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Canadian Asian Pacific Free Trade: Realization of Opportunity

Posted on Tue, Jan 22, 2019

The CPTPP Canadian-Asian Pacific Free Trade agreement (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is now a reality! Incredible free trade opportunities are now possible between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

CPTPP received Canadian Approval / Royal Assent and came into force in January 2019 for the first seven countries to have ratified the agreement.

 

Free Trade is now a reality between Australia, Canada, Japan, Mexico, New Zealand, Singapore and Vietnam.

 

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Jet Worldwide provides low cost parcel delivery between Canada, Australia, Japan , Mexico, New Zealand, Singapore, Vietnam and other CPTPP Countries.

 

Under CPTPP provisions, CPTPP origin goods sent via Jet's express parcel service between Canada and other CPTPP can benefit from duty free status.

 

 

 

 

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Under the CPTPP, customs duties have been eliminated on most imports between the participating countries. The duties on some products (primarily agricultural) will be eliminated or phased-out.

 

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Proof of Origin

The key part of all trade agreements is ensuring the goods qualify under the rules of origin. Many incorrectly assume that if goods are sent from a qualifying country, they should qualify for duty free status.   Country of origin is not determined solely by where the goods are sent from.  

 The country of origin rules have been simplified under CPTPP but can still get complex.  The guidelines for country of origin qualification include:  

  • Goods are considered originating if they are wholly obtained, such as goods that are grown, raised, caught, or extracted in Canada /CPTPP country.
  • Goods are considered originating if they are produced in Canada or a CPTPP country entirely from originating materials.
  • Goods are originating if they are produced in Canada/CPTPP country from non-originating materials that undergo production in Canada/ CPTPP country, such that the resulting good satisfies the applicable product-specific rule of origin. The value of the non-originating goods that are part of the originating product can be considered dutiable.

 

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The amazing part of CPTPP is that parcels containing products valued less than CA$1600 do not require a certification of origin to claim CPTPP preferential tariff treatment.

 

  • Parcels containing products under CA$1,600 can be considered for duty free status if the following conditions include:
  • A signed statement completed by the importer, exporter or producer certifying that the goods originated from a CPTPP country
  • This statement is required on the commercial invoice and we recommend adding an additional stand alone statement/ supporting document. See
  • The goods must meet the origin rules. For example, marks to indicate that the goods are not a product of a CPTPP country will disqualify the goods and have issues related to mis-declarations.

 

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With the implementation of free trade agreements in Europe (CETA) and Asia- Pacific (CPTPP),  Jet Worldwide can assist Canadian companies to grow their global supplier and customer base.     

 

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We expect there will be some interpretation issues from various customs authorities as this new agreement becomes operational.

In order to claim the preferential tariff treatment, a set a data elements referred to as a ‘certification origin’ must be provided by the exporter, producer or importer of the goods by adding the information to any document (e.g., Commercial Invoice) accompanying the shipment or if preferred, by providing it on a separate document. The data elements do not have to follow a prescribed format but must contain the minimum data elements listed below. In addition, the imported goods must originate and be exported from a CPTPP ratified country.

 

  1. Indicate the Certifier (Importer, Exporter or Producer)
  2. Name, Address and Contact Information of the Certifier
  3. Name, Address and Contact Information of the Exporter (if different from the certifier)
  4. Name, Address and Contact Information of the Producer (if different from the certifier, or exporter)
  5. Name, Address and Contact Information of the Importer
  6. Description and HS Tariff Classification for the Goods
  7. Origin Criterion for the Goods
  8. Blanket Period
  9. Authorized Signature and Date

 

Note: The certification of origin must be signed and dated by the Certifier and accompanied by the following statement:

“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification”

 

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For full details regarding the minimum data requirements for the certification of origin, please refer to Annex 3-B of the CPTPP agreement.

 

Jet Worldwide Canada provides international parcel delivery solutions between Canada and other CPTPP countries.

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Important Information

  • Commercial goods. Products valued less than CA$1600 do not require a certification of origin to claim CPTPP preferential tariff treatment. Instead, only a signed statement completed by the importer, exporter or producer certifying that the goods originated from a CPTPP country, is required on the commercial invoice or any other supporting document.
  • Casual goods. The country of origin, for goods other than for sale or for commercial use, must be from a CPTPP country and clearly marked on the accompanying commercial Invoice and Air waybill to benefit from the preferential tariff treatment. In addition, there must be no marks to indicate that the goods are not a product of a CPTPP country.
  • CPTPP preferential tariff treatment. Will reduce or eliminate duties but does not affect import taxes. All applicable taxes will be assessed accordingly.
  • Tariff Rate Quotas (TRQ). Quota limits are still in effect for many agriculture products and will differ for each participating country (e.g., personal importations of cheese and some dairy products into Canada are limited to CA$20 per person).

 

 

 

Benefits

  • Improved access for trade. Provides Canadian companies access to key foreign markets that represent over 470 million people and over 13% of the world’s GDP.
  • Increased savings. CPTPP will eliminate or reduce tariffs (duties) on almost all commodities and lessen non-tariff barriers.
  • Streamlined regulation. CPTPP will establish a framework for trade in the Asia-Pacific region that will make it easier for countries to transact business with each other.
  • Foreign Investment. Greater access, stability, transparency and protection for Canadian investors.

 

 

 

 

Additional Resources

Canada Border Services Agency (CBSA) Customs Notice 18-22

Government of Canada website is available for the latest news and information

Canada CPTPP Tariff Rate Quota FAQs

CPTPP Rules of Origin

 

 

 

 

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