Canada–United Kingdom Trade Continuity Agreement Implementation Act (S.C. 2021, c. 1)
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Assented to 2021-03-17
PART 2Related Amendments and Transitional Provision (continued)
Related Amendments (continued)
R.S., c. 1 (2nd Supp.)Customs Act (continued)
29 Part 5 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CUKTCA” in column 1 and a corresponding reference to “Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in CUKTCA” in column 2.
R.S., c. 17 (2nd Supp.)Commercial Arbitration Act
30 Schedule 2 to the Commercial Arbitration Act is amended by adding, at the end of column 1, a reference to “Article 8.23 of the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016, as incorporated by reference in the Agreement by Article 1” and a corresponding reference to “Agreement on Trade Continuity between Canada and the United Kingdom of Great Britain and Northern Ireland, done at Ottawa, on December 9, 2020” in column 2.
1992, c. 31Coasting Trade Act
31 Subsection 2(1) of the Coasting Trade Act is amended by adding the following in alphabetical order:
- British entity
British entity means
(a) a corporation that is incorporated in the territory of the United Kingdom, or
(b) a trust, partnership, joint venture or other association that is formed in the territory of the United Kingdom; (entité britannique)
- CUKTCA
CUKTCA has the meaning assigned by the definition Agreement in section 2 of the Canada–United Kingdom Trade Continuity Agreement Implementation Act; (ACCCRU)
- territory of the United Kingdom
territory of the United Kingdom means a territory referred to in Article 1.3, subparagraph (b) of CETA as incorporated by reference in CUKTCA. (territoire du Royaume-Uni)
32 (1) Subsection 3(2.2) of the Act is replaced by the following:
Marginal note:Dredging activities
(2.11) Subsection (1) does not apply in respect of dredging activities — other than dredging activities that are provided under an agreement with Her Majesty in right of Canada or with an entity that is listed either in Annex 19-1, as amended from time to time, of Chapter Nineteen of CETA or in Annex 19-1 of Chapter Nineteen of CETA as incorporated by reference in CUKTCA — carried out by
(a) a non-duty paid ship whose owner is a Canadian entity, an EU entity or a British entity; or
(b) a foreign ship whose owner is a Canadian entity, an EU entity or a British entity and that is registered in a register other than
(i) the Canadian Register of Vessels, or
(ii) a register referred to in paragraph (2.2)(a) or (b) or (2.21)(a) or (b).
Marginal note:Dredging activities — EU registers
(2.2) Subsection (1) does not apply in respect of dredging activities — other than dredging activities that are provided under an agreement with Her Majesty in right of Canada or with an entity that is listed in Annex 19-1, as amended from time to time, of Chapter Nineteen of CETA — carried out by a foreign ship whose owner is a Canadian entity, an EU entity or an entity that is under Canadian or European control and that is registered in
(a) the first, or domestic, register of a member state of the European Union; or
(b) a second, or international, register of a member state of the European Union.
Marginal note:Dredging activities — UK registers
(2.21) Subsection (1) does not apply in respect of dredging activities — other than dredging activities that are provided under an agreement with Her Majesty in right of Canada or with an entity that is listed in Annex 19-1 of Chapter Nineteen of CETA as incorporated by reference in CUKTCA — carried out by a foreign ship whose owner is a Canadian entity, a British entity or an entity that is under Canadian or British control and that is registered in
(a) the first, or domestic, register of the United Kingdom; or
(b) the second, or international, register of the United Kingdom, or the Gibraltar register.
(2) The portion of subsection 3(2.3) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Service d’apport — continuel ou aller simple
(2.3) Le paragraphe (1) ne s’applique pas aux activités ci-après effectuées au moyen d’un navire visé aux alinéas (2.2)a) ou (2.21)a) :
(3) Paragraph 3(2.3)(a) of the English version of the Act is replaced by the following:
(a) the carriage of goods by a ship that is described in paragraph (2.2)(a) or (2.21)(a), from the port of Halifax — where the goods are loaded — to the port of Montreal, or vice versa, if that carriage is one leg of the importation of the goods into Canada; or
(4) The portion of subsection 3(2.4) of the Act before paragraph (a) is replaced by the following:
Marginal note:Feeder services — single trip
(2.4) Subject to subsection (2.5), subsection (1) does not apply in respect of the carriage, by a ship that is described in paragraph (2.2)(b) or (2.21)(b), of goods in a container from the port of Montreal to the port of Halifax, or vice versa, if
(5) Subsection 3(2.6) of the Act is replaced by the following:
Marginal note:Provision of information
(2.6) Before a ship engages, without a licence, in any activities referred to in subsections (2.11) to (2.4) and for which the owner of the ship intends to rely on an exemption under any one of those subsections, the owner shall provide information to an enforcement officer, in the form and manner specified by the Minister, establishing that the ship meets the applicable conditions under any of subsections (2.11) to (2.21).
(6) The portion of subsection 3(7) of the Act before paragraph (a) is replaced by the following:
Marginal note:Control
(7) For the purposes of subsection (2.2), an entity is under Canadian or European control
(7) Section 3 of the Act is amended by adding the following after subsection (8):
Marginal note:Control — CUKTCA
(9) For the purposes of subsection (2.21), an entity is under Canadian or British control
(a) in the case of a third party entity that is a corporation, if securities of the corporation to which are attached more than 50% of the votes that may be cast to elect directors of the corporation are directly or indirectly held, otherwise than through a subsidiary or by way of security only, by or for the benefit of any of, or any combination of, the following individuals:
(i) a Canadian citizen,
(ii) a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act, or
(iii) a national of the United Kingdom; or
(b) in the case of a third party entity that is a trust, partnership, joint venture or other association, if an individual, or any combination of individuals, described in any of subparagraphs (a)(i) to (iii) holds, directly or indirectly, but not through a subsidiary, an interest in the trust, partnership, joint venture or other association that entitles the individual or combination of individuals to receive more than 50% of its profits or more than 50% of its assets on dissolution.
Marginal note:Third party entity — CUKTCA
(10) For the purposes of subsection (9), third party entity means
(a) a corporation, other than an entity referred to in paragraph (a) of the definition of either Canadian entity or British entity, that is not incorporated under the law of the United States; or
(b) a trust, partnership, joint venture or other association, other than an entity referred to in paragraph (b) of the definition of either Canadian entity or British entity, that is not formed under the law of the United States.
33 Subsection 5.1(1) of the Act is replaced by the following:
Marginal note:Dredging — provisions not applicable
5.1 (1) The following provisions do not apply with respect to licence applications relating to dredging activities that are to be provided under an agreement with Her Majesty in right of Canada or with an entity that is listed either in Annex 19-1, as amended from time to time, of Chapter Nineteen of CETA or in Annex 19-1 of Chapter Nineteen of CETA as incorporated by reference in CUKTCA:
(a) paragraph 5(a), in the case of an application made on behalf of a ship described in paragraph 3(2.11)(a); and
(b) paragraph 4(1)(a), in the case of an application made on behalf of a ship described in subsection 3(2.2) or (2.21).
34 Paragraph 7(b) of the Act is replaced by the following:
(a.1) specify that a territory is, or is not, a territory referred to in the definition of territory of the United Kingdom in subsection 2(1);
(b) indicate, for the purpose of paragraph 3(2.2)(b), the registers that are second, or international, registers of member states of the European Union;
(b.1) indicate, for the purpose of paragraph 3(2.21)(b), the registers that are second, or international, registers of the United Kingdom; and
1997, c. 36Customs Tariff
35 Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order:
- Canada–United Kingdom Trade Continuity Agreement
Canada–United Kingdom Trade Continuity Agreement has the meaning assigned by the definition Agreement in section 2 of the Canada–United Kingdom Trade Continuity Agreement Implementation Act. (Accord de continuité commerciale du Canada–Royaume-Uni)
- CUKTCA beneficiary
CUKTCA beneficiary means the United Kingdom, including the Channel Islands, Gibraltar and the Isle of Man, but excluding Anguilla, the British Antarctic Territory, the British Indian Ocean Territory, Bermuda, the British Virgin Islands, the Cayman Islands, the Falkland Islands, Montserrat, Pitcairn, Saint Helena and Dependencies (Ascension Island and Tristan Da Cunha), South Georgia and the South Sandwich Islands and the Turks and Caicos Islands. (bénéficiaire de l’ACCCRU)
36 Section 27 of the Act is amended by adding the following in alphabetical order:
- UKT
UKT refers to the United Kingdom Tariff. (TUK)
37 The Act is amended by adding the following after section 49.91:
United Kingdom Tariff
Marginal note:Application of UKT
49.92 (1) Subject to section 24, goods that originate in a CUKTCA beneficiary are entitled to the United Kingdom Tariff rates of customs duty.
Marginal note:“A” final rate for UKT
(2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “UKT” in relation to goods entitled to the United Kingdom Tariff, the United Kingdom Tariff rate of customs duty that applies to those goods is the final rate of “Free”.
Marginal note:“F” staging for UKT
(3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “UKT” in relation to goods entitled to the United Kingdom Tariff, the United Kingdom Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List.
38 The definition customs duties in section 80 of the Act is replaced by the following:
- customs duties
customs duties, other than for the purposes of sections 95, 96, 98.1 and 98.2, means customs duties imposed under Part 2, other than surtaxes or temporary duties imposed under Division 4 of Part 2. (droits de douane)
39 Section 87 of the Act is amended by adding the following after subsection (7):
Marginal note:Goods of tariff item No. 9971.00.00 – U.K.
(8) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the United Kingdom Tariff is the value of the repairs or alterations made to those goods in a CUKTCA beneficiary.
Marginal note:Limitation
(9) Subsection (8) ceases to have effect on January 1, 2024.
40 The portion of subsection 89(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Relief
89 (1) Subject to subsection (2), sections 95, 98.1 and 98.2 and any regulations made under section 99, if an application for relief is made within the prescribed time, in accordance with subsection (4), by a person of a prescribed class, relief may be granted from the payment of duties that would but for this section be payable in respect of imported goods that are
41 (1) The portion of subsection 94(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Definition of customs duties
94 (1) In sections 95, 96, 98.1 and 98.2, customs duties means customs duties imposed under Part 2, other than
(2) Subsection 94(2) of the Act is replaced by the following:
Marginal note:For greater certainty
(2) For greater certainty, in sections 95, 96, 98.1 and 98.2, customs duties does not include any duties or taxes levied or imposed on imported goods under the Excise Act, 2001, the Excise Tax Act or the Special Import Measures Act.
42 The Act is amended by adding the following after section 98.1:
Marginal note:Repayment of relief — U.K.
98.2 (1) If relief is granted under section 89 in respect of goods used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to a CUKTCA beneficiary and that benefit, when imported into that country, from a preferential tariff under the Canada–United Kingdom Trade Continuity Agreement,
(a) the person who exported the other goods shall, within 60 days after exporting them, report their exportation in the prescribed manner to an officer at a customs office and pay an amount equal to the portion of the duties relieved under section 89 that are customs duties; and
(b) subject to subsection (4) but despite any other provision of this Part, the person and any other person who was granted that relief are, from the time the other goods are exported, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount referred to in paragraph (a).
Marginal note:Debt to Her Majesty
(2) While it remains unpaid, the amount referred to in subsection (1) is a debt owing to Her Majesty in right of Canada under the Customs Act.
Marginal note:No refund or drawback
(3) No refund or drawback may be granted under section 113 for customs duties paid in respect of goods for which relief of all or a portion of the duties could have been, but was not, granted under section 89, if
(a) the goods are used as materials, or identical, equivalent or similar substitutes for those goods are used as materials, in the production of other goods; and
(b) those other goods are exported to a CUKTCA beneficiary and benefit, when imported into that country, from a preferential tariff under the Canada–United Kingdom Trade Continuity Agreement.
Marginal note:Exceptions
(4) Subsections (1) and (3) do not apply to
(a) imported goods that originate in a CUKTCA beneficiary that are used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to a CUKTCA beneficiary;
(b) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been
(i) placed in a duty free shop for exportation,
(ii) designated as ships’ stores by regulations made under paragraph 99(g), or
(iii) supplied for use on board a conveyance of a class prescribed under paragraph 99(g); or
(c) any other imported goods or any imported goods used as materials, or any class of such goods, that may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the Government of the United Kingdom.
Marginal note:Definition of materials
(5) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients.
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