Hong Kong – Export Policy Changes

The Canada-United Kingdom Trade Continuity Agreement (CUKTCA)

The Canada-United Kingdom Trade Continuity Agreement (CUKTCA)

The Canada-United Kingdom Trade Continuity Agreement (CUKTCA) came into effect on April 1, 2021 after being formally ratified by both the CA and UK governments.  

Background

On November 21, 2020, Global Affairs Canada (GAC) announced that Canada (CA) and the UK had successfully come to an agreement on an interim trade deal: CUKTCA.  The CUKTCA is a transitional agreement that will enable the continuity of key benefits currently covered under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), including 98% tariff-free trade between the two countries. Additionally, it will allow extra time for both governments to negotiate a long-term comprehensive bilateral agreement. 

The New United Kingdom Tariff (UKT) tariff treatment code ‘34’

The CBSA has introduced tariff treatment (TT) code 34. To claim preferential treatment under the new UKT, TT code 34 may be cited for all qualifying goods imported into Canada on, or after, April 1,, 2021 under the CUKTCA.

See Customs Notice 21-07 for more information. 

Proof of Origin

The Protocol on Rules of Origin and Origin Procedures of CETA will continue to apply when claiming preferential tariff treatment under the CUKTCA. Preferential treatment will be based on an origin declaration and not a formal certificate of origin on goods traded between CA and the UK, on or after April 1, 2021.

For commercial goods, the origin declaration is required on the commercial invoice, or other commercial document, along with a complete description of the originating goods.

Sample statement below:

(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)

Casual goods (goods other than for sale or commercial use) do not require an origin declaration, however, the country of origin must clearly indicate that the goods are of UK origin on the air waybill and any accompanying documents (e.g., invoice).

*For CA exporters, the Customs authorization No. is the company’s Canada Revenue Agency (CRA) Business Number.

For UK exporters, the Customs authorization No. is the company’s Economic Operator Registration and Identification (EORI) number. Please see the Trade With Canada guidance provided by the UK government for more details.

Other Impactful Changes

  • Beginning May 10, 2021, interim Special Authority Code number 21-1-85 will be de-activated and can no longer be used to claim preferential tariff treatment for qualifying imported goods under the CUKTCA.

  • The UK Trade Continuity Remission Order is no longer valid for goods imported on or after April 1, 2021.

  • The CUKTCA Origin Quotas for agricultural products, fish and seafood, textiles and apparels, and vehicles continue to be referenced under Annex 5-A of the Protocol on Rules of Origin and Origin Procedures of the CETA.

Textiles and apparel imported from the UK under the CUKTCA Origin Quotas are subject to import controls under Canada’s Export and Import Permits Act and will require an import permit to claim preferential tariff treatment under the CUKTCA.

For more information on the required import permit and how importers can apply, please read the Global Affairs Canada (GAC) Notice to Importers – Serial No. 1037.

FedEx will continue to provide updates as more information becomes available.

Additional Resources

Customs Notice 21-08 - Proposed Regulatory Amendments and Proposed New Regulations Related to the Implementation of the CUKTCA

Customs Notice 21-06 - Amendments to the Departmental Consolidation of the Customs Tariff (Revised May 4, 2021)