Canada Border Services Agency (CBSA) published three customs notices regarding the Canada-UK Trade Continuity Agreement that became effective 1 April 2021.
Customs Notice CN 21-06 Amendments to the Departmental Consolidation of the Customs Tariff
Customs Notice 21-07 Implementation of the Canada-United Kingdom Trade Continuity Agreement
The three notices reflect the changes, amendments, and proposed regulations.
Effective 1 April 2021, the Canada- UK Free Trade Agreement (UKT) was implemented to the Customs Tariff. United Kingdom includes Isle of Man, Gibraltar, Channel Islands as qualifying under the UKT as updated in the List of Applicable Countries and Tariff Treatments. There will be a new tariff treatment code introduced at a later date as per CBSA.
CBSA has published Customs Tariff Amendment T2021-3 to add United Kingdom Tariff (UKT) tariff to the preference tariff and the applicable tariff rates and is available on CBSA’s website.
Customs Notice 21-06 provides detail on the accounting procedures for good qualifying under the CUKTCA tariff preference. Introducing two new Order-in -council numbers. A Special Authority Code number 21-1-85 in order to benefit from the correct duties and textile and apparel products that are eligible for import under the CUKTCA Origin Quotas qualifying for P.C. number: 2021-241.
For more information concerning CUKTCA Origin Quotas for textile and apparel products and associated permit requirements, consult Notice to Importers Serial No. 1037 Textiles and Apparel for Import to Canada from the United Kingdom under the Canada-UK Trade Continuity Agreement published on the Global Affairs Canada website.
Proof of Origin
Entitlement to the tariff benefits offered under the CUKTCA is determined in accordance with the Protocol on Rules of Origin and Origin Procedures of CETA, as incorporated by reference in the CUKTCA.
The required proof of origin is referred to in the CUKTCA as the “origin declaration”. This origin declaration may be provided on an invoice or any other commercial document which describes the originating product in sufficient detail to enable its identification. It should be completed in English or French and is contained in Annex 2 of the Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in the CUKTCA.
To claim the preferential tariff treatment afforded under the CUKTCA, importers must have in their possession the origin declaration completed by the exporter in the CUKTCA beneficiary of export, as well as any necessary permits.
Shipping Requirements
Goods may be shipped from a CUKTCA 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 of CETA as incorporated by reference in the CUKTCA and in the CUKTCA Tariff Preference Regulations.
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), in respect of goods that were imported on or after April 1, 2021. Tariff Item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations, Refund of Duties Regulations, Proof of Origin of Imported Goods Regulations,
Proposed Regulatory Amendments and Proposed New Regulations Related to the Implementation of the Canada – United Kingdom Trade Continuity Agreement
Custom Notice 21-08 advises of proposed amendments and new proposed regulations by CBSA.
List of Proposed Amendments and New Regulations:
The Certification of Origin of Goods Exported to a Free Trade Partner Regulations,
Exporters’ and Producers’ Records Regulations,
Free Trade Agreement Advance Rulings Regulations,
Proposed New Regulations- New Regulations regarding the Verification of Origin of Exported Goods under CUKTCA,
New Regulations regarding the Verification of Origin of Imported Goods under CUKTCA,
This announces the regulatory amendments and new regulations proposed by the Canada Border Services Agency (CBSA) in support of the implementation of the Canada-United Kingdom Trade Continuity Agreement (CUKTCA). It is proposed that these regulatory amendments and new regulations come into force on April 1, 2021, on condition that His Excellency the Administrator of the Government of Canada in Council makes them.
Implementation information relating to the CUKTCA can be found in Customs Notice 21-07, Implementation of the Canada – United Kingdom Trade Continuity Agreement.
The proposed new regulations and regulatory amendments announced in this Customs Notice will be made in accordance with paragraph 167.1(b) of the Customs Act.
Proposed Regulatory Changes
Certification of Origin of Goods Exported to a Free Trade Partner Regulations
It is proposed that section 3 of the Certification of Origin of Goods Exported to a Free Trade Partner Regulations be amended to provide that when goods are exported from Canada to a CUKTCA beneficiary, the certificate be completed in English or French.
Exporters’ and Producers’ Records Regulations
It is proposed that the definition of “advance ruling” set out in the Exporters’ and Producers’ Records Regulations be amended to include reference to the advance ruling provisions of the Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in the CUKTCA.
Free Trade Agreement Advance Rulings Regulations
With respect to the modification or revocation of an advance ruling, it is proposed that subparagraph 14(a)(vi) of the Free Trade Agreement Advance Rulings Regulations be amended to include both reference to goods exported from a CUKTCA beneficiary and reference to Article 2.10 of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) as incorporated by reference in the CUKTCA. It is also proposed that paragraph 14(b) of the Regulations be amended to include a reference to goods exported from a CUKTCA beneficiary and that a new subparagraph be added to that paragraph in order to reference an interpretation agreed to by Canada and a CUKTCA beneficiary regarding Chapter Two of the CETA or the Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in the CUKTCA. It is further proposed that paragraph 14(h) of the Regulations be amended to include a new subparagraph to the effect that an advance ruling can be modified or revoked in order to conform to a modification of the provisions of Chapter Two of the CETA or the Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in the CUKTCA.
Tariff Item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations
It is proposed that paragraph 2(b) of the Tariff Item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations be amended to include reference to CUKTCA beneficiaries such that proof of exportation of the goods to a CUKTCA beneficiary be required when accounting for the goods under section 32 of the Customs Act.
Refund of Duties Regulations
It is proposed that the title to Part 5.1 of the Refund of Duties Regulations be amended to make reference to CUKTCA beneficiaries. It is also proposed that section 23.1 of the Regulations be amended to the effect that Part 5.1 of the Regulations applies to the granting of a refund of duties paid on goods imported from a CUKTCA beneficiary on or after April 1, 2021, and for which no claim for preferential tariff treatment under the CUKTCA was made at the time the goods were accounted for under subsection 32(1), (3) or (5) of the Customs Act. It is further proposed that paragraph 23.3 of the Regulations (respecting the amount of refund of duties) be amended, in paragraph (b), to refer to the preferential tariff treatment afforded under the CUKTCA.
Proof of Origin of Imported Goods Regulations
It is proposed that the Proof of Origin of Imported Goods Regulations be amended in order to:
- (a) require the importer or owner of the goods, for which the benefit of preferential tariff treatment under the CUKTCA is claimed, to furnish to an officer, at the times set out in section 13 of the Regulations, as proof of origin for the purposes of section 35.1 of the Customs Act, a Certificate of Origin for the goods that is completed in English or French;
- (b) exempt the importer and owner of goods from the requirements of subsection 35.1(1) of the Customs Act if the importer or owner furnishes to an officer, at the time prescribed by paragraph 13(a) of the Regulations, a written and signed declaration, in English or French, certifying that the goods originate in a CUKTCA beneficiary and that a completed Certificate of Origin is in the importer’s possession;
- (c) exempt the importer and owner of casual goods for which the benefit of the preferential tariff treatment afforded under the CUKTCA is claimed, from the requirements of subsection 35.1(1) of the Customs Act, if the casual goods are entitled to preferential tariff treatment under the CUKTCA in accordance with the CUKTCA Rules of Origin for Casual Goods Regulations;
- (d) exempt the importer and owner of commercial goods for which the estimated value for duty does not exceed $3,300, and for which the benefit of preferential tariff treatment afforded under the CUKTCA is claimed, from the requirements of subsection 35.1(1) of the Customs Act if the goods do not form part of a series of importations that are undertaken or arranged for the purpose of avoiding the requirements of subsection 35.1(1) of the Customs Act;
- (e) provide that a Certificate of Origin may apply in respect of a single importation of a good or in respect of two or more importations of identical goods, imported by the same importer, that occur within a period not exceeding 12 months, as specified by the exporter in the Certificate of Origin; and
- (f) provide that a Certificate of Origin may be accepted as proof of origin for four years after the day on which it was completed.
Proposed New Regulations
New Regulations regarding the Verification of Origin of Exported Goods under CUKTCA
The new regulations regarding the verification of origin of exported goods under CUKTCA are being proposed in order to implement Articles 26 and 29 of the Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in the CUKTCA. The regulations will set out methods, other than a verification visit, that may be used to verify the originating status of goods exported from Canada to a CUKTCA beneficiary. These methods will be the review of a verification questionnaire completed by the exporter or producer of goods, the review of the written response of the exporter or producer to a verification letter, or the review of other information received by the exporter or producer of the goods or by the producer or supplier of a material used in the production of the goods. These regulations will also set out what premises or places may be entered for the purpose of a verification visit. They will indicate that a verification visit may only be conducted if a written notice of intention to conduct the visit has been sent. They will also specify the way that certain documents are to be provided.
New Regulations regarding the Verification of Origin of Imported Goods under CUKTCA
The new regulations with respect to the verification of origin of imported goods under CUKTCA are proposed by the CBSA to implement Articles 26 and 29 of the Protocol on Rules of Origin and Origin Procedures of CETA as incorporated by reference in the CUKTCA. The regulations will describe the method for sending verification requests and provide for the review of the reports received in answer to these requests, as well as for the review of any relevant supporting documents received.
The CUKFTA agreement details is found on Global Affairs webpage Canada-UK Trade Continuity Agreement (Canada-UK TCA).