The European Union are seeing a great benefit from their free trade agreement.
A great advantage of CETA - and most modern trade agreements - is in how it makes is easier for small businesses to get the benefits. Of particular interest is in the easier "certificate of origin" processes that allow Canadian companies to ship parcels to Europe and get duty free access to the entire EU market.
Canada's Modern trade agreements move beyond simple reduction of tariffs with the goal of making global trade easier for small and medium sized businesses. Jet has helped many small businesses take advantage of duty free import to their E.U. customers and many are surprised at how accessible free is.
Ship Direct from Canada to DPD Europe via Jet Worldwide
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only and is not intended to, constitute legal and/or tax advice. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is”; no representations are made that the content is error-free.
Free Trade Between Canada and the UK: From CETA to TCA
Canada and the UK have an agreement to continue the preferential duty-free status enjoyed under the CETA following Brexit via the UK-Canada Trade Continuity Agreement (TCA).
Shipping Online orders Direct from Canada to EU
Canadian sellers can benefit from both duty free import under CETA and prepaid VAT for online orders. Contact our teamfor information on shipping direct and assistance with IOSS registration via Jet.
The Trade deal between Europe and Canada (CETA) Explained
With over 95% of the CETA agreement now in force, the ease of administrative processes are proven Canadian companies can now send qualifying goods duty free with simple ways to request preferential duty free import to the EU.
Canada’s Most Favoured Nation (MFN) tariff rates are generally applicable to European imports from Canada. Goods imported to Europe that meet The Comprehensive Economic and Trade. Agreement (CETA) rules of origin can benefit from preferential duty free import. The MFN tariff rates of E.U. members apply to imported goods from Canada that do not meet the rules of origin (non-originating goods) under CETA.
Jet Worldwide provides low cost shipping to EU countries including France, Germany, Spain and provides E.U. import, storage and distribution services.
What is the impact beyond tariff reductions?
The virtual elimination of tariffs between Canada and the European Union are creating additional GDP growth in key economic sectors that include agriculture, auto and pharmaceutical industry.
Under CETA provisions, qualifying goods can be declared on the commercial invoice - greatly simplifying the ability for Canadian companies to offer lower costs to European markets. See wording below.
CETA designed to facilitate international trade between the EU And Canada. Contact our Euro-Canadian Team for information on shipping parcels to the EU
Non-TariffCanadian Benefits of CETA include:
- Canadian and European mutual recognition of professional accreditations for architects, accountants and engineers,
- Easing of requirements for citizenship, residency and inter-company transfers
- Ownership and investment restrictions
- Clarified regulations between Canada and the EU on intellectual property rights
- European and Canadian companies gain the right to bid on Canadian and European municipal contracts respectively (see section below on inter-provincial trade)
- Greater flexibility regarding 'rules of origin' regarding automobiles and auto parts
- Easier origin declaration for duty free import of online orders
European orIgIn goods shipped FROM EU Countries TO Canada
Canadian companies can more easily take advantage of duty free clearance from an EU Country.
Proof of origin requirements under Canada's free trade agreements
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.
Expected benefit to GDP growth in Canada and EU
As noted above, in an era that tariffs have already trended down to low levels, estimates of the expected benefit to GDP range have been modest: The growth in Canada's GDP from full implementation of CETA range from aslow as 0.3% to more than 0.5%.
Canadian companies can easily ship to France, Germany, Italy Spain and all EU Countries to take advantage of duty free import without a separate certificate of origin.
See section above on the UK Canada TCA. Companies are diverting their logistics from the UK to the European continent. Contact our team to get information on EU based import, warehousing and distribution.
CETA has helped open up Canadian inter-provincial trade:
The provincial governments of Canada are actively working together to ensure out of province Canadian businesses will have access to provincial public markets that are at least as favourable as those granted to European companies in CETA.
Canada and EU: Incredible Opportunity
CETA has been received as a positive note in an era of anti-globalization. The benefits of the Canadian European free trade pact are being realized as more Canadian companies can offer competitive products and services to European customers.
Regarding duty free eligibility under CETA:
Country origin rules are associated with factors used to determine if the product is eligible for preferential duty free treatment under CETA.
As mentioned above, CETA rules don’t require a formal certificate in order to obtain tariff benefits. A declaration on the invoice or any other commercial document accompanying the shipment is enough.
The CETA country of origin declaration has a specific wording, which is fairly straight forward (check with up to date regulations before shipping).
Required CETA country of origin declaration can include the following:
The CETA origin declaration to (EU Country) from Canada wording must include the following wording. Footnotes are provided for explanation (but do not meant to be included in the required wording). The origin declaration, the text of which is given below, must be completed in accordance with the footnotes (see below).
(Period: from___________ to __________(1))
The exporter of the products covered by this document (customs authorization No ...(2)) declares that, except where otherwise clearly indicated, these products are of ...(3) preferential origin.
…………………………………………….............................................(4) (Place and date)
...……………………………………………..............................(5) (Signature and printed name of the exporter)
CETA Footnotes:
These notes are used to explain the fields required above. They do not have to be included in the actual origin statement.
(1) When the origin declaration is completed for multiple shipments of identical originating products within the meaning of Article 19.5, indicate the period of time for which the origin declaration will apply. The period of time must not exceed 12months. All importations of the product must occur within the period indicated. Where a period of time is not applicable, the field can be left blank.
(2) For EU exporters: When the origin declaration is completed by an approved or registered exporter the exporter's customs authorization or registration number must be included. A customs authorization number is required only if the exporter is an approved exporter. When the origin declaration is not completed by an approved or registered exporter, the words in brackets must be omitted or the space left blank. For Canadian exporters: The exporter's Business Number assigned by the Government of Canada must be included. Where the exporter has not been assigned a business number, the field may be left blank.
(3) "Canada/EU" means products qualifying as originating under the rules of origin of the Canada-European Union Comprehensive Economic and Trade Agreement. When the origin declaration relates, in whole or in part, to products originating in Ceuta and Melilla, the exporter must clearly indicate the symbol "CM".
(4) These indications may be omitted if the information is contained on the document itself.
(5) Article 19.3 provides an exception to the requirement of the exporter's signature. Where the exporter is not required to sign, the exemption of signature also implies the exemption of the name
- EU Parcel delivery and logistics for e-commerce
- Canada Delivery for European e-commerce to Canada
- Canada Reverse logistics for EU online returns
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.
Contact our team for information on shipping direct and assistance with IOSS registration via Jet.
jetworldwide.ca
