Designer Remission Order, 2001

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2002-4/FullText.html

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Designer Remission Order, 2001

SOR/2002-4CUSTOMS TARIFF
Registration 2001-12-13
Designer Remission Order, 2001
P.C. 2001-2283 2001-12-13Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 115 of the Customs TariffFootnote a, hereby makes the annexed Designer Remission Order, 2001.
Return to footnote aS.C. 1997, c. 36Interpretation

1 In this Order,

apparel

apparel means

(a) any article of heading Nos. 61.01, 61.02, 61.03, 61.04, 61.05, 61.06, 61.07, 61.08, 61.09, 61.10, 61.11, 61.12, 61.13, 61.14, 61.15, 61.16, 61.17, 62.01, 62.02, 62.03, 62.04, 62.05, 62.06, 62.07, 62.08, 62.09, 62.10, 62.11, 62.12, 62.13, 62.14, 62.15, 62.16, 62.17, 65.03, 65.04, 65.05 and 65.06, subheading Nos. 4203.10, 4203.29, 4203.30, 4203.40, 4303.10, 4818.50 and tariff item Nos. 3926.20.92, 3926.20.93, 3926.20.94, 3926.20.95, 3926.20.99, 4015.19.90 and 4015.90.90 in the List of Tariff Provisions set out in the schedule to the Customs Tariff; and
(b) any article of clothing or clothing accessories of subheading No. 4304.00 in that List. (vêtement)

apparel designer

apparel designer means an individual who

(a) possesses a degree or diploma in fashion design or apparel design from a recognized educational institution or has an equivalent proficiency in the creation of innovative apparel; and
(b) carries out the creation of innovative apparel, including the conception of styles, the drafting and development of collections, the preparation of sketches, collection boards or story boards, the selection, sampling and testing of fabrics, the preparation of samples of innovative apparel and the retention of any records respecting the creation of innovative apparel, or is directly responsible for those activities being undertaken by other individuals employed by the same employer. (couturier)

collection
collection means a product line of original designer apparel to be presented to customers for a specific fashion season. (collection)
fabric
fabric means all fabric of heading Nos. 51.11, 51.12, 51.13, 52.08, 52.09, 52.10, 52.11, 52.12, 53.09, 53.10, 53.11, 54.07, 54.08, 55.12, 55.13, 55.14, 55.15, 55.16, 56.02, 56.03, 58.01, 58.02, 58.03, 58.04, 58.05, 58.06, 58.07, 58.08, 58.09, 58.10, 58.11, 59.03, 59.06 and 59.07 in the List of Tariff Provisions set out in the schedule to the Customs Tariff and all fabric of chapter 60 in that List, excluding any fabric that contains aramid fibres. (tissu)
innovative
innovative means apparel resulting from an on-going creative process that primarily entails the establishment of new relationships among the following principal elements: fabric, colour, assembly, shape and function. (innovateur)
innovative apparel
innovative apparel means apparel that results from an ongoing creative process that primarily entails the establishment of new relationships among the following principal elements, namely fabric, colour, assembly, shape and function. (vêtement innovateur)
limited quantities
limited quantities[Repealed, SOR/2004-94, s. 1]
name
name[Repealed, SOR/2003-128, s. 1]
original designer apparel
original designer apparel means innovative apparel that is available only in limited quantities, that is created by a recognized apparel designer or a recognized apparel design house and that bears the trade-mark of that designer or design house, permanently affixed, as its principal commercial identification. (vêtement de couturier original)
recognized apparel designer

recognized apparel designer means an individual who

(a) possesses a degree or diploma in fashion design or apparel design from a recognized educational institution or has an equivalent proficiency in the creation of innovative apparel;
(b) carries out the creation of innovative apparel, including the conception of styles, the drafting and development of collections, the preparation of sketches, collection boards or story boards, the selection, sampling and testing of fabrics, the preparation of samples of innovative apparel, and the retention of any records respecting the creation of innovative apparel, or is directly responsible for those activities being undertaken by other individuals employed by the same employer; and
(c) has control, whether in their own right or indirectly through a partnership, corporation, trust or any other entity, over the use of their trade-mark. (couturier reconnu)

recognized apparel design house

recognized apparel design house means a company or partnership that

(a) employs at least one apparel designer; and
(b) has control, whether in its own right or indirectly through a partnership, corporation, trust or any other entity, over the use of its trade-mark. (maison de couture reconnue)

trade-mark
trade-mark means a word, symbol or design, or any combination of these, used to distinguish the wares of one person or organization from those of others in the marketplace. (marque de commerce)
winter outerwear
winter outerwear means lined and insulated apparel that is worn over other clothing for protection against the cold. (vêtement de dessus)

SOR/2002-169, s. 1;
SOR/2003-128, s. 1;
SOR/2003-268, s. 1;
SOR/2004-94, s. 1;
SOR/2005-351, s. 1.

Application

2 This Order applies to producers of original designer apparel who meet the following criteria:

(a) they are engaged in the creation, the manufacture, or the contracting of the manufacture, and the sale of original designer apparel;
(b) they are a sole proprietorship, corporation or partnership that employs at least one apparel designer or recognized apparel designer or are themselves recognized apparel designers; and
(c) a minimum of 85 per cent of their total net sales revenue is generated from the sale of their original designer apparel for each calendar year for which they claim a remission.

SOR/2003-128, s. 2;
SOR/2003-268, s. 2;
SOR/2004-94, s. 2.

Remission

3 (1) Subject to subsection (2) and if the conditions set out in section 4 are met, remission is granted to any producer of original designer apparel of the customs duties paid or payable under the Customs Tariff in respect of fabrics imported into Canada during the period beginning on December 13, 2001 and ending on December 31, 2014.
(2) In the case of fabrics used for the manufacture of swimwear of subheading Nos. 6112.31, 6112.39, 6112.41, 6112.49, 6211.11 and 6211.12 in the List of Tariff Provisions set out in the schedule to the Customs Tariff, remission is granted for the period beginning on November 1, 2002 and ending on December 31, 2014.

SOR/2004-94, s. 3;
SOR/2005-351, s. 2;
SOR/2010-263, s. 1.

Previous Version

Conditions

4 Remission is granted on the following conditions:

(a) the fabric in respect of which the claim is made is to be used by the producer of original designer apparel solely for the manufacture of its own men's or women's original designer apparel of chapters 61, 62 and 65 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff, except for the following items:

(i) hosiery of heading No. 61.15 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff,
(ii) [Repealed, SOR/2004-94, s. 4]
(iii) men's underpants and briefs of subheadings Nos. 6107.11, 6107.12, 6107.19, 6207.11 and 6207.19 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff;
(iv) women's briefs and panties of subheadings Nos. 6108.21, 6108.22, 6108.29, 6208.91, 6208.92 and 6208.99 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff,
(v) women's foundation undergarments of heading No. 62.12 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff,
(vi) winter outerwear with an outershell of fabrics of chapters 54, 55 or 59, or heading Nos. 52.10, 52.11 or 52.12 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff,
(vii) apparel that must be worn to protect the wearer from physical harm while performing particular tasks in a work environment, and
(viii) apparel chosen by an employer to be worn exclusively by its employees during working hours;

(b) in respect of the four year period commencing on December 13, 2001, the fabric has a value for duty of $14.00 or more per square metre, indexed annually, in accordance with the administrative guidelines issued by the Canada Border Services Agency, to compensate for inflation;
(c) a claim for remission is made to the Minister of Public Safety and Emergency Preparedness within four years of the date of importation;
(d) if the producer of original designer apparel is not the importer of record of the fabric, the claim is accompanied by a waiver from that importer waiving that importer's right to claim a drawback, refund or remission of the customs duties paid or payable in respect of the fabric;
(e) the producer of original designer apparel submits to the Minister of Public Safety and Emergency Preparedness semi-annual reports that contain information relating to the volume, value and use of fabrics in respect of which a claim for remission was made in that period and any other relevant information necessary to the administration of this Order;
(f) the producer of original designer apparel agrees that it shall be subject to audit by the Canada Border Services Agency for the purpose of verifying the accuracy of the amount of remission and whether the information supplied to determine eligibility for remission is accurate and complete and whether the facts upon which the Agency relied to determine eligibility for remission remain unchanged in all material respects; and
(g) if the Canada Border Services Agency elects to conduct the audit referred to in paragraph (f), the information supplied shall be found to be accurate and complete and the facts relied on shall be found to have remained unchanged in all material respects.

SOR/2004-94, s. 4;
SOR/2005-351, s. 4;
SOR/2010-263, s. 2.

Previous Version

Coming into Force

5 This Order comes into force on the day on which it is registered.