Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act (S.C. 2017, c. 6)

81 The Act is amended by adding, after section 51, the schedule set out in Schedule 3 to this Act.

R.S., c. 1 (2nd Supp.)Customs Act

82 Subsection 2(1) of the Customs Act is amended by adding the following in alphabetical order:

Marginal note:2009, c. 6, s. 24(1)

• 83 (1) The portion of paragraph 42.1(1)(a) of the Act before subparagraph (i) is replaced by the following:

  • (a) conduct a verification of origin of goods for which preferential tariff treatment under a free trade agreement, other than a free trade agreement referred to in subsection (1.1), is claimed

• Marginal note:2009, c. 6, ss. 24(2) and (3)

  (2) Subsections 42.1(1.1) and (2) of the Act are replaced by the following:

  • Marginal note:Method of verification — certain agreements

    (1.1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, or any person, or any person within a class of persons, designated by the President to act on behalf of such an officer, may, subject to any prescribed conditions, conduct any of the following:

    • (a) a verification of origin of goods for which preferential tariff treatment under CEFTA is claimed, by requesting in writing that the customs administration of the EFTA state of export conduct a verification and provide an opinion as to whether the goods are originating within the meaning of Annex C of CEFTA;

    • (b) a verification of origin of goods for which preferential tariff treatment under CETA is claimed, by requesting in writing that the customs administration of the EU country or other CETA beneficiary of export conduct a verification and provide a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA.

  • Marginal note:Withdrawal of preferential tariff treatment

    (2) If an exporter or producer of goods that are subject to a verification of origin under paragraph (1)(a) fails to comply with the prescribed requirements or, in the case of a verification of origin under subparagraph (1)(a)(i), does not consent to the verification of origin in the prescribed manner and within the prescribed time, preferential tariff treatment under a free trade agreement, other than a free trade agreement referred to in subsection (1.1), may be denied or withdrawn from the goods.

• Marginal note:2009, c. 6, s. 24(3)

  (3) The portion of subsection 42.1(3) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Withdrawal of preferential tariff treatment — certain agreements

    (3) Preferential tariff treatment under a free trade agreement referred to in subsection (1.1) may be denied or withdrawn from the goods in any of the following circumstances:

    • (a) in the case of CEFTA, if the EFTA state of export fails to conduct a verification or provide an opinion as to whether the goods are originating;

    • (a.1) in the case of CETA, if the EU country or other CETA beneficiary of export fails to conduct a verification or provide a written report as to whether the goods are originating;

Marginal note:2009, c. 6, s. 28

• 84 (1) Subsection 97.201(1) of the Act is replaced by the following:

  Marginal note:Verification of origin — certain agreements

  • 97.201 (1) The customs administration of any state or beneficiary referred to in subsection 42.1(1.1) to which goods were exported may request in writing that the Agency conduct a verification and provide, as the case may be

    • (a) an opinion as to whether those goods are originating within the meaning of Annex C of CEFTA; or

    • (b) a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA.

• Marginal note:2009, c. 6, s. 28

  (2) Subsection 97.201(3) of the Act is replaced by the following:

  • Marginal note:Statement of origin — certain agreements

    (3) On completion of a verification of origin requested under subsection (1), an officer or other person designated under subsection (2) shall

    • (a) provide, in the prescribed manner, the customs administration of the state or beneficiary with the opinion or written report requested and any relevant supporting documents that may be requested by that customs administration; and

    • (b) determine whether the goods are originating within the meaning of the applicable provision referred to in subsection (1).

Marginal note:2012, c. 18, s. 30

85 Subsection 164(1.1) of the Act is replaced by the following:

86 Part 1 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “EU country or other CETA beneficiary” in column 1, a corresponding reference to “CETA” in column 2 and a corresponding reference to “Canada–European Union Tariff rates of customs duty under the Customs Tariff” in column 3.

87 Part 4 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “EU country or other CETA beneficiary” in column 1 and a corresponding reference to “CETA” in column 2.

88 The heading of column 2 of Part 5 of the schedule to the Act is replaced by “Protocol, Chapter or Provision”.

89 Part 5 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CETA” in column 1 and a corresponding reference to “Protocol on Rules of Origin and Origin Procedures” in column 2.

R.S., c. 17 (2nd Supp.)Commercial Arbitration Act

90 Schedule 2 to the Commercial Arbitration Act is amended by adding, at the end of column 1, a reference to “Article 8.23” and a corresponding reference to “Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016” in column 2.

1992, c. 31Coasting Trade Act

• 91 (1) The definition owner in subsection 2(1) of the English version of the Coasting Trade Act is replaced by the following:

  owner

  owner, in relation to a ship, means the person having for the time being, either by law or by contract, the rights of the owner of the ship with respect to its possession and use; (propriétaire)

• (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

  Canadian entity

  Canadian entity means

  • (a) a corporation that is incorporated in Canada, or

  • (b) a trust, partnership, joint venture or other association that is formed in Canada; (entité canadienne)

  CETA

  CETA has the same meaning as Agreement in section 2 of the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act; (AÉCG)

  EU entity

  EU entity means

  • (a) a corporation that is incorporated in the territory of the European Union, or

  • (b) a trust, partnership, joint venture or other association that is formed in the territory of the European Union; (entité de l’Union européenne)

  territory of the European Union

  territory of the European Union means the territory in which the Treaty on European Union, done at Maastricht on February 7, 1992, and the Treaty Establishing the European Economic Community, done at Rome on March 25, 1957 — renamed the Treaty on the Functioning of the European Union — as they are amended from time to time, are applicable, in accordance with the conditions specified in those treaties; (territoire de l’Union européenne)

• 92 (1) Subsection 3(1) of the Act is replaced by the following:

  Marginal note:Prohibition

  • 3 (1) No foreign ship or non-duty paid ship shall, except in accordance with a licence, engage in the coasting trade.

• (2) Section 3 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Repositioning of empty containers

    (2.1) Subsection (1) does not apply in respect of carriage between one place in Canada and another, without consideration, by any of the following ships, of empty containers that are owned or leased by the ship’s owner and any ancillary equipment that is permanently affixed to the containers:

    • (a) a non-duty paid ship whose owner is a Canadian entity or an EU entity;

    • (b) a foreign ship that is registered in the first, or domestic, register of a member state of the European Union and whose owner is a Canadian entity, an EU entity or an entity that is under Canadian or European control;

    • (c) a foreign ship that is registered in a second, or international, register of a member state of the European Union and whose owner is a Canadian entity, an EU entity or an entity under Canadian or European control; and

    • (d) a foreign ship that is registered in a register other than the Canadian Register of Vessels or a register referred to in paragraph (b) or (c), and whose owner is a Canadian entity or an EU entity.

  • Marginal note:Dredging activities

    (2.2) Subsection (1) does not apply in respect of dredging activities — other than dredging activities that are provided under an agreement with Her Majesty in right of Canada or with an entity which is listed in Annex 19-1, as amended from time to time, of Chapter Nineteen of CETA — carried out by a ship described in any of paragraphs (2.1)(a) to (d).

  • Marginal note:Feeder services — continual or single trip

    (2.3) Subsection (1) does not apply in respect of

    • (a) the carriage of goods by a ship that is described in paragraph (2.1)(b), from the port of Halifax — where the goods are loaded — to the port of Montreal, or vice versa, if that carriage is one leg of the importation of the goods into Canada; or

    • (b) the carriage of goods by the ship from the port of Montreal — where the goods are loaded — to the port of Halifax, or vice versa, if that carriage is one leg of the exportation of the goods from Canada.

  • Marginal note:Feeder services — single trip

    (2.4) Subject to subsection (2.5), subsection (1) does not apply in respect of the carriage, by a ship that is described in paragraph (2.1)(c), of goods in a container from the port of Montreal to the port of Halifax, or vice versa, if

    • (a) that carriage is one leg of the importation of the goods into or exportation from Canada; and

    • (b) the container is at least 6.1 metres in length and has an internal volume of at least 14 cubic metres, is designed for carrying goods more than once and by one or more modes of transportation, and does not have wheels or is not otherwise built for being driven or drawn.

  • Marginal note:Subsequent coasting trade subject to subsection (1)

    (2.5) Once a ship has completed a carriage of goods as described in subsection (2.4), subsection (1) applies to the ship in respect of any such subsequent carriage of goods by the ship, until it departs from the exclusive economic zone of Canada or from the inland waters, as defined in subsection 2(1) of the Customs Act, at a location where the inland waters are contiguous to the United States.

  • Marginal note:Provision of information

    (2.6) Before a ship engages, without a licence, in any activities referred to in subsections (2.1) to (2.4) and for which the owner of the ship intends to rely on an exemption under any one of those subsections, the owner shall provide information to an enforcement officer, in the form and manner specified by the Minister, establishing that the ship meets the applicable conditions under any of paragraphs (2.1)(a) to (d).

• (3) Section 3 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Other laws apply

    (6) For greater certainty, any law of Canada that imposes safety or pollution prevention requirements applies to a foreign ship that is exempted from the application of subsection (1).

  • Marginal note:Control

    (7) For the purposes of paragraphs (2.1)(b) and (c), an entity is under Canadian or European control

    • (a) in the case of a third party entity that is a corporation, if securities of the corporation to which are attached more than 50% of the votes that may be cast to elect directors of the corporation are directly or indirectly held, otherwise than through a subsidiary or by way of security only, by or for the benefit of any of, or any combination of, the following individuals:

      • (i) a Canadian citizen,

      • (ii) a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act, or

      • (iii) a national of a member state of the European Union; or

    • (b) in the case of a third party entity that is a trust, partnership, joint venture or other association, if an individual, or any combination of individuals, described in any of subparagraphs (a)(i) to (iii) holds, directly or indirectly, but not through a subsidiary, an interest in the trust, partnership, joint venture or other association that entitles the individual or combination of individuals to receive more than 50% of its profits or more than 50% of its assets on dissolution. 

  • Marginal note:Third party entity

    (8) For the purposes of subsection (7), third party entity means

    • (a) a corporation, other than an entity referred to in paragraph (a) of the definition of either Canadian entity or EU entity, that is not incorporated under the law of the United States; or

    • (b) a trust, partnership, joint venture or other association, other than an entity referred to in paragraph (b) of the definition of either Canadian entity or EU entity, that is not formed under the law of the United States.

93 The Act is amended by adding the following after section 5: