1. On , Canada will introduce a number of updates to its unilateral preferential tariff programs to make them easier to use and access for Canadian importers and developing country partners.
2. These updates affect the General Preferential Tariff (GPT), the Least Developed Country Tariff (LDCT), the Commonwealth Caribbean Countries Tariff (CCCT) and result in the creation of the new General Preferential Tariff Plus (GPTP).
3. Effective , the following countries will graduate from and be ineligible for preferential tariffs under the GPT program: Armenia, Belize, British Virgin Islands, Fiji, Georgia, Guatemala, Guyana, Iraq, Marshall Islands, Moldova, Nauru, Paraguay, Tonga, Turkmenistan, Tuvalu, Vietnam. Goods in transit to Canada before will continue to be eligible for the GPT. Conversely, the countries of Lebanon and Tunisia will be re-instated to and eligible for the GPT program.
4. Effective , Cape Verde, Samoa, Tuvalu and Vanuatu will graduate from and be ineligible for preferential tariffs under the LDCT program. Goods in transit to Canada before will continue to be eligible for the LDCT.
5. Effective , duty-free treatment under the CCCT program will be expanded to cover all textiles, apparel and made-up textile articles in Chapters 50 – 63 of the Harmonized System.
6. When it comes into effect, at a later date, the incoming GPTP is intended to be a program that provides expanded tariff preferences, going beyond GPT benefits, to those GPT beneficiaries that abide by certain international standards and work to improve conditions relating to human rights, labour rights, and sustainable development, including environmental protection.
Rules of origin
7. The rules of origin determine the extent of production required to be carried out in a beneficiary country in order for the imported good to be eligible for tariff benefits. Presently, the LDCT rules of origin for apparel products allow the production of apparel in least developed countries (LDCs) from imported yarns and fabrics, as long as a minimum percentage of value is added in the LDC. Currently, no rule of origin exists for apparel products in the GPT and CCCT, as those goods are not eligible for preferences under those programs.
8. On , the rules of origin for apparel products will be liberalized and harmonized across all of Canada’s programs to allow for the cutting and sewing of fabrics in developing and least developed countries to confer origin on the final apparel product, regardless of the origin of the yarn and fabric. These changes will reduce issues of compliance previously identified by apparel importers and stakeholders, thereby helping to maximize the utilization of benefits across Canada’s programs, including potential future benefits under the GPT and GPTP programs.
9. The new regulations on rules of origin for these tariff programs can be found as follows:
- General Preferential Tariff, General Preferential Tariff Plus and Least Developed Country Tariff Rules of Origin Regulations (PDF, 183 KB)
- Commonwealth Caribbean Countries Tariff Rules of Origin Regulations (PDF, 158 KB)
Shipping requirements
10. Effective January 1, 2025, the shipment requirements within the Customs Tariff will be removed and re-established with updated regulations in the Direct Shipment (Most-Favoured-Nation Tariff, General Preferential Tariff, General Preferential Tariff Plus, Least Developed Country Tariff, Commonwealth Caribbean Countries Tariff, Australia Tariff and New Zealand Tariff) Regulations (PDF, 145 KB).
11. These updates expand acceptable proof of direct shipment documents beyond a through bill of lading and remove the six-month storage limit in intermediary countries. These updates aim to align with modern shipping practices, facilitate access to Canada’s trade programs, and align with Canada’s shipment requirements under its free trade agreements.
Source: Canada Border Services Agency
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