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Canada will eliminate duty on certain agri-food processing inputs

December 29th, 2016

The Government of Canada published this week an order amending the Customs Tariff to eliminate customs duties on a number of goods used mainly in the production of agri-food products.

The Order eliminates tariffs on certain inputs used by Canadian agri-food processors in their operations. It will come into force on January 16, 2017.

Public consultations on an eventual duty elimination were launched by the Government in April 2016, through a notice published in the Canada Gazette. Several written submissions were received in response to the notice from companies and associations representing a broad range of processors, producers, distributors and retailers. The consultations confirmed broad interest in eliminating tariffs on imported ingredients.

Some stakeholders expressed concerns with respect to tariff elimination on a limited number of products. In those cases, tariffs were maintained, or were only eliminated when used for processing, but not for other uses.

The Department of Finance advises that additional information will be provided by the Canada Border Services Agency regarding the relevant update to the Customs Tariff.

Link: Schedule to the Customs Tariff, 2016-2 (Agri-food Inputs) - Order Amending

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