Home / Knowledge / News / Apparel/Garments / Duties on certain imported apparels eased
Duties on certain imported apparels eased
14
Nov '08
Canada recently issued a circular listing and explaining the conditions under which importers may qualify for the duty remission on imported apparel available under the Outward Processing Remission Order. This new policy has been in effect since May 1, 2008. This benefit is available to any company producing clothing for export to Canada.

The following conditions will have to be met to avail the duty remission.

-The apparel must be produced in and shipped directly to Canada from countries or territories that are beneficiaries of the General Preferential Tariff.
-The apparel must be produced in whole or in part from textiles produced in Canada.
-The apparel must be produced in the same country or territory to which the textiles produced in Canada were shipped directly, without undergoing further processing outside that country or territory.

If the textiles produced in Canada contain imported materials:
(i) The imported materials must be sufficiently transformed to undergo a change in tariff classification or to be considered bleached for the purpose of tariff classification and (ii) The dutiable value of the imported materials must be less than 50 percent of the value of the textiles produced in Canada.

No other claim for relief, refund or drawback under the customs tariff may be granted for any customs duties paid or payable with respect to the goods on which the remission is claimed. The apparel must be imported within two years after the day on which the textiles produced in Canada that were incorporated in the apparel are exported.

A claim for remission must be made by the importer within two years after the day on which the apparel is imported into Canada. The importer must provide the CBSA with any evidence or information demonstrating that the importer is entitled to the remission.

If these criteria are met, a duty remission may be granted in an amount equal to the lesser of (i) the value of the textiles produced in Canada and incorporated in the imported apparel and (ii) the customs duties paid or payable on the imported apparel.

For example, if a qualifying apparel item has a dutiable value of C$100 and is subject to an 18 percent duty rate (hence a maximum duty of C$18), the amount of duties that could be remitted would be (i) C$15 if the value of the textiles produced in Canada that are incorporated into the imported apparel is C$15 and (ii) C$18 if the value of the textiles produced in Canada that are incorporated into the imported apparel is, for example, C$30.

The amount of remission available is applicable only to the specific importation at issue and is not transferable to any other.

Only customs duties paid or payable under the customs tariff may be relieved under this order. It does not apply to surtaxes or temporary duties levied under the customs tariff or to duties levied under the Special Import Measures Act or the Goods and Services Tax/Harmonised Sales Tax.

Must ReadView All

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: EFI Reggiani

Textiles | On 6th Dec 2016

EFI Reggiani shows inkjet textile solutions at India ITME

EFI Reggiani, a leading technology provider of a full range of...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search