Canada Considering Duty-Free Treatment for Large Ships
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Canada’s Department of Finance is seeking comments from interested parties by 11 December on a proposal that would provide duty-free treatment through a duty remission order to imports of the following types of seagoing vessels of a length of 129 metres or more: (1) tankers of HTSCA subheading 8901.20 and bulkers, unloaders and cargo vessels of all kinds of HTSCA subheading 8901.90, and (2) ferries of HTSCA subheading 8901.10. Imports of these vessels into Canada are currently subject to a 25 percent MFN duty rate, although Canadian authorities have waived payment of this duty on a case-by-case basis taking into account individual waiver requests and relevant economic factors.
The Department of Finance notes that this proposal is based on preliminary discussion with the Shipbuilding Association of Canada, the Canadian Shipowners Association and other stakeholders. If approved, the proposal would enter into force with respect to subject merchandise imported into Canada on or after 1 January 2010.
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