Outward Processing Remission Order (Textiles and Apparel) (SOR/2008-138)

Interpretation

1 The following definitions apply in this Order.

apparel

apparel means

• (a) any good referred to in tariff item No. 3926.20.92, 3926.20.93, 3926.20.94, 3926.20.95 or 3926.20.99, subheading 4015.19 or 4015.90 or Chapter 61 or 62 of the List; and

• (b) those goods referred to in heading 43.04 of the List that are articles of apparel or clothing accessories. (vêtements)

List

List means the List of Tariff Provisions set out in the schedule to the Customs Tariff. (liste)

textiles

textiles means

• (a) any good referred to in Chapter 50, 51, 52, 53, 54, 55, 56, 58, 59 or 60 of the List;

• (b) those goods referred to in subheading 4008.11, 7019.40, 7019.51, 7019.52 or 7019.59 of the List for use in the manufacture of apparel;

• (c) woven, knitted or crocheted fabrics, felt or nonwovens, impregnated, coated, covered or laminated with plastics referred to in subheading 3921.12, 3921.13 or 3921.90, or yarn referred to in subheading 7019.19 of the List; and

• (d) artificial fur referred to in heading 43.04 of the List. (textiles)

value of the textiles produced in Canada

value of the textiles produced in Canada means the value free on board (FOB) at the place of exit from Canada as declared on the Export Declaration (Form B-13A) prescribed by the Minister of Public Safety and Emergency Preparedness under the Customs Act. (valeur des textiles produits au Canada)

2 For the purpose of calculating the value for duty of imported materials under paragraph 3(2)(b), imported fibres referred to in headings 50.01 to 50.03, 51.01 to 51.05, 52.01 to 52.03 and 53.01 to 53.05 of the List are not considered as imported materials.

Remission

• 3 (1) Subject to section 4, remission is granted of the customs duties paid or payable on the importation of apparel produced in a country or territory set out in the schedule in whole or in part from textiles produced in Canada and shipped directly to that country or territory from Canada, without undergoing further processing outside that country or territory, and then shipped directly to Canada from that country or territory.

• (2) For the purposes of subsection (1), if the textiles produced in Canada contain imported materials, remission shall be granted if

  • (a) the imported materials are sufficiently transformed to undergo a change in tariff classification or to be considered bleached for the purpose of tariff classification; and

  • (b) the value for duty of the imported materials, determined in accordance with sections 48 to 53 of the Customs Act, is less than 50% of the value of the textiles produced in Canada.

• (3) Remission is granted in an amount equal to the lesser of

  • (a) the value of the textiles produced in Canada and incorporated in the imported apparel, and

  • (b) the customs duties paid or payable on the imported apparel.

Conditions

4 Remission is granted under section 3 on the following conditions:

• (a) that no other claim for relief, refund or drawback under the Customs Tariff has been, or may be, granted in respect of any customs duties paid or payable with respect to the goods on which the remission is claimed;

• (b) that the textiles produced in Canada are exported on or after the day on which this Order comes into force;

• (c) that the apparel is imported within two years after the day on which the textiles produced in Canada, which were incorporated in the apparel, are exported;

• (d) that a claim for remission is made by the importer to the Minister of Public Safety and Emergency Preparedness within two years after the day on which the apparel is imported into Canada; and

• (e) that the importer provides the Canada Border Services Agency with any evidence or information that demonstrates that the importer is entitled to the remission.

Coming into Force

5 This Order comes into force on the day on which it is registered.