Maintain TPL for Certain Apparel Goods

Summary#

This is the Order Amending the Import Control List (SOR/2020-146). It updates the definition of certain “apparel goods” so some items that were covered under NAFTA’s tariff preference rules keep that preferential access under the Canada–United States–Mexico Agreement (CUSMA). The order’s coming-into-force is tied to section 40 of the Canada–United States–Mexico Agreement Implementation Act (or the day the order is registered if that happens later).

What it does#

• Replaces the definition of “apparel goods” in the Import Control List so it explicitly includes:
  • goods in Chapters 61 and 62 of the Customs Tariff, and
  • goods under heading 96.19 of the Customs Tariff when they are textile material (not wadding).
• Amends related rules so these goods continue to qualify for Tariff Preference Level (TPL) treatment under CUSMA in the same way they did under NAFTA.
• Sets the order to come into force when section 40 of the Canada–United States–Mexico Agreement Implementation Act comes into force (or on registration if later).

Who's affected#

• Importers and exporters of apparel and related textile goods covered by Chapters 61 and 62 and heading 96.19 (the latter includes items like baby napkins, liners and similar products).
• Clothing manufacturers, retailers and wholesalers that rely on TPL preferential tariffs for those goods.
• Global Affairs Canada and the Canada Border Services Agency, which administer permits and communicate the change to traders.
• If it’s unclear whether a specific product is covered under the listed tariff headings, importers and brokers will need to check tariff classifications.

Why it matters#

• It fixes an omission that occurred during the move from NAFTA to CUSMA, where some apparel items were left out of CUSMA’s TPL coverage because of earlier tariff-heading changes.
• The change preserves preferential tariff treatment for those goods. That keeps tariffs predictable for affected businesses and helps avoid sudden increases in import costs.
• The government’s analysis says there are no extra costs from this change and that small businesses are not expected to be affected.