On December 5, 2018, the Canada Border Services Agency (CBSA) issued Customs Notice 18-22 Implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which announces that the CPTPP will be implemented in Canada, Australia, Japan, Mexico, New Zealand and Singapore on December 30, 2018. Additionally, the Agreement will enter into force for Vietnam on January 14, 2019. With the exception of a few agricultural goods, the CPTPP will essentially eliminate the customs duties on all qualifying imports into Canada from a country for which the CPTPP is in force (“CPTPP country”), either immediately upon implementation of the agreement, or through a tariff phase-out. At the time of issuance of CN 18-22, not all CPTPP member countries will have completed their domestic ratification process and identified an implementation date. As the remaining CPTPP member countries reach ratification and confirm an implementation date, a separate customs notice will be issued. The text of the CPTPP is available at the Global Affairs website.
The CPTPP implementing legislation, Bill C-79, received Royal Assent on October 25, 2018 and is scheduled to come into force on December 30, 2018. Proposed regulatory amendments and new regulations under the Customs Act related to the CPTPP will be announced in a separate customs notice.
- Entitlement to the CPTPP tariff treatment is determined in accordance with the rules of origin set out in Annex 3-D of Chapter 3 of the CPTPP. A new preferential tariff treatment is being introduced for originating imports from Australia, Japan, Mexico, New Zealand and Singapore as of December 30, 2018. The preferential tariff treatment is entitled the Comprehensive and Progressive Trans-Pacific Partnership Tariff and the newly assigned tariff treatment code is Code 33. This preferential tariff treatment will be extended to originating imports from Vietnam as of January 14, 2019.
- The required proof of origin is referred to as a certification of origin and consists of a set of data elements contained in Annex 3-B of Chapter 3, that may be placed on any document. Additional information concerning the CPTPP certification of origin is contained in Article 3.20 of Chapter 3.
- Under the CPTPP, importers, exporters or producers of CPTPP eligible goods may complete the certification of origin. In order to claim the preferential tariff treatment accorded under the CPTPP, importers must have the certification of origin in their possession.
- Goods may be shipped from a CPTPP country, with or without transshipment, to Canada subject to the conditions contained in Article 3.18 of Chapter 3 of the CPTPP.
- An application for a refund under paragraph 74(1)(c.11) of the Customs Act may be made within four years from the date the goods were accounted for under subsections 32(1), (3), or (5), in respect of goods that were imported from Australia, Japan, Mexico, New Zealand or Singapore on or after December 30, 2018, or from Vietnam on or after January 14, 2019.