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
  • 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:

  • 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.
  • 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.