Notice to Importers

Textiles and Apparel for Import to Canada from the European Union and its Member States (Items 86.98 and 86.99 on Canada’s Import Control List)

Serial No. 899
Date: September 1, 2017

This Notice is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations. This Notice will remain in effect until further notice.

In Brief:

Under the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) and its Member States, Canada agreed to establish origin quotas for imports of textiles and apparel from the EU and its Member States.

The origin quota year extends from January 1 to December 31, inclusive.

For 2017 only, the origin quota year extends from September 21, 2017 to December 31, 2017 inclusive, and the access level for the origin quotas is pro-rated to that period.

Imports from the EU and its Member States to Canada of textiles and apparel that are eligible under CETA origin quotas are subject to import controls under the EIPA. Accordingly, import permits are required for imports of these products in order to obtain the preferential tariff rate under CETA.

This Notice to Importers sets out the policies and practices pertaining to the administration of Canadian imports under the CETA origin quota for textiles and apparel.  This Notice also explains how to apply for import permits.

Table of Contents

1.0 Purpose

1.1 The purpose of this Notice is to:

  1. Set out the Minister’s policies and practices pertaining to the administration of the origin quotas for imports of textiles and apparel from the EU and its Member States; and
  2. Explain how to apply for import permits.

2.0 General Information

2.1 Background

2.2 Under CETA origin quotas, certain products that do not satisfy the product-specific rules of origin under Annex 5: Product-Specific Rules of Origin may qualify as originating under alternative product-specific rules of origin as specified in  Annex 5-A: Origin quotas and alternatives to the product-specific rules of origin in annex 5 (Annex 5-A).

2.3 The origin quotas specify the quantity of a product(s) that can qualify as originating and receive preferential CETA tariff treatment. In order to receive this treatment the product must meet the product description and undergo sufficient production to satisfy the applicable product-specific rule of origin associated with that origin quota.

2.4 Weekly utilization rates for imports that require import permits for origin quota-eligible shipments are available online.

3.0 Products Covered

3.1 This Notice pertains to Tables C.3 and C.4 of Annex 5-A, which sets out the CETA provisions applicable to textiles and apparel.

3.2 A detailed list of the origin quota products that are subject to import controls under the EIPA may be found in the Handbook of Export and Import Commodity Codes.

4.0 Access Level

4.1 The annual origin quota access levels applicable to textiles and apparel covered by this Notice are set out in Tables C.3 and C.4 of Annex 5-A.

4.2 Exceptionally, for 2017, the origin quota access levels for these products are pro-rated to the period of September 21 to December 31, 2017.

4.3 Importers should note that the units of measure are as listed in the Annex 5-A. There are no conversion factors.

4.4 CETA contains growth factors for the textiles and apparel origin quotas that provide for an increase in the volume of the origin quotas if certain conditions are met. The growth factors are outlined at the end of Table C.4 in Annex 5-A.

5.0 Import Permits

5.1 Types of Permits

5.1.1 A shipment-specific import permit is required for every shipment of textiles and apparel covered by this Notice in order to receive preferential tariff treatment available through the origin quota.

5.1.2 Shipment-specific import permits for products covered by this Notice are issued on a first-come, first-served basis.

5.1.3 Once an origin quota has been fully utilized, import permits will not be issued.

5.1.4 The Import Permits Regulations may be found online.

5.2 Accessing CETA Origin Quotas for Textiles and Apparel

5.2.1 As outlined in paragraph 3 of Annex 5-A of CETA, Canada administers access to origin quotas on a first-come, first-served basis.

5.2.2 Pursuant to Paragraph 5 of Annex 5-A, Canada has notified the EU of Global Affairs Canada-issued import permit requirements for products imported under the origin quotas covered by this Notice.

5.2.3 In accordance with the CETA Protocol on rules of origin and origin procedures, the exporter of the product is required to provide an origin declaration to the importer.

5.2.4 In order for the exporter to identify origin quota exports to Canada and to inform the importer of the application of Annex 5-A, the exporter must include a reference to Annex 5-A on the commercial invoice or other commercial document. In accordance with paragraph 4 of Annex 5-A, the Parties shall not count any products against the annual origin quota without such reference.

5.3 How to Apply for a Permit

5.3.1 Information about the permit application process, including information about fees, the monthly billing system, and information required from applicants, is available on the Global Affairs Canada website: Applying for an Export Permit (Non-strategic Products).

6.0 Contact us

6.1 Contact information is available on the Global Affairs Canada website: Contact Us.

6.2 For directory assistance, you may call 343-203-6820, or email: tic@international.gc.ca.