Canada – European Union Tariff Withdrawal Order (United Kingdom): SOR/2020-286
Canada Gazette, Part II, Volume 155, Number 1
SOR/2020-286 December 21, 2020
P.C. 2020-1131 December 20, 2020
Whereas Her Excellency the Governor General in Council considers that goods originating from the United Kingdom are not entitled to the Canada – European Union Tariff under the Canada – European Union Comprehensive Economic and Trade Agreement;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 49.91(1)(b) footnote a of the Customs Tariff footnote b , makes the annexed Canada – European Union Tariff Withdrawal Order (United Kingdom).
Canada – European Union Tariff Withdrawal Order (United Kingdom)
1 In this Order, United Kingdom includes the Channel Islands, Gibraltar and the Isle of Man, but does not include Anguilla, the British Antarctic Territory, the British Indian Ocean Territory, Bermuda, the British Virgin Islands, the Cayman Islands, the Falkland Islands, Montserrat, Pitcairn, Saint Helena and Dependencies (Ascension Island and Tristan Da Cunha), South Georgia and the South Sandwich Islands and the Turks and Caicos Islands.
Withdrawal of Benefit
2 Entitlement to the benefit of the Canada – European Union Tariff is withdrawn in respect of all goods that originate in the United Kingdom.
3 Section 2 does not apply to goods that were in transit to Canada on or before January 1, 2021.
Amendment to the Schedule to the Customs Tariff
4 The List of Countries and Applicable Tariff Treatments set out in the schedule to the Customs Tariff footnote 1 is amended by deleting, in the column “Tariff Treatment / Other”, the reference to “CEUT” opposite the references in the column “Country Name” to “Channel Islands”, “Gibraltar”, “Isle of Man” and “United Kingdom”.
Coming into Force
5 This Order comes into force on January 1, 2021.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order or the Regulations.)
On January 1, 2021, in what is commonly referred to as “Brexit,” the United Kingdom (U.K.) will leave the customs union of the European Union (EU). Since September 2017, Canada has had the Comprehensive and Economic Trade Agreement (CETA) in force with the EU and its Member States, including the U.K. As a result of Brexit, the U.K. will no longer qualify for preferential tariff treatment under CETA. Consequential amendments to certain domestic regulations are required.
To bring domestic regulations into conformity with Canada’s international trade obligations.
Description and rationale
Due to Brexit, the U.K. will no longer be a Member State of the EU and will no longer be a Party to CETA starting on January 1, 2021. Consequently, imports from the U.K. and U.K. territories will no longer be eligible for CETA preferential tariff treatment. To ensure consistency with Canadian international trade obligations, the withdrawal of CETA preferential tariffs for originating goods imported from the U.K. and U.K. territories requires two regulatory amendments:
- (1) The Canada – European Union Tariff Withdrawal Order (United Kingdom) amends the Schedule to the Customs Tariff to remove eligibility for CETA preferential tariff treatment from the U.K. and U.K. territories; and
- (2) The Regulations Amending the Regulations Defining “EU Country or other CETA beneficiary” removes the U.K. from the definition that specifies countries or territories that are considered CETA beneficiaries under Canada’s Customs Tariff.
One-for-one rule and small business lens
The one-for-one rule does not apply to these amendments, as there is no change in administrative costs or burden to business.
All importers, including small businesses, who import originating goods from the U.K. and U.K. territories that benefit from CETA will no longer be eligible for preferential tariff treatment under CETA.
The Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act received royal assent on May 16, 2017. Regulatory amendments to implement Canada’s commitments under the CETA were approved by the Governor in Council on August 31, 2017. These approvals were supported by a comprehensive consultation strategy.
Technical changes to these regulations to bring them into conformity with Canadian international trade obligations and to ensure that regulations continue to operate consistently with their policy intent did not require consultations.
Andrei Marinescu Trade Policy Analyst
International Trade Policy Division
Department of Finance Canada
90 Elgin Street