Canadian Tariff Policy

Tariff structure and customs tax standard

Canadian law stipulates that only the federal government has the right to do so.

A. most favored nation treatment (MFN)

For all GATT member countries and bilateral trade agreements with Canada.

B. Commonwealth preference system (BP)

Apply to all

C. general preferences system (GPT)

Applicable to more than 160 developing countries

D. tariffs on countries not covered by A.B.C.E.

E.

Some countries enjoy several special tariff treatments. In addition, under the US Canada Free Trade Agreement, import tariffs from the United States gradually decrease, and tariffs will be abolished in 10 years. Most of the products imported from Canada are subject to the tariffs stipulated by most favored nation treatment. Canada has agreed to gradually reduce its tariffs through the continuous negotiation of GATT. The rate of tax under the GSP system from developing countries is lower than that of other kinds of taxes. The highest tariff is the general tariff, which applies to countries that are neither GATT member countries nor Canada's undivided bilateral trade agreements, such as North Korea, Albania, Oman and Libya.

One of the characteristics of Canada's tariff structure is the implementation of different tax rates for different products. Under normal circumstances, the import tariffs of most raw materials are zero or very low, the higher the degree of processing of imported products, the higher the tariffs, and the practices of other developed countries are similar. The average tariff of Canadian imports is about 9%, higher than that of the United States, the European Union and Japan. 5-7%.

Canada's customs duties are implemented in special regulations, such as the import of fresh fruits and vegetables that can be produced in Canada, especially when the supply market is adequate in Canada. Sometimes, seasonal duties are imposed. The imported parts and raw materials of Canadian manufactured products can enjoy temporary low tariffs or tax-free treatment. According to Canada's machinery plan, some imported machinery and equipment imported from Canada can enjoy tax rebate treatment. The list of products that can enjoy tax refund is listed in fourth and fifth columns of Canada Customs Tariff. Import duty rebates are designed to help Canadian manufacturers improve their competitiveness.

The amount of tax rebate is different, some products rebate rate is 100%. Canada does not produce domestic, but for the production of motor vehicles can enjoy tax rebate treatment, for the production of agricultural machinery steel and zero accessories also enjoy the treatment.

Tariffs on export products from developing countries

Canada's universal preferential tax rate applies to more than 160 countries in the world. It came into force in July 1, 1974 to help developing countries expand exports to Canada. The general preferential tax rate is the same as the preferential tax rate provided by Canada to its Commonwealth countries, or lower than the tariff under the most favored nation treatment principle. 1/3. does not come from all the products of developing countries.

When imports of foreign products enjoying the GSP to Canada, causing serious damage or serious damage to domestic manufacturers in Canada, Canadian enterprises can use the "safety clause" to ask the federal government to cancel the GSP treatment of the products, or to impose quota restrictions on imported products enjoying the general benefits. In fact, the use of this "safety clause" is very few. Canada has already cancelled the GSP treatment for color TV sets, rubber shoes and special steels.

Eligible for GSP treatment

The products imported from GSP must meet the requirements. First, the products must come from the eligible developing countries and must be shipped to a particular port in Canada through the form of combined pport bill of lading. If the products are re processed through a third country to a third country, then the final product will no longer enjoy the treatment of GSP. Secondly, the vast majority of the value of the products must be created by one or more developing countries. When the actual implementation is required, 60% of the value of the product (or 60% of the factory's delivery price) is created by the beneficial developing countries. Some handicrafts can be tax-free into the Canadian market. However, if any part of the handicraft is produced by machines rather than manual or foot operated machines, this kind of handicraft products will not enjoy duty-free treatment. Enjoy

The exporter who enjoys the treatment of GSP can complete the customs preferential treatment under the GSP by filling in the certificate of origin "A form", which must be proved by the relevant authority of the country of origin.

Customs declaration procedures and customs valuation methods for imported products

It is necessary to declare to the Canadian customs. All import products must be accompanied by a declaration form. Generally speaking, all tariffs must be paid when the products enter Canada. The Canadian import tariff is very important. The Canadian customs act as the signatory of the <<1979 customs valuation law in the negotiations on the Tokyo round of GATT. The regulations require that the customs value of the imported products be the actual "paction price". The "paction price" is the commodity price specified by the importer and declared on the invoice. When a party has a certain relationship, the "paction price" declared by one party can also be used as the duty paid price when the paction is done by the two party concerned, but it is necessary for the Canadian customs to believe that this relationship does not affect the import price. All products entering Canada

On the basis of "paction price", the discount can be deducted from the paction price if the importer makes a discount when the product enters customs, but if the discount is not obtained when the product is in customs, the discount can not be deducted from the paction price.

According to the Canadian customs valuation system, there is no duty on the freight, insurance and loading and unloading costs of the imported goods in Canada. If the cost of goods is included in the price, it can be deducted from the calculation of the "paction price". However, the pportation cost of products from the country of origin to Canada must be taxed. If the "paction price" does not include freight, it must be added.