Order Amending the Schedule to the Customs Tariff (CCOFTA Short Supply): SOR/2020-10
Canada Gazette, Part II, Volume 154, Number 2
Registration
SOR/2020-10 January 10, 2020
CUSTOMS TARIFF
The Minister of Finance, pursuant to subsection 49.01(8) footnote a of the Customs Tariff footnote b, makes the annexed Order Amending the Schedule to the Customs Tariff (CCOFTA Short Supply).
Ottawa, January 9, 2020
William Francis Morneau
Minister of Finance
Order Amending the Schedule to the Customs Tariff (CCOFTA Short Supply)
Amendment
1 Section XI of the List of Tariff Provisions set out in the schedule to the Customs Tariff footnote 1 is amended by adding, after the Supplementary Note, the Notes set out in the schedule to this Order.
Coming into Force
2 This Order comes into force on the day on which it is registered.
SCHEDULE
(Section 1)
Canada–Colombia Short Supply Notes (CCOFTA Article 317).
- 1. For the purposes of giving effect to Article 317 of the Canada–Colombia Free Trade Agreement, goods of Chapters 50 through 60 are entitled to the Colombia Tariff if they:
- (a) are produced in Colombia from yarn or fabric set out in the List below, provided the yarn or fabric is produced or obtained outside Canada or Colombia; and
- (b) meet other applicable conditions for preferential tariff treatment under the CCOFTA Rules of Origin Regulations.
- 2. For the purposes of giving effect to Article 317 of the Canada–Colombia Free Trade Agreement, goods of Chapters 61 through 63 are entitled to the Colombia Tariff if they:
- (a) are both cut (or knit to shape) and sewn or otherwise assembled in Colombia from yarn or fabric set out in the List below, provided the yarn or fabric is produced or obtained outside Canada or Colombia; and
- (b) meet other applicable conditions for preferential tariff treatment under the CCOFTA Rules of Origin Regulations.
Item |
Subheading |
Description |
---|---|---|
1 |
5112.11 |
Woven fabrics of combed wool, containing wool, weight of 183.66 g/m2, wool 100%, yarns of different colours and plain weave |
2 |
5112.11 |
Fabrics of combed wool, weight of 154 g/m2, 100% wool, dyed and taffeta weave |
3 |
5112.19 |
Other woven fabrics of combed wool, weight of 220 g/m2, wool 100% , dyed and plain weave |
4 |
5112.19 |
Woven fabrics of combed wool, weight of 206 g/m2, 100% wool, yarns of different colours and taffeta weave |
5 |
5112.30 |
Other woven fabrics, bleached or unbleached, of combed fine animal hair, mixed solely with man-made staple fibres, weight of 230 g/m2, 52% goat hair and 48% viscose staple fibre and taffeta weave |
6 |
5205.12 |
Cotton yarn, single yarn of uncombed fibres, bleached or unbleached, with 590.6 decitex, staple fibres 100% cotton, 457 twists per metre, one end |
7 |
5205.12 |
Cotton yarn, single yarn of uncombed fibres, bleached or unbleached, with 369.125 decitex, staple fibres 100% cotton, 585 twists per metre, one end |
8 |
5205.22 |
Cotton yarn, single yarn combed fibres, with 492.166 decitex, staple fibres 100% cotton, 490 twists per metre, one end |
9 |
5205.23 |
Cotton yarn, single yarn combed fibres, with 196.86 decitex, discontinuous fibre, one end, 100% cotton, dyed, shiny and round cross-section |
10 |
5205.31 |
Cotton yarn twisted or cabled, bleached or unbleached of uncombed fibres, with 984.333 decitex, staple fibres 100% cotton, 437 twists per metre, two ends |
11 |
5205.32 |
Cotton yarn twisted or cabled, bleached or unbleached of uncombed fibres, with 492.166 decitex, staple fibres 100% cotton, 384 twists per metre, two ends |
12 |
5205.32 |
Cotton yarn twisted or cabled, bleached or unbleached of uncombed fibres, with 590.6 decitex, staple fibres 100% cotton, 597 twists per metre, two ends |
13 |
5205.42 |
Cotton yarn twisted or cabled, of combed fibres, with 590.6 decitex, staple fibres 100% cotton, 384 twists per metre, two ends |
14 |
5205.47 |
Cotton yarn twisted or cabled, bleached or unbleached of combed fibres, with 98.43 decitex, discontinuous fibre, two ends, 100% cotton and round cross-section |
15 |
5208.22 |
Bleached cotton fabrics, weight between 100 and 120 g/m2, 100% cotton, mercerized, and taffeta weave |
16 |
5208.23 |
Bleached cotton fabrics, weight between 100 and 120 g/m2, 100% cotton, mercerized and twill weave |
17 |
5208.29 |
Other bleached cotton fabrics, weight between 100 and 120 g/m2, 100% cotton, mercerized and other weave |
18 |
5208.32 |
Dyed cotton fabrics, weight between 100 and 120 g/m2, 100% cotton, mercerized and taffeta weave |
19 |
5208.33 |
Dyed cotton fabrics, weight between 100 and 120 g/m2, 100% cotton, mercerized and twill weave |
20 |
5208.39 |
Other dyed cotton fabrics, weight between 100 and 120 g/m2, 100% cotton, mercerized |
21 |
5208.42 |
Woven fabrics of cotton with yarns of different colours, weight between 100 and 120 g/m2, 100% cotton, mercerized and taffeta weave |
22 |
5208.49 |
Other woven fabrics of cotton with yarns of different colours, weight between 100 and 120 g/m2, 100% cotton, mercerized |
23 |
5209.32 |
Dyed cotton fabrics, weight of 200 g/m2, 100% cotton, dyed and twill weave |
24 |
5210.21 |
Bleached cotton fabrics, weight between 100 and 120 g/m2, containing more than 50% by weight of cotton, mercerized and taffeta weave |
25 |
5210.31 |
Dyed cotton fabrics, weight between 100 and 120 g/m2, containing more than 50% by weight of cotton, mercerized and taffeta weave |
26 |
5210.39 |
Other dyed cotton fabrics, weight between 100 and 120 g/m2, containing more than 50% by weight of cotton, mercerized |
27 |
5210.41 |
Woven fabrics of cotton with yarns of different colours, weight between 100 and 120 g/m2, containing more than 50% by weight of cotton, mercerized and taffeta weave |
28 |
5210.49 |
Other woven fabrics of cotton with yarns of different colours, weight between 100 and 120 g/m2, containing more than 50% by weight of cotton, mercerized |
29 |
5402.31 |
Single yarn, bleached or unbleached, of synthetic filament fibre, textured, with 78 decitex, 68 filaments, one end, 100% nylon and round cross-section |
30 |
5402.31 |
Yarn of synthetic filament fibre, bleached or unbleached, textured, with 78 decitex, 68 filaments, two ends, 100% nylon and round cross-section |
31 |
5402.31 |
Yarn, bleached or unbleached, of synthetic filament fibre, textured, with 22 decitex, 20 filaments, two ends, 100% nylon and round cross-section |
32 |
5402.33 |
Synthetic filament yarn, textured, with 55 decitex, 24 filaments, one end and 100% polyester with polybutylene terephthalate (PBT) |
33 |
5402.33 |
Single yarn, bleached or unbleached, of synthetic filament fibre, textured, of polyester, between 100 and 150 decitex, filaments between 144 and 288, one end and round cross-section |
34 |
5402.33 |
Synthetic filament yarn, textured, with 290 decitex, one end, 96% polyester and 4% elastomeric yarn, coloured and round cross-section |
35 |
5402.33 |
Synthetic filament yarn, textured, with 96 decitex, 96 polyester filaments, one end, 95% polyester and 5% elastomeric yarn, coloured and round cross-section |
36 |
5402.34 |
Synthetic filament yarn, textured, with 78 decitex, 25 filaments, one end, 100% polypropylene, dyed and round cross-section |
37 |
5402.47 |
Other synthetic filament yarn, single untwisted, or twisted lower or equal to 50 turns per metre, 55 decitex, 24 filaments, one end and 100% polyester |
38 |
5407.52 |
Other woven fabrics of synthetic filament, with textured polyester, weight of 170 g/m2, 100% polyester, dyed and taffeta weave |
39 |
5407.53 |
Other woven fabrics of synthetic filament yarn, containing 85% or more by weight of textured polyester filaments with yarns of different colours, weight of 90 g/m2, 100% polyester and taffeta weave |
40 |
5407.61 |
Other woven fabrics of synthetic filament, with non-textured polyester, weight of 53 g/m2, 100% polyester, dyed and taffeta weave |
41 |
5407.61 |
Other woven fabrics of synthetic filament, with non-textured polyester, weight of 74 g/m2, 100% polyester and taffeta weave |
42 |
5407.61 |
Other woven fabrics of synthetic filament, with non-textured polyester, weight of 88 g/m2, 100% polyester and compound weave Compound weave means any type of woven structure which involves more than two sets of elements — such as one or more warp sets, plus two or more weft sets — which are manipulated through different pathways to create a pattern. |
43 |
5407.81 |
Woven fabric containing less than 85% by weight of polyester fibres, not containing nylon, mixed mainly or solely with cotton, unbleached or bleached, containing a weft yarn, single or plied, of textured polyester and containing a warp yarn of polyester and cotton |
44 |
5407.92 |
Other woven fabrics of synthetic filament, dyed, weight of 80 g/m2, 90% polyester and 10% cotton and cross twill 2x1 weave |
45 |
5407.93 |
Other woven fabrics of synthetic filament, with yarns of different colours, weight of 92 g/m2, 52% polyester and 48% rayon, yarns of different colours and twill 2x1 weave |
46 |
5408.33 |
Other woven fabrics of artificial filaments, yarns of different colours, weight of 104 g/m2, 50% polyester and 50% viscose and compound weave Compound weave means any type of woven structure which involves more than two sets of elements — such as one or more warp sets, plus two or more weft sets — which are manipulated through different pathways to create a pattern. |
47 |
5509.21 |
Single yarn, bleached or unbleached, of synthetic staple fibres, with 200 decitex, multifilaments, 50 twists per metre, one end, of polyester and round cross-section |
48 |
5509.99 |
Other yarn of synthetic staple fibres, bleached or unbleached, with 200 decitex, multifilaments, 60 twists per metre, one end, polyester/viscose and round cross-section |
49 |
5510.11 |
Single yarn of artificial staple fibres, with 196.86 decitex, discontinuous fibre, one end, 100% viscose, dyed and single and round cross-section |
50 |
5510.12 |
Yarn of artificial staple fibres, twisted or cabled, with 630 decitex, 100 filaments, one end, 100% viscose rayon and dyed |
51 |
5510.12 |
Yarn of artificial staple fibres, twisted or cabled, with 630 decitex, 100 filaments, two ends, 100% viscose rayon and dyed |
52 |
5512.11 |
Woven fabrics of synthetic staple fibres, bleached, weight of 200 g/m2, 90% polyester and 10% cotton, uncoated |
53 |
5515.11 |
Other woven fabrics of synthetic staple fibre, mixed mainly or solely with viscose rayon staple fibres, weight of 88 g/m2, 53% polyester and 47% rayon, yarns of different colours and twill 2x1 weave |
54 |
5515.11 |
Other woven fabrics of synthetic staple fibres, weight of 88 g/m2, 53% by weight of polyester and 47% viscose rayon staple fibre, dyed and taffeta weave |
55 |
5515.11 |
Other woven fabrics of synthetic staple fibres, mixed mainly or solely with viscose rayon staple fibres, weight of 100 g/m2, 56% by weight of polyester and 44% viscose rayon staple fibre, dyed and taffeta weave |
56 |
5515.11 |
Other woven fabrics of synthetic staple fibres, mixed solely with viscose rayon staple fibres, weight of 100 g/m2, 50% polyester and 50% viscose, dyed and taffeta weave |
57 |
5515.11 |
Other woven fabrics of synthetic staple fibres, mixed solely with viscose rayon staple fibres, weight of 220 g/m2, 65% polyester and 35% viscose, sanforized and taffeta weave |
58 |
5515.12 |
Other woven fabrics of synthetic staple fibres, mixed mainly or solely with synthetic or artificial filaments, weight of 279 g/m2, 48.5% polyester 45.5% viscose and 3% elastomeric yarn, dyed and twill weave |
59 |
5515.13 |
Other fabrics of synthetic staple fibres mixed solely with wool, weight of 223.89 g/m2; 55% polyester and 45% wool, yarns of different colours and houndstooth weave |
60 |
5515.13 |
Other fabrics of synthetic staple fibres mixed mainly or solely with wool, weight of 210.78 g/m2, 54% polyester, 44% wool and 2% elastomeric yarn, dyed and broken weave |
61 |
5515.13 |
Other fabrics of synthetic staple fibres mixed solely with wool, weight of 200.71 g/m2, 55% polyester and 45% wool, dyed and plain weave |
62 |
5515.13 |
Other fabrics of synthetic staple fibres mixed with wool, weight of 156.31 g/m2, 55% polyester and 45% wool, dyed and plain weave |
63 |
5515.13 |
Other woven fabrics of synthetic staple fibres, mixed solely with wool, weight of 233 g/m2, 55% polyester and 45% wool, yarns of different colours and twill weave |
64 |
6001.22 |
Pile (including knitted long pile) fabrics and terry fabrics, knitted or crocheted, of synthetic or artificial fibres, weight of 268 g/m2, 90% polyester and 10% elastomeric yarn and dyed |
65 |
6001.22 |
Pile (including knitted long pile) fabrics and terry fabrics, knitted or crocheted, of synthetic or artificial fibres, weight of 200 g/m2, 94% polyester and 6% elastomeric yarn and dyed |
66 |
6001.22 |
Pile (including knitted long pile), looped pile fabrics, knitted or crocheted, of synthetic or artificial fibres, weight of 125 g/m2, 91% polyester and 9% elastomeric yarn and dyed |
67 |
6001.22 |
Pile (including knitted long pile), looped pile fabrics, knitted or crocheted, of synthetic or artificial fibres, weight of 257 g/m2, 100% polyester and dyed |
68 |
6001.22 |
Pile (including knitted long pile), looped pile fabrics, knitted or crocheted, of synthetic or artificial fibres, weight of 129 g/m2, 92% polyester, 8% elastomeric yarn and dyed |
69 |
6001.22 |
Pile (including knitted long pile) looped pile fabrics, knitted or crocheted, synthetic or artificial fibres, weight of 295 g/m2, 100% polyester |
70 |
6001.22 |
Pile (including knitted long pile) fabrics and terry fabrics, knitted or crocheted, of synthetic or artificial fibres, weight of 229 g/m2, 93% polyester and 7% elastomeric yarn and dyed |
71 |
6001.92 |
Pile (including knitted "long hair") looped pile fabrics, knitted or crocheted, other, synthetic or artificial fibres, weight of 206 g/m2, 97% polyester and 3% elastomeric yarn and dyed |
72 |
6001.92 |
Pile (including knitted "long hair") fabrics and terry fabrics, knitted or crocheted, others, synthetic or artificial fibres, weight of 295 g/m2, 100% polyester, dyed, and weft or warp knitted |
73 |
6001.92 |
Pile (including knitted "long hair") fabrics and terry fabrics, knitted or crocheted, other, synthetic or artificial fibres, weight of 249 g/m2, 97% polyester and 3% elastomeric yarn and dyed |
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
Under the terms of the Canada-Colombia Free Trade Agreement (CCOFTA), Canada and Colombia have agreed to establish a “short supply” list of yarns and fabrics that are not produced in Canada or Colombia. These textile inputs may be used to produce textile products or apparel that are eligible for duty-free treatment when imported into Canada or Colombia.
The Order Amending the Schedule to the Customs Tariff (CCOFTA Short Supply) implements, in Canada, this bilaterally agreed list of yarns and fabrics. Accordingly, listed goods may be sourced outside of the free trade area and used in the production of Colombian textile products or apparel that are eligible for duty-free treatment when imported into Canada.
Background
In order to be eligible for duty-free treatment under the CCOFTA, textile products and apparel must generally be produced in Canada or Colombia from yarn and fabric yarn produced in the free trade area.
Article 317 (Short Supply) of the CCOFTA provides a limited exception to this requirement, and allows both Parties to agree that certain textile inputs are not available in commercial quantities in a timely manner in either Canada or Colombia. Once agreed upon, these inputs are considered to be in short supply and may be imported from outside the free trade area and used to produce originating textile and apparel goods that are eligible for duty-free treatment.
At the third Joint Commission meeting under the CCOFTA, which took place on October 24, 2017, Canada and Colombia agreed to establish a list of 73 items that were determined to be in short supply. These items cover a range of yarns and fabrics from wool, cashmere, cotton and man-made fibres, such as polyester and viscose rayon with very specific requirements (e.g. the yarn or fabric must meet a given weight specification).
To give effect to this list, Canada and Colombia must each implement the list unilaterally in accordance with their applicable domestic legal procedures. Colombia has advised Canada that it has completed its domestic procedures and is ready to proceed with implementation.
Objective
The objective of this Order is to implement Canada’s short supply commitment under the CCOFTA to allow the duty-free importation of textile and apparel goods produced from certain yarns and fabrics determined to be in short supply in the free trade area.
Description
The Order Amending the Schedule to the Customs Tariff (CCOFTA Short Supply) amends the schedule to the Customs Tariff to establish a list of yarns and fabrics not produced in commercial quantities in Canada or Colombia, and to allow textile goods or apparel produced in Colombia from those yarns or fabrics to be eligible for CCOFTA duty-free treatment when imported into Canada.
Regulatory development
Consultation
The Order implements the negotiated outcome of the CCOFTA and the short supply list agreed to by Canada and Colombia in October 2017. The Government undertook in-depth analysis of the proposed short supply list, including conducting consultations via email with over 300 domestic stakeholders in the textile and apparel sectors, and concluded that there is little to no domestic production of these textile inputs. Therefore, allowing for the use of these non-originating textile inputs is not expected to create any adverse effects on Canadian textile producers.
Modern treaty obligations and Indigenous engagement and consultation
As a result of this Order, benefits in the form of eliminated duties will be accessible to anyone seeking to import textile and apparel goods from Colombia, including Indigenous peoples, if they meet the necessary requirements.
Instrument choice
The only viable mechanism to introduce a CCOFTA short supply list and extend duty-free treatment to textile and apparel goods made from the yarns and fabrics on the list is through an Order made under the Customs Tariff.
Regulatory analysis
Benefits and costs
By extending entitlement to CCOFTA duty-free treatment to goods that were previously not entitled to tariff preferences, the Order allows Canadian importers of these goods to claim the preferential tariff rates as established in the CCOFTA. It is estimated that annual duties foregone by the Government would be up to approximately $760,000, based on recent trade patterns. These duties represent a benefit, in the form of lower customs duties to be paid by Canadian importers of certain textile products and apparel produced in Colombia.
Small business lens
This Order does not make changes to the importing or exporting of goods, including the required customs forms. It extends duty-free treatment to textile and apparel goods produced in Colombia from the listed yarns and fabrics. There is no incremental change to the administrative burden or compliance costs currently imposed on businesses, including small businesses, as a result of the implementation of this Order.
One-for-one rule
Since this Order does not make changes to the importing and exporting of goods, including the required customs forms, no increase or decrease in the administrative burden imposed on businesses is anticipated. Accordingly, the one-for-one rule does not apply to this Order.
Regulatory cooperation and alignment
This Order is not related to a work plan or commitment under a regulatory cooperation forum.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for this Order.
Implementation, compliance and enforcement, and service standards
The Canada Border Services Agency (CBSA) will monitor compliance with the terms and conditions of this Order in the normal course of its administration of customs- and tariff-related legislation and regulations. The CBSA will update its systems to account for these changes and will inform importers of all relevant issues pertaining to the administration of this Order.
Contact
Karen LaHay
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Telephone: 613‑369‑4043