September 19, 2019 – Canada Border Services Agency (CBSA) recently published a tariff amendment to the Customs Tariff 2019 retroactive to August 8, 2019. The rates of duty changes for preferential treatment Canada Costa-Rica Agreement (CRT tariff) and Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP) for certain tariff items.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP changes
On August 7, 2019, an Order was approved by the Governor in Council (P.C.2019-1137; SOR/2019-292) to amend the Customs Tariff to revert the staging categories for these tariff items to the negotiated outcome of the CPTPP. Accordingly, as of August 8, 2019, certain goods in chapter 87 are subject to a 5% tariff when imported into Canada under the CPTPP tariff treatment and will be gradually eliminated such that they become duty-free as of January 1, 2022. Complete details on the changes is found in Canada Gazette Part II, Volume 153 SOR/2019-292.
The Department of Finance advised of a technical error with the implementation of CPTPP tariff commitments, stemming from the transposition of tariff commitments under the negotiated 2015 tariff nomenclature into the 2018 tariff nomenclature for implementation, resulted in 15 tariff items being assigned the incorrect staging category for the CPTPP preferential tariffs in Canada’s domestic legislation.
The revised tariffs on these goods apply on a forward basis only and duties will not be retroactively assessed on importations between December 30, 2018, and the entry into force of this Order. Goods already in transit to Canada as of August 8, 2019 will receive the benefit of the duty-free treatment that Canada has applied to date on these goods.
The CPTPP Remission Order remits customs duties paid on importations, between December 30, 2018, and the entry into force of this Order, of the affected miscellaneous rubber tires under the CPTPP tariff treatment.
View Canada Gazette Part 2, Volume 153 dated August 21, 2019 CPTPP Remission Order.
Canada-Costa Rica Tariff Changes
The Canada Costa-Rica (CRT) tariff are now duty free status for certain tariff classifications as noted in in the Canada Gazette Part II Volume 153 SOR/2019-290. The tariff rate reductions are the “F” staging category and list additional tariff items extending entitlement to CRT preferential status.
The tariff rate changes and reduction is retroactive to August 8, 2019. Transactions accounted between August 8, 2019 to August 13, 2019 you can obtain a refund of the duties paid under the HS tariff classifications in the amendment for eligible preferential treatment.
Also, the CCRFTA Non-entitlement to Preference Regulations is now revoked. Notice of the Regulations Repealing CCRFTA Non-entitlement to Preference Regulations is published in the Canada Gazette II, Vol152, number 17, August 21, 2019. This related to goods that did not quality under CRT as originating under the Costa Rica tariff.
View Customs Notice CN19-16 for details and information on the CBSA tariff amendment which was implemented on August 13, 2019 and is reflected in Customs Tariff T2019-3 available on CBSA’s webpage.