Canadian Asian Free Trade: Realization of E-Commerce Opportunity

The CPTPP Canadian-Asian Pacific Free Trade agreement (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is now a reality! Incredible free trade opportunities are now possible between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

CPTPP received Canadian Approval / Royal Assent and came into force in January 2019 for the first seven countries to have ratified the agreement.

Free Trade is now a reality between Australia, Canada, Japan, Mexico, New Zealand, Singapore and Vietnam.

Jet Worldwide provides low cost parcel delivery between Canada, Australia, Japan , Mexico, New Zealand, Singapore, Vietnam and other CPTPP Countries.

Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only and is not intended to, constitute legal and/or tax advice. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is”; no representations are made that the content is error-free.

The "rest of the world" is no longer the "rest of the world"

For many Canadian companies, international means shipping cross border to the USA and then grouping all others as "rest of world." At Jet Worldwide, we believe it is best for Canadian retailers to target specific countries or regions. Doing so increases the likelihood of success. In other words, the best way to go global is to focus on local markets.

Leading International Markets for Canadian Online Orders

The major growth opportunity for the retail online marketplace is cross border sales. Canadian retailers often serve niche markets - for example in winter wear - that are attractive to certain markets. Furthermore, Canadian retailers can embrace the value of being, well, Canadian.

The leading international markets for Canadian e-commerce sellers includes:

• Australia
• Indonesia
• Japan

Jet Worldwide has direct shipping, import and last mile delivery solutions to all the world's major economies.

Under CPTPP provisions, CPTPP origin goods sentvia Jet's express parcel service between Canada and other CPTPP can benefit from duty free status.

Under the CPTPP, customs duties have been eliminated on most imports between the participating countries. The duties on some products (primarily agricultural) will be eliminated or phased-out.

Proof of Origin

The key part of all trade agreements is ensuring the goods qualify under the rules of origin. Many incorrectly assume that if goods are sent from a qualifying country, they should qualify for duty free status. Country of origin is not determined solely bywhere the goods are sentfrom.

The country of origin ruleshave been simplified under CPTPP but can still get complex. The guidelines for country of origin qualification include:

• Goods are considered originating if they are wholly obtained, such as goods that are grown, raised, caught, or extracted in Canada /CPTPP country.
• Goods are considered originating if they are produced in Canada or a CPTPP country entirely from originating materials.
• Goods are originating if they are produced in Canada/CPTPP country from non-originating materials that undergo production in Canada/ CPTPP country, such that the resulting good satisfies the applicable product-specific rule of origin. The value of the non-originating goods that are part of the originating product can be considered dutiable.

The amazing part of CPTPP is that parcels containing products valued less than US$1000* (equivalent in local currency) do not require a certification of origin to claim CPTPP preferential tariff treatment.

• Parcels containing products under US$1,000* can be considered for duty free status if the following conditions include:
• A signed statement completed by the importer, exporter or producer certifying that the goods originated from a CPTPP country
• This statement is required on the commercial invoice and we recommend adding an additional stand alone statement/ supporting document. See
• The goods must meet the origin rules. For example, marks to indicate that the goods are not a product of a CPTPP country will disqualify the goods and have issues related to mis-declarations.

CPTPP orIgIn goods shipped FROM A CPTPP TO Canada

Canadian companies can more easily take advantage of duty free clearance from a CPTPP Country.

Proof of origin requirements under Canada's free trade agreements

The value for duty amount for all of Canada's free trade agreements (including CPTPP) for which the proof of origin / certificate of origin is waived was changed to $3,300 CAD in July 2020. This change was made to harmonize the regulations with the new NAFTA/ CUSMA.

For imports not exceeding $3,300 to Canada, the requirement for proof of origin is waived. The requirement on the importer to maintain records (for example, commercial invoice and B3) applies even if the CBSA does not require a certification of origin or if a requirement for a certification of origin has been waived.

Disclaimer: The information in this blog is for general information only. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.

With the implementation of free trade agreements in Europe (CETA) and Asia- Pacific (CPTPP), Jet Worldwide can assist Canadian companies to grow their global supplier and customer base.

Jet Worldwide Direct International e-commerce Shipping from Canada

• • Jet Worldwide is a trusted brand helping Canadians connect with international markets for over 35 years.
    
  • Jet Worldwide provides transparency and best in class international e-commerce shipping solutions for online orders shipped from Canada.
    
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Getting quote for shipping international Canada and CPTPP Region

Jet Worldwide gives access to all companies seeking international shipping quotes . Contact our logistics team:For a quote for shipping online orders, regular volumes and logistics support; provide details including shipping volume, item(s) being shipped, average value and weight of each parcel. The more details the better :).

We expect there will be some interpretation issues from various customs authorities.

In order to claim the preferential tariff treatment, a set a data elements referred to as a ‘certification origin’ must be provided by the exporter, producer or importer of the goods by adding the information to any document (e.g., Commercial Invoice) accompanying the shipment or if preferred, by providing it on a separate document. The data elements do not have to follow a prescribed format but must contain the minimum data elements listed below. In addition, the imported goods must originate and be exported from a CPTPP ratified country.

1. Indicate the Certifier (Importer, Exporter or Producer)
2. Name, Address and Contact Information of the Certifier
3. Name, Address and Contact Information of the Exporter (if different from the certifier)
4. Name, Address and Contact Information of the Producer (if different from the certifier, or exporter)
5. Name, Address and Contact Information of the Importer
6. Description and HS Tariff Classification for the Goods
7. Origin Criterion for the Goods
8. Blanket Period
9. Authorized Signature and Date

Note: The certification of origin must be signed and dated by the Certifier and accompanied by the following statement:

“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification”

For full details regarding the minimum data requirements for the certification of origin, please refer to Annex 3-B of the CPTPP agreement.

Jet Worldwide Canada provides international parcel delivery solutions between Canada and other CPTPP countries.

Benefits of CPTPP

• Improved access for trade. Provides Canadian companies access to key foreign markets that represent over 470 million people and over 13% of the world’s GDP.
• Increased savings. CPTPP will eliminate or reduce tariffs (duties) on almost all commodities and lessen non-tariff barriers.
• Streamlined regulation. CPTPP will establish a framework for trade in the Asia-Pacific region that will make it easier for countries to transact business with each other.
• Foreign Investment. Greater access, stability, transparency and protection for Canadian investors.

Canada Border Services Agency (CBSA) Customs Notice 18-22

Government of Canada website is available for the latest news and information

Canada CPTPP Tariff Rate Quota FAQs

CPTPP Rules of Origin

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