- Canadian dollar (Can$)
- Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
- European Union (EU)
Quick facts
With CETA's provisional application, almost 94% of the EU agricultural tariff lines are now duty-free, including tariff lines for specialty products such as vitamin-infused water, maple water and energy drinks.
Canadian exports of non-alcoholic beverages to the EU: Can$26.2 million (2019). (Source: CatsNet)
In 2019, Canada was the largest exporter of cranberry juice to the EU. (Source: Global Trade Tracker)
As of September 21, 2017 (CETA’s date of provisional application, the elimination of EU tariffs will help Canadian producers, processors and exporters to be more competitive in the EU. Some Canadian non-alcoholic beverages were subject to tariffs as high as 33.6 %. Previously, approximately 18% of European Union (EU) agriculture tariff lines were duty-free.
Examples of products that will be duty-free following provisional application:
| Product (illustrative list only) | EU tariffs have been as high as: |
|---|---|
| Concentrated Grape Juice | 22.4% + 131 euros/hl + 20.6 euros/100 kg |
| Non-alcoholic Beverages Containing Milk | 5.4% + 21.2 euros/100 kg |
| Certain Fruit Juices (for example, Blueberry and Cranberry) | 17.6% |
| Apple Juice | 30% + 18.4 euros/100 kg |
| Carbonated/Mineral Water | 9.6% |
| Kilogram (kg)
Hectolitre (hl) |
|
Classifying a product
To determine whether your product qualifies for preferential duty-free access now that CETA is provisionally applied, you can seek an advanced ruling through the EU’s Binding Tariff Information (BTI) system, which provides Canadian exporters with the opportunity to obtain a binding, written ruling concerning the tariff classification of their product prior to export.
This provides exporters with assurance regarding the tariff classification that their product will receive, as well as further guidance and information regarding the rule of origin that the products must satisfy in order to benefit from preferential tariff treatment under CETA.
Rules of Origin
Under CETA, only those products that undergo sufficient production in Canada or the EU are considered originating products and are therefore eligible for preferential tariff treatment. Canadian non-alcoholic beverages produced from inputs that are wholly obtained (that is grown and harvested) in Canada or the EU are considered originating and will benefit from preferential tariff treatment.
Canadian non-alcoholic beverages that are produced from non-originating (that is imported) inputs must satisfy the applicable product-specific rule of origin (CETA, Annex 5 of the Rules of Origin Procedures Protocol) in order to be considered originating. Canadian exporters can seek an EU Binding Origin Information (BOI) advance ruling on whether a product qualifies as originating under CETA. These rulings are binding on customs authorities in all EU Member States.
For example, for products classified under Harmonized System (HS) code 2202.10, the net weight of non-originating:
- Sugar used in production cannot exceed 20% of the net weight of the product, and
- Chapter 4 materials (dairy, honey, eggs) used in production cannot exceed 20% of the net weight of the product.
Origin Quota
Canadian producers of certain juices (blueberry and cranberry) may also benefit from preferential tariff treatment under CETA through the alternative rules of origin associated with the Origin Quotas established under CETA.
For Canadian producers of certain processed products that contain non-originating materials/ingredients in amounts that exceed the prescribed thresholds, CETA sets out volume-limited Origin Quotas (Annex 5A: Table A.3 of the Rules of Origin Procedures Protocol). For more information, please visit: Global Affairs Canada Notice to Exporters webpage.
Exporting to the European Union
Other requirements may apply (for example, labelling, packaging, additives allowed) so make sure you are aware of them.
Learn more at: Exporting your agri-food to the EU.
Get help navigating the market
Contact a Trade Commissioner in your export market or the Market Access Secretariat: aafc.mas-sam.aac@agr.gc.ca.