Contributing Lawyers


Cyndee Todgham Cherniak

United States

Susan Kohn Ross


Andrew Hudson

A Successful Textile Reference May be Worth The Effort

Further to a textile reference case under section 19 of the Canadian International Trade Tribunal Act (CITT Act), on August 27, 2007, the Canadian International Trade Tribunal (CITT) recommended that the Minister of Finance grant for an indeterminate period of time tariff relief by removing the 8% ad valorem duty on importations from all countries of (1) single yarn solely of artificial staple fibres other than acetate fibres, or mixed solely with 15% or less by weight of any natural fibre, measuring less that 210 decitex, of subheading No. 5510.11, and (2) single yarn containing 50% or more by weight of artificial staple fibres other than acetate fibres, mixed solely with cotton fibres, measuring less than 210 decitex, of subheading No. 5510.30, for use in the manufacture of circular knitted apparel fabrics.

In Canada, a textile reference case commences with a properly documented request for tariff relief in respect of a textile product. The CITT issues a notice of commencement of the investigation to all interested parties, who are permitted to file submissions in favour of the tariff relief and opposed to the tariff relief.  The CITT assesses the economic impact on Canadian textile and downstream producers of reducing or removing the applicable rate of tariff.  The CITT looks at relevant economic factors, including (i) the availability of substitutable inputs from domestic sources, (ii) domestic versus foreign price comparisons, and (iii) the net economic gains for Canada.

In its analysis, the CITT responded to opposition arguments that the relief should be denied because the CITT had denied relief for subheading Nos. 5510.11.00 and 5510.30.00 on a pervious occasion.  The CITT responded that it makes a case-by-case examination of any specific requests for tariff relief.

In weighing the economic effects, the CITT determined that the importers would receive economic benefits in excess of $125,000 per year (based on MFN and GPT rates of duty for 2007).  The CITT determined that the domestic producers of yarn receive little protection from the current tariff.  After reviewing all of the evidence presented by the Parties, the CITT recommended the tariff relief. 

The economic benefits of the $125,000 per year highlight that this textile reference mechanism should be considered by importers of textile products because the economic benefit of a win could justify the effort in making the request and submissions.

To read a copy of the recommendations, please click on CITT File No. TR-2006-002.

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