Vol. 136, No. 16 — July 31, 2002

Registration
SOR/2002-257 17 July, 2002

CUSTOMS TARIFF

Order Amending the Schedule to the Customs Tariff, 2002-5

P.C. 2002-1238 17 July, 2002

Her 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) , hereby makes the annexed Order Amending the Schedule to the Customs Tariff, 2002-5.

ORDER AMENDING THE SCHEDULE TO THE CUSTOMS TARIFF, 2002-5

AMENDMENTS

1. Tariff item No. 9921.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff (see footnote 1)  is repealed.

2. The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provision 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 as set out in Part 2 of the schedule to this Order.

4. 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 3 of the schedule to this Order.

COMING INTO FORCE

5. (1) Subject to subsection (2), this Order comes into force on the day on which it is registered.

(2) Sections 1 and 2 are deemed to have come into force on June 17, 1999.

SCHEDULE

PART 1
(Section 2)

ADDITION OF TARIFF PROVISION

Tariff Item	Description of Goods	Most-Favoured- Nation Tariff		Preferential Tariff
		Initial Rate	Final Rate	Initial Rate	Final Rate
9995.00.00	Woven fabrics, unbleached or bleached, solely of single cotton yarns, measuring 70 decitex or more but not exceeding 150 decitex, having a sum of yarns per 10 cm in the warp and the weft of 500 or more, with an air permeability not exceeding 5.0 cm₃/cm₂-s-1 as determined by CAN/CGSB-4.2 No. 36-M89, for use in the manufacture of shells for duvets, featherbeds and pillows filled solely with "commercial landfowl feather", "commercial waterfowl feather", or "commercial down" or any combination thereof, as defined in the Textile Labelling and Advertising Regulations. Shells made solely of the above fabrics for use in the manufacture of duvets, featherbeds and pillows filled solely as described above.	Free	Free	UST: Free MT: Free MUST: N/A CT: Free CIAT: Free GPT: N/A LDCT: N/A CCCT: N/A AUT: N/A NZT: N/A	UST: Free (A) MT: Free (A) MUST: N/A CT: Free (A) CIAT: Free (A) GPT: N/A LDCT: N/A CCCT: N/A AUT: N/A NZT: N/A

PART 2
(Section 3)

AMENDMENTS TO THE LIST OF TARIFF PROVISIONS

1. The Description of Goods of tariff item No. 8461.50.11 is amended by replacing the reference to "of a round or square capacity exceeding 101.6 cm," with a reference to "of a round or square capacity not exceeding 101.6 cm,".

2. The Description of Goods of tariff item No. 8461.50.91 is amended by replacing the reference to "of a round or square capacity exceeding 101.6 cm," with a reference to "of a round or square capacity not exceeding 101.6 cm,".

3. The Description of Goods of tariff item No. 9995.00.00 is amended by replacing the reference to "having a sum of yarns per 10 cm in the warp and the weft of 500 or more," with a reference to "having a sum of yarns per 10 cm in the warp and the weft of 790 or more,".

PART 3
(Section 4)

ADDITION OF TARIFF PROVISION

Tariff Item	Description of Goods	Most-Favoured- Nation Tariff		Preferential Tariff
		Initial Rate	Final Rate	Initial Rate	Final Rate
9996.00.00	Woven fabrics, unbleached or bleached, solely of single cotton yarns, measuring 151 decitex or more but not exceeding 300 decitex, having a sum of yarns per 10 cm in the warp and the weft of 790 or more, with an air permeability not exceeding 5.0 cm3/cm2-s-1 as determined by CAN/CGSB-4.2 No. 36-M89, for use in the manufacture of shells for featherbeds and pillows filled solely with one of the following: (a) "commercial landfowl feather" or "commercial waterfowl feather", or any combination of the two, as defined in the Textile Labelling and Advertising Regulations; (b) 85% or more by weight of "commercial waterfowl feather" mixed solely with "commercial down", as defined in the Regulations; (c) 85% or more by weight of "commercial landfowl feather" mixed solely with "commercial down", as defined in the Regulations; or (d) 85% of more by weight of a combination of "commercial waterfowl feather" and "commercial landfowl feather" mixed solely with "commercial down", as defined in the Regulations. Shells made solely of the above fabrics for use in the manufacture of featherbeds and pillows filled solely as described above.	Free	Free	UST: Free MT: Free MUST: N/A CT: Free CIAT: Free GPT: N/A LDCT: N/A CCCT: N/A AUT: N/A NZT: N/A	UST: Free (A) MT: Free (A) MUST: N/A CT Free (A) CIAT: Free (A) GPT: N/A LDCT: N/A CCCT: N/A AUT: N/A NZT: N/A

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Order.)

Description

The Order Amending the Schedule to the Customs Tariff, 2002-5 would revoke tariff item No. 9921.00.00 and replace it with two new duty-free items (Nos. 9995.00.00 and 9996.00.00), which would remove the tariff on certain cotton fabrics and shells used to produce down- or feather-filled pillows, duvets and featherbeds. The first of the two new tariff items corrects errors in certain key technical parameters that were made when the item was first introduced on June 17, 1999. As a result of these rectifications, duty-free entry will now apply to certain goods while others will become dutiable. The second new tariff item expands the scope of tariff relief beyond that implemented in 1999.

The Order also restores a duty-free rate for horizontal band sawing machines of a round or square capacity exceeding 101.6 cm, which are not produced in Canada, retroactively to January 1, 1998, the date of the termination of the Machinery Program. At the same time, it will restore the duty on these machines of a round or square capacity not exceeding 101.6 cm, which are produced in Canada.

As a result of these amendments which restore a duty rate, importers who have goods "on order" and who would have previously received relief under the original tariff items will have to pay duties. The Woven Fabrics and Shells of Woven Fabrics Remission Order and the Band Sawing Machine Remission Order provide duty-free entry for such goods that were "on order" the day this Order takes effect.

Alternatives

No alternatives were considered as it has been a longstanding practice to use Order in Council authority to reduce or remove customs duties on goods used in the production of other goods. An Order made pursuant to section 82 of the Customs Tariff is the appropriate and timely method to assist Canadian manufacturers in competing more effectively in both the domestic and export markets and to make the corrections noted above.

Benefits and Costs

This Order is consistent with existing policy and it is estimated that the revenue foregone to the Government as a result of this Order would be $55,000 annually.

Consultation

Detailed consultations were undertaken with all interested parties that were foreseen to be affected by the proposed tariff reductions.

Compliance and Enforcement

As this is a tariff relief measure, compliance is not an issue. The Canada Customs and Revenue Agency will administer the provisions of this Order in the normal course of its administration of customs and tariff-related legislation.

Contact

Deborah Hoeg
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: (613) 996-7099

Footnote a 

S.C. 1997, c. 36

Footnote 1 

S.C. 1997, c. 36

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