Vol. 142, No. 26 — December 24, 2008

Registration

SOR/2008-313 December 12, 2008

CUSTOMS TARIFF

Order Amending the Schedule to the Customs Tariff (Wine and Beer)

P.C. 2008-1905 December 12, 2008

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 14 (see footnote a) and 82 of the Customs Tariff (see footnote b), hereby makes the annexed Order Amending the Schedule to the Customs Tariff (Wine and Beer).

ORDER AMENDING THE SCHEDULE TO THE
CUSTOMS TARIFF (WINE AND BEER)

AMENDMENTS

1. The List of Tariff Provisions set out in the schedule to the Customs Tariff  (see footnote 1) is amended as set out in Part 1 of the schedule to this Order.

2. The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended as set out in Part 2 of the schedule to this Order.

3. The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff items set out in Part 3 of the schedule to this Order.

COMING INTO FORCE

4. This Order comes into force on January 1, 2009.

SCHEDULE

PART 1
(Section 1)

AMENDMENTS TO THE LIST OF
TARIFF PROVISIONS

1. Tariff item No. 2202.90.10 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “3.3¢/litre (A)” with a reference to “Free (F)”.

2. Tariff item No. 2204.10.10 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “37.4¢/litre (A)” with a reference to “Free (F)”.

3. Tariff item No. 2204.10.90 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “37.4¢/litre (A)” with a reference to “Free (F)”.

4. Tariff item No. 2204.21.10 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “3.74¢/litre (B)” with a reference to “1.87¢/litre (F)”.

5. Tariff item No. 2204.21.21 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “9.35¢/litre (B)” with a reference to “4.68¢/litre (F)”.

6. Tariff item No. 2204.21.22 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “10.33¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “2.58¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “2.58¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

7. Tariff item No. 2204.21.23 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “11.31¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “2.4¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “2.4¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

8. Tariff item No. 2204.21.24 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “12.29¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “2.23¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “2.23¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

9. Tariff item No. 2204.21.25 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “13.28¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “2.06¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “2.06¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

10. Tariff item No. 2204.21.26 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “14.25¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “Less than 19.5% vol 1.88¢/litre; 19.5% vol or more Free (F)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “1.88¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

11. Tariff item No. 2204.21.27 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “15.24¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “Not more than 20.6% vol Free; 20.6% vol 6.1¢/litre (F)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “6.1¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

12. Tariff item No. 2204.21.28 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “16.22¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5.94¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “5.94¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

13. Tariff item No. 2204.21.31 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “17.20¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5.76¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “5.76¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

14. Tariff item No. 2204.21.32 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “17.20¢/litre (B)” with a reference to “Free (F)”.

15. Tariff item No. 2204.21.41 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “$1.10/litre plus 15% (A)” with a reference to “Free (F)”.

16. Tariff item No. 2204.21.49 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “$1.10/litre plus 15% (A)” with a reference to “Free (F)”.

17. Tariff item No. 2204.29.10 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.82¢/litre (B)” with a reference to “Free (F)”.

18. Tariff item No. 2204.29.21 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7.04¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “0.44¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “0.44¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

19. Tariff item No. 2204.29.22 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7.78¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “0.03¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “0.03¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

20. Tariff item No. 2204.29.23 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “8.52¢/litre (B)” with a reference to “Free (F)”.

21. Tariff item No. 2204.29.24 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “9.25¢/litre (B)” with a reference to “Free (F)”.

22. Tariff item No. 2204.29.25 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “10¢/litre (B)” with a reference to “Free (F)”.

23. Tariff item No. 2204.29.26 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “10.73¢/litre (B)” with a reference to “Free (F)”.

24. Tariff item No. 2204.29.27 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “11.48¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “Not more than 20.6% vol Free; more than 20.6% vol 2.36¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “2.36¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

25. Tariff item No. 2204.29.28 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “12.21¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “1.93¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “1.93¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

26. Tariff item No. 2204.29.31 is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “12.95¢/litre (B)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “1.52¢/litre (B)” following the reference to “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “1.52¢/litre (B)” following the reference to “NZT” with a reference to “Free (F)”.

27. Tariff item No. 2204.29.32 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “12.95¢/litre (B)” with a reference to “Free (F)”.

28. Tariff item No. 2204.29.41 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “$1.41/litre plus 19% (A)” with a reference to “Free (F)”.

29. Tariff item No. 2204.29.49 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “$1.41/litre plus 19% (A)” with a reference to “Free (F)”.

30. Tariff item No. 2204.30.10 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “$1.41/litre plus 19% (A)” with a reference to “Free (F)”.

31. Tariff item No. 2204.30.90 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “$1.41/litre plus 19% (A)” with a reference to “Free (F)”.

32. Tariff item No. 2205.10.10 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.11 ¢/litre (B)” with a reference to “Free (F)”.

33. Tariff item No. 2205.10.20 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “16% (B)” with a reference to “Free (F)”.

34. Tariff item No. 2205.10.30 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “16% (B)” with a reference to “Free (F)”.

35. Tariff item No. 2205.90.10 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.11 ¢/litre (B)” with a reference to “Free (F)”.

36. Tariff item No. 2205.90.20 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “16% (B)” with a reference to “Free (F)”.

37. Tariff item No. 2205.90.30 is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “16% (B)” with a reference to “Free (F)”.

PART 2
(Section 2)

AMENDMENTS TO THE LIST OF INTERMEDIATE
AND FINAL RATES FOR TARIFF ITEMS OF
THE “F” STAGING CATEGORY

1. Tariff item No. 2204.21.10 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to the following:

Effective on January 1, 2009.............2.62¢/litre

Effective on January 1, 2010.............1.87¢/litre

2. Tariff item No. 2204.21.21 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to the following:

Effective on January 1, 2009.............6.55¢/litre

Effective on January 1, 2010.............4.68¢/litre

3. Tariff item No. 2204.21.22 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

4. Tariff item No. 2204.21.23 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

5. Tariff item No. 2204.21.24 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

6. Tariff item No. 2204.21.25 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

7. Tariff item No. 2204.21.26 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

8. Tariff item No. 2204.21.27 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

9. Tariff item No. 2204.21.28 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

10. Tariff item No. 2204.21.31 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

11. Tariff item No. 2204.21.32 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

12. Tariff item No. 2204.29.10 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

13. Tariff item No. 2204.29.21 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

14. Tariff item No. 2204.29.22 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

15. Tariff item No. 2204.29.23 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

16. Tariff item No. 2204.29.24 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

17. Tariff item No. 2204.29.25 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

18. Tariff item No. 2204.29.26 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

19. Tariff item No. 2204.29.27 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

20. Tariff item No. 2204.29.28 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

21. Tariff item No. 2204.29.31 is amended by adding

(a) in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”;

(b) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....AUT: Free”; and

(c) in the column “Preferential Tariff”, a reference to “Effective on January 1, 2009.....NZT: Free”.

22. Tariff item No. 2204.29.32 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

23. Tariff item No. 2205.10.10 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

24. Tariff item No. 2205.10.20 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

25. Tariff item No. 2205.10.30 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

26. Tariff item No. 2205.90.10 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

27. Tariff item No. 2205.90.20 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

28. Tariff item No. 2205.90.30 is amended by adding in the column “Most-Favoured-Nation Tariff”, a reference to “Effective on January 1, 2009.....Free”.

PART 3
(Section 3)

ADDITION OF TARIFF ITEMS

Tariff Item	Most-Favoured-Nation Tariff	Preferential Tariff
2202.90.10	Effective on January 1, 2009	Free
2204.10.10	Effective on January 1, 2009	14.96¢/litre
	Effective on January 1, 2010	Free
2204.10.90	Effective on January 1, 2009	14.96¢/litre
	Effective on January 1, 2010	Free
2204.21.41	Effective on January 1, 2009	Free
2204.21.49	Effective on January 1, 2009	Free
2204.29.41	Effective on January 1, 2009	Free
2204.29.49	Effective on January 1, 2009	Free
2204.30.10	Effective on January 1, 2009	Free
2204.30.90	Effective on January 1, 2009	Free

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issue and objectives

As a result of formal World Trade Organization (WTO) consultations, Canada and the European Union (EU) have resolved, in a mutually satisfactory manner, an issue concerning certain taxation measures relating to the production of certain alcoholic beverages.

This Order implements tariff changes pursuant to the arrangement reached with the EU. As part of that arrangement, the EU will withdraw its WTO dispute settlement request, thus resolving an issue in the bilateral relations between Canada and the EU.

Description and rationale

This Order provides for the elimination of tariffs applicable on imported non-alcoholic beer, bulk wine, fortified wine and vermouths as of January 1, 2009. It also provides for the staged reduction of tariffs applicable on sparkling wine and on wine of less than 14.9% alcohol content in containers holding 2 litres or less. An Order made pursuant to section 14 of the Customs Tariff is the most appropriate and timely way to implement the tariff reductions.

Members of the WTO are invited to try and resolve issues through consultation. It is with this objective in mind that Canadian and European officials have come to a mutually satisfactory arrangement consisting of the withdrawal of the EU dispute settlement request and certain tariff reductions on wine and beer products imported into Canada.

The tariffs being reduced are generally low and some of the reductions are staged and/or partial. Moreover, the tariff reductions will lower costs, by an amount equivalent to the tariff revenues foregone by the government, for all Canadian importers of such products, including Canadian wine producers who blend their domestic products with imported bulk wine. Based on 2007 data, revenues foregone resulting from the tariff reductions implemented by this Order are estimated at $1.6 million for fiscal year 2008-09, $7.3 million for 2009-10 and $9.3 million annually thereafter.

Consultation

The Canadian Vintners Association and the Brewers Association of Canada have been regularly updated throughout the discussions and support the mutually satisfactory arrangement reached with the EU. Officials from the Department of Foreign Affairs and International Trade and Agriculture and Agri-Food Canada also support this arrangement.

Implementation, enforcement and service standards

The Canada Border Services Agency is responsible for the administration of and compliance with customs and tariff legislation and regulations. In the course of its administration of these tariff changes, the Agency will inform the importing community.

Contact

Charles Asselin
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: 613-992-5593

Footnote a
S.C. 2001, c. 28, s. 33

Footnote b
S.C. 1997, c. 36

Footnote 1
S.C. 1997, c. 36

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