After more than seven years in the making, Canada and the European Union the implementation of the Comprehensive Economic and Trade Agreement (CETA) is creating great opportunity.
Shipping Online Orders to European Union Countries
While orders online orders shipped to Europe Union countries valued under €150 (around CA$220) can be imported duty free, VAT will be assessed. This includes items sold on eBay, Shopify, bigcommerce, and other e-commerce platforms.
Read our blog on payment of VAT for online orders shipped to Europe.
Among the main changes are provisions for online marketplaces to be deemed the "supplier." As a supplier, the online marketplace will be held responsible for collection of VAT for online orders of up to €150. This new process, referred to as the Import One Stop Shop (IOSS), are designed to simplify the importation of online goods valued under €150. Contact Jet's logistics team for updates on new shipping options to France, Germany, Italy the European Union.
Goods that qualify as Canadian origin under CETA rules can benefit from duty free status even if over €150.
CETA: Reduction for all Canada Origin Goods
Tariffs are reduced for virtually all products and the regulatory burden reduced for Canadian companies operating in Europe and vice versa.
CETA represents new opportunities for Canadian companies are incredible.
CETA is expected to add over $1 billion to Canada to Canada's merchandise exports to the EU within the next 5 years.
Visit our other industry leading blogs for more specific information regarding international shipping to and from Canada (or contact our team for information).
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The CETA Advantage for Canadian Companies?
CETA will be a certain boon to Canadian exporters as a 500-million-person market opens and becomes nearly duty free. As Canadian companies look to tailor their products to the UE markets, Jet Worldwide can assist with our parcel logistics expertise.
Most Favoured Nation (MFN) tariff rates are generally applicable for good traded between E.U. countries and Canada. Goods that meet The Comprehensive Economic and Trade Agreement (CETA) rules of origin can benefit from preferential duty free import. The MFN tariff rates of Canada and E.U. members apply to goods that do not meet the rules of origin (non-originating goods) under CETA.
Jet Worldwide helps Canadian companies connect the EU market with economy parcel shipping and delivery of online orders to France, Germany, Italy and the entire EU.
The advantages of CETA include:
- One of the big gains for Canadian businesses from CETA is that the opening up of EU government tenders Canadian companies and vice versa
- The EU and Canada have agreed to accept each other's conformity assessment certificates in many key areas. This will avoid Canadian companies having do perform costly duplicate testing.
- CETA will make it easier for Canadian professionals to work on the other side of the Atlantic, and to move staff temporarily between the EU and Canada.
- CETA will remove barriers for Canadian companies wanting to invest in the EU and be treated equally.
READ ABOUT CANADA'S FREE TRADE AGREEMENTS
Simplified Origin Statement for Shipping TO Canada from EU Countries
The value for duty amount for all of Canada's free trade agreements (including CETA) for which the proof of origin / certificate of origin is waived was changed to $3,300 CAD in July 2020. This change was made to harmonize the regulations with the new NAFTA/ CUSMA.
For imports not exceeding $3,300 to Canada, the requirement for proof of origin is waived. The requirement on the importer to maintain records (for example, commercial invoice and B3) applies even if the CBSA does not require a certification of origin or if a requirement for a certification of origin has been waived.
Open Trade for Canadian and European E-Commerce
Using low cost and easily accessible e-commerce technologies, Canadian and European countries can now sell their goods more easily cross Canadian and European borders.
Jet assists Canadian and European businesses with e-commerce fulfilment and distribution across Europe and Canada.
Free Trade for Small and Medium Sized European Businesses
Traditional free trade agreements are usually only directly benefit mega large companies that trade in major commodities. CETA, like most recent free trade agreements (including the now defunct TPP) have provisions to help small and medium sized businesses. And make it easier for online orders to qualify for duty free entry.
Jet Worldwide's bi-lingual support helps European businesses expand to Quebec and across Canada.
Ways to enter the European Market
For most Canadian companies, international trade means selling to the USA. The EU is vastly more diverse. Following initial research, we help companies test the market through low fixed cost and initial investment.
Jet provides parcel logistics solutions transport for duty free import (as per new CETA rules) and on demand distribution across Canada (for European companies) and the entire EU (for Canadian Companies).
Starting Now to take advantage of CETA?
The time to start taking advantage of CETA is now. The experienced gained will be useful when CETA is fully implemented. The expected implementation of CETA will serve to lower the cost and allow you to leverage your existing experience and processes.
Parcel Import to Canada and Europe
Although CETA offers duty free entry for most merchandise, the processing of individual parcels will remain costly as both Europe and Canada have restrictive parcel import processes.
Jet helps companies import bulk e-commerce merchandise for individual distribution across Canada, France, Germany and the EU.
Shipping Canadian Shopify Orders to the EU
Jet Worldwide is building international shipping solutions for Shopify, Canada's leading e-commerce platform. Building on Jet Worldwide’s decades of Canadian cross-border parcel shipping experience, our team is currently developing Shopify-integrated solutions for shipping to the entire European Union, allowing businesses to “self-fulfill” their orders.
For updates on the latest international shipping solutions for Canadian online orders, connect with Jet Worldwide’s e-commerce team.
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