International Parcel Delivery | Blog

Shipping to Europe from Canada under CETA: Duty-Free Trade, Logistics, and VAT

Written by Timothy Byrnes | January 06, 2020

Jet Worldwide is assisting Canadian businesses to grow their e-commerce sales and other exports to the EU. The Comprehensive Economic and Trade Agreement (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 for duty-free clearance of orders shipped via parcel express carriers.

EU Opportunities for Canadian Companies

Access to 27 countries and over 400 million consumers

Thanks to CETA, Canadian companies benefit from:

  • Elimination of virtually all tariffs for Canadian-origin goods
  • Duty-free access to all 27 EU member countries
  • Reduced trade barriers and easier market entry
  • Improved logistics and after-sales support opportunities

Expand your cross-border transportation and logistics options. Jet Worldwide has been providing logistics solutions for over 40 years, strengthening transportation teams — even if you are a team of one!

Contact our team for an initial consultation.

Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only.

Download: Accompanying PDF

CETA Rules of Origin Explained

The rules of origin ensure that goods benefiting from preferential tariffs are genuinely made in Canada or the EU.

  • General rules: Require a product to meet a 50% regional value content (RVC).
  • Sector-specific rules: Apply to textiles, chemicals, and automotive products. Example: cars require 55% RVC.

Understanding the difference: Country of shipment vs. Country of origin

Duty-Free Imports & E-Commerce Opportunities

Duty-Free Thresholds

  • Shipments under €150 are imported duty-free, but VAT applies.
  • Canadian-origin goods can qualify for duty-free import regardless of value.

IOSS VAT Solutions

E-commerce shipments under €150 can use the Import One Stop Shop (IOSS) system for simplified VAT collection.

  • VAT charged at point of sale instead of at the border
  • One EU-wide VAT registration instead of multiple country registrations
  • Jet Worldwide provides IOSS registration support

Learn about IOSS VAT payment for EU imports

Logistics Support: Jet Worldwide Advantage

Jet Worldwide helps Canadian businesses with:

  • Direct shipping access to DPD in the EU & UK
  • Local warehousing, order preparation, and last-mile delivery
  • Air freight for speed, ocean freight for large consignments
  • Real-time tracking and customs compliance

Key FAQs About CETA and EU Shipping

Are shipments automatically duty-free under CETA?

No. Goods must meet rules of origin to qualify as Canadian origin. Just shipping goods from Canada does qualify them as originating under CETA rules.

Can I consolidate and ship my e-commerce orders direct to Europe?

Yes. Jet Worldwide offers direct parcel injection services across the EU. This is the lowest-cost, most efficient method for high-volume sellers.

What about VAT?

VAT applies to all shipments. Rates average 20% across EU countries.

Shipping Options from Canada to Europe

  1. Canada Post: Best for small, low-value parcels
  2. Air freight: Fastest option with economy services
  3. Ocean freight: Best for pallets and large orders
  4. Express couriers: FedEx, UPS, DHL for time-critical shipments
  5. Direct EU delivery: Jet Worldwide solutions with prepaid VAT plus duty

Ship Your Goods to Europe from Europe

The best way to build volume to Europe is to develop processes to ship, store and distribute directly within the EU.  Similar to shipping to Amazon Europe but for smaller volumes and to remain independent.  Partner with Jet to explore this option.

Free Trade with the UK (CUKTCA)

Even after Brexit, Canada and the UK maintain preferential duty-free status through the UK-Canada Trade Continuity Agreement (TCA), modeled after CETA.

Useful Guide: Shipping from Canada to the UK

Get a Quote and Grow Your EU Market

Jet Worldwide provides:

  • Expert customs guidance
  • Low-cost e-commerce delivery
  • Air, ocean, and hybrid solutions
  • Compliance support with CETA VAT rules

Conclusion: CETA as a Growth Driver

CETA provides Canadian exporters with unprecedented access to the European Union. From duty-free access to simplified customs and VAT solutions, Canadian companies — large and small — can expand their footprint in one of the world’s largest consumer markets.

Partner with Jet Worldwide

Our experts provide personalized support to ensure your shipments are classified correctly, delivered on time, and fully compliant.

Request a Quote Talk to an Expert