Q) What is CETA?
A) The Comprehensive Economic and Trade Agreement or CETA, is a trade agreement between the EU and Canada.
CETA covers virtually all sectors and aspects of Canada-EU trade in order to eliminate or reduce barriers. CETA addresses everything from tariffs to product standards, investment, professional certification and many other areas of activity.
Q) When will CETA be implemented?
A) Canada and the European Union (EU) have agreed that CETA will provisionally apply starting September 21, 2017. At which time, qualifying goods that are deemed to originate under CETA may be eligible for wide-ranging tariff reductions when imported into Canada or EU countries
Q) Which tariffs will be eliminated or reduced?
A) Upon implementation, the agreement will eliminate virtually all tariffs on originating goods immediately: over ninety-nine percent (99%) of the non-agricultural tariff and over ninety-two percent (92%) of the agricultural tariffs will be zero on day one. The remaining products will be phased out over time; up to seven (7) years for the most sensitive goods.
Any originating goods that are not in the Tariff Schedule listed under Chapter 2 will be duty free immediately upon implementation of CETA. However, certain goods not listed in the Tariff Schedule may be subject to quota.
Q) What determines the effective date for which CETA rates to be claimed?
A) The Canada Border Services Agency (CBSA) has advised that the release date will determine the effective date for which the CETA preferential tariff treatment may be claimed
Regulatory Affairs Canada July 2017 Page 1
Q) What will be the Proof of Origin under CETA?
A) Products originating in the European Union, on importation into Canada, and products originating in Canada, on importation into the European Union, benefit from preferential tariff treatment of this Agreement on the basis of a declaration ("origin declaration").
The origin declaration may be provided on an invoice or any other commercial document that describes the originating product in sufficient detail to enable its identification. An origin declaration shall be valid for 12 months from the date it was completed by the exporter
The origin declaration is found in Annex 2
Text of the Origin Declaration
The origin declaration, the text of which is given below, must be completed in accordance with the footnotes. However, the footnotes do not have to be reproduced.
(Period: from___________ to __________(1)
The exporter of the products covered by this document (customs authorization No ...(2)) declares that, except where otherwise clearly indicated, these products are of ...(3)
preferential origin. …………………………………………………………….............................................(4)
(Place and date) ……………………………………………………………………..............................(5)
(Signature and printed name of the exporter)
(1) When the origin declaration is completed for multiple shipments of identical originating products within the meaning of Article 19.5, indicate the period of time for which the origin declaration will apply. The period of time must not exceed 12 months. All importations of the product must occur within the period indicated. Where a period of time is not applicable, the field can be left blank.
(2) For EU exporters: When the origin declaration is completed by an approved or registered exporter the exporter's customs authorization or registration number must be included. A customs authorization number is required only if the exporter is an approved exporter. When the origin declaration is not completed by an approved or registered exporter, the words in brackets must be omitted or the space left blank. For Canadian exporters: The exporter's Business Number assigned by the Government of Canada must be included. Where the exporter has not been assigned a business number, the field may be left blank.
(3) "Canada/EU" means products qualifying as originating under the rules of origin of the Canada-European Union Comprehensive Economic and Trade Agreement. When the origin declaration relates, in whole or in part, to products originating in Ceuta and Melilla, the exporter must clearly indicate the symbol "CM".
(4) These indications may be omitted if the information is contained on the document itself.
(5) Article 19.3 provides an exception to the requirement of the exporter's signature. Where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory.
Regulatory Affairs Canada July 2017 Page 2
Q) What does originating mean?
A) The term “originating” means originating in either Party under the rules of origin set out in the Protocol on rules of origin and origin procedures.
The Product-specific rules of origin are found within Annex 5
Q) What are some of the Importer’s obligations under CETA?
A) In order for an importer to claim preferential tariff treatment, it must be in possession exporter’s origin declaration and be able to provide the origin declaration to their customs authority, upon request. An importer is also required to inform its customs authority of an incorrect origin declaration and pay any duties owing.
In cases where the importer did not have an origin declaration at the time of import, the chapter allows for refund of excess duties paid, within a specified time period.
Importers may be requested to provide documentation that demonstrates that the good, while en-route to Canada or the EU, remained under the customs control of any country not party to the Agreement.
Q) What are the time limits to claim a refund of duties under CETA?
A) If a product would have qualified as an originating product when it was imported but the importer did not have an origin declaration at the time of importation. A refund request may be submitted within a period of no less than three years after the date of importation, as a result of the product not having been accorded preferential tariff treatment.
Q) Does CETA contain a direct shipment clause?
A) Article 14 of the Protocol on rules of origin and origin procedures addresses the transportation through a third party country and reads as follows:
1. A product that has undergone production that satisfies the requirements of Article 2 shall be considered originating only if, subsequent to that production, the product:
a) does not undergo further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the product to the territory of a Party; and
b) remains under customs control while outside the territories of the Parties.
2. The storage of products and shipments or the splitting of shipments may take place where carried out under the responsibility of the exporter or of a subsequent holder of the products and the products remain under customs control in the country or countries of transit.
Regulatory Affairs Canada July 2017 Page 3
Q) What is the tariff treatment code for CETA?
A) The Customs Tariff will be amended by adding CEUT “Canada-European Union Tariff” and the tariff treatment code for CETA will be code “31”.
Q) What is the Registered Exporter System (REX System)?
A) The Registered Exporter System (the REX system) is the system of self-certification of origin by registered exporters in the European Union.
EU exporters apply to become registered exporters by filling in an application form and by returning it to their competent authorities. The competent authorities register exporters who submit complete and correct application forms.
Once an EU exporter is registered, they will receive a registration number, which must be indicated on the Origin Declaration.
Q) What will happen when Britain leaves the European Union?
A) Currently, Britain is still part of CETA and will be as long as they remain a member of the EU. At this point, we do not know how their status will change when they leave the EU. It is our understanding; the British government will need to strike new free-trade agreements when they formally exit the EU. We do know that Britain cannot negotiate new trade deals while still in the EU, as trade pacts are signed by the EU on behalf of all member states.
Q) What specific countries make up the European Union?
A) The European Union currently consists of 28 Member States: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom.
Regulatory Affairs Canada July 2017 Page 4
May 30, 2017
Anti-dumping duty and countervailing duty are now being assessed on certain Fabricated Industrial Steel Components (FISC). On Thursday May 25, 2017 the Canadian International Trade Tribunal (CITT) issued a finding of injury respecting FISC originating in, or exported from China, Korea, and Spain.
This finding follows a Notice of Final Determination of Dumping and/or subsidizing of certain FISC issued by Canada Border Services Agency (CBSA) on April 25, 2017.
Certain exporters listed in the CBSA Final determination have been provided with normal values.
The subject goods are described fabricated structural steel and plate-work components of buildings, process equipment, process enclosures, access structures, process structures, and structures for conveyancing and material handling, including steel beams, columns, braces, frames, railings, stairs, trusses, conveyor belt frame structures and galleries, bents, bins, chutes, hoppers, ductwork, process tanks, pipe racks and apron feeders, whether assembled or partially assembled into modules, or unassembled, for use in structures for:
1. Oil and gas extraction, conveyance and processing;
2. Mining extraction, conveyance, storage, and processing;
3. Industrial power generation facilities;
4. Petrochemical plants;
5. Cement plants;
6. Fertilizer plants; and
7. Industrial metal smelters;
Goods excluded from the determination are electrical transmission towers; rolled steel products not further worked; steel beams not further worked; oil pump jacks; solar, wind and tidal power generation structures; power generation facilities with a rated capacity below 100 megawatts; goods classified as “prefabricated buildings” under HS Code 9406.00.90.30; structural steel for use in manufacturing facilities used in applications other than those described above; and products covered by previous Measures in Force including Certain Fasteners, Structural Tubing, Carbon Steel Plate III and VII, and Certain Steel Grating.
The CITT also excluded from its finding, goods imported in 2017 by Andritz Hydro Canada Inc. from Sinohydro for the Muskrat Falls hydro project in Newfoundland and Labrador.
The FISC in question are usually classified under Harmonized System classification numbers: 7216.99.00.10, 7216.99.00.20, 7216.99.00.30, 7216.99.00.91, 7216.99.00.99, 7301.20.00.10, 7301.20.00.20, 7308.40.00.00, 7308.90.00.60, 7308.90.00.96, 7308.90.00.99, 73126.96.36.199, 8421.99.00.90, 8428.31.00.00, 8428.32.00.00, 8428.33.00.00, 8428.39.00.30, 8428.39.00.41, 8428.39.00.49, 8428.39.00.80 and 8428.39.00.90.
Note that these HS codes are provided for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.
Additional information including the list of exporters provided with normal values can be found in the Notice of Final Determination on CBSA’s website.
The Finding of Injury issued on May 25, is found on the CITT website.
Please feel free to contact our compliance department, should you have any questions or concerns.
FINAL -- March 6, 2017
Near North Customs Brokers of Barrie, ON Acquires Summit Customs Brokers of Richmond, B.C.
-- Expands Portfolio and Geographic Reach --
BARRIE – Ontario – March 7, 2017 -- Near North Customs Brokers (NNCB) announced today that it has acquired Summit Customs Brokers of Richmond, B.C. The purchase enables Near North to access new geographic markets in British Columbia and add complimentary services to its existing portfolio of offerings.
Summit Customs Brokers provides a comprehensive range of services to enable items such as commercial goods, parcels and cars to cross the Canada border with ease. It assists both individuals and importing businesses of all sizes and in all industries including retail, petroleum, and industrial equipment manufacturing. It has extensive knowledge of Canadian customs laws and a long history of Canada Border Services Agency (CBSA) compliance.
"This was a strategic business move for Near North, but it goes beyond acquiring new offerings and greater reach," said Dave Jupp, vice president sales, NNCB. "Of importance to both companies were our shared values of operating with integrity, excelling as a true business partner for our customers, being an employer of choice, and giving back to the community. Summit has long been on our radar due to its excellent reputation and we are delighted to make this deal a reality."
"Summit Customs Brokers was established in 1993 and three generations of our family have helped grow the business to where it is today," said Sharmaine Shultz, president & CEO, Summit Customs Brokers. "Naturally, a great deal of care goes into such a transaction. We had to be certain our customers, employees, reputation, and legacy would transfer to a business that values what we have built and who will take that to the next level. We are delighted to have found such a company in Near North Customs Brokers."
"We are confident that this step will benefit our customers and employees," said Steven Kendall, vice president Summit Customs Brokers. "We have known Near North for a long time now and believe our corporate cultures and our offerings are a solid fit that should spur future growth and success."
Sharmaine Shultz and Steven Kendall will remain in their current roles leading the Summit Group.
Headquartered at Vancouver International Airport, Summit Customs Brokers has additional offices in Penticton, Vernon, Kelowna, the Pacific Highway Border Crossing in Surrey, the Osoyoos Border Crossing, Whitehorse, and Oroville in WA. For more information about Summit Customs Brokers visit www.summitcb.com
About Near North Customs Brokers
Established in 1990, Near North Customs Brokers provides superior customs brokerage, consulting services, and freight forwarding to customers from any point in the world. Based in Barrie, Ontario, Near North Customs Brokers has four additional locations in Canada: Toronto, Sudbury, Sault Ste. Marie and Edmonton, as well as an office in New York, USA. Near North Customs is a proud member of Manitoulin Group of Companies. For more information about Near North Customs Brokers visit www.nearnorthcustoms.com/
Angela Rea PR -- for Near North Customs Brokers
(1) 905 304 9638
CBSA has released its 2017 compliance verification priorities for tariff classification and valuation, which can be found in detail at http://www.cbsa-asfc.gc.ca/import/verification/menu-eng.html.
Trade compliance with the Tariff Classification, Valuation and Origin programs is managed using the following two post-release verification processes.
1) Random verifications
2) Verification priorities
Random verifications are designed to measure compliance rates and revenue loss and the results may be used for many purposes, including:
Targeted verification priorities are determined through a risk based, evergreen process, meaning that new targets are added continually throughout the year.
The following items have now been included as a priority in the tariff classification category:
Stone Blocks and Slabs
Sausages and Similar Products
In addition to the new priorities, CBSA has issued a third round of classification verification for curling irons, and second round verifications for batteries, special purpose motor vehicles, parts for power trains, bicycle parts and sacks and bags under Tariff Item 9903.00.00.
If your company imports any of the products on this list, please give us a call. You will likely be targeted for a potential compliance audit. If you do receive a call or letter from Canada Customs, please contact your Near North account representative before you provide any information to CBSA. The time allotted to provide information can be very short.
If you would like to discuss the classification, valuation or determination of origin of any of the goods you import, not only for the goods listed, please don't hesitate to contact Near North's Compliance or Consulting department.