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Tariff Rate Quotas – TRQ – Customs Tariff – Canada Customs Duty
THE CREATION OF TARIFF RATE QUOTA’S
As a signatory to the WTO, Canada adopted the TRQ regime back in 1995. Agricultural products included on the Import Control List, established under (Export Import Permits Act) are grouped into 22 product categories, each with an established quota.
Under the TRQ system approximately 280 Within Access Commitment, & Over Access Commitment Tariff items were created in Schedule I of the Customs Tariff.
Importers are required to obtain a quota allocation from International Trade Canada, prior to importation. Where an Importer is unable to provide an Import permit at the time of accounting, the goods will be classified under an Over Access Commitment Tariff Item.
FIRST-COME FIRST-SERVED TARIFF RATE QUOTA’S
• These goods will not be subject to prior quota allocation or specific import permits. Instead Int’l Trade Canada has issued two general import permits.
• For more information on FCFS Tariff Rate Quotas please consult customs D memo D10-18-6. For FCFS quota levels please contact: 1-800-594-0986.
• First-Come, First-Served Tariff Rate Quotas apply to: Wheat, and Wheat products, Barley and Barley products.
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Customs Tariff – Chapter 99 – Conditional or End Use
THE END USE PROVISIONS OF THE CUSTOMS TARIFF
• Chapter 99 contains the Conditional or End-Use Tariff Items.
• However, End-Use Tariff Items or what the Department of Finance refers to as “Manufacturing Inputs” can actually be found Throughout the Nomenclature.
Example
Our example is HS Classification number: 607.19.21.00 —- This Classification number provides Duty Free access to Blanks when for use in the manufacture of wheel & axle combinations for railway & tramway (including subway cars) passenger coaches
CHAPTER 99 CONDITIONAL TARIFF ITEMS
• In order to utilize a Ch 99 conditional tariff items, there are certain conditions and obligations that must be met & fulfilled before using such codes.
• They include Proof of End-Use, such as copies of contracts, purchase orders, and auditable Audit Trails. Other questions that you may want to satisfy would include; Are the goods listed? Do they meet the terms & conditions of the code? Etc.
• If the Goods are “Diverted” from a Ch99 Conditional tariff item, be prepared to file a voluntary amendment with the Agency in order to account for this change in end-use.
POPULAR CHAPTER 99 CONDITIONAL TARIFF ITEMS:
• 9903 Articles & Materials for use in Agricultural applications
• 9948 Articles for use in Electronic equipment
• 9967 & 9968 For use in Aircraft
• 9969 Goods of base metal for use in Ships & Ship-building
• 9977 & 9978 For use in Medical applications
• 9986 Religious Articles – Refer to customs D memo D10-15-12
• 9993 Temporary Importations – Refer to customs D memo D8-1-1
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