Notice to Importers

Administration of the Canada-Chile Free Trade Agreement- Provisions Relating to Textile and Apparel Goods

Serial No. 565
Date: December 23, 1997

Table of Contents

  1. Purpose
  2. FTA Provisions
  3. TPL Levels
  4. TPL Access
  5. Import Permit Fees
  6. Enquiries

1. Purpose:

1.1 This Notice to Importers provides an explanation of the provisions of the Canada-Chile Free Trade Agreement (CCFTA) as they relate to textiles and apparel and outlines the following Tariff Preference Level import quotas:

  1. cotton or man-made fibre apparel and made-up goods;
  2. wool apparel and made-up goods;
  3. cotton or man-made fibre fabrics and made-up goods,
  4. wool fabrics and made-up goods; and,
  5. cotton or man-made fibre spun yarns. The CCFTA entered into effect on July 4, 1997.

2. FTA Provisions

2.1 Annex C-00-B of the CCFTA provides for the elimination of customs duty on originating textile goods by January 1, 2001 and apparel goods by January 1, 2003 between Chile and Canada.

2.2 The Rules of Origin for textiles and apparel goods are set out in Annex D-01, Section XI and Appendix 5.1, Annex C-00-B. Although there are several specific exceptions, in general, the rule of origin may be described as a "yarn forward" rule, requiring the yarn, fabric and finished product to all originate from the CCFTA countries, namely, Canada and Chile. The exceptions range from a stricter "fibre forward" rule in the case of knit made-up articles to a less rigid "single transformation" rule in the case of brassieres.

2.3 Annex C-00-B, Section 5 and Appendix 5.1 set out special provisions applicable to certain textile and apparel goods. Under Appendix 5.1, goods which would not otherwise satisfy the CCFTA Rules of Origin (Annex D-01), will nevertheless qualify for CCFTA duty rates up to specified annual levels, called Tariff Preference Levels (TPLs). Above these levels, non-originating textiles and apparel goods will be subject to the Most-Favoured-Nation tariff rate.

3. TPL Levels

3.1 Importers should note that under the CCFTA there is an agreement for conversion of the primary units of measure (other than for yarns) into Square Metre Equivalents (SME) by means of conversion factors identified in Appendix 5.2 of Annex C-00-B.

3.2 The annual TPL levels for imports of non-originating goods from Chile to Canada under the CCFTA implemented on July 4, 1997 are as follows:

  • Cotton or man-made fibre apparel and made-up goods: 2,000,000 SME;
  • Wool apparel and made-up goods: 100,000 SME;
  • Cotton or man-made fabrics and made-up good: 1,000,000 SME;
  • Wool fabrics and made-up goods: 250,000 SME; and,
  • Cotton or man-made spun yarn: 500,000 KGM.

3.3 The annual TPLs for wool and cotton or man-made fibre apparel and made-up goods will be increased annually by two per cent (2%) for six (6) consecutive years beginning January 1, 1998.

4. TPL Access

4.1 Until further notice, each of the TPLs will be made available on a "first-come, first-served" basis under the CCFTA.

5. Import Permit Fees

5.1 The fees for import permits, billing arrangements and cancellation of permits are provided in Notice to Importers, Serial No. 508, May 16, 1995.

6. Enquiries

6.1 Enquiries may be addressed to:

Export and Import Controls Bureau 
Foreign Affairs and International Trade Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 613-996-3711
Facsimile: 613-995-5137