Highlights

  • The CRTC has updated the definition of “Canadian program” to reflect changes in stock footage cost treatment for program certification.
  • The Chicken Farmers of Canada has revised the classes of specialty chicken, with certain classes required to be marketed with head and feet attached.
  • Amendments to the Commonwealth Caribbean Countries Tariff Rules of Origin Regulations and the Customs Tariff (Commonwealth Caribbean Countries Tariff) have been made, affecting the origin criteria and tariff rates for goods from beneficiary countries, effective January 1, 2025.
  • New Direct Shipment Regulations have been established, detailing conditions for goods to qualify for certain tariffs when shipped to Canada.
  • The General Preferential Tariff and related tariffs’ rules of origin have been updated, specifying criteria for goods to qualify for preferential treatment, effective January 1, 2025.
  • Changes to Canada’s Customs Tariff preferences for developing countries have been made, including withdrawal and extension of the General Preferential Tariff for certain countries, effective January 1, 2025.
  • The Least Developed Country Tariff benefits have been withdrawn for goods from specific countries, effective January 1, 2025.
  • An amendment to the Customs Tariff has been made regarding the duty-free importation of goods for high-level amateur sport competitions, changing the certifying body to the Canadian Olympic Committee.
  • An exemption order has been issued for 28 navigable waters in Quebec to allow dewatering for a mining project, with measures to mitigate impacts on Indigenous rights and support for the local economy.
  • The Canadian government has set a date for the removal of direct shipment and transhipment requirements from the Customs Tariff legislation, simplifying administrative processes for importers.
  • Sanctions have been imposed on additional individuals and entities in Moldova and Russia to support Moldova’s sovereignty and counter Russian destabilization.
  • The Transportation of Dangerous Goods Regulations have been amended to introduce new site registration requirements for those handling dangerous goods, aiming to enhance public safety and risk assessment.

CRTC Amends Regulations to Update Definition of Canadian Programs

The Canadian Radio-television and Telecommunications Commission (CRTC) has amended the Television Broadcasting Regulations, 1987, and the Discretionary Services Regulations to update the definition of “Canadian program.” The new definition now references Broadcasting Regulatory Policy CRTC 2023-90, which changes how stock footage costs are treated in the evaluation of applications for Canadian program certification. Additionally, programs that qualified as Canadian under the previous definition before November 1, 2023, will continue to be recognized as Canadian programs under the new regulations. These amendments will take effect on November 1, 2023. [Source]

Canada Updates Specialty Chicken Classes with New Marketing Requirements

Chicken Farmers of Canada (CFC) has updated the Canadian Chicken Licensing Regulations by amending the list of classes of specialty chicken. The new Schedule 4 replaces the previous one and includes a variety of specialty chicken classes such as Silkie Chicken, Hong Kong TC, and ISA Brown, among others. Notably, specialty chickens in classes 2 to 12 must be marketed with the head and feet attached. This amendment is now in effect as of the date of registration. [Source]

Amendments to the Commonwealth Caribbean Countries Tariff Rules of Origin Regulations

The Canadian government has amended the Commonwealth Caribbean Countries Tariff Rules of Origin Regulations. The changes specify that for goods not listed in Chapters 61 to 63 of the Tariff, the non-originating material used must not exceed 40% of the ex-factory price for the goods to be considered as originating from a beneficiary country. For goods in Chapters 61 and 62, they must be cut or knit to shape and sewn or assembled in a beneficiary country. Goods in Chapter 63 must meet the same conditions but can be made from fabric produced in any beneficiary country or Canada. These rules apply only to the fabric or parts that determine the tariff classification of the good. Additionally, goods retain their originating status when transported outside the beneficiary country, provided they remain under customs control and do not undergo further production, except for necessary operations for transport or preservation. These regulations will be effective from January 1, 2025. [Source]

Amendment to Customs Tariff Schedule for Commonwealth Caribbean Countries Introduces Preferential Rates

The Order Amending the Schedule to the Customs Tariff (Commonwealth Caribbean Countries Tariff) introduces changes to the List of Tariff Provisions by adding a “Free” preferential tariff rate for specific tariff item numbers. These amendments apply both to the initial and final rates under the Commonwealth Caribbean Countries Tariff (CCCT). The order is set to come into force on January 1, 2025. The schedule attached to the order lists the specific tariff item numbers that are affected by this amendment. [Source]

New Direct Shipment Regulations for Tariff Qualification in Canada

The Direct Shipment Regulations specify conditions under which goods are considered to be shipped directly to Canada from a beneficiary country to qualify for certain tariffs. Goods must either be shipped on a through bill of lading or, if there is no through bill, the importer must provide evidence of the shipping route and all points of shipment and transhipment. If goods pass through another country, the importer must show documentary evidence of the shipping route and provide customs control documents proving the goods remained under customs control in the transit country. The Mexico Deemed Direct Shipment (General Preferential Tariff) Regulations are repealed by these new regulations, which will come into effect on January 1, 2025. [Source]

Canada’s New Rules of Origin Regulations for Preferential Tariff Treatments

The General Preferential Tariff, General Preferential Tariff Plus, and Least Developed Country Tariff Rules of Origin Regulations establish the criteria for goods to qualify for preferential tariff treatment when imported into Canada from eligible countries. Goods must originate from a beneficiary country, beneficiary-plus country, or least developed country, which includes products fully obtained or produced within these countries, such as mineral or vegetable products, live animals, or goods obtained from hunting, fishing, or manufacturing operations.

For goods other than those in Chapters 61 to 63 of the List of Tariff Provisions, they must be manufactured using no more than a specified percentage of non-originating materials—40% for beneficiary and beneficiary-plus countries, and 80% for least developed countries. Certain materials and packing used in the manufacture of these goods are deemed to have originated in the respective countries if they meet specific conditions.

For apparel and textile goods listed in Chapters 61 to 63 and specific parts of the schedule, they must be cut, knit to shape, and sewn or otherwise assembled in the eligible countries. The origin determination for these goods applies only to the fabric or parts that determine the tariff classification.

Goods retain their originating status during transit if they remain under customs control and do not undergo further production outside the eligible countries, except for necessary operations to preserve the goods or transport them to Canada. Each good in a shipment is considered separately for origin determination, with some exceptions for groups, sets, or assemblies of goods, and unassembled goods imported in multiple shipments due to transport or production reasons.

To qualify for the respective tariffs, goods must be shipped directly to Canada from the eligible country, with or without transhipment. The regulations repeal the previous General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulations and come into force on January 1, 2025. [Source]

Canada Updates Customs Tariff Preferences for Developing Countries in 2023 GPT Review Order

The General Preferential Tariff Withdrawal and Extension (2023 GPT Review) Order, under the recommendation of the Minister of Finance, has made changes to Canada’s Customs Tariff preferences for developing countries. The entitlement to the General Preferential Tariff (GPT) has been withdrawn for goods originating from a list of countries including Armenia, Belize, Fiji, and others, while it has been extended to all goods from Lebanon and Tunisia. These changes will come into effect on January 1, 2025, with an exemption for goods already in transit before this date.

The order also includes updates to the Least Developed Country Tariff (LDCT) and the Commonwealth Caribbean Country Tariff (CCCT), with the latter expanding to cover all apparel products. Simplified rules of origin for apparel products have been introduced to align with international standards and facilitate trade. Additionally, the shipment requirements have been updated to reflect modern shipping practices, including broadening the types of documentation accepted for proof of direct shipment and removing the time limit on storage in intermediary countries.

These regulatory changes are part of Canada’s efforts to align its non-reciprocal tariff preference programs with its broader trade and development agenda. The updates aim to support economic growth in developing countries, reduce compliance issues for stakeholders, and provide consistency across Canada’s tariff preference programs. The measures are expected to result in an estimated annual net loss of $40.1 million in tariff revenues, balanced by benefits to importers and consumers. The changes were exempt from prepublication due to extensive stakeholder support and consultation. The Canada Border Services Agency will monitor program utilization and compliance, and will inform importers of the updates. [Source]

Withdrawal of LDCT Benefits for Cape Verde, Samoa, Tuvalu, and Vanuatu by 2025

The Least Developed Country Tariff (LDCT) benefits are being withdrawn for goods originating from Cape Verde, Samoa, Tuvalu, and Vanuatu. This change will take effect on January 1, 2025. However, goods that were already in transit to Canada before this date will still be eligible for the LDCT. Consequently, the Customs Tariff Schedule will be updated to remove the “X” symbol indicating LDCT eligibility next to these four countries. [Source]

Amendment to Customs Tariff for Duty-Free Imports in Amateur Sport: Canadian Olympic Committee Takes Over Certification

The Canadian Minister of Finance has issued an order to amend the Customs Tariff, specifically tariff item No. 9984.00.00, which pertains to the duty-free importation of goods used in high-level amateur sport competitions. The amendment changes the certifying body from the True Sport Foundation to the Canadian Olympic Committee. This change is technical and does not have any policy or financial implications. The Canadian Olympic Committee is now considered more suitable for handling the certification process, which will continue on a cost-recovery basis. The amendment does not affect administrative costs or burdens for businesses, and thus the one-for-one rule and small business lens do not apply. Both the True Sport Foundation and the Canadian Olympic Committee support the amendment. The Canada Border Services Agency will be responsible for informing the importing community about the changes. [Source]

Exemption for Quebec Lithium Mine Dewatering Balances Economic and Environmental Interests

The Canadian government has issued an order exempting 28 navigable waters in Quebec from the prohibition against dewatering under Section 23 of the Canadian Navigable Waters Act (CNWA). This exemption is necessary for Critical Elements Lithium Corporation to proceed with the construction, operation, and eventual decommissioning of an open-pit lithium and tantalum mine in the James Bay region of Quebec. The dewatering process will lower water levels, making navigation impracticable, but is considered in the public interest due to the economic benefits and contribution to zero-emission vehicle (ZEV) production.

Extensive consultations with local Indigenous communities, who have traditional trapping rights in the area, have taken place over a decade. Mitigation measures, including the relocation of a trapping camp and a beaver management plan, have been implemented to safeguard Indigenous rights. The mining project is expected to create 580 jobs in a region with a small population, significantly benefiting the local economy. Additionally, the project supports the availability of raw materials for ZEVs, aligning with environmental goals to improve air quality.

The exemption order will come into force upon publication, allowing the dewatering to begin immediately. The exemption remains in force unless repealed, and post-mining plans include restoring the aquatic environments and partially restoring access to the territory. The Cree Nation Government will monitor compliance, with Transport Canada ready to enforce the CNWA if necessary. [Source]

Canada to Modernize Customs Tariff Legislation by 2025

The Canadian government has set January 1, 2025, as the date for Section 229 of the Budget Implementation Act, 2023, No. 1 to come into force. This section will remove the direct shipment and transhipment requirements from the Customs Tariff legislation, allowing these to be determined by regulations instead. This change aims to simplify administrative processes for Canadian importers by allowing more types of shipping documents to be accepted as proof of direct shipment to Canada. It also eliminates the six-month limit on the storage of goods in intermediary countries, aligning with Canada’s practices under its free trade agreements.

The decision follows stakeholder consultations in fall 2022, where feedback indicated that the existing requirements were outdated and restrictive, relying on a type of shipping document that has become less common. Stakeholders supported the proposed updates, which would allow for a broader range of documentation and ensure that the requirements could be updated more promptly to reflect changing shipping practices. The new regulations will make it easier to access tariff preference programs and are consistent with the government’s intention announced in Budget 2023. There are no significant financial, environmental, social, or legal implications associated with this Order. [Source]

Canada Expands Sanctions on Moldovan Entities Linked to Russian Influence and Corruption

Canada has amended its Special Economic Measures (Moldova) Regulations to impose sanctions on additional individuals and entities in response to Russia’s actions that threaten Moldova’s sovereignty and democratic reforms, as well as its potential to draw Moldova into the conflict in Ukraine. These sanctions target Moldovan oligarchs and entities, including television stations, that are believed to be involved in corrupt activities and spreading Russian disinformation. The sanctions align with international efforts to support Moldova’s government and counter Russian destabilization. They are part of a broader international response that includes support for Ukraine against Russian aggression and human rights violations. The sanctions aim to impose economic costs on Russia-aligned actors, undermine Russia’s military aggression capabilities, and support Moldova’s sovereignty and democratic reforms. The measures are consistent with actions taken by Canada’s allies and are enforced by Canadian authorities with penalties for non-compliance. [Source]

The Canadian government has amended the Special Economic Measures (Russia) Regulations to remove one individual from the list of designated persons under Schedule 1. This action follows the individual’s application to the Minister of Foreign Affairs, providing evidence that they no longer meet the criteria for inclusion on the list. The sanctions, initially imposed in response to Russia’s actions in Ukraine since 2014 and its full-scale invasion in 2022, aim to freeze assets and restrict dealings with listed individuals and entities.

The amendment ensures the integrity of Canada’s sanctions regime by maintaining only those who meet the listing criteria. The delisting process is a critical component of Canada’s sanctions framework, ensuring fairness and transparency. The decision to remove the individual’s name was made after the Minister of Foreign Affairs reviewed the evidence and found reasonable grounds for delisting.

The amendment will lift restrictions on the individual, allowing them to travel to Canada and engage in business with Canadians. There are no anticipated costs to businesses or the government, and the change is not expected to impact Canada’s security objectives. The amendment does not affect small businesses, and the one-for-one rule does not apply as there is no change in administrative burden.

The amendment aligns with international partners’ practices, although it was not subject to public consultation. It does not arise from treaty obligations, regulatory cooperation, or have significant environmental effects or gender-based impacts. The individual’s name will be removed from the Consolidated Canadian Autonomous Sanctions List to aid compliance with the Regulations. [Source]

Canada Introduces New Site Registration Requirements for Dangerous Goods Transport

The Canadian government has amended the Transportation of Dangerous Goods Regulations to introduce new requirements for site registration. These amendments require persons who import, offer for transport, handle, or transport dangerous goods at a site they own or operate in Canada to register in a new database. The database will collect specific information, including business numbers, contact details, site addresses, modes of transport, and details about the dangerous goods handled.

Certain exemptions apply, such as for persons transporting dangerous goods in excepted quantities, samples of unknown classification, or biological products, among others. The definition of a “site” has been clarified to mean a permanent location where dangerous goods activities occur, excluding places where dangerous goods are only used within the scope of a person’s work or as raw materials in products they manufacture.

Registration must be renewed annually, and any changes to the provided information must be updated within 60 days. A transitional period of 12 months is given for existing operations to comply with the new requirements. The collected data will help Transport Canada (TC) to better assess risks and prioritize inspections based on risk, aiming to reduce the likelihood and severity of dangerous goods incidents.

The regulations are expected to cost $10.64 million over a 10-year period, with businesses incurring $7.66 million in reporting costs and the government $2.98 million for reporting and database maintenance. The benefits, while not quantified, are expected to outweigh these costs by enhancing public safety and compliance with dangerous goods transportation regulations.

The regulations align with similar U.S. requirements but differ in that they apply to all relevant persons in Canada, do not involve fees, and include federal departments and agencies. The implementation will be supported by various tools, including the TC website, newsletters, and awareness campaigns. Compliance will be enforced through existing measures, with potential fines for non-compliance. The strategic environmental assessment concluded that the regulations may have a positive environmental impact by potentially reducing the damage from dangerous goods incidents. A gender-based analysis found no differential impacts based on identity factors. [Source]

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