The Prime Minister of Canada is hoping to have C-30, the Comprehensive Economic Trade Agreement (CETA), implemented by July 1, 2017. CETA still has to be ratified by all 28 European Union (EU) countries and 10 regional legislatures.

Not all tariffs will enjoy duty free status. Commodities are broken down into seven Staging Categories identified by “A” through to “E”:

CETA Staging Categories

Most commercial vessels and ships fall under staging categories B & D:

CETA Staging Categories

Staging Categories for Ships, Boats, and Floating Structures

CETA Staging Categories - Vessels

Certification of Origin

To enable the importer to claim preferential tariff treatment under the Agreement, the exporter must include an origin declaration on the invoice. This is a simple statement indicating the goods meet the rules of origin.

Exporter Obligations

The exporter’s own country’s customs authority has the authority to audit all documents in order to validate the claim for CETA tariff treatment. The importer must be notified of any changes in the information contained within an origin declaration by the exporter.

Importer Obligations

It is the importer’s responsibility to possess the exporter’s origin declaration at time of clearance. They also are obligated to correct any declaration within 90 days of being notified of any change that would affect the origin status. In cases where the importer did not have an origin declaration at the time of import, a refund of duties paid can be submitted within a specified time period.  Canada Border Services Agency (CBSA) may also request documentation to verify the goods remained under customs control in the event the goods are being transshipped via a non-CETA country.

12 Key Sectors of CETA

The Government of Canada has identified 12 key sectors of interest to Canadian businesses that will benefit from the Agreement, including Aerospace, Agriculture and Agri-food, Automotive, Fish and Seafood, and Oil & Gas. Click here for more information.

Finding your Product’s Tariff Rate Reduction

For more information on CETA or to determine the EU Tariff Rate associated with your product or equipment, click here.

If you would like further information on CETA or provisions specific to your industry please contact us.