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

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 or  Article  423  of CPFTA, as the case may be.

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

  (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 or CPFTA 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 or from Peru, 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 or paragraph 1 of Article 419 of CPFTA, as the case may be; and

• (c.11) the goods were imported from Costa Rica, from Israel or another CIFTA beneficiary or from Peru but no claim for preferential tariff treatment under CCRFTA, CIFTA or CPFTA, 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 — CPFTA

  (1.4) 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 CPFTA and any other matters that may be agreed on from time to time by the parties to CPFTA.

“Canada–Peru Free Trade Agreement”

« Accord de libre-échange Canada-Pérou »

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

“Peru”

« Pérou »

“Peru” means the mainland territory, the islands, the maritime zones and the air space above them, over which the Republic of Peru exercises sovereignty, or sovereign rights and jurisdiction, in accordance with its domestic law and international law.

Marginal note:Goods imported from a NAFTA country, Chile, Costa Rica or Peru

5. For the purposes of this Act, goods are imported from a NAFTA country, Chile, Costa Rica or Peru 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), 71.1(2), 71.2(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) 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” and “PT” 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” and “Peru Tariff”.

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. 1701.91.90, 1701.99.90, 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 1702.90.89 and 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.

Peru Tariff

Marginal note:Application of PT

• 49.5 (1) Subject to section 24, goods that originate in Peru are entitled to the Peru 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 “PT” in relation to goods entitled to the Peru Tariff, the Peru Tariff rate of customs duty that applies to those goods is the final rate of “Free”.

• Marginal note:“F” staging for PT

  (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “PT” in relation to goods entitled to the Peru Tariff, the Peru 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 PT

  (4) If “R1” or “R2” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “PT” in relation to goods entitled to the Peru Tariff, the Peru Tariff rate of customs duty that applies to those goods is the initial rate, reduced

  • (a) if “R1” 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, 2010, to one third of the initial rate, and

    • (iii) effective on January 1, 2011, to the final rate of “Free”; and

  • (b) if “R2” 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, 2010, to five sevenths of the initial rate,

    • (iii) effective on January 1, 2011, to four sevenths of the initial rate,

    • (iv) effective on January 1, 2012, to three sevenths of the initial rate,

    • (v) effective on January 1, 2013, to two sevenths of the initial rate,

    • (vi) effective on January 1, 2014, to one seventh of the initial rate, and

    • (vii) effective on January 1, 2015, 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 Peru Tariff

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

• Marginal note:Limits on reduction of duty

  (9) 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. 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 and 1702.90.81 that are entitled to the Peru Tariff, and the limits apply during the periods and subject to the conditions that may be specified in the order.