Canada–Costa Rica Free Trade Agreement Implementation Act (S.C. 2001, c. 28)
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Assented to 2001-12-18
PART IIRELATED AND CONSEQUENTIAL AMENDMENTS
R.S., c. 1 (2nd Supp.)Customs Act
Marginal note:1997, c. 14, s. 38, c. 36, s. 163
27. Sections 42.3 and 42.4 of the Act are replaced by the following:
Definition of “customs administration”
42.3 (1) In this section, “customs administration” has the meaning assigned to that expression by Article 514 of NAFTA, Article E-14 of CCFTA or Article V.14 of CCRFTA, as the case may be.
Marginal note:Effective date of redetermination or further redetermination of origin of goods
(2) Subject to subsection (4), a redetermination or further redetermination of origin does not take effect until notice of it is given to the importer of the goods and any person who completed and signed a Certificate of Origin for the goods if the result of the redetermination or further redetermination of origin made under subsection 59(1) in respect of goods for which preferential tariff treatment under NAFTA, CCFTA or CCRFTA is claimed and that are the subject of a verification of origin under this Act is that
(a) the goods are not eligible for that preferential tariff treatment on the basis of the tariff classification or value of one or more materials used in their production; and
(b) that tariff classification or value differs from the tariff classification or value applied to those materials by the NAFTA country from which the goods were exported, from Chile or from Costa Rica, as the case may be.
Marginal note:Limitation
(3) A redetermination or further redetermination of origin referred to in subsection (2) shall not be applied to goods imported before the date on which the notice was given if the customs administration of the NAFTA country from which the goods were exported, of Chile or of Costa Rica, as the case may be, has, before that date,
(a) given an advance ruling under Article 509 of NAFTA, Article E-09 of CCFTA or Article V.9 of CCRFTA, as the case may be, or given another ruling referred to in paragraph 12 of Article 506 of NAFTA, paragraph 12 of Article E-06 of CCFTA or paragraph 15 of Article V.6 of CCRFTA, as the case may be, on the tariff classification or value of the materials referred to in subsection (2); or
(b) given consistent treatment with respect to the tariff classification or value of the materials referred to in subsection (2) on their importation into the NAFTA country, Chile or Costa Rica, as the case may be.
Marginal note:Postponement of effective date
(4) The date on which a redetermination or further redetermination of origin referred to in subsection (2) takes effect shall be postponed for a period not exceeding ninety days if the importer of the goods that are the subject of the redetermination or further redetermination or any person who completed and signed a Certificate of Origin for the goods establishes to the satisfaction of the Minister that the importer or the person, as the case may be, has relied in good faith, to the detriment of the importer or person, on the tariff classification or value applied to the materials referred to in that subsection by the customs administration of the NAFTA country from which the goods were exported, of Chile or of Costa Rica, as the case may be.
Denial or Withdrawal of Benefit of Preferential Tariff Treatment under NAFTA, CCFTA or CCRFTA
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 or Article V.14 of CCRFTA, as the case may be.
Marginal note:Denial or withdrawal of benefit: NAFTA country, Chile or Costa Rica
(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 or CCRFTA 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.
Marginal note:1997, c. 14, s. 39
28. Paragraph 43.1(1)(b) of the Act is replaced by the following:
(b) in the case of goods exported from a NAFTA country, from Chile or from Costa Rica, any other matter concerning those goods that is set out in paragraph 1 of Article 509 of NAFTA, in paragraph 1 of Article E-09 of CCFTA or in paragraph 1 of Article V.9 or paragraph 10 of Article IX.2 of CCRFTA, as the case may be.
Marginal note:1996, c. 33, s. 36(1)
29. Paragraph 74(1)(c.11) of the Act is replaced by the following:
(c.11) the goods were imported from Costa Rica or from Israel or another CIFTA beneficiary but no claim for preferential tariff treatment under CCRFTA or CIFTA, 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);
30. Section 164 of the Act is amended by adding the following after subsection (1.2):
Marginal note:Uniform Regulations
(1.3) The Governor in Council may, on the recommendation of the Minister, make regulations for the purpose of the uniform interpretation, application and administration of Chapters III and V of CCRFTA and any other matters that may be agreed on from time to time by the parties to CCRFTA.
1997, c. 36Customs Tariff
31. Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order:
“Canada–Costa Rica Free Trade Agreement”
« Accord de libre-échange Canada–Costa Rica »
“Canada–Costa Rica Free Trade Agreement” has the same meaning as “Agreement” in subsection 2(1) of the Canada–Costa Rica Free Trade Agreement Implementation Act;
“Costa Rica”
« Costa Rica »
“Costa Rica” means the territory and air space, and the maritime areas, including the seabed and subsoil adjacent to the outer limit of the territorial sea, over which it exercises, in accordance with international law and its domestic law, sovereign rights with respect to the natural resources of such areas;
32. Section 5 of the Act is replaced by the following:
Marginal note:Goods imported from a NAFTA country, Chile or Costa Rica
5. For the purposes of this Act, goods are imported from a NAFTA country, from Chile or from Costa Rica if they are shipped directly to Canada from the NAFTA country, from Chile or from Costa Rica, as the case may be.
33. Paragraph 14(2)(c) of the Act is replaced by the following:
(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), 71.1(2), 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.
34. (1) Paragraph 16(2)(a) of the Act is replaced by the following:
(a) respecting the origin of goods, including regulations
(i) deeming goods, the whole or a portion of which is produced outside a country, to originate in that country for the purposes of this Act or any other Act of Parliament, subject to such conditions as are specified in the regulations,
(ii) deeming goods, the whole or a portion of which is produced within a geographic area of a country, not to originate in that country for the purposes of this Act or any other Act of Parliament and not to be entitled to the preferential tariff treatment otherwise applicable under this Act, subject to such conditions as are specified in the regulations, and
(iii) for determining when goods originate in a country for the purposes of this Act or any other Act of Parliament; and
(2) Section 16 of the Act is amended by adding the following after subsection (2):
Definition of “geographic area”
(2.1) In subsections (2) and 49.1(4), “geographic area” means any area specified by the Minister of National Revenue after consultation with the Minister for International Trade.
(3) Subsection 16(4) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) Chapters III and IV of the Canada–Costa Rica Free Trade Agreement and any other matters agreed on from time to time by the parties to that Agreement for the purposes of that Agreement.
35. Paragraph 24(1)(b) of the Act is replaced by the following:
(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) or 49(2) or section 48.
36. Section 27 of the Act is replaced by the following:
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” and “NZT” 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” and “New Zealand Tariff”.
37. The Act is amended by adding the following after section 49:
Costa Rica Tariff
Marginal note:Application of CRT
49.1 (1) Subject to section 24, goods that originate in Costa Rica are entitled to the Costa Rica 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 “CRT” in relation to goods entitled to the Costa Rica Tariff, the Costa Rica Tariff rate of customs duty that applies to those goods is the final rate of “Free”.
Marginal note:“F” staging for CRT
(3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CRT” in relation to goods entitled to the Costa Rica Tariff, the Costa Rica Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List.
Marginal note:“M” Staging for CRT
(4) If “M” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CRT” in relation to goods entitled to the Costa Rica Tariff, the Costa Rica Tariff rate of customs duty that applies to those goods is the initial rate, reduced to a final rate of “Free” when the Minister is satisfied that Costa Rica has eliminated all business income tax exemptions and other export subsidies in respect of goods produced wholly or partially within a geographic area, as defined in subsection 16(2.1).
Marginal note:Staging for CRT
(5) If “N”, “O” or “P” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CRT” in relation to goods entitled to the Costa Rica Tariff, the Costa Rica Tariff rate of customs duty that applies to those goods is the initial rate, reduced
(a) if “N” is set out,
(i) effective on the coming into force of this subsection, to four fifths of the initial rate,
(ii) effective on January 1, 2003, to three fifths of the initial rate,
(iii) effective on January 1, 2004, to two fifths of the initial rate,
(iv) effective on January 1, 2005, to one fifth of the initial rate, and
(v) effective on January 1, 2006, to the final rate of “Free”;
(b) if “O” is set out,
(i) effective on the coming into force of this subsection, to seven eighths of the initial rate,
(ii) effective on January 1, 2003, to six eighths of the initial rate,
(iii) effective on January 1, 2004, to five eighths of the initial rate,
(iv) effective on January 1, 2005, to four eighths of the initial rate,
(v) effective on January 1, 2006, to three eighths of the initial rate,
(vi) effective on January 1, 2007, to two eighths of the initial rate,
(vii) effective on January 1, 2008, to one eighth of the initial rate, and
(viii) effective on January 1, 2009, to the final rate of “Free”; and
(c) if “P” is set out,
(i) effective on January 1, 2003, to eight ninths of the initial rate,
(ii) effective on January 1, 2004, to seven ninths of the initial rate,
(iii) effective on January 1, 2005, to six ninths of the initial rate,
(iv) effective on January 1, 2006, to five ninths of the initial rate,
(v) effective on January 1, 2007, to four ninths of the initial rate,
(vi) effective on January 1, 2008, to three ninths of the initial rate,
(vii) effective on January 1, 2009, to two ninths of the initial rate,
(viii) effective on January 1, 2010, to one ninth of the initial rate, and
(ix) effective on January 1, 2011, to the final rate of “Free”.
Marginal note:Rounding of specific rates
(6) If a reduction under subsection (3) or (5) 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
(7) If a reduction under subsection (3) or (5) 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
(8) If a reduction under subsection (3) or (5) 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 Costa Rica Tariff
49.2 Notwithstanding any other provision of this Act and for the purpose of giving effect to Appendix III.1.6.1 of Annex III.1 of the Canada–Costa Rica Free Trade Agreement, the Minister may, by order, amend the schedule to extend entitlement to the Costa Rica Tariff to any imported goods under such conditions as are specified in the order.
Marginal note:Limits on reduction of duty
49.3 (1) The Governor in Council may, on the recommendation of the Minister, by order, specify limits on the aggregate quantity of goods of tariff item Nos. 1701.91.00, 1701.99.00, 1702.90.11, 1702.90.12, 1702.90.13, 1702.90.14, 1702.90.15, 1702.90.16, 1702.90.17, 1702.90.18 and 1702.90.30 that are entitled to the Costa Rica Tariff, and the limits apply during the periods and subject to the conditions that may be specified in the order.
Marginal note:Ceases to have effect
(2) This section ceases to have effect on December 31, 2010.
Marginal note:Reduction of rate: “M” Staging
49.4 The Governor in Council may, on the recommendation of the Minister, by order, amend the List of Tariff Provisions and the “F” Staging List to reduce, subject to the conditions specified in the order, the initial rate for goods of a tariff item entitled to the Costa Rica Tariff in respect of which “M” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CRT” in that tariff item.
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