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Bill C-81

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Bilateral Emergency Measures - Chile

Non-appli-
cation

60.13 (1) This section does not apply in respect of textile and apparel goods set out in Appendix 1.1 of Annex C-00-B of the Canada-Chile Free Trade Agreement.

Order by Governor in Council

(2) Subject to this section, 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 19.012(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.05) of that Act, that goods of any kind that are entitled to the benefit of the Chile Tariff are, as a result of that entitlement, being imported into Canada 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 of Finance, 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 the Chile Tariff;

    (b) in the case of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, over and above any other duty specified in this Act or in any other law relating to customs, at a rate specified in the order, but no such rate shall, together with the rate of customs duty specified in the Chile Tariff that is in effect with respect to those goods at that time, exceed the Most-Favoured-Nation rate of customs duty that was in effect with respect to such goods in the season for those goods immediately before the coming into force of this section corresponding to the season for those goods during which the temporary duty is imposed; or

    (c) in the case of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, over and above any other duty specified in this Act or in any other law relating to customs, at a rate specified in the order, but no such rate shall, together with the rate of customs duty specified in the Chile Tariff that is in effect in respect of those goods at that time, exceed the lesser of

      (i) the Most-Favoured-Nation rate of customs duty that was in effect in respect of those goods on the day before the coming into force of this section, and

      (ii) the Most-Favoured-Nation rate of customs duty that is in effect in respect of those goods at the time the order is made.

Terms and conditions

(3) An order under subsection (2)

    (a) may not be made more than once during the period beginning on the coming into force of this section and ending on December 31, 2002 in respect of goods of a particular kind and, if made during that period, shall remain in effect for the period, not exceeding three years, that is specified in the order; and

    (b) may only be made after December 31, 2002 pursuant to an agreement between the Government of Canada and the Government of the Republic of Chile relating either generally or specifically to the application of subsection (2).

Rate of duty when order ceases to have effect

(4) If an order made under subsection (2) ceases to have effect in a given 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 on the first anniversary of the making of the order if the rate of customs duty had been reduced in accordance with section 25.4; and

    (b) the rate of customs duty applicable to the goods beginning on January 1 of the year after the year in which the order ceases to have effect is the rate specified by the Minister of Finance under subsection (5).

Specification of applicable rate

(5) The Minister of Finance shall, by order, specify either

    (a) that the rate referred to in paragraph (4)(b) is 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 25.4 and the rate for subsequent years is reduced to free in accordance with that section; or

    (b) that the rate referred to in paragraph (4)(b) is the rate of customs duty that would have been applicable on the first anniversary of the making of the order and the rate is reduced to free 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 free in accordance with section 25.4.

Definition of ``principal cause''

(6) 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.

Reference to customs duty in effect

(7) For the purposes of paragraph (2)(b), a reference to the Most-Favoured-Nation rate of customs duty in effect with respect to a fresh fruit or vegetable shall be read as a reference to

    (a) in respect of a fresh vegetable, the rate of customs duty applicable to that vegetable as enumerated in the applicable tariff item mentioned in Supplementary Note 2(b) in Chapter 7 of Schedule I; or

    (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit as enumerated in the applicable tariff item mentioned in Supplementary Note 4(b) in Chapter 8 of Schedule I.

1994, c. 47, s. 84

59. Subsection 60.2(4) of the Act is replaced by the following:

Where emergency actions taken

(4) No order shall be made in respect of a fresh fruit or vegetable under subsection (1) during any period in which an order made under subsection 59.1(1), (8) or (11) or 60.1(1) of this Act or subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act in respect of the same fresh fruit or vegetable that is entitled to the benefit of the United States Tariff is in force and any such order made under subsection (1) shall not have any force or effect during any such period.

1994, c. 47, s. 85

60. Subsection 60.3(4) of the Act is replaced by the following:

Application of special measures

(4) Any order made under subsection 59.1(1), (8) or (11) of this Act or subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act shall have effect in respect of goods referred to in subsection (2) only during any period in which the limits specified under subsection (3) for those goods have not been exceeded.

1993, c. 44, s. 130

61. The heading before section 60.4 of the Act is replaced by the following:

Bilateral Emergency Measures for Textile and Apparel Goods Imported from a NAFTA Country

62. The Act is amended by adding the following after section 60.4:

Bilateral Emergency Measures for Textile and Apparel Goods Imported from Chile

Order by Governor in Council

60.41 (1) The Governor in Council may, on the recommendation of the Minister of Finance, make an order as described in subsection (2) if it appears to the satisfaction of the Governor in Council on the basis of

    (a) a report of the Minister of Finance as a result of a complaint under subsection 23(1.06) of the Canadian International Trade Tribunal Act, or

    (b) an inquiry made by the Canadian International Trade Tribunal under subparagraph 26(1)(a)(i.6) of that Act,

that textile and apparel goods set out in Appendix 1.1 of Annex C-00-B of the Canada-Chile Free Trade Agreement that are entitled to the benefit of the Chile Tariff are being imported into Canada 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 injury to domestic producers of like or directly competitive goods.

Terms of order

(2) The order may

    (a) suspend any further reduction of any rate of customs duty with respect to the goods that would otherwise result under section 25.4; or

    (b) impose, in addition to any other duty imposed under this or any other Act, a temporary duty on the goods at a rate specified in the order.

Limit on amount of temporary duty

(3) The rate of temporary duty imposed under paragraph (2)(b) must not, when added to the rate of customs duty specified in Schedule I for the goods, exceed the lesser of

    (a) the Most-Favoured-Nation Tariff rate for the goods that is in effect when the order is made, and

    (b) the Most-Favoured-Nation Tariff rate for the goods that is in effect on June 1, 1997.

Period and revocation

(4) Every order made under subsection (1)

    (a) remains in effect, subject to this section, for the period, not exceeding three years, that is specified in the order; and

    (b) may, notwithstanding any other provision of this section, be revoked at any time by the Governor in Council on the recommendation of the Minister of Finance.

Duration of order

(5) If an order is made under subsection (1) on the basis of a report of the Minister of Finance, the order ceases to have effect on the expiration of the one hundred and eightieth day after the day the order is made unless, before the order so ceases to have effect, the Canadian International Trade Tribunal reports to the Governor in Council pursuant to an inquiry under subparagraph 26(1)(a)(i.6) of the Canadian International Trade Tribunal Act that the goods described in the report of the Minister of Finance are being imported into Canada from Chile under such conditions as to cause serious damage or an actual threat of serious damage to domestic producers of like or directly competitive goods, in which case the order shall remain in effect for the period, not exceeding three years, that is specified in the order.

Extension of order

(6) The Governor in Council may, on the recommendation of the Minister of Finance, by order, extend the effective period of an order made as a result of an inquiry of the Canadian International Trade Tribunal referred to in paragraph (1)(b) or an order that remains in effect as a result of a report of that Tribunal, as provided in subsection (5), but the total effective period shall not exceed three years.

Rate of duty after order ceases to have effect

(7) Where an order made under subsection (1) ceases to have effect in a given 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 shall be the rate that would have been applicable on the first anniversary of the making of the order if the rate of customs duty had been reduced in accordance with section 25.4; and

    (b) the rate of customs duty applicable to the goods beginning on January 1 of the year after the year in which the order ceases to have effect shall be the rate specified by the Minister of Finance pursuant to subsection (8).

Specification of applicable rate

(8) The Minister of Finance shall, by order, specify either

    (a) that the rate referred to in paragraph (7)(b) shall be 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 25.4 and the rate for subsequent years shall be reduced to free in accordance with that section; or

    (b) that the rate referred to in paragraph (7)(b) shall be the rate of customs duty that would have been applicable on the first anniversary of the making of the order and the rate shall be reduced to free 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 free in accordance with section 25.4.

Further orders

(9) An order made under subsection (1) shall not be made more than once during the period beginning on the day this section comes into force and ending on June 1, 2003 in respect of goods of a particular kind.

1996, c. 33, s. 50

63. Paragraph 62(1)(c) of the Act is replaced by the following:

    (c) reduce or remove customs duties on goods imported, whether before or after the order comes into force, from any country by way of compensation for any action taken under subsection 59.1(1), (8) or (11), 60.1(1), 60.11(2), 60.12(1), 60.13(2) , 60.4(1) or 60.41(1) of this Act or under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act.

1996, c. 33, s. 51

64. The definition ``customs duties'' in section 66 of the Act is replaced by the following:

``customs duties''
« droits de douane »

``customs duties'' means the customs duties imposed under Part I, other than surtaxes imposed under section 59, 59.1 or 60.01, temporary duties imposed under section 60.1, 60.12, 60.13 , 60.2 or 60.41 or surcharges imposed under section 61;

1996, c. 33, s. 52

65. Subsection 83.01(1) of the Act is replaced by the following:

Definition of ``customs duties''

83.01 (1) In sections 83.02 and 83.03, ``customs duties'' means any customs duties imposed on imported goods under Part I, other than additional customs duties levied under section 20, or surtaxes imposed under section 59, 59.1 or 60.01, temporary duties imposed under section 60.1, 60.11, 60.12, 60.13 , 60.2, 60.4 or 60.41 or surcharges imposed under section 61.

1996, c. 33, s. 53

66. (1) Subparagraph 95(1)(a)(iii) of the Act is replaced by the following:

      (iii) the circumstances in which, and the classes of goods in respect of which, no relief of duties levied under section 20 or levied under the Special Import Measures Act, surtax imposed under section 59 or 59.1, temporary duty imposed under section 60.1, 60.11, 60.12, 60.13 , 60.2, 60.3, 60.4 or 60.41 , surcharge imposed under section 61, tax levied under the Excise Tax Act or duty imposed under the Excise Act may be granted,

(2) Section 95 of the Act is amended by adding the following after subsection (2):

Uniform Regulations

(2.1) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations for the purpose of the uniform interpretation, application and administration of Chapters C and D of the Canada-Chile Free Trade Agreement and any other matters that may be agreed on from time to time by the parties to that Agreement.

1996, c. 33, s. 54

67. Paragraph 100(5)(a) of the Act is replaced by the following:

    (a) the circumstances in which, and the classes of goods in respect of which, no refund or drawback of duties levied under section 20 or under the Special Import Measures Act, surtax levied under section 59 or 59.1, temporary duty levied under section 60.1, 60.11, 60.12, 60.13 , 60.2, 60.3, 60.4 or 60.41 , surcharge levied under section 61, tax levied under the Excise Tax Act or duty levied under the Excise Act shall be granted under subsection (1);

68. Schedule I to the Act is amended by

    (a) adding a column with the heading ``Chile Tariff'' to the right of the column ``NAFTA Staging Category'';

    (b) adding a column with the heading ``CCFTA Staging Category'' to the right of the column ``Chile Tariff'';

    (c) adding the rate of ``Free'' to the column ``Chile Tariff'' and the letter ``A'' to the column ``CCFTA Staging Category'' for all tariff items except those set out in the schedule to this Act;

    (d) striking out heading No. 98.23 and tariff item Nos. 0703.10.91, 0810.10.10, 0810.10.91, 8536.90.90, 9823.10.00, 9823.90.00, 9824.00.00, 9825.00.00 and 9827.00.00;

    (e) adding, in numerical order, the heading, preambles and tariff items set out in Part I of the schedule to this Act;

    (f) adding, opposite the tariff item numbers set out in Part II of the schedule to this Act, the abbreviation ``N/A'' in the columns ``Chile Tariff'' and ``CCFTA Staging Category'';

    (g) adding, in the columns ``Chile Tariff'' and ``CCFTA Staging Category'' respectively, for each tariff item No. set out in Part III of the schedule to this Act, the rate of duty and letter set out with respect to that tariff item No. in that Part;

    (h) replacing the expression ``Mexico or the United States'' with the expression ``Mexico, the United States or Chile '' in subparagraphs (a)(i) and (iv) of Note 16 to Chapter 98; and

    (i) replacing the expression ``United States or Mexico'' with the expression ``United States, Mexico or Chile '' in subparagraph (b)(i) of Note 17 and in paragraph (b) of Note 18 to Chapter 98.

69. Code 2957 in Schedule II to the Act is amended by replacing the expression ``Mexico or the United States'' with the expression ``Mexico, the United States or Chile '' wherever the former expression appears.