His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement the Free Trade Agreement between Canada and Ukraine”.

This enactment implements the Free Trade Agreement between Canada and Ukraine, done at Kyiv on July 11, 2016.

The general provisions of the enactment set out rules of interpretation and specify that no recourse may be taken on the basis of sections 9 to 15 or any order made under those sections, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada.

Part 1 approves the Agreement, provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of the Agreement, and gives the Governor in Council the power to make orders in accordance with the Agreement.

Part 2 amends certain Acts to bring them into conformity with Canada’s obligations under the Agreement.

Part 3 contains coordinating amendments and the coming into force provision.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Ukraine has the same meaning as in subsection 2(1) of the Customs Tariff; (Ukraine)

CUFTA has the same meaning as Agreement in section 2 of the Canada–Ukraine Free Trade Agreement Implementation Act; (ALÉCU)

Ukraine has the same meaning as in subsection 2(1) of the Customs Tariff; (Ukraine)

• (a) conduct a verification of origin of goods for which preferential tariff treatment under a free trade agreement, other than a free trade agreement referred to in subsection (1.‍1), is claimed

Method of verification — certain agreements

(1.‍1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, or any person, or any person within a class of persons, designated by the President to act on behalf of such an officer, may, subject to any prescribed conditions, conduct any of the following:

• (a) a verification of origin of goods for which preferential tariff treatment under CEFTA is claimed, by requesting in writing that the customs administration of the EFTA state of export conduct a verification and provide an opinion as to whether the goods are originating within the meaning of Annex C of CEFTA;

• (b) a verification of origin of goods for which preferential tariff treatment under CUFTA is claimed, by requesting in writing that the customs administration of Ukraine conduct a verification and provide a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA.

Withdrawal of preferential tariff treatment

(2) If an exporter or producer of goods that are subject to a verification of origin under paragraph (1)‍(a) fails to comply with the prescribed requirements or, in the case of a verification of origin under subparagraph (1)‍(a)‍(i), does not consent to the verification of origin in the prescribed manner and within the prescribed time, preferential tariff treatment under a free trade agreement, other than a free trade agreement referred to in subsection (1.‍1), may be denied or withdrawn from the goods.

Withdrawal of preferential tariff treatment — certain agreements

(3) Preferential tariff treatment under a free trade agreement referred to in subsection (1.‍1) may be denied or withdrawn from the goods in any of the following circumstances:

• (a) in the case of CEFTA, if the EFTA state of export fails to conduct a verification or provide an opinion as to whether the goods are originating;

• (a.‍1) in the case of CUFTA, if Ukraine fails to conduct a verification or provide a written report as to whether the goods are originating;

Verification of origin — certain agreements

97.‍201 (1) The customs administration of any state referred to in subsection 42.‍1(1.‍1) to which goods were exported may request in writing that the Agency conduct a verification and provide, as the case may be

• (a) an opinion as to whether those goods are originating within the meaning of Annex C of CEFTA; or

• (b) a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA.

Statement of origin — certain agreements

(3) On completion of a verification of origin requested under subsection (1), an officer or other person designated under subsection (2) shall

• (a) provide, in the prescribed manner, the customs administration of the state with the opinion or written report requested and any relevant supporting documents that may be requested by that customs administration; and

• (b) determine whether the goods are originating within the meaning of the applicable provision referred to in subsection (1).

Definition of Ukraine Tariff

(4.‍6) In this Act, Ukraine Tariff means the rates of customs duty referred to in section 52.‍5 of the Customs Tariff.

Definition of principal cause

19.‍0192 (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.

Emergency measures — Ukraine

(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 Ukraine 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.

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.

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.

Notice of report

(5) The Tribunal shall cause notice of the submission of a report to be published in the Canada Gazette.

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 (1.‍098) 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.

Filing of complaint — Ukraine Tariff

(1.‍098) Any domestic producer of goods that are like or directly competitive with any goods being imported into Canada and that are entitled to the Ukraine 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 production of like or directly competitive goods, and under such conditions as to constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods.

• (i.‍98) in the case of a complaint filed under subsection 23(1.‍098), the goods that are entitled to the Ukraine 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 cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, or

• (a.‍98) in the case of a complaint filed under subsection 23(1.‍098), the goods that are entitled to the Ukraine 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; or

Canada–Ukraine Free Trade Agreement has the same meaning as Agreement in section 2 of the Canada–Ukraine Free Trade Agreement Implementation Act.‍ (Accord de libre-échange Canada–Ukraine)

Ukraine means

• (a) the land territory, air space, internal waters and territorial sea of Ukraine;

• (b) the exclusive economic zone of Ukraine, as determined by its domestic law, consistent with Part V of UNCLOS; and

• (c) the continental shelf of Ukraine, as determined by its domestic law, consistent with Part VI of UNCLOS. (Ukraine)

UNCLOS means the United Nations Convention on the Law of the Sea, done at Montego Bay on December 10, 1982. (CNUDM)

• (xvi) subsection 75(1),

• (xvii) subsection 5(3), (3.‍2) or (4.‍1) of the Export and Import Permits Act.

UAT refers to the Ukraine Tariff.‍ (TUA)

Ukraine Tariff

Application of UAT

52.‍5 (1) Subject to section 24, goods that originate in Ukraine are entitled to the Ukraine Tariff rates of customs duty.

“A” final rate for UAT

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

“F” staging for UAT

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

Bilateral Emergency Measures — Ukraine

Order by Governor in Council

75 (1) Subject to subsections (2) to (4), 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 19.‍0192(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.‍098) of that Act, that goods that are entitled to the Ukraine 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 52.‍5;

• (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 Ukraine Tariff that is in effect in respect of those goods at that time, is not to 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 Ukraine Tariff that is in effect in respect of those goods at that time, is not to 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.

Terms and conditions

(2) An order referred to in subsection (1)

• (a) is not to be made more than once in respect of goods of any particular kind;

• (b) remains in effect only for the period, not exceeding three years, that is specified in the order; and

• (c) may be in effect during the period beginning on the day on which this section comes into force and ending on the day before the seventh anniversary of the day on which this section comes into force.

Rate of duty when order ceases to have effect

(3) When an order made under subsection (1) ceases to have effect, the rate of customs duty applicable to the goods is the rate of customs duty that is applicable in accordance with section 52.‍5.

Definition of principal cause

(4) 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.

• (p) subsection 75(1).

(2) Subsection 42.‍1(1.‍1) of the Act is amended by adding the following after paragraph (b):

(2) Subsection 42.‍1(1.‍1) of the Act is amended by adding the following after paragraph (b):

(3) Subsection 42.‍1(3) of the Act is amended by adding the following after paragraph (a.‍1):

(3) Subsection 42.‍1(3) of the Act is amended by adding the following after paragraph (a.‍1):

Verification of origin — certain agreements

97.‍201 (1) The customs administration of any state or beneficiary referred to in subsection 42.‍1(1.‍1) to which goods were exported may request in writing that the Agency conduct a verification and provide, as the case may be

• (a) an opinion as to whether those goods are originating within the meaning of Annex C of CEFTA;

• (b) a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA; or

• (c) a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA.

SCHEDULE 3