Canada–Honduras Economic Growth and Prosperity Act (S.C. 2014, c. 14)
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Assented to 2014-06-19
PART 2RELATED AMENDMENTS
R.S., c. 1 (2nd Supp.)Customs Act
25. Part 1 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Honduras” in column 1, a corresponding reference to “CHFTA” in column 2 and a corresponding reference to “Honduras Tariff rates of customs duty under the Customs Tariff” in column 3.
26. Part 2 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CHFTA” in column 1 and a corresponding reference to “Article 4.1” in column 2.
27. Part 3 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Honduras” in column 1 and a corresponding reference to “paragraph 1 of Article 5.10 or paragraph 11 of Article 6.2 of CHFTA” in column 2.
28. Part 4 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Honduras” in column 1 and a corresponding reference to “CHFTA” in column 2.
29. Part 5 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CHFTA” in column 1 and a corresponding reference to “Chapter Five” in column 2.
R.S., c. 17 (2nd Supp.)Commercial Arbitration Act
30. Schedule 2 of the Commercial Arbitration Act is amended by adding, at the end of column 1, a reference to “Articles 10.19 or 10.20” and a corresponding reference to “Free Trade Agreement between Canada and the Republic of Honduras, done at Ottawa on November 5, 2013” at the end of column 2.
R.S., c. 47 (4th Supp.)Canadian International Trade Tribunal Act
31. (1) The definition “textile and apparel goods” in subsection 2(1) of the Canadian International Trade Tribunal Act is replaced by the following:
“textile and apparel goods”
« produits textiles et vêtements »
“textile and apparel goods” means the textile and apparel goods set out in Appendix 1.1 of Annex 300-B of the Agreement, in Appendix 1.1 of Annex C-00-B of the CCFTA, in Appendix III.1.1.1 of Annex III.1 of the CCRFTA or in section 1 of Annex 3.1 of the CHFTA, as the case may be;
(2) Section 2 of the Act is amended by adding the following after subsection (4.3):
Marginal note:Definitions
(4.4) In this Act,
(a) “CHFTA” has the same meaning as “Agreement” in section 2 of the Canada–Honduras Economic Growth and Prosperity Act; and
(b) “Honduras Tariff” means the rates of customs duty referred to in section 49.6 of the Customs Tariff.
(3) Subsection 2(5) of the Act is amended by the adding, in alphabetical order, a reference to “Honduras” in the list of countries.
32. The Act is amended by adding the following after section 19.018:
Definition of “principal cause”
19.019 (1) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat.
Marginal note:Emergency measures — Honduras
(2) The Tribunal shall inquire into and report to the Governor in Council on the question whether goods that are entitled to the benefit of the Honduras 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 threat of serious injury, to domestic producers of like or directly competitive goods, if the Governor in Council, on the recommendation of the Minister, refers the question to it for inquiry and report.
Marginal note:Terms of reference
(3) The Tribunal shall conduct an inquiry under subsection (2) and prepare its report in accordance with the terms of reference established by the Governor in Council or the Minister, as the case may be.
Marginal note:Tabling of report
(4) The Minister shall cause a copy of each report submitted to the Governor in Council or the Minister to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the report is so submitted.
Marginal note:Notice of report
(5) The Tribunal shall cause notice of the submission of a report to be published in the Canada Gazette.
33. The Act is amended by adding the following after section 20.05:
Definition of “principal cause”
20.06 (1) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is no less important than any other cause of the serious injury or threat.
Marginal note:Determination in respect of goods imported from Honduras
(2) Where, in an inquiry conducted pursuant to a reference under section 20 into goods imported from Honduras that are specified by the Governor in Council or in an inquiry conducted pursuant to a complaint under subsection 23(1) into goods so imported that are specified by the Tribunal, the Tribunal finds that the specified imported goods and goods of the same kind imported from other countries are being imported in such increased quantities and under such conditions as to be a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, the Tribunal shall determine whether the specified imported goods are a principal cause of the serious injury or threat of serious injury.
Marginal note:Determinations
(3) In the case of an inquiry to which subsection (2) applies, the Tribunal shall include in its report any determinations made under that subsection.
Marginal note:Inquiry under section 30.07
(4) In an inquiry under section 30.07 into goods imported from Honduras conducted pursuant to an extension request, the Tribunal shall determine whether the goods imported from Honduras are a principal cause of the serious injury or threat of serious injury to domestic producers of like or directly competitive goods.
Marginal note:2012, c. 18, s. 18
34. Section 21.1 of the Act is replaced by the following:
Definition of “complaint”
21.1 In sections 23 to 30, “complaint” means a written complaint filed with the Tribunal under any of subsections 23(1) to (1.096) and, for the purposes of those sections, a complaint is properly documented if the Tribunal is satisfied that it contains or is accompanied by the information required by section 23.
35. Section 23 of the Act is amended by adding the following after subsection (1.094):
Marginal note:Filing of complaint — Honduras Tariff
(1.095) Any domestic producer of goods that are like or directly competitive with any goods, other than textile and apparel goods, being imported into Canada and that are entitled to the Honduras Tariff, or any person or association acting on behalf of such a domestic producer, may file a written complaint with the Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities and under such conditions as to alone constitute a cause of serious injury, or threat thereof, to domestic producers of like or directly competitive goods.
Marginal note:Filing of complaint — textile and apparel goods
(1.096) Any domestic producer of any textile and apparel goods that are like or directly competitive with any textile and apparel goods being imported into Canada and that are entitled, either under section 24 of the Customs Tariff or, under section 49.6(8) of the Customs Tariff, to the Honduras Tariff, or any person or association acting on behalf of such a domestic producer, may file a written complaint with the Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities, in absolute terms or relative to the domestic market in Canada for the goods, and under such conditions as to cause serious damage, or actual threat thereof, to domestic producers of like or directly competitive textile or apparel goods.
Marginal note:2009, c. 6, s. 20
36. Paragraph 25(2)(c) of the Act is replaced by the following:
(c) in the case of a complaint filed under subsection 23(1.03), (1.06), (1.08), (1.09), (1.091), (1.092) or (1.096), send to the Minister a copy of the complaint and the information examined by the Tribunal in making its determination.
37. Paragraph 26(1)(a) of the Act is amended by striking out “or” at the end of subparagraph (i.94) and by adding the following after subparagraph (i.94):
(i.95) in the case of a complaint filed under subsection 23(1.095), the goods that are entitled to the Honduras Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat thereof, to domestic producers of like or directly competitive goods,
(i.96) in the case of a complaint filed under subsection 23(1.096), the textile and apparel goods that are entitled to the Honduras Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the market in Canada for the goods, and under such conditions as to alone cause serious damage, or actual threat thereof, to domestic producers of like or directly competitive textile and apparel goods, or
38. Subsection 27(1) of the Act is amended by striking out “or” at the end of paragraph (a.94) and by adding the following after paragraph (a.94):
(a.95) in the case of a complaint filed under subsection 23(1.095), the goods that are entitled to the Honduras Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat thereof, to domestic producers of like or directly competitive goods;
(a.96) in the case of a complaint filed under subsection 23(1.096), the textile and apparel goods that are entitled to the Honduras Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the market in Canada for the goods, and under such conditions as to cause serious damage, or actual threat thereof, to domestic producers of like or directly competitive textile and apparel goods; or
1997, c. 36Customs Tariff
39. Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order:
“Canada–Honduras Free Trade Agreement”
« Accord de libre-échange Canada-Honduras »
“Canada–Honduras Free Trade Agreement” has the same meaning as “Agreement” in section 2 of the Canada–Honduras Economic Growth and Prosperity Act.
“Honduras”
« Honduras »
“Honduras” means the land, maritime areas, and air space under the sovereignty of the Republic of Honduras and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with its domestic law and international law.
40. Subparagraph 14(2)(c)(xii) of the Act is replaced by the following:
(xii) subsection 72(2),
(xiii) subsection 73(1),
(xiv) subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act.
41. Paragraph 24(1)(b) of the Act is amended by adding the following after subparagraph (ix):
(x) subsection 49.6(8).
42. Section 27 of the Act is amended by adding the following in alphabetical order:
“HNT”
« THN »
“HNT” refers to the Honduras Tariff.
43. The Act is amended by adding the following after section 49.5:
Honduras Tariff
Marginal note:Application of HNT
49.6 (1) Subject to section 24, goods that originate in Honduras are entitled to the Honduras Tariff rates of customs duty.
Marginal note:“A” final rate for HNT
(2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “HNT” in relation to goods entitled to the Honduras Tariff, the Honduras Tariff rate of customs duty that applies to those goods is the final rate of “Free”.
Marginal note:“F” staging for HNT
(3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “HNT” in relation to goods entitled to the Honduras Tariff, the Honduras 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 HNT
(4) If “U1” or “U2” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “HNT” in relation to goods entitled to the Honduras Tariff, the Honduras Tariff rate of customs duty that applies to those goods is the initial rate, reduced
(a) if “U1” 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”; and
(b) if “U2” is set out,
(i) effective on the coming into force of this subsection, to six sevenths 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 five sevenths 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 four sevenths 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 three sevenths of the initial rate,
(v) effective on January 1 of the year that is four years after the year of the coming into force of this subsection, to two sevenths of the initial rate,
(vi) effective on January 1 of the year that is five years after the year of the coming into force of this subsection, to one seventh of the initial rate, and
(vii) effective on January 1 of the year that is six 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:Extension of Honduras Tariff
(8) Notwithstanding any other provision of this Act, for the purpose of giving effect to Annex 3.1 of the Canada–Honduras Free Trade Agreement, the Minister may, by order, amend the schedule to extend entitlement to the Honduras Tariff to any imported goods under such conditions as may be specified in the order.
Marginal note:Limits on reduction of duty
(9) The Governor in Council may, on the recommendation of the Minister, by order, specify limits on the aggregate quantity of goods of tariff item Nos. 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 and 1702.90.81 that are entitled to the Honduras Tariff, and the limits apply during the periods and subject to the conditions that may be specified in the order.
44. The Act is amended by adding the following after section 71.6:
Bilateral Emergency Measures — Honduras
Marginal note:Order by Governor in Council
72. (1) This section does not apply in respect of textile and apparel goods set out in section 1 of Annex 3.1 of the Canada–Honduras Free Trade Agreement.
(2) Subject to subsections (3) to (7), 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 19.019(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.095) of that Act, that goods that are entitled to the Honduras 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 49.6;
(b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in the Act or 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 Honduras Tariff, may not exceed the Most-Favoured-Nation Tariff rate of customs duty that was in effect for the corresponding season immediately before the coming into force of this subsection; and
(c) in respect of goods other than goods referred to in paragraph (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 Honduras 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 immediately before the coming into force of this subsection.
Marginal note:Terms and conditions
(3) An order under subsection (2)
(a) may not be made more than twice during the period beginning on the coming into force of this subsection and ending on the date that is eight years after the coming into force of this subsection in respect of goods of a particular kind;
(b) remains in effect only for the period, not exceeding three years, that is specified in the order; and
(c) may be made after the date that is eight years after the coming into force of this subsection if the order is based on an agreement between the Government of Canada and the Government of the Republic of Honduras relating to the application of subsection (2).
Marginal note:Application of measures a second time
(4) A measure referred to in an order made under subsection (2) may be applied a second time if
(a) the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application;
(b) the rate of duty for the first year of the second action is not greater than the rate that would be in effect in accordance with section 49.6, at the time the first action was imposed; and
(c) the rate of duty applicable to any subsequent year is reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for section 49.6 for that year.
Marginal note:Rate of duty when order ceases to have effect
(5) If an order made under subsection (2) ceases to have effect in a particular calendar year
(a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would otherwise have been applicable one year after the making of the order, as reduced in accordance with section 49.6; and
(b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (6).
Marginal note:Specification of applicable rate
(6) For the purposes of subsection (5), the Minister shall, by order, specify that the rate referred to in paragraph (5)(b) is
(a) the rate of customs duty that would have been applicable on January 1 of the year after the year in which the order ceases to have effect, if the rate of customs duty had been reduced in accordance with section 49.6, reduced for subsequent years in accordance with that section; or
(b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages beginning on January 1 of the year after the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 49.6.
Definition of “principal cause”
(7) 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.
Bilateral Emergency Measures for Textile and Apparel Goods Imported from Honduras
Marginal note:Order by Governor in Council
73. (1) If it appears to the satisfaction of the Governor in Council, on the basis of a report of the Minister further to a complaint under subsection 23(1.096) of the Canadian International Trade Tribunal Act or as a result of an inquiry made by the Canadian International Trade Tribunal under subparagraph 26(1)(a)(i.96) of that Act, that textile and apparel goods set out in section 1 of Annex 3.1 of the Canada–Honduras Free Trade Agreement and entitled to the Honduras Tariff are being imported in such increased quantities, in absolute terms or relative to the domestic market for the goods, and under such conditions as to cause serious damage or an actual threat of serious damage 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 in respect of the goods that would otherwise be made after that time by virtue of section 49.6; or
(b) make those goods subject to a temporary duty, in addition to any other duty specified in this Act or any other Act of Parliament, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Honduras 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 for the goods in effect when the order is made, and
(ii) the Most-Favoured-Nation Tariff rate for the goods in effect immediately before the coming into force of this subsection.
Marginal note:Terms and conditions
(2) Subject to subsection (3), an order made under subsection (1) remains in effect for a period, not exceeding three years, specified in the order.
Marginal note:Duration of order
(3) If an order is made under subsection (1) on the basis of a report of the Minister, the order ceases to have effect at the end of the one hundred and eightieth day after the day on which the order is made unless, before the order so ceases to have effect, the Canadian International Trade Tribunal reports to the Governor in Council, on the basis of an inquiry made under subparagraph 26(1)(a)(i.96) of the Canadian International Trade Tribunal Act, that the goods described in the report of the Minister are being imported from the country named in the report under such conditions as to cause or threaten serious damage to domestic producers of like or directly competitive goods.
Marginal note:Extension of order
(4) The Governor in Council may, on the recommendation of the Minister, by order, extend the period of an order made as a result of an inquiry of the Canadian International Trade Tribunal made under subparagraph 26(1)(a)(i.96) of the Canadian International Trade Tribunal Act or an order that remains in effect by virtue of subsection (3) on the basis of a report of that Tribunal, but the total period of the order may not exceed three years.
Marginal note:Rate of duty after order ceases to have effect
(5) If an order made under subsection (1) ceases to have effect in a particular calendar year,
(a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would have been applicable one year after the making of the order, as reduced in accordance with section 49.6; and
(b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (6).
Marginal note:Specification of applicable rates
(6) For the purposes of subsection (5), the Minister shall, by order, specify that the rate referred to in paragraph (5)(b) is
(a) the rate of customs duty that would have been applicable on January 1 of the year after the year in which the order ceases to have effect if the rate of customs duty had been reduced in accordance with section 49.6, reduced for subsequent years in accordance with that section; or
(b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages beginning on January 1 of the year after the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 49.6.
Marginal note:Further orders
(7) An order under subsection (1) may not be made more than once during the period beginning on the coming into force of this subsection and ending on the date that is five years after the coming into force of this subsection in respect of goods of a particular kind.
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