CARM: What all importers need to know about CARM

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What you need to know about the Canada-EU Free Trade Agreement

Timing – The Canada-EU Free Trade Agreement, formally known as CETA, was provisionally implemented on September 21st.

Impact – 98% of the commodities traded between Canada and the EU are immediately duty free with the required Origin Declaration.

Registration – EU exporters must register on the REX System to issue unsigned Origin Declarations.

Proof of Origin – The required proof of origin is an Origin Declaration, which can be found in Annex 2 of the Protocol on Rules of Origin and Origin Procedures, along with the various languages which can be used to complete the declaration.  An Origin Declaration may be provided on an invoice or any other commercial document, including company letterhead, that describes the originating product in sufficient detail to enable its identification.

Blanket Declarations (valid for a 12 month period) – may be made on the exporter’s letterhead as long as all applicable wording is included and a detailed list of qualifying goods is provided.

Preferential Tariff Treatment – allowed if the CETA importer has an Origin Declaration completed by the exporter in the EU country or other CETA beneficiary of export, as well as any necessary permits referred to in paragraph 8.

Shipping Requirements – Goods may be shipped from an EU country or other CETA beneficiary, with or without transshipment, to Canada.  The transshipment conditions are contained in Article 14 of the Protocol on Rules of Origin and Origin Procedures.

Refunds – An application for a refund under paragraph 74(1)(c.11) of the Customs Act may be made within four years from the date the goods were accounted for under subsections 32(1), (3), or (5), provided the goods were imported on or after September 21, 2017.

Provisional Application – If a member country has not completed its domestic ratification process, CETA tariff treatment can still be applied as of September 21st to originating goods.

UK – CETA will apply to goods from the UK until Brexit comes into force.

Origin Declaration Without Exporter’s Customs Authorization Number – If an EU exporter elects to leave Field 2 blank, then Field 5 must be completed (i.e. contain the exporter’s signature) to gain validation by the CBSA.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

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