August 22, 2019
The Government of Canada published an amendment to the Customs Tariff to correct a few errors in the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) preferential tariffs.
Canada granted, by mistake, duty-free status to 14 tariff items as from the entry into force of the Agreement on December 30, 2018, rather than gradually phasing out tariffs on these goods over time as negotiated. The goods affected are hybrid-powertrain and solely-battery-electric powertrain passenger automobiles, buses, as well as certain textile floor coverings.
For another tariff item, the CPTPP preferential tariffs were implemented with a gradual phase-out of the CPTPP preferential tariffs, whereas the preferential tariffs should have been duty-free as from the entry into force of the Agreement. The goods affected are certain rubber tires.
The Order Amending the Schedule to the Customs Tariff (CPTPP) amends the staging categories in the Customs Tariff for CPTPP preferential tariffs for hybrid-powertrain and solely-battery-electric powertrain passenger automobiles, buses, certain textile floor coverings, so that they are assigned to properly reflect the negotiated tariff commitments by Canada in the CPTPP for these goods.
The revised tariffs on these goods apply on a forward basis only and duties will not be retroactively assessed on importations between December 30, 2018, and the entry into force of this Order. Goods already in transit to Canada as of the date the Order is made will receive the benefit of the duty-free treatment that Canada has applied to date on these goods.
The CPTPP Remission Order remits customs duties paid on importations, between December 30, 2018, and the entry into force of this Order, of the affected miscellaneous rubber tires under the CPTPP tariff treatment.
Link: Customs Notice 19-16 Amendment to the Departmental Consolidation of the Customs Tariff