Textile Tariffs - Update 2010The
Government of Canadian announced the elimination of duties on imported
raw materials as part of the 2010 federal Budget, These cuts included
substantial reductions in duties on textiles. This is the most
comprehensive package of input tariff reductions the Canadian
government has ever undertaken.
of the duties paid on imported textiles were eliminated in the Budget.
That means a savings of approximately $31 million (on an annual basis) for Canadian
apparel manufacturers. Many of these are duty free effective March 5, 2010.
Duties on other fabrics and yarns were reduced significantly, and are
being phased out over 3 to 5 years - with the first set of cuts coming
in January 2011.
These reductions are locked in, and for that reason manufacturers know their
cost structure for the future. It is worth mentioning that it was
extraordinarily difficult to push these amendments through at a time of
fiscal restraint. The efforts made by the Canadian Apparel Federation
(CAF) helped ensure that the package of tariff relief moved forward.
No other industry in Canada benefits more directly from these measures
than the apparel industry. No other industry group in Canada lobbied for
these measures as strongly as CAF did.
Details of the tariff reductions are in a "Notice of Ways and Means" included as part of the Budget. Go to: http://www.budget.gc.ca/2010/plan/anx5a-eng.html Companies should also consult their customs brokers.
For more information please contact Bob Kirke at (613) 231-3220, ext. 224, email@example.com.