Part IIOrderVolume 158, Number 13Published: June 19, 2024

Remission for CTMA Ranger Import Duties

CTMA Ranger Remission Order: SOR/2024-125

This order lets Gestion C.T.M.A. Inc. recover the difference between the 25% Most-Favoured-Nation tariff it expected and the 35% General Tariff charged when the tug CTMA Ranger was imported in 2022 (about $0.6 million). The company must provide any evidence requested by the Canada Border Services Agency and submit a remission claim to the Minister of Public Safety and Emergency Preparedness within two years of the order's registration (order registered and in force 2024-06-10).

Published
June 19, 2024
Department
Unavailable
Section
CTMA Ranger Remission Order
Comment deadline
Unavailable
Effective date
June 10, 2024
Publication part
Part II

Summary

Summary#

The CTMA Ranger Remission Order lets Gestion C.T.M.A. Inc. recover part of the customs duty it paid when it imported the tug CTMA Ranger in 2022. The remission covers the difference between the 25% tariff the company expected and the 35% tariff that was charged — about $0.6 million.

What it does#

  • Grants a remission to Gestion C.T.M.A. Inc. equal to the difference between duties paid under the General Tariff and what would have been payable under the Most-Favoured-Nation tariff for the CTMA Ranger imported in 2022.
  • Restores the tariff outcome the company expected when it bought the tug (the move is limited to this single import).
  • Sets conditions:
    • the importer must provide any evidence the Canada Border Services Agency asks for to confirm eligibility; and
    • the importer must make a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the order comes into force.

Who's affected#

  • Directly: Gestion C.T.M.A. Inc., the operator that owns and runs the tug CTMA Ranger.
  • Indirectly: the communities and businesses served by CTMA (the company runs ferry and freight services for the Magdalen Islands), because the company's costs were affected by the higher tariff.
  • The order is specific to this one company and import. It does not change tariff rules for other importers.

Why it matters#

  • It refunds about $0.6 million to CTMA, correcting a cost spike caused by a tariff policy change between the purchase and the ship’s arrival.
  • That money could matter for local transport and ferry services that support the Magdalen Islands’ economy and residents.
  • For the public, it shows the government can use a remission order to address one-off, unforeseen financial impacts from sudden policy changes, but it does not change the broader tariff policy.

Key topics

Customs TariffMost-Favoured-Nation tariffMFNGeneral TariffGestion C.T.M.A. Inc.CTMA RangerCanada Border Services AgencyMinister of Public Safety and Emergency PreparednessDepartment of Financecustoms dutiestariff remissiontugboatshipsMagdalen IslandsCap-aux-Meules

Source: Canada Gazette

Official source