Order Repealing the United States Surtax Order (Other Goods): SOR/2019-144
Canada Gazette, Part II, Volume 153, Number 11
SOR/2019-144 May 19, 2019
P.C. 2019-523 May 19, 2019
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance and the Minister of Foreign Affairs, pursuant to subsection 53(2) of the Customs Tariff footnote a, makes the annexed Order Repealing the United States Surtax Order (Other Goods).
Order Repealing the United States Surtax Order (Other Goods)
1 The United States Surtax Order (Other Goods) footnote 1 is repealed.
Coming into Force
2 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
On May 17, 2019, the United States (U.S.) and Canada announced an agreement to lift U.S. section 232 tariffs on Canadian steel and aluminum, as well as Canada’s retaliatory countermeasures.
The United States Surtax Order (Other Goods) [the Surtax Order] came into force on July 1, 2018, in response to the U.S. having imposed tariffs on imports of certain steel and aluminum products from Canada under section 232 of the Trade Expansion Act of 1962. The Surtax Order established a surtax on imports of certain other products beyond the steel and aluminum sector and imported from the U.S., mainly finished consumer goods such as whiskies and playing cards, at a rate of 10%.
- Repeal the surtax that was implemented by the Surtax Order.
The Order Repealing the United States Surtax Order (Other Goods) [the Order] repeals the surtax of 10% on imports from the U.S. of various other goods classified under 75 tariff items.
During public consultations on the scope of Canada’s countermeasures, and since their application on July 1, 2018, the Government of Canada has publicly indicated that Canada’s countermeasures would remain in place until the U.S. eliminates its tariffs on imports of certain steel and aluminum products from Canada. Additional consultations were therefore not required on this Order.
Modern treaty obligations and Indigenous engagement and consultation
As a result of this Order, benefits in the form of repealed surtaxes will be accessible to anyone seeking to import from the U.S. other products classified under 75 tariff items, including Indigenous peoples.
The only viable mechanism to repeal the Surtax Order is an order made under the Customs Tariff.
Costs and benefits
The Order is necessary to repeal the retaliatory surtax that Canada imposed on imports of certain other goods, primarily finished consumer goods, from the U.S. This will restore surtax-free importations into Canada of certain U.S. products. Based on 2017 import data, importations from the U.S. of these goods amounted to $7.65 billion.
Small business lens
Small businesses will benefit from the restoration of surtax-free trade between Canada and the U.S. Additionally, the Order does not make changes to the process of importing goods, including the required customs forms; rather, it removes the surtax applicable on imports of certain other goods from the U.S. Accordingly, there is no incremental change to the level of administrative burden or compliance costs currently imposed on business, including small businesses, as a result of implementing this Order.
The “One-for-One” Rule does not apply to the Order, as there is no change in administrative costs to business.
Regulatory cooperation and alignment
This Order is not related to a work plan or commitment under a regulatory cooperation forum.
Strategic environmental assessment
In accordance with The Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that this Order would not result in positive or negative environmental effects; therefore, a strategic environmental assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for this Order.
Implementation, compliance and enforcement, and service standards
The Canada Border Services Agency is responsible for administering Customs Tariff legislation and regulations, and will ensure that the surtaxes originally established by the Surtax Order, and repealed by this Order, are no longer applied.
Trade and Tariff Policy
International Trade Policy Division
Department of Finance Canada