In Canada, there are 18 tariff treatments, all represented by a code on the Customs Coding Form, B3. Sixteen of the tariff treatments will lower the rate of duty normally payable on imported goods, as a result of a free trade agreement or other preferential treatment Canada provides to beneficiary countries.
02 Most Favoured Nation (MFN) applicable to all signatories of the World Trade Agreement (WTO)
03 General Tariff (GT) rate of 35% applicable to any countries that have not signed the WTO
04 Australia Tariff (AUT)
05 New Zealand Tariff (NZT)
07 Commonwealth Caribbean Countries Tariff (CCCT) applicable to certain Caribbean countries
08 Least Developed Country Tariff (LDCT) applicable to 49 least developed developing nations
09 General Preferential Tariff (GPT) applicable to developing nations
10 NAFTA United States Tariff (UST)
11 NAFTA Mexico Tariff (MT)
12 NAFTA Mexico-United States Tariff (MUST)
13 Canada-Israel Agreement Tariff (CIAT)
14 Chile Tariff (CT)
21 Costa Rica Tariff (CRT)
22 Iceland Tariff (IT)
23 Norway Tariff (NT)
24 Switzerland-Liechtenstein Tariff (SLT)
25 Peru Tariff (PT)
26 Colombia Tariff (COLT)
Conditions for goods to benefit from duty-free or reduced tariffs under preferential treatments:
- they must be eligible (i.e. sufficient manufacturing performed in the country of origin),
- the importer must possess valid proof of origin, normally a certificate of origin signed by the exporter in the beneficiary country, and
- they must be shipped directly from the beneficiary country with or without transshipment.
For certain textile goods originating in North America under NAFTA tariff treatment codes 10 and 11, Chile code 14, and Costa Rica code 21, even if they do not meet the rules of origin, duty-free treatment may apply under ‘Tariff Preference Level’ (TPL).
Additional information concerning tariff treatments and rules of origin can be obtained from our technical consulting group.