DAILY NEWS
NEWS RECORD
5 Aug. 1969.
Orders Canada Duty Study,
For Man-Made Fiber Fabrics
-
ished garments particularly since they must rely to an appreciable extent
on imported fabrics in order to meet consumer demand for style and variety.
By IVOR W. BOGGISS OTTAWA. The Canadian tariff board has been directed by Finance Minister E, J. Benson to inquire into duty rates on woven, man-made fiber fabrics used in the manufacture of ap- parel--and to come up with rec- ommendations.
- in18-
items concerne
i hearing on the tariff rest to United States fabric sup- pliers to Canada although Japan now is largest shipper of these cloths has been set for Nov,
17 in Ottawa.
The inquiry is into tariff item 56205-1 under what is officially known as tariff board reference No. 144.
In his letter to tariff board chairman L. C. Audette, Benson says that as a result of the growing popularity of perma- nent-press type garments, fabrics enumerated under this tariff
item have become an increasingly important raw material for Canadian manufacturers of gar- ments and wear apparel.
These manufacturers, particu- Jarly those producing shirts, trousers, dresses and blouses, havé represented to the Govern- ment that the rates of duty under this item discourage pro- duction in Canada and favor the importation of completely fin-
Benson asks the board to sub- mit its report by the end of February 1970
The
present favored nation duty. rate on fabrics under this tariff item is 25 per cent plus 15 cents a pound. The compa- rable duty rate on finished gar- ments made from these fabrics is 25 per cent.
It has long been the con- tention of manufacturers that these rates constituted an anomaly that needed straighten- ing out. The issue came to the forefront again a few months back when the question of draw- back payments on the export of polyester blend shirts raised.
Was
Benson's letter to Audette says that if the board's study should indicate that different provi- sions should be made for these fabrics, either by amendment to the customs tariff or by regu- lation he would ask the board to include their recommenda- tions. He added that he would expect the board, in making such recommendations, to take into account existing duty rates used by the Canadian manufac- turers of fabrics as well as the present rates on garments and wearing apparel made from these fabrics.
The board asks that briefs or submissions in support of any proposals to be used before the board be filed in writing not later than Oct. 27.
The board points out that matters pertaining to quotas on low-cost imports do not fall within the scope of this inquiry.
Copy
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