As of yesterday, the Comprehensive Economic and Trade Agreement, or CETA, between Canada and the European Union is now provisionally in full force. This agreement removes a lot of barriers in trade for Canada's second largest trading partner.
The agreement will result in:
- Over 98% of dutiable goods are now duty-free or have a lower level of duty.
- Lower landed costs are now in effect for shipments moving from either Canada or the EU.
- There will be freer markets allowing Canadian and European companies access to compete in the commercial business sector and government contracts which historically were restricted in each region.
So, what countries does this agreement affect aside from Canada?
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and United Kingdom.
Providing a Proof of Origin has also changed in order for goods to be shipped more efficiently with as little delays. Here are some highlights of the new process:
- The exporter needs to complete an Origin of Declaration and provide it on the invoice for their goods they're shipping.
- The exporter that completes an Origin of Declaration will have to submit the declaration along with all appropriate documents that prove the product's origin, including supporting documents or written statements from the producers or suppliers at the request of their customs broker.
- The customs broker for the importer can accept an application of an origin declaration for multiple shipments of the same product that take place within 12 months.
Visit the Government of Canada's CETA page to learn more about what tariffs apply to your business. You can also sign up for the "Unlock the potential of CETA" webinar by The Canadian Trade Commissioner Service, which will be bringing together a strong panel of trade experts and business leaders that will be explaining what the agreement covers and providing answers on what your company can do to take advantage of opportunities through CETA. If you need further information about CETA and how it affects your business from an importing or exporting standpoint, your ICECORP representative will gladly be able to assist you.