The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) has come into effect on September 21 which will essentially eliminate the customs duties on all imports from a European Union (EU) country or other CETA beneficiary, either immediately upon implementation of the agreement, or through a tariff phase-out.
Imports of textile products eligible under CETA are subject to import controls under Canadaâ€™s Export and Import Permits Act. Therefore, import permits are required for imports of such products to obtain the preferential tariff rate under CETA.
This is a beginning of new era in customs duty reductions and eliminations, rules of origin, customs procedures and quota requirements.
According to a Canadian government notice, Canada agreed to establish origin quotas for imports of textiles and apparel from the EU member states. The origin quota year extends from January 1 to December 31,
For 2017 only, the origin quota year extends from September 21 to December 31, and the access level for the origin quotas is pro-rated to that period.
Before importing the goods using the CEUT preferential tariff treatment, one must determine if the goods are subject to quotas. Textiles and apparel goods are subject to quotas. If one does not have an import permit for shipment of quota goods, they will not be able to claim CEUT tariff treatment even if the goods are listed in Canadaâ€™s Schedule of Commitments and meet the rule of origin.
With respect to textile and apparel goods, the import must request an import permit from Global Affairs Canada. For 2017, import permits will be issued on a first come, first served basis until the 2017 quota is used.
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