Canadian Government Seeks Comments Regarding Proposed Tariff Eliminations

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February 8, 2011

On February 5, 2011 the Canadian Department of Finance issued a notice in the Canada Gazette seeking comments regarding the proposed elimination of Most-Favored-Nation (MFN) tariff rates on certain goods used by Canadian manufacturers. Based on a review of prior submissions regarding tariff eliminations, the Canadian Department of Finance announced its intention to reduce to “Free” the MFN rates of duty on certain goods (see lists below). The goal of these tariff reductions is to enhance the overall competitiveness of Canadian companies.

The listed goods were chosen based on three criteria:

• they are used by Canadian manufacturers in their operations
• eliminating the tariff on the good will reduce production costs for Canadian industry
• requests were received from stakeholders to eliminate MFN tariffs to enhance competitiveness

The Canadian Government is currently seeking comments from interested parties regarding the timeframe for eliminating the current rates of duty on the following goods, up to a period that would not go beyond January 1, 2015. Comments must be submitted by March 7, 2011.

The Canadian Department of Finance has proposed reducing the tariff to “Free” for the goods imported under the following tariff items:

3302.10.11
3302.10.12
3302.10.90
3702.42.10
3923.40.90
3926.30.00
3926.90.40
4010.31.10
4010.31.90
4010.32.10
4010.32.90
4010.33.10
4010.33.90
4010.34.10
4010.34.90
4010.35.90
4010.36.90
4010.39.10
4010.39.20
4010.39.90
4016.93.99
4106.21.92
6217.90.90
6401.99.12
6406.10.11
6406.10.19
6406.10.90
6406.20.00
6911.10.20
6912.00.20
7319.30.10
8301.70.10
8302.10.90
8302.20.00
8302.42.00
8302.49.20
8302.49.90
8518.90.30
8518.90.90
8528.69.20
8528.71.10
8528.72.20
9401.51.10
9401.59.10
9401.90.19
9401.90.20
9403.81.11
9403.89.11
9405.91.10
9405.91.99
9405.92.00
9405.99.90
9606.10.00
9606.21.00
9606.29.00
9606.30.10
9606.30.90
9607.11.90
9607.19.00
9607.20.10

 

 

It has additionally been proposed that the rate of duty be reduced to “Free” for goods specified below and imported under the following tariff items:

• Fish-liver oils and their fractions for use in Canadian manufactures, currently classified under tariff item No. 1504.10.90.
• Other washing and cleaning preparations for use in Canadian manufactures, currently classified under tariff item No. 3402.90.90.
• Lubricating preparations based in part on petroleum for use in Canadian manufactures, currently classified under tariff item No. 3403.19.19.
• Lubricating preparations not based in part on petroleum but containing oils obtained from bituminous minerals, for use in Canadian manufactures, currently classified under tariff item No. 3403.19.90.
• Lubricating preparations not containing petroleum oils or oils obtained from bituminous minerals, for use in Canadian manufactures, currently classified under tariff item No. 3403.99.00.
• Gelatine capsules for use in Canadian manufactures, currently classified under tariff item No. 3923.90.90.
• Dunnage bags used to secure items for transport, currently classified under tariff item No. 3926.90.90.
• Bolts, nuts, screws and washers of plastics or other materials of headings 39.01 to 39.14, currently classified under tariff item No. 3926.90.90.
• Gaskets of plastics or other materials of headings 39.01 to 39.14, currently classified under tariff item No. 3926.90.90.
• Belts and belting for machinery other than conveyer belts of plastics or other materials of heading 39.01 to 39.14, currently classified under tariff item No. 3926.90.90.
• Parts for use in the Canadian manufacture of yachts, racing boats, canoes and other vessels for pleasure or sport, of plastics or other materials of headings 39.01 to 39.14, currently classified under tariff item No. 3926.90.90.
• Plywood of other than five or seven plies for use in the Canadian manufacture of hardwood plywood panels for flooring, currently classified under tariff item No. 4412.32.90.
• Other articles of copper that are cast, moulded, stamped or forged, but not further worked, for use in Canadian manufactures, currently classified under tariff item No. 7419.91.90.
• Aluminum plates, rods, profiles, tubes and the like, prepared for use in structures and for use in Canadian manufactures, and aluminum parts of structures for use in Canadian manufactures, currently classified under tariff item No. 7610.90.00.
• Other articles of zinc for use in Canadian manufactures, currently classified under tariff item Nos. 7907.00.20 and 7907.00.90.
• Parts for pull-behind trailers, currently classified under tariff item No. 8716.90.90.

For further information, contact a Barnes/Richardson attorney.