Sept. 21st, 2017 marks a large event in Canadian trade — the coming into effect of the largest trade deal since NAFTA. Similar to the NAFTA agreement, some important exclusions and information are buried in the agreement that importers should be made aware of. Please find below our guide to profiting from the deal:
Note: you are an apparel importer, please read this accompanying article
1. How do we apply?
The duty-free tariff will be applied automatically in most cases, although your vendors will need to reproduce the statement described below on their commercial invoice. Note that for most of your vendors the signature will not be required so long as they supply their REX number (if they have one).
An example of the statement below:
*REX number goes here (if your vendor does not have a REX number, they can provide their signature)
**If the statement is printed separately from the invoice, it must reference the invoice # as well the items on the invoice that qualify.
2. What if my seller does not include the statement on their invoice?
No problem, they can still provide the statement on a separate page. You may send them this
template to complete.
3. What’s the catch?
Similar to NAFTA, Customs will be performing audits to ensure that no unqualified goods (goods principally made outside the eurozone) are being snuck in using the CETA advantages. Border Bee would like to remind importers that they are ultimately responsible for their own compliance (even if your seller provide faulty information).
4. What if I order European goods from the U.S.?
The items must come directly from Europe to Canada (although an item may be manufactured in one European country and exported from another).
5. Does the CETA cover everything?
Nearly all imported items will have their duties immediately revoked — the exception remains on agricultural goods which will be phased out over a period of seven years.
Textiles and apparel mark another significant exception — please read our separate article here on how the CETA affects apparel importers.
6. Europe is huge, which countries actually qualify?
All official member states of the E.U. are eligible for free-trade, including principalities and newer members.
You may consult the official list on the Canada Gazette’s website.
7. How do I tell if the CETA was claimed on my importation?
To see if the CETA was claimed on your import, check your B3 to see if code 31 has been declared as the tariff treatment.
8. Is it possible for my supplier to provide a ‘blanket’ statement that will cover all of our importations?
Yes, the CBSA has recently clarified that suppliers can provide a ‘blanket’ statement so that a statement does not need to be included with each shipment.
The catch? The blanket statement must include sufficient detail regarding the eligibility under CETA of future orders. The CBSA suggests including an appendix to the blanket statement that identifies which items are covered.
Do you have additional questions about how CETA affects your business? Contact us