Vol. 139, No. 14 — July 13, 2005

Registration
SOR/2005-218 June 28, 2005

CUSTOMS TARIFF

Order Amending the Schedule to the Customs Tariff (Special Provisions for the Purposes of the United States Tariff (UST))

The Minister of Finance, pursuant to subsection 45(13) of the Customs Tariff (see footnote a), hereby makes the annexed Order Amending the Schedule to the Customs Tariff (Special Provisions for the Purposes of the United States Tariff (UST)).

Ottawa, June 28, 2005

Ralph Goodale
Minister of Finance

ORDER AMENDING THE SCHEDULE TO THE CUSTOMS TARIFF (SPECIAL PROVISIONS FOR THE PURPOSES OF THE UNITED STATES TARIFF (UST))

CONDITION

1. In the territory of Canada and the United States, goods set out in column 1 of the schedule to this Order are entitled to the United States Tariff if they undergo the change in tariff classification set out in column 2 of that schedule.

AMENDMENT

2. (1) The expression "Supplementary Note" in Section XI of the schedule to the Customs Tariff (see footnote 1) is replaced by the expression "Supplementary Notes".

(2) Section XI of the schedule to the Customs Tariff is amended by adding the following after supplementary note 1:

2. For the purposes of giving effect to Appendix 6 of Annex 300-B of Chapter Three of the North American Free Trade Agreement, goods contained in subheadings 5112.11 and 5112.19, heading 54.08, subheadings 5509.31 and 5601.10, heading 56.06 and subheading 5801.35 are entitled to the United States Tariff subject to the condition specified in the Order Amending the Schedule to the Customs Tariff (Special Provisions for the Purposes of the United States Tariff (UST)).

COMING INTO FORCE

3. This Order comes into force on July 1, 2005.

SCHEDULE
(Section 1)

SPECIAL PROVISIONS FOR THE PURPOSES OF THE UNITED STATES TARIFF (UST)

Column 1 Goods	Column 2 Change in Tariff Classification
Subheading 5112.11	A change to woven fabrics, other than tapestry fabrics or upholstery fabrics of a weight not exceeding 140 g/m2, of combed fine animal hair of subheading 5112.11 from yarn of combed camel hair or combed cashmere of subheading 5108.20 or any other heading, except from headings 51.06 through 51.07, any other good of heading 51.08 or headings 51.09 through 51.11, 51.13, 52.05 through 52.06, 54.01 through 54.04 or 55.09 through 55.10.
Subheading 5112.19	A change to woven fabrics, other than tapestry fabrics or upholstery fabrics, of combed fine animal hair of subheading 5112.19 from yarn of combed camel hair or combed cashmere of subheading 5108.20 or any other heading, except from headings 51.06 through 51.07, any other good of heading 51.08 or headings 51.09 through 51.11, 51.13, 52.05 through 52.06, 54.01 through 54.04 or 55.09 through 55.10.
Heading 54.08	A change to heading 54.08 from filament yarns of viscose rayon of heading 54.03 or any other chapter, except from headings 51.06 through 51.10, 52.05 through 52.06 or 55.09 through 55.10.
Subheading 5509.31	A change to subheading 5509.31 from acid-dyeable acrylic tow of subheading 5501.30 or any other chapter, except from headings 52.01 through 52.03 or 54.01 through 54.05.
Subheading 5601.10	A change to sanitary towels or tampons of subheading 5601.10 from trilobal rayon staple fibre (38 mm, 3.3 decitex) of subheading 5504.10 or any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11 or Chapters 54 through 55.
Heading 56.06	A change to heading 56.06 from flat yarns* of subheading 5402.41 or any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11 or Chapters 54 through 55.
Subheading 5801.35	A change to woven-warp pile fabric, cut, of subheading 5801.35, with pile of dry-spun acrylic staple fibres of subheading 5503.30, which fabric has been dyed in the piece to a single uniform colour, from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, headings 55.01 through 55.02, subheadings 5503.10 through 5503.20 or 5503.40 through 5503.90 or headings 55.04 through 55.15.

^* Flat yarns" means 7 denier/5 filament, 10 denier/7 filament, or 12 denier/ 5 filament, all of nylon 66, untextured (flat) semi-dull yarns, multi filament, untwisted or with a twist not exceeding 50 turns per meter, of subheading 5402.41.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Description

This Order implements amendments made to Appendix 6 of Annex 300-B of the North American Free Trade Agreement (NAFTA) to liberalize the rules of origin applicable to certain textile products for purposes of determining their eligibility for duty-free treatment under the Agreement. The Order covers textile products made from yarns of combed camel hair or cashmere, filament yarns of viscose rayon, acid-dyeable acrylic tow, tri-lobal rayon staple fibres, certain flat yarns of nylon and dry spun acrylic fibres that are not available from domestic producers in commercial quantities.

Canada and the United States have agreed to implement the changes on July 1, 2005 pursuant to section 7, Annex 300-B of the NAFTA which allows any two of the Parties to agree to different rules of origin for particular textile products made from inputs that are unavailable from domestic production in the NAFTA territory.

Alternative

This Order implements Canada's commitment under the NAFTA. The Customs Tariff grants authority to the Minister of Finance to give effect to the "Short Supply" provision of NAFTA.

Benefits and Costs

This measure is designed to facilitate trade between Canada and the United States and is in response to specific industry requests. This Order expands duty-free access for Canadian and American manufacturers of certain textile products who cannot source their inputs in North America.

Consultation

The Canadian Textiles Institute and the Canadian Apparel Federation have been consulted and both support the changes. A notice to consult Canadians on the proposed amendments was also pre-published in the Canada Gazette, Part I, on February 19, 2005. No opposition was received.

Compliance and Enforcement

Compliance with the terms and conditions of this Order will be monitored by officials of the Canada Border Services Agency.

Contact

Sylvie Larose
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: (613) 996-5887

Footnote a

S.C. 1997, c. 36

Footnote 1

S.C. 1997, c. 36

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