53. (1) The definitions in this subsection apply in this section.

“government”, in respect of a country other than Canada, includes

(a) a provincial, state, municipal or other local or regional government in the country;

(b) a person, agency or institution acting on behalf of, or under the authority of a law or other enactment passed by, the government of the country or a provincial, state, municipal or other local or regional government of the country; and

(c) an association of sovereign states of which the country is a member.

“trade agreement” means an agreement or arrangement relating to international trade to which the Government of Canada is a party.

(2) Notwithstanding this Act or any other Act of Parliament, the Governor in Council may, on the recommendation of the Minister and of the Minister of Foreign Affairs, by order, for the purpose of enforcing Canada’s rights under a trade agreement in relation to a country or of responding to acts, policies or practices of the government of a country that adversely affect, or lead directly or indirectly to adverse effects on, trade in goods or services of Canada, do any one or more of the following:

(a) suspend or withdraw rights or privileges granted by Canada to any country under a trade agreement or Act of Parliament;

(b) make goods that originate in any country or that are entitled to a tariff treatment provided for by regulations made under section 16, or a class of such goods, subject to a surtax in an amount, in addition to the customs duty provided in this Act and the duties imposed under any Act of Parliament or in any regulation or order made under any Act of Parliament, for those goods or that class of goods;

(c) include on the Import Control List established under section 5 of the Export and Import Permits Act goods that originate in any country or are entitled to a tariff treatment provided for by any regulations made under section 16; and

(d) notwithstanding any regulations made under section 16, levy, in respect of goods or a class of goods that originate in any country, a duty that varies from time to time as the quantity of those goods imported during a period specified in the order equals or exceeds totals set out in the order.

(3) If, by an order made under subsection (2), goods are included on the Import Control List referred to in paragraph (2)(c), those goods are deemed to have been removed from that List when the order is repealed or otherwise ceases to have effect.

(4) The Minister shall cause a copy of any order made under subsection (2) to be laid before Parliament on any of the first 15 days after the making of the order that either House of Parliament is sitting.

(5) The Governor in Council may, on the recommendation of the Minister, make such regulations as the Governor in Council considers necessary for the carrying out of the purposes of this section and for its enforcement.

54. The definitions in this section apply in sections 55 to 67.

“contribute importantly”, in respect of goods imported from a NAFTA country or from Chile, means to be an important cause, but not necessarily the most important cause.

“surge”, in respect of goods imported from a NAFTA country or from Chile, has the meaning given that word by Article 805 of the North American Free Trade Agreement or Article F-05 of the Canada–Chile Free Trade Agreement, as the case may be.

55. (1) Subject to sections 56, 57, 59 and 61, if at any time it appears to the satisfaction of the Governor in Council, on the basis of a report of the Minister or of an inquiry made by the Canadian International Trade Tribunal under section 20 or 26 of the Canadian International Trade Tribunal Act, that goods are being imported under such conditions as to cause or threaten serious injury to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order, make any such goods imported from a country specified in the order, when imported into Canada or a region or part of Canada specified in the order during the period that the order is in effect, subject to a surtax

(a) at a rate specified in the order; or

(b) at a rate specified in the order that varies from time to time as the quantity of those goods imported into Canada or that region or part of Canada during a period specified in the order equals or exceeds quantities specified in the order.

(2) The rate specified under subsection (1) may not exceed the rate that in the opinion of the Governor in Council is sufficient to prevent or remedy serious injury to domestic producers of like or directly competitive goods.

(3) A report of the Minister referred to in subsection (1) may be made only if

(a) there are, in the opinion of the Minister, critical circumstances; or

(b) the report relates to perishable agricultural goods.

(4) If an order is made under subsection (1) on the basis of a report of the Minister, the Governor in Council shall immediately refer the matter to the Canadian International Trade Tribunal for an inquiry under paragraph 20(a) of the Canadian International Trade Tribunal Act.

(5) Subject to subsection (6), no order may be made under subsection (1) with respect to goods that have already been the subject of an order made under that subsection or subsection 5(3) of the Export and Import Permits Act unless, after the expiry of the order and any related orders made under subsection 5(3.2) or (4.1) of that Act or section 60 or subsection 63(1), there has elapsed a period equal to the greater of two years and the total period during which the order or orders were in effect.

(6) If an order made under subsection (1) was effective with respect to goods for a period of 180 days or less, a further order may be made under that subsection with respect to those goods if

(a) at least one year has elapsed since the previous order took effect; and

(b) not more than two orders have been made with respect to the goods under subsection (1) within the period of five years before the further order takes effect.

56. (1) An order made under subsection 55(1)

(a) subject to sections 62 and 63, has effect for a period not exceeding four years; and

(b) may be amended or repealed at any time by the Governor in Council on the recommendation of the Minister unless, before that time, a resolution directing that the order cease to have effect has been adopted by both Houses of Parliament under section 64.

(2) If an order is made under subsection 55(1) on the basis of a report of the Minister, the order ceases to have effect at the end of the two hundredth day after the day on which the order is made unless, before the order so ceases to have effect, the Canadian International Trade Tribunal reports to the Governor in Council, on the basis of an inquiry made under section 20 or 26 of the Canadian International Trade Tribunal Act, that the goods described in the report of the Minister are being imported from a country named in the report under such conditions as to cause or threaten serious injury to domestic producers of like or directly competitive goods.

57. (1) No order may be made under subsection 55(1), on the basis of a report of the Minister, with respect to

(a) any prescribed agricultural goods that may be subject to a surtax under subsection 68(1); or

(b) any fresh fruit or vegetable imported from the United States and referred to in subsection 73(1) that may be subject to a temporary duty under that subsection.

(2) Paragraph (1)(b) ceases to be in force on December 31, 2008.

58. For the purpose of carrying out Article 6 of the Agreement on Safeguards in Annex 1A of the World Trade Organization Agreement, the Governor in Council may, on the recommendation of the Minister, by order, refund any surtaxes imposed under an order made under subsection 55(1) on the basis of a report made by the Minister.

59. (1) An order under subsection 55(1) may be made applicable to goods of any kind imported from a free trade partner only if it appears to the satisfaction of the Governor in Council, on the basis of a report under section 20 or 29 of the Canadian International Trade Tribunal Act or a report of the Minister, that

(a) the quantity of those goods represents a substantial share of total imports of goods of the same kind;

(b) in the case of goods imported from a NAFTA country, the quantity of those goods, alone or, in exceptional circumstances, together with the quantity of goods of the same kind imported from each other NAFTA country, contributes importantly to serious injury or threat of serious injury to domestic producers of like or directly competitive goods; and

(c) in the case of goods imported from any other free trade partner, the quantity of those goods contributes importantly to serious injury or threat of serious injury to domestic producers of like or directly competitive goods.

(2) If an order that applies to goods imported from a free trade partner by virtue of subsection (1) is made under subsection 55(1) on the basis of a report of the Minister, the order ceases to have effect with respect to those goods at the end of the two hundredth day after the day on which the order is made, except that it remains in effect for the period, not exceeding four years, that is specified in the order if, before the order so ceases to have effect, the Canadian International Trade Tribunal reports to the Governor in Council under the Canadian International Trade Tribunal Act that

(a) the quantity of those goods as described in the report of the Minister is substantial in comparison with the quantity of goods of the same kind imported from other countries;

(b) in the case of goods imported from a NAFTA country, the quantity of those goods, alone or, in exceptional circumstances, together with the quantity of goods of the same kind imported from each other NAFTA country, contributes importantly to the serious injury or threat of serious injury to domestic producers of like or directly competitive goods; and

(c) in the case of goods imported from any other free trade partner, the quantity of those goods contributes importantly to the serious injury or threat of serious injury to domestic producers of like or directly competitive goods.

(3) If an order that applies to goods imported from a free trade partner in accordance with subsection (1) is made under subsection 55(1) on the basis of a report of the Minister, the Governor in Council shall repeal the order if the Governor in Council is satisfied on the basis of a report of the Canadian International Trade Tribunal, made under the Canadian International Trade Tribunal Act, that the quantity of those goods is not substantial in comparison with the quantity of goods of the same kind imported from other countries or

(a) in the case of goods imported from a NAFTA country, that the quantity of those goods, alone or, in exceptional circumstances, together with the quantity of goods of the same kind imported from each other NAFTA country, does not contribute importantly to the serious injury or threat of serious injury to domestic producers of like or directly competitive goods; and

(b) in the case of goods imported from any other free trade partner, that the quantity of those goods does not contribute importantly to the serious injury or threat of serious injury to domestic producers of like or directly competitive goods.

60. If an order has been made under subsection 55(1) or 63(1) imposing a surtax that does not apply to goods imported from a free trade partner because the goods did not meet the conditions set out in subsection 59(1) or 63(4) and the Governor in Council is satisfied, on the recommendation of the Minister made as a result of an inquiry by the Canadian International Trade Tribunal, that there has been a surge of those goods on or after the coming into force of the order and that, as a result of that surge, the effectiveness of the imposition of the surtax is being undermined, the Governor in Council may, by order, make any such goods, when imported into Canada or into any region or part of Canada specified in the order during the period that the order is in effect, subject to a surtax

(a) at a rate specified in the order; or

(b) at a rate specified in the order that varies from time to time as the quantity of those goods imported into Canada or that region or part of Canada during a period specified in the order equals or exceeds quantities specified in the order.

The rate may not exceed the rate that, in the opinion of the Governor in Council, is sufficient to prevent the undermining of the order made under subsection 55(1) or 63(1).

61. (1) The rate of a surtax imposed under subsection 55(1), section 60 or subsection 63(1) on goods imported from a free trade partner need not be the same rate as that imposed under subsection 55(1) or 63(1) on goods of the same kind imported from any other country, but must not exceed the rate of surtax imposed under subsection 55(1) or 63(1) on goods of the same kind imported from any other country.

(2) If the Governor in Council makes an order under subsection 55(1) or 63(1) that applies to goods imported from a free trade partner that meet the conditions set out in subsection 59(1) or 63(4) or makes an order under section 60, the Governor in Council shall be guided by subparagraph 5(b) of Article 802 of the North American Free Trade Agreement, subparagraph 5(b) of Article F-02 of the Canada–Chile Free Trade Agreement or subparagraph 5(b) of Article 4.6 of the Canada–Israel Free Trade Agreement, as the case may be.

62. If at any time it appears to the satisfaction of the Governor in Council, as a result of a mid-term review by the Canadian International Trade Tribunal under section 19.02 of the Canadian International Trade Tribunal Act, that an order imposing or extending the application of a surtax under subsection 55(1), section 60 or subsection 63(1) should be repealed or amended, the Governor in Council may, on the recommendation of the Minister, by order, repeal or amend the order.

63. (1) Subject to subsection (4), if, at any time before the expiry of an order with respect to any goods made under this subsection, subsection 55(1) or section 60 or under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act, it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under section 30.07 of the Canadian International Trade Tribunal Act, that

(a) an order continues to be necessary to prevent or remedy serious injury to domestic producers of like or directly competitive goods, and

(b) there is evidence that the domestic producers of like or directly competitive goods are adjusting, as determined in accordance with any regulations made under paragraph 40(b) of the Canadian International Trade Tribunal Act,

the Governor in Council may, on the recommendation of the Minister, make an extension order imposing a surtax on any goods specified in the previous order imported from any country specified in the extension order.

(2) If an extension order is made under subsection (1),

(a) the extension order applies to goods imported into Canada, or any region or part of Canada, specified in the order during the period that the order is in effect; and

(b) the rate of the surtax imposed by the extension order must, subject to subsection (3),

(i) be at a rate specified in the extension order, or

(ii) be at a rate specified in the extension order that varies from time to time as the quantity of the goods imported into Canada or that region or part of Canada during a period specified in the order equals or exceeds totals specified in the order.

(3) The rate specified in the extension order may not exceed

(a) the lowest of any rates previously imposed with respect to the goods under subsection (1) or 55(1) or section 60; and

(b) the rate that in the opinion of the Governor in Council is sufficient to prevent or remedy serious injury to domestic producers of like or directly competitive goods and to facilitate the adjustment of the domestic producers.

(4) An order made under subsection (1) may apply to goods imported from a free trade partner only if it appears to the satisfaction of the Governor in Council, on the basis of a report made under the Canadian International Trade Tribunal Act, that

(a) the quantity of those goods represents a substantial share of the total imports of goods of the same kind;

(b) in the case of goods imported from a NAFTA country, the quantity of those goods, alone or, in exceptional circumstances, together with the quantity of goods of the same kind imported from each other NAFTA country, contributes importantly to the serious injury or threat of serious injury to domestic producers of like or directly competitive goods; and

(c) in the case of goods imported from any other free trade partner, the quantity of those goods contributes importantly to the serious injury or threat of serious injury to domestic producers of like or directly competitive goods.

(5) Every extension order made under subsection (1)

(a) remains in effect, subject to this section, for the period that is specified in the order, but the total of the specified period and the periods during which the goods were subject to related orders made under subsection (1) or 55(1) or section 60 or under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act may not exceed eight years; and

(b) may, notwithstanding any other provision of this section, be amended or repealed at any time by the Governor in Council on the recommendation of the Minister, unless, before that time, a resolution directing that the order cease to have effect has been adopted by both Houses of Parliament under section 64.

64. Notwithstanding sections 55 to 63 and 65 to 67, if a resolution directing that an order made under subsection 55(1), section 60 or subsection 63(1) cease to have effect is adopted by both Houses of Parliament, the order ceases to have effect on the day that the resolution is adopted or, if the adopted resolution specifies a day on which the order ceases to have effect, on that specified day.

65. If an order made under

(a) subsection 55(1) remains in effect by reason of subsection 56(2) or 59(2), or

(b) subsection 55(1), section 60 or subsection 63(1) ceases to have effect by reason of a resolution of both Houses of Parliament,

the Minister shall cause a notice to that effect to be published in the Canada Gazette.

66. The Governor in Council may make regulations for carrying out the purposes of sections 55 to 65 and may, by order, suspend a surtax or rate in whole or in part from application to the goods of any country or any class of such goods.

67. The decision of the Governor in Council is final on any question that may arise regarding the application of the surtax or rate imposed under sections 55 to 66.

68. (1) Notwithstanding this Act or any other Act of Parliament but subject to subsections (2) to (7), the Governor in Council may, on the recommendation of the Minister, by order, make any prescribed agricultural goods specified in the order subject to

(a) a surtax, at a rate specified in the order, that is in addition to any other duty imposed under this Act or any other Act of Parliament relating to customs; and

(b) any conditions set out in the order relating to the imposition of the surtax.

(2) Before recommending that an order be made under subsection (1), the Minister must be satisfied, on the basis of a report by the Minister of Agriculture and Agri-Food, that the conditions, set out in Article 5 of the Agreement on Agriculture in Annex 1A of the World Trade Organization Agreement, for the imposition of a surtax on the prescribed agricultural goods have been met.

(3) The President of the Canada Border Services Agency may relieve goods from payment of a surtax imposed by an order under subsection (1) if the President is of the opinion that

(a) before the coming into force of the order, the goods were purchased for importation in the expectation in good faith that subsection (1) would not have applied to those goods; and

(b) at the time that the order comes into force, the goods were in transit to the purchaser in Canada.

(4) If both Houses of Parliament adopt a resolution directing that an order made under subsection (1) cease to have effect, the order ceases to have effect on the day that the resolution is adopted or, if the adopted resolution specifies a day on which the order ceases to have effect, on that specified day.

(5) If an order under subsection (1) ceases to have effect as a result of a resolution of both Houses of Parliament, the Minister shall cause a notice to that effect to be published in the Canada Gazette.

(6) The Governor in Council may, on the recommendation of the Minister, make regulations

(a) prescribing agricultural goods for the purposes of this section in respect of any country;

(b) prescribing terms and conditions governing the making of orders under subsection (1); and

(c) generally for carrying out the purposes and provisions of this section.

(7) An order under subsection (1) is exempt from the application of sections 3, 5 and 11 of the Statutory Instruments Act.

(8) Every order made under subsection (1) must be published in the Canada Gazette.

1997, c. 36, s. 68; 1999, c. 17, s. 130; 2005, c. 38, s. 87.

69. (1) This section does not apply in respect of textile and apparel goods set out in Appendix 1.1 of Annex 300-B of Chapter Three of the North American Free Trade Agreement.

(2) Subject to subsection (3), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under section 19.01 or subsection 19.1(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under section 23 of that Act, that goods that are entitled to the United States Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order,

(a) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty set out in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before January 1, 1989; and

(b) in respect of any other goods, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods on December 31, 1988, and

(ii) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made.

(3) An order made under subsection (2)

(a) may not be made more than once during the period beginning on January 1, 1988 and ending on December 31, 1998 in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and

(b) may be made after December 31, 1998 only if it is based on an agreement between the Government of Canada and the Government of the United States relating to the application of subsection (2).

(4) In this section, “principal cause” means, in respect of a serious injury, an important cause that is not less important than any other cause of the serious injury.

(5) For the purposes of paragraph (2)(a), the Most-Favoured-Nation Tariff rate of customs duty in effect in respect of a fresh fruit or vegetable is

(a) in respect of a fresh vegetable, the rate of customs duty applicable to that vegetable set out in the applicable tariff item referred to in Supplementary Note 2(b) in Chapter 7 of the List of Tariff Provisions; and

(b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 4(b) in Chapter 8 of the List of Tariff Provisions.

70. (1) This section does not apply in respect of textile and apparel goods set out in Appendix 1.1 of Annex 300-B of Chapter Three of the North American Free Trade Agreement.

(2) Subject to subsection (3), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.01(3) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.02) of that Act, that goods that are entitled to the Mexico Tariff or the Mexico–United States Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order,

(a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty in respect of those goods that would otherwise be made after that time by virtue of section 45;

(b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty set out in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before January 1, 1994; and

(c) in respect of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods on December 31, 1993, and

(ii) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made.

(3) An order under subsection (2)

(a) may not be made more than once during the period beginning on January 1, 1994 and ending on December 31, 2003 in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and

(b) may be made after December 31, 2003 only if it is based on an agreement between the Government of Canada and the Government of Mexico relating to the application of subsection (2).

(4) If an order made under subsection (2) ceases to have effect in a particular calendar year,

(a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would have been applicable one year after the making of the order, as reduced in accordance with section 45; and

(b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (5).

(5) For the purposes of subsection (4), the Minister shall, by order, specify that the rate referred to in paragraph (4)(b) is

(a) the rate of customs duty that would have been applicable on January 1 of the year following the year in which the order ceases to have effect, if the rate of customs duty had been reduced in accordance with section 45, reduced for subsequent years in accordance with that section; or

(b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages beginning on January 1 of the year following the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 45.

(6) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat.

(7) For the purposes of paragraph (2)(b), the Most-Favoured-Nation Tariff rate of customs duty in effect in respect of a fresh fruit or vegetable is

(a) in respect of a fresh vegetable, the rate of customs duty applicable to that vegetable set out in the applicable tariff item referred to in Supplementary Note 2(b) in Chapter 7 of the List of Tariff Provisions; and

(b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 4(b) in Chapter 8 of the List of Tariff Provisions.

71. (1) This section does not apply in respect of textile and apparel goods set out in Appendix 1.1 of Annex C-00-B of the Canada–Chile Free Trade Agreement.

(2) Subject to subsection (3), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.012(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.05) of that Act, that goods that are entitled to the Chile Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order,

(a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 46;

(b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty set out in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before July 5, 1997; and

(c) in respect of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Chile Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods on July 4, 1997, and

(ii) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made.

(3) An order under subsection (2)

(a) may not be made more than once during the period beginning on July 5, 1997 and ending on December 31, 2002 in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and

(b) may be made after December 31, 2002 only if it is based on an agreement between the Government of Canada and the Government of the Republic of Chile relating to the application of subsection (2).

(4) If an order made under subsection (2) ceases to have effect in a particular calendar year,

(a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would otherwise have been applicable one year after the making of the order, as reduced in accordance with section 46; and

(b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (5).

(5) For the purposes of subsection (4), the Minister shall, by order, specify that the rate referred to in paragraph (4)(b) is

(a) the rate of customs duty that would have been applicable on January 1 of the year following the year in which the order ceases to have effect, if the rate of customs duty had been reduced in accordance with section 46, reduced for subsequent years in accordance with that section; or

(b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages beginning on January 1 of the year following the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 46.

(6) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat.

(7) For the purposes of paragraph (2)(b), the Most-Favoured-Nation Tariff rate of customs duty in effect in respect of a fresh fruit or vegetable is

(a) in respect of a fresh vegetable, the rate of customs duty applicable to that vegetable set out in the applicable tariff item referred to in Supplementary Note 2(b) in Chapter 7 of the List of Tariff Provisions; and

(b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 4(b) in Chapter 8 of the List of Tariff Provisions.

71.1 (1) This section does not apply in respect of textile and apparel goods set out in Appendix III.1.1.1 of Annex III.1 of the Canada — Costa Rica Free Trade Agreement.

(2) Subject to subsections (3) and (4), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.013(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.07) of that Act, that goods that are entitled to the Costa Rica Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order

(a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 49.1;

(b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty set out in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection; and

(c) in respect of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Costa Rica Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection, and

(ii) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made.

(3) An order under subsection (2)

(a) may not be made more than twice during the period beginning on the coming into force of this subsection and ending on the date that is seven years after the coming into force of this subsection in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and

(b) may be made after the date that is seven years after the coming into force of this subsection only if it is based on an agreement between the Government of Canada and the Government of the Republic of Costa Rica relating to the application of subsection (2).

(4) A measure referred to in an order made under subsection (2) may be applied a second time if

(a) the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application;

(b) the rate of duty for the first year of the second action is not greater than the rate that would be in effect in accordance with the Schedule of Canada referred to in Annex III.3.1 of the Canada — Costa Rica Free Trade Agreement, entitled “Tariff Elimination”, at the time the first action was imposed; and

(c) the rate of duty applicable to any subsequent year is reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for in the Schedule of Canada referred to in Annex III.3.1 of the Canada — Costa Rica Free Trade Agreement, entitled “Tariff Elimination”, for that year.

(5) If an order made under subsection (2) ceases to have effect in a particular calendar year,

(a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would otherwise have been applicable one year after the making of the order, as reduced in accordance with section 49.1; and

(b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (6).

(6) For the purposes of subsection (5), the Minister shall, by order, specify that the rate referred to in paragraph (5)(b) is

(a) the rate of customs duty that would have been applicable on January 1 of the year following the year in which the order ceases to have effect, if the rate of customs duty had been reduced in accordance with section 49.1, reduced for subsequent years in accordance with that section; or

(b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages beginning on January 1 of the year following the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 49.1.

(7) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat.

(8) For the purposes of paragraph (2)(b), the Most-Favoured-Nation Tariff rate of customs duty in effect in respect of a fresh fruit or vegetable is

(a) in respect of a fresh vegetable, the rate of customs duty applicable to that vegetable set out in the applicable tariff item referred to in Supplementary Note 2(b) in Chapter 7 of the List of Tariff Provisions; and

(b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 4(b) in Chapter 8 of the List of Tariff Provisions.

2001, c. 28, s. 38.

72. (1) Subject to subsection (2), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.011(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.04) of that Act, that goods that are entitled to the Canada–Israel Agreement Tariff are, as a result of that entitlement, being imported into Canada in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order,

(a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time under the Canada–Israel Agreement Tariff; and

(b) make those goods subject to a temporary duty, in addition to any other duties imposed under this Act or any other Act of Parliament relating to customs, at a rate set out in the order, but no such rate may, when added to the rate of customs duty specified in the Canada–Israel Agreement Tariff that is in effect in respect of those goods at that time, exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made, and

(ii) the Most-Favoured-Nation Tariff or General Preferential Tariff rate of customs duty that was in effect in respect of those goods on January 1, 1997.

(2) An order under subsection (1) shall not be made, or remain in effect, after July 1, 1999.

(3) In this section, “principal cause” means, in respect of a serious injury, an important cause that is not less important than any other cause of the serious injury.

73. (1) Notwithstanding this Act or any other Act of Parliament but subject to subsections (2) to (7), the Minister may, if the Minister is satisfied that the conditions set out in Article 702 of the Canada–United States Free Trade Agreement for the application of a temporary duty on a fresh fruit or vegetable have been met, by order, for the purpose of implementing Canada’s rights under that Agreement and subject to such terms and conditions as may be prescribed, make a fresh fruit or vegetable of heading No. 07.01, 07.02, 07.03, 07.04, 07.05, 07.06 (other than turnips), 07.07, 07.08, 07.09 (other than truffles), 08.09 or 08.10 (other than cranberries and blueberries) or of subheading No. 0806.10 or 0808.20, set out in the order that is entitled to the United States Tariff, when imported into Canada or any region of Canada set out in the order, subject to a temporary duty, in addition to any other duty imposed under this Act or any other Act of Parliament relating to customs, at a rate set out in the order.

(2) No rate of temporary duty imposed under subsection (1) in respect of a fresh fruit or vegetable, when added to any other rate of customs duty specified in the List of Tariff Provisions for that fresh fruit or vegetable, may exceed the lesser of

(a) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of the fresh fruit or vegetable in the season for that fresh fruit or vegetable immediately before January 1, 1989, and

(b) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of the fresh fruit or vegetable at the time the order is made.

(3) The temporary duty referred to in subsection (1) may be imposed in respect of a fresh fruit or vegetable only once, in respect of any particular region or on a national basis, in any period of 12 consecutive months.

(4) No order may be made in respect of a fresh fruit or vegetable under subsection (1) during any period in which an order made under subsection 55(1), section 60 or subsection 63(1) or 69(2) or under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act in respect of the same fresh fruit or vegetable is in force.

(5) Fresh fruit or vegetables that were purchased, before the coming into force of an order made under subsection (1), for importation through a customs office in a region specified in the order in the expectation in good faith that the United States Tariff rate of customs duty applicable to the fresh fruit or vegetables would apply to them and that were in transit to the purchaser in Canada at the time of the coming into force of the order are not subject to the temporary duty specified in the order.

(6) The Minister shall repeal an order made under subsection (1) if the Minister is satisfied that the conditions for the removal of the temporary duty set out in paragraph 4 of Article 702 of the Canada–United States Free Trade Agreement have been met.

(7) An order made under subsection (1) ceases to have effect on the earlier of any expiry date set out in the order and the one hundred and eightieth day after the day on which the order is made.

(8) For the purposes of the application of paragraphs 2(a) and (b) in respect of fresh fruit or vegetables on which a customs duty is imposed on a seasonal basis, the Most-Favoured-Nation Tariff rate of customs duty in effect in respect of the fresh fruit or vegetables is

(a) in respect of fresh vegetables, the rate of customs duty applicable to those vegetables set out in the tariff item referred to in Supplementary Note 2(b) in Chapter 7 of the List of Tariff Provisions; and

(b) in respect of fresh fruit, the rate of customs duty applicable to that fruit set out in the tariff item referred to in Supplementary Note 4(b) in Chapter 8 of the List of Tariff Provisions.

(9) The Governor in Council may, on the recommendation of the Minister, make regulations that are consistent with the Canada–United States Free Trade Agreement for carrying out the purposes of this section and to prescribe anything that, by this section, is to be prescribed.

(10) An order made under subsection (1) is exempt from the application of sections 3, 5 and 11 of the Statutory Instruments Act.

(11) Every order made under subsection (1) must be published in the Canada Gazette.

74. (1) The purpose of this section is to give effect to paragraphs 3 and 4 of Article 703 of the North American Free Trade Agreement.

(2) This section applies to goods of any of tariff item Nos. 0603.10.12, 0603.10.21, 0702.00.92, 0703.10.32, 0707.00.92, 0710.80.21, 0811.10.11, 0811.10.91 and 2002.90.10 that are entitled to the Mexico Tariff.

(3) The Governor in Council may, on the recommendation of the Minister, by order, specify limits on the aggregate quantity of goods of any tariff item referred to in subsection (2) that are entitled to a reduction of the rate of customs duty provided for in the List of Tariff Provisions and the periods during which such limits apply.

(4) An order made under subsection 55(1), section 60 or subsection 63(1) or under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act has effect in respect of goods referred to in subsection (2) only during any period in which the limits specified under subsection (3) for those goods have not been exceeded.

(5) This section ceases to have effect on December 31, 2002.