Ukraine Goods Remission Order: SOR/2022-127
Canada Gazette, Part II, Volume 156, Number 13
SOR/2022-127 June 9, 2022
P.C. 2022-649 June 9, 2022
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Ukraine Goods Remission Order under section 115footnote a of the Customs Tarifffootnote b.
Ukraine Goods Remission Order
Remission — Customs Tariff
1 (1) Subject to section 3, remission is granted of the customs duties paid or payable under the Customs Tariff in respect of goods that originate in Ukraine, except for goods subject to the General Tariff.
Goods that originate in Ukraine
(2) For the purposes of this section, goods originate in Ukraine if their last production process, other than a minimal operation, occurred in Ukraine.
Definition of minimal operation
(3) For the purposes of this section, minimal operation means any of the following:
- (a) an operation to ensure the preservation of a good in good condition for the purposes of transport and storage;
- (b) packaging, re-packaging, breaking up of consignments or putting up a good for retail sale, including placing a good in bottles, cans, flasks, bags, cases or boxes;
- (c) mere dilution with water or another substance that does not materially alter the characteristics of the good;
- (d) the collection of goods intended to form sets, assortments, kits or composite goods; and
- (e) any combination of operations referred to in paragraphs (a) to (d).
Remission — Special Import Measures Act
2 (1) Subject to section 3, remission is granted of the duties paid or payable under the Special Import Measures Act in respect of goods that originate in Ukraine.
Goods that originate in Ukraine
(2) For the purposes of this section, goods originate in Ukraine if they acquired their physical and technical characteristics in Ukraine.
3 Remission is granted if
- (a) the goods are imported during the period beginning on the day on which this Order comes into force and ending on the first anniversary of that day; and
- (b) the importer makes a claim for remission to the Minister of Public Security and Emergency Preparedness within two years of the date of importation.
4 This Order is repealed on the third anniversary of the day on which it comes into force.
Coming into force
5 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
The Russian Federation, with support from Belarus, continues to violate the sovereignty and territorial integrity of Ukraine. In addition to the devastating impacts on Ukraine’s population and infrastructure, Russia’s unprovoked and unjustifiable invasion has significantly harmed Ukraine’s economy.
With the Ukraine Goods Remission Order, the Government of Canada is taking action to support Ukraine’s economy by increasing its export opportunities, in alignment with key partners.
On February 24, 2022, Russian military forces invaded the sovereign country of Ukraine, including through the territory of Belarus with the permission of that country’s government.
Since the beginning of the current crisis, the Government of Canada has responded against Russia and Belarus, in close coordination with our Allies and partners, with a broad range of measures and sanctions to this violation of sovereignty and of international law, including taking trade-restrictive measures under the Customs Tariff.
Furthermore, the Government of Canada has supported Ukraine, including with development, humanitarian, military and economic assistance.
Bilateral trade between Canada and Ukraine supports both countries’ economies. The Canada-Ukraine Free Trade Agreement (CUFTA), which entered into force on August 1, 2017, represents an important milestone in the Canada-Ukraine relationship.
On May 8, 2022, the Government of Canada announced that it intended to provide tariff concessions beyond CUFTA to further support Ukraine’s economy by facilitating increased exports to Canada. Other allied countries have or are considering similar time-limited tariff relief measures.
The objective of this Order is to provide relief of customs duties, anti-dumping duties, and countervailing duties that are applicable or may be applicable on imports of goods originating from Ukraine to encourage increased exports from Ukraine to Canada.
The Order remits customs duties paid or payable under the Customs Tariff, as well as anti-dumping and countervailing duties paid or payable under the Special Import Measures Act, for all goods originating in Ukraine and imported into Canada. This remission of duties applies for a period of one year from the entry into force of the Order.
Consultations were not undertaken with the public given that the Order provides relief from applicable customs duties, anti-dumping duties, and countervailing duties. Consultations were also not undertaken with the public owing to the exceptional and urgent nature of responding to the impacts of the invasion of Ukraine. As such, this Order was granted an exemption from the requirement to prepublish in the Canada Gazette, Part I.
Modern treaty obligations and Indigenous engagement and consultation
The proposal is not expected to impact potential or established Aboriginal or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982.
Making an Order in Council under section 115 of the Customs Tariff is the most appropriate mechanism to quickly provide relief from customs duties, anti-dumping duties, and countervailing duties to support exports from Ukraine to Canada.
Benefits and costs
Providing remission of customs duties, anti-dumping duties, and countervailing duties supports increased exports from Ukraine. The remission will complement the tariff preferences provided by Canada under the CUFTA for goods that originate from Ukraine. In addition to providing tariff-free treatment for certain goods not currently tariff-free under CUFTA (i.e. certain vehicles, refined sugar and over-access supply managed goods [dairy, poultry and eggs]), the remission may provide more flexibility in respect of meeting conditions required to benefit from tariff-free treatment (e.g. rules of origin and requirements pertaining to shipment) compared to CUFTA.
Based on recent trade data (2019–2021), and taking into account of the ongoing conflict that is affecting Ukraine’s ability to export, the approximate maximum value that this Order would remit is $2.6 million in duties on an annual basis.
Small business lens
The Order does not make changes to the importing of goods, including the required customs forms. Accordingly, there is no incremental change to the level of administrative burden or compliance costs currently imposed on businesses, including small businesses, as a result of implementing this Order.
The Order does not make changes to processes for the importing of goods, including the required customs forms. Therefore, no increase or decrease in the level of administrative burden imposed on businesses is anticipated. Accordingly, the one-for-one rule does not apply.
Regulatory cooperation and alignment
There is no regulatory cooperation component to this Order.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for this proposal.
Implementation, compliance and enforcement, and service standards
This Order would come into force upon registration. The Canada Border Services Agency (CBSA) will monitor compliance with the terms and conditions of the Order in the normal course of its administration of customs- and tariff-related legislation and regulations. The CBSA will update its systems to account for this Order and will inform importers through public materials, including the publication of a Customs Notice that will provide information on making claims of remission (i.e. refunds of relevant duties paid and waiver of duties payable).
Trade and Tariff Policy
International Trade Policy Division
Department of Finance