Export Permit Rules: UK Tariff Reference Added

Summary#

The rule titled Regulations Amending the Export Permits Regulations (Non-strategic Products): SOR/2021-71 updates how certain non‑strategic products are described for export permits. It mainly lets Canada refer to the United Kingdom’s tariff rules as an alternative to the European Union’s tariff rules and removes one short section of the regulations. The change comes into force when section 16 of the Canada – United Kingdom Trade Continuity Agreement Implementation Act takes effect.

What it does#

• Changes a line in the Export Permits Regulations (Non-strategic Products) so that, for products listed in the export control schedule, Canada can use either:
  • Council Regulation (EEC) No 2658/87 (the European Union tariff rules), or
  • the Tariff of the United Kingdom, as established by the Taxation (Cross-border Trade) Act 2018 (United Kingdom).
• Repeals section 4 of the regulations (the text of that section is not shown in the notice).

Who's affected#

• Exporters and businesses that trade the products identified in items 5205 to 5210 of Group 5 in the Export Control List.
• Government officials who issue and check export permits for those products.
• It is unclear from the notice whether any other groups are affected.

Why it matters#

• This change lets Canadian export rules point to the UK’s tariff system as well as the EU’s. That helps keep product classifications and export permits working smoothly now that the UK has its own tariff rules.
• For affected exporters, it means the references used to describe goods on permits will match the tariff system that applies to the UK, which can reduce confusion when trading with the UK.
• The exact date this takes effect depends on when section 16 of the Canada – United Kingdom Trade Continuity Agreement Implementation Act comes into force; the Gazette notice does not give a specific calendar date.