CARM: What all importers need to know about CARM

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You have questions about the new trade agreement between Canada and the European Union. We have answers!

     CETA

The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA), provisionally implemented on September 21, 2017, makes almost all (98%) goods traded between Canada and EU countries duty free. 

Learn more about what it may mean for your business by reading the following frequently asked questions.

Q. Can a CETA origin declaration be provided as a “blanket” declaration?

A. Yes, the declaration may be completed as a “blanket” for a period of no more than 12 months. It must provide the complete declaration wording and include a list of qualifying goods.

Q. Can the CETA origin declaration state goods are of EU preferential origin?

A. No, the origin declaration must specifically state the goods are of Canada/EU preferential origin.

Q. Can the CETA tariff treatment be applied to goods from countries where the Agreement has not yet been ratified?

A. Yes, the CETA tariff treatment can be applied, as of September 21, to originating goods even though that particular EU member country may not have completed their domestic ratification process.

Q. Does CETA apply to/from goods from the UK?

A. Yes, but only until Brexit comes into force.

Q. What is the CBSA’s position or policy in situations where the Origin Declaration does not indicate the exporter’s customs authorization number? Will CBSA still recognize the Origin Declaration as adequate proof of origin for the Canadian importer to claim the benefits of CETA?

A. Field 5 of the origin declaration may be left blank if the exporter in the EU provides a Registered Exporter Number in Field 2 of the origin declaration. If no number is provided in Field 2 of the origin declaration, the signature of the exporter must be provided in Field 5. Put simply, placing an REX or Business Number in Field 2, eliminates the need to sign the declaration.

Q. Does a statement of origin on the EU exporter’s letterhead constitute a statement of origin, as per paragraph 2 of Article 18?

A. Yes, provided the EU company letterhead document contains the origin declaration and describes the originating product in sufficient detail to enable identification.

Q. Can refund claims be filed if a CETA origin declaration is obtained post-import?

A. Yes, a refund claim to obtain CETA originating status may be obtained from the CBSA up to 4 years from the date of import to Canada (back to a maximum of the provisional implementation date of September 21, 2017).

Q. Does CETA apply to goods shipped prior to September 21, 2017?

A. CETA would apply to goods imported (i.e. customs released) on/after September 21, regardless of shipping date, as long as the exporter provides a valid CETA origin declaration.

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

Quick Tip #16
Ensure basic information is completed on all commercial invoices

The commercial invoice is the basis for the Canadian customs entry and determines any applicable duties and taxes. Ensuring proper information is included is vital for the accurate processing of your shipment. The following information should always be shown:

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