Vol. 137, No. 9 — April 23, 2003

CUSTOMS TARIFF

P.C. 2003-458 3 April, 2003

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 115 of the Customs Tariff (see footnote a) , hereby makes the annexed Order Amending the Designer Remission Order, 2001.

ORDER AMENDING THE DESIGNER REMISSION ORDER, 2001

AMENDMENTS

1. (1) The definition "name" in section 1 of the Designer Remission Order, 2001 (see footnote 1)  is repealed.

(2) The definitions "original designer apparel", "recognized apparel designer" and "trade-mark" in section 1 of the Order are replaced by the following:

"original designer apparel" means apparel that is innovative and that is created by a recognized apparel designer and that bears the trade-mark of that designer, permanently affixed, as its principal commercial identification. (vêtement de couturier original)

"recognized apparel designer" means an individual who

(a) possesses a degree or diploma in fashion design or apparel design from a recognized educational institution or has an equivalent proficiency in the creation of innovative apparel;

(b) carries out the creation of innovative apparel, including conception of styles, the drafting and development of collections, the preparation of sketches, collection boards or story boards, the selection, sampling and testing of fabrics, the preparation of samples of innovative apparel, and the retention of any records respecting the creation of original designer apparel, or is directly responsible for those activities being undertaken by other individuals employed by the same producer of original designer apparel; and

(c) has control, whether in their own right or indirectly through a related partnership, corporation, trust or any other entity, over the use of their trade-mark. (couturier reconnu)

"trade-mark" means a word, symbol or design, or any combination of these, used to distinguish the wares of one person or organization from those of others in the marketplace. (marque de commerce)

2. Subsection 2(2) of the Order is replaced by the following:

(2) For the purpose of paragraph (1)(a), producers of original designer apparel are not excluded from this Order if they would be considered solely engaged in the creation, the manufacture, or the contracting of the manufacture, and the sale of original designer apparel but for the fact that they are also engaged in the sale of limited quantities of articles such as footwear, handbags and other articles of leather, scarves or jewellery to complement a collection.

COMING INTO FORCE

3. This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Description

The Designer Remission Order, 2001 provides eligible fashion designers with temporary duty-free access on a wide range of fabrics priced at $14 or more per square metre for use in the manufacture of unique, innovative apparel marketed under their own name or label.

Experience to-date with the Designer Remission Order, 2001 has shown that otherwise eligible designers are prevented from using the order because of limitations imposed by certain terms defined within the order. For example, benefits under the Designer Remission Order, 2001 are restricted to companies with a designer's trade-mark that includes all or part of the designer's name. This definition excludes a number of designers who do not use their name in the trade-mark. As well, the current Order restricts the scope of accessories (e.g., jewellery, shoes and handbags) an eligible designer is allowed to sell to complement their clothing collections (i.e., accessories that a designer may sell must be created and manufactured by him or her). The business reality of many designers, however, is such that they sell both their own accessories and accessories produced by others.

This Order amends the Designer Remission Order, 2001 to:

(1) ensure that "recognized apparel designers" are able to benefit from tariff relief on eligible fabrics no matter what word, symbol or design they use as their "trade-mark", so long as they control it;

(2) allow eligible designers to sell limited quantities of accessories made not only by themselves but also by others to complement their collections of clothes.

Alternatives

No alternatives were considered. Section 115 of the Customs Tariff is the appropriate authority for amending remission orders.

Benefits and Costs

The amendments are technical in nature and ensure that the original intent of the Designer Remission Order, 2001 is met (i.e., that recognized Canadian apparel designers are provided with tariff relief on eligible fabrics to produce unique, innovative apparel). These measures are expected to have little financial impact in terms of revenue foregone for the government.

Consultation

Interested government departments, the Canadian Textiles Institute, fashion designers and the Canadian Apparel Federation have all been consulted and support these measures.

Compliance and Enforcement

Compliance with the terms and conditions of remission orders is monitored by the Canada Customs and Revenue Agency (CCRA) in the course of its administration of the Customs Tariff and related customs and tariff regulations.

Contact

Shezara Ali

International Trade Policy Division

Department of Finance

Ottawa, Ontario

K1A 0G5

Telephone: (613) 992-4418

Footnote a 

S.C. 1997, c. 36

Footnote 1 

SOR/2002-4

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