The CBSA recently published D11-4-37 Origin Quotas and Alternatives to the Product-Specific Rules of Origin under the Canada–European Union Comprehensive Economic and Trade Agreement (CETA) and the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA). This is important news for Canadian and UK businesses, as it lays out the rules for achieving preferential tariff treatment, which reduces the amount of tariffs importers pay.
Under CETA) and Canada-UK TCA, specific quantities of some products may qualify as originating under alternative product-specific rules of origin (origin quotas). Under the CETA origin quotas, products that include non-Canadian or non-European Union (EU)-sourced materials may qualify as originating and receive preferential tariff treatment, up to the specified quantity, and likewise, products that include non-Canadian or non-United Kingdom (UK)-sourced materials may qualify as originating and receive preferential tariff treatment, up to the specified quantity, under the Canada-UK TCA.
Under both agreements, origin quotas have been established for agricultural products (high sugar-containing products, sugar confectionery and chocolate preparations, processed foods, and dog and cat food), fish and seafood, textiles, apparel, and vehicles. Canada has import and export permit requirements for these origin quota products.
This memorandum specifies the products that are eligible for the origin quotas, the manufacturing processes that products are required to undergo in the territory of the Parties to the CETA or the Canada-UK TCA, and the documentation needed to support a claim for CETA preferential tariff treatment or Canada-UK TCA preferential tariff treatment.
As with all imported products, the importer must have the origin declaration at the time the products are released, or at any other time when the importer declares on customs documentation that they possess an origin declaration.
More details on CETA and Canada-UK TCA are available on the Global Affairs Canada website.