Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act (S.C. 2017, c. 6)

Marginal note:Regulations

7 The Governor in Council may, by regulation

• (a) specify that a territory is, or is not, a territory referred to in the definition of territory of the European Union in subsection 2(1);

• (b) indicate, for the purpose of paragraph 3(2.1)(c), the registers that are second, or international, registers of member states of the European Union; and

• (c) fix the maximum number of licences that may be issued under sections 4 and 5.

Canada–European Union Comprehensive Economic and Trade Agreement

Canada–European Union Comprehensive Economic and Trade Agreement has the same meaning as Agreement in section 2 of the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act. (Accord économique et commercial global entre le Canada et l’Union européenne)

EU country or other CETA beneficiary

EU country or other CETA beneficiary has the meaning assigned by regulation. (pays de l’Union européenne ou autre bénéficiaire de l’AÉCG)

CEUT

CEUT refers to the Canada–European Union Tariff. (TCUE)

Canada–European Union Tariff

Marginal note:Application of CEUT

• 49.8 (1) Subject to section 24, goods that originate in an EU country or other CETA beneficiary are entitled to the Canada–European Union Tariff rates of customs duty.

• Marginal note:“A” final rate for CEUT

  (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CEUT” in relation to goods entitled to the Canada–European Union Tariff, the Canada–European Union Tariff rate of customs duty that applies to those goods is the final rate of “Free”.

• Marginal note:“F” staging for CEUT

  (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CEUT” in relation to goods entitled to the Canada–European Union Tariff, the Canada–European Union 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 CEUT

  (4) If “W1”, “W2”, “W3” or “W4” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CEUT” in relation to goods entitled to the Canada–European Union Tariff, the Canada–European Union Tariff rate of customs duty that applies to those goods is the initial rate, reduced

  • (a) if “W1” is set out,

    • (i) effective on the coming into force of this section, to three quarters of the initial rate,

    • (ii) effective on January 1 of the first year after the year in which this section comes into force, to one half of the initial rate,

    • (iii) effective on January 1 of the second year after the year in which this section comes into force, to one quarter of the initial rate, and

    • (iv) effective on January 1 of the third year after the year in which this section comes into force, to the final rate of “Free”;

  • (b) if “W2” is set out,

    • (i) effective on the coming into force of this section, to five sixths of the initial rate,

    • (ii) effective on January 1 of the first year after the year in which this section comes into force, to two thirds of the initial rate,

    • (iii) effective on January 1 of the second year after the year in which this section comes into force, to one half of the initial rate,

    • (iv) effective on January 1 of the third year after the year in which this section comes into force, to one third of the initial rate,

    • (v) effective on January 1 of the fourth year after the year in which this section comes into force, to one sixth of the initial rate, and

    • (vi) effective on January 1 of the fifth year after the year in which this section comes into force, to the final rate of “Free”;

  • (c) if “W3” is set out,

    • (i) effective on the coming into force of this section, to seven eighths of the initial rate,

    • (ii) effective on January 1 of the first year after the year in which this section comes into force, to three quarters of the initial rate,

    • (iii) effective on January 1 of the second year after the year in which this section comes into force, to five eighths of the initial rate,

    • (iv) effective on January 1 of the third year after the year in which this section comes into force, to one half of the initial rate,

    • (v) effective on January 1 of the fourth year after the year in which this section comes into force, to three eighths of the initial rate,

    • (vi) effective on January 1 of the fifth year after the year in which this section comes into force, to one quarter of the initial rate,

    • (vii) effective on January 1 of the sixth year after the year in which this section comes into force, to one eighth of the initial rate, and

    • (viii) effective on January 1 of the seventh year after the year in which this section comes into force, to the final rate of “Free”; and

  • (d) if “W4” is set out,

    • (i) effective on the fifth anniversary of the day on which this section comes into force, to two thirds of the initial rate,

    • (ii) effective on January 1 of the sixth year after the year in which this section comes into force, to one third of the initial rate, and

    • (iii) effective on January 1 of the seventh year after the year in which this section comes into force, 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, the resulting percentage shall be rounded down to the nearest one tenth of one percent.

• Marginal note:Rounding of amounts — fraction other than 0.5

  (7) If, for any goods other than motor vehicles of heading No. 87.02, 87.03 or 87.04, a reduction under subsection (3) or (4) or a rounding of rates under subsection (6) 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 2%

  (8) If, for any goods other than motor vehicles of heading No. 87.02, 87.03 or 87.04, 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:Regulations

49.9 The Governor in Council may, on the recommendation of the Minister, make regulations defining the term EU country or other CETA beneficiary.

Marginal note:Extension and withdrawal of entitlement

• 49.91 (1) The Governor in Council may, on the recommendation of the Minister, by order, amend the schedule to

  • (a) extend entitlement to the Canada–European Union Tariff to any goods that originate in an EU country or other CETA beneficiary; or

  • (b) withdraw entitlement to the Canada–European Union Tariff from any goods that originate in a country if, in the opinion of the Governor in Council, those goods are not entitled to that Tariff under the Canada–European Union Comprehensive Economic and Trade Agreement.

• Marginal note:Content of order

  (2) An order made under subsection (1)

  • (a) must specify the date on which the order becomes effective;

  • (b) must, if the order partially extends entitlement to the Canada–European Union Tariff, indicate the goods to which entitlement to that Tariff is extended;

  • (c) may exempt goods from the conditions set out in subsection 24(1) and prescribe any conditions that apply; and

  • (d) must, if the order wholly or partially withdraws entitlement to the Canada–European Union Tariff, indicate the goods to which the Most-Favoured-Nation Tariff applies as a consequence.

customs duties

customs duties, other than for the purposes of sections 95, 96 and 98.1, means customs duties imposed under Part 2, other than surtaxes or temporary duties imposed under Division 4 of Part 2. (droits de douane)

• Marginal note:Goods of tariff item No. 9971.00.00 — EU

  (5) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the Canada–European Union Tariff is the value of the repairs or alterations made to those goods in an EU country or other CETA beneficiary.

• Marginal note:Limitation

  (6) Subsection (5) ceases to have effect on January 1 of the seventh year after the year in which this subsection comes into force.

Marginal note:Relief

• 89 (1) Subject to subsection (2), sections 95 and 98.1 and any regulations made under section 99, if an application for relief is made within the prescribed time, in accordance with subsection (4), by a person of a prescribed class, relief may be granted from the payment of duties that would but for this section be payable in respect of imported goods that are

Marginal note:Repayment of relief — EU

• 98.1 (1) If relief is granted under section 89 in respect of goods used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported, on or after the third anniversary of the day on which section 49.8 comes into force, to an EU country or other CETA beneficiary and that benefit, when imported into that country, from a preferential tariff under the Canada–European Union Comprehensive Economic Trade Agreement,

  • (a) the person who exported the other goods shall, within 60 days after exporting them, report their exportation in the prescribed manner to an officer at a customs office and pay an amount equal to the portion of the duties relieved under section 89 that are customs duties; and

  • (b) subject to subsection (4) but despite any other provision of this Part, the person and any other person who was granted that relief are, from the time the other goods are exported, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount referred to in paragraph (a).

• Marginal note:Debt to Her Majesty

  (2) While it remains unpaid, the amount referred to in subsection (1) is a debt owing to Her Majesty in right of Canada under the Customs Act.

• Marginal note:No refund or drawback

  (3) No refund or drawback may be granted under section 113 for customs duties paid in respect of goods for which relief of all or a portion of the duties could have been, but was not, granted under section 89, if

  • (a) the goods are used as materials, or identical, equivalent or similar substitutes for those goods are used as materials, in the production of other goods; and

  • (b) those other goods are exported, on or after the third anniversary of the day on which section 49.8 comes into force, to an EU country or other CETA beneficiary and benefit, when imported into that country, from a preferential tariff under the Canada–European Union Comprehensive Economic Trade Agreement.

• Marginal note:Exceptions

  (4) Subsections (1) and (3) do not apply to

  • (a) imported goods that originate in an EU country or other CETA beneficiary that are used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to an EU country or other CETA beneficiary;

  • (b) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been

    • (i) placed in a duty free shop for exportation,

    • (ii) designated as ships’ stores by regulations made under paragraph 99(g), or

    • (iii) supplied for use on board a conveyance of a class prescribed under paragraph 99(g); or

  • (c) any other imported goods or any imported goods used as materials, or any class of such goods, that may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the other parties to the Canada–European Union Comprehensive Economic and Trade Agreement.

• Marginal note:Definition of materials

  (5) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients.

Marginal note:Effect of relief

• 107 (1) Subject to sections 95 and 98.1, if relief is granted under section 89, 92, 101 or 106 from the payment of the whole or a portion of duties,

Marginal note:Refund or drawback

• 113 (1) Subject to subsection (2), sections 96 and 98.1 and any regulations made under subsection (4), a refund or drawback shall be granted of all or a portion of duties if

• Marginal note:Interest on the payment of relief for CETA

  (8) A person who is liable under subsection 98.1(1) to pay an amount shall pay, in addition to the amount, interest at the specified rate for the period beginning on the sixty-first day after on which the day the amount became payable and ending on the day on which the amount is paid in full, calculated on the amount of the balance outstanding.