Frequently Asked Questions

Import and Export Origin Quotas under CETA:

Administration Policies: Exports:

Administration Policies: Imports:

What is an “origin quota”?

Rules of origin define whether a product has been produced or ‘originates’ in the territory of one of the parties to a free trade agreement. In CETA, the rules of origin for all products are set out in the Protocol on Rules of Origin and Origin Procedures and the product-specific rules of origin (Annex 5) in of this Protocol. These products are eligible for preferential duty rates and, with some exceptions, may be imported and exported without quantitative restrictions.

However, the Parties have agreed that certain products that do not meet the product-specific rules of origin may qualify as originating under alternative product-specific rules of origin under Annex 5-A: Origin quotas and alternatives to the product-specific rules of origin in annex 5 (Annex 5-A). For these products, Canada and the EU have established origin quotas. Under these origin quotas, a set quantity of products that include non-Canadian or non-EU sourced materials can nevertheless qualify as originating and receive preferential tariff treatment under CETA.

In order to receive this treatment, the product must meet the product description in Annex 5-A, and must undergo sufficient production to satisfy the applicable product-specific rule of origin detailed in that origin quota.

What are the products for which Canada has established origin quotas for imports from the EU?

Canada’s import origin quotas cover goods in the textiles and apparel sector. Annex 5-A of the Protocol on rules of origin and origin procedures in CETA sets out the products covered under the origin quotas. The products covered for imports into Canada are available in Tables C.3 and C.4. All origin quota products are eligible for CETA Preferential Tariff Treatment upon import into Canada.

Do I need an import permit to import these products into Canada?

Yes. All textile and apparel products covered by Canada’s CETA origin quotas require an import permit in order to obtain the CETA preferential tariff rate.

What are the products for which the EU has established origin quotas for imports from Canada?

The EU has established origin quotas for products in a number of sectors, including high-sugar containing products, sugar confectionery and chocolate preparations, processed foods, dog and cat food, fish and seafood, textiles, apparel, and vehicles.

Annex 5-A of the Protocol on rules of origin and origin procedures in the CETA sets out the products included in these origin quotas in Tables A.1, A.2, A.3, A.4, B.1, C.1, C.2, and D.1.

Do I need an import permit to import these products into the EU?

No. The EU has not established an import permit requirement for these products. However, Canada has established export permits requirements for some of these products.

Which origin-quota eligible products can I export to the EU without an export permit issued by Global Affairs Canada?

Fish and seafood, textiles, and most apparel do not require export permits issued by Canada to be eligible for the EU origin quotas for these products.

Which products do need an export permit issued by Global Affairs Canada to be counted against the EU origin quota?

The tables below set out the products for which Canadian export permits are required in order to receive CETA Preferential Tariff Treatment upon entry into the EU.

Table A.1 – Annual Quota Allocation for High-Sugar Containing Products Exported from Canada to the European Union

Annual quota for exports from Canada into the European Union (metric tonnes, net weight): 30,000

Harmonized System classification

Product description

Sufficient production

ex 1302.20

Pectic substances, pectinates and pectates, containing added sugar of subheading 1701.91 through 1701.99

A change from within this subheading or any other subheading, except from subheading 1701.91 through 1701.99.

ex 1806.10

Cocoa powder, containing added sugar of subheading 1701.91 through 1701.99

A change from any other subheading, except from subheading 1701.91 through 1701.99.

ex 1806.20

Preparations containing added sugar of subheading 1701.91 through 1701.99 for the preparation of chocolate beverages

A change from within this subheading or any other subheading, except from subheading 1701.91 through 1701.99.

ex 2101.12

Preparations with a basis of extracts, essences or concentrates of coffee or with a basis of coffee containing added sugar of subheading 1701.91 through 1701.99

A change from any other subheading, except from subheading 1701.91 through 1701.99.

ex 2101.20

Preparations with a basis of extracts, essences or concentrates of tea or maté, or with a basis of tea or maté containing added sugar of subheading 1701.91 through 1701.99

A change from within this subheading or any other subheading, except from subheading 1701.91 through 1701.99.

ex 2106.90

Food preparations containing added sugar of subheading 1701.91 through 1701.99

A change from within this subheading or any other subheading, except from subheading 1701.91 through 1701.99

Table A.2 – Annual Quota Allocation for Sugar Confectionery and Chocolate Preparations Exported from Canada to the European Union

Annual quota for exports from Canada into the European Union (metric tonnes, net weight): 10,000

Harmonized System classification

Product description

Sufficient production

17.04

Sugar confectionery (including white chocolate), not containing cocoa

A change from any other heading.

1806.31

Chocolate and other food preparations containing cocoa, in blocks, slabs or bars, filled, weighing no more than 2 kilograms

A change from any other subheading, provided that the change is the result of more than packaging.

1806.32

Chocolate and other food preparations containing cocoa, in blocks, slabs or bars, not filled, weighing no more than 2 kilograms

1806.90

Chocolate and other food preparations containing cocoa other than those of subheading 1806.10 through 1806.32

Table A.3 – Annual Quota Allocation for Processed Foods Exported from Canada to the European Union

Annual quota for exports from Canada into the European Union (metric tonnes net weight): 35,000

Harmonized System classification

Product description

Sufficient production

19.01

Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40 per cent by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of heading 04.01 through 04.04, not containing cocoa or containing less than 5 per cent by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included

A change from any other heading.

ex 1902.11

Uncooked pasta, not stuffed or otherwise prepared, containing eggs and rice

A change from any other heading.

ex 1902.19

Uncooked pasta, not stuffed or otherwise prepared, other, containing rice

ex 1902.20

Stuffed pasta, whether or not cooked or otherwise prepared, containing rice

ex 1902.30

Other pasta, containing rice

1904.10

Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, corn flakes)

A change from any other heading; or 

A change from within this heading, whether or not there is also a change from any other heading, provided that the weight of the non-originating materials of this heading does not exceed 30 per cent of either the net weight of the product or the net weight of all material used in production.

1904.20

Prepared foods obtained from unroasted cereal flakes or from mixtures of unroasted cereal flakes and roasted cereal flakes or swelled cereals

1904.90

Prepared foods other than those of subheading 1904.10 through 1904.30

A change from any other heading.

19.05

Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products

A change from any other heading.

2009.81

Cranberry juice

A change from any other heading.

ex 2009.89

Blueberry juice

A change from any other heading.

2103.90

Other sauces and preparations therefor, other mixed condiments and mixed seasonings

A change from any other heading.

ex 2106.10

Protein concentrates and textured protein substances, not containing added sugar of subheading 1701.91 through 1701.99 or containing less than 65 per cent by net weight of added sugar of subheading 1701.91 through 1701.99

A change from any other subheading; or 

A change from within the same subheading, whether or not there is also a change from any other subheading, provided that the net weight of non-originating material from within that subheading does not exceed 30 per cent of either the net weight of the product or the net weight of all material used in production.

ex 2106.90

Other food preparations not elsewhere specified or included, not containing added sugar of subheading 1701.91 through 1701.99 or containing less than 65 per cent by net weight of added sugar of subheading 1701.91 through 1701.99

Table A.4 – Annual Quota Allocation for Dog and Cat Food Exported from Canada to the European Union

Annual quota for exports from Canada into the European Union (metric tonnes, net weight): 60,000

Harmonized System classification

Product description

Sufficient production

2309.10

Dog or cat food, put up for retail sale

A change from subheading 2309.90 or any other heading, except from dog or cat food of subheading 2309.90.

ex 2309.90

Dog or cat food, not put up for retail sale

A change from within this subheading or any other heading, except from dog or cat food from within this subheading.

Table C.2 – Annual Quota Allocation for Apparel Exported from Canada to the European Union

Harmonized System classification

Product description

Annual quota for exports from Canada into the European Union (units, unless otherwise specified)

6102.30

Women's or girls' overcoats, car coats, capes, cloaks, anoraks, ski-jackets and similar articles of manmade fibres, knitted or crocheted

17,000

61.04

Women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, etc. (no swimwear), knitted or crocheted

535,000

6108.92

Women's or girls' negligees, bathrobes, dressing gowns and similar articles of manmade fibres, knitted or crocheted

39,000

61.14

Garments not elsewhere specified or included, knitted or crocheted

90,000 kilograms

62.01

Men's or boys' overcoats car coats, capes, cloaks, anoraks (including ski-jackets), windcheaters, wind-jackets and similar articles, not knitted or crocheted, other than those of heading 6203

96,000

62.05

Men's or boys' shirts, not knitted or crocheted

15,000

Table D.1 – Annual Quota Allocation for Vehicles Exported from Canada to the European Union

Annual quota for exports from Canada into the European Union (units): 100,000

Harmonized System classification

Product description

8703.21

Other vehicles, with spark-ignition internal combustion reciprocating piston engine: of a cylinder capacity not exceeding 1,000 cc

8703.22

Other vehicles, with spark-ignition internal combustion reciprocating piston engine: of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc

8703.23

Other vehicles, with spark-ignition internal combustion reciprocating piston engine: of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc

8703.24

Other vehicles, with spark-ignition internal combustion reciprocating piston engine: of a cylinder capacity exceeding 3,000 cc

8703.31

Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel): of a cylinder capacity not exceeding 1,500 cc

8703.32

Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel): of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc

8703.33

Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel): of a cylinder capacity exceeding 2,500 cc

8703.90

Other

Why has Canada established import and export permit requirements for these origin quota products?

The Government of Canada engaged a broad range of stakeholders in 2016 on potential options for administering the new CETA import and export origin quotas.

It was on the basis of this feedback that Canada established permit requirements for these products and added them to the Export Control List (ECL) under paragraphs 5205 to 5210 and the Import Control List (ICL) under Textiles: section 86.98, and Apparel: section 86.99.

How will Canada and the EU process origin quota-eligible imports?

Canada and the EU will process shipments into their respective origin quotas in the order in which they arrive at the point of entry (i.e. on a ‘first-come, first-served’ basis). This is a CETA requirement.

However, Canada reserved its right to put in place import or export permit requirements for any or all of the origin quotas established under CETA. As per paragraph 5 of Annex 5-A, Canada has notified the EU that it has established export permit requirements for Canadian exports into certain EU origin quotas and import permit requirements for all EU exports into Canada’s textiles and apparel origin quotas.

Canada will process all textiles and apparel origin quota shipments on a first-come, first-served basis, but only for products that are accompanied by an import permit issued by Global Affairs Canada.

For its part, the EU has undertaken, in paragraph 6 of Annex 5-A, to apply the preferential tariff treatment only to those Canadian origin quota exports that are accompanied by an export permit issued by Global Affairs Canada. Be sure to provide the export permit to your European Union importer as this will be required by European Union customs in order to process the products under the origin quota.

Are there documentation requirements for origin quotas apart from import and export permits?

Exporters should note that as per the Protocol on Rules of Origin and Origin Procedures of the CETA, the exporter of the product is required to provide an Origin Declaration to the importer.

In order to identify that products are eligible for an origin quota, the exporter must:

  • inform the importer of the application of Annex 5-A;
  • include a reference to Annex 5-A on the commercial invoice or other commercial document; and
  • where applicable, provide the importer with a copy of the export permit.

Depending on the goods, there may be other documents required. Exporters should confirm any other documentation requirements with their importer.

What does the “ex” that I see before some HS codes mean?

A particular tariff code may cover a range of products beyond the product referred to in the CETA origin quota tables. This results in a so-called “ex-out”, which is identified by using the prefix “ex” in front of the tariff code.

The appearance of “ex” before an HS Code denotes the scope of product coverage classified under that code.  In order to determine product coverage, reference is required to the product description set out in the tables of Annex 5-A to Annex 5 of the Protocol on Rules of Origin and Origin Procedures of CETA.

For example, tariff code 1902.20 covers “Stuffed pasta, whether or not cooked or otherwise prepared”. Whereas the ex-out (tariff code ex 1902.20 in the Origin Quota table A.3) identifies the product as “Stuffed pasta, whether or not cooked or otherwise prepared, containing rice”. Since not all “Stuffed pasta, whether or not cooked or otherwise prepared” is covered, the prefix “ex” is used in front of tariff code 1902.20 to indicate that the product description further defines what is included; in this case the product must also contain rice.

Where an origin quota includes an ex- before the HS code, exporters should ensure their goods meet both the product description and the rules for sufficient production listed for the specific good in determining eligibility under the origin quota.

How do I know how much room is left in an origin quota or when it fills?

Weekly utilization rates for origin quotas for which Canadian export permits are required are available online.

The EU also publishes quota utilization rates on their database for tariff quotas, including all origin quotas for import into the EU, on the EUROPA website.

How do I get more information about the origin quotas?

Contact Global Affairs Canada at: Origin.Quotas@international.gc.ca