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On October 8, 2014, the Canada Gazette published several regulations to implement the Canada–Honduras Free Trade Agreement (CHFTA), which was signed on November 5, 2013. When implementing free trade agree¬ments in Canada, legislation and associated regulations and orders are necessary to implement commitments into the Canadian legal framework. The Canada — Honduras Economic Growth and Prosperity Act received Royal Assent on June 19, 2014. The associated regulations and orders required to fully implement the commitments of the CHFTA into the Canadian legal framework include the following regulations published on October 8, 2014:
• The CHFTA Rules of Origin Regulations implement, in Canada, the rules of origin negotiated by Canada and Honduras that will be used to determine when goods have undergone sufficient produc¬tion to qualify for preferential tariff treatment. Goods that meet the criteria set out in the CHFTA Chapter on Rules of Origin or its associated annexes qualify as originating and therefore are eligible for preferential tariff treatment. Preferential tariff treatment under the CHFTA, which reflects the actual reduction in specific rates of duty, has been implemented in the Customs Tariff through the Canada — Honduras Economic Growth and Prosperity Act.
• The CHFTA Rules of Origin for Casual Goods Regulations establish the conditions under which goods acquired in Honduras by travelers are considered originating and therefore entitled to preferential tariff treatment. Where travellers acquire goods in Honduras that are either marked as made in Honduras, or not marked to the contrary, the traveller can claim the Honduras tariff preference on importation of the goods into Canada.
• The CHFTA Tariff Preference Regulations allow eligible goods that are not shipped directly between Honduras and Canada to retain their eligibility for preferential tariff rates provided the goods remain under customs control in third countries.
• The CHFTA Sugar Aggregate Quantity Limit Order implements the negotiated outcome between Canada and Honduras with respect to market access for sugar. It sets out the annual quantity limits of certain sugar products that can be imported from Hon¬duras and receive preferential tariff treatment. A tariff rate quota has been established under the CHFTA that allows 2 500 metric tonnes of refined sugar to be imported in the first year following the entry into force of the agreement. This quantity gradually increases to 5 000 metric tonnes by year 15 of the CHFTA and remain at that level thereafter.
• The Imports of Certain Textile and Apparel Goods from Hon¬duras Customs Duty Remission Order sets out the maximum quan¬tities of textile and apparel goods that may be eligible for the bene-fits of the CHFTA under tariff preference levels. The tariff preference levels established under the CHFTA allow for a quantity of four million square metre equivalents (SME) of non-originating apparel and one million SME of non-originating fabric and textile goods to be imported at preferential tariff rates.
In addition, the following amendments were made to existing regulations to implement the CHFTA commitments:
• Regulations Amending the Marking of Imported Goods Regulations permits the marking of origin of a good imported under the CHFTA to be made in English, French or Spanish. Previously, the Marking of Imported Goods Regulations specified that non-NAFTA goods were to be marked in English or French. In addition, a consequential amendment to section 6 of those Regulations is made to broaden its application to capture the newly-created provisions in section 4. Moreover, three further house-keeping amendments of a non-consequential nature were made to section 6.
• Regulations Amending the Canadian International Trade Tribunal Regulations. Subsection 5(1) of the Canadian International Trade Tribunal Regulations is amended to ensure that the Tribunal considers the relevant factors set out under section 5 of the Canadian Inter¬national Trade Tribunal Regulations during a bilateral emergency action inquiry to determine if imports from Honduras are a sub¬stantial cause of serious injury, or threat thereof (e.g. the effect of imported goods on prices of like or directly competitive goods in Canada).
• Regulations Amending the Procurement Inquiry Regulations. Subsections 3(1), (2), 6(3) and 7(1), and sections 5 and 10 of the Canadian International Trade Tribunal Procurement Inquiry Regulations are amended to ensure that the Tribunal considers all the necessary factors when conducting a procurement bid inquiry that are subject to the terms of the CHFTA (e.g. a complaint alleging the improper evaluation of a proposal with respect to a government procurement bid).
• Order Amending the Import Control List. As per subsection 8(1) of the Export and Import Permits Act (EIPA), import permits may only be issued for goods included on the Import Control List (ICL). Therefore, in order for Canada to implement and administer its international obligations and rights on tariff preference level (TPL) textiles and apparel goods under the Canada-Honduras Free Trade Agreement (CHFTA), and for these goods to receive preferential tariff treatment, the ICL must be amended to include the scope of the CHFTA TPL provisions on textiles and apparel prior to the entry into force of the Agreement.
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