Designer Remission Order, 2001

4 Remission is granted on the following conditions:

• (a) the fabric in respect of which the claim is made is to be used by the producer of original designer apparel solely for the manufacture of its own men's or women's original designer apparel of chapters 61, 62 and 65 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff, except for the following items:

  • (i) hosiery of heading No. 61.15 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff,

  • (ii) [Repealed, SOR/2004-94, s. 4]

  • (iii) men's underpants and briefs of subheadings Nos. 6107.11, 6107.12, 6107.19, 6207.11 and 6207.19 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff;

  • (iv) women's briefs and panties of subheadings Nos. 6108.21, 6108.22, 6108.29, 6208.91, 6208.92 and 6208.99 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff,

  • (v) women's foundation undergarments of heading No. 62.12 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff,

  • (vi) winter outerwear with an outershell of fabrics of chapters 54, 55 or 59, or heading Nos. 52.10, 52.11 or 52.12 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff,

  • (vii) apparel that must be worn to protect the wearer from physical harm while performing particular tasks in a work environment, and

  • (viii) apparel chosen by an employer to be worn exclusively by its employees during working hours;

• (b) the fabric has a value for duty of $14.00 or more per square metre, indexed annually, in accordance with the administrative guidelines issued by the Canada Customs and Revenue Agency, to compensate for inflation;

• (c) a claim for remission is made to the Minister of National Revenue within four years of the date of importation;

• (d) if the producer of original designer apparel is not the importer of record of the fabric, the claim is accompanied by a waiver from that importer waiving that importer's right to claim a drawback, refund or remission of the customs duties paid or payable in respect of the fabric;

• (e) the producer of original designer apparel submits to the Minister of National Revenue semi-annual reports that contain information relating to the volume, value and use of fabrics in respect of which a claim for remission was made in that period and any other relevant information necessary to the administration of this Order;

• (f) the producer of original designer apparel agrees that it shall be subject to audit by the Canada Customs and Revenue Agency for the purpose of verifying the accuracy of the amount of remission and whether the information supplied to determine eligibility for remission is accurate and complete and whether the facts upon which the Agency relied to determine eligibility for remission remain unchanged in all material respects; and

• (g) if the Canada Customs and Revenue Agency elects to conduct the audit referred to in paragraph (f), the information supplied shall be found to be accurate and complete and the facts relied on shall be found to have remained unchanged in all material respects.