As a global logistics firm making thousands of cross-Atlantic shipments every week, FedEx is thrilled with the recent decision by EU and Canadian heads to put CETA provisionally into effect from 21st September 2017. This landmark deal promises to make it easier and cheaper for you to export goods and services between the EU and Canada. It could also mean new trading partners, materials for your products, investments and much more.
What you need to know
- CETA stands for the Comprehensive Economic and Trade Agreement
- 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’s 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
How CETA could benefit 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). It also means you could benefit from cheaper parts and components coming from the country, invest there more easily and even bid for Canadian public contracts. To find out more about these and a host of other benefits, read this article from the European Commission.
Important points about ‘origin’
In order 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).
Unlike most other trade agreements, under CETA, certificates of origin won’t be issued by the customs authorities and the EUR1 form (movement certificate) can’t be used as proof of origin. Instead, exporters will have to issue an ‘origin declaration’ themselves using the recently introduced Registered Exporter System (REX). See below.
How to begin using CETA when it comes into effect
- Apply for a Registered Exporter (REX) number by completing this form.
- Send the completed form to your national customs office. (You can also check with your national customs authority whether they offer on-line registration.)
- You will then receive a REX number to indicate on the origin declaration to be provided on the commercial document that describes the product
- The originating product will then benefit from CETA in Canada on the basis of the origin declaration.
CETA is a truly game-changing agreement and at FedEx we’re looking forward to seeing how our customers throughout the EU and Canada use it to boost their operations.