Making Canada a Tariff-Free Zone for Industrial Manufacturers

Objective:

Eliminating tariffs on 1,541 tariff items will reduce customs compliance costs, allow for simplification of the tariff structure and eliminate the administrative burden of complying with rules of origin and with drawback regulations related to imports under these tariffs.

Target Audience:

Canadian manufacturers and importers of these products

Start Date and End Date:

March 5, 2010; ongoing

Responsible Department or Agency:

Department of Finance Canada

Partners:

N/A

Summary:

This measure will assist Canadian industry by lowering the costs of manufacturing inputs and of machinery and equipment that are imported from outside North America. Tariffs on the affected goods vary from 2 per cent to 15.5 per cent and represent a non-recoverable tax on production inputs and on new investments that companies make in order to enhance their competitiveness and productivity. It also leads to lower administrative burden for importers, particularly with respect to complying with rules of origin and duty drawback regulations.

Links:

• Budget 2010, Annex 5: Tax Measures: Supplementary Information and Notices of Ways and Means Motions, Customs Tariff Measures
• Canada Poised to Become “Tariff-Free Zone” for Manufacturers Thanks to Budget 2010,
• Bill C-9, An Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures

For additional information, please contact:

Patrick Halley
Telephone: 613-992-2518
Email: Patrick.Halley@fin.gc.ca