EFTA: Canada's Other Free Trade Zone

For all the news of Canada's newest and biggest free trade agreements )most notably the new NAFTA-CUSMA) there are many other significant agreements including one with EFTA.

Who is the European Free Trade Association / EFTA?

The European Free Trade Association (EFTA) serves as an intergovernmental organization between "non EU" European countries of Iceland, Liechtenstein, Norway and Switzerland. It allows for free trade amongst those countries as well as free trade with other countries, including Canada.

Canada origin goods shipped to Iceland, Liechtenstein, Norway and Switzerland may benefit from preferential tariffs and duty free entry. The EFTA Canada FTA agreement focuses on primarily on goods rather than services.

The EFTA free trade agreement (EFTA FTA) is a series of trade agreements between the EFTA countries and other countries including Canada These agreements cover a wide range of areas, including trade in goods, services, and investment. They also include provisions on intellectual property, competition, and government procurement.

The Canadian EFTA FTA removes tariffs on goods traded between the parties, with the exception of a few agricultural and fisheries products. It also includes provisions on technical barriers to trade, sanitary and phytosanitary measures, and rules of origin.

Canada EFTA Free Trade Agreement Rules of Origin

The rules of origin are the criteria used to determine the national origin of a product and whether it qualifies for preferential treatment under a free trade agreement (FTA). There are general rules of origin and rules for specific categories of goods.

• The general rule of origin for goods under the Canada-EFTA FTA is the "substantially transformed" rule. This means that a good must be substantially transformed in one of the Canada or EFTA countries to qualify for duty-free treatment under the agreement.
• Specific rules of origin for certain goods: Categories of goods can include textiles, automotive products, and processed agricultural goods. The specific rules are more detailed and may require the use of specific inputs or production processes for a good to qualify for duty-free treatment.

It is best to confirm compliance with the consignee/ importer and regulatory authorities prior to shipping.

Jet Worldwide provides European Canadian global logistics. Our support for various systems facilitate the international Canadian movement of goods.Our logistics team best supports your team by not being beholden to a specific carrier or process.

Opportunity shipping to and from Canada

The EFTA Canada Free Agreement facilitates sales of goods shipped internationally between Canada, Iceland, Liechtenstein, Norway and Switzerland. Most industrial goods benefit from duty-free access. Jet Worldwide's biggest demand to the EFTA zone is for shipping between Canada, Norway, and Switzerland. Get a quote and information for shipping Canada, Norway, Switzerland from our team.

Most Favoured Nation (MFN) tariff rates are generally applicable for good traded between EFTA countries and Canada. Goods that meet The EFTA rules of origin can benefit from preferential duty free import. The MFN tariff rates of Canada and EFTA countries apply to goods that do not meet the rules of origin (non-originating goods) under EFTA rules.

Useful Information: CERTIFICATION OF ORIGIN AND WHEN IT IS NEEDED

Read More: Country from where goods were shipped versus country of origin

Iceland, Norway, Switzerland, Liechtenstein orIgIn goods shipped TO Canada

A simplified process is possible to gain duty free import to Canada from Norway, Switzerland and other EFTA country origin goods.

Canadian companies can more easily take advantage of duty free clearance from EFTA country if the goods are valued under CA$3,300 (and otherwise qualify under country of origin rules.

READ MORE: UNDERSTANDING DUTY AND HOW IT IS CALCULATED

Proof of origin requirements under Canada's free trade agreements

The value for duty amount for all of Canada's free trade agreements (including EFTA Canada) for which the proof of origin / certificate of origin is up to $3,300 CAD.

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. Benefiting from CANADA'S Other FREE TRADE AGREEMENTS

Best options for shipping freight between EFTA Countries and Canada

1. Air freight: This is the fastest option with economy air options
2. Ocean: Best for large commercial orders
3. Local post options are generally best for individuals sending personal goods
4. FedEX , DHL, UPS air options are well known with information readily available via their websites.

When choosing a shipping method, you will need to consider factors such as the size and weight of your freight, the time frame in which you need it to arrive, and your budget. It may be helpful to compare quotes from different carriers to find the best option for your needs.

Jet Worldwide has been providing innovative shipping solutions, enduring partnerships and transparency for over 40 years.

• For a Shipping Quote: Provide address details, shipment weight and dimensions, item(s) being shipped and value.
• For companies shipping regular volume, e-commerce and logistics support: Provide a basic outline or simply request a call back.