The Canadian economy will get a boost from the implementation of the CP-TPP. The CP-TPP is a new trade agreement that Canada shares with 10 other countries that account for over 13% of the world’s economic output. The CP-TPP gives Canadian firms preferential access to a customer base of nearly half a billion people. The size of the CPTPP is comparable to Canada’s trade deal with the European Union, which came into effect in September 2017.
Companies of all sizes - shipping parcels to pallets - can take advantage of duty free access shipping from Canada to all CP-TPP countries.
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One of the biggest benefits of the CPTPP free trade agreement is that is easier to benefit from preferential duty free import both from Canada and TO Canada from CPTPP countries. See section below on even easier origin declaration requirements for lower value imports to Canada from CPTPP countries.
The CPTPP gives Canadian companies preferential access to:
The CPTPP and CETA put Canada in a unique position with the world's largest trading regions. With exploratory talks with China and India promising even great possibilities.
Of the 11 countries in the pact, Canada already has free-trade agreements with three – Chile, Mexico and Peru.
The largest beneficiaries fo CPTPP of Canadian sectors include agricultural products, processed food, wood products, automotive, transport equipment, industrial machinery and business services.
Jet Worldwide helps Canadian companies access CPTPP countries
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CPTPP: A great opportunity For Canadian businesses
CP TPP is a reflection of the new trend in free-trade agreements. The agreement addresses the services that include architecture, engineering, environmental services, research and development. Perhaps most different is that it addresses intellectual property (IP) protections, such as the inclusion of the digital economy and protection for the IP of companies going into new markets.
Besides great opportunities in the regions largest economies (Japan), the smaller economies present impressive growth rates as great as seven percent. Canadian companies will gain access to markets that were previously off limits due to regulations, duties and other trade barriers.
The CPTPP removes some tariffs and clarifies ways to settle trade disputes. However, the agreement are filled with nuances and exemptions. Although there is a shared framework, there are unique aspects to each of the 10 countries bordering thePacific rim.
Jet can help companies send smaller "parcel samples" to prepare and understand the clearance processes in advance of larger ocean freight shipments.
(a) Provide a description of the good and the HS tariff classification of the good to the 6-digit level. The description should be sufficient to relate it to the good covered by the certification; and
(b) If the certification of origin covers a single shipment of a good, indicate, if known, the invoice number related to the exportation.
Individual orders shipped FROM CPTPP Countries TO Canada
Canadian companies can more easily take advantage of duty free clearance from a CPTPP Country.
Proof of origin requirements TO Canada: Low Value Exception
The value for duty amount for all of Canada's free trade agreements (including CPTPP) 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.
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.