Find your EU tariff rate

How to determine the tariff rate in the EU for Canadian goods once CETA is in force

Guide on how to read the CETA tariff schedule

Rules of origin

Under the Canada-EU Comprehensive Economic and Trade Agreement (CETA), only products that originate in Canada or the EU are eligible to benefit from preferential tariff treatment. CETA’s rules of origin identify how much production must occur in Canada or the EU in order for a product to be considered originating, ensuring that the benefits of preferential tariff treatment under the CETA accrue to Canadian and EU exporters.

These requirements are set out in the Protocol on Rules of Origin and Origin Procedures and the accompanying Annex on Product-Specific Rules of Origin.

Tariff classification

As tariff classification of imported goods falls under the purview of the importing Party, if you do not know the tariff code for your good, please refer to the Binding Tariff Information system (BTI) provided by the European Commission Taxation & Customs Union. The BTI system assists exporters to obtain the correct tariff classification of goods they intend to export to the EU. More information on the BTI is available on the European Commission website.

In Canada, CBSA does not issue advance rulings to Canadian exporters of tariff classification of their exports. Advance rulings on tariff classification can only be requested by foreign exporters and producers located outside of Canada, in addition to Canadian importers, in regards to the tariff classification of good imported into Canada.

Guide on how to read the CETA Tariff Schedule

In terms of tariff elimination, CETA uses a negative list approach. This means that, unless a tariff code is listed in a Party’s Tariff Schedule in CETA, the tariff applicable on the import of that product will be eliminated immediately upon entry into force of CETA. Tariff codes may change from year to year in Canada’s Customs Tariff and the EU’s Common Customs Tariff. Please note that the CETA Tariff Schedules reflect Canada’s and the EU’s 2015 tariff nomenclature and tariff codes.

As such, 2015 tariff codes should be used when consulting the Tariff Schedules under CETA. If tariff codes from other years are used, ensure the tariff codes are concorded to the corresponding 2015 tariff codes.

For tariff codes listed in Canada’s Tariff Schedule or in the EU’s Tariff Schedule, each Party will reduce or eliminate tariffs in accordance with Annex 2-A of Chapter 2 (National Treatment and Market Access for Goods) of CETA.

Staging categories

In addition to the base rate (i.e. the initial tariff rate) for each product listed, each Party’s Tariff Schedule shows the specific staging category (i.e. tariff phase-out period) for it. There are 7 different staging categories:

A
Duty-free on the date the Agreement enters into force;
B
Duties shall be removed in 4 equal stages beginning on the date this Agreement enters into force (duty-free as of January 1 of year 4);
C
Duties shall be removed in 6 equal stages beginning on the date this Agreement enters into force (duty-free, as of January 1 of year 6);
D
Duties shall be removed in 8 equal stages beginning on the date this Agreement enters into force (duty-free, as of January 1 of year 8);
S
Duties shall be removed in 3 equal stages beginning on the fifth anniversary of the date of entry (duty-free, as of January 1 of year 8);
AV0+EP
The ad valorem component of the customs duties shall be eliminated upon the date of entry into force of this Agreement; the specific duty shall be maintained.
E
Goods are exempted from tariff elimination (base rate will continue to apply)

For the purpose of the elimination of customs duties, Annex 2-A provides that interim staged rates (i.e. the resulting tariff rate at each reduction stage). The rates shall be rounded down at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units, at least to the nearest 0.001 of the official monetary unit of the Party.

Tariff rate quotas

For certain products, CETA provides for preferential access to be granted to a specific volume (quota) of imports that product. Imports in excess of those volumes are subject to higher tariff rates, in general, the most-favoured-nation (MFN) tariff rate. The CETA Parties reflected these commitments through Tariff-Rate-Quotas (TRQ), which are provided for in Annex 2-A. While some of the TRQs are transitional (i.e. after a defined period of time, duty-free treatment will be provided for unlimited quantities of the imported product), other TRQs are permanent (i.e. the quota volume grows during the transition period and stays at a certain level indefinitely thereafter, such that duty-free treatment is limited to defined volumes of goods).

The Parties’ Negative Schedules indicate, in the Notes column, which TRQ applies to specific products.

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