What is happening?
On 21 September 2017 CETA enters into force provisionally. Most of the agreement will apply immediately.
What is CETA?
CETA is a freshly negotiated treaty between the EU and Canada. Negotiations started in 2009.
CETA removes 98% of the duties payable when importing Canadian goods into the EU, and vice versa.
The main types of goods traded between the two parties are machinery, transportation equipment and chemical and pharmaceutical products.
How can business make use of it?
Like all trade agreements, rules apply. In terms of trade in goods, there are rules about the origin of the goods, the transportation route, and the need for exporter’s declaration as well as due diligence.
The goods must be ‘Canadian’ or ‘EU-originating’ in orgin to qualify.
The exporter must make a statement called and ‘origin declaration’ on invoices. If the value of a consignment is above 6,000 EUR, then the exporter must also be a ‘registered exporter’.
HMRC has proactively tried to pre-register all UK businesses likely to be affected, but you can check at the following link.