FEDERAL REG

SOR/2016-253: Schedule to the Customs Tariff (Harmonized System, 2017) — Order Amending Customs Tariff

REGISTRATION OF FEDERAL REGULATION - VIA PART II OF THE GAZETTE

Registered
September 24, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Order.) Issues The World Customs Organization (WCO) has published amendments to the Harmonized System nomenclature that will enter into force on January 1, 2017. Canada, as a contracting party to the International Convention on the Harmonized System Commodity Description and Coding System (the Convention), participated in the... (Click for more)


Published on September 24, 2016

Bill Summary

SOR/2016-253: Schedule to the Customs Tariff (Harmonized System, 2017) — Order Amending Customs Tariff

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Order.) Issues The World Customs Organization (WCO) has published amendments to the Harmonized System nomenclature that will enter into force on January 1, 2017. Canada, as a contracting party to the International Convention on the Harmonized System Commodity Description and Coding System (the Convention), participated in the elaboration of these amendments and must now adopt them into its Customs Tariff as of January 1, 2017. Background The Harmonized System (HS) is used by more than 200 countries and customs territories as a basis for their tariff legislations and for the collection of international trade statistics. The HS comprises approximately 5 000 commodity groups, each identified by a 6-digit code and supported by well-defined rules to achieve uniform classification. As a result, the HS governs the basic structure of the numbering and description of the tariff items found in the schedule to Canada’s Customs Tariff. The HS is updated approximately every five years to reflect, among other things, changing technology and patterns of trade. For example, these latest amendments include changes related to products such as light emitting diode (LED) lamps, multi-component integrated circuits and hybrid, plug-in hybrid and electric vehicles. Objectives The objective of the Order is to make the necessary changes to the Customs Tariff to fulfill Canada’s international obligations as a signatory to the Convention. All signatories, including Canada’s major trading partners such as the United States and the European Union, are also updating their tariff schedules to reflect the updated HS effective January 1, 2017. Description The Order amends the schedule to the Customs Tariff to incorporate the required amendments to the HS adopted at the WCO. It will come into force on January 1, 2017. This Order is technical in nature, as it implements the amendments agreed to at the WCO. As appropriate, it modifies the numbering and description of tariff provisions in the schedule to the Customs Tariff to implement the HS amendments and to ensure that the rates of duty to which goods are subject to as of January 1, 2017, are identical to the rates to which they would have been subject to in the absence of the amendments to the HS. “One-for-One” Rule The “One-for-One” Rule does not apply to this Order, as there is no change in administrative costs to business. Small business lens The small business lens does not apply to this Order, as there are no costs imposed on small business. Consultation The WCO is the international body responsible for the maintenance of the HS. This process is managed by the Harmonized System Review Committee (the Committee), representing the contracting parties to the Convention. That Committee examines policy matters, and makes decisions on classification questions. The Canada Border Services Agency (CBSA) represents Canada on the Committee. The CBSA conducts informal consultations on an ongoing basis with relevant Canadian stakeholders during discussions at the WCO to ensure that the recommended amendments to the HS reflect Canadian interests. Rationale This Order involves no changes in tariff policy and the amendments are tariff rate neutral (i.e. no tariff rates are affected) and revenue neutral (i.e. does not generate more or less tariff revenues for the government). Proceeding by Order pursuant to section 14 of the Customs Tariff is consistent with the manner in which previous HS changes were implemented in Canada. The most recent HS amendments were published in the Canada Gazette, Part II on September 22, 2011 (SOR/2011-191), and became effective on January 1, 2012. Implementation, enforcement and service standards The CBSA is responsible for the administration of, and compliance with, customs and tariff legislation and regulations. In the course of its administration of these tariff amendments, the CBSA will inform the importing community. Contact Diane Kelloway International Trade Policy Division Department of Finance Canada Ottawa, Ontario K1A 0G5 Telephone: 613-369-4038 Footnote a S.C. 2014, c. 28, s. 45 Footnote b S.C. 1997, c. 36 Footnote 1 S.C. 1997, c. 36

This Bill does not amend any statutes.

Sign up for alerts on this Bill

Receive emails tracking this Bill's progress.

See all your alerts in a dashboard.

Set an alert with one click and you're done!