Courtesy of the Canadian Apparel Foundation

Apparel producers that participate in the apparel duty remission programs are attempting to understand and reverse recent administrative changes to the programs. Just before Christmas Canada Border Services Agency (CBSA) informed remission holders that all apparel and textile remission authorizations were being cancelled effective December 31, 2010. Remission holders have also been advised not to re-apply for their licenses until further notice and that any duties paid as a result of this initiative could eventually be recovered by way of drawback.

These abrupt and unexplained measures are likely to have extremely negative impacts not only on remission holders but also on stakeholders throughout their supply chains. Importers who have previously been able to forgo payment of duty at time of importation will now have to pay those duties and apply for drawback, causing a major unanticipated cash flow problem for many firms. The most surprising aspect of this policy change is the fact that CBSA would undertake what appear to be significant modifications to policy without prior consultation with any stakeholders and provide users less than two weeks notice before changes take effect.

CAF has asked CBSA to reinstate remission authorizations until such time that a reasonable and transparent consultation has been completed.

Interested firms may contact Bob Kirke, CAF Executive Director.

Who is the CAF?

The Canadian Apparel Federation (CAF) is the national association for Canada’s apparel industry. CAF stands up for the industry, and is your source for information and advice on national and international issues, and for industry-specific services.

Membership in CAF is open both to Canadian-based firms that design, manufacture or market apparel in Canada (corporate membership), and to industry suppliers and other interested parties (associate membership). Please click here for further instructions on applying for membership.