Regulations Amending Certain Regulations Made Under the Customs Tariff (Miscellaneous Program): SOR/2020-64
Canada Gazette, Part II, Volume 154, Number 9
Registration
SOR/2020-64 April 7, 2020
CUSTOMS TARIFF
P.C. 2020-217 April 3, 2020
Her Excellency the Governor General in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness, pursuant to sections 99 footnote a and 133 footnote b of the Customs Tariff footnote c, makes the annexed Regulations Amending Certain Regulations Made Under the Customs Tariff (Miscellaneous Program).
Regulations Amending Certain Regulations Made Under the Customs Tariff (Miscellaneous Program)
Goods Imported and Exported Refund and Drawback Regulations
1 Paragraphs 8(a) to (c) of the Goods Imported and Exported Refund and Drawback Regulations footnote 1 are replaced by the following:
- (a) are purchased by the government of a country that is party to the Canada–United States–Mexico Agreement or its authorized agent, by a department of the Government of Canada, or by a Crown corporation acting on behalf of the Government of Canada;
- (b) are for use solely and exclusively in conjunction with
- (i) a project undertaken jointly by the Government of Canada and the government of a country that is party to the Canada–United States–Mexico Agreement, or
- (ii) an undertaking, located in Canada, of the government of a country that is party to the Canada–United States–Mexico Agreement; and
- (c) are or will become the property of the government of a country that is party to the Canada–United States–Mexico Agreement.
2 Paragraph 12(a) of the Regulations is replaced by the following:
- (a) undergo any of the processes referred to in subparagraph (6)(b) of Article 2.5 of the Canada–United States–Mexico Agreement, if those processes do not materially alter the characteristics of the goods;
Duties Relief Regulations
3 Paragraph 9(a) of the Duties Relief Regulations footnote 2 is replaced by the following:
- (a) undergo any of the processes referred to in subparagraph (6)(b) of Article 2.5 of the Canada–United States–Mexico Agreement, if those processes do not materially alter the characteristics of the goods;
4 Paragraphs 13(a) to (c) of the Regulations are replaced by the following:
- (a) are purchased by the government of a country that is party to the Canada–United States–Mexico Agreement or its authorized agent, by a department of the Government of Canada, or by a Crown corporation named in Schedule II or Schedule III to the Financial Administration Act acting on behalf of the Government of Canada;
- (b) are for use solely and exclusively in conjunction with
- (i) a project undertaken jointly by the Government of Canada and the government of a country that is party to the Canada–United States–Mexico Agreement, or
- (ii) an undertaking, located in Canada, of the government of a country that is party to the Canada–United States–Mexico Agreement; and
- (c) are or will become the property of the government of a country that is party to the Canada–United States–Mexico Agreement.
5 The heading before section 19 of the Regulations is replaced by the following:
Manner of Reporting Exports to a Country that is Party to the Canada–United States–Mexico Agreement
Temporary Importation (Tariff Item No. 9993.00.00) Regulations
6 The definition originating good in section 1 of the Temporary Importation (Tariff Item No. 9993.00.00) Regulations footnote 3 is replaced by the following:
- originating good means a good that qualifies as originating under the CUSMA Rules of Origin Regulations, the CCFTA Rules of Origin Regulations or the CCRFTA Rules of Origin Regulations. (marchandise originaire)
Coming into Force
7 These Regulations come into force on the day on which section 183 of the Canada–United States–Mexico Agreement Implementation Act, chapter 1 of the Statutes of Canada, 2020, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
On September 30, 2018, Canada, the United States and Mexico announced the completion of negotiations toward a revised North American Free Trade Agreement (NAFTA). Following more than a year of negotiations, the three countries reached important outcomes in key areas, including market access, rules of origin for automotive manufacturing, agriculture, labour, environment, intellectual property rights, culture, and dispute settlement. This outcome is expected to strengthen the trilateral commercial relationship and provide much-needed stability and predictability for Canadian businesses and workers. Canada-United States-Mexico Agreement (CUSMA) was signed by all Parties at Buenos Aires on November 30, 2018. An Act to implement the Agreement between Canada, the United States of America and the United Mexican States received royal assent on March 13, 2020. Consequential technical amendments are required to update certain regulations made under the Customs Tariff.
These regulations are
- 1. the Duties Relief Regulations which prescribe the conditions for which the payment of duties can be relieved at the time of importation on imported goods that will eventually be exported in the same condition or after being consumed, expended or used in the processing of other goods;
- 2. the Goods Imported and Exported Refund and Drawback Regulations which prescribe the conditions for which a drawback or a refund of duties can be requested; and
- 3. the Temporary Importation (Tariff Item 9993.00.00) Regulations set out extensions of time to export the goods, prescribe the circumstances under which the goods would have to be consumed or expended in order to qualify under tariff item 9993.00.00 even though not exported, and prescribe circumstances in which, and in what form, security must be provided.
Objective
Technical amendments modifying these regulations are required to support the seamless transition from the NAFTA to CUSMA and to ensure stakeholders will have current and clear regulations in place at the time of implementation of CUSMA.
Description and rationale
Duties Relief Regulations (SOR/96-44)
Technical amendments to these regulations modify references to “NAFTA” and “NAFTA Uniform Regulations” and replace them with “CUSMA” and “CUSMA Uniform Regulations” respectively. Further, “NAFTA country” is also amended to reflect the new agreement, as well as cross references.
Goods Imported and Exported Refund and Drawback Regulations (SOR/96-42)
Technical amendments to these regulations reflect the new agreement, such as references to “a NAFTA country” are replaced with references to “either the United States or Mexico…”, “government of a country that is a party to the CUSMA”, “United States or Mexico” or “a country that is a party to the CUSMA”. As well, as a reference to Article 303(6)(b) of NAFTA is replaced with a reference to the similar Article 2.5(6)(b) of the CUSMA.
Temporary Importation (Tariff Item No. 9993.00.00) Regulations (SOR/98-58)
The Section 1 definition of “originating good” is amended to replace reference to the “NAFTA Rules of Origin Regulations” with reference to the “CUSMA Rules of Origin Regulations”.
One-for-one rule and small business lens
The one-for-one rule does not apply to these amendments, as there is no change in administrative costs or burden to businesses.
The small business lens does not apply to these amendments, as there are no costs to small businesses.
Contact
Bradley Jablonski
Manager
Trade Incentives Unit
Trade and Anti-Dumping Programs Directorate
Canada Border Services Agency
Email: Bradley.Jablonski@cbsa-asfc.gc.ca