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Bill C-81

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Notice of re-deter-
mination by designated officer or Deputy Minister

(6) In addition to the person who accounted for the goods under subsection 32(1), (3) or (5), the importer of the goods or the person who was the owner of the goods at the time of release, any person who has completed and signed a Certificate of Origin for goods for which preferential tariff treatment under a free trade agreement is claimed that are the subject of a determination of origin under this section is entitled to be given notice of the re-determination of the origin of those goods under section 61 or 64 as applied by subsection (4) , as the case may be.

Effect of re-deter-
mination by designated officer

(7) In the case of a re-determination by a designated officer of the origin of goods for which preferential tariff treatment under a free trade agreement is claimed that are the subject of a determination of origin under this section, the reference in subsection 62(1) to ``the person who was given notice of the decision under that section '' and the reference in subsection 62(2) to ``the person referred to in that subsection'' shall be read as a reference to

    (a) in the case of a re-determination under section 60, ``the importer or any person liable to pay duties owing on the goods (other than a person authorized under paragraph 32(6)(a) or subsection 32(7) to account for the goods)''; and

    (b) in the case of a re-determination under section 61, ``the person who accounted for the goods under subsection 32(1), (3) or (5), the importer of the goods or the person who was the owner of the goods at the time of release''.

Effect of re-deter-
mination by Deputy Minister

(8) In the case of a re-determination by the Deputy Minister of the origin of goods for which preferential tariff treatment under a free trade agreement is claimed that are the subject of a determination of origin under this section, the reference in subsection 65(1) to ``the person who is given notice of the decision under that section '' and the reference in subsection 65(2) to ``the person'' shall be read as a reference to

    (a) in the case of a re-determination under section 63 of a re-determination by a designated officer under section 60, ``the importer or any person liable to pay duties owing on the goods (other than a person authorized under paragraph 32(6)(a) or subsection 32(7) to account for the goods)''; and

    (b) in the case of a re-determination under section 63 of a re-determination by a designated officer under section 61 or in the case of a re-determination under section 64, ``the person who accounted for the goods under subsection 32(1), (3) or (5), the importer of the goods or the person who was the owner of the goods at the time of release''.

41. Section 64 of the Act is amended by adding the following after paragraph (a.1):

    (a.2) in the case of a determination of origin, if a verification of origin of those goods under this Act is conducted after a refund is granted under paragraph 74(1)(c.1) or (c.11),

      (i) within two years after the determination of origin was made under section 57.2, or

      (ii) if an election to average has been made under section 13 of the Customs Tariff, within any further time that may be prescribed,

1996, c. 33, s. 35

42. Section 72 of the Act is replaced by the following:

Limitation relating to security

72. No security may be given under paragraph 58(2)(a), 62(1)(a) or 65(1)(a) or subsection 69(1) in respect of any amount owing as surtaxes levied under section 59 or 59.1 of the Customs Tariff, temporary duties levied under section 60.1, 60.11, 60.12, 60.13 , 60.2, 60.3, 60.4 or 60.41 of that Act or surcharges levied under section 61 of that Act.

1996, c. 33, s. 36(1)

43. (1) Paragraph 74(1)(c.1) of the Act is replaced by the following:

    (c.1) the goods were exported from a NAFTA country or from Chile but no claim for preferential tariff treatment under NAFTA or no claim for preferential tariff treatment under CCFTA, as the case may be , was made in respect of those goods at the time they were accounted for under subsection 32(1), (3) or (5);

1988, c. 65, s. 72; 1996, c. 33, s. 36(1)

(2) Subsection 74(1) of the Act is amended by adding the word ``or'' at the end of paragraph (c.11) and by replacing paragraphs (c.2) and (d) with the following:

    (d) duties have been overpaid or paid in error on the goods for any reason, other than

      (i) an erroneous determination as to the origin of goods for which preferential tariff treatment under a free trade agreement was claimed,

      (ii) an erroneous determination of tariff classification,

      (iii) an erroneous appraisal of value for duty, or

      (iv) the existence of the circumstances described in paragraph (c.1) or (c.11).

1993, c. 44, s. 98(2); 1996, c. 33, s. 36(2)

(3) Subsections 74(1.1) and (1.2) of the Act are replaced by the following:

No request under subsection 60(1)

(1.1) For greater certainty, if the circumstances described in paragraph (1)(c.1) or (c.11) exist, a request for a re-determination of origin may not be made under subsection 60(1) as applied by subsection 57.2(4) .

1993, c. 44, s. 98(3); 1996, c. 33, s. 36(3)

(4) Subparagraphs 74(3)(b)(i) and (ii) of the Act are replaced by the following:

      (i) in the case of an application for a refund under paragraph (1)(a), (b), (c), (c.11) or (d), two years after the goods were accounted for under subsection 32(1), (3) or (5), and

      (ii) in the case of an application for a refund under paragraph (1)(c.1), one year after the goods were accounted for under subsection 32(1), (3) or (5).

1993, c. 44, s. 98(4); 1996, c. 33, s. 36(4)

(5) Subsections 74(4) to (6) of the Act are replaced by the following:

Effect of denial of refund under paragraph (1)(c.1) or (c.11)

(4) A denial of an application for a refund under paragraph (1)(c.1) or (c.11) on the ground that the goods on which the claimant has paid duties are not eligible for preferential tariff treatment under a free trade agreement because the goods are not eligible for that tariff treatment under the regulations made under section 13 of the Customs Tariff at the time they were accounted for under subsection 32(1), (3) or (5) of this Act shall, for the purposes of this Act, be treated as if it were a re-determination of origin under subsection 60(3) as applied by subsection 57.2(4) .

Effect of denial of refund under paragraph (1)(c.1) or (c.11)

(5) For greater certainty, a denial of an application for a refund under paragraph (1)(c.1) or (c.11) on the basis that complete or accurate documentation has not been provided or on any ground other than the ground specified in subsection (4), as the case may be, shall not, for the purposes of this Act, be treated as if it were a re-determination of origin under this Act.

Effect of granting of refund under paragraph (1)(c.1) or (c.11)

(6) The granting of a refund under paragraph (1)(c.1) or (c.11) shall, for the purposes of this Act, other than section 66, be treated in the same manner as if it were a re-determination of origin under subsection 60(3) as applied by subsection 57.2(4) .

1988, c. 65, s. 78; 1993, c. 44, s. 103; 1996, c. 33, s. 37

44. Sections 97.01 to 97.11 of the Act are replaced by the following:

Certificate of Origin of goods exported to a free trade partner

97.1 (1) Every exporter of goods to a free trade partner for which preferential tariff treatment under a free trade agreement will be claimed in accordance with the laws of that free trade partner shall certify in writing in the prescribed form and containing the prescribed information that goods exported or to be exported from Canada to that free trade partner meet the rules of origin set out in, or contemplated by, the applicable free trade agreement and, if the exporter is not the producer of the goods, the certificate shall be completed and signed by the exporter on the basis of the prescribed criteria.

Provision of copy of Certificate of Origin

(2) Every exporter or producer of goods who, for the purpose of enabling any person to comply with the applicable laws relating to customs of a free trade partner , completes and signs a certificate in accordance with subsection (1) shall, at the request of an officer, provide the officer with a copy of the certificate.

Notification of correct information

(3) A person who has completed and signed a certificate in accordance with subsection (1) and who has reason to believe that it contains incorrect information shall immediately notify all persons to whom the certificate was given of the correct information.

1996, c. 33, s. 38

45. Subsection 97.2(1) of the Act is replaced by the following:

Exporters' or producers' records

97.2 (1) Every person who exports goods or causes them to be exported for sale or for any industrial, occupational, commercial, institutional or other like use or any other use that may be prescribed, and every other person who has completed and signed a certificate in accordance with subsection 97.1(1) , shall keep at the place of business in Canada of that person or at any other place in Canada that may be designated by the Minister any records in respect of those goods in the manner and for the period that may be prescribed and shall, if an officer so requests, make them available to the officer and answer truthfully any questions asked by the officer in respect of the records.

1996, c. 33, s. 39

46. Paragraph 153(a.1) of the Act is replaced by the following:

    (a.1) make, or participate in, assent to or acquiesce in the making of, false or deceptive statements in an application for an advance ruling under section 43.1 or a certificate referred to in section 97.1;

47. (1) Section 164 of the Act is amended by adding the following after subsection (1.1):

Uniform Regulations

(1.2) The Governor in Council may, on the recommendation of the Minister, make regulations for the purpose of the uniform interpretation, application and administration of Chapters C and E of CCFTA and any other matters that may be agreed on from time to time by the parties to CCFTA.

1993, c. 44, s. 108(2)

(2) Paragraph 164(4)(a.01) of the Act is replaced by the following:

    (a.01) implements, in whole or in part, a provision of a free trade agreement ;

1988, c. 65, s. 81; 1996, c. 33, s. 40

(3) Paragraphs 164(4)(a.03) and (a.1) of the Act are repealed.

R.S., c. 41 (3rd Supp.)

Customs Tariff

48. (1) Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order:

``Canada-
Chile Free Trade Agreement''
« Accord de libre-échange Canada - Chili »

``Canada-Chile Free Trade Agreement'' has the same meaning as ``Agreement'' in subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act;

``Chile''
« Chili »

``Chile'' means the land, maritime, and air space under its sovereignty, and the exclusive economic zone and the continental shelf over which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law;

``Chile Tariff''
« tarif du Chili »

``Chile Tariff'' means the rates of customs duty established by section 25.4;

``free trade partner''
« partenaire de libre-
échange
»

``free trade partner'' means

      (a) a NAFTA country,

      (b) Chile, or

      (c) Israel or another CIFTA beneficiary;

1993, c. 44, s. 109(3)

(2) Subsection 2(2) of the Act is replaced by the following:

Goods imported from a NAFTA country or from Chile

(2) For the purposes of this Act, goods are imported from a NAFTA country or from Chile if they are shipped directly to Canada from the NAFTA country or from Chile, as the case may be .

49. Section 7 of the Act is amended by adding the following after subsection (3):

Abbreviation

(4) For the purposes of Schedule I, the abbreviation ``CCFTA'' refers to the ``Canada-Chile Free Trade Agreement''.

1993, c. 44, s. 114

50. Subsection 21(5) of the Act is replaced by the following:

If there is no rate

(5) The symbol ``N/A'', where it appears in the column ``Mexico Tariff'', ``Mexico-United States Tariff'', ``Chile Tariff '', ``NAFTA Staging Category'', ``MFN Staging Category'' or ``CCFTA Staging Category '' of a tariff item in Schedule I, indicates that there is no Mexico Tariff, Mexico-United States Tariff or Chile Tariff rate of customs duty or tariff reduction in stages as specified in subsection 25.2(3) or (3.1) or section 25.4 , as the case may be, for that tariff item.

51. The Act is amended by adding the following after section 25.3:

Canada-Chile Free Trade Agreement

Chile Tariff

Application of Tariff

25.4 (1) Subject to subsections (2) to (6) and sections 25.5 to 25.8, goods that originate in Chile are entitled to the rates of customs duty, if any, set out with respect to those goods in the column ``Chile Tariff'' of Schedule I.

Staging

(2) Subject to section 25.7, if ``A'' appears in the column ``CCFTA Staging Category'' of Schedule I in relation to goods entitled to the Chile Tariff, the rate of customs duty set out with respect to those goods is free.

Staging

(3) Subject to section 25.7, if ``A-'', ``B-'', ``Ba'', ``B'' or ``X'' appears in the column ``CCFTA Staging Category'' of Schedule I in relation to goods entitled to the Chile Tariff, the rate of customs duty that applies to those goods is the rate set out in the column ``Chile Tariff'' and shall be reduced

    (a) if ``A-'' appears,

      (i) effective on January 1, 1998, to one half of the rate set out in the column ``Chile Tariff'', and

      (ii) effective on January 1, 1999, to free;

    (b) if ``B-'' appears,

      (i) effective on January 1, 1998, to 71.4% of the rate set out in the column ``Chile Tariff'',

      (ii) effective on January 1, 1999, to 57.1% of the rate set out in the column ``Chile Tariff'',

      (iii) effective on January 1, 2000, to 42.9% of the rate set out in the column ``Chile Tariff'', and

      (iv) effective on January 1, 2001, to free;

    (c) if ``Ba'' appears,

      (i) effective on January 1, 1998, to four fifths of the rate set out in the column ``Chile Tariff'',

      (ii) effective on January 1, 1999, to three fifths of the rate set out in the column ``Chile Tariff'',

      (iii) effective on January 1, 2000, to two fifths of the rate set out in the column ``Chile Tariff'',

      (iv) effective on January 1, 2001, to one fifth of the rate set out in the column ``Chile Tariff'', and

      (v) effective on January 1, 2002, to free;

    (d) if ``B'' appears,

      (i) effective on January 1, 1998, to five sixths of the rate set out in the column ``Chile Tariff'',

      (ii) effective on January 1, 1999, to four sixths of the rate set out in the column ``Chile Tariff'',

      (iii) effective on January 1, 2000, to three sixths of the rate set out in the column ``Chile Tariff'',

      (iv) effective on January 1, 2001, to two sixths of the rate set out in the column ``Chile Tariff'',

      (v) effective on January 1, 2002, to one sixth of the rate set out in the column ``Chile Tariff'', and

      (vi) effective on January 1, 2003, to free; and

    (e) if ``X'' appears, effective on January 1, 2003, to free.