Customs Tariff

Marginal note:Order by Governor in Council

• 72 (1) This section does not apply in respect of textile and apparel goods set out in section 1 of Annex 3.1 of the Canada–Honduras Free Trade Agreement.

• (2) Subject to subsections (3) to (7), 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 19.019(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.095) of that Act, that goods that are entitled to the Honduras 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 49.6;

  • (b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in the Act or 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 Honduras Tariff, may not exceed the Most-Favoured-Nation Tariff rate of customs duty that was in effect for the corresponding season immediately before the coming into force of this subsection; and

  • (c) in respect of goods other than goods referred to in paragraph (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 Honduras 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 immediately before the coming into force of this subsection.

• Marginal note:Terms and conditions

  (3) An order under subsection (2)

  • (a) may not be made more than twice during the period beginning on the coming into force of this subsection and ending on the date that is eight years after the coming into force of this subsection in respect of goods of a particular kind;

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

  • (c) may be made after the date that is eight years after the coming into force of this subsection if the order is based on an agreement between the Government of Canada and the Government of the Republic of Honduras relating to the application of subsection (2).

• Marginal note:Application of measures a second time

  (4) A measure referred to in an order made under subsection (2) may be applied a second time if

  • (a) the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application;

  • (b) the rate of duty for the first year of the second action is not greater than the rate that would be in effect in accordance with section 49.6, at the time the first action was imposed; and

  • (c) the rate of duty applicable to any subsequent year is reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for section 49.6 for that year.

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

  (5) If an order made under subsection (2) ceases to have effect in a particular calendar year

  • (a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would otherwise have been applicable one year after the making of the order, as reduced in accordance with section 49.6; and

  • (b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (6).

• Marginal note:Specification of applicable rate

  (6) For the purposes of subsection (5), the Minister shall, by order, specify that the rate referred to in paragraph (5)(b) is

  • (a) the rate of customs duty that would have been applicable on January 1 of the year after the year in which the order ceases to have effect, if the rate of customs duty had been reduced in accordance with section 49.6, reduced for subsequent years in accordance with that section; or

  • (b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages beginning on January 1 of the year after the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 49.6.

• Marginal note:Definition of principal cause

  (7) 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.