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July 14, 2010

Tariff eliminations from March budget get final sanction

The Minister of Finance, Jim Flaherty announced this week the Senate passage and Royal Assent of the March Federal Budget.

The Government's budget bill was named the "Jobs and Economic Growth Act" and one of the key measures included in the act was the elimination of customs tariffs on manufacturing inputs and machinery and equipment.

The tariff reductions are already in force and have been applied to the subject goods since March 5, 2010.

Details were published on March 4, 2010 in Tariff Notice - TN-49.

The measure was designed to help Canadian industry by lowering the costs of manufacturing inputs and machinery and equipment that are imported from outside North America. Tariffs on the affected goods used to vary from 2 per cent to 15.5 per cent and represented a non-recoverable tax on production inputs and on new investments that companies make in order to enhance their competitiveness and productivity.