Duties on Imported Food Ingredients

DEPARTMENT OF FINANCE

CUSTOMS TARIFF

Invitation to submit views on proposed Most-Favoured-Nation tariff elimination on certain agri-food processing inputs

The Government is seeking the views of interested parties on the elimination of Most-Favoured-Nation (MFN) rates of customs duty on certain agri-food processing inputs. The tariff items being considered for elimination of the rate of customs duty are listed in Table 1 with their current MFN rates.

 

Background

The Canadian agri-food processing industry is Canada’s largest manufacturing employer and an important contributor to the Canadian economy. Budget 2016 announced the Government’s intention to launch public consultations on eliminating tariffs on certain imported food manufacturing ingredients, other than supply- managed products, to support investment and job creation in this important sector.

The Government has reviewed Canada’s tariff regime to identify opportunities to help improve the competitiveness of Canadian agri-food processors in domestic and foreign markets by reducing non-recoverable production costs.

 

Scope of tariff elimination

The Government proposes to reduce to “Free” the MFN rates of customs duty on the tariff items listed in Table 1. The tariff items in Table 1 have been selected based on the following factors:

  • Goods covered by these tariff items are used in agri-food processing;
  • Eliminating the tariff on these goods will reduce production costs for Canadian industry; and
  • There is interest from stakeholders in eliminating MFN tariffs on some of these goods to enhance competitiveness.

The description of the tariff items listed in Table 1 can be found in the latest consolidated version of the Customs Tariff available online at www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/menu-eng.html.

 

Submissions

Interested parties wishing to comment on the proposed MFN tariff elimination should submit their views in writing by June 21, 2016. Submissions, at a minimum, should include the following information:

  1. Canadian company/industry association name, address, telephone number, and contact person.
  2. Relevant eight-digit tariff item(s) and description of the goods of particular interest.
  3. Reasons for the expressed support for, or concern with, the proposed tariff elimination, including detailed information substantiating any expected beneficial or adverse impact.
  4. If concern is expressed with respect to the proposed tariff elimination for one or more eight-digit tariff item(s), please provide views on ways to alleviate such concerns (e.g. limiting tariff elimination to certain end uses, gradual tariff elimination over a longer time period).
  5. Please identify if information provided in the submissions is commercially sensitive.

The Government will also accept views on other tariff items that could be considered in the context of possible further tariff elimination initiatives designed to assist Canadian industry.

Address for submissions

Submissions should be sent to the following address: International Trade Policy Division (Agri-food Inputs), Department of Finance, 90 Elgin Street, 14th Floor, Ottawa, Ontario K1A 0G5, fin.tariff-tarif.fin@canada.ca (email), 613-369-4024 (fax).

General inquiries can be directed to the Tariff and Trade Policy Section, Department of Finance, 613-369-4034 or 613-369-4075 (telephone).

TABLE 1

PROPOSED ELIMINATION OF MOST-FAVOURED-NATION RATES OF CUSTOMS DUTY

This table shows the proposed elimination of most-favoured-nation rates of customs duty per tariff item.

Tariff item

Current MFN rate

Proposed MFN rate

0702.00.11

1.41¢/kg but not less than 9.5%

Free

0702.00.19

1.41¢/kg but not less than 9.5%

Free

0703.10.21

2.12¢/kg but not less than 9.5%

Free

0704.90.10

2.12¢/kg but not less than 6%

Free

0706.90.10

1.41¢/kg but not less than 12.5%

Free

0707.00.10

1.41¢/kg but not less than 6%

Free

0708.10.10

1.41¢/kg but not less than 6%

Free

0708.20.10

1.41¢/kg but not less than 6%

Free

0709.20.10

5.51¢/kg but not less than 7.5%

Free

0709.51.10

8.43¢/kg but not less than 8.5%

Free

0709.59.10

8.43¢/kg but not less than 8.5%

Free

0710.10.00

6%

Free

0710.21.00

9.5%

Free

0710.22.00

9.5%

Free

0710.29.90

9.5%

Free

0710.40.00

9.5%

Free

0710.80.10

19%

Free

0710.80.20

12.5%

Free

0710.80.30

12.5%

Free

0710.80.40

11%

Free

0710.80.90

9.5%

Free

0710.90.00

12.5%

Free

0711.40.90

10.5%

Free

0711.51.00

8%

Free

0711.59.00

8%

Free

0711.90.90

8%

Free

0712.20.00

6%

Free

0712.31.00

6%

Free

0712.90.20

6%

Free

0712.90.90

6%

Free

0713.33.99

2%

Free

0713.34.00

2%

Free

0713.35.00

2%

Free

0713.39.90

2%

Free

0713.50.90

2%

Free

0714.30.10

9.5%

Free

0714.40.10

9.5%

Free

0714.50.10

9.5%

Free

0714.90.10

9.5%

Free

0808.30.10

2.12¢/kg but not less than 8%

Free

0809.10.10

2.12¢/kg but not less than 8%

Free

0809.29.10

5.64¢/kg but not less than 8%

Free

0809.30.10

2.82¢/kg but not less than 8%

Free

0809.40.10

1.06¢/kg but not less than 8%

Free

0810.10.10

5.62¢/kg but not less than 8.5%

Free

0811.10.10

5.62¢/kg but not less than 8.5%

Free

0812.10.90

9.37¢/kg but not less than 10.5%

Free

0812.90.20

9.37¢/kg but not less than 14.5%

Free

0812.90.90

6%

Free

0813.30.00

6%

Free

0904.12.00

3%

Free

0904.22.90

3%

Free

0906.20.00

3%

Free

0907.20.00

3%

Free

0908.12.00

3%

Free

0908.22.00

3%

Free

0908.32.00

3%

Free

0909.22.00

3%

Free

0909.32.00

3%

Free

0909.62.00

3%

Free

0910.12.00

3%

Free

0910.91.92

3%

Free

0910.99.90

3%

Free

1001.19.10

$1.90/tonne

Free

1001.99.10

$1.90/tonne

Free

1003.10.11

$0.99/tonne

Free

1003.90.11

$0.99/tonne

Free

1003.90.91

$0.99/tonne

Free

1101.00.10

$2.42/tonne

Free

1102.20.00

6%

Free

1102.90.11

4%

Free

1102.90.90

6%

Free

1103.11.10

$2.42/tonne

Free

1103.19.11

3%

Free

1103.20.11

3.5%

Free

1103.20.21

3.5%

Free

1103.20.90

5%

Free

1104.19.11

3.5%

Free

1104.19.21

4%

Free

1104.19.90

5%

Free

1104.22.00

5%

Free

1104.23.00

5%

Free

1104.29.11

3.5%

Free

1104.29.21

4%

Free

1104.29.90

5%

Free

1104.30.11

3.5%

Free

1104.30.90

5%

Free

1105.10.00

10.5%

Free

1105.20.00

8.5%

Free

1106.10.90

6%

Free

1107.10.11

0.31¢/kg

Free

1107.10.91

0.47¢/kg

Free

1107.20.11

0.31¢/kg

Free

1108.11.10

0.95¢/kg

Free

1108.13.00

10.5%

Free

1108.19.11

0.83¢/kg

Free

1108.19.90

1.24¢/kg

Free

1108.20.00

6.5%

Free

1109.00.10

7.5%

Free

1208.10.10

6%

Free

1208.90.10

6%

Free

1212.99.20

6.5%

Free

1502.10.00

2.5%

Free

1502.90.00

2.5%

Free

1503.00.00

7.5%

Free

1504.20.90

4.5%

Free

1504.30.00

6.5%

Free

1506.00.00

7%

Free

1507.10.00

4.5%

Free

1507.90.90

9.5%

Free

1508.10.00

4.5%

Free

1508.90.00

9.5%

Free

1511.10.00

6%

Free

1511.90.90

11%

Free

1512.11.00

4.5%

Free

1512.19.10

9.5%

Free

1512.19.20

11%

Free

1512.21.00

4.5%

Free

1512.29.00

9.5%

Free

1513.11.00

6%

Free

1513.19.90

11%

Free

1513.21.00

6%

Free

1513.29.90

11%

Free

1514.11.00

6%

Free

1514.19.00

11%

Free

1514.91.00

6%

Free

1514.99.00

11%

Free

1515.11.00

4.5%

Free

1515.19.00

8%

Free

1515.21.00

4.5%

Free

1515.29.00

9.5%

Free

1515.50.10

6%

Free

1515.50.90

11%

Free

1515.90.91

6%

Free

1515.90.99

11%

Free

1516.10.10

11%

Free

1516.10.90

11%

Free

1516.20.90

11%

Free

1518.00.10

4.5%

Free

1518.00.90

8%

Free

1603.00.11

6%

Free

1603.00.19

6%

Free

1701.12.90

$24.69/tonne

Free

1701.13.90

$22.05/tonne

Free

1805.00.00

6%

Free

1806.10.10

6%

Free

1806.10.90

6%

Free

1806.20.90

6%

Free

1901.20.13

4%

Free

1901.20.23

3%

Free

1901.20.29

4.5%

Free

1901.90.11

8.5%

Free

1901.90.20

4.5%

Free

1901.90.39

9.5%

Free

1901.90.40

9.5%

Free

1901.90.59

9.5%

Free

1902.40.20

4.5 %

Free

1905.90.34

3%

Free

1905.90.72

4.5%

Free

Goods of Chapter 20
for use in the manufacture
of food products or beverages (see note 1)

4%–17%

Free

2102.10.10

8%

Free

2102.10.20

6%

Free

2102.30.00

3%

Free

2106.10.00

11%

Free

2106.90.29

6%

Free

2106.90.91

10.5%

Free

2106.90.92

10.5%

Free

2106.90.96

$0.70/litre plus 19%

Free

2106.90.98

10.5%

Free

2106.90.99

10.5%

Free

2207.10.10

12.28¢/litre of absolute ethyl alcohol

Free

2207.10.90

4.92¢/litre of absolute ethyl alcohol

Free

2207.20.19

12.28¢/litre of absolute ethyl alcohol

Free

2207.20.90

6.5%

Free

2208.90.21

12.28¢/litre of absolute ethyl alcohol

Free

2209.00.00

9.5%

Free

3301.19.90

3%

Free

3301.24.00

3%

Free

3502.90.00

6.5%

Free

3503.00.90

8%

Free

3504.00.90

6.5%

Free

  • Note 1
    Given the multiple-use nature of most goods classified in Chapter 20 (e.g. retail or production input), the proposed tariff elimination would be limited to goods used in the manufacture of food products or beverages. Current MFN rates would continue to apply to imports of goods classified in Chapter 20 used for purposes other than the manufacture of food products or beverages.

 

 

http://www.canadagazette.gc.ca/rp-pr/p1/2016/2016-04-23/html/notice-avis-eng.php#ne3

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