Jet Worldwide is assisting Canadian businesses to grow their e-commerce sales and other exports to the EU. CETA covers virtually all sectors and aspects of Canada-EU trade in order to eliminate or reduce barriers. This translates into real benefits for Canadians and European e-commerce shipping - especially as it relates to duty free clearance of orders shipped via parcel express carriers.
EU Opportunity for Canadian companies
The European Union (EU) presents great opportunities for Canadian companies via duty free CETA access.
Thanks to the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), trade barriers from Canada have been lowered.
Canadian companies benefit from the elimination of virtually all tariffs for Canadian origin goods. to Europe. CETA provides Canadian exporters access to any - and all - of the EU's 28 member countries.
Duty free access for Canada origin goods is especially important for high-value exports and after sales support. CETA’s rules encouraging production and shipping between the EU and Canada.
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only.
Download accompanying PDF
As a group, the 27 European Union members represent Canada’s third largest merchandise trading partner after the United States and China. The EU accounts for around 5% of Canada’s merchandise exports and 11.0% of Canada’s merchandise imports.
The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) has contributed to record growth in two-way merchandise trade between Canada and the EU.
CETA RULES OF ORIGIN EXPLAINED
The Comprehensive Economic and Trade Agreement (CETA) is a trade agreement between the European Union and Canada. Under CETA, rules of origin are used to determine whether a product qualifies for duty-free or reduced-tariff treatment when traded between the EU and Canada.
Basically, the rules of origin under CETA are designed to ensure that origin products are truly "made in EU or Canada".
The rules of origin for CETA are divided into two main categories: general rules and sector-specific rules.
- General rules of origin: These apply to all products not covered by the sector-specific rules. The general rules of origin require that a product must meet a specific regional value content (RVC) percentage. The RVC percentage for CETA is 50%. This means that for a product to qualify for preferential treatment under CETA, it must contain at least 50% of value added from the EU or Canada.
- Sector-specific rules: These apply to certain products that have special treatment under CETA, such as textiles and apparel, certain chemicals, and certain automotive products. These rules specify additional requirements that must be met in order for a product to qualify for preferential treatment.
For example, for textiles and apparel, the sector-specific rule requires that the yarns and fabrics used to produce the product must be produced in the EU or Canada, and that the final product must be cut and sewn in the EU or Canada. Additionally, for automotive products, it requires that they have at least 55% regional value content.
It's important to check if the goods you are shipping already qualify as duty-free to save the administration cost of CETA.
Understanding the difference: Country from where goods were shipped versus country of origin
Import Canadian e-commerce shipments to Europe duty free
Shipments sent from Canada to Europe valued under €150 benefit from duty free import. Shipments that contain Canadian origin goods can be imported duty free to Europe regardless of value.
Are Shipments from Canada imported duty free to Europe under CETA?
Goods that qualify as Canadian origin can be imported duty free to Europe. Preferential duty free import applies to goods that qualify under CETA rules of origin. Just being shipped from Canada does not qualify the goods as Canadian origin.
Can I consolidate and ship my e-commerce shipments direct to Europe?
Jet Worldwide provided direct shipping from Canada for delivery across Europe. Shipping direct offers the lowest cost and best service. To be cost effective, minimum volumes are required for direct shipping.
How can I benefit from shipping ocean to Europe?
Ocean shipping is best for large orders and palletized freight. The transit time averages 1-2 months. Important things to know about ocean shipping to and from Canada.
Can I use DPD in Europe and UK from Canada?
Jet Worldwide provides direct access to DPD Europe and UK direct from Canada and the USA.
VAT Rules for e-commerce Imports to the European Union
IOSS Processes and portal
E-commerce shipments valued under EUR 150 can be imported via One-Stop Shop (IOSS) processes that allow sellers and online marketplaces to charge VAT at the point of sale and remit it directly to the authorities.
- If the IOSS is not used, the VAT will be charged to e-commerce customers by the importing carrier (plus an administrative/ pre-payment fee).
-
The Canadian e-commerce businesses and marketplaces will be able to register for a VAT account in only one EU country. Currently, sellers have to register in each country they sell and ship to.
- Jet Worldwide provides exclusive access to IOSS registration for our clients shipping direct from Canada.
VAT payment for e-commerce orders to EU
For details on IOSS and the otherEU’s VAT rules, visit: Publications Office of the European Union.
EORI Number for Imports to European Businesses from Canada
While e-commerce shipments to individuals can benefit from IOSS process, shipments to businesses are subject to traditional processes with an EORI number being part of the data set required for customs entry.
The EORI number exists out of two parts:
- the country code of the issuing Member State; followed by
- a code or number that is unique in the Member State
Proof of Origin/. Gaining Duty Free to the EU for online orders
A formal certificate of origin is not required under CETA. Preferential duty treatment is based on a declaration that can included on the invoice or any other commercial document that accurately describes the goods.
- For casual goods: (i.e. not for sale or for commercial use), the country of origin must be indicated on the air waybill and any accompanying invoice used for customs declaration.
- For commercial goods: A statement of origin is required on the commercial invoice (or other commercial document) along with a detailed description and unit value of the originating goods.
Contact Jet's parcel logistics team for updates on shipping options direct European Union countries and the EU in general. Jet is building platforms to help Shopify, Bigcommerce and othe platforms for shipping to Europe.
Duty Free for low value online orders shipped to the EU
While orders shipped to Europe valued under €150 (around CA$220) can be imported to teh EU duty free, VAT will be assessed. VAT rates in Europe average around 20%. See section above or...
Verify compliance and payment of VAT for online orders shipped to Europe.
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.
Online marketplaces are deemed the "supplier" responsible for collection of VAT for online orders of up to €150. Contact our team for information on shipping direct and assistance with IOSS registration via Jet.
Free Trade Between Canada and the UK: From CETA to CUKTCA
The UK remains a top European destination even if..... well.. it is no longer officially part of the EU.
Canada and the UK have an agreement to continue the preferential duty-free status enjoyed under the CETA via the UK-Canada Trade Continuity Agreement (TCA).
Useful Guide for Shipping to the UK from Canada
The Most Favoured Nation (MFN) tariff rates of the UK are generally applicable for imports from the Canada. Goods that meet CUKTCA rules of origin can qualify for preferential duty free import to the UK. The MFN tariff rates of the UK apply to goods imported to the UK that do not meet the rules of origin (non-originating goods) under the CUKTCA.
Shipping Canadian Online Orders Direct from YYZ, YUL and YVR
Jet Worldwide has shipping solutions for Canada's leading e-commerce platform. Building on Jet Worldwide’s decades of Canadian cross-border parcel shipping experience, our team enables Canadian businesses to ship directly from their Canadian facilities.
See note above regarding IOSS and VAT payment for e-commerce imports to the EU.
Duty free and hassle free?
The power of CETA is beyond the simple elimination of tariffs and reduces the regulatory burden. For example, Canadian shippers can take advantage of duty free import without a separate certificate of origin. Canadian companies can get preferential duty consideration via a statement of origin on the the shipping documents rather than having to complete a separate certificate of origin.
Setting up distribution for final mile "Euro domestic delivery" i
Thanks to CETA, Canadian firms can establish EU subsidiaries more easily. The new regulations also streamline transfers between firms, making it simple for you to relocate skilled employees from Canada to the EU to perform their work.
Jet Worldwide provides Canadian companies local EU storage and distribution.
Jet Worldwide provides best in class European Canadian logistics. Our support refers to the various systems regarding the Canadian European movement of goods. This can include air freight, storage, last mile delivery and general supply chain management. Our logistics support augments your team by not being beholden to a specific carrier or process. Add industry expertise to your team.
Getting quote and logistics support for shipping between Canada and Europe
The options for shipping freight between Canada and Europe include:
- Canada post options are generally best for individuals shipping personal items to Europe
- Air freight: This is the fastest option with economy air options
- Ocean: Best for large commercial orders
- FedEX , DHL, UPS air options are well known with information readily available via their websites
- Direct zone jumping from Canada to Europe with dedicated import processes and final mile delivery. Best for large volume e-commerce retailers.
We are happy to help find shipping solutions for packages, pallets and e-commerce between Canada and Europe. Provide information regarding the type of goods that will be shipped, projected volume of goods and restrictions or regulations that should be taken into account?
Shipping EU Origin Goods TO Canada
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 us up to $3,300 CAD.
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.
Helpful Link: https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn20-15-eng.html
Sample Certification of origin:
I certify the goods contained on this invoice as qualify under the European Canadian Free Trade Agreement (CETA) as originating from ______________ / EU and that 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.
Note: The information in this blog is for general information only. Confirm your processes with your carrier and regulating authorities prior to shipping
CETA Country of Origin Declaration
As mentioned above, there is not a separate "Certificate of Origin " under CETA but rather a "certification of origin" which can be included on the commercial invoice . If shown on a separate document, the invoice number and other shipping information should be referenced.
The great news for Canadian companies is that they can benefit from duty free CETA even for individual orders shipped direct via courier/ international parcels!
When an invoice lists separate items, the declaration of origin must clearly identify the goods in in which preferential duty treatment is requested. Canada customs/ CBSA recommends that the origin declaration states “Canada/EU” as per footnote 3 of the declaration (see below). It is best to check with the local EU customs importing country to understand their preferences are met.
ANNEX 2 TEXT OF THE CETA ORIGIN DECLARATION
Below is a sample statement of origin for a CETA origin declaration:
(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)
The origin declaration, the text of which is given below, must be completed in accordance with the footnotes below. The footnotes are for reference only and not part of the declaration itself:
- 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 12 months. 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.
- 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.
- “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”.
- These indications may be omitted if the information is contained on the document itself.
- 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 of the signatory
See sample form to declaration of origin (Fillable PDF to download). Note that while the regulations do not mandate a specific format, it is recommended to include both a separate declaration form as well as a certification statement on the invoice (and other shipping documents) to ensure preferential duty free consideration at time of import.
Read More: Understanding a Certificate of Origin and When it is needed
The required origin declaration may be provided on an invoice or any other commercial document which describes the originating product in sufficient detail to enable its identification. In order to claim the preferential tariff treatment, importers must have in their possession the origin declaration completed by the exporter as well as any necessary permits.
It is important to understand that CETA applies to duty assessments. All goods - even those cleared duty free - are subject to taxes (Value Added Tax/ GST/ HST etc). See section above regarding prepayment of VAT for e-commerce orders.
VAT rates in Europe average around 20%. Here are some standard VAT rates to key EU Countries:
- Austria: 20%
- Belgium: 21%
- Denmark: 25%
- France: 20%
- Germany: 19%
- Italy: 22%
- Netherlands: 21%
- Portugal: 23%
- Spain: 21%
Many small companies are surprised to learn that even their Canada origin goods shipped via parcel carriers can qualify for duty free preferential treatment. CETA is designed to help small businesses in Canada and the EU develop closer economic relationships together.
Shipping from Canada to the EU via Jet Worldwide
Jet Worldwide is a trusted brand that has been providing international shipping solutions for over 40 years.
- Jet Worldwide provides options for shipping between Canada and Europe for parcels, pallets and e-commerce last mile solutions (including assistance with IOSS registration for our Canadian clients).
