March 23, 2017
In its 2017 budget the Government of Canada announced changes to the rules of origin under Canada's tariff regime for least developed countries (LDCs) in order for more apparel products imported from the world's poorest countries to qualify for duty-free treatment when imported into Canada.
Specifically, the Government proposes that the General Preferential Tariff (GPT) and Least Developed Country Tariff (LDCT) Rules of Origin Regulations be amended to allow LDCs to use manufacturing inputs sourced and processed in an expanded list of countries in the production of T-shirts and pants that qualify for duty-free importation into Canada.
These proposed changes will ensure that origin rules more accurately reflect the sourcing patterns and manufacturing capabilities of certain LDCs for these products. In particular, it is expected that the amendments will help support economic development, jobs and investment in Haiti, the only LDC in the Americas region.
Ottawa advises that the necessary regulatory amendments will be put forward for approval in the coming weeks.