The European Union-Canada Comprehensive Economic and Trade Agreement (CETA) provides for the import and export of goods between the EU and Canada tariff-free (in most circumstances). An overriding concern for members of a free trade agreement is how to discern goods that originate from a member country from those that do not. The reason this is complicated is that goods that originate from member countries enjoy tariff-free import while goods from non-member countries do not.
Free trade agreements encourage companies to set up facilities in member countries to take advantage of duty-free treatment. To counter unscrupulous companies, free trade agreements (including CETA) use â€œorigination protocolsâ€ to distinguish goods that enjoy tariff-free imports. ARGO Customs recognizes that receiving free trade treatment can be critical to the success of firms, therefore, it has trained its team of customs brokers to understand the requirements to receive Canada or EU origination treatment.
CETA incorporates these rules in the â€œprotocol on rules of origin and origin procedures.â€
Importing Textiles into Canada Under CETA
Under CETA, the EU member states and Canada set up origin quotas for imports of apparel and textiles between the EU and its Member States. ARGO Customs Brokers can help your company import textiles into Canada, duty-free.
The origination system is composed of several measurements: (1) time (or “quota”) (2) location and (3) composition. The origin quota period runs on a calendar year from January 1 to December 31, inclusive.
For example, the importation of textiles and apparel products is governed by Annex 1. Annex 1 provides all of the necessary information to ascertain if your textiles qualify for free trade treatment, the composition of your textiles to achieve free trade treatment, and how you can obtain duty-free imports. ARGO Customs Brokers can assist your company is applying the rules found in Annex 1 to your products to help you import textiles into Canada.
Moreover, even if you qualify for free trade treatment and are within the import quota, certain textiles are still subject to import controls under the Export and Import Permits Act (â€œEIPAâ€). Accordingly, if your goods are subject to the EIPA, you must obtain permits before importing them under CETA to obtain preferential treatment.
ARGO Customs Brokers can provide consultation about types of permits:
- Products issues on first-come, first-serve basis;
- Shipment-specific permits; and
- Whether the import quota has been met (if it has been, no more goods will be accepted).
ARGO Customs Brokers can help your company ascertain how to obtain free trade treatment, including the permit process. ARGO Customs Brokers can help your company import textiles into Canada. Sign up for a business account online today!