Peru ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Agreement and entitlement on September 19th, 2021. As a result, eligible Peruvian goods imported into Canada are entitled to the CPTPP tariff treatment as of September 19th, 2021. This is good news for importers of Peruvian goods because their tariffs will decrease.
The CPTPP is an ambitious and high-standard free trade agreement covering virtually all aspects of trade and investment, with high market-access commitments in trade in goods, services, investment, labour mobility and government procurement. This FTA eliminates tariffs and reduces barriers for 98% of exports to CPTPP member countries.
Peru joins Australia, Canada, Japan, Mexico, New Zealand, Singapore, and Vietnam as the eighth implementing party of the agreement. Brunei, Chile, and Malaysia have not yet ratified the deal. Countries seeking to join this trade pact currently include China, Taiwan, and the UK.
The CBSA announcement in Customs Notice CN21-23 advises on the implementation to amend the Customs Tariff to reflect the change. Eligible Peruvian goods imported into Canada are entitled to the CPTPP tariff treatment and requests for refunds of duties may be presented for eligible goods that were imported on or after September 19th, 2021.
The list of countries in the Canadian Customs Tariff has been updated to include the CPTPP tariff treatment for Peru. CBSA system changes took effect in the Customs Commercial System (CCS) on January 5th, 2022.
Entitlement to the CPTPP tariff treatment is determined in accordance with the rules of origin and origin procedures set out in Chapter 3 of the TPP (TPP being the original name of the trade agreement when it was first drafted).
The required proof of origin is referred to as a certification of origin and can be presented on any document provided that it contains the following: specifies in writing that the goods originate, meets the requirements of Chapter 3 and contains a set of minimum data requirements, as set out in in Annex 3-B of Chapter 3.
Under the CPTPP, importers, exporters or producers of CPTPP-eligible goods may complete the certification of origin. In order to claim the preferential tariff treatment accorded under the CPTPP, importers must have the certification of origin in their possession.
Tariff elimination information for the remaining CPTPP countries Brunei, Chile and Malaysia will be made available once those countries ratify the Agreement.
For more tariff related information, please refer to Tariff elimination for Peru at: About tariff elimination under the CPTPP.
Additional Resources
Global Affairs information on CPTPP partner: Peru
Order Amending the Schedule to the Customs Tariff (Extension of a CPTPP Tariff to Peru)