Order Amending the Import Control List: SOR/2020-146
Canada Gazette, Part II, Volume 154, Number 14
SOR/2020-146 June 26, 2020
EXPORT AND IMPORT PERMITS ACT
P.C. 2020-491 June 25, 2020
Whereas the Governor in Council deems it necessary to control the importation of certain goods to implement an intergovernmental arrangement or commitment;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to paragraph 5(1)(e) and section 6 footnote a of the Export and Import Permits Act footnote b, makes the annexed Order Amending the Import Control List.
Order Amending the Import Control List
1 The definition apparel goods in subsection 85(2) of the Import Control List footnote 1 is replaced by the following:
- apparel goods means the following goods in the List of Tariff Provisions set out in the schedule to the Customs Tariff:
- (a) goods provided for in Chapters 61 and 62; and
- (b) goods classified under heading 96.19 that are of textile material other than wadding. (vêtements)
Coming into Force
2 This Order comes into force on the day on which section 40 of the Canada–United States–Mexico Agreement Implementation Act, chapter 1 of the Statutes of Canada, 2020, comes into force, but if it is registered after that day, it comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order or the Regulations.)
The Canada–United States–Mexico Agreement (CUSMA), which replaces the North American Free Trade Agreement (NAFTA) and entered into force on July 1, 2020, provides important outcomes in key areas, including market access, rules of origin for automotive manufacturing, agriculture, labour, environment, intellectual property rights, culture, and dispute settlement. CUSMA is expected to strengthen the trilateral commercial relationship and provide much-needed stability and predictability for Canadian businesses and workers.
The World Customs Organization’s Harmonized System is the standard coding structure and related product descriptions used in international trade. It is replicated in Canada’s Customs Tariff. A 2012 change of tariff headings in the Harmonized System for certain apparel goods covered under NAFTA Tariff Preference Level (TPL) provisions resulted in these goods being inadvertently omitted during CUSMA negotiations. As a result, certain TPL apparel goods covered under NAFTA were not included in CUSMA. As part of a corrections process for CUSMA, Canada, the United States and Mexico have agreed to maintain preferential tariff treatment for these goods and add the goods to the CUSMA text.
Ensure continued access to TPL preferential tariff treatment for certain apparel goods.
Description and rationale
The Import Control List and the Issuance of Certificates Regulations are amended so that the definition of “apparel goods” includes goods of chapter 96.19 of the Customs Tariff (i.e. baby napkins, liners and similar products) for the purpose of ensuring TPL preferential access, as provided under CUSMA.
The Government of Canada consulted regularly through the CUSMA negotiations with provincial and territorial governments and stakeholder groups. As the above-mentioned regulatory amendments are consequential to CUSMA, further consultation and prepublication were not necessary. These amendments are intended to maintain the TPL access provided under NAFTA.
The amendments maintain the TPL access provided under NAFTA and there are no costs associated with extending the benefits to the CUSMA framework.
Small business lens
Analysis under the small business lens determined that the amendments will not impact small businesses in Canada.
The one-for-one rule does not apply as there is no incremental change in the administrative burden on businesses.
Regulatory cooperation and alignment
While these amendments implement a non-discretionary obligation that Canada agreed to within the context of a binding international agreement, these are not related to a work plan or commitment under a formal regulatory cooperation forum.
Global Affairs Canada’s Trade and Export Controls Bureau is responsible for issuing permits and will lead on the implementation of these amendments. Information concerning any changes arising from these amendments will be made publicly available to both importers and exporters via publication on the Global Affairs Canada website prior to CUSMA’s entry into force. Information related to imports will also be included in a Canada Border Services Agency D memorandum, which will be made available on the CBSA website with a link to the Global Affairs Canada website.
Non-Supply Managed Trade Controls Division
Global Affairs Canada
111 Sussex Drive