Textile Export Certificate Changes

Summary#

These are final regulations, SOR/2020-71, that change several existing export rules made under the Export and Import Permits Act. They update definitions and application rules for export certificates covering certain textile and apparel tariff items, and they take effect when section 40 of the Canada–United States–Mexico Agreement Implementation Act comes into force (publication: April 29, 2020).

What it does#

• Changes definitions in the Issuance of Certificates Regulations, including repealing the old “export development plan” and replacing the definitions of export performance, exporter and fabric and made-up goods.
• Adds a new definition for metallized yarn (a specific yarn tariff line formed in Canada from fibres obtained outside the free trade area).
• Replaces the rule about how the Minister decides to issue a certificate. The Minister must now consider:
  • the exporter’s recent export performance to the United States or Mexico;
  • the degree of demand for certificates; and
  • the effective use and protection of benefits under CUSMA.
• Sets a detailed list of information that applicants must provide when applying for a certificate, including contact details, tariff classification, quantity, value, shipment and exit dates, port of exit, importer/consignee, and country of origin.
• Updates the definition of “product” in the Export Permits Regulations, Export Allocations Regulations, and Export Permits Regulations (Non‑strategic Products) to refer to items 5200 to 5210 of Group 5 of the Export Control List (textile/apparel tariff lines).
• Allows certificate holders to request written amendments to their certificates before expiry, explaining the requested change and why.

Who's affected#

• Businesses and individuals who export or plan to export textile and apparel goods covered by items 5200 to 5210 to the United States or Mexico.
• Exporters of fabrics, made-up textile goods, spun yarn and metallized yarn, and the agents or mandatary representatives who apply for certificates on their behalf.
• Customs, trade compliance staff, and anyone who applies for or manages export certificates for these products.
• It is unclear from the notice whether other downstream industries (e.g., retailers or importers in the US/Mexico) will see direct effects.

Why it matters#

• The changes clarify which textile and apparel goods are covered and tighten what information exporters must give when asking for certificates. That can affect how quickly exporters get permissions and how allocation decisions are made.
• The new decision rules give priority signals: past export performance and certificate demand can influence who gets export allocations. That matters for exporters competing to ship goods to the US and Mexico under rules linked to CUSMA.
• The rules only come into force when the linked part of the CUSMA implementation law becomes active, so timing depends on that separate step.