Canada's export opportunities have expanded to the east with the European Canadian Free Trade and to the west with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The CPTPP is a free trade agreement between Canada and ten Asia-Pacific / Latin American countries.
The CPTPP provides Canadian companies access to a growing region with a population representing over 13% of the global economy! CPTPP countries include large mature economies such as Japan and Canada as well as high growth economies like Malaysia and Vietnam.
Jet Worldwide Canada provides low cost international shipping from Canada to Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Disclaimer: The information in this blog is for general information only. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.
The CPTPP promotes the idea of easing customs procedures for express shipments. These procedures include the ability of carriers to submit single submissions that consolidate the entry of multiple individual online orders.
Under the CPTPP, the vast majority of customs duties have been eliminated or reduced for Canada-origin goods. Duties on some agricultural goods and on a few other products are being reduced or eliminated during this phase-out period.
The CPTPP eliminates duty on almost all commodities and lessens non-tariff barriers with the following countries.shipping from Canada to Australia
shipping from Canada to Brunei
shipping from Canada to Japan
shipping from Canada to Malaysia
shipping from Canada to New Zealand
shipping from Canada to Singapore
shipping from Canada to Vietnam
It also enhances access to markets where Canada already has a FTA, like:shipping from Canada to Chile
shipping from Canada to Mexico
shipping from Canada to Peru
Certificate of Origin
The goods news is that under the CPTPP a claim for preferential duty treatment does not require a separate Certificate of Origin (COO). Under the CPTPP, a statement of origin requesting preferential treatment can be made on any document, including the commercial invoice
Canadian companies can take advantage of preferential duty free clearance shipping to and from CPTPP countries with a statement on the commercial invoice.
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. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities. 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.
Proof of origin to CPTPP countries
In order to claim preferential tariff treatment, the imported goods must originate and be exported from a CPTPP ratified country.
Necessary data elements for a certification origin must be provided by the exporter, producer or importer of the goods by adding the information to any shipping document (most commonly on the Commercial Invoice).
Data elements required for a CPTPP certification of origin include:
- Indicate the certifier (importer, exporter or producer)
- Name, address and contact information of the certifier
- Name, address and contact information of the exporter (if different from the certifier)
- Name, address and contact information of the producer (if different from the certifier, or exporter)
- Name, address and contact information of the importer
- Description and HS tariff classification for the hoods
- Origin criterion for the goods
- Blanket period
- Authorized signature and date
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”
For full details regarding the minimum data requirements for the certification of origin, please refer to Annex 3-B of the CPTPP agreement.
Proof of origin requirements under Canada's free trade agreements
The requirement for proof of origin is waived for imports to Canada not exceeding CAN$3,300. This change was made in July 2020 to harmonize the regulations with the new NAFTA/CUSMA and applies to all of Canada's Free Trade Agreements (including the CPTPP). The requirement on the importer to maintain records (for example, a commercial invoice or 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.
- Commercial goods: Products valued less than US$1,000 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 not for sale or commercial use, must be from a CPTPP country and clearly identified on any accompanying supporting documents (e.g., 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.
- Tariff Rate Quotas (TRQ): Quota limits are still in effect for many agriculture products including personal importations.
- Duty free ≠ Tax free: Import taxes (commonly known as VAT) will still be assessed for all imports, including those given preferential duty consideration. Here are some standard tax rates to CPTPP Countries:
- Brunei: N/A
- Mexico: 16%
- Australia: 10%
- Singapore: 7% (GST)
- Japan: 10 % (consumption tax)
- Peru: 18% (including 2% municipal tax)
- New Zealand: 15% (GST)
- Malaysia: 6% (SST)
- Vietnam: 10%
- Chile: 19%
CBSA and other resources
- Canada Border Services Agency (CBSA) Customs Notice 18-22
- Canada CPTPP Tariff Rate Quota FAQs
- CPTPP Rules of Origin
Reminder: The information in this blog is for general information only. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.