Definition Change for Apparel Goods

Summary#

These are the final Regulations Amending the Issuance of Certificates Regulations (registration SOR/2020-147), published in the Canada Gazette on July 8, 2020. They replace the definition of what counts as “apparel goods” for the purposes of the Issuance of Certificates Regulations and set when the change comes into force.

What it does#

• Replaces the definition of apparel goods in the Issuance of Certificates Regulations so that the term covers only garments that:
  • are listed in the tariff schedule of the Customs Tariff and are both cut or knit to shape and sewn or otherwise assembled in Canada from fabric or yarn produced or obtained outside of the free trade area; and
  • specifically includes goods in Chapters 61 and 62, and goods classified under heading 96.19 that are textile material other than wadding.
• Sets the start date: the amendments come into force on the day section 40 of the Canada–United States–Mexico Agreement Implementation Act comes into force. If these regulations are registered after that day, they come into force on the day they are registered.

Who's affected#

• Businesses and people who deal with certificates under the Issuance of Certificates Regulations, especially:
  • manufacturers or assemblers of clothing in Canada that use fabric or yarn made outside the free trade area;
  • anyone who needs a certificate that depends on whether a product is classified as an “apparel good.”
• It is not fully spelled out in the notice how broad the administrative or commercial effect will be, so other parts of the apparel supply chain or customs officials may also be affected.

Why it matters#

• The change clarifies which garments assembled in Canada count as “apparel goods” for certificate purposes. That affects eligibility for whatever permits or certificates the Issuance of Certificates Regulations control.
• The timing links this technical change to the coming into force of part of the law implementing the Canada–United States–Mexico Agreement, so it is coordinated with broader trade-rule changes.
• The Gazette notice does not explain detailed operational or economic impacts, so businesses that assemble or trade clothing should check how their certificates or reporting may need to change.