Thank you and good morning, Mr. Chair and members of the committee. I'd like to start by thanking you for inviting us to appear today.
On behalf of Global Affairs Canada I would like to thank the Auditor General for the work of his office on this important issue. We acknowledge the findings and recommendations of the report and look forward to discussing the steps taken to address some of his findings. First, I would like to provide some information on the role of Global Affairs Canada as it relates to the customs tariff.
Global Affairs Canada is responsible for administration of import controls under the Export and Import Permits Act. It is the government authority for the review of and the issuance of permits regarding the import of products contained on the import control list. This list contains many different types of goods, including various agricultural products, textiles and apparel, certain steel products, and certain strategic and military goods. The majority of items contained on the import control list are identified by the customs tariff classification.
Under certain bilateral and multilateral commitments, Canada has established tariff rate quotas for agricultural products, including supply-managed goods, which allow for a certain predetermined volume of products to be imported at a low rate of duty. Importers wishing to claim the low rate of duty for these goods normally require a shipment-specific permit issued under the Export and Import Permits Act. Imports of these goods without a shipment-specific permit can normally only be facilitated at the higher rate of duty as identified in the customs tariff. There are certain exemptions for imports of goods for personal use.
Global Affairs Canada has a close working relationship with the Canada Border Services Agency, which is responsible for the assessment of the goods imported into Canada and the enforcement of border controls. Import permits issued under the authority of the Export and Import Permits Act are shared electronically on a transaction-by-transaction basis with the Canada Border Services Agency in order to facilitate their administration of border controls and tariff classification of the imported goods. This information process is facilitated via Global Affairs Canada's export and import control system software and the Canada Border Services Agency's accelerated commercial release operations support system. As such, ensuring that tariff rate quotas are respected and that supply-managed goods entering Canada are properly assessed is a shared goal of both Global Affairs Canada and the Canada Border Services Agency. We take seriously the responsibility to administer the import control component of Canada's system of supply management.
A key finding of the OAG report regarding the management of customs duties was that a certain volume of controlled goods subject to tariff rate quotas was imported into Canada at the low rate of duty without the required shipment-specific import permit, thereby negatively impacting the integrity of Canada's system of tariff rate quotas and duties payable to the Government of Canada. In order to address this finding, the OAG recommended that Global Affairs Canada and the Canada Border Services Agency work collaboratively to better enforce tariff rate quotas.
In response to the OAG's findings and recommendations, the department has instituted a process by which officials of the Canada Border Services Agency will receive regular breakdowns of all permits issued for agricultural goods subject to import controls under the Export and Import Permits Act. This will assist CBSA officials in their post-shipment verification activities and improve the effectiveness of the enforcement of tariff rate quotas.
The information is being shared under established information-sharing authorities. We believe that strong interdepartmental co-operation is one of the main strengths of Canada's import control program. I can assure you that Global Affairs Canada is fully committed to strengthening our efforts in this important area.
We will be happy to respond to your questions on these or other matters. Thank you.