Step-by-step guide for businesses using the CETA

If you're exporting from Canada to the European Union (EU) and its 27 member states, you may benefit from preferential tariff treatment under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). 

CETA is a free trade agreement between Canada and the EU that eliminates nearly all tariffs on goods traded between the two parties. It also improves access to the EU market for Canadian businesses through streamlined regulations, better mobility for service professionals, and more transparent procurement processes.

Key benefits for exporters:

• almost all tariffs on Canadian goods entering the EU are eliminated
• simplified customs procedures
• greater access to EU government procurement contracts
• stronger protection for intellectual property (IP)

Canadian exporters of goods and services may benefit from CETA if:

• their goods meet the rules of origin criteria which specify the amount of production that must be undertaken on a product in Canada, or the EU, for it to be considered “originating” and eligible for CETA’s preferential tariff treatment
• they follow the required procedures for certification of origin
• they ensure compliance with EU customs and regulatory requirements

All goods are assigned a 6-digit code based on where they are classified in the World Customs Organization's Harmonized Commodity Description and Coding System. This is known as the HS code.

The HS classifies all goods using HS codes that are organized by chapter (2 digits), heading (4 digits) and subheading (6 digits). Tariff classification numbers are harmonized internationally up to their 6-digit level using HS codes. Canada and the EU both use HS codes up to the 6-digit level, with additional national subdivisions beyond that. 

Much like a telephone book, traders can look up a rule of origin for their specific good by looking up its HS classification and finding the corresponding product-specific rule of origin (PSRO) under the CETA Protocol on rules of origin and origin procedures – Annex 5. If a good does not meet the Annex 5 PSROs, traders may also wish to consult Annex 5-A to see if their good is eligible for preferential tariff treatment under one of the origin quotas.

Why this matters: The product’s HS code determines the product-specific rule of origin it must meet under CETA Annex 5 – Product-specific rules of origin or Annex 5-A – Origin quotas. 

• Use the Canada Tariff Finder to locate your product’s HS code and explore CETA tariff benefits.
• You can also use the Access2Markets ROSA tool from the European Commission to explore product names and HR codes.
• Consult a licensed customs broker for expert assistance

Find a customs broker

• Licensed customs brokers: Canada
• Customs broker search: Canada
• Offices in Canada: Reach out to a Trade Commissioner at a regional office who can provide a list of customs brokers

Tariff information by country and Harmonized System (HS) codes: Tariff info and applicable HS codes for your product.

To benefit from reduced or zero tariffs under the CETA:

• Ensure your product qualifies as originating under the CETA rules of origin.
• Prepare an origin declaration: The CETA provides a self-certification system. The exporter includes the origin declaration on an invoice or other commercial document. You can find the required wording in Annex 2 of the CETA Protocol on rules of origin and origin procedures.
• Be registered if needed: If you're a Canadian exporter sending goods valued over €6,000, you must be registered under Canada’s Exporter Identification Number system (EIN)

You may need an exporter number (BN or RM number) from the Canada Revenue Agency (CRA) to ship goods abroad. 

To benefit from the CETA’s preferential tariff treatment, you must provide a self-certified origin declaration. No government-issued certificate is required. This declaration must appear on an invoice or other commercial document and must include:

• the specific wording provided in Annex 2 of the CETA Protocol on rules of origin and origin procedures
  • "The exporter of the products covered by this document (insert customs authorization number) declares that, except where otherwise clearly indicated, these products are of Canadian preferential origin."
• the period of time for which the origin declaration will apply if it is being completed for multiple shipments of identical originating products
• a statement that the goods meet CETA rules of origin
• the date and location
• the Canada Revenue Agency (CRA) business number (BN)
• a signature

To get clarity before exporting to the EU, Canadian exporters can request an advance ruling from the customs authorities of an EU Member State.

An advance ruling is a legally binding, written decision issued before the good is imported, by a customs authority that can provide a binding decision on:

• the HS code classification
• whether a good qualifies as originating under CETA

Advance rulings are issued by the customs authority of an EU Member State, but are recognized across the EU. Exporters can contact the customs administration of the Member State where their EU customer is located or where the product will first enter the EU.

The European Commission’s National Customs Websites contains a list of the websites of the customs authorities of the EU member states. 

Advance rulings reduce the risk of border issues and provide assurance to your EU customers that the product qualifies for CETA preferential tariff treatment.

The EU may request Canada to verify whether a good is originating. The Canadian exporter may need to:

• provide additional information to show that the good is originating
• respond to inquiries from the Canada Border Services Agency (CBSA)
• undergo on-site audits

Reminder: Goods without a valid origin declaration will not benefit from preferential tariffs under CETA and may face full duty rates at the EU border.

To comply with CETA and CBSA record keeping requirements, you must keep all relevant documents for at least 6 years, including:

• origin declarations
• purchase orders
• bills of material
• supplier declarations
• costing and production records
• any documents relating to the production and export of the goods

• Assuming your product qualifies without checking the rules of origin
• Not registering when required
• Using incorrect or missing language in the origin statement
• Failing to retain records for 6 years

If you need support:

• contact a Trade Commissioner
• refer to the CETA text and annexes
• consult the EU’s Access2Markets tool