Post on 12-Oct-2018
CETA: Comprehensive Economic Trade Agreement
Chad Swance, National Project Manager, Customs
CETA
28 EU countries
Duty Free
12 bn.pa EUR/CAD
20% trade boost
• Designed to boost trade
• Strengthen economic relations
• Reduce barriers
• Tariff % decrease & elimination
• Increase employment
Quick Facts
• Trade in goods between CAN-EU was EUR 63.5 bn. 2015
• Machinery, chemicals & transport equipment dominated export
• Mineral products, precious metals were primary imports, followed by machinery and
chemicals
• Value of trade in service sector between EUR-CAN EUR 27.2 bn. 2015
European Union
Quick Facts:
• The only country with preferential access to the worlds two largest economies.
• EU has more fortune 500 companies than anywhere else in the world.
• Overall cost reductions through tariff elimination.
• Projection of additional Canadian investment by both EU & NON-EU companies.
Canada
12 Key Canadian sectors
• Aerospace: EU is the
world’s largest importer
• Agriculture & agri-food:
94% of EU agricultural tariffs
duty free with entry into force
• Automotive: EU Tariffs on
auto-parts immediately
eliminated
• Clean Technologies: CETA
will remove all tariffs on
clean-tech products
• Medical devices: Elimination of all
tariffs.
• Metals, Mining & Minerals:
Aluminum, nickel, copper, lead ,
zinc + other non –ferrous tariffs will
be eliminated on entry into force
• Oil & Gas: Supplier diversification
is one of the EU’s top energy
priorities
• Pharmaceuticals: EU is 24% of
the global pharmaceutical import
market.
• Fish & Seafood: EU is #1
importer of fish & seafood
products $32.2 bn. 2015
• Forestry & wood products:
EU imported $46 bn. in 2015
• Communication
Technologies: Tariffs as high
as 14% will be eliminated
• Infrastructure: EU estimated
at $400 bn. annually, 2nd to
China with the largest
Research & Development Investment Labour Mobility
Legislative Update
• CETA (Bill C-30) has passed the House of Commons
• Second Reading debate is ongoing in Senate
• The committee will begin hearings thereafter. Based on second reading
debate, the committee is seeking a rigorous study to ensure sober second
thought.
• Entry into force could occur mid-summer to early fall.
• EU Countries are starting the process of individually ratifying the agreement
• Increase employment
Trans-Atlantic
Many Routes From Europe, One Solution.
Key Facts KN Canada Sea Logistics
• 64 years of experience
• 10 locations coast to coast
• 11% market share
Key Facts KN Europe Sea Logistics:
• 40 Countries
• 153 Locations
• 2,515 Specialists
What type of product do you Import?
Agriculture or Agrifood Other Automotive Fish & Seafood
Is the HS Code listed in Canada’s CETA Tariff Schedule?
Yes No
Other
Duty Free upon
Entry into Force
Duty Free upon
Entry into Force
Contact K+N Customs
Consulting
Determining Duty after CETA Entry into Force
Rules of Origin :
• Wholly obtained
• Produced exclusively from originating materials
• Undergone sufficient production (the tariff shift rules)
Statement of Origin ( SAMPLE)
European Footwear Example
• Footwear is classified in Chapter 64.
• Because Chapter 64 is missing from the tariff schedule below, it is duty free
upon entry into force.
Implementation Gap
• Generally there is a lag between the Entry into Force date and the CBSA’s
Electronic Commerce Unit input of the new tariff treatment and rates
• CBSA will most likely pass a special Order-In-Council allowing for retroactive
claims for CETA for a prescribed period of time
• KN’s Customs Consulting Group can file for refunds to claim back duty paid
during the lag period
• For more information please contact knc.customs.tsu@kuehne-
nagel.com