Canada–Korea Economic Growth and Prosperity Act (S.C. 2014, c. 28)
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Assented to 2014-11-26
1997, c. 36Customs Tariff
43. Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order:
“Canada–Korea Free Trade Agreement”
« Accord de libre-échange Canada-Corée »
“Canada–Korea Free Trade Agreement” has the same meaning as “Agreement” in section 2 of the Canada–Korea Economic Growth and Prosperity Act.
“Korea”
« Corée »
“Korea” means the land, maritime areas and air space under the sovereignty of the Republic of Korea, and those maritime areas, including the seabed and subsoil adjacent to and beyond the outer limit of the territorial seas, over which the Republic of Korea may exercise sovereign rights or jurisdiction in accordance with international law and its domestic law.
44. Section 5 of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.
Marginal note:2014, c. 14, s. 40
45. Subparagraph 14(2)(c)(xiv) of the Act is replaced by the following:
(xiv) subsection 74(1),
(xv) subsection 74(2),
(xvi) subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act.
46. Section 27 of the Act is amended by adding the following in alphabetical order:
“KRT”
« TKR »
“KRT” refers to the Korea Tariff.
47. The Act is amended by adding the following after section 49.6:
Korea Tariff
Marginal note:Application of KRT
49.7 (1) Subject to section 24, goods that originate in Korea are entitled to the Korea Tariff rates of customs duty.
Marginal note:“A” final rate for KRT
(2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “KRT” in relation to goods entitled to the Korea Tariff, the Korea Tariff rate of customs duty that applies to those goods is the final rate of “Free”.
Marginal note:“F” staging for KRT
(3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “KRT” in relation to goods entitled to the Korea Tariff, the Korea 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 KRT
(4) If “V1”, “V2”, “V3” or “V4” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “KRT” in relation to goods entitled to the Korea Tariff, the Korea Tariff rate of customs duty that applies to those goods is the initial rate, reduced
(a) if “V1” is set out,
(i) effective on the coming into force of this subsection, to 66.7% of the initial rate,
(ii) effective on the day that is one year after the day on which this subsection comes into force, to 33.3% of the initial rate, and
(iii) effective on the day that is two years after the day on which this subsection comes into force, to the final rate of “Free”;
(b) if “V2” is set out,
(i) effective on the coming into force of this subsection, to 80% of the initial rate,
(ii) effective on the day that is one year after the day on which this subsection comes into force, to 60% of the initial rate,
(iii) effective on the day that is two years after the day on which this subsection comes into force, to 40% of the initial rate,
(iv) effective on the day that is three years after the day on which this subsection comes into force, to 20% of the initial rate, and
(v) effective on the day that is four years after the day on which this subsection comes into force, to the final rate of “Free”;
(c) if “V3” is set out,
(i) effective on the coming into force of this subsection, to 90% of the initial rate,
(ii) effective on the day that is one year after the day on which this subsection comes into force, to 80% of the initial rate,
(iii) effective on the day that is two years after the day on which this subsection comes into force, to 70% of the initial rate,
(iv) effective on the day that is three years after the day on which this subsection comes into force, to 60% of the initial rate,
(v) effective on the day that is four years after the day on which this subsection comes into force, to 50% of the initial rate,
(vi) effective on the day that is five years after the day on which this subsection comes into force, to 40% of the initial rate,
(vii) effective on the day that is six years after the day on which this subsection comes into force, to 30% of the initial rate,
(viii) effective on the day that is seven years after the day on which this subsection comes into force, to 20% of the initial rate,
(ix) effective on the day that is eight years after the day on which this subsection comes into force, to 10% of the initial rate, and
(x) effective on the day that is nine years after the day on which this subsection comes into force, to the final rate of “Free”; and
(d) if “V4” is set out,
(i) effective on the coming into force of this subsection, to 90.9% of the initial rate,
(ii) effective on the day that is one year after the day on which this subsection comes into force, to 81.8% of the initial rate,
(iii) effective on the day that is two years after the day on which this subsection comes into force, to 72.7% of the initial rate,
(iv) effective on the day that is three years after the day on which this subsection comes into force, to 63.6% of the initial rate,
(v) effective on the day that is four years after the day on which this subsection comes into force, to 54.5% of the initial rate,
(vi) effective on the day that is five years after the day on which this subsection comes into force, to 45.5% of the initial rate,
(vii) effective on the day that is six years after the day on which this subsection comes into force, to 36.4% of the initial rate,
(viii) effective on the day that is seven years after the day on which this subsection comes into force, to 27.3% of the initial rate,
(ix) effective on the day that is eight years after the day on which this subsection comes into force, to 18.2 per cent of the initial rate,
(x) effective on the day that is nine years after the day on which this subsection comes into force, to 9.1% of the initial rate, and
(xi) effective on the day that is ten years after the day on which this subsection 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 — fraction other than 0.5
(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 less than 2%
(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.
48. The definition “principal cause” in section 54 of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.
49. Section 59.1 of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.
50. Subsection 63(4.1) of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.
51. The Act is amended by adding the following after section 73:
Bilateral Emergency Measures — Korea
Marginal note:Order by Governor in Council
74. (1) Subject to subsections (3) to (9), 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 19.0191(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.097) of that Act, that goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone 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 49.7;
(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 this 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 Korea 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 was in effect in respect of those goods for the corresponding season immediately before the order is made, and
(ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods 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 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 Korea 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:Critical circumstances
(2) Subject to subsections (3) to (9), if at any time it appears to the satisfaction of the Governor in Council, further to an allegation filed under subsection 30.28(1) of the Canadian International Trade Tribunal Act, that there are critical circumstances resulting from the fact that goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities 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 49.7;
(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 this 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 Korea 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 was in effect in respect of those goods for the corresponding season immediately before the order is made, and
(ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods 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 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 Korea 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:Duration of order under subsection (1)
(3) An order under subsection (1) remains in effect for the period that is specified in the order, which shall not exceed two years. However, if the order results from a complaint filed under subsection 23(1.097) of the Canadian International Trade Tribunal Act and an order under subsection (2) has been made in the context of that complaint, the period shall not exceed two years less the number of days during which the order under subsection (2) was in effect.
Marginal note:Duration of order under subsection (2)
(4) An order under subsection (2) ceases to have effect at the beginning of the two-hundredth day after the day on which the order is made.
Marginal note:Exception — negative determination
(5) Despite subsection (4), if the inquiry made by the Canadian International Trade Tribunal into the complaint filed under subsection 23(1.097) of the Canadian International Trade Tribunal Act does not result in a finding that the goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods,
(a) the order made under subsection (2) in the context of the same complaint ceases to have effect on the day that the Governor in Council receives the resulting report of the Canadian International Trade Tribunal under subsection 29(3) of that Act, and
(b) the Governor in Council may, on the recommendation of the Minister, by order, refund any surtaxes imposed under the order made under subsection (2).
Marginal note:Exception — positive determination
(6) Despite subsection (4), if the inquiry made by the Canadian International Trade Tribunal into the complaint filed under subsection 23(1.097) of the Canadian International Trade Tribunal Act results in a finding that the goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone 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, extend the period of the order made under subsection (2) in the context of the same complaint. The total period of the order is not to exceed two years.
Marginal note:Extension of order
(7) The Governor in Council may, on the recommendation of the Minister, by order, extend the period of an order made under subsection (1) or (2), if it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under section 30.07 of the Canadian International Trade Tribunal Act that the order continues to be necessary to prevent or remedy serious injury to, and to facilitate the adjustment of, domestic producers of like or directly competitive goods, and that there is evidence that the domestic producers are adjusting. The total period of the order is not to exceed four years.
Marginal note:Terms and conditions
(8) An order made under subsection (1) or (2) may be in effect during the period beginning on the day on which this subsection comes into force and ending
(a) if the order is in respect of goods for which the Korea Tariff rate of customs duty is reduced to the final rate of “Free” over a period of less than five years, on the day that is ten years after the expiry of the tariff staging period in respect of those goods; and
(b) if the order is in respect of goods for which the Korea Tariff rate of customs duty is reduced to the final rate of “Free” over a period of five years or more, on the day that is fifteen years after the coming into force of this subsection.
Marginal note:Rate of duty when an order ceases to have effect
(9) If an order made under subsection (1) or (2) 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 49.7.
Definition of “principal cause”
(10) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is not less important than any other cause of the serious injury or threat.
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