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Canada Considers Eliminating Tariffs in Agri-Food Processing Sector

Canada’s Department of Finance is accepting public comments through 21 June on eliminating tariffs on food manufacturing ingredients other than supply-managed products. Duty rates for the affected products, which are classified in dozens of subheadings under HS chapters 7, 8, 9, 10, 11, 12, 15, 16, 17, 18, 19, 20, 21, 22, 33 and 35, currently range as high as 14.5 percent. For goods classified in Chapter 20, the proposed tariff elimination would be limited to those used in the manufacture of food products or beverages.

The Canadian agri-food processing industry is Canada’s largest manufacturing employer and an important contributor to the Canadian economy. Budget 2016 announced the Canadian government’s intention to launch public consultations on eliminating tariffs on certain imported food manufacturing ingredients, other than supply-managed products, to support investment and job creation in this important sector.

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