Fabric Definition Updated for Bedding Goods

Summary#

These are the final regulations titled Regulations Amending the Issuance of Certificates Regulations (Miscellaneous Program) (SOR/2022-38). They change the definition of “fabric and made-up goods” in the Issuance of Certificates Regulations under the Export and Import Permits Act, to clarify which finished goods are covered. The regulations came into force on March 4, 2022.

What it does#

• Replaces paragraph (b) of the definition of “fabric and made-up goods” in section 2 of the Issuance of Certificates Regulations.
• The new wording says the definition includes goods under tariff subheadings 9404.40 and 9404.90 that are finished, cut and sewn, or otherwise assembled in Canada from fabrics of a long list of specified fabric subheadings produced or obtained outside the free trade area.
• States the amendments come into force on the day the regulations were registered (see March 4, 2022).
• Notes that the Regulatory Impact Analysis Statement for these regulations appears after SOR/2022-36 in the Canada Gazette.

Who's affected#

• Businesses that finish, cut and sew, or assemble goods in Canada that fall under tariff subheadings 9404.40 and 9404.90 using fabrics made outside the free trade area.
• Importers, exporters and customs brokers who use or rely on certificates issued under the Issuance of Certificates Regulations (the Miscellaneous Program).
• Government officials who administer permits and certificates under the Export and Import Permits Act.
• It is unclear from the notice how many businesses are affected or whether the change narrows or broadens coverage for any specific firm.

Why it matters#

• The change clarifies which finished bedding or similar goods (those under 9404.40 and 9404.90) count as “fabric and made-up goods” when they are made in Canada from certain foreign-produced fabrics.
• That clarification affects who needs certificates or permits under the Miscellaneous Program and how those goods are treated for export/import control purposes.
• For affected businesses, the change could change paperwork, permit requirements, or compliance steps when bringing fabrics or finished products into or out of Canada.
• For full details on costs and expected impacts, see the Regulatory Impact Analysis Statement referenced in the Canada Gazette entry.