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GLOSSARY for NOTICE TO EXPORTERS NO. 123
In Notice to Exporters No. 123:
"Affiliated company" means a company that is, or could be, controlled directly or indirectly, by another company (e.g. if the same General Manager manages two companies). To establish which companies are affiliated, applicants for consideration as new entrants are asked to provide a list of affiliated companies and associated persons.
"Associated Person" means
1.1 Persons who are related to each other if they are dealing with other persons otherwise than at arm's length;
1.2 It is a question of fact whether persons not related to one another were at a particular time dealing with each other at arm's length;
1.3 Related persons shall be deemed not to deal with each other at arm's length while so related,
2.1 "related group" «groupe lié» means a group of persons each member of which is related to every other member of the group;
2.2 "Unrelated group" «groupe non lié» means a group of persons that is not a related group;
2.3 "related persons" means persons who are related to each other and are related persons if they are:
2.3.1 individuals connected by blood relationship, marriage or adoption;
2.3.2 a corporation
22.214.171.124 a person who controls the corporation, if it is controlled by one person;
126.96.36.199 a person who is a member of a related group that controls the corporation;
2.3.3 any person connected in the manner set out in paragraph 2.3.1 to a person described in subparagraph 188.8.131.52or 184.108.40.206;
2.3.4 two corporations:
220.127.116.11 controlled by the same person or group of persons;
18.104.22.168 each of which is controlled by one person and the person who controls one of the corporations is related to the person who controls the other corporation;
22.214.171.124 one of which is controlled by one person and that person is related to any member of a related group that controls the other corporation;
126.96.36.199 one of which is controlled by one person and that person is related to each member of an unrelated group that controls the other corporation;
188.8.131.52 one of which is controlled by a related group a member of which is related to each member of an unrelated group that controls the other corporation; or
184.108.40.206 one of which is controlled by an unrelated group each member of which is related to at least one member of an unrelated group that controls the other corporation;
2.4 In connection with related persons and groups,
2.4.1 where two corporations are related to the same corporation within the meaning of section 2., they shall be deemed to be related to each other;
2.4.2 where a related group is in a position to control a corporation, it shall be deemed to be a related group that controls the corporation whether or not it is part of a larger group by whom the corporation is in fact controlled;
2.4.3 a person who has a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to, or to acquire, shares in a corporation, or to control the voting rights of shares in a corporation, shall, except where the contract provides that the right is not exercisable until the death of an individual designated therein, be deemed to have the same position in relation to the control of the corporation as if he owned the shares;
2.4.4 where a person owns shares in two or more corporations, he shall, as shareholder of one of the corporations, be deemed to be related to himself as shareholder of each of the other corporations;
2.4.5 persons are connected by blood relationship if one is the child or other descendant of the other or one is the brother or sister of the other;
2.4.6 persons are connected by marriage if one is married to the other or to a person who is connected by blood relationship to the other; and
2.4.7 persons are connected by adoption if one has been adopted, either legally or in fact, as the child of the other or as the child of a person who is connected by blood relationship, otherwise than as a brother or sister, to the other.
"Certificate of Eligibility" means the Minister's certification that a quota holder's goods qualify for preferential treatment pursuant to the NAFTA. The Minister makes such qualification conditional on the quota holder's maintenance of records which allow the Minister's auditors to identify the origin of materials used in the manufacture of goods eligible for access to TPL.
"EICB" means the office of the Export and Import Controls Bureau of the Department of Foreign Affairs and International Trade.
"Goods" means NAFTA-specified textiles, apparel and made-up products which do not meet the NAFTA Rules of Origin specifications for classification as "originating" products (NAFTA, Annex 401).
"Manufacturer" means a company in Canada that:
(a) owns the fabrics at the time they are used in the manufacture of apparel goods for export; and
(b) is primarily engaged in the design and manufacture of apparel goods, and in the marketing of apparel goods to retail, corporate, industrial or institutional clients; and
(c) meets one of the following requirements:
(i) owns or leases the equipment and premises in Canada in which he manufactures apparel goods and in which he performs at least:
(1) 25 percent of the cutting and sewing;
(2) 75 percent of the cutting; or
(3) 75 percent of the sewing of the apparel goods; or
(ii) where the cutting and sewing of apparel goods are performed on the person's behalf in Canada, the person markets and sells these goods to retail, corporate, industrial or institutional clients at arm's length.
"Minister" means the Minister of Foreign Affairs.
"NAFTA" refers to the North American Free Trade Agreement.
"New Entrant" means an exporter that manufacturers wool or non-wool apparel goods in Canada and is not affiliated with and is not associated with a person who is a current apparel TPL quota holder.
"Quota" means the quantity of SME an exporter may access from the TPL.
"Quota holder" means an exporter to which quota has been allocated for the year.
"SME" means square metre equivalents.
"Tariff Preferential Level" or "TPL" means the special provisions set out in Annex 300-B, Appendix 6, Part B, of the NAFTA, that provides for the application of a customs duty at a preferential rate to non-originating goods up to a specified quantity.
"TPL allocation" means a specific level of quota an exporter is allocated in a year.
"Transfer" means the movement of quota from one quota holder to another quota holder and return of quota to the Department.
"Year" means the calendar year beginning January 1 to December 31.
"Wool apparel" means wool apparel and made-up goods.
"Non-wool apparel" means cotton or man-made fibre apparel and made-up goods.
- Date Modified: