Canada Border Services Agency (CBSA) has updated and revised customs notices CN20-38 and CN20-39 on January 21, 2021 with updated information on the remission order that was previously published on December 22, 2020. Information is provided on specific instances whereby there are two remissions/order-in-council or permits applicable and how to complete the B3.
Customs Notice 20-38 – Withdrawal of Entitlement to the Canada–European Union Tariff (CEUT) Tariff Treatment for Goods Originating From the United Kingdom
The United Kingdom Trade Continuity Remission 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.
This remission applies to goods imported on or after January 1, 2021, until the day on which the CUKTCA enters into force.
Effective January 1, 2021 importers of qualifying goods may cite the United Kingdom Trade Continuity Remission Order, 2021, in order to benefit from the remission of duties.
To do so, importers must complete Form B3-3, Canada Customs Coding Form, as follows:
- In Field No. 14, “Tariff Treatment”, enter the Most-Favoured-Nation (MFN) tariff treatment, code “02”
- In Field No. 26, “Special Authority”, enter OIC number 20-1135
Where another Order in Council (OIC), Excise Warehouse License, or permit is also applicable to the qualifying goods that would otherwise be eligible to benefit from the remission of duties under OIC number 20-1135, importers must complete Form B3-3, Canada Customs Coding Form, as follows:
- In Field No. 14, “Tariff Treatment”, enter the MFN tariff treatment, code “02”
- In Field No. 22, “Description”, enter OIC number 20-1135 and any other applicable OIC number, Excise Warehouse License number, or permit number
- In Field No. 26, “Special Authority”, enter Special Authority Code number 21-UK-00000
In the B3-3 Form, where Special Authority Code number 21-UK-00000 must be used, importers will have to manually calculate all applicable duties and taxes as allowed under the relevant OICs and licenses. Please note that Special Authority Code number 21-UK-00000 will only apply to goods imported on or after January 1, 2021, as long as the Order is in effect.
Importers are responsible for obtaining documentation in support of a claim for remission under the Order. The Canada Border Services Agency (CBSA) will accept documentation from exporters in the UK in support of an importer’s claim for remission.
For more information on the CETA tariff treatment and the associated rules of origin, please consult the CETA Rules of Origin Regulations and Memorandum D11-5-15 Canada–European Union Comprehensive Economic and Trade Agreement (CETA) Rules of Origin.
Customs Notice 20-39 – Implementation of the United Kingdom Trade Continuity Remission Order, 2021
Effective January 1, 2021, the United Kingdom and certain associated territories will no longer be covered by the Canada-EU Comprehensive Economic and Trade Agreement by virtue of Brexit. This means that eligibility for the Canada-European Union Tariff (CEUT) preferential tariff treatment is withdrawn for goods originating from the United Kingdom and certain associated territories, as set out below. Such goods must now be accounted for under the Most-Favoured-Nation (MFN) tariff treatment.
This withdrawal of eligibility for the CEUT preferential tariff applies to the United Kingdom, the Channel Islands, Gibraltar, and the Isle of Man. As of January 1, 2021, goods that are exported from the Sovereign Base Areas of Akrotiri and Dhekelia to Canada shall be declared as being exported from Cyprus.
Importers of goods originating from the United Kingdom, Channel Islands, Gibraltar and Isle of Man, that are in-transit to Canada on or before January 1, 2021, and that would have been eligible for the CEUT preferential tariff treatment, may receive the same duty relief by following the instructions provided for in Customs Notice 20-39, Implementation of the United Kingdom Trade Continuity Remission Order, 2021.
Importers should have in their possession proof that the goods were in-transit. Such proof may include, but is not limited to, the following documentation: commercial invoices, sales orders, purchase orders, shipping documents (specifically the through bill of lading), report of entry documents, and cargo control documents.
The through bill of lading must indicate that the goods started their uninterrupted journey to a consignee in Canada on or before January 1, 2021. Documentary proof may be requested at any time by a Canada Border Services Agency officer.
Amendment to the Customs Tariff
An amendment to the List of Countries and Applicable Tariff Treatments in the T2021 version of the Departmental Consolidation of the Customs Tariff has been published to remove the CEUT preferential tariff treatment for the United Kingdom, the Channel Islands, Gibraltar and the Isle of Man.
For more information, call the CBSA Border Information Service (BIS):
Calls within Canada & the United States (toll free): 1-800-461-9999
Calls outside Canada & the United States (long distance charges apply):
1-204-983-3500 or 1-506-636-5064
Contact Us at the CBSA website may also be accessed for information