Take advantage of CETA
The Comprehensive Economic and Trade Agreement (CETA) between the European Union (EU) and Canada has provisionally entered into force as of 21 September 2017. It opens up big opportunities for businesses in both regions by making it easier to import and export goods and services.
The CETA at a glance
- The deal eliminates approximately 98% of all import duties between the EU and Canada.
- Another 1% of import duties will be phased out over a period of up to seven years.
- It is estimated that CETA will save European exporters around €470 billion a year.
- It is the first deal of its kind between Europe and another major economy.
- It is expected to boost the EU’s economy by €12 billion.
Key benefits for your business
- By cutting the duties companies have to pay at customs, the agreement makes it cheaper for EU businesses to trade in Canada (and of course for Canadian businesses to trade here).
- The deal could also mean new trading partners, investment opportunities as well as easier access to materials and parts for your products and much more.
Find out more about these and a host of other benefits on the European Commission website.
To benefit from a 0% import duty rate, the products imported into Canada need to be of ‘EU origin’ (likewise, of Canadian origin for products imported into the EU). It is important to note that certificates of origin will not be issued by the customs authorities and the EUR1 form can no longer be used as proof of origin. Proof of origin is now based on a declaration and not a formal certificate.
As an exporter, you will have to write the following statement of origin on your commercial invoice - or any other commercial document - along with a complete description of your products. The originating products will then benefit from CETA on the basis of the origin declaration.
Sample Statement of Origin:
(Period: from___________ to __________)
The exporter of the products covered by this document (Customs authorization No…*) declares that, except where otherwise clearly indicated, these products are of ... preferential origin.
(Place and date)
(Signature and printed name of the exporter)
*For EU exporters, the Customs authorization No. is the company’s Registered Exporter system (REX) number and only applies to shipments valued over 6,000 EUR. For shipments valued under 6,000 EUR a REX number is not required.
How to get registered in REX
Your shipment is valued over 6,000 EUR and you are not registered in the REX database yet? Follow the 3 steps below.
Send the completed form to your national customs office. You can check with your national customs authorities for the possibility of online registration.
You will then receive a REX number to include on the origin declaration to be provided on the commercial document that describes the product.
Before CETA takes full effect, national parliaments in EU countries – and in some cases regional ones too – will need to approve CETA according to their respective constitutional requirements.
For the latest information about CETA, please refer to the European Commission website ►