CCOFTA Short-Supply Textile List

Summary#

The Order Amending the Schedule to the Customs Tariff (CCOFTA Short Supply) adds a list of yarns and fabrics that Canada and Colombia agreed are not available in sufficient quantities in the free-trade area. That change lets certain textile and apparel made in Colombia using those listed inputs qualify for duty-free treatment under the Canada–Colombia Free Trade Agreement (CCOFTA). The order was registered (and came into force) on January 10, 2020 and published in the Canada Gazette on January 22, 2020.

What it does#

• Adds a short‑supply note to the Customs Tariff schedule that lists 73 specific yarns and fabrics.
• Allows textile products (tariff chapters 50–60) and garments (tariff chapters 61–63) made in Colombia from those listed inputs to claim the Colombia tariff (i.e., preferential duty treatment), even if the yarn or fabric was produced outside Canada or Colombia.
• Keeps the other usual rules for proving origin in place; the goods must still meet the CCOFTA rules of origin.
• Implements Canada’s part of an item list agreed with Colombia on October 24, 2017.

Who's affected#

• Importers in Canada who buy textile products and apparel from Colombia.
• Manufacturers in Colombia that assemble or produce textile goods using inputs from outside the Canada–Colombia area.
• Canadian textile producers could be affected in principle, but the government’s analysis says the listed inputs are not produced in commercial quantities in Canada.
• The Canada Border Services Agency (CBSA) will apply and monitor the new tariff treatment in its normal customs work.
• Consumers and retailers could notice changes in prices or sourcing for some clothing and textile products.

Why it matters#

• It makes it easier and cheaper for Canadian importers to bring in certain Colombian-made textiles and clothing. That can lower import costs and, potentially, retail prices.
• The government estimates the fiscal cost as duties foregone of up to $760,000 per year—so the budget impact is modest.
• It completes a bilateral step under the CCOFTA to reflect items that the parties agreed are in “short supply” in the free‑trade area.
• It is mainly an administrative trade-implementation step, not a change to customs paperwork or broader import rules.