Denim Apparel Fabrics Remission Order

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-88-333/FullText.html

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Denim Apparel Fabrics Remission Order

SOR/88-333CUSTOMS TARIFF
Registration 1988-06-23
Order Respecting the Remission of Customs Duties on Denim Apparel Fabrics
P.C. 1988-1245  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 denim apparel fabrics.
Return to footnote *S.C. 1987, c. 49Short Title

1 This Order may be cited as the Denim Apparel Fabrics Remission Order.

Interpretation

2 In this Order,

apparel
apparel does not include footwear, headwear, handwear, belts, ties, scarves, hosiery and other accessories; (vêtement)
apparel manufacturer

apparel manufacturer means a person in Canada that

(a) owns the denim fabrics at the time he uses them in the manufacture of apparel,
(b) is primarily engaged in the design of apparel and in the marketing of apparel to retail, corporate, industrial or institutional clients, and

(c) meets one of the following requirements:

(i) the person owns or leases the equipment and premises in Canada in which he manufactures apparel made from denim fabric and in which he performs at least part of the cutting or sewing of the apparel, with the rest, where applicable, being contracted out in Canada, or
(ii) where the cutting and sewing of apparel made from denim fabric are performed on the person’s behalf in Canada, he markets and sells the apparel to retail, corporate, industrial or institutional clients at arm’s length; (fabricant de vêtements)

Canadian denim fabric
Canadian denim fabric means a denim fabric produced in Canada by a denim fabric producer or a denim fabric produced in the United States that is imported into Canada by a denim fabric producer and in respect of which remission has been granted to the denim fabric producer under this Order; (tissu de denim canadien)
denim fabric
denim fabric means a textile fabric consisting solely of cotton, or consisting of cotton mixed solely with polyester, and woven from a set of warp yarns dyed in a rope form or slasher-dyed with indigo paste or sulphur dye-stuffs, whether or not the fabric is overdyed to different colours after weaving, but does not include a denim fabric made on order for a department of the Government of Canada; (tissu de denim)
denim fabric producer
denim fabric producer means a person in Canada that spins and dyes yarns, weaves the yarns into denim fabric and sells the denim fabric to an apparel manufacturer; (fabricant de tissus de denim)
produced in Canada
produced in Canada means, in respect of a denim fabric, woven and finished in Canada from yarns spun and dyed in Canada; (produit au Canada)
produced in the United States
produced in the United States means, in respect of a denim 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)
volume
volume means, in respect of a denim fabric, square metres of the fabric. (volume)

SOR/89-83, s. 2.

Remission of Customs Duties to Denim Fabric Producers

3 Subject to sections 4 and 6, remission is hereby granted, for each of the 1989 to 1993 calendar years, of the customs duties paid or payable under the Customs Tariff on denim fabrics produced in the United States, imported by a denim fabric producer during the period beginning of January 1, 1989 and ending on December 31, 1993 and sold to an apparel manufacturer, in respect of a volume of denim fabrics that is equal to 20 per cent of the total volume of denim fabrics produced in Canada by the denim fabric producer in any calendar year and sold to an apparel manufacturer in the calendar year for which remission is claimed.
SOR/89-83, s. 2.

4 (1) Where the total volume of denim fabrics produced in Canada by a denim fabric producer in any calendar year and sold by the denim fabric producer in Canada to an apparel manufacturer in the calendar year for which remission is claimed is less than the total volume of denim fabrics produced by the denim fabric producer in any calendar year and sold in Canada by the denim fabric producer in the calendar year immediately preceding that year, the volume of denim fabrics in respect of which remission may be granted under section 3 for the following calendar year shall be reduced by 1.5 per cent for every 1 per cent or portion thereof of the decrease in volume.
(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 calendar year.

SOR/89-83, s. 2;
SOR/92-500, s. 2;
SOR/94-678, s. 2.

Remission of Customs Duties to Apparel Manufacturers

5 Subject to section 6, remission is hereby granted, for each of the 1989 to 1993 calendar years, of the customs duties paid or payable under the Customs Tariff on denim fabrics produced in the United States and imported into Canada by an apparel manufacturer during the period beginning on January 1, 1989 and ending on December 31, 1993, for use by him in the manufacture of apparel in Canada, at the following rate:

(a) 100 per cent of the customs duties, where 80 per cent on more of the total volume of denim fabrics used by the apparel manufacturer in the manufacture of apparel in that calendar year is Canadian denim fabrics purchased from a denim fabric producer; or
(b) 100 per cent of the customs duties minus 10 percentage points for every 1 percentage point or portion thereof by which the volume of Canadian denim fabrics purchased from a denim fabric producer and used by the apparel manufacturer in the manufacture of apparel in Canada is less than 80 per cent of the total volume of denim fabrics used by him in that calendar year.

Conditions

6 Remission is granted under this Order on condition that

(a) the denim fabric producer or apparel manufacturer has not been paid, and has not claimed, a remission of the customs duties on the denim fabrics in accordance with the Shirting Fabrics Remission Order, 1988, the Outerwear Fabrics and Outerwear Apparel Remission Order or the Outerwear Greige Fabrics for Converting Remission Order;
(b) a claim for remission is made to the Minister within three years after the day on which the denim fabrics are imported into Canada;
(c) the denim fabric producer or 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 denim fabric producer or 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 denim fabric producer or the apparel 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 the volume of denim fabric for which remission may be granted under section 3 or 5 or $1,000,000, whichever is the lesser; and
(e) the denim fabric producer or apparel manufacturer provides the Minister of Regional Industrial Expansion with such reports respecting the manufacture of denim fabrics by the denim fabric producer or of apparel by the apparel manufacturer as may be requested by that Minister.