Canada–Panama Economic Growth and Prosperity Act (S.C. 2012, c. 26)
Full Document:
Assented to 2012-12-14
42. The Act is amended by adding the following after section 49.4:
Panama Tariff
Marginal note:Application of PAT
49.41 (1) Subject to section 24, goods that originate in Panama are entitled to the Panama Tariff rates of customs duty.
Marginal note:“A” final rate
(2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “PAT” in relation to goods entitled to the Panama Tariff, the Panama Tariff rate of customs duty that applies to those goods is the final rate of “Free”.
Marginal note:“F” staging for PAT
(3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “PAT” in relation to goods entitled to the Panama Tariff, the Panama Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List.
Marginal note:Staging for PAT
(4) If “T1”, “T2” or “T3” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “PAT” in relation to goods entitled to the Panama Tariff, the Panama Tariff rate of customs duty that applies to those goods is the initial rate, reduced
(a) if “T1” is set out,
(i) effective on the coming into force of this subsection, to two thirds of the initial rate,
(ii) effective on January 1 of the year that is one year after the year of the coming into force of this subsection, to one third of the initial rate, and
(iii) effective on January 1 of the year that is two years after the year of the coming into force of this subsection, to the final rate of “Free”;
(b) if “T2” is set out,
(i) effective on the coming into force of this subsection, to four fifths of the initial rate,
(ii) effective on January 1 of the year that is one year after the year of the coming into force of this subsection, to three fifths of the initial rate,
(iii) effective on January 1 of the year that is two years after the year of the coming into force of this subsection, to two fifths of the initial rate,
(iv) effective on January 1 of the year that is three years after the year of the coming into force of this subsection, to one fifth of the initial rate, and
(v) effective on January 1 of the year that is four years after the year of the coming into force of this subsection, to the final rate of “Free”; and
(c) if “T3” is set out,
(i) effective on January 1 of the year that is five years after the year of the coming into force of this subsection, to nine tenths of the initial rate,
(ii) effective on January 1 of the year that is six years after the year of the coming into force of this subsection, to eight tenths of the initial rate,
(iii) effective on January 1 of the year that is seven years after the year of the coming into force of this subsection, to seven tenths of the initial rate,
(iv) effective on January 1 of the year that is eight years after the year of the coming into force of this subsection, to six tenths of the initial rate,
(v) effective on January 1 of the year that is nine years after the year of the coming into force of this subsection, to five tenths of the initial rate,
(vi) effective on January 1 of the year that is 10 years after the year of the coming into force of this subsection, to four tenths of the initial rate,
(vii) effective on January 1 of the year that is 11 years after the year of the coming into force of this subsection, to three tenths of the initial rate,
(viii) effective on January 1 of the year that is 12 years after the year of the coming into force of this subsection, to two tenths of the initial rate,
(ix) effective on January 1 of the year that is 13 years after the year of the coming into force of this subsection, to one tenth of the initial rate, and
(x) effective on January 1 of the year that is 14 years after the year of the coming into force of this subsection, to the final rate of “Free”.
Marginal note:Rounding of specific rates
(5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent.
Marginal note:Rounding of amounts
(6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5.
Marginal note:Elimination of rates of less than two per cent
(7) If a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately.
Marginal note:2010, c. 4, s. 36
43. The definition “principal cause” in section 54 of the Act is replaced by the following:
“principal cause”
« cause principale »
“principal cause”, in respect of goods imported from one of the following countries, means an important cause that is no less important than any other cause:
- Colombia
- Panama
- Peru
Marginal note:2010, c. 4, s. 37
44. Section 59.1 of the Act is replaced by the following:
Marginal note:Emergency measures
59.1 An order made under subsection 55(1) may exclude goods of any kind imported from one of the following countries if it appears to the satisfaction of the Governor in Council, on the basis of a report under section 20 or 29 of the Canadian International Trade Tribunal Act, that the quantity of those goods being imported is not a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods:
- Colombia
- Panama
- Peru
Marginal note:2010, c. 4, s. 38
45. Subsection 63(4.1) of the Act is replaced by the following:
Marginal note:Exception for goods imported
(4.1) An order made under subsection (1) may exclude goods of any kind imported from one of the following countries if it appears to the satisfaction of the Governor in Council, on the basis of a report under the Canadian International Trade Tribunal Act, that the quantity of those goods being imported is not a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods:
- Colombia
- Panama
- Peru
46. The Act is amended by adding the following after section 71.4:
Bilateral Emergency Measures — Panama
Marginal note:Order by Governor in Council
71.41 (1) Subject to subsections (2) to (4), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.0131(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.081) of that Act, that goods that are entitled to the Panama Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order
(a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 49.41; and
(b) make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Panama Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of
(i) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made, and
(ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods on January 1, 2009.
Marginal note:Terms and conditions
(2) An order under subsection (1)
(a) is not to be made more than once in respect of goods of any particular kind;
(b) remains in effect only for the period, not exceeding three years, that is specified in the order;
(c) may be made during the period beginning on the day on which this subsection comes into force and ending
(i) if the order is in respect of goods for which the Panama Tariff rate of customs duty is reduced to the final rate of “Free” over a period of less than 10 years, on the day that is 10 years after the day on which this subsection comes into force, and
(ii) if the order is in respect of goods for which the Panama Tariff rate of customs duty is reduced to the final rate of “Free” over a period of 10 years or more, on the day after the expiry of the tariff staging period in respect of those goods; and
(d) may be made after the period described in paragraph (c) if the order is based on an agreement between the Government of Canada and the Government of the Republic of Panama relating to the application of subsection (1).
Marginal note:Rate of duty when order ceases to have effect
(3) If an order made under subsection (1) ceases to have effect in a particular calendar year, the rate of customs duty applicable to the goods after the order ceases to have effect is the rate of customs duty that is applicable in accordance with section 49.41.
Definition of “principal cause”
(4) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat.
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