Canada-European Union Comprehensive and Economic Trade Agreement (CETA): Frequently Asked Questions

Which products are eligible to benefit from CETA tariff elimination?

CETA entered into provisional application on September 21st, 2017. As of that date, 94% of EU tariff lines for agricultural products and 96% of EU tariff lines for fish and seafood were eliminated.

Canadian and EU tariff lines that were not subject to immediate duty elimination are subject to tariff phase-out periods. CETA tariff schedules only list products that are subject to such phase-outs. If a product is not listed in one of the Agreement's tariff schedules, it is now subject to duty-free tariff treatment.

For further information on CETA tariff preferences and phase-out staging categories, consult: CETA Annex 2-A: Tariff Elimination and CETA Annex 2A: Tariff Schedule of the European Union.

What are rules of origin and origin procedures?

Rules of origin specify the amount of production that must be undertaken on a product in Canada, or the EU, for it to be considered “originating” and eligible for CETA’s preferential tariff treatment.

Origin procedures are used to administer the rules of origin and enable the trade community to take advantage of the preferential tariff treatment afforded under CETA.

The rules of origin and origin procedures under CETA are set out in the CETA protocol on rules of origin and origin procedures.

How do I determine if my product qualifies under the CETA product-specific rules of origin (PSRO)?

Products wholly obtained in Canada

Wholly obtained products are considered originating and are eligible for preferential tariff treatment under CETA. Examples include:

meats obtained from animals born, raised, and slaughtered in Canada
grains, fruits and vegetables grown and harvested in Canada
products of aquaculture raised in Canada
fish, shellfish and other marine life taken, trapped or fished in Canada

More information is available in the CETA protocol on rules of origin and origin procedures: Article 4 – Wholly obtained products.

Products produced in Canada using non-originating materials

Agricultural products that are produced in Canada using non-originating materials (e.g. ingredients imported from third countries, such as the United States) may be eligible for preferential tariff treatment under CETA. These products must satisfy the applicable CETA product-specific rules of origin (PSROs), which specify how much production must be undertaken for them to be considered originating. PSROs are provided in the CETA protocol on rules of origin and origin procedures: Annex 5 – Product-specific rules of origin.

The PSROs are generally based on either, or both, of the following two factors:

Change in tariff classification that specifies the change that must occur when non-originating ingredients are used to make a product. This type of rule of origin relies on classification of goods under the Harmonized System (HS).
Weight- or value-based restrictions on the use of certain non-originating ingredients (e.g. dairy, sugar, meat, grains).

For example, a PSRO that requires “a change from any other heading” means that any non-originating materials may be used in the production of a product, provided that they are classified in an HS heading other than that of the final product itself.

Determining if products produced in Canada using non-originating materials qualify under the CETA

To determine if products using non-originating materials can benefit from CETA you must:

1. Identify your product's Harmonized System (HS) code at the 6-digit level. This can be done by using one of the following resources:

2. If you are unclear about which HS code fits your product, you can apply for a Binding Tariff Information (BTI) decision on the HS classification of the product through the EU's BTI system. This provides exporters with the opportunity to obtain a binding, written ruling concerning the tariff classification of their products prior to export.

The BTI system offers assurance regarding the tariff classification that their products 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.

More information on the BTI system can be found in the answer to What are Binding Tariff Information (BTI) and Binding Origin Information (BOI) rulings?.

3. Cross-reference your product's HS code against the CETA protocol on rules of origin and origin procedures: Annex 5 – Product-specific rules of origin.

4. Assess whether your product satisfies the applicable PSRO requirements, including the change in tariff classification or any weight- or value-based restrictions that may apply.

a. If it does satisfy the PSRO requirements, complete a CETA origin declaration. A template is available in the CETA protocol on rules of origin and origin procedures: Annex 2 – Text of the origin declaration.

b. If it does not satisfy the PSRO requirements, verify whether the product is covered by a CETA origin quota and meets the alternative, more liberal rules of origin associated with the relevant quota. Consult the following tables within the CETA PSRO for more information:

5. If in doubt regarding the originating status of your product under CETA, you can apply for a Binding Origin Information (BOI) decision.

Considerations for products containing high amounts of sugar

The CETA PSRO for many processed and prepared foods contain restrictions on the amount of non-originating sugar that may be used as an ingredient. However, for certain high-sugar containing products, CETA includes origin quotas that allow for the use of higher levels of non-originating sugar, including sugar that has been refined in Canada from non-originating cane sugar.

Note: Imported cane sugar, such as from Latin America, which is refined in Canada is considered non-originating under CETA.

These resources provide more information:

What if my product does not meet the CETA PSRO? What are CETA origin quotas?

Recognizing that some Canadian processed agricultural products are produced using relatively high proportions of non-originating ingredients, CETA includes origin quotas that provide alternative, more liberal rules of origin for certain products. More information on import and export origin quotas under CETA is available at Global Affairs Canada's CETA FAQs on origin quotas.

What are the origin quotas for Canadian agri-food products exported to the EU?

The following CETA tables provide information on volume-limited origin quotas for Canadian agri-food products under CETA:

Origin quota utilization for agri-food products

The origin quotas on the above tables are administered by the EU on a first-come, first-served basis. You can consult the following tables for information on the utilization of CETA's origin quotas for agri-food products:

Using the tolerance level for certain products containing non-originating materials

Exporters may be able to benefit from the tolerance level set out in Article 6 – Tolerance, of the CETA protocol on rules of origin and origin procedures. The tolerance level can be used in cases where some of the non-originating ingredients used in the production of processed agricultural products do not fulfill the change in tariff classification set out in the relevant PSRO.

This provision allows a product to qualify as originating, provided that all of these factors are met:

The total value of the non-originating materials does not exceed 10 per cent of the value of the product.
The product does not exceed the percentages for maximum value or weight of non-originating materials, as provided in the CETA protocol on rules of origin and origin procedures: Annex 5 – Product-specific rules of origin.
That the product satisfies all other applicable requirements of the CETA protocol on rules of origin and origin procedures.

What are the origin quotas for Canadian fish and seafood exported to the EU?

Detailed information on volume-limited origin quotas for Canadian fish and seafood products under CETA can be found in the following resources:

Origin quota utilization for fish and seafood products

The origin quotas for fish and seafood are administered by the EU on a first-come, first-served basis. The European Commission's tariff quota consultation tool provides a database of tariff quotas, including information on the utilization of CETA's origin quotas for fish and seafood products.

Exporters can use the following links for quick access to fish and seafood information:

What documentation is required to claim CETA’s preferential tariff treatment?

To claim CETA's preferential tariff treatment, an exporter is required to provide an origin declaration to the importer. An origin declaration can be provided on an invoice or any other commercial document.

Detailed information as well as an origin declaration template are available in the CETA protocol on rules of origin and origin procedures: Annex 2 – Text of the origin declaration.

Important: The origin declaration and related supporting documentation, as outlined below, must be kept for six years in accordance with Canada's record-keeping requirements.

Supporting documentation to verify that your product is originating under CETA

When an exporter completes an origin declaration, they are responsible for demonstrating that their product is originating according to the CETA. Should their product be selected for a verification of origin by the importing customs authority, the exporter may be requested to provide supporting documentation, such as:

the production processes carried out on the originating product or on materials used in the production of that product
the purchase of, the cost of, the value of, and the payment for the product
the origin of, the purchase of, the cost of, the value of, and the payment for all materials, including neutral elements, used in the production of the product
the shipment of the product

Using the Canada Revenue Agency (CRA) business number on the origin declaration

A Canadian exporter should include their business number, as assigned by the Canada Revenue Agency, on their origin declaration. Where the exporter has not been assigned a business number, that field of the declaration may be left blank.

Note: Canadian companies do not use Registered Exporter System (REX) numbers and will not be asked to provide them on their origin declarations. REX numbers are used by EU exporters as part of their origin declarations.

Export permits for agri-food products that fall under a CETA origin quota

Exporters of agri-food products wishing to use a CETA origin quota must also apply for an export permit from Global Affairs Canada. This is in addition to completing an origin declaration and ensuring their products meet the alternative rules of origin provided for under the relevant CETA origin quota.

Exporters must provide their importer with a copy of the export permit and include a reference to Annex 5-A on the commercial invoice, or other commercial document, to indicate they are taking advantage of the origin quota.

Note: Fish and seafood products do not require export permits.

Additional information is available at:

What are Binding Tariff Information (BTI) and Binding Origin Information (BOI) rulings?

Through the EU Binding Tariff Information (BTI) system Canadian exporters can obtain a binding, written ruling from competent EU authorities on the tariff classification of their product, prior to export. This is helpful for exporters who do not know the Harmonized System classification of their product.

An EU Binding Origin Information (BOI) advance ruling can be obtained should exporters have any questions as to whether their product satisfies the CETA rules of origin. BOI advance rulings are binding on the customs authorities in all EU Member States. Once a ruling is issued, it is applicable across the EU provided that the product, the materials and the circumstances surrounding its production are identical in every respect to the information submitted when the BOI advance ruling was requested.

Canadian exporters who wish to submit a request for a BOI advance ruling to the customs authority of an EU Member State must have a representative in that Member State submit the application on their behalf. EU authorities have 120 days from the date they registered the application to take a decision.

Both BTI and BOI rulings are generally valid for three years from their date of issue.

Can a product be shipped to the EU via another country (e.g. United States)?

Under CETA, a Canadian product can be exported to the EU via a third country outside the CETA territory such as the United States. The product must not undergo further production in a third country, and must remain under customs control (i.e. in bond) when outside of Canada or the EU.

The product must also maintain its originating status and comply with the requirements of Article 14 in the CETA protocol on rules of origin and origin procedures CETA Protocol on Rules of Origin and Origin Procedures; reproduced here:

Article 14 – Transport through a third country

A product that has undergone production that satisfies the requirements of Article 2 shall be considered originating only if, subsequent to that production, the product:
1. does not undergo further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the product to the territory of a Party; and
2. remains under customs control while outside the territories of the Parties.
The storage of products and shipments or the splitting of shipments may take place where carried out under the responsibility of the exporter or of a subsequent holder of the products and the products remain under customs control in the country or countries of transit.

Does CETA change EU import/sanitary and phytosanitary requirements?

CETA does not change EU import requirements or sanitary and phytosanitary requirements. More specifically, CETA does not change the import requirements for any of the following:

food commodities and products
genetic resources, such as seeds, animal genetics or other germplasm
live and aquatic animals
plants

For the export of most products, a CFIA export certificate and/or CFIA health certificate indicating that the product complies with EU rules will need to accompany the shipment. Products for export to the EU must be produced in a federally-registered establishment, and meat and seafood products must be produced in an EU-approved facility. CFIA Area and Regional Offices can provide additional details on what is required depending on the product being exported.

Labelling requirements in the EU

There may also be specific labelling requirements at EU or Member State level. On top of EU-wide labelling requirements, country-specific labelling and packaging requirements should be checked for each market. Canadian exporters should consult with their EU importer to ensure that a product is in compliance with the applicable labelling requirements.

How will Brexit impact market access for Canadian exports to the United Kingdom (UK)?

Canadian companies doing business in or with the UK may be impacted by a UK departure from the EU, also known as Brexit.

The Government of Canada is closely following developments related to Brexit in the UK and has engaged in discussions with the UK to ensure that stable and reliable trade continues. Bilateral trade between Canada and the UK will continue to be governed by CETA while the UK remains a Member State of the EU.
Brexit – Summary information for Canadian companies has the most up-to-date information regarding the future of the relationship between the UK and the EU, and the potential impact on Canadian firms.

I need more assistance, who can help me?

For additional information, please contact the Market Access Secretariat of AAFC at: aafc.mas-sam.aac@agr.gc.ca.