Vol. 145, No. 21 — October 12, 2011

Registration

SOR/2011-215 September 30, 2011

CUSTOMS TARIFF

Fruit Remission Order, 2011

P.C. 2011-1120 September 29, 2011

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 115 (see footnote a) of the Customs Tariff (see footnote b), hereby makes the annexed Fruit Remission Order, 2011.

FRUIT REMISSION ORDER, 2011

REMISSION

1. Remission is granted of the customs duties paid or payable under the Customs Tariff by or on behalf of the company listed in column 1 of the schedule up to the amount listed in column 4, in respect of the product listed in column 2, if the product was imported for processing during the year listed in column 3.

CONDITION

2. The remission is granted on the condition that a claim for remission is made to the Minister of Public Safety and Emergency Preparedness no later than September 30, 2013.

COMING INTO FORCE

3. This Order comes into force on the day on which it is registered.

SCHEDULE
(Section 1)

Item

Column 1
Company

Column 2
Product

Column 3
Year

Column 4
Amount ($)

1.

Cangro Foods Inc.

Canned Peaches

2007

44,491.82

Canned Peaches

2008

61,889.93

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issue and objectives

Cangro Foods Inc., now known as Del Monte Canada Inc., a grower, processor and canner of fruits and vegetables, has requested the remission of customs duties on 2007 and 2008 imports of peaches from South Africa and Greece due to domestic crop conditions that limited the availability of these fruits for further processing. Cangro Foods Inc. sourced all available fresh peaches in 2007 and 2008 from domestic growers but was unable to purchase sufficient volumes needed to meet its requirements. Cangro Foods Inc. had to import canned peaches which were then remanufactured into fruit cocktail and packaged at its Canadian facility.

Description and rationale

Due primarily to weather-related occurrences, Canadian food companies occasionally experience shortages of domestically grown fruits. In these cases, the government has routinely remitted customs duties on horticultural products imported for further processing provided such requests are supported by Canadian fruit growers. By offsetting the additional costs of these duties, remission of duties assists Cangro Foods Inc. in maintaining its market share and production capacity and in continuing to employ local labour at its Canadian plant in times of domestic shortages. Similar remissions of duty have been routinely provided since the 1970s.

This Order remits $106,381.75 in customs duties paid by Cangro Foods Inc. on its imports of canned peaches in 2007 and 2008.

Consultation

The Canadian Horticultural Council, the Food Processors of Canada, the Ontario Tender Fruit Producers’ Marketing Board and the Department of Agriculture and Agri-Food Canada support the proposed remission of duties.

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. The Agency will administer the provisions of this Order in the normal course of its administration of customs and tariff-related legislation.

Contact

Paul Robichaud
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: 613-992-2510

Footnote a
S.C. 2005, c. 38, par. 145(2)(j)

Footnote b
S.C. 1997, c. 36