MN-2004-002 - Availability of Textile Inputs...

January 20, 2005

20 January 2005

MN-2004-002 -- Inquiry into the Availability of Textile Inputs Produced in Canada

NOTICE OF COMMENCEMENT OF INQUIRY

REFERENCE

The Canadian International Trade Tribunal (the Tribunal) hereby gives notice that it is commencing an inquiry into the availability of fibres and yarns produced by Canadian manufacturers, and on the availability of fabrics produced by Canadian manufacturers for use in the production of apparel. This matter was referred to the Tribunal on January 10, 2005, by the Honourable Ralph Goodale, Minister of Finance (the Minister), pursuant to section 19 of the Canadian International Trade Tribunal Act (CITT Act). In his letter, the Minister indicated that, on December 14, 2004, the Government announced measures aimed at improving the global competitiveness of the textiles and apparel industries, and that these measures include the elimination of tariffs on imported fibres and yarns, as well as the elimination of tariffs on imported fabrics used in the production of apparel. The Minister also indicated that, to minimize adverse effects on current domestic production, it is his intention to retain tariffs on fibres, yarns and fabrics where domestic suppliers can demonstrate production in Canada. The preliminary information-gathering and analysis phase of the inquiry must be completed by March 31, 2005. The Tribunal must submit its report to the Minister by June 30, 2005.

The specific terms of reference read as follows:

1. The Tribunal is directed to inquire into and report on the extent to which domestically produced fibres and yarns of Chapters 39, 40, 51, 52, 53, 54, 55, 56, 58, 59, 60 or 70 of the Customs Tariff were sold in the domestic market or used by textile producers for internal processing since January 1, 20031, including:

a) a detailed product description of these fibres and yarns, and their classification in the List of Provisions set out in the Schedule to the Customs Tariff, identified as new eight-digit tariff item numbers, where required, to distinguish these products from fibres and yarns not found to be produced in Canada; and,
b) the total value of sales or, where applicable, the total value of production for internal processing, of the fibres and yarns identified in a) above, for each of the eight-digit tariff items, and the significance of those sales to domestic textile manufacturers.

1. In exceptional circumstances, the Tribunal may consider fibre and yarn sales or evidence of internal processing since January 1, 2002.
2. The Tribunal is also directed to inquire into and report on the extent to which domestically produced fabrics of Chapters 39, 40, 51, 52, 53, 54, 55, 56, 58, 59, 60 or 70 of the Customs Tariff were sold to domestic apparel producers or used in the internal production of apparel since January 1, 20032, including:
a) a detailed product description of these fabrics, and their classification in the List of Provisions set out in the Schedule to the Customs Tariff, identified as new eight-digit tariff item numbers, where required, to distinguish these products from fabrics found not to be produced in Canada; and,
b) the total value of the fabrics or, where applicable, the total value of fabrics produced for the internal production of apparel, identified in a) above, for each of the eight-digit tariff items, and the significance of those sales to domestic textile manufacturers.

2. In exceptional circumstances, the Tribunal may consider fabric sales or evidence of internal production since January 1, 2002.

The Tribunal is also directed to report on any other matter that it determines to be of relevance to this inquiry.

PRODUCT COVERAGE

The textile inputs subject to this inquiry are fibres and yarns produced by Canadian manufacturers, regardless of end use, and fabrics produced by Canadian manufacturers for use in the production of apparel. When imported, these textile inputs fall under Chapters 39, 40, 51, 52, 53, 54, 55, 56, 58, 59, 60 or 70 of the Customs Tariff. Tariff items and rates of duty for each Chap


Topic(s): 
Acts, Regulations, Policies & Decisions / Special Import Measures Act (SIMA)
Information Source: 
Canadian International Trade Tribunal (CITT)
Document Type: 
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