THE GOVERNMENT HAS INVITED VIEWS REGARDING TARIFF REMOVAL ON MANUFACTURING INPUTS & MACHINERY
The Department of Finance has invited views on the proposed elimination of Most-Favoured-Nation (MFN) tariff rates on a wide range of manufacturing inputs, machinery and equipment. The measure is part of the Economic Action Plan and the government’s intention is to remove the tariffs for a period of 5 years in order to stimulate the economy and assist Canadian industry.
The highest rate of duty pertains to fabrics and textiles (10-14%), and the government estimates that this measure would reduce business costs by about $440 million over five years.
Products that are to become duty-free include:
- Chapter 25 — Salt; sulphur; earths and stone; plastering materials, lime and cement
- Chapter 27 — Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes
- Chapter 28 — Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes
- Chapter 29 — Organic chemicals
- Chapter 32 — Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks
- Chapter 38 — Miscellaneous chemical products
- Chapter 39 — Plastics (including resins, plates and sheeting) and articles thereof
- Chapter 40 — Rubber and articles thereof
- Chapter 41 — Raw hides and skins (other than furskins) and leather (sheeting)
- Chapter 43 — Furskins and artificial fur; manufactures thereof
- Chapter 44 — Wood and articles of wood; wood charcoal
- Chapter 51 — Wool, fine or coarse animal hair; horsehair yarn and woven fabrics
- Chapter 52 — Cotton fibres, yarns and woven fabrics)
- Chapter 53 — Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn
- Chapter 54 — Man-made filaments; strip and woven fabrics of man-made textile materials
- Chapter 55 — Man-made staple fibres, yarns and woven fabrics
- Chapter 56 — Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof
- Chapter 58 — Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery
- Chapter 59 — Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use
- Chapter 60 — Knitted or crocheted fabrics
- Chapter 68 — Articles of stone, plaster, cement, asbestos, mica or similar materials
- Chapter 70 — Glass and glassware
- Chapter 71 — Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery; coin
- Chapter 72 — Iron and steel
- Chapter 73 — Articles of iron and steel
- Chapter 74 — Copper and articles thereof
- Chapter 76 — Aluminum and articles thereof
- Chapter 78 — Lead and articles thereof
- Chapter 80 — Tin and articles thereof
- Chapter 81 — Other base metals; cermets; articles thereof
- Chapter 82 — Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal
- Chapter 83 — Miscellaneous articles of base metal
- Chapter 84 — Machinery and mechanical appliances, nuclear reactors, boilers, and parts thereof
- Chapter 85 — Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles
- Chapter 90 — Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof
- Canadian company/industry association name, address, telephone number and contact person.
- Relevant eight-digit tariff item(s) and description of the good(s) of particular interest.
- Reasons for the expressed support/concern respecting the proposed tariff elimination, including detailed information substantiating any expected beneficial or adverse impact.
- If concern is expressed with respect to the proposed tariff elimination for one or more eight-digit tariff item(s), please indicate the preferred length of gradual elimination over a period not to exceed five years.
Interested parties wishing to comment on the proposed MFN tariff elimination should submit their views in writing by November 6, 2009.
Submissions should include the following information:
Please identify if information provided in the submissions is commercially sensitive.
Interested parties can contact our technical consulting group for additional information or assistance in the preparation of submissions.