Effective January 1, 2021, importers of qualifying goods into Canada may cite the United Kingdom Trade Continuity Remission Order, 2021 #20-1135, in order to benefit from remission of duties.
The United Kingdom Trade Continuity Remission Order (the Order) provides the tariff benefits of the Canada-United Kingdom Trade Continuity Agreement (CUKTCA) as if it were in force as of January 1, 2021. It does so by remitting the difference between the Most-Favoured-Nation Tariff rate of customs duty and the rate of customs duty that would apply under the Comprehensive Economic and Trade Agreement (CETA). This replicates the tariff benefits that would have applied to eligible imports from the United Kingdom (UK) and certain associated territories under the CUKTCA as the tariffs and rules of origin are equivalent under the two agreements. The CETA is referenced because those preferential tariffs and rules of origin already exist in domestic law and the new CUKTCA agreement will mirror the CETA Rules of Origin.
This remission applies to goods imported on or after January 1, 2021, until the day on which the CUKTCA enters into force.
Importers should obtain documentation from UK exporters to identify goods meet the current CETA Rules of Origin in order for the remission order to apply for reduced duty at time of import to Canada after January 1, 2021.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
