Vol. 137, No. 1 — January 1, 2003

Registration
SOR/2003-19 23 December, 2002

CUSTOMS TARIFF

Regulations Amending the General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulations

P.C. 2002-2237 23 December, 2002

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 16(2)(a) of the Customs Tariff (see footnote a) , hereby makes the annexed Regulations Amending the General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulations.

REGULATIONS AMENDING THE GENERAL PREFERENTIAL TARIFF AND LEAST DEVELOPED COUNTRY TARIFF RULES OF ORIGIN REGULATIONS

AMENDMENTS

1. Subsections 2(2) to 4 of the General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulations (see footnote 1)  are replaced by the following:

(2) Goods originate in a beneficiary country if the value of the materials, parts or products originating outside that country, or in an undetermined location, and used in the manufacture or production of the goods is no more than 40% of the ex-factory price of the goods as packed for shipment to Canada.

(2.1) Goods other than goods of tariff item Nos. set out in Parts A1, B1, C1 and D of the schedule originate in a least developed country if the value of the materials, parts or products originating outside that country, or in an undetermined location, and used in the manufacture or production of the goods is no more than 60% of the ex-factory price of the goods as packed for shipment to Canada.

(2.2) Goods of tariff item Nos. set out in Parts A1 and A2 of the schedule originate in a least developed country if they are spun or extruded in a least developed country and do not undergo further processing outside a least developed country.

(2.3) Goods of tariff item Nos. set out in Parts B1 and B2 of the schedule originate in a least developed country if they are produced in a least developed country from yarns originating in a least developed country, a beneficiary country or Canada, provided

(a) the yarns do not undergo further processing outside a least developed country, a beneficiary country or Canada; and

(b) the fabrics do not undergo further processing outside a least developed country.

(2.4) Goods of tariff item Nos. set out in Parts C1 and C2 of the schedule originate in a least developed country if they are assembled in a least developed country from fabric cut in that country or in Canada, or from parts knit to shape, provided the fabric, or the parts knit to shape, are produced in

(a) any least developed country or Canada from yarns originating in a least developed country, a beneficiary country or Canada, provided the yarns or fabric do not undergo further processing outside a least developed country or Canada; or

(b) a beneficiary country from yarns originating in a least developed country, a beneficiary country or Canada, provided

(i) the yarns and fabric do not undergo further processing outside a least developed country, a beneficiary country or Canada, and

(ii) the value of any materials, including packing, that are used in the manufacture of the goods and that originate outside the least developed country in which the goods are assembled is no more than 75% of the ex-factory price of the goods as packed for shipment to Canada.

(2.5) For the purpose of subparagraph (2.4)(b)(ii), any materials used in the manufacture or production of the goods referred to in that subparagraph that originate from Canada are deemed to have originated in the least developed country.

(2.6) Goods of tariff item Nos. set out in Part D of the schedule originate in a least developed country if they are cut, or knit to shape, and sewn or otherwise assembled in the least developed country from fabric produced in any least developed country or Canada from yarns originating in a least developed country, a beneficiary country or Canada, provided the yarns and fabric do not undergo further processing outside a least developed country or Canada.

(3) For the purpose of subsection (2), the following are deemed to have originated in the beneficiary country:

(a) any materials, parts or products used in the manufacture or production of the goods referred to in that subsection and originating from any other beneficiary country or from Canada; and

(b) any packing required for the transportation for the goods referred to in that subsection, not including packing in which the goods are ordinarily sold for consumption in the beneficiary country.

(4) For the purpose of subsection (2.1), the following are deemed to have originated in the least developed country:

(a) any materials, parts or products used in the manufacture or production of the goods referred to in that subsection and that

(i) originate from any other least developed country or from Canada, or

(ii) have a value of up to 20% of the ex-factory price of the goods, as packed for shipment to Canada, from a beneficiary country other than a least developed country; and

(b) any packing required for the transportation of the goods referred to in that subsection, not including packing in which the goods are ordinarily sold for consumption in the least developed country.

2. The Regulations are amended by adding, after section 6, the schedule set out in the schedule to these Regulations.

COMING INTO FORCE

3. These Regulations come into force on January 1, 2003.

SCHEDULE (Section 2)

SCHEDULE (Section 2)

PART A1

YARNS AND SEWING THREADS

5204.11.90, 5204.19.00, 5204.20.00, 5205.11.90, 5205.12.90, 5205.13.90, 5205.14.90, 5205.15.90, 5205.21.90, 5205.22.90, 5205.23.90, 5205.24.90, 5205.26.90, 5205.27.90, 5205.28.90, 5205.31.90, 5205.32.90, 5205.33.90, 5205.34.90, 5205.35.90, 5205.41.90, 5205.42.90, 5205.43.90, 5205.44.90, 5205.46.90, 5205.47.90, 5205.48.90, 5206.11.00, 5206.12.00, 5206.13.00, 5206.14.00, 5206.14.90, 5206.15.00, 5206.15.90, 5206.21.00, 5206.22.00, 5206.23.00, 5206.24.00, 5206.24.90, 5206.25.00, 5206.25.90, 5206.31.00, 5206.32.00, 5206.33.00, 5206.34.00, 5206.35.00, 5206.41.00, 5206.42.00, 5206.43.00, 5206.44.00, 5206.45.00, 5207.10.00, 5207.90.00, 5306.20.20, 5401.10.00, 5402.62.90, 5406.10.00, 5508.10.00, 5509.21.90, 5509.22.90, 5509.31.00, 5509.32.90, 5509.41.90, 5509.42.00, 5509.52.90, 5509.53.00, 5509.53.20, 5509.53.30, 5509.53.40, 5509.53.90, 5509.61.00, 5509.62.00, 5509.69.00, 5509.91.00, 5509.92.00, 5509.99.00, 5510.20.90, 5511.10.00, 5511.20.00

PART A2

YARNS AND SEWING THREADS

5004.00.00, 5005.00.00, 5006.00.00, 5106.10.00, 5106.20.00, 5107.10.10, 5107.10.90, 5107.20.10, 5107.20.90, 5108.10.10, 5108.10.20, 5108.20.10, 5108.20.20, 5109.10.00, 5109.90.00, 5110.00.00, 5204.11.10, 5205.11.10, 5205.11.20, 5205.12.10, 5205.13.10, 5205.14.10, 5205.14.20, 5205.15.10, 5205.15.20, 5205.21.10, 5205.22.10, 5205.22.20, 5205.23.10, 5205.24.10, 5205.24.20, 5205.26.10, 5205.26.20, 5205.27.10, 5205.27.20, 5205.28.10, 5205.28.20, 5205.31.10, 5205.32.10, 5205.33.10, 5205.34.10, 5205.34.20, 5205.35.10, 5205.35.20, 5205.41.10, 5205.42.10, 5205.43.10, 5205.44.10, 5205.44.20, 5205.46.10, 5205.46.20, 5205.46.30, 5205.47.10, 5205.47.20, 5205.47.30, 5205.48.10, 5205.48.20, 5205.48.30, 5206.14.10, 5206.15.10, 5206.24.10, 5206.25.10, 5306.10.00, 5306.20.10, 5307.10.10, 5307.10.90, 5307.20.00, 5308.10.00, 5308.20.00, 5308.90.10, 5308.90.90, 5401.20.00, 5402.10.10, 5402.10.90, 5402.20.10, 5402.20.90, 5402.31.00, 5402.32.10, 5402.32.90, 5402.33.10, 5402.33.90, 5402.39.00, 5402.41.11, 5402.41.12, 5402.41.13, 5402.41.14, 5402.41.15, 5402.41.19, 5402.41.91, 5402.41.92, 5402.41.93, 5402.41.99, 5402.42.10, 5402.42.90, 5402.43.10, 5402.43.91, 5402.43.99, 5402.49.10, 5402.49.90, 5402.51.00, 5402.52.10, 5402.52.91, 5402.52.99, 5402.59.10, 5402.59.90, 5402.61.00, 5402.62.10, 5402.69.10, 5402.69.90, 5403.10.10, 5403.10.90, 5403.20.10, 5403.20.90, 5403.31.10, 5403.31.90, 5403.32.10, 5403.32.90, 5403.33.10, 5403.33.90, 5403.39.10, 5403.39.90, 5403.41.10, 5403.41.90, 5403.42.00, 5403.49.00, 5404.10.10, 5404.10.20, 5404.10.90, 5404.90.00, 5405.00.00, 5406.20.00, 5508.20.00, 5509.11.00, 5509.12.00, 5509.21.10, 5509.22.10, 5509.32.10, 5509.41.10, 5509.51.00, 5509.52.10, 5509.53.10, 5509.59.00, 5510.11.00, 5510.12.00, 5510.20.10, 5510.30.00, 5510.90.00, 5511.30.00

PART B1

FABRICS

5111.11.20, 5111.11.90, 5111.19.31, 5111.19.32, 5111.20.11, 5111.20.12, 5111.20.13, 5111.20.18, 5111.20.91, 5111.30.11, 5111.30.12, 5111.30.13, 5111.30.18, 5111.30.91, 5111.90.21, 5111.90.22, 5111.90.23, 5111.90.28, 5111.90.91, 5112.11.20, 5112.11.30, 5112.11.40, 5112.11.90, 5112.19.20, 5112.19.30, 5112.19.40, 5112.19.91, 5112.20.91, 5112.30.91, 5112.90.91, 5208.11.20, 5208.11.30, 5208.11.90, 5208.12.30, 5208.12.40, 5208.12.90, 5208.13.10, 5208.13.20, 5208.13.90, 5208.19.20, 5208.19.30, 5208.19.90, 5208.21.30, 5208.21.40, 5208.21.50, 5208.21.90, 5208.22.20, 5208.22.90, 5208.23.10, 5208.23.90, 5208.29.20, 5208.29.90, 5208.31.20, 5208.31.90, 5208.32.90, 5208.33.90, 5208.39.90, 5208.41.90, 5208.42.90, 5208.43.30, 5208.43.40, 5208.43.50, 5208.43.60, 5208.43.90, 5208.49.90, 5208.51.00, 5208.52.90, 5208.53.00, 5208.59.90, 5209.11.20, 5209.11.30, 5209.11.40, 5209.11.90, 5209.12.10, 5209.12.20, 5209.12.30, 5209.12.40, 5209.12.90, 5209.19.20, 5209.19.30, 5209.19.90, 5209.21.20, 5209.21.30, 5209.21.90, 5209.22.10, 5209.22.20, 5209.22.30, 5209.22.90, 5209.29.20, 5209.29.90, 5209.31.20, 5209.31.30, 5209.31.40, 5209.31.90, 5209.32.10, 5209.32.20, 5209.32.30, 5209.32.90, 5209.39.00, 5209.41.10, 5209.41.90, 5209.42.00, 5209.43.10, 5209.43.20, 5209.43.90, 5209.49.00, 5209.51.00, 5209.52.00, 5209.59.00, 5210.11.00, 5210.12.00, 5210.19.00, 5210.21.00, 5210.22.00, 5210.29.00, 5210.31.00, 5210.32.00, 5210.39.00, 5210.41.00, 5210.42.00, 5210.49.00, 5210.51.00, 5210.52.00, 5210.59.00, 5211.11.00, 5211.12.00, 5211.19.00, 5211.21.00, 5211.22.00, 5211.29.00, 5211.31.00, 5211.32.00, 5211.39.00, 5211.41.00, 5211.42.00, 5211.43.00, 5211.49.00, 5211.51.00, 5211.52.00, 5211.59.00, 5407.10.20, 5407.10.90, 5407.20.10, 5407.20.90, 5407.30.00, 5407.41.90, 5407.42.90, 5407.43.00, 5407.44.00, 5407.51.10, 5407.51.20, 5407.51.30, 5407.51.90, 5407.52.20, 5407.52.90, 5407.53.00, 5407.54.00, 5407.61.11, 5407.61.19, 5407.61.20, 5407.61.93, 5407.61.94, 5407.61.99, 5407.69.20, 5407.69.90, 5407.71.00, 5407.72.00, 5407.73.90, 5407.74.00, 5407.81.00, 5407.82.90, 5407.83.10, 5407.83.90, 5407.84.00, 5407.91.10, 5407.91.90, 5407.92.20, 5407.92.30, 5407.92.90, 5407.93.10, 5407.93.20, 5407.93.30, 5407.93.90, 5407.94.90, 5408.10.00, 5408.21.30, 5408.21.90, 5408.22.22, 5408.22.29, 5408.22.40, 5408.22.90, 5408.23.10, 5408.23.20, 5408.23.90, 5408.24.19, 5408.24.99, 5408.31.30, 5408.31.90, 5408.32.40, 5408.32.50, 5408.32.90, 5408.33.10, 5408.33.20, 5408.33.90, 5408.34.20, 5408.34.90, 5512.11.20, 5512.11.30, 5512.11.90, 5512.19.20, 5512.19.90, 5512.21.00, 5512.29.00, 5512.91.00, 5512.99.90, 5513.11.20, 5513.11.90, 5513.12.10, 5513.12.90, 5513.13.10, 5513.13.90, 5513.19.10, 5513.19.90, 5513.21.00, 5513.22.00, 5513.23.00, 5513.29.00, 5513.31.90, 5513.32.90, 5513.33.90, 5513.39.00, 5513.41.30, 5513.41.90, 5513.42.00, 5513.43.00, 5513.49.00, 5514.11.10, 5514.11.90, 5514.12.10, 5514.12.90, 5514.13.10, 5514.13.90, 5514.19.10, 5514.19.90, 5514.21.00, 5514.22.00, 5514.23.00, 5514.29.00, 5514.31.00, 5514.32.00, 5514.33.00, 5514.39.00, 5514.41.00, 5514.42.00, 5514.43.00, 5514.49.00, 5515.11.90, 5515.12.00, 5515.13.20, 5515.19.00, 5515.21.00, 5515.29.00, 5515.91.00, 5515.99.00, 5516.11.00, 5516.12.00, 5516.13.00, 5516.14.90, 5516.21.90, 5516.22.00, 5516.23.20, 5516.23.30, 5516.23.90, 5516.24.90, 5516.41.00, 5516.42.00, 5516.43.00, 5516.44.00, 5516.91.90, 5516.92.00, 5516.93.20, 5516.93.90, 5516.94.00, 5801.22.20, 5801.23.00, 5801.24.00, 5801.25.10, 5801.31.00, 5801.34.00, 5802.11.90, 5802.19.30, 5802.19.90, 5802.20.00, 5802.30.00, 5803.10.10, 5803.10.90, 5803.90.19, 5804.10.90, 5804.21.00, 5804.30.90, 5805.00.90, 5806.10.20, 5806.10.90, 5806.20.90, 5806.31.10, 5806.31.20, 5806.31.90, 5806.32.90, 5806.40.00, 5809.00.00, 5810.91.90, 5810.92.00, 5810.99.00, 5811.00.10, 5811.00.20, 5811.00.90, 5902.10.00, 5902.20.00, 5902.90.00, 5906.99.22, 5907.00.29, 5911.20.90, 6001.10.90, 6001.22.00, 6001.92.90, 6002.40.20, 6002.40.90, 6002.90.90, 6003.10.90, 6003.20.90, 6003.30.20, 6003.30.90, 6003.40.90, 6003.90.90, 6004.10.20, 6004.10.90, 6004.90.90, 6005.10.00, 6005.21.90, 6005.22.90, 6005.23.90, 6005.24.90, 6005.31.30, 6005.31.40, 6005.31.50, 6005.31.90, 6005.32.30, 6005.32.40, 6005.32.50, 6005.32.90, 6005.33.30, 6005.33.40, 6005.33.50, 6005.33.90, 6005.34.40, 6005.34.50, 6005.34.90, 6005.41.90, 6005.42.90, 6005.43.90, 6005.44.90, 6005.90.90, 6006.10.00, 6006.21.10, 6006.21.90, 6006.22.10, 6006.22.20, 6006.22.90, 6006.23.10, 6006.23.20, 6006.23.90, 6006.24.10, 6006.24.90, 6006.31.90, 6006.32.90, 6006.33.90, 6006.34.90, 6006.41.90, 6006.42.90, 6006.43.90, 6006.44.90, 6006.90.00

PART B2

FABRICS

5007.10.00, 5007.20.00, 5007.90.00, 5111.11.10, 5111.11.30, 5111.19.10, 5111.19.20, 5111.19.39, 5111.19.90, 5111.20.19, 5111.20.20, 5111.20.92, 5111.30.19, 5111.30.20, 5111.30.30, 5111.30.92, 5111.90.10, 5111.90.29, 5111.90.30, 5111.90.92, 5112.11.10, 5112.19.11, 5112.19.19, 5112.19.92, 5112.20.10, 5112.20.92, 5112.30.10, 5112.30.20, 5112.30.30, 5112.30.92, 5112.90.10, 5112.90.92, 5113.00.00, 5208.11.10, 5208.12.10, 5208.12.20, 5208.19.10, 5208.21.10, 5208.21.20, 5208.22.10, 5208.29.10, 5208.31.10, 5208.32.10, 5208.33.10, 5208.39.10, 5208.41.10, 5208.42.10, 5208.42.20, 5208.43.10, 5208.43.20, 5208.49.10, 5208.49.20, 5208.52.10, 5208.52.20, 5208.52.30, 5208.59.10, 5209.11.10, 5209.19.10, 5209.21.10, 5209.29.10, 5209.31.10, 5212.11.10, 5212.11.90, 5212.12.10, 5212.12.90, 5212.13.10, 5212.13.20, 5212.13.90, 5212.14.10, 5212.14.20, 5212.14.90, 5212.15.10, 5212.15.90, 5212.21.10, 5212.21.90, 5212.22.10, 5212.22.90, 5212.23.10, 5212.23.90, 5212.24.10, 5212.24.90, 5212.25.10, 5212.25.90, 5309.11.10, 5309.11.90, 5309.19.10, 5309.19.90, 5309.21.00, 5309.29.10, 5309.29.20, 5309.29.90, 5310.10.00, 5310.90.10, 5310.90.90, 5311.00.00, 5311.00.10, 5311.00.90, 5407.10.10, 5407.41.10, 5407.42.10, 5407.42.20, 5407.52.10, 5407.61.95, 5407.61.96, 5407.69.10, 5407.69.30, 5407.73.10, 5407.82.10, 5407.92.10, 5407.94.10, 5408.21.10, 5408.21.20, 5408.22.11, 5408.22.19, 5408.22.21, 5408.22.30, 5408.24.11, 5408.24.91, 5408.31.10, 5408.31.20, 5408.32.10, 5408.32.20, 5408.32.30, 5408.34.10, 5512.11.10, 5512.19.10, 5512.99.10, 5513.11.10, 5513.31.10, 5513.32.10, 5513.33.10, 5513.41.10, 5513.41.20, 5515.11.10, 5515.13.10, 5515.13.90, 5515.22.00, 5515.92.00, 5516.14.10, 5516.21.10, 5516.23.10, 5516.24.10, 5516.31.00, 5516.32.00, 5516.33.00, 5516.34.00, 5516.91.10, 5516.93.10, 5801.10.10, 5801.10.90, 5801.21.00, 5801.22.10, 5801.22.90, 5801.25.20, 5801.26.00, 5801.32.10, 5801.32.90, 5801.33.00, 5801.35.10, 5801.35.20, 5801.35.90, 5801.36.00, 5801.90.10, 5801.90.90, 5802.11.10, 5802.19.10, 5802.19.20, 5803.10.20, 5803.90.11, 5803.90.91, 5803.90.99, 5804.10.10, 5804.29.00, 5804.30.10, 5805.00.10, 5806.10.10, 5806.20.10, 5806.32.10, 5806.39.10, 5806.39.90, 5807.10.10, 5807.10.20, 5807.90.00, 5810.10.00, 5810.91.10, 5901.10.10, 5901.10.90, 5901.90.10, 5901.90.90, 5903.10.11, 5903.10.19, 5903.10.21, 5903.10.29, 5903.20.11, 5903.20.19, 5903.20.21, 5903.20.22, 5903.20.23, 5903.20.24, 5903.20.29, 5903.90.10, 5903.90.21, 5903.90.22, 5903.90.23, 5903.90.24, 5903.90.25, 5903.90.29, 5904.10.00, 5904.90.10, 5904.90.90, 5905.00.10, 5905.00.90, 5906.10.10, 5906.10.90, 5906.91.10, 5906.91.90, 5906.99.10, 5906.99.21, 5906.99.23, 5906.99.29, 5907.00.11, 5907.00.12, 5907.00.13, 5907.00.16, 5907.00.18, 5907.00.19, 5907.00.21, 5908.00.10, 5908.00.90, 5909.00.00, 5910.00.11, 5910.00.19, 5910.00.20, 5910.00.90, 5911.10.10, 5911.10.20, 5911.10.90, 5911.20.10, 5911.31.10, 5911.31.90, 5911.32.10, 5911.32.90, 5911.40.10, 5911.40.90, 5911.90.10, 5911.90.20, 5911.90.90, 6001.10.10, 6001.21.00, 6001.29.00, 6001.91.00, 6001.92.10, 6001.99.00, 6002.40.10, 6002.90.10, 6003.10.10, 6003.20.10, 6003.20.20, 6003.30.10, 6003.40.10, 6003.90.10, 6003.90.20, 6004.10.10, 6004.90.10, 6005.21.10, 6005.22.10, 6005.23.10, 6005.24.10, 6005.31.10, 6005.31.20, 6005.32.10, 6005.32.20, 6005.33.10, 6005.33.20, 6005.34.10, 6005.34.20, 6005.34.30, 6005.34.60, 6005.41.10, 6005.42.10, 6005.43.10, 6005.44.10, 6005.44.20, 6005.90.10, 6006.31.10, 6006.32.10, 6006.33.10, 6006.34.10, 6006.41.10, 6006.42.10, 6006.43.10, 6006.44.10

PART C1

APPAREL

6101.10.00, 6101.20.00, 6101.30.00, 6101.90.00, 6102.10.00, 6102.20.00, 6102.30.00, 6102.90.00, 6103.11.00, 6103.12.00, 6103.19.10, 6103.19.90, 6103.21.00, 6103.22.00, 6103.23.00, 6103.29.00, 6103.31.00, 6103.32.00, 6103.33.00, 6103.39.10, 6103.39.90, 6103.41.00, 6103.42.00, 6103.43.00, 6103.49.00, 6104.11.00, 6104.12.00, 6104.13.00, 6104.19.10, 6104.19.90, 6104.21.00, 6104.22.00, 6104.23.00, 6104.29.00, 6104.31.00, 6104.32.00, 6104.33.00, 6104.39.10, 6104.39.90, 6104.41.00, 6104.42.00, 6104.43.00, 6104.44.00, 6104.49.00, 6104.51.00, 6104.52.00, 6104.53.00, 6104.59.10, 6104.59.90, 6104.61.00, 6104.62.00, 6104.63.00, 6104.69.00, 6105.10.00, 6105.20.00, 6105.90.00, 6106.10.00, 6106.20.00, 6106.90.00, 6107.11.90, 6107.12.90, 6107.19.00, 6107.21.00, 6107.22.00, 6107.29.00, 6107.91.00, 6107.92.00, 6107.99.00, 6108.11.00, 6108.19.00, 6108.21.00, 6108.22.90, 6108.29.00, 6108.31.00, 6108.32.00, 6108.39.00, 6108.91.00, 6108.92.00, 6108.99.00, 6109.10.00, 6109.90.00, 6110.11.90, 6110.12.90, 6110.19.90, 6110.20.00, 6110.30.00, 6110.90.00, 6111.10.00, 6111.20.00, 6111.30.00, 6111.90.00, 6112.11.00, 6112.12.00, 6112.19.00, 6112.20.00, 6112.31.00, 6112.39.00, 6112.41.00, 6112.49.00, 6113.00.90, 6114.10.00, 6114.20.00, 6114.30.00, 6114.90.00, 6115.11.00, 6115.12.00, 6115.19.00, 6115.20.00, 6115.92.00, 6115.93.00, 6115.99.00, 6117.10.90, 6117.20.00, 6117.80.90, 6201.11.00, 6201.12.00, 6201.13.00, 6201.19.00, 6201.91.00, 6201.92.10, 6201.92.90, 6201.93.00, 6201.99.00, 6202.11.00, 6202.12.00, 6202.13.00, 6202.91.00, 6202.92.00, 6202.93.00, 6202.99.00, 6203.11.00, 6203.12.00, 6203.19.10, 6203.19.90, 6203.21.00, 6203.22.00, 6203.23.00, 6203.29.00, 6203.31.00, 6203.32.00, 6203.33.00, 6203.39.10, 6203.39.90, 6203.41.00, 6203.42.00, 6203.43.00, 6203.49.00, 6204.11.00, 6204.12.00, 6204.13.00, 6204.19.10, 6204.19.90, 6204.21.00, 6204.22.00, 6204.23.00, 6204.29.00, 6204.31.00, 6204.32.00, 6204.33.00, 6204.39.10, 6204.39.90, 6204.41.00, 6204.42.00, 6204.43.00, 6204.44.00, 6204.51.00, 6204.52.00, 6204.53.00, 6204.59.10, 6204.59.90, 6204.61.00, 6204.62.00, 6204.63.00, 6204.69.00, 6205.10.00, 6205.20.00, 6205.30.00, 6206.20.00, 6206.30.00, 6206.40.00, 6206.90.00, 6207.11.00, 6207.19.00, 6207.21.00, 6207.22.00, 6207.91.00, 6207.92.00, 6207.99.00, 6208.11.00, 6208.19.00, 6208.21.00, 6208.22.00, 6208.91.00, 6208.92.00, 6209.10.00, 6209.20.00, 6209.30.00, 6209.90.00, 6210.10.90, 6210.20.00, 6210.30.00, 6210.40.90, 6210.50.90, 6211.11.00, 6211.12.90, 6211.20.00, 6211.31.00, 6211.32.00, 6211.33.90, 6211.39.00, 6211.41.00, 6211.42.00, 6211.43.90, 6211.49.90, 6212.10.00, 6212.20.00, 6212.30.00, 6212.90.00, 6213.90.00, 6214.20.90, 6214.30.90, 6214.40.00, 6214.90.00, 6215.20.00, 6215.90.00, 6217.10.90, 6217.90.10, 6217.90.90

PART C2

APPAREL

6107.11.10, 6107.12.10, 6108.22.10, 6110.11.10, 6110.12.10, 6110.19.10, 6113.00.10, 6113.00.20, 6115.91.00, 6116.10.00, 6116.91.00, 6116.92.00, 6116.93.00, 6116.99.00, 6117.10.10, 6117.80.10, 6117.90.10, 6117.90.20, 6117.90.90, 6202.19.00, 6204.49.00, 6205.90.00, 6206.10.00, 6207.29.00, 6208.29.00, 6208.99.00, 6210.10.10, 6210.40.10, 6210.50.10, 6211.12.10, 6211.33.10, 6211.43.10, 6211.43.20, 6211.49.10, 6211.49.20, 6213.10.00, 6213.20.00, 6214.10.10, 6214.10.90, 6214.20.10, 6214.30.10, 6215.10.00, 6216.00.00, 6217.10.10

PART D

MADE-UP TEXTILE ARTICLES

6301.10.00, 6301.30.00, 6302.10.00, 6302.21.00, 6302.22.00, 6302.29.00, 6302.31.00, 6302.32.00, 6302.39.00, 6302.40.00, 6302.51.00, 6302.53.90, 6302.59.00, 6302.60.00, 6302.91.00, 6302.93.00, 6302.99.00, 6303.11.00, 6303.12.00, 6303.19.00, 6303.91.00, 6303.92.10, 6303.92.90, 6303.99.00, 6304.11.00, 6304.19.00, 6304.91.90, 6304.92.90, 6304.93.90, 6304.99.90, 6305.20.00, 6305.32.00, 6305.33.00, 6305.39.00, 6307.10.90, 6307.90.40, 6307.90.93, 6307.90.99, 6308.00.00, 6309.00.90

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order nor the Regulations.)

Description

The Order Amending the Schedule to the Customs Tariff (Least Developed Country Tariff) implements the duty-free portion of the Government of Canada's announcement made in June 2002, that it will extend, effective January 1, 2003, duty-free and quota-free access to imports from 48 of the world's least developed countries, with the exception of supply-managed products (dairy, poultry and eggs). The Department of Foreign Affairs and International Trade will implement separate measures with respect to quotas. Under the Least Developed Country Tariff (LDCT) treatment, LDCs already enjoy the benefit of duty-free for a wide range of goods. The Order extends duty-free rates to over 900 additional tariff items covering currently excluded products from the LDCT treatment such as most textiles, apparel and footwear, refined sugar and certain agricultural products.

The forty-eight (48) countries that are currently eligible to benefit from this tariff treatment and which are considered by the United Nations as the "least developed" of developing countries are:

Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Lesotho, Liberia, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Western Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, Sudan, United Republic of Tanzania, Togo, Tuvalu, Uganda, Vanuatu, Republic of Yemen and Zambia.

The Regulations Amending the General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulations implement rules of origin for the newly covered textile and apparel products from Least Developed Countries (LDCs) setting out the conditions to qualify for the preferential tariff treatment. Apparel must be cut and sewn in LDCT beneficiary countries from input formed in another LDCT beneficiary country or Canada to qualify for preferential treatment. Apparel made from input formed in a country benefiting from the General Preferential Tariff (GPT) is also eligible for preferential treatment provided the value added in the LDCT beneficiary country is at least 25% of the value of the good. For fabric to be eligible for preferential treatment, the fabric must be made from LDC, GPT country or Canadian produced yarns.

Alternatives

No alternative was considered. Section 38 of the Customs Tariff is the appropriate authority for the Governor in Council to extend the benefit of duty-free entry accorded under the LDCT to goods originating in a LDCT beneficiary country. Section 16 of the Customs Tariff is the authority for the Governor in Council to amend the rules of origin for the LDCT.

Benefits and Costs

The Government of Canada is implementing the market access initiative for Least Developed Countries because it believes that trade can help achieve sustained development in the world's poorest countries. The June 27, 2002 announcement of the initiative noted that trade can be a powerful engine of growth and poverty reduction in developing countries as it generates foreign exchange, attracts foreign investment, creates jobs and improves competitiveness.

It is expected that the initiative will have, on a national basis, a minimal impact on Canada given that Canada's imports from Least Developed Countries are small in comparison to Canada's imports of these products from other countries (4% of imports in the case of apparel and less than 0.5% in the case of textiles, the main product areas affected by these measures).

Given current trade patterns, the estimated amount of duty foregone is approximately $44 million annually.

Consultation

A notice to consult Canadians on the Government's initiative to provide duty and quota-free access to the Canadian market for products from Least Developed Countries was published in the Canada Gazette, on March 30, 2002. A Discussion Paper outlining the initiative was posted on the Department of Foreign Affairs and International Trade Web Site. Further consultations were held with interested parties between March and May of this year. The provinces, key industry sectors, non-governmental organizations and interested citizens voiced opinions on a range of issues including the need for improved market access and trade opportunities for the world's poorest nations, the implications for Canadian industry of removing duties and quotas on products from Least Developed Countries and, for textiles and clothing, the establishment of policies and regulatory frameworks for the verification of origin and the prevention of illegal transhipment. Following these consultations, the Government of Canada announced last June its decision to extend duty- and quota-free treatment to all products from Least Developed Countries with the exception of dairy, poultry and eggs, effective January 1, 2003, and outlined the applicable rules of origin for preferential treatment for textile and apparel products.

Compliance and Enforcement

The Canada Customs and Revenue Agency will administer the changes brought about by this Order and these Regulations in the context of the administration of customs and tariff legislation and regulations.

Contact

Sylvie Larose

International Trade Policy Division

Department of Finance

Ottawa, Ontario

K1A 0G5

Telephone: (613) 996-5887

Footnote a 

S.C. 1997, c. 36

Footnote 1 

SOR/98-34

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