Thank you.
My name is Dean Beyea. I was here earlier. I am the director of international trade at the Department of Finance. I'm here with my colleague, Patrick Halley, and Alec Attfield from the Canada Border Services Agency.
Division 44 amends the Customs Tariff. There are two primary changes. First, there is a tariff reduction that supports the energy industry. Clauses 620 and 621 eliminate a 5% tariff on imported fuels used in energy and electricity generation. The tariff was imposed recently as a result of a CBSA tariff classification decision, therefore the budget simply restores duty-free status. This will enhance the competitiveness of the sector and reduce the cost of electricity generation.
The second element amends the travellers' exemptions in the Customs Tariff. Those are clauses 622 to 624. They amend the Customs Tariff to increase the value of goods that may be imported duty and tax free by returning Canadians after absences from the country of more than 24 hours. The amount moves from $50 to $200; and for absences greater than 48 hours, from $400 to $800. This measure will facilitate the border processing of Canadian travellers and harmonize the more than 24-hour and 48-hour exemption levels with those of the United States.