Thank you, Mr. Chairman and members of this committee. Good morning to you all. We appreciate the opportunity to be here today.
The Deputy Minister of Finance sends his regrets for not being available to participate today.
I will begin my remarks with a brief overview of the role of the International Trade and Finance Branch with respect to customs duties. I will then say a few words about the Auditor General's findings and the actions we are taking to address this recent recommendation to the department to review Canada's tariff regime.
The Minister of Finance has legislative and policy responsibility for Canadian import policy, including Canada’s tariff regime, which is governed by the customs tariff and its underlying orders and regulations. The international trade and finance branch provides analysis and advice on trade and tariff policy issues to support the minister in this capacity. The branch is also involved in drafting related legislation, orders and regulations, and supporting their implementation.
With respect to customs duties, our analysis and advice is guided by proactive tariff policy principles in support of important economic policy objectives. In recent years, this has included numerous measures to assist various economic sectors, support consumers, and ensure tariff programs for developing countries are aligned with global realities. These efforts are in addition to the many changes made to the legislation as a result of trade agreements, and to simplify its structure and administration.
Regarding the customs duties audit finding, the Department of Finance was largely regarded as effectively fulfilling its responsibilities. The report concluded that when the department reviewed customs duties, whether it be in the context of FTA negotiations or in support of various other government priorities, the analysis conducted was sound.
The report nonetheless recommended that the department conduct a review of the Customs Tariff to identify if there are any specific tariff items that no longer meet their policy objectives and that could possibly be modified.
As outlined in our response to this recommendation, the department has agreed to undertake such a review, taking into account Canada’s tariff policy objectives and international obligations, among other factors. In fact, in accordance with the timelines provided in our detailed action plan, this review is currently under way by my officials. Our objective for this review is to identify specific tariff items that could be modified, as well as other technical simplifications to the tariff structure that would help reduce red tape and ease administrative burden and compliance costs for businesses. Our aim is to provide recommendations to our minister in the coming months and to implement any resulting changes by the end of 2018.
Before I end, I would like to thank the Auditor General for the constructive feedback provided in the report. We look forward to working ahead on our recommendation.
Thank you once again for your time. We look forward to answering your questions.