Notice to Exporters

Apparel for Export to the European Union and its Member States (Item 5209 on Canada’s Export Control List)

Serial No. 215
Date: January 16, 2019

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, the EU agreed to establish origin quotas for imports of textiles and apparel from Canada.

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

Exports from Canada of certain apparel that are eligible under CETA origin quotas are subject to export controls under the EIPA. Accordingly, an export permit is required for shipments of this apparel from Canada to the EU in order to obtain the preferential tariff rate under CETA.  Specific products requiring export permits are identified in section 3.1 of this Notice.

Exports from Canada to the European Union of all textiles and most apparel that are eligible under CETA origin quotas are not subject to export controls under the EIPA.  Accordingly, export permits are not required for shipments of these products.

Effective January 1, 2019, the origin quotas for 62.01 and 62.02 has increased as a result of meeting the targets for the growth provision.  The new quota amounts are 98,880 units for 62.01 and 101,970 units for 62.02.

This Notice to Exporters sets out the policies and practices pertaining to the administration of Canadian exports under the CETA origin quota for the certain apparel that are subject to export controls, and explains how to apply for export permits.

Table of Contents

1.0 Purpose

1.1 The purpose of this Notice is to:

  • Set out the Minister’s policies and practices pertaining to the administration of the origin quotas for Canadian exports of apparel covered by this Notice; and
  • Explain how to apply for export 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 exports that require export permits for origin quota-eligible shipments are available online. The EU also publishes quota utilization rates on its EUROPA website.

3.0 Products Covered

3.1 This Notice pertains specifically to the following products, listed in Table C.2 of Annex 5-A, which sets out the CETA provisions applicable to textiles and apparel.

HS CodeProduct Description
6102.30Women's or girls' overcoats, car coats, capes, cloaks, anoraks, ski-jackets and similar articles of manmade fibres, knitted or crocheted
61.04Women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, etc. (no swimwear), knitted or crocheted
6108.92Women's or girls' negligees, bathrobes, dressing gowns and similar articles of manmade fibres, knitted or crocheted
61.14Garments not elsewhere specified or included, knitted or crocheted
62.01Men'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
62.05Men's or boys' shirts, not knitted or crocheted

3.2 A detailed list of the origin quota products that are subject to export 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, including apparel covered by this Notice, are set out in Tables C.1 and C.2 of Annex 5-A.

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

4.3 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.

4.4 The annual quota outlined in Annex 5-A will always reflect the original negotiated quota.  The current annual quotas, including any applicable growth provisions, can be viewed in the CETA origin quota utilization tables.  Effective January 1, 2019, the origin quotas for 62.01 and 62.02 have increased.  The new amounts are 98,880 units for 62.01 and 101,970 units for 62.02.

5.0 Export Permits

5.1 Types of Permits

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

5.1.2 Shipment-specific export 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, export permits will not be issued.

5.1.4 The Export Permit Regulations (Non-strategic Products) 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, the EU 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 export permit requirements for products exported under the applicable origin quotas, including apparel covered by this Notice. Accordingly, under Paragraph 6 of Annex 5-A, the EU shall only provide preferential tariff treatment based on the alternative rule of origin for the origin quotas to products accompanied by an export permit.

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. This applies to all origin quota-eligible products, whether or not they require an export permit issued by Global Affairs Canada.

5.2.4 In order for the exporter to identify origin quota exports to the EU 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, and provide the importer with a copy of the export permit. In accordance with paragraph 4 of Annex 5-A, the Parties shall not count any products against the annual origin quota without such reference. This applies to all origin quota-eligible products, whether or not they require an export permit issued by Global Affairs Canada. 

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.