CARM: What all importers need to know about CARM

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CPTPP free trade agreement effective December 30th

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has now been ratified by seven signatories and will become effective in Canada, Australia, New Zealand, Japan, Mexico and Singapore on December 30th and Vietnam on January 14th.
Canada is now the only G7 country with trade agreements with all other members of the G7. 

The 11 CPTPP participating countries are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, but the deal has yet to be ratified in Brunei, Chile, Malaysia and Peru as yet.

There was an economic incentive to have six countries on board by December 31st, as some of the CPTPPs tariff cuts are immediate, but others, including the most sensitive agricultural and automotive products, will be phased out over timelines of a decade or more.

The CBSA issued their CPTPP Implementation Customs Notice 18-22 on December 5, 2018, along with Regulatory Amendments issued under Customs Notice 18-27 on December 27, 2018.
Duty Elimination Schedule
As soon as the agreement comes into force, 90% of tariffs on goods will be duty free.  The Staging category for Canada is from implementation date to phase-in period to 12-year time frame duty reductions to duty free status.
Please refer to the Tariff Elimination Schedules for each country and the full text of the agreement.

Rules of Origin
Entitlement to the CPTPP tariff treatment is determined in accordance with the rules of origin set out in Annex 3-D of Chapter 3 of the CPTPP.

Proof of Origin
The required proof of origin is referred to as a certification of origin and consists of a set of data elements contained in Annex 3-B of Chapter 3, that may be placed on any document.  Additional information concerning the CPTPP certification of origin is contained in Article 3.20 of Chapter 3.

Under the CPTPP, importers, exporters or producers of CPTPP eligible goods may complete the certification of origin.  In order to claim the preferential tariff treatment accorded under the CPTPP, importers must have the certification of origin in their possession.

For more information visit the FAQs issued by Global Affairs Canada or contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs

Quick Tip #29
Cargo Liability versus Cargo Insurance

Don’t make the mistake of assuming that Cargo Liability and Cargo Insurance are the same thing. They are not.

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