Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Customs Tariff (S.C. 1997, c. 36)

Full Document:  

Act current to 2022-09-22 and last amended on 2022-09-01. Previous Versions

PART 2Customs Duties (continued)

DIVISION 3Tariff Treatments (continued)

General (continued)

Marginal note:If rate not specified

 The symbol “N/A”, if it is set out in the column entitled “Most-Favoured-Nation Tariff” in the List of Tariff Provisions, or in the column entitled “Preferential Tariff” in that List in combination with an abbreviation designating a preferential tariff treatment of a tariff item, indicates that that tariff treatment does not apply to that tariff item.

General Tariff

Marginal note:Application of General Tariff

  •  (1) A General Tariff rate of customs duty of 35% applies to

    • (a) goods that originate in a country that is not set out in the List of Countries;

    • (b) goods that originate in a country set out in the List of Countries and that fail to meet the conditions for entitlement to any other tariff treatments provided for under this Act; and

    • (c) goods to which the General Tariff applies under paragraph 31(1)(b) or any regulation or order made under this Act.

  • Marginal note:Exception

    (2) Notwithstanding subsection (1), goods referred to in that subsection are subject to the Most-Favoured-Nation Tariff rate of customs duty in respect of those goods if

    • (a) that rate is, or is equivalent to, more than 35%; or

    • (b) a Note or Supplementary Note to a Chapter of the List of Tariff Provisions or a tariff item so provides.

Most-Favoured-Nation Tariff

Marginal note:Application of MFN Tariff

  •  (1) Subject to section 24 and any order made under section 31, goods that originate in a country set out in the List of Countries are entitled to the Most-Favoured-Nation Tariff rates of customs duty.

  • Marginal note:“A” final rate

    (2) If “A” is set out in the column entitled “Most-Favoured-Nation Tariff” in the List of Tariff Provisions in relation to goods entitled to the Most-Favoured-Nation Tariff, the Most-Favoured-Nation Tariff rate of customs duty that applies to those goods is the final rate.

  • Marginal note:Staging for MFN Tariff

    (3) If “B”, “C”, “D” or “E” is set out in the column entitled “Most-Favoured-Nation Tariff” in the List of Tariff Provisions in relation to goods entitled to the Most-Favoured-Nation Tariff, the Most-Favoured-Nation Tariff rate of customs duty that applies to those goods is the initial rate, reduced

    • (a) if “B” is set out,

      • (i) effective on January 1, 1999, by one half of the difference between the initial rate and the final rate, and

      • (ii) effective on January 1, 2000, to the final rate;

    • (b) if “C” is set out,

      • (i) effective on August 1, 1998, by one third of the difference between the initial rate and the final rate,

      • (ii) effective on August 1, 1999, by two thirds of the difference between the initial rate and the final rate, and

      • (iii) effective on August 1, 2000, to the final rate;

    • (c) if “D” is set out,

      • (i) effective on January 1, 1999, by one quarter of the difference between the initial rate and the final rate,

      • (ii) effective on January 1, 2000, by one half of the difference between the initial rate and the final rate,

      • (iii) effective on January 1, 2001, by three quarters of the difference between the initial rate and the final rate, and

      • (iv) effective on January 1, 2002, to the final rate; and

    • (d) if “E” is set out,

      • (i) effective on January 1, 1999, by one sixth of the difference between the initial rate and the final rate,

      • (ii) effective on January 1, 2000, by one third of the difference between the initial rate and the final rate,

      • (iii) effective on January 1, 2001, by one half of the difference between the initial rate and the final rate,

      • (iv) effective on January 1, 2002, by two thirds of the difference between the initial rate and the final rate,

      • (v) effective on January 1, 2003, by five sixths of the difference between the initial rate and the final rate, and

      • (vi) effective on January 1, 2004, to the final rate.

  • Marginal note:“F” staging for MFN Tariff

    (4) If “F” is set out in the column entitled “Most-Favoured-Nation Tariff” in the List of Tariff Provisions in relation to goods entitled to the Most-Favoured-Nation Tariff, the Most-Favoured-Nation Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List.

  • Marginal note:“G” staging for MFN Tariff

    (5) If “G” is set out in the column entitled “Most-Favoured-Nation Tariff” in the List of Tariff Provisions in relation to goods entitled to the Most-Favoured-Nation Tariff, the Most-Favoured-Nation Tariff rate of customs duty that applies to those goods is the initial rate, reduced, effective January 1, 1999, to the final rate.

  • Marginal note:Rounding percentage rates

    (6) If a reduction under subsection (3), (4) or (5) results in a rate of customs duty that includes a fraction of one per cent, the resulting percentage shall be rounded to the nearest one-tenth of one per cent or, if the resulting percentage is equidistant from two one-tenths of one percent, to the higher of them.

  • Marginal note:Rounding of rates other than 0.5 per cent

    (7) If, for any goods other than motor vehicles of tariff item No. 8701.20.00, heading No. 87.02, 87.03, 87.04 or 87.05, and chassis therefor of heading No. 87.06, a reduction under any of subsections (3) to (5) 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 two per cent

    (8) If a reduction under subsection (3), (4) or (5) 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:Rounding specific rates

    (9) If a reduction under subsection (3), (4) or (5) results in a rate of customs duty that includes a specific rate that includes a fraction of one cent and the final rate

    • (a) is or includes a specific rate, the specific rate component of the reduced rate shall be rounded

      • (i) if the final rate is or includes a specific rate expressed in cents to two decimal places, to the nearest one-hundredth of a cent or, if the specific rate component of the reduced rate is equidistant from two one-hundredths of a cent, to the higher of them,

      • (ii) if the final rate is or includes a specific rate expressed in cents to one decimal place, to the nearest one-tenth of a cent or, if the specific rate component of the reduced rate is equidistant from two one-tenths of a cent, to the higher of them, and

      • (iii) in any other case, to the nearest cent or, if the specific rate component of the reduced rate is equidistant from two cents, to the higher of them; or

    • (b) is “Free” or does not include a specific rate, the specific rate component of the reduced rate shall be rounded as provided in subparagraphs (a)(i) to (iii), except that the references to the final rate in subparagraphs (a)(i) and (ii) shall be read as references to the initial rate.

Marginal note:Extension or withdrawal of entitlement

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

    • (a) extend entitlement to the Most-Favoured-Nation Tariff to any goods that originate in a country to which the General Tariff applies;

    • (b) withdraw entitlement to the Most-Favoured-Nation Tariff from any goods that originate in a country that is entitled to that Tariff and make those goods subject to the General Tariff; and

    • (c) indicate, to the extent required, the tariff treatment of the country to which the order applies.

  • Marginal note:Contents of order

    (2) An order made under subsection (1) must

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

    • (b) if the order partially extends entitlement to the Most-Favoured-Nation Tariff, indicate the goods to which entitlement to that Tariff is extended; and

    • (c) if the order partially withdraws entitlement to the Most-Favoured-Nation Tariff, indicate the goods that are made subject to the General Tariff.

  • 1997, c. 36, s. 31
  • 2011, c. 24, s. 117

Marginal note:Approval by Parliament

  •  (1) An order made under paragraph 31(1)(b) the period of which is longer than 180 days ceases to have effect on the one hundred and eightieth day after the day on which it becomes effective or, if Parliament is not then sitting, the fifteenth day thereafter that Parliament is sitting unless, not later than that day, the order is approved by a resolution adopted by both Houses of Parliament.

  • Meaning of sitting day

    (2) For the purposes of subsection (1), a day on which either House of Parliament sits is deemed to be a sitting day.

  • Marginal note:Rates restored

    (3) If an order referred to in subsection (1) ceases to have effect under that subsection, entitlement to the Most-Favoured-Nation Tariff withdrawn by the order shall be restored.

General Preferential Tariff

Marginal note:Application of GPT

  •  (1) Subject to sections 24 and 35 and any order made under section 34, goods that originate in a country set out in the List of Countries as a beneficiary of the General Preferential Tariff are entitled to the General Preferential 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 “GPT” in relation to goods entitled to the General Preferential Tariff, the General Preferential Tariff rate of customs duty that applies to those goods is the final rate.

  • Marginal note:“F” staging for GPT

    (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “GPT” in relation to goods entitled to the General Preferential Tariff, the General Preferential Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List.

  • Marginal note:“J” staging for GPT

    (4) If “J” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “GPT” in relation to goods entitled to the General Preferential Tariff, the General Preferential Tariff rate of customs duty that applies to those goods is the initial rate, reduced by one percentage point on January 1 of each year after 1998, until the difference between the reduced rate and the final rate is less than one percentage point, at which time the final rate applies.

  • Marginal note:Rounding amounts

    (5) 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 less than two per cent

    (6) If a reduction under subsection (3) or (4) in respect of goods other than motor vehicles of tariff item No. 8703.21.10 or 8705.20.00 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:Extension and withdrawal of entitlement

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

    • (a) extend entitlement to the General Preferential Tariff to any goods that originate in a country that is a beneficiary of the Most-Favoured-Nation Tariff if, in the opinion of the Governor in Council, that country is a developing country;

    • (b) withdraw entitlement to the General Preferential Tariff from any goods that originate in a country that is a beneficiary of that Tariff; and

    • (c) reduce a rate of customs duty set out following the abbreviation “GPT” in the column entitled “Preferential Tariff” in the List of Tariff Provisions and the “F” Staging List.

  • 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 General Preferential 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 General Preferential Tariff, indicate the goods to which the Most-Favoured-Nation Tariff applies as a consequence.

  • 1997, c. 36, s. 34
  • 2011, c. 24, s. 118

Marginal note:Application of tariff rate quota

  •  (1) The Governor in Council may, on the recommendation of the Minister, by order, apply a tariff rate quota in respect of goods imported from one or more countries entitled to the General Preferential Tariff for a period specified in the order.

  • Marginal note:Tariff treatment if tariff rate quota exceeded

    (2) Goods imported in excess of a tariff rate quota applied by an order made under subsection (1) are subject to the tariff treatment that would be applicable to those goods if they were not entitled to the General Preferential Tariff.

Marginal note:Expiry date

 Sections 33 to 35 cease to have effect on December 31, 2024 or on any earlier date that may be fixed by order of the Governor in Council.

  • 1997, c. 36, s. 36
  • 2004, c. 13, s. 1
  • 2013, c. 33, s. 62

Least Developed Country Tariff

Marginal note:Application of LDCT

  •  (1) Subject to sections 24 and 39 and any order made under section 38, goods that originate in a country set out in the List of Countries as a beneficiary of the Least Developed Country Tariff are entitled to the Least Developed Country 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 “LDCT” in relation to goods entitled to the Least Developed Country Tariff, the Least Developed Country Tariff rate of customs duty that applies to those goods is the final rate.

  • Marginal note:“F” staging for LDCT

    (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “LDCT” in relation to goods entitled to the Least Developed Country Tariff, the Least Developed Country Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List.

Marginal note:Extension or withdrawal of entitlement

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

    • (a) extend entitlement to the Least Developed Country Tariff to any goods that originate in a country that is a beneficiary of the General Preferential Tariff, if, in the opinion of the Governor in Council, that country is a least developed country;

    • (b) withdraw entitlement to the Least Developed Country Tariff from any goods that originate in a country that is a beneficiary of that Tariff; and

    • (c) reduce a rate of customs duty set out following the abbreviation “LDCT” in the column entitled “Preferential Tariff” in the List of Tariff Provisions and the “F” Staging List.

  • Marginal note:Contents 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 Least Developed Country Tariff, indicate the goods to which that Tariff is extended;

    • (c) may exempt the 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 Least Developed Country Tariff, indicate the goods to which the General Preferential Tariff applies as a consequence.

  • 1997, c. 36, s. 38
  • 2011, c. 24, s. 119
 
Date modified: