Customs Notice 26-14: Certain Canned Vegetable Goods Surtax Order
1. This notice provides information on the application of the Certain Canned Vegetable Goods Surtax Order, effective , specifically regarding the provisional safeguard measure (via a 10% surtax), on certain canned vegetable goods imported into Canada.
2. The Government of Canada is introducing this safeguard measure to address the injury to domestic producers caused by import increases of certain canned vegetable goods while the Canadian International Trade Tribunal (CITT) conducts an inquiry into whether final safeguard measures are warranted.
3. The administration of the Certain Canned Vegetable Goods Surtax Order is the responsibility of the Canada Border Services Agency (CBSA).
Application
4. Effective , certain canned vegetable goods imported into Canada are subject to a surtax in the amount of 10% of the value for duty in accordance with the Certain Canned Vegetable Goods Surtax Order. The value for duty is determined in accordance with sections 47 to 55 of the Customs Act.
5. The surtax will apply for a period of up to 200 days beginning on .
6. Following the provisional safeguard period, the surtax will apply only to the listed goods in the Order that, according to the CITT‘s report concerning the current safeguard inquiry on the importation of certain vegetable goods, are being imported under such conditions as to cause or threaten serious injury to domestic producers of like or directly competitive goods.
7. Should the CITT‘s inquiry determine that no goods are being imported under such conditions as to cause or threaten serious injury to domestic producers, the surtax will cease to apply as of the date of CITT‘s finding.
8. Canned vegetable goods subject to the surtax are the following goods classified under a tariff classification number listed in Schedule 1 to the Order (see Appendix A to this Customs Notice): corn; peas; green beans; wax beans; mixes of peas and carrots; mixed vegetables; white, black, red and pinto beans; and chickpeas.
9. For certainty, canned vegetable goods are subject to the surtax whether packaged for retail, foodservice, industrial or other use; whether cleaned, prepared, blanched, cooked or preserved; whether whole, cut, sliced, diced or otherwise mechanically prepared; whether seasoned with salt or contain added sugars or preservatives or other common ingredients used in canning; whether they consist of organic or non-conventional vegetables; or whether sold in consumer, foodservice, industrial or bulk formats.
10. The surtax will apply to canned vegetable goods imported for commercial purposes.
11. The surtax applies to goods otherwise classifiable under a tariff classification number set out in Schedule 1 to the Certain Canned Vegetable Goods Surtax Order, even when those goods are eligible for classification under a tariff classification number of Chapter 99 of the Schedule to Canada’s Customs Tariff. Chapter 99 includes tariff classification numbers that would allow goods to receive a duty free rate or reduced duty rate.
12. The country of origin used to determine surtax applicability shall be determined in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (Non-CUSMA Countries) Regulations and Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
13. Canada’s Duties Relief and Duty Drawback Programs will be available to importers for surtax paid or owed by Canadian businesses, subject to the provisions of the Canada-United States-Mexico Agreement (CUSMA). When goods are of CUSMA (US/Mexico) origin, the goods are not subject to the limitations of CUSMA and the “lesser of two duties” determination does not apply. Therefore, in these circumstances, the goods may be eligible for full relief, if the CUSMA criteria is met, as outlined in CBSA’s Memorandum D7-4-3: CUSMA Requirements for the Duty Drawback and the Duties Relief Programs.
14. The CBSA may conduct a verification to verify whether or not the goods are subject to the surtax, including review of certificates, reports or commercial invoices supporting any claim that the goods are exempt. In instances where the importer fails to provide such documentary evidence, the CBSA may re-calculate the amount of surtax owing.
Resource: Canada Border Services Agency (CBSA)
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