Serial No. 164
Date: May 22, 2009
1.1 The purpose of this Notice is to outline the Minister's policies and practices respecting the allocation of fabric TPL. This Notice should be read in conjunction with the Export and Import Permits Act (EIPA). Where elements of the present Notice augment the EIPA and Regulations, those elements are to be read as expressions of the Minister's normal policies and procedures.
2.1 This Notice replaces sections 7.0, 8.0, 9.0, 11.0, paragraphs 12.2,12.3,12.4 and 12.5 of Notice to Exporters No. 142, dated December 21, 2004, regarding allocation and transfer policies. It refers to non-originating cotton or man-made fibre fabric and made-up goods exported to the United States provided for in Annex 300-B, Appendix 6, Part B, paragraph 4 of the NAFTA.
3.1 This Notice, effective April 15, 2009, shall remain valid until further notice.
4.1 Tariff Preference Levels (TPL) are special NAFTA provisions set out in Annex 300-B, Appendix 6, Part B, of the NAFTA, that provide tariff preferences for imports and exports of non-originating textile and apparel goods up to a specified quantity. Section 9.1(a) of the Export and Import Permits Act (EIPA) authorizes the Minister to issue Certificates of Eligibility for TPL for the purpose of implementing an intergovernmental arrangement (e.g., NAFTA). The Minister allocates TPL quantities (in SMEs) to qualified applicants in accordance with the Issuance of Certificates Regulations and policy expressed in Notices to Exporters.
4.2 The annual TPL level for the export of non-originating cotton or man-made fibre fabric and made-up goods as provided in the special provisions of Annex 300-B, Appendix 6, Part B, paragraph 4(b) and Schedule 6.B.2 of the NAFTA, from Canada to the United States is 71,765,252 SME. Of this amount no more than 38,642,829 SME may be specified woven fabrics and made-up goods and no more than 38,642,829 SME may be specified knit fabrics and made-up goods.
4.3 Certificates of Eligibility for TPL are issued at the discretion of the Minister under the authority of the EIPA. Nothing in this or other Notices or other communications can guarantee or be taken to guarantee the issuance of a Certificate of Eligibility. However, it is the Minister's intent to normally recognize TPL allocations in the disposition of applications for Certificates of Eligibility for TPL.
4.4 TPL allocations are not an asset of a TPL holder and there is no property value associated with a TPL allocation. All aspects of TPL utilization and all related activities are subject to verification. Pursuant to sub-section 10.(1) of the EIPA, the Minister may amend, suspend, cancel or re-instate any permit, certificate, allocation or other authorization issued or granted under the Act.
4.5 Exporters are advised to maintain records regarding the country of origin of the fabric, yarns or fibres (whichever is applicable) which are used is making the textile goods, as well as, information on where the goods have been woven, knit or finished and cut sewn or otherwise assembled, as they may be requested to present them upon or subsequent to export.
4.6 Applicants for an EIPA permit, allocation or other EIPA authorization have an obligation to keep for a period of six years all records that are necessary to determine whether the applicant has complied with the EIPA. Failure to keep records is an offence punishable under the EIPA.
5.1 Subject the EIPA, the EIPA regulations and related policies, a company that received a TPL allocation in one year may receive an allocation in the next year that reflects its actual level of TPL use. TPL cannot be carried over to the next year, nor borrowed from the next year. All unused TPL reverts to the Minister.
5.2 Woven fabric, knit fabric and other goods of HS subheading 9404.90 (e.g. quilts, comforters) TPL types will be allocated to historical TPL holders on a basis of their historical allocations, as adjusted, if necessary (e.g. for underutilization or return of TPL to the Minister). Any remaining balance in these TPL types will be allocated on a first-come, first-served basis.
6.1 Inquiries concerning TPL administration, as well as correspondence authorizing brokers to conduct services related to transfers, may be addressed to:
Foreign Affairs and International Trade Canada
Trade Controls Policy Division
Export and Import Controls Bureau
Textiles and Clothing Section (TICT)
Lester B. Pearson Building,
125 Sussex Drive