Vol. 132, No. 23 — November 11, 1998

Registration
SOR/98-542 29 October, 1998

CUSTOMS TARIFF

Order Amending the Customs Tariff for the Purpose of Eliminating the Customs Duties for Certain Goods Originating in Chile, 1998

P.C. 1998-1922 29 October, 1998

Whereas paragraph X in the Tariff Schedule of Canada referred to in Annex C-02.2 of the Canada - Chile Free Trade Agreement, entitled "Tariff Elimination - Staging Category Descriptions", provides that the rate on a good provided for in a tariff item will be reduced to Free on condition that such good has been removed from the list of products eligible for "simplified duty drawback";

And whereas the Ministry of External Relations of the Republic of Chile has advised the Government of Canada of the list of goods excluded from the drawback provisions approved by the Comptroller General of the Republic of Chile;

Therefore, His Excellency the Governor General in Council, for the purpose of responding to the exclusion of those goods from the drawback provisions, on the recommendation of the Minister of Finance, pursuant to subsection 47 (1) of the Customs Tariff (see footnote a), hereby makes the annexed Order Amending the Customs Tariff for the Purpose of Eliminating the Customs Duties for Certain Goods Originating in Chile, 1998.

ORDER AMENDING THE CUSTOMS TARIFF FOR THE PURPOSE OF ELIMINATING THE CUSTOMS DUTIES FOR CERTAIN GOODS ORIGINATING IN CHILE, 1998

AMENDMENTS

1. The List of Tariff Provisions set out in the schedule to the Customs Tariff (see footnote b) 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 by adding, in numerical order, the tariff items set out in Part 2 of the schedule to this Order.

COMING INTO FORCE

3. This Order comes into force on October 30, 1998.

SCHEDULE

PART 1
(Section 1)

AMENDMENTS TO THE LIST OF TARIFF PROVISIONS

1. Tariff item No. 0809.20.10 is amended by replacing, in the column "Preferential Tariff / Final Rate", the reference to "Free (L)" following the abbreviation "CT" with a reference to "Free (F)".

2.Tariff item No. 0809.20.21 is amended by replacing, in the column "Preferential Tariff / Final Rate", the reference to "Free (L)" following the abbreviation "CT" with a reference to "Free (F)".

3. Tariff item No. 0809.20.31 is amended by replacing, in the column "Preferential Tariff / Final Rate", the reference to "Free (L)" following the abbreviation "CT" with a reference to "Free (F)".

4. Tariff item No. 0809.20.90 is amended by replacing, in the column "Preferential Tariff / Final Rate", the reference to "Free (L)" following the abbreviation "CT" with a reference to "Free (F)".

5.Tariff item No. 2009.80.20 is amended by replacing, in the column "Preferential Tariff / Final Rate", the reference to "Free (L)" following the abbreviation "CT" with a reference to "Free (F)".

6. Tariff item No. 2106.90.29 is amended by replacing, in the column "Preferential Tariff / Final Rate", the reference to "Free (L)" following the abbreviation "CT" with a reference to "Free (F)".

PART 2
(Section 2)

ADDITION OF TARIFF ITEMS

Tariff Item	Most-Favoured-Nation Tariff	Preferential Tariff
0809.20.10		Effective on October 30, 1998	CT: Free
0809.20.21		Effective on October 30, 1998	CT: Free
0809.20.31		Effective on October 30, 1998	CT: Free
0809.20.90		Effective on October 30, 1998	CT: Free
2009.80.20		Effective on October 30, 1998	CT: Free
2106.90.29		Effective on October 30, 1998	CT: Free

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Order.)

Description

The Canada-Chile Free Trade Agreement (CCFTA) came into effect on July 5, 1997, and provides for either the immediate or progressive elimination of customs duties on most originating goods traded between the two parties. Under the Agreement, Canada committed to implementing a reduced tariff rate prior to January 1, 2003, on certain Chilean products only if Chile eliminated its "simplified duty drawback" scheme, a form of export subsidy for these products or on confirmation that the goods were no longer eligible for "simplified duty drawback". The Chilean "simplified duty drawback" scheme will cease to exist on January 1, 2003.

The Government of Chile has advised Canada that the "simplified duty drawback" no longer applies to Chilean fresh cherries, vegetable juices, and certain preparations for use in the manufacture of beverages. Accordingly, this Order will implement a Free rate of duty for imports from Chile for these commodities.

Alternatives

An Order pursuant to subsection 47(1) of the Customs Tariff which allows for amending the rate of customs duty for goods entitled to the Chile Tariff is the appropriate method of implementing tariff elimination in this instance.

Benefits and Costs

This measure implements an obligation under the CCFTA. Trade data indicate that over the last few years Chile has not exported these commodities to Canada.

Consultation

The Government consulted widely with all stakeholders, including Canadian industry associations and individual companies during the negotiation of the CCFTA. A number of consultations were also held with the Sectoral Advisory Groups on International Trade, as well as with the provinces and other interested parties.

Compliance and Enforcement

Revenue Canada will ensure the proper administration of the Customs Tariff.

Contact

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

Footnote a

S.C. 1997, c. 36

Footnote b

S.C. 1997, c. 36

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