News and Media

News and Media

07/07/2011

Canada-Colombia Free Trade Agreement Effective August 15th, 2011.


The Canada-Colombia Free Trade Agreement is scheduled to take effect as of August 15, 2011.Upon implementation, Canada will immediately eliminate tariffs on most Colombian imports. The balance will be eliminated over a three- or seven-year period, with the exception of Tariff Rate Quota items such as dairy, poultry, eggs and refined sugar.
 
The rules of origin, similar to those of NAFTA and CCRFTA, are based on a change in the HS classification of non-originating parts and materials. For textile and apparel, the rules of origin require that most yarns and fabrics originate in order for the garment to qualify. There are no Tariff Preference Level provisions (TPL). Under the De Minimis provisions, non-originating materials that are 15% or less of the weight of the garment may be ignored. For goods other than textile, De Minimis provisions allow non-originating parts and materials that are 10% or less of the value.
 
Based on the text of the FTA, apparel (HS chapters 61 and 62) and most other textiles is set to become duty free in the first stage of the agreement If for any reason Canada Customs postpones the implementation date, it is likely that those goods for which the FTA was claimed will be eligible for a refund. We will keep you posted on this issue pending final confirmation.
 
Complete details of this FTA agreement can be found at:
 
Certificates of Origin will be required and details may be viewed by clicking on the following link.
 
Eligibility for the Canada-Colombia Free Trade Agreement begins on August 15th, 2011and will be based on the Canada Customs release date and not the ship date.
 
Details may be viewed by clicking on the following link.
 
There is no TPL provision for this FTA. The “Tariff Shift” rules are very specific. details may be viewed by clicking on the following link.

Information on these and other recent developments can be obtained from our senior consultants.
 


 

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