Vol. 150, No. 13 — June 29, 2016
Registration
SOR/2016-125 June 13, 2016
CUSTOMS TARIFF
Order Amending the Schedule to the Customs Tariff, 2016–1
P.C. 2016-465 June 10, 2016
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 82 of the Customs Tariff (see footnote a), makes the annexed Order Amending the Schedule to the Customs Tariff, 2016–1.
Order Amending the Schedule to the Customs Tariff, 2016–1
Amendments
- 1 Tariff item Nos. 7612.90.90, 8201.10.00 and 8201.90.90 in the List of Tariff Provisions set out in the schedule to the Customs Tariff (see footnote 1) are repealed.
- 2 The List of Tariff Provisions set out in the schedule to the Act is amended as set out in Part 1 of the schedule to this Order.
- 3 The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Part 2 of the schedule to this Order.
- 4 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
5 This Order comes into force on the day on which it is registered.
SCHEDULE
PART 1
(Section 2)
Amendments to the List of Tariff Provisions
- 1 The Description of Goods of tariff item No. 4417.00.10 is amended by adding, in alphabetical order, a reference to “Handles for brushes, brooms or mops;”.
- 2 The Description of Goods of tariff item No. 8201.30.10 is amended by adding, in alphabetical order, a reference to “Heads for use in the manufacture or production of mattocks, picks, hoes or rakes;”.
- 3 The Description of Goods of tariff item No. 8201.40.10 is amended by
- (a) adding a semicolon after the reference to “mountaineering”; and
- (b) adding, in alphabetical order, a reference to “Heads for use in the manufacture or production of axes, bill hooks and similar hewing tools ”.
- 4 The Description of Goods of tariff item No. 8205.20.10 is amended by
- (a) adding a semicolon after the reference to “mountaineering”; and
- (b) adding, in alphabetical order, a reference to “Heads for use in the manufacture or production of hammers and sledge hammers”.
- 5 The Description of Goods of tariff item No. 8205.59.10 is amended by adding, in alphabetical order, a reference to “Heads for use in the manufacture or production of other hand tools; ”.
- 6 The Description of Goods of tariff item No. 8507.20.10 is amended by replacing the reference to “For use in the manufacture of smoke, fire or gas detection and alarm systems” with a reference to “For use in the initial installation of smoke, fire or gas detection and alarm systems manufactured in Canada”.
PART 2
(Section 3)
Additions to the List of Tariff Provisions
| Most-Favoured-Nation Tariff |
Preferential Tariff |
||||
|---|---|---|---|---|---|
| Tariff Item |
Description of Goods |
Initial Rate |
Final Rate |
Initial Rate |
Final Rate |
---Other: |
|||||
7612.90.91 |
----Embossed aluminum cans for use in the packaging of beverages |
Free |
Free (A) |
UST: Free MT: Free MUST: Free CT: Free CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free PT: Free COLT: Free PAT: Free HNT: Free KRT: Free GPT: Free LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (A) GPT: Free (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
7612.90.99 |
----Other |
6.5% |
6.5% (A) |
UST: Free MT: Free MUST: Free CT: Free CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free PT: Free COLT: Free PAT: Free HNT: Free KRT: 3.5% GPT: 5% LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (F) GPT: 5% (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
8201.10 |
-Spades and shovels |
||||
8201.10.10 |
---Heads for use in the manufacture or production of spades and shovels |
Free |
Free (A) |
UST: Free MT: Free MUST: Free CT: Free |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) |
CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free PT: Free COLT: Free PAT: Free HNT: Free KRT: Free GPT: Free LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (A) GPT: Free (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
||||
8201.10.90 |
---Other |
5% |
5% (A) |
UST: Free MT: Free MUST: Free CT: Free CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free PT: Free COLT: Free PAT: Free HNT: Free KRT: Free GPT: 3% LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (A) GPT: 3% (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
---Other: |
|||||
8201.90.91 |
----Heads for use in the manufacture or production of other hand tools of a kind used in agriculture, horticulture or forestry |
Free |
Free (A) |
UST: Free MT: Free MUST: Free CT: Free CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) |
PT: Free COLT: Free PAT: Free HNT: Free KRT: Free GPT: Free LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (A) GPT: Free (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
||||
8201.90.99 |
----Other |
6.5% |
6.5% (A) |
UST: Free MT: Free MUST: Free CT: Free CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free PT: Free COLT: Free PAT: Free HNT: Free KRT: 2% GPT: 5% LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (F) GPT: 5% (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
8507.60.20 |
---For use as the primary source of electrical power for electrically-powered motorcycles of subheading 8711.90 |
Free |
Free (A) |
UST: Free MT: Free MUST: Free CT: Free CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free PT: Free COLT: Free PAT: Free HNT: Free KRT: Free GPT: Free LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (A) GPT: Free (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
9001.40.40 |
---Other, unfinished |
Free |
Free (A) |
UST: Free MT: Free MUST: Free CT: Free CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free PT: Free COLT: Free PAT: Free HNT: Free KRT: Free GPT: Free LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (A) GPT: Free (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
9001.50.40 |
---Other, unfinished |
Free |
Free (A) |
UST: Free MT: Free MUST: Free CT: Free CIAT: Free CRT: Free IT: Free NT: Free SLT: Free JT: Free PT: Free COLT: Free PAT: Free HNT: Free KRT: Free GPT: Free LDCT: Free CCCT: Free AUT: N/A NZT: N/A |
UST: Free (A) MT: Free (A) MUST: Free (A) CT: Free (A) CIAT: Free (A) CRT: Free (A) IT: Free (A) NT: Free (A) SLT: Free (A) JT: Free (A) PT: Free (A) COLT: Free (A) PAT: Free (A) HNT: Free (A) KRT: Free (A) GPT: Free (A) LDCT: Free (A) CCCT: Free (A) AUT: N/A NZT: N/A |
PART 3
(Section 4)
Addition of Tariff Items
| Tariff Item |
Most-Favoured-Nation Tariff |
Preferential Tariff |
|
|---|---|---|---|
7612.90.99 |
Effective on January 1, 2017 |
KRT: 2.5% |
|
Effective on January 1, 2018 |
KRT: Free |
||
8201.90.99 |
Effective on January 1, 2017 |
KRT: Free |
|
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
The Order Amending the Schedule to the Customs Tariff, 2016–1 eliminates customs duties on a number of goods used in the production of other goods (manufacturing inputs). Reducing tariffs on manufacturing inputs helps lower production costs for Canadian businesses and enhances their overall competitiveness.
Background
The Government of Canada regularly receives requests for duty relief, including as it pertains to manufacturing inputs, from Canadian companies. Any company can ask for duty relief on any manufacturing input. These companies seek tariff relief to lower their costs and enhance their competitiveness, at home and abroad.
The Government of Canada has had a longstanding framework for considering the removal of tariffs on goods used in the production of other goods, in order to enhance the competitiveness of Canadian manufacturers. Tariff relief through this Order is made pursuant to section 82 of the Customs Tariff. This section provides authority to amend the schedule to the Customs Tariff to give tariff relief for “goods used in the production of other goods.”
This tariff relief Order reduces to “Free” the Most-Favoured-Nation (MFN) rate of customs duty for the products listed in the Order. The Order would also consequentially eliminate any other tariff on these goods that is not at a rate of “Free” (e.g. in the case of aluminum cans contained in this Order, the General Preferential Tariff for goods that originate in developing countries). This ensures that preferential tariffs are not higher than the MFN tariff, consistent with section 25 of the Customs Tariff.
Objective
The objective of this Order is to reduce tariffs on manufacturing inputs to help Canadian manufacturers.
Description
As a result of industry-specific requests for tariff relief, the Order eliminates customs duties on the following products used in manufacturing:
- Handles for brushes, brooms and mops (tariff item 4417.00.10);
- Embossed aluminum cans for use in the packaging of beverages (tariff item 7612.90.91);
- Metal heads used in the manufacture or production of various garden and household hand tools (tariff items 8201.10.10, 8201.90.91, 8201.30.10, 8201.40.10, 8205.20.10, 8205.59.10);
- Electric accumulators used as a primary source of electric power for electric motorcycles (tariff item 8507.60.20); and
- Unfinished spectacle lenses (tariff items 9001.40.40, 9001.50.40).
Additionally, the Order would clarify the wording of a tariff item (8507.20.10) amended by a similar order approved by the Governor in Council on June 12, 2014. Among other things, that order eliminated customs duties on certain lead-acid batteries used in the production of smoke, fire or gas detection and alarm systems, including power supply panels and modules. The existing wording requires that these batteries be “used in the manufacture of ” the systems. This wording would now be revised to “used in the initial installation of” the systems. The revised wording better reflects the production process of these goods — specifically, that the lead-acid batteries are only integrated into the systems at the building site, and not in the manufacturing plant, since they require special handling during transport.
“One-for-One” Rule
The “One-for-One” Rule does not apply to this Order, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to this Order, as there are no costs imposed on small business.
Consultation
Extensive consultations were undertaken with industry representatives, and implicated industry associations, on each product included in this Order. All stakeholder views have been considered in the development of this amendment, and there was no opposition to having the tariffs eliminated.
Rationale
The tariff elimination in this Order is consistent with the Government’s longstanding policy of providing tariff relief to support manufacturing competitiveness. It also follows broad-based measures announced in Budget 2009 and Budget 2010 to eliminate tariffs on manufacturing inputs, machinery and equipment to assist Canada’s manufacturers.
Based on recent trade patterns, the estimated annual duties foregone by the Government would be approximately $1.8 million. These foregone duties represent corresponding savings for Canadian industry on inputs used in their production processes.
Implementation, enforcement and service standards
The Canada Border Services Agency (CBSA) is responsible for the administration of, and compliance with, customs and tariff legislation and regulations. In the course of its administration of these tariff amendments, the CBSA will inform the importing community.
Contact
Diane Kelloway
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Telephone: 613-369-4038
- Footnote a
S.C. 1997, c. 36 - Footnote 1
S.C. 1997, c. 36