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