Blouses and Shirts Remission Order

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-88-332/FullText.html

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Blouses and Shirts Remission Order

SOR/88-332CUSTOMS TARIFF
Registration 1988-06-23
Order Respecting the Remission of Customs Duties on Blouses and Shirts
P.C. 1988-1244 1988-06-23Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 101 of the Customs TariffFootnote *, is pleased hereby to make the annexed Order respecting the remission of customs duties on blouses and shirts.
Return to footnote *S.C. 1987, c. 49Short Title

1 This Order may be cited as the Blouses and Shirts Remission Order.

Interpretation

2 In this Order,

blouse and shirt
blouse and shirt means a woman’s or girl’s apparel made from a woven textile fabric, designed to cover the upper part of the body, whether or not having sleeves and whether or not having a full or partial opening that starts at the neckline, but does not include such apparel as an undershirt, T-shirt and sweatshirt, and a blouse and shirt made on order for a department of the Government of Canada; (blouse et chemisier)
blouse and shirt manufacturer

blouse and shirt manufacturer means a person in Canada who

(a) owns the fabrics at the time he uses them in the manufacture of blouses and shirts and, where the person also manufactures coordinated apparel, owns the fabrics at the time he uses them in the manufacture of coordinated apparel,
(b) is primarily engaged in the design, marketing, manufacturing, shipping and selling of blouses and shirts to retail, corporate, industrial or institutional clients, and
(c) owns or leases the equipment and premises in Canada in which he manufactures blouses and shirts and, where applicable, coordinated apparel and in which he performs at least part of the cutting or sewing of the blouses and shirts and coordinated apparel, with the rest, where applicable, being contracted out in Canada; (fabricant de blouses et chemisiers)

coordinated apparel
coordinated apparel means a woman’s or girl’s jacket that is coordinated with a skirt or pants or a coordinated two-piece dress, linked by colour, shape or detail with the express purpose of being sold and worn together, but does not include such apparel as an athletic suit, outerwear apparel, coordinated denim apparel and coordinated apparel made on order for a department of the Government of Canada; (coordonné)
coordinated apparel manufacturer

coordinated apparel manufacturer means a person in Canada who

(a) owns the fabrics at the time he uses them in the manufacture of coordinated apparel and, where the person also manufactures blouses and shirts, owns the fabrics at the time he uses them in the manufacture of blouses and shirts,
(b) is primarily engaged in the design, marketing, manufacturing, shipping and selling of coordinated apparel to retail, corporate, industrial or institutional clients, and
(c) owns or leases the equipment and premises in Canada in which he manufactures coordinated apparel and, where applicable, blouses and shirts and in which he performs at least part of the cutting or sewing of the coordinated apparel and the blouses and shirts, with the rest, where applicable, being contracted out in Canada; (fabricant de coordonnés)

finished
finished means, in respect of a fabric, that the fabric has undergone all processes required to convert it from greige fabric into a fabric sold to a blouse and shirt manufacturer; (fini)
greige
greige means, in respect of a fabric, that the fabric has come directly from the loom and has not undergone any process required to convert it into a finished fabric and includes an unfinished fabric woven from coloured or dyed yarns; (écru)
jacket
jacket means apparel that is worn over other apparel and covers primarily the upper part of the body and includes a blazer, but does not include such apparel as an athletic suit and outerwear apparel; (veste)
net factory value
net factory value means, in respect of a calendar year, the value of the sales in that year of blouses and shirts or coordinated apparel, less discounts, rebates, allowances, foreign duty costs and shipping costs resulting from the sales; (valeur nette à l’usine)
produced
produced means, in respect of a fabric, woven, finished and sold in Canada; (produit)
produced in the United States
produced in the United States means, in respect of a fabric, woven and finished in the United States from yarns spun and dyed in the United States or finished in Canada from yarns spun, dyed and woven in the United States; (produit aux États-Unis)
two-piece dress
two-piece dress means apparel consisting of two pieces of which one piece is a skirt and the other is a coordinated top designed in such a way that it can be worn inside and can be worn outside the skirt. (ensemble deux pièces)

SOR/89-83, s. 2;
SOR/91-550, s. 2.

Remission of Customs Duties

3 Subject to sections 6 and 7, remission is hereby granted, for each of the 1989 to 1997 calendar years, of the customs duties paid or payable under the Customs Tariff on blouses and shirts imported into Canada by a blouse and shirt manufacturer or a coordinated apparel manufacturer during the period beginning on January 1, 1989 and ending on December 31, 1997 in an amount calculated under section 4 or 5.

4 Subject to section 6, the remission granted to a blouse and shirt manufacturer under section 3 shall be

(a) for 1989, the customs duties paid or payable on a portion of the value for duty of blouses and shirts, that portion being equal to 20 per cent of the average net factory value, for the three calendar years immediately preceding 1989, of the blouses and shirts and coordinated apparel manufactured in Canada by the blouse and shirt manufacturer;

(b) for each of the 1990 to 1997 calendar years, the customs duties paid or payable on a portion of the value for duty of blouses and shirts, that portion being equal to 20 per cent of the average net factory value, for the three calendar years immediately preceding the calendar year in which the blouses and shirts are imported, of the blouses and shirts and coordinated apparel manufactured in Canada by the blouse and shirt manufacturer, if, in the calendar year for which remission is claimed, the value of purchases by the blouse and shirt manufacturer of fabrics produced or finished in Canada in any calendar year or produced in the United States in any calendar year and used by the manufacturer in the manufacture in Canada of blouses and shirts by December 31, 1997 is equal to or greater than

(i) for 1990 or 1991, 5 per cent of the total value of the fabrics purchased by the blouse and shirt manufacturer in 1990 or 1991, as the case may be,
(ii) for 1992 or 1993, 10 per cent of the total value of the fabrics purchased by the blouse and shirt manufacturer in 1992 or 1993, as the case may be,
(iii) for 1994 or 1995, 15 per cent of the total value of the fabrics purchased by the blouse and shirt manufacturer in 1994 or 1995, as the case may be, and
(iv) for 1996 or 1997, 20 per cent of the total value of the fabric purchased by the blouse and shirt manufacturer in 1996 or 1997, as the case may be; and

(c) for any of the calendar years 1990 to 1997 in which the blouse and shirt manufacturer does not meet the purchase of fabrics requirement set out in paragraph (b), the customs duties paid or payable on a portion of the value for duty of the blouses and shirts that is equal to 15 per cent of the average net factory value of the blouses and shirts and coordinated apparel manufactured in Canada by the blouse and shirt manufacturer for the three calendar years immediately preceding that calendar year.

SOR/89-83, s. 2;
SOR/91-550, s. 2(F);
SOR/92-500, s. 2.

5 Subject to section 6, the remission granted under section 3, for a calendar year, to a coordinated apparel manufacturer shall be equal to the customs duties paid or payable on a portion of the value for duty of blouses and shirts, that portion being equal to 10 per cent of the average net factory value, for the three calendar years immediately preceding the calendar year in which the blouses and shirts are imported, of the coordinated apparel and blouses and shirts manufactured in Canada by the coordinated apparel manufacturer.
SOR/89-83. s. 2.

6 (1) Where, in the calendar year for which remission is claimed, the net factory value of blouses and shirts and coordinated apparel manufactured in Canada by a blouse and shirt manufacturer or a coordinated apparel manufacturer is less than the average net factory value of blouses and shirts and coordinated apparel manufactured in Canada by the blouse and shirt manufacturer or the coordinated apparel manufacturer in the three calendar years immediately preceding that calendar year, the net factory value used to calculate the remission for the following calendar year under section 4 or 5 shall be reduced by 2.5 per cent for every 1 per cent or portion thereof of the decrease in net factory value.
(2) Notwithstanding subsection (1), the reduction referred to in that subsection shall not be applied in the calculation of a remission under this Order in respect of the 1991 or 1992 calendar year.
(3) Notwithstanding subsection (1), the reduction referred to in that subsection shall not be applied in the calculation of a remission under this Order in respect of the 1993 or 1994 calendar year.

SOR/89-83, s. 2;
SOR/91-550, s. 2(E);
SOR/92-500, s. 2;
SOR/94-678, s. 2.

Conditions

7 Remission is granted under this Order on condition that

(a) the blouse and shirt manufacturer or the coordinated apparel manufacturer has been in the business of manufacturing blouses and shirts or coordinated apparel for a minimum of six months in the calendar year in which the blouses and shirts are imported into Canada;
(b) a claim for remission is made to the Minister within three years after the day on which the blouses and shirts are imported into Canada;
(c) the blouse and shirt manufacturer or coordinated apparel manufacturer provides the Minister with such information as may be required for the administration of this Order, in the form determined by the Minister;
(d) the blouse and shirt manufacturer or coordinated apparel manufacturer provides the Minister of Regional Industrial Expansion with such reports respecting the manufacture of blouses and shirts and coordinated apparel manufactured by the blouse and shirt manufacturer or by the coordinated apparel manufacturer as may be requested by that Minister; and
(e) the blouse and shirt manufacturer or coordinated apparel manufacturer gives to the Minister, in respect of each calendar year for which remission is claimed by him under this Order and in order to ensure the performance by the manufacturer of the conditions of this Order, a guarantee bond or other security in an amount estimated by the Minister to be equal to the customs duties payable on blouses and shirts for which remission may be granted under section 3 or $1,000,000, whichever is the lesser.