Canada Considers Cutting Tariffs on Numerous Manufacturing Inputs, Including Machinery and Electrical Equipment

September 23, 2009

The Government of Canada is considering eliminating tariffs on an extensive list of manufacturing inputs used by Canadian industry. The tariff items being considered for rate reductions range from inorganic chemicals to finished machinery and electrical equipment. These items were selected based on the following three factors:

1. Goods covered by these tariff items are used in the production of other goods.
2. Eliminating the tariff on these goods will reduce production costs for Canadian industry.
3. Requests from stakeholders for eliminating tariffs to enhance competitiveness.

The proposed tariff cuts are part of a broader initiative intended to help Canadian businesses lower their production costs and improve their overall productivity. Interested parties, wishing to comment on the proposed tariff elimination should submit their views in writing by November 6, 2009 to Canada’s Ministry of Finance.

To view a complete list of the tariff items being proposed for duty elimination, click here. For more information on how your company can take advantage of these changes, please contact a Barnes/Richardson attorney.