News You Need to Know: Upcoming Canadian Customs Tariff for 2022

The Government of Canada has provided updates and information in the Canada Gazette II on September 1st, 2021, regarding amendments to the schedule of customs tariff harmonized system. The order to amend the harmonized system comes into effect on January 1st, 2022.

The new HS 2022 edition makes some major changes to the harmonized system, with a total of 351 sets of amendments covering a wide range of goods moving across borders. This order doesn’t change any rates of duty; rather, it modifies the numbering and description of tariff provisions and additions in the schedule to the Customs Tariff to implement the HS amendments adopted by the WCO.

Here is a breakdown of the amendments to the Customs Tariff as per the Schedule Order:

  • Part 1: Amendments to the Table of Sections and Chapters of the Harmonized System
  • Part 2: Repealed Tariff Provisions
  • Part 3 Amendments to the List of Tariff Provisions
  • Part 4 Amendments to the English Version of the List of Tariff Provisions
  • Part 5: Amendments to the French Version of the List of Tariff Provisions
  • Part 6: Additions to the List of Tariff Provisions
  • Part 7: Addition of Tariff Items

These tariff classification changes will need to be reflected in all of Canada’s trade agreements; however, these updates are technical in nature and won’t affect the scope of the agreements or the obligations therein. Canada’s free trade agreement partners will also implement changes to HS nomenclature, and those changes will be reflected in trade agreements as required. Any changes would be implemented jointly by signatories to the agreement.

The CBSA administers customs and tariff legislation and regulations and is responsible for compliance with them. The agency will publish the Customs Tariff 2022, and the concordance tables of the changes to the Customs Tariff on their webpage. The concordance publication is expected to be available at the very latest by October 2021.