The Canadian Border Services Agency (CBSA) is giving the import community advance notice of upcoming changes to Canada’s unilateral tariff preference programs for developing countries, which will involve amendments to the Customs Tariff legislation and related regulations, effective .

To complete the renewal of Canada’s tariff treatment programs, the Commonwealth Caribbean Countries Tariff (CCCT) – code 07, the Least Developed Country Tariff (LDCT) – code 08, and the General Preferential Tariff (GPT) – code 09, have been reviewed and modernized.

The rules of origin for apparel products under the GPT, LDCT, CCCT and new General Preferential Tariff Plus in Canada’s Customs Tariff legislation have been simplified and harmonized, allowing for production with non-originating fabrics in developing countries to confer origin without needing to meet any value-added requirement.

New direct shipment and transshipment requirements have also been introduced. Shipment requirements will be moved from the Customs Tariff to regulations, modernizing the accepted documentation for proving direct shipment to Canada and removing the time limit on goods storage in intermediary countries.

The CCCT will be expanded to cover all goods within Chapters 50 to 63 that may benefit from duty-free treatment, provided that the rules of origin and shipment requirements are met.

The eligibility of beneficiary countries under the LDCT and the GPT is updated as follows:

  • The entitlement to the benefit of the Least Developed Country Tariff is withdrawn in respect of all goods originating from: Cape Verde, Samoa, Tuvalu and Vanuatu.
  • The entitlement to the benefit of the General Preferential Tariff is withdrawn in respect of all goods originating from: Armenia, Belize, British Virgin Islands, Fiji, Georgia, Guatemala, Guyana, Iraq, Marshall Islands, Moldova, Nauru, Paraguay, Tonga, Turkmenistan, Tuvalu and Vietnam.
  • The entitlement to the benefit of the General Preferential Tariff is granted in respect of all goods originating from: Lebanon and Tunisia.

These changes are anticipated to take effect in the CBSA Assessment and Revenue Management (CARM) system, which is scheduled to become the official system of record for the collection of duties and taxes in May 2024. To stay informed on supply chain news and other important updates, PARTNER UP WITH A CUSTOMS BROKER HERE