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Bill C-81

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R.S., c. 17 (2nd Supp.)

Commercial Arbitration Act

1993, c. 44, s. 50

32. Subsection 5(4) of the Commercial Arbitration Act is replaced by the following:

Meaning of ``commercial arbitration''

(4) For greater certainty, the expression ``commercial arbitration'' in Article 1(1) of the Code includes

    (a) a claim under Article 1116 or 1117 of the Agreement, as defined in subsection 2(1) of the North American Free Trade Agreement Implementation Act; and

    (b) a claim under Article G-17 or G-18 of the Agreement, as defined in subsection 2(1) of the Canada-Chile Free Trade Agree ment Implementation Act.

R.S., c. C-50; 1990, c. 8, s. 21

Crown Liability and Proceedings Act

1994, c. 11, s. 1

33. (1) The definitions ``appropriate Commission'', ``panel'' and ``panel deter mination'' in section 20.1 of the Crown Liability and Proceedings Act are replaced by the following:

``appropriate Commission''
« commission compétente »

``appropriate Commission'' means

      (a) in respect of a panel determination as defined in Annex 36A of the Environ mental Cooperation Agreement, the Commission for Environmental Coop eration established under Article 8 of that Agreement,

      (b) in respect of a panel determination as defined in Article 35 of the Canada-Chile Environmental Cooperation Agreement, the Canada-Chile Commission for Envi ronmental Cooperation established un der Article 8 of that Agreement,

      (c) in respect of a panel determination as defined in Annex 41A of the Labor Cooperation Agreement, the Commis sion for Labor Cooperation established under Article 8 of that Agreement, and

      (d) in respect of a panel determination as defined in Article 37 of the Canada-Chile Labour Cooperation Agreement, the Canada-Chile Commission for Labour Cooperation established under Article 8 of that Agreement;

``panel''
« groupe spécial »

``panel'' means an arbitral panel convened un der Article 24 of the Environmental Coop eration Agreement or of the Canada-Chile Environmental Cooperation Agreement or Article 29 of the Labor Cooperation Agree ment or Article 26 of the Canada-Chile La bour Cooperation Agreement;

``panel determi-
nation''
« décision d'un groupe spécial »

``panel determination'' means a panel deter mination as defined in Annex 36A of the Environmental Cooperation Agreement, in Article 35 of the Canada-Chile Environ mental Cooperation Agreement, in Annex 41A of the Labor Cooperation Agreement or in Article 37 of the Canada-Chile Labour Cooperation Agreement.

(2) Section 20.1 of the Act is amended by adding the following in alphabetical order:

``Canada-
Chile Environ-
mental Cooperation Agreement''
« Accord canado-
chilien sur l'environ-
nement
»

``Canada-Chile Environmental Cooperation Agreement'' means the Agreement on En vironmental Cooperation entered into be tween the Government of Canada and the Government of the Republic of Chile and signed on February 6, 1997, as amended from time to time in accordance with Ar ticle 47 of that Agreement;

``Canada-
Chile Labour Cooperation Agreement''
« Accord canado-
chilien sur le travail
»

``Canada-Chile Labour Cooperation Agree ment'' means the Agreement on Labour Cooperation entered into between the Gov ernment of Canada and the Government of the Republic of Chile and signed on Febru ary 6, 1997, as amended from time to time in accordance with Article 47 of that Agree ment;

1994, c. 11, s. 1

34. The portion of subsection 20.4(2) of the Act before paragraph (a) is replaced by the following:

Limitation on proceedings

(2) Subject to section 20.3, no panel determination, including a panel determina tion that is made an order of the Federal Court, no determination or proceedings of a panel made or carried on or purporting to be made or carried on under the Environmental Coopera tion Agreement, the Canada-Chile Environ mental Cooperation Agreement, the Labor Cooperation Agreement or the Canada-Chile Labour Cooperation Agreement, no order or decision made by the Federal Court in any proceedings referred to in subsection 20.3(2) and no proceedings of that Court made or carried on or purporting to be made or carried on under that subsection shall be

R.S., c. 1 (2nd Supp.)

Customs Act

1988, c. 65, s. 66

35. (1) The definitions ``Canada-United States Free Trade Agreement'' and ``United States'' in subsection 2(1) of the Customs Act are repealed.

1996, c. 33, s. 28(1)

(2) The definition ``Certificate of Origin'' in subsection 2(1) of the Customs Act is replaced by the following:

``Certificate of Origin''
« certificat d'origine »

``Certificate of Origin'' means the proof of origin form for goods for which preferential tariff treatment under a free trade agree ment is claimed, prescribed under subsec tion 35.1(1) and subject to the regulations made pursuant to paragraph 35.1(4)(b);

(3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

``CCFTA''
« ALÉCC »

``CCFTA'' has the same meaning as ``Agree ment'' in subsection 2(1) of the Canada- Chile Free Trade Agreement Implementa tion Act;

``Chile''
« Chili »

``Chile'' has the same meaning as in subsec tion 2(1) of the Customs Tariff;

``free trade agreement''
« accord de libre-
échange
»

``free trade agreement'' means NAFTA, CCFTA or CIFTA;

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

``free trade partner'' means

      (a) a NAFTA country,

      (b) Chile, or

      (c) Israel or another CIFTA beneficiary;

``preferen-
tial tariff treatment under CCFTA''
« traitement tarifaire préférentiel de l'ALÉCC »

``preferential tariff treatment under CCFTA'' means, in respect of goods, entitlement to the benefit of the Chile Tariff, as defined in subsection 2(1) of the Customs Tariff;

(4) Section 2 of the Act is amended by adding the following after subsection (1.1):

Preferential tariff treatment

(1.2) For the purposes of this Act, a reference to preferential tariff treatment under a free trade agreement shall be read as a reference to whichever of the following is applicable in the circumstances:

    (a) preferential tariff treatment under NAF TA;

    (b) preferential tariff treatment under CCFTA; or

    (c) preferential tariff treatment under CIF TA.

1993, c. 44, s. 82

36. (1) The portion of subsection 32.2(1) of the Act before paragraph (a) is replaced by the following:

Correction to declaration of origin

32.2 (1) An importer or owner of goods for which preferential tariff treatment under a free trade agreement has been claimed or any person authorized to account for those goods under paragraph 32(6)(a) or subsection 32(7) shall, within ninety days after the importer, owner or person has reason to believe that a declaration of origin for those goods made under this Act is incorrect,

1996, c. 33, s. 29

(2) Subsection 32.2(1.1) of the Act is repealed.

1993, c. 44, s. 84; 1996, c. 33, s. 30

37. Subsections 35.1(5) and (6) of the Act are replaced by the following:

Denial or withdrawal of preferential tariff treatment

(5) Preferential tariff treatment under a free trade agreement may be denied or withdrawn in respect of goods for which that treatment is claimed if the importer, owner or other person required to furnish proof of origin of the goods under this section fails to comply with any provision of this Act or the Customs Tariff, or any regulation made under either of those Acts, concerning that preferential tariff treat ment.

1993, c. 44, s. 86; 1995, c. 41, s. 16; 1996, c. 33, ss. 31, 32

38. The headings before section 42.1 and sections 42.1 to 42.6 of the Act are replaced by the following:

Verifications under a Free Trade Agreement

Conduct of Verification

Methods of verification

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

    (a) conduct a verification of origin of goods for which preferential tariff treatment under a free trade agreement is claimed

      (i) by entering any prescribed premises or place at any reasonable time, or

      (ii) in the prescribed manner; or

    (b) enter any prescribed premises or place at any reasonable time to verify the amount, if any, of

      (i) a relief under section 80 of the Customs Tariff from the payment of any duties payable in respect of imported goods that are subsequently exported to a NAFTA country, or

      (ii) a drawback under section 100 of the Customs Tariff of duties paid in respect of imported goods that are subsequently exported to a NAFTA country.

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 treat ment under a free trade agreement may be denied or withdrawn from the goods.

Statement of Origin

Statement of origin

42.2 (1) On completion of a verification of origin under paragraph 42.1(1)(a), an officer designated under subsection 42.1(1) shall provide the exporter or producer whose goods are subject to the verification of origin with a statement as to whether the goods are eligible, under the regulations made under section 13 of the Customs Tariff, for the preferential tariff treatment that was claimed.

Basis of statement

(2) A statement referred to in subsection (1) must include any findings of fact or law on which it was based.

Effective Date of Re-determination of Origin

Definition of ``customs adminis-
tration''

42.3 (1) In this section,``customs adminis tration'' has the meaning assigned to that expression by Article 514 of NAFTA or Article E-14 of CCFTA, as the case may be.

Effective date of re-deter-
mination of origin of goods subject to verification of origin

(2) Subject to subsection (4), a re-deter mination of origin shall not take effect until notice of it is given to the importer of the goods and any person who completed and signed a Certificate of Origin for the goods if the result of the re-determination of origin made under section 61 as applied by subsec tion 57.2(4) in respect of goods for which preferential tariff treatment under NAFTA or preferential tariff treatment under CCFTA is claimed and that are the subject of a verifica tion of origin under this Act is that

    (a) the goods are not eligible for that preferential tariff treatment on the basis of the tariff classification or value of one or more materials used in their production; and

    (b) that tariff classification or value differs from the tariff classification or value ap plied to those materials by the NAFTA country from which the goods were ex ported or from Chile, as the case may be.

Limitation

(3) A re-determination of origin referred to in subsection (2) shall not be applied to goods imported before the date on which the notice was given if the customs administration of the NAFTA country from which the goods were exported or of Chile, as the case may be, has, before that date,

    (a) given an advance ruling under Article 509 of NAFTA or Article E-09 of CCFTA, as the case may be, or given another ruling referred to in paragraph 12 of Article 506 of NAFTA or paragraph 12 of Article E-06 of CCFTA, as the case may be, on the tariff classification or value of the materials referred to in subsection (2); or

    (b) given consistent treatment with respect to the tariff classification or value of the materials referred to in subsection (2) on their importation into the NAFTA country or Chile, as the case may be.

Postpone-
ment of effective date

(4) The date on which a re-determination of origin referred to in subsection (2) takes effect shall be postponed for a period not exceeding ninety days, if the importer of the goods that are the subject of the re-determination or any person who completed and signed a Certifi cate of Origin for the goods establishes to the satisfaction of the Minister that the importer or the person, as the case may be, has relied in good faith, to the detriment of the importer or person, on the tariff classification or value applied to the materials referred to in that subsection by the customs administration of the NAFTA country from which the goods were exported or of Chile, as the case may be.

Denial or Withdrawal of Benefit of Preferential Tariff Treatment under NAFTA or CCFTA

Definition of ``identical goods''

42.4 (1) In this section, ``identical goods'' has the meaning assigned to that expression by Article 514 of NAFTA or Article E-14 of CCFTA, as the case may be.

Denial or withdrawal of benefit: NAFTA country or Chile

(2) Notwithstanding subsection 25.2(5.1) and section 25.7 of the Customs Tariff, the Minister may, subject to the prescribed condi tions, deny or withdraw preferential tariff treatment under NAFTA or preferential tariff treatment under CCFTA in respect of goods for which that treatment is claimed if the exporter or producer of the goods has made false representations that identical goods exported or produced by that exporter or producer and for which that treatment was claimed were eligible for that treatment.

1993, c. 44, s. 87; 1996, c. 33, s. 33

39. Section 43.1 of the Act is replaced by the following:

Advance rulings

43.1 (1) Any officer, or any officer within a class of officers, designated by the Minister for the purposes of this section shall, before goods are imported, on application by any member of a prescribed class that is made within the prescribed time, in the prescribed manner and in the prescribed form containing the prescribed information, give an advance ruling with respect to

    (a) whether the goods qualify as originating goods and are entitled to the benefit of preferential tariff treatment under a free trade agreement; and

    (b) in the case of goods exported from a NAFTA country or from Chile, any other matter concerning those goods that is set out in paragraph 1 of Article 509 of NAFTA or in paragraph 1 of Article E-09 of CCFTA, as the case may be.

Regulations

(2) The Governor in Council may make regulations respecting advance rulings, in cluding regulations respecting

    (a) the application of an advance ruling;

    (b) the modification or revocation of an advance ruling, including whether the mod ification or revocation applies retroactive ly;

    (c) the authority to request supplementary information in respect of an application for an advance ruling; and

    (d) the circumstances in which the issuance of advance rulings may be declined or postponed.

1988, c. 65, s. 70; 1993, c. 44, s. 90; 1996, c. 33, s. 34

40. Subsections 57.2(2.1) to (9) of the Act are replaced by the following:

Determi-
nation final

(3) Subject to subsection (4), a determina tion of the origin of imported goods under this section is final unless, in the case of goods other than goods for which preferential tariff treatment under a free trade agreement is claimed, a re-determination of the origin of the imported goods is made by the Minister within two years after they are accounted for under subsection 32(1), (3) or (5).

Re-deter-
minations and appeals for goods imported from a free trade partner

(4) Subject to this section, sections 58 to 72 apply, with any modifications that the circum stances require, in respect of a determination of origin under this section as to the origin of goods for which preferential tariff treatment under a free trade agreement is claimed as if it were a determination of the tariff classifica tion of the goods, and, for greater certainty, any matter that may be prescribed in relation to a request referred to in subsection 60(2) or 63(2) may be prescribed in relation to a request for a re-determination or further re-determination of the origin of the goods.

Additional persons who may request re-deter-
mination

(5) In addition to the importer or any person who is liable to pay duties owing on the goods, other than a person authorized under para graph 32(6)(a) or subsection 32(7) to account for the goods, 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 request a re-determination of the origin of those goods under subsection 60(1) as applied by subsection (4).