ARGO Customs Advises Importers on Important Factors in EU Textile Importation

February 19, 2020 – Toronto, ON – The import experts at ARGO Customs want importers to be aware that importing textiles into Canada from the EU may be more complicated than it seems.  Despite the general perception that EU textiles can be imported duty-free, there is more to the process, and importers may want to refer to experts to ensure their products are not taxed.

Originally passed in 2016, the EU-Canada Comprehensive Economic and Trade Agreement (CETA) is a wide-ranging free trade agreement between Canada and the European Union.  All in all, it removed roughly 98% of tariffs between the two economic blocs, including an elimination of tariffs on all textiles and clothing which have been manufactured in the EU and shipped directly to Canada.

This is important to textile importers because otherwise, tariffs can be as high as 18%.

However, there are several significant caveats and procedures which must be followed, for an importer to successfully take advantage of these free-trade agreements.

  1. EU Exporters must be part of REX

To gain these benefits, the European company exporting the textiles must be members of the Registered Exporters (REX) system and include their REX number in the paperwork.  This applies to all consignments with a value of EUR 6,000 or more.

  1. Products must originate in the EU

Any eligible product must fully originate in the EU, rather than being imported from a different country, per the Protocol on Rules of Origin and Origin Procedures.  Proof of origin may be required.

  1. Certain products must still have a permit

Not all clothing and textiles can be imported in unlimited quantities.  There are still quotas and safeguards on flooding and oversight of certain other textile-related products.  These rules can be subtle and are best interpreted by professionals to ensure the importation is successful.

ARGO Customs suggests that all aspiring Canadian importers take time to consult with Canadian importation experts to ensure full compliance.

About ARGO Customs

ARGO Customs specializes in making it as easy as possible to import products into Canada, with a focus on fast and friendly service.  The fully licensed and highly experienced customs agents at ARGO have broad familiarity with imported products and the rules governing them, backed up by state-of-the-art software systems to ensure full regulatory compliance.

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