TARIFF PREFERENCE LEVEL TRANSFER MECHANISM MAY BE DISCONTINUED

The Department of Foreign Affairs and International Trade Canada (DFAIT) is seeking the views of exporters concerning the cotton or man-made fibre (non-wool) apparel and woven fabric TPL Allocation Policy. DFAIT is considering removing the current allocation transfer mechanism in place for cotton and man-made fibre apparel and other textile goods such as woven fabric and certain made-up textile articles.

The current policy provides for the transfer of TPL allocation allowing companies with excess allocation the mechanism to transfer the excess to companies that do not hold sufficient allocation. DFAIT is considering removing the transfer mechanisms because of decreasing utilization rates. For calendar 2008, it is expected that TPL utilization for cotton and man-made fibre apparel and woven fabric will be less than 50%.

If this proposal is implemented, the allocation TPL for non-wool apparel, woven fabrics and made-up articles will revert back to an open pool and allocated solely on the basis of historical performance with any remaining balance made available on a first come first served basis during the course of the year. TPL transfers will not be allowed.

The current rates of TPL utilization are at:
 www.dfait-maeci.gc.ca/trade/eicb/textile/ntpl-exe-dec08-en.asp

Comments must be submitted by December 1, 2008.

Information on this and other recent developments can be obtained from our technical consulting group.