAFTA countries that would not normally be eligible for preferential market access under the NAFTA rules of origin are nevertheless allowed to qualify for preferential tariffs upon importation, up to the annual limits specified in the NAFTA. To ensure Canada did not provide greater market access than allowed, Canada added tariff preference level-eligible goods to the Import Control List so that the annual limitations could be monitored and enforced. In CUSMA, the tariff preference level provisions are broadly similar, except for the addition of new goods (i.e. metallized yarn, and curtains and blinds, for import from the U.S.) and adjustments to the annual limitations.

Under NAFTA, Canada administered Canadian exporters’ access to the tariff preference level quotas for textile and apparel goods administered by the United States and Mexico by way of a Certificate of Eligibility issued under the Issuance of Certificates Regulations. Information requirements for access to these certificates were contained in a policy. Pursuant to CUSMA obligations, information requirements for certificates of eligibility will remain the same, but are being formalized in regulations.

While, under CUSMA, tariff preference level limits for cotton or man-made fibre apparel goods imported from the U.S. are increased, export tariff preference level limits for textiles to the U.S. remain the same, and tariff preference level limits for apparel goods are reduced.

Agricultural goods subject to Canadian tariff rate quotas

Under NAFTA, Canada provides quota-free, duty-free access to imports of beef and veal originating from either the U.S. or Mexico. In 2008, Canada agreed to exclude NAFTA countries from its new trade control on milk protein substances that was created by way of a World Trade Organization process. In CUSMA, Canada maintains the exclusions for NAFTA countries from Canadian trade controls on imports of beef and veal, and milk protein substances.

Sugar and sugar-containing products subject to U.S. tariff rate quotas

Under CUSMA, Canada secured two new tariff rate quotas for exports of sugar-containing products and sugar to the U.S. The addition of these goods to the Export Control List makes export permits a requirement in order for these goods to benefit from preferential tariffs upon entry into the U.S., effective upon entry into force of CUSMA.

In accordance with its commitments under the World Trade Organization, in 1995, the United States established tariff rate quotas for imports of sugar and sugar-containing products. Separate from the two new tariff rate quotas, these World Trade Organization commitments are incorporated into CUSMA. Goods that fall under these World Trade Organization commitments are currently found under items 5203 and 5204 of the Export Control List. Item 5203 requires amendments to align with 2017 modifications to the Harmonized Tariff Schedule of the U.S., further to amendments made by the World Customs Organization.

Peanut butter

Canada previously negotiated a Canada-specific reserve within the U.S. import tariff rate quota for peanut butter and added peanut butter to the Export Control List for the purposes of ensuring the orderly export marketing of peanut butter, which is subject to a limitation by the U.S. and eligible for a benefit when imported into the U.S. within that limitation. This addition of item 5201 to the Export Control List enables Canada to administer Canadian exporters’ access to this reserve. Item 5201 was originally created as a global control, requiring exporters to obtain permits even when exporting to non-U.S. destinations. In lieu of acquiring a shipment-specific permit, exporters of peanut butter to all countries other than the U.S. were required to declare their use of General Export Permit No. Ex. 31 - Peanut Butter in order to lawfully export this product. In CUSMA, Canada has gained better market access for Canadian peanut butter through reduced duties on exports to the U.S.

Objective

The objective of this initiative is to ensure that Canada complies with its international commitments and supports the implementation of CUSMA.

Description

Export thresholds

To implement the “export thresholds” commitment under CUSMA, a series of existing regulations relating to export controls must be amended and new regulations must be introduced. This includes

The Regulations also establish two formulas for calculating the value of the charge. One calculates the charge in the case the export access quantity set by the Minister has already been exceeded by past shipments or by the Minister’s allocation, in which case the full quantity in the shipment is subject to the charge. The other calculates the charge in the case the current shipment causes the export access quantity to be exceeded, in which case only the quantity of product causing the access quantity to be exceeded is subject to the charge. The Regulations also include an annex listing the products covered by the Regulations and the value of the charge applicable to each product.

Tariff preference levels

To implement the tariff preference levels commitments under CUSMA, two existing regulations relating to import and export controls are amended.

1. The Import Control List has been amended to

2. The Issuance of Certificates Regulations has been amended to

Agricultural goods subject to Canadian tariff rate quotas

The Import Control List is amended to replace all NAFTA references with CUSMA to maintain the exclusions for CUSMA countries from Canadian trade controls on imports of beef and veal, and milk protein substances.

Sugar and sugar-containing products subject to U.S. tariff rate quotas

The Export Control List has been amended to

Peanut butter

The Export Control List has been amended to limit the geographical scope of peanut butter exports subject to export control such that a permit will only be required for exports to the U.S.

Regulatory development

Consultation

The Government of Canada consulted regularly through the CUSMA negotiations with provincial and territorial governments and stakeholder groups. As the above-mentioned regulatory amendments are consequential to CUSMA, further consultation and prepublication were not necessary.

Modern treaty obligations and Indigenous engagement and consultation

Pursuant to the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, Global Affairs Canada conducted an assessment of modern treaty implications for CUSMA as a whole, including the export charge on the covered dairy products. No potential modern treaty impacts were identified. CUSMA contains provisions that preserve and confirm the ability of the Government of Canada to adopt or maintain measures it deems necessary to fulfill its legal obligations to Indigenous peoples, as well as policy flexibility necessary for the Government to provide preferential treatment to Indigenous peoples in various areas. CUSMA includes a general exception that clearly confirms that the Government can adopt or maintain measures it deems necessary to fulfill its legal obligations to Indigenous peoples.

As the regulatory amendments cited above are consequential to CUSMA, no additional modern treaty assessment was undertaken.

Instrument choice

Canada’s long-standing practice has been to implement trade commitments related to trade controls under the authority of the Export and Import Permits Act and its associated regulations. Continuing this approach for the CUSMA trade control commitments is the most efficient and effective approach for their implementation.

Regulatory analysis

Benefits and costs

These regulatory amendments implement CUSMA commitments and ensure that Canada is consistent with its international trade obligations. Most amendments support the continuation of Canada’s existing regulatory framework under the Export and Import Permits Act by replacing references to NAFTA with CUSMA, or by including information requirements for certificates of eligibility to access tariff preference levels into regulations. Other amendments have a substantive cost impact as described below.

Export thresholds

The dairy export thresholds established through these amendments represent a new mandate for Global Affairs Canada and will require new structures to administer and monitor exports, and to collect the export charges. Implementation of the thresholds will increase Global Affairs Canada’s workload. Additional human resource costs are estimated to be $52,500 on an annual basis. Global Affairs Canada will also need to add this new trade control to its new export control system, which has yet to be launched, at an upfront cost of $130,000. If CUSMA is implemented prior to the launch of the new export control system, the dairy export threshold will also need to be implemented through the addition of a new trade control to the current system at an upfront cost of approximately $50,000.

Global Affairs Canada anticipates that administering the new permit requests for exports of the relevant dairy products will be minimal and expects to manage any minor increase using existing resources.

Prior to these amendments, any dairy processors or exporters in Canada wanting to export any of the covered dairy products could do so without having to apply for a permit. Since these organizations and exporters will now have to apply for export permits, these amendments impose incremental costs on businesses. The costs associated with applying for and obtaining permits are of an administrative nature. Industry will also incur costs associated with the uncertainty resulting from the permit application and approval process since stakeholders will need to wait for Global Affairs Canada to process the permit application before producing and/or exporting products. However, nearly all permit applications are handled electronically through the export control system and are issued automatically.

Under the Export and Import Permits and Certificates Fees Order, applicants for certain export permits are required to pay $14 for an export permit. The Minister of Foreign Affairs has amended the Export and Import Permits and Certificates Fees Order to waive the fee for the export permits for the covered dairy products. This amendment is discussed in a separate regulatory impact analysis statement pertaining to amendments to ministerial regulations to implement CUSMA.

In 2018, Canadian exporters exported 73 376 tonnes of the relevant dairy products. Assuming each shipment was a full shipment containing 20 tonnes, it is estimated that processors exported 3 669 shipments in total annually. In practice, many businesses that export use the services of a customs broker. Notwithstanding the exemption from normal government service fees, Global Affairs Canada estimates the imposition of the export controls on these products will impose a maximum cost of $550,350 annually for exporters exporting the covered dairy products.

Tariff preferences levels

Importers will incur minimal costs in relation to the addition of metallized yarn, and curtains and blinds from the U.S. to the Import Control List. Exporters will also incur minimal costs in relation to the addition of metallized yarn to the U.S. under the Issuance of Certificates Regulations. Costs associated with trade controls under the tariff preference level provisions are limited to the cost of obtaining an import permit ($10–31) or certificate of eligibility ($9–14), as well as any associated custom broker fees. Prior to these amendments, importers and exporters of these goods could import and export without applying for a permit, although applicable import and export tariffs applied. Under CUSMA these goods will now be eligible for preferential tariff treatment but businesses will need to apply for an import permit or certificate of eligibility in order to benefit from the duty savings, imposing an incremental cost to businesses. However, the resulting duty savings considerably outweigh permit costs for these goods. The costs associated with applying for and obtaining permits are of an administrative nature.

For metallized yarn, the number of annual shipments from Canada to the U.S. for the 2015–2017 period is unknown, but could in fact be less than 10, resulting in no more than 10 new permits at a cost of $9–14 per permit or a total cost of $90–140. Permit costs for metallized yarn would likely be outweighed by the resulting duty savings. The average annual tariffs for metallized yarn exports can be estimated at $22,000.

For curtains and blinds, the number of annual shipments into Canada from the U.S. is unknown, but could in fact be less than 10, resulting in no more than 10 new permits at a cost of $100–310. Permit costs for curtains and blinds are considerably outweighed by the resulting duty savings. The annual import tariffs for curtains and blinds from the U.S. can be estimated at $1.9 million.

Sugar and sugar-containing products subject to U.S. tariff rate quotas

Regarding the addition of sugar and sugar-containing products to the Export Control List for the new CUSMA tariff rate quotas, there are minimal costs for Canadian industry stakeholders. Costs associated with trade controls for these goods are limited to the cost of obtaining an export permit, which is $14 per permit if processed directly by Global Affairs Canada. A lesser amount of $9 per permit applies if an exporter chooses to work with a broker. In such cases, additional custom broker fees may apply. Specifically, exporters wanting to take advantage of the tariff rate quota provisions will need to obtain a shipment-specific permit in order to export their goods and obtain the preferential tariff rate upon entry. The permits will be used by Canada to track the quantity of goods exported, and to provide exporters with predictability with respect to their exports. Further, following notification of Canada’s intent to require export permits for exports of these goods under these tariff rate quotas, the U.S. will only apply the preferential tariff rate to goods accompanied by a Government of Canada–issued permit. It is estimated that, based on the number of permits issued in 2018–2019 for sugar and sugar-containing products, approximately 570 permits may be issued annually for the new tariff rate quotas under CUSMA.

While the total cost for obtaining permits to export these goods is unknown, a comparative calculation based on the 2018–2019 sugar-containing products and sugar export tariff rate quotas to the U.S. under the World Trade Organization obligations indicates that the total estimated permitting cost for stakeholders, for both new CUSMA sugar-containing products and sugar export tariff rate quotas, is $7,940. These additional costs will only be applicable to exporters utilizing the new CUSMA tariff rate quotas.

Regarding the Export Control List updates as a result of the World Customs Organization amendments, there are no costs associated since these involve only classification updates to the Harmonized System.

Stakeholders have requested export controls for these tariff rate quotas in order to provide orderly export marketing of these goods. The two new tariff rate quotas under CUSMA are similar to ones previously established by the U.S. under the World Trade Organization obligations. The use of export permits for these goods has been the practice under the World Trade Organization obligations and stakeholders have expressed strong interest in continuing this practice.

Peanut butter

The amendment to the Export Control List to limit the geographical scope of peanut butter exports subject to export control to the U.S. creates no practical impact. In the past, General Export Permit No. Ex. 31 - Peanut Butter minimized the administrative burden for exporters of peanut butter to destinations other than the U.S. General Export Permit No. Ex. 31 - Peanut Butter has been repealed, consequential to this amendment, the impacts of which are discussed in a separate regulatory impact analysis statement.

Small business lens

Export thresholds

In 2015, the most recent year for which data is available, 15 small- and medium-sized enterprises in Canada produced the dairy products covered by these amendments. It is unclear whether these companies exported the covered dairy products, so the number of small businesses impacted by these amendments could be less. As a result, the impacts of the amendments on small businesses will not be substantial or disproportionate.

As discussed above, the Minister of Foreign Affairs will waive fees associated with the export permits introduced in these amendments, including for small businesses, which will mitigate the cost impacts.

As these amendments are consequential to a binding international agreement, flexible approaches to limit the impact on small businesses could not be considered.

The table below presents the costs these amendments will create for small businesses. These amendments will require the number of small businesses producing the covered dairy products (15 in 2015) to obtain a permit for every shipment exported. It is expected that each business will apply for 183 permits per year, with the cost of applying for a permit through a broker estimated at $137 (in 2012 Canadian dollars). Therefore, the annual cost these amendments impose on small businesses is expected to be $25,803 per business and $376,242 for all small businesses.

Small Business Lens Summary

Number of small businesses impacted

15

Number of years

10 years

Base year for costing

2012

Compliance
costs

Annualized Value

Present Value

TOTAL

$0

$0

Administrative costs

Annualized Value

Present Value

Apply for permit

$376,242

$2,642,563

TOTAL

$376,242

$2,642,563

TOTAL COST (all impacted small businesses)

$376,242

$2,642,563

Cost per impacted small business

$25,803

$176,171
Tariff preference levels

Importers and exporters of goods under the new tariff preference level provisions are the only ones who will see an increased cost, with the new requirement to obtain an import permit or export certificate of eligibility in order to be eligible for preferential tariff treatment. Businesses wanting to take advantage of the preferential access under the CUSMA tariff preference level provisions to reduce the cost of customs duties, may do so with a minimal fee to receive an import permit ($10–31) or export certificate of eligibility ($9–14) and any fees associated with using a broker, if they choose to work with a customs broker.

Sugar and sugar-containing products subject to U.S. tariff rate quotas

There are minimal increased costs or impacts on small businesses in relation to the Export Control List amendments necessary to add sugar and sugar-containing products. Businesses wanting to export under the new CUSMA tariff rate quotas would incur a minimal fee to obtain an export permit (i.e. $14 if issued by Global Affairs Canada or $9, plus any associated customs brokers’ fees, if they chose to work with a broker). Permit costs are considerably outweighed by the duty savings, which can be as much as thousands of dollars.

One-for-one rule

Order Amending the Import Control List

The one-for-one rule is triggered as there are minimal administrative burden costs to businesses as a result of the amendments to the Import Control List. The amendments add permit requirements for the import of goods added to the list (i.e. metallized yarn and curtains and blinds imported from the U.S.) for businesses seeking eligibility for preferential tariff treatment under the CUSMA provisions. However, because the amendments are required to meet Canada’s international obligations under CUSMA, they are exempted from the requirement to offset administrative burden.

Order Amending the Export Control List

For the covered dairy products, and sugar and sugar-containing products, the one-for-one rule is triggered by the amendments to the Export Control List as these increase the administrative burden on businesses. The amendments add permit requirements for the export of goods added to the Export Control List. However, because the amendments are required to meet Canada’s international obligations under CUSMA, these are exempted from the requirement to offset administrative burden.

Regulations Amending Certain Regulations Made Under the Export and Import Permits Act

Amendments to the Issuance of Certificates Regulations

The one-for-one rule is triggered as there are minimal administrative burden costs to businesses as a result of the amendments to the Issuance of Certificates Regulations. The amendments add certificate of eligibility requirements for the export of goods (i.e. metallized yarn destined to the U.S.) for businesses seeking eligibility for preferential tariff treatment under the CUSMA provisions. However, because the amendments are required to meet Canada’s international obligations under CUSMA, they are exempted from the requirement to offset administrative burden.

Amendments to the Export Permits Regulations

The one-for-one rule is not triggered by the amendments to these Regulations as they neither increase nor decrease administrative burden. The amendments to these Regulations exclude the covered dairy products from its scope, thus creating no change to administrative burden for exporters.

Permits for the covered dairy products will be regulated under the Export Permits Regulations (Non-Strategic Products) instead of the Export Permit Regulations. The former impose more appropriate information requirements on exporters applying for permits to export the covered dairy products.

Amendments to the Export Permits Regulations (non-strategic)

The one-for-one rule is triggered by this amendment. This amendment adds the covered dairy products to the scope of these Regulations, imposing information requirements on exporters seeking a permit to export these products. However, because the amendments are required to meet Canada’s international obligations under CUSMA, these are exempted from the requirement to offset administrative burden.

Amendments to the Export Allocations Regulations

The one-for-one rule is triggered by this amendment. This amendment adds the covered dairy products to the scope of these Regulations, imposing information requirements on exporters seeking an export allocation quantity for these products (should the Minister choose to issue an allocation for export of these products). However, because the amendments are required to meet Canada’s international obligations under CUSMA, these are exempted from the requirement to offset administrative burden.

Export Charges for Certain Dairy Products Regulations

The one-for-one rule is not triggered by these new Regulations as they neither increase nor decrease administrative burden on businesses. These new Regulations provide formulas for determining the value of the export charge on the covered dairy products and when it applies, but the charge itself will be imposed by ministerial policy. While these Regulations add a new regulatory title, in practice the new title does not impose additional administrative burden on exporters.

Regulatory cooperation and alignment

While these amendments implement a non-discretionary obligation that Canada agreed to in a binding international agreement, these are not related to a work plan or commitment under a formal regulatory cooperation forum.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment for these regulatory amendments is not required as these are unlikely to result in important environmental effects.

Gender-based analysis plus

A gender-based analysis plus (GBA+) assessment was not conducted specifically for these amendments given that these are consequential to CUSMA. A GBA+ assessment for CUSMA anticipated a net positive impact on the gender, Indigenous and small and medium enterprise sub-populations identified as being impacted by the Agreement.

Implementation, compliance and enforcement, and service standards

Implementation

Similar to the World Trade Organization tariff rate quotas for sugar and sugar-containing products, the addition of the goods under the new CUSMA tariff rate quotas to the Export Control List would make export permits a requirement in order for these goods to be exported to the U.S. and benefit from preferential tariffs upon entry into the U.S. In order to ensure orderly export marketing of these goods, which are subject to the U.S. limitation under CUSMA, Global Affairs Canada is planning to undertake consultations with stakeholders, prior to the entry into force of CUSMA, regarding possible allocation policies. Global Affairs Canada will present administrative policy options to the Minister for decision.

Global Affairs Canada’s Trade and Export Controls Bureau is responsible for issuing permits and will lead on the implementation of these amendments. Information concerning any changes arising from these amendments will be made publicly available to both importers and exporters via publication on the Global Affairs Canada website prior to CUSMA’s entry into force. Information related to imports will also be included in a Canada Border Services Agency (CBSA) D-memorandum, which will be made available on the CBSA website, with a link to the Global Affairs Canada website.

Compliance and enforcement

The Trade and Export Controls Bureau will promote compliance with these regulatory amendments and the permit requirements through its regular mechanisms. Alleged violations may be brought to the attention of Global Affairs Canada directly (e.g. a Canadian exporter or importer brings a suspected violation to the attention of Global Affairs Canada) or indirectly, as the result of an inspection and/or audit. Global Affairs Canada maintains a team of inspectors who, for any purpose related to the administration or enforcement of the Export and Import Permits Act, may inspect, audit or examine the records of any person who has applied for an authorization under that Act. Global Affairs Canada has verification teams deployed to four major metropolitan areas to support the administration of import and export permits related to trade commodities: Ottawa, Montréal, Toronto and Vancouver. Between 100 and 140 verification exercises are conducted annually.

Non-compliance with any of these amendments could lead to prosecution under the Export and Import Permits Act. The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of import and export controls.

Service standards

Global Affairs Canada’s Trade and Export Controls Bureau maintains general performance standards and specific service standards for permits for non-strategic goods (e.g. all goods covered by these amendments). The Bureau’s current service standards require that

The Bureau’s complete service standards can be found at the following link: https://www.international.gc.ca/controls-controles/about-a_propos/service.aspx?lang=eng.

Contacts

Export thresholds and agricultural goods subject to tariff rate quotas

Blair Hynes
Deputy Director
Supply-Managed Trade Controls Division
Global Affairs Canada
111 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343‑203‑4353
Fax: 343‑996‑0612
Email: Blair.Hynes@international.gc.ca

Tariff preference levels, sugar and sugar-containing products, and peanut butter

Elizabeth Clarke
Deputy Director
Non-Supply Managed Trade Controls Division
Global Affairs Canada
111 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343‑203‑4366
Fax: 343‑996‑0612
Email: Elizabeth.Clarke@international.gc.ca