To the best of our knowledge based on available information at the time of this writing, CETA is expected to enter into force at some point in 2017 and with such, we encourage Importers to reach out to their vendors to confirm what knowledge they may have with regards to whether the goods they’re exporting to Canadian purchasers/importers qualify under CETA in accordance to Annex 5 Specific Rules of Origin which can be found through the below link.
Customs Brokers cannot make determinations on whether a finished good qualifies under CETA Annex 5 Specific Rules of Origin, only Customs Authorities in the Country of Import and Export can make such determinations. However, there will be avenues to which Origin Verification can be obtained through Customs Authorities in both the importing and exporting countries at varied costs, depending on how much work is involved and how long it takes to secure, which at this time, is unknown.
Exporters in Europe may already be confident that the goods they export qualify in accordance with CETA Annex 5 Specific Rules of Origin based on their knowledge of the manufacturing process and material components that go into their finished goods, as it will be the responsibility of the Exporter to certify the goods they export to Canada qualify under CETA by way of a properly completed “Origin Declaration” detailed below.
Importers should put the onus on their vendors to ensure the validity of any “Origin Declaration” issued as it will ultimately be the responsibility of the “Importer of Record” as to the validity of a CETA Tariff Treatment applied on import declarations.
Many goods will be duty free upon CETA entering into force but some (Agriculture/Fish/Automotive) will be reduced to free over various timelines ranging from three to seven years, to the best of our knowledge and is detailed in the above link.
There are no changes to H.S. Classifications as a result of CETA, the WCO revised the Customs Tariff as of Jan. 1st, 2017 and those revisions are identified by Side Bars throughout the 2017 Customs Tariff in comparison to that of the 2016 tariff.
There are Product Specific Rules of Origin (Annex 5) that apply to each H.S. Classification number of a finished good that may qualify and in order for those goods to qualify, they must fall within the scope of the specific rule applicable to the H.S. classification of the finished good they import. In addition, the Exporter must provide an Origin Declaration certifying their qualification with certain exceptions noted under Article 24.
Importers are encouraged to review the agreement in more depth if importing goods that may be affected.