{"id":4956,"date":"2021-02-27T11:42:17","date_gmt":"2021-02-27T16:42:17","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=4956"},"modified":"2021-02-27T11:42:17","modified_gmt":"2021-02-27T16:42:17","slug":"canada-uk-trade-2021","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/canada-uk-trade-2021\/","title":{"rendered":"An Overview of Canada-UK Trade in 2021"},"content":{"rendered":"<p>The Government of Canada announced that it will be implementing duty remission measures for imported goods as a result of the United Kingdom\u2019s decision to leave the European Union &#8212; set to end on July 1, 2021.<\/p>\n<p>Up until December 31, 2020, Canada allowed duty-free entry of certain goods from the United Kingdom, in order to provide Canadian importers with additional time to adjust to the United Kingdom&#8217;s new reality.<\/p>\n<blockquote><p><b>The duty suspension applied to the following categories of goods:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Alcoholic beverages<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Various foods<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; A wide range of manufactured goods<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; A full range of textile and clothing\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Footwear<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Pharmaceuticals<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Automobiles and light trucks<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; A full range of household furniture, appliances, furnishings<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Other<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">This presented a great opportunity for importers to take advantage of duty remission on imported goods from the United Kingdom. But what will 2021 look like for Canada-UK trade? What agreements must Canadian and UK importers be privy to?<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-4959\" src=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/\/2021\/02\/mikhail-pavstyuk-EKy2OTRPXdw-unsplash-1024x576.jpg\" alt=\"uk canada trade 2021\" width=\"570\" height=\"321\" srcset=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2021\/02\/mikhail-pavstyuk-EKy2OTRPXdw-unsplash-1024x576.jpg 1024w, https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2021\/02\/mikhail-pavstyuk-EKy2OTRPXdw-unsplash-300x168.jpg 300w\" sizes=\"(max-width: 570px) 100vw, 570px\" \/>\u00a0<\/span><\/p>\n<h2><b>Memorandum of Understanding (MOU)<\/b><\/h2>\n<p>On December 22, 2020, Canada and the UK announced that they had signed a memorandum of understanding (MOU) providing that the benefits of CETA would continue in effect until the Continuity Agreement can be ratified. The MOU expires after three months if it is not renewed and the Continuity Agreement has not been ratified by that date.<\/p>\n<p><span style=\"font-weight: 400;\">As part of implementing the MOU, Canada\u2019s Minister of Finance has issued the United Kingdom Trade Continuity Remission Order, 2021. In turn, the Canada Border Services Agency (CBSA) has issued two customs notices regarding imports from the United Kingdom after January 1, 2021. <\/span><span style=\"text-decoration: underline;\"><strong><i>(See them here: <\/i><a href=\"https:\/\/www.cbsa-asfc.gc.ca\/publications\/cn-ad\/cn20-38-eng.html\"><i>Customs Notice 20-38<\/i><\/a><i> and <\/i><a href=\"https:\/\/www.cbsa-asfc.gc.ca\/publications\/cn-ad\/cn20-39-eng.html\"><i>Customs Notice 20-39<\/i><\/a><i>)<\/i><\/strong><\/span><\/p>\n<p><b>Customs Notice 20-38: <\/b><span style=\"font-weight: 400;\">states that importers of goods from the United Kingdom, the Channel Islands, Gibraltar and the Isle of Man must account for their goods under the Most-Favoured-Nation (MFN) tariff treatment.\u00a0<\/span><\/p>\n<p><b>Customs Notice 20-39: <\/b><span style=\"font-weight: 400;\">provides guidance to Canadian importers of goods that were shipped to Canada after January 1, 2021, but before January 1, 2023. The notice states that goods shipped to Canada after January 1, 2021, but before January 1, 2023, are subject to the terms of CETA.<\/span><\/p>\n<p><b>The <\/b><span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.international.gc.ca\/trade-commerce\/trade-agreements-accords-commerciaux\/agr-acc\/cuktca-acccru\/agreement_trade_continuity-accord_continuite_commerciale.aspx?lang=eng\"><b>Continuity Agreement<\/b><\/a><\/span><b>: <\/b><span style=\"font-weight: 400;\">The agreement states that the provisions of CETA are incorporated mutatis mutandis into the Continuity Agreement with the wording:<\/span><\/p>\n<blockquote><p><i><span style=\"font-weight: 400;\">\u201cThe Continuity Agreement provides that the parties shall strive to conclude negotiation of a new agreement within three years of the Continuity Agreement\u2019s date of entry.\u201d<\/span><\/i><\/p><\/blockquote>\n<p><b>Side Letter: <\/b><span style=\"font-weight: 400;\">provisions of the World Trade Organization (WTO) Agreement on Measures Concerning the International Trade in Cheese. This letter stipulates that a WTO member may impose a \u201ctariff rate quota\u201d on cheese originating in another WTO member. A \u201ctariff rate quota\u201d is a type of measure that limits the quantity of a good that is allowed to be imported into the importing country, but does not limit the price of the good.<\/span><\/p>\n<h2><b>Looking Ahead Into 2021 and Beyond\u2026<\/b><\/h2>\n<p>The MOU will come as a relief to the trade community that uses CETA for their import business operations, as it removes any question of continuity for the time being. We suspect that the Continuity Agreement will be ratified in early 2021, following an updated agreement between Canada and the UK.<\/p>\n<p><b>\u00a0<\/b><span style=\"font-weight: 400;\">As the trade community adapts to Brexit, there are many uncertainties and unknowns. But working with an experienced customs broker can help Canadian importers navigate these strange times. To begin a conversation with a broker and see what a partnership may look like, you can click <\/span><span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/clearit.ca\/clearance_step2\">here<\/a><\/strong><\/span><span style=\"font-weight: 400;\">.\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government of Canada announced that it will be implementing duty remission measures for imported goods as a result of the United Kingdom\u2019s decision to leave the European Union &#8212; set to end on July 1, 2021. Up until December 31, 2020, Canada allowed duty-free entry of certain goods from the United Kingdom, in order [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":4958,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[142,250],"tags":[],"_links":{"self":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4956"}],"collection":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/comments?post=4956"}],"version-history":[{"count":2,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4956\/revisions"}],"predecessor-version":[{"id":4960,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4956\/revisions\/4960"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media\/4958"}],"wp:attachment":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media?parent=4956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/categories?post=4956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/tags?post=4956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}