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Canada Eliminates Tariffs on Certain Manufacturing Inputs
Canadian Finance Minister Jim Flaherty announced on November 27th that the government would eliminate tariffs on dozens more products used by Canadian manufacturers in sectors such as food processing, furniture and transportation equipment. The initiative is expected to save Canadian businesses about $32 million annually.
“This builds on our Government’s commitment in Budget 2010 to make Canada a tariff-free zone for industrial manufacturers,” said Minister Flaherty. “By lowering costs for these businesses, we are enhancing their ability to compete in domestic and foreign markets and helping them invest and create jobs here at home. This measure acts on our Government’s commitments under our low-tax plan for jobs and growth and reinforces our G-20 leadership in the fight against protectionism.”
In Canada’s Economic Action Plan, the Government eliminated all tariffs on imported machinery and equipment and manufacturing inputs to make Canada a tariff-free zone for industrial manufacturers by 2015. In Budget 2010, the Government committed to consulting with Canadians to identify areas where further trade liberalization could take place. The tariff relief announced today is a result of those consultations.
Eliminating tariffs on goods used in manufacturing helps Canadian companies operating in a wide range of sectors by lowering their production costs. This will benefit Canadian manufacturers by increasing the competitiveness of their operations, thus contributing to a stronger economy. Since 2009, the Government has eliminated more than 1,800 tariff items and provided more than $435 million in annual tariff relief to Canadian businesses.
Effective Dates & Refunds
The rate reductions set out in Parts 1, 3 and 5 of the Order take effect November 17, 2011. B2 Adjustment Requests may be filed to obtain a refund with respect to importations made on or after November 17, 2011, that are impacted by these rate reductions.
The rate reductions set out in Parts 2 and 4 of the Order (related to Other Pins - Specially designed for marking systems) take effect on January 1, 2012.
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