Denial or Withdrawal of Benefit of Preferential Tariff Treatment under NAFTA, CCFTA, CCRFTA, CPFTA or CCOFTA

Definition of “identical goods”

• 42.4 (1) In this section, “identical goods” has the meaning assigned to that expression by Article 514 of NAFTA, Article E-14 of CCFTA, Article V.14 of CCRFTA, Article 423 of CPFTA or Article 423 of CCOFTA, as the case may be.

• Marginal note:Denial or withdrawal of benefit — NAFTA country, Chile, Costa Rica, Peru or Colombia

  (2) Notwithstanding section 24 of the Customs Tariff, the Minister may, subject to the prescribed conditions, deny or withdraw preferential tariff treatment under NAFTA, CCFTA, CCRFTA, CPFTA or CCOFTA in respect of goods for which that treatment is claimed if the exporter or producer of the goods has made false representations that identical goods exported or produced by that exporter or producer and for which that treatment was claimed were eligible for that treatment.

• (b) in the case of goods  exported  from  a NAFTA country, from Chile, from Costa Rica, from an EFTA state, from Peru or from Colombia, any matter, other than those referred to in paragraphs (a) and (c), concerning those goods that is set out in paragraph 1 of Article 509 of NAFTA, in paragraph 1 of Article E-09 of CCFTA, in paragraph 1 of Article V.9 or paragraph  10 of  Article  IX.2  of CCRFTA, in Article 28(2) of Annex C of CEFTA, in paragraph 1 of  Article  419  of CPFTA or in paragraph 1 of Article 419 of CCOFTA, as the case may be; and

• (c.11) the goods were imported from Costa Rica, from an EFTA state, from Israel or another CIFTA beneficiary, from Peru or from Colombia but no claim for preferential tariff treatment under CCRFTA, CEFTA, CIFTA, CPFTA or CCOFTA, as the case may be, was made in respect of those goods at the time they were accounted for under subsection 32(1), (3) or (5);

• Marginal note:Regulations — CCOFTA

  (1.21) The Governor in Council may, on the recommendation of the Minister, make regulations for the purpose of the uniform interpretation, application and administration of Chapter Four of CCOFTA and any other matters that may be agreed on from time to time by the parties to CCOFTA.

“Canada–Colombia Free Trade Agreement”

« Accord de libre-échange Canada–Colombie »

“Canada–Colombia Free Trade Agreement” has the same meaning as “Agreement” in section 2 of the Canada–Colombia Free Trade Agreement Implementation Act.

“Colombia”

« Colombie »

“Colombia” means the land territory, both continental and insular, the air space and the maritime areas over which the Republic of Colombia exercises sovereignty, or sovereign rights or jurisdiction, in accordance with its domestic law and international law.

Marginal note:Goods imported from a NAFTA country, Chile, Costa Rica, an EFTA state, Peru or Colombia

5. For the purposes of this Act, goods are imported from a NAFTA country, Chile, Costa Rica, Iceland, Norway, Switzerland, Liechtenstein, Peru or Colombia if they are shipped directly to Canada from that country.

• (c) by way of compensation for any action taken under subsection 55(1), section 60 or subsection 63(1), 69(2), 70(2), 71(2), 71.01(1), 71.1(2), 71.5(1), 72(1), 75(1), 76(1) or 76.1(1) or under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act.

• (b) the goods are entitled to that tariff treatment in accordance with regulations made under section 16 or an order made under paragraph 31(1)(a), 34(1)(a), 38(1)(a) or 42(1)(a), subsection 45(13), section 48 or subsection 49(2), 49.01(8) or 49.5(8).

Marginal note:Abbreviations

27. For the purposes of the List of Tariff Provisions and the “F” Staging List, the abbreviations “UST”, “MT”, “MUST”, “CT”, “CRT”, “CIAT”, “GPT”, “LDCT”, “CCCT”, “AUT”, “NZT”, “IT”, “NT”, “SLT”, “PT” and “COLT” refer, respectively, to “United States Tariff”, “Mexico Tariff”, “Mexico–United States Tariff”, “Chile Tariff”, “Costa Rica Tariff”, “Canada–Israel Agreement Tariff”, “General Preferential Tariff”, “Least Developed Country Tariff”, “Commonwealth Caribbean Countries Tariff”, “Australia Tariff”, “New Zealand Tariff”, “Iceland Tariff”, “Norway Tariff”, “Switzerland–Liechtenstein Tariff”, “Peru Tariff” and “Colombia Tariff”.

Colombia Tariff

Marginal note:Application of COLT

• 49.01 (1) Subject to section 24, goods that originate in Colombia are entitled to the Colombia Tariff rates of customs duty.

• Marginal note:“A” final rate

  (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “COLT” in relation to goods entitled to the Colombia Tariff, the Colombia Tariff rate of customs duty that applies to those goods is the final rate of “Free”.

• Marginal note:“F” staging for COLT

  (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “COLT” in relation to goods entitled to the Colombia Tariff, the Colombia Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List.

• Marginal note:Staging for COLT

  (4) If “S1”, “S2” or “S3” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “COLT” in relation to goods entitled to the Colombia Tariff, the Colombia Tariff rate of customs duty that applies to those goods is the initial rate, reduced

  • (a) if “S1” is set out,

    • (i) effective on the coming into force of this subsection, to two thirds of the initial rate,

    • (ii) effective on January 1 of the year that is one year after the year of the coming into force of this subsection, to one third of the initial rate, and

    • (iii) effective on January 1 of the year that is two years after the year of the coming into force of this subsection, to the final rate of “Free”;

  • (b) if “S2” is set out,

    • (i) effective on the coming into force of this subsection, to six sevenths of the initial rate,

    • (ii) effective on January 1 of the year that is one year after the year of the coming into force of this subsection, to five sevenths of the initial rate,

    • (iii) effective on January 1 of the year that is two years after the year of the coming into force of this subsection, to four sevenths of the initial rate,

    • (iv) effective on January 1 of the year that is three years after the year of the coming into force of this subsection, to three sevenths of the initial rate,

    • (v) effective on January 1 of the year that is four years after the year of the coming into force of this subsection, to two sevenths of the initial rate,

    • (vi) effective on January 1 of the year that is five years after the year of the coming into force of this subsection, to one seventh of the initial rate, and

    • (vii) effective on January 1 of the year that is six years after the year of the coming into force of this subsection, to the final rate of “Free”; and

  • (c) if “S3” is set out,

    • (i) effective on the coming into force of this subsection, to sixteen seventeenths of the initial rate,

    • (ii) effective on January 1 of the year that is one year after the year of the coming into force of this subsection, to fifteen seventeenths of the initial rate,

    • (iii) effective on January 1 of the year that is two years after the year of the coming into force of this subsection, to fourteen seventeenths of the initial rate,

    • (iv) effective on January 1 of the year that is three years after the year of the coming into force of this subsection, to thirteen seventeenths of the initial rate,

    • (v) effective on January 1 of the year that is four years after the year of the coming into force of this subsection, to twelve seventeenths of the initial rate,

    • (vi) effective on January 1 of the year that is five years after the year of the coming into force of this subsection, to eleven seventeenths of the initial rate,

    • (vii) effective on January 1 of the year that is six years after the year of the coming into force of this subsection, to ten seventeenths of the initial rate,

    • (viii) effective on January 1 of the year that is seven years after the year of the coming into force of this subsection, to nine seventeenths of the initial rate,

    • (ix) effective on January 1 of the year that is eight years after the year of the coming into force of this subsection, to eight seventeenths of the initial rate,

    • (x) effective on January 1 of the year that is nine years after the year of the coming into force of this subsection, to seven seventeenths of the initial rate,

    • (xi) effective on January 1 of the year that is 10 years after the year of the coming into force of this subsection, to six seventeenths of the initial rate,

    • (xii) effective on January 1 of the year that is 11 years after the year of the coming into force of this subsection, to five seventeenths of the initial rate,

    • (xiii) effective on January 1 of the year that is 12 years after the year of the coming into force of this subsection, to four seventeenths of the initial rate,

    • (xiv) effective on January 1 of the year that is 13 years after the year of the coming into force of this subsection, to three seventeenths of the initial rate,

    • (xv) effective on January 1 of the year that is 14 years after the year of the coming into force of this subsection, to two seventeenths of the initial rate,

    • (xvi) effective on January 1 of the year that is 15 years after the year of the coming into force of this subsection, to one seventeenth of the initial rate, and

    • (xvii) effective on January 1 of the year that is 16 years after the year of the coming into force of this subsection, to the final rate of “Free”.

• Marginal note:Rounding of specific rates

  (5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent.

• Marginal note:Rounding of amounts

  (6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5.

• Marginal note:Elimination of rates of less than two per cent

  (7) If a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately.

• Marginal note:Extension of Colombia Tariff

  (8) Notwithstanding any other provision of this Act, for the purposes of giving effect to Article 317 of the Canada–Colombia Free Trade Agreement, the Minister may, by order, amend the schedule to extend entitlement to the Colombia Tariff to any imported goods subject to any condition that may be specified in the order.

“principal cause”

« cause principale »

“principal cause”, in respect of goods imported from Peru or Colombia, means an important cause that is no less important than any other cause.

Marginal note:Peru and Colombia emergency measures

59.1 An order made under subsection 55(1) may exclude goods of any kind imported from Peru or Colombia if it appears to the satisfaction of the Governor in Council, on the basis of a report under section 20 or 29 of the Canadian International Trade Tribunal Act, that the quantity of those goods being imported is not a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods.

• Marginal note:Exception for goods imported from Peru or Colombia

  (4.1) An order under subsection (1) may exclude goods of any kind imported from Peru or Colombia if it appears to the satisfaction of the Governor in Council, on the basis of a report under the Canadian International Trade Tribunal Act, that the quantity of those goods being imported is not a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods.

Bilateral Emergency Measures — Colombia

Marginal note:Order by Governor in Council

• 71.01 (1) Subject to subsections (2) to (4), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.0121(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.061) of that Act, that goods that are entitled to the Colombia Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order

  • (a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 49.01; and

  • (b) make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Colombia Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of

    • (i) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made, and

    • (ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods on January 1, 2007.

• Marginal note:Terms and conditions

  (2) An order under subsection (1)

  • (a) may not be made more than once in respect of goods of any particular kind;

  • (b) may only remain in effect for the period, not exceeding three years, that is specified in the order; and

  • (c) may only be made during the period beginning on the day on which this subsection comes into force and ending

    • (i) if the order is in respect of goods for which the Colombia Tariff rate of customs duty is reduced to the final rate of “Free” over a period of less than 10 years, on the day that is 10 years after the day on which this subsection comes into force, and

    • (ii) if the order is in respect of goods for which the Colombia Tariff rate of customs duty is reduced to the final rate of “Free” over a period of 10 years or more, on the day after the expiry of the tariff staging period in respect of those goods.

• Marginal note:Rate of duty when order ceases to have effect

  (3) If an order made under subsection (1) ceases to have effect in a particular calendar year, the rate of customs duty applicable to the goods after the order ceases to have effect is the rate of customs duty that is applicable in accordance with section 49.01.

• Definition of “principal cause”

  (4) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat.