Most goods moving between Canada and EU countries will soon be eligible for duty relief.
On September 21, 2017, the Canada-EU Comprehensive Economic and Trade Agreement (CETA) will largely enter into force to eliminate approximately 98% of all tariffs between Canada and the EU, with another 1% to be phased out over a period of up to seven years.
To prepare for CETA, importers should review the Rules of Origin that apply to their products and contact their suppliers to determine whether their goods qualify for tariff elimination. Canadian importers will have to coordinate with their EU suppliers. These suppliers will be required to "self-certify" that their goods meet the applicable Rules of Origin under CETA. To do so, the EU suppliers will need to be registered in the recently introduced EU Registered Exporter System (REX) database.
CETA is set for what is called a "provisional implementation" on September 21, 2017. This date was jointly announced recently by the Canadian government and the European Commission. The provisional implementation ensures that most of the CETA provisions will come into force pending ratification by all the EU Member States. The EU legislative process requires the agreement to obtain ratification by each EU Member State, a process which could take several years. The provisional implementation however will apply to most of the agreement's provisions, including the tariff eliminations, with just a few exceptions related to investment and financial services.
We can help
KPMG has developed a proprietary Tax and Trade Intelligence Solution to help companies quantify the tariff and duty savings opportunities associated with new trade agreements and to put in place effective strategies to take advantage of these opportunities while managing risks. For more information, see our Trade & Customs site or contact a KPMG's Trade & Customs professional in Canada:
+1 604 691 3479
+1 416 777 3693
Information is current to July 11, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500