DILAS CAN LOWER YOUR IMPORT TAXES WHEN BRINGING TEXTILES FROM THE EU BY OBTAINING IMPORT PERMIT

The Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) was provisionally applied on September 21, 2017. Under CETA, Canada and the EU agreed to establish a number of origin quotas to allow for specific quantities of some products to receive preferential tariff treatment if the products meet certain conditions. In accordance with CETA, Canada and the EU will process imports of origin quota-eligible products on a first-come, first-served basis.

Canada’s import origin quotas cover goods in the textiles and apparel sector. Annex 5-A of the Protocol on rules of origin and origin procedures in CETA sets out the products covered under the origin quotas. The products covered for imports into Canada are available in Tables C.3 and C.4 (see below)

All origin quota products are eligible for CETA Preferential Tariff Treatment upon import into Canada. To apply for the permits you will need a statement of origin as per below indicated on the commercial invoices.

Annex 2 – Text of the origin Declaration

The origin declaration, the text of which is given below, must be completed in accordance with the footnotes. However, the footnotes do not have to be reproduced.

(Period: from___________ to __________(1))

The exporter of the products covered by this document (customs authorisation No …(2)) declares that, except where otherwise clearly indicated, these products are of …(3) preferential origin.

……………………………………………………………………………………………………(4)
(Place and date)

…………………………………………………………………………………………………(5)
(Signature and printed name of the exporter)

___________________

(1) When the origin declaration is completed for multiple shipments of identical originating products within the meaning of Article 19.5, indicate the period of time for which the origin declaration will apply. The period of time must not exceed 12 months. All importations of the product must occur within the period indicated. Where a period of time is not applicable, the field can be left blank.
(2) For EU exporters: When the origin declaration is completed by an approved or registered exporter the exporter’s customs authorisation or registration number must be included. A customs authorisation number is required only if the exporter is an approved exporter. When the origin declaration is not completed by an approved or registered exporter, the words in brackets must be omitted or the space left blank.
(3) “Canada/EU” means products qualifying as originating under the rules of origin of the Canada-European Union Comprehensive Economic and Trade Agreement. 
(4) These indications may be omitted if the information is contained on the document itself.
(5 Article 19.3 provides an exception to the requirement of the exporter’s signature. Where the exporter is not required to sign

Table C.3 – Annual Quota Allocation for Textiles Exported from the European Union to Canada

Harmonized System classification Product description Annual quota for exports from the European Union into Canada (kilograms, unless otherwise specified) Sufficient production
5007.20 Woven fabrics containing 85 per cent or more by weight of silk or of silk waste other than noil silk 83,000 m2 Weaving.
5111.30 Woven fabrics containing predominantly, but less than 85 per cent by weight of carded wool or carded fine animal hair, mixed mainly or solely with man-made staple fibres 205,000 m2 Weaving.
51.12 Woven fabrics of combed wool or of combed fine animal hair 200,000 Weaving.
5208.39 Woven fabrics of cotton, containing 85 per cent or more cotton by weight and weighing not more than 200 g/m², dyed, excluding those in three-thread or four-thread twill, which includes cross twill, and plain woven fabrics 116,000 m2 Weaving.
5401.10 Sewing thread of synthetic filaments, whether or not put up for retail sale 18,000 Extrusion of man-made filament yarn whether or not accompanied by spinning; or
Spinning.
5402.11 Synthetic filament yarn, not put up for retail sale, high tenacity yarn of aramids 504,000 Extrusion of man-made filament yarn whether or not accompanied by spinning; or
Spinning.
54.04 Synthetic monofilament of 67 decitex or more and with a cross sectional dimension of no more than 1 mm; strip and the like, (for example, artificial straw), of synthetic textile material, with an apparent width of no more than 5 mm 275,000 Extrusion of man-made filament yarn whether or not accompanied by spinning; or
Spinning.
54.07 Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04 636,000 Weaving.
56.03 Nonwovens, whether or not impregnated, coated, covered or laminated, not elsewhere specified or included 1,629,000 Any non-woven process including needle punching.
5607.41 Binder or baler twine, of polyethylene or polypropylene 813,000 Any non-woven process including needle punching.
5607.49 Twine, cordage, ropes and cables of polyethylene or polypropylene, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics (excluding binder or baler twine) 347,000 Any non-woven process including needle punching.
5702.42 Carpets and other floor coverings, of man-made textile materials, woven, not tufted or flocked, of pile construction, made up (excluding kelem, schumacks, karamanie and similar hand-woven rugs) 187,000 m2 Weaving; or
Use of any non-woven process including needle punching.
5703.20 Carpets and other floor coverings, of nylon or other polyamides, tufted whether or not made up 413,000 m2 Weaving; or
Use of any non-woven process including needle punching.
5704.90 Carpets and other floor coverings, of felt, not tufted or flocked, whether or not made-up (excluding floor tiles with an area of no more than 0.3 m²) 1,830,000 Weaving; or
Use of any non-woven process including needle punching.
59.03 Textile fabrics impregnated, coated, covered or laminated with plastics (excluding tyre cord fabric of high-tenacity yarn of nylon or other polyamides, polyesters or viscose rayon) 209,000 Weaving; or
Coating, flocking, laminating or metalising, in each case accompanied by at least two other main preparatory finishing operations (such as calendering, shrinking resistance processing) confer origin provided that at least 52.5 per cent value was added based on the transaction value or ex-work price of product
5904.10 Linoleum, whether or not cut to shape 61,000 m2 Weaving; or
Coating, flocking, laminating or metalising, in each case accompanied by at least two other main preparatory finishing operations (such as calendering, shrinking resistance processing) confer origin provided that at least 52.5 per cent value was added based on ex-work price of product.
5910.00 Transmission or conveyor belts or belting, of textile material, whether or not impregnated, coated, covered or laminated with plastics, or reinforced with metal or other material 298,000 Manufacturing from yarn or waste fabrics or rags of heading 63.10;
Weaving; or
Coating, flocking, laminating or metalising, in each case accompanied by at least two other main preparatory finishing operations (such as calendering, shrinking resistance processing) confer origin provided that at least 52.5 per cent value was added based on ex-work price of product.
59.11 Textile products and articles, for technical uses, specified in note 7 to Chapter 59 160,000 Manufacturing from yarn or waste fabrics or rags of heading 63.10;
Weaving; or
Coating, flocking, laminating or metalising, in each case accompanied by at least two other main preparatory finishing operations (such as calendering, shrinking resistance processing) confer origin provided that at least 52.5 per cent value was added based on ex-work price of product.
6302.21 Bed linen, printed, of cotton, not knitted or crocheted 176,000 Cutting of fabric and making up; or
Use of any non-woven process including needle punching accompanied by making up (including cutting).
6302.31 Bed linen (other than printed) of cotton, not knitted or crocheted 216,000 Cutting of fabric and making up;
Use of any non-woven process including needle punching accompanied by making up (including cutting);or
Making up preceded by printing.
6302.91 Toilet linen and kitchen linen of cotton (excluding of terry towelling or similar terry fabrics), floor-cloths, polishing-cloths, dish-cloths and dusters 20,000 Use of any non-woven process including needle punching accompanied by making up (including cutting);
Cutting of fabric and making up; or
Making up preceded by printing.

Table C.4 – Annual Quota Allocation for Apparel Exported from the European Union to Canada

Harmonized System classification Product description Annual quota for exports from the European Union into Canada (units, unless otherwise specified) Sufficient production
6105.10 Men’s or boys’ shirts of cotton, knitted or crocheted (excluding nightshirts, t-shirts, singlets and other vests) 46,000 Cutting of fabric and making up.
61.06 Women’s or girls’ blouses, shirts and shirt-blouses, knitted or crocheted (excluding t-shirts and vests) 126,000 Cutting of fabric and making up.
61.09 T-shirts, singlets and other vests, knitted or crocheted 722,000 Cutting of fabric and making up.
61.10 Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted (excluding wadded waistcoats) 537,000 Cutting of fabric and making up; or
Knitting to shape for products for which no sewing or other assembly is required.
61.14 Other garments not elsewhere specified or included, knitted or crocheted 58,000 kilograms Cutting of fabric and making up; or
Knitting to shape for products for which no sewing or other assembly is required.
61.15 Pantyhose, tights, stockings, socks and other hosiery, including graduated compression hosiery (for example, stockings for varicose veins) and footwear without applied soles, knitted or crocheted (excluding for babies) 1,691,000 pairs Cutting of fabric and making up; or
Knitting to shape for products for which no sewing or other assembly is required.
6202.11 Women’s or girls’ overcoats, raincoats, carcoats, capes, cloaks and similar articles of wool or fine animal hair, not knitted or crocheted 15,000 Cutting of fabric and making up.
6202.93 Women’s or girls’ anoraks, windcheaters, wind jackets and similar articles, of man-made fibres (not knitted or crocheted) 16,000 Cutting of fabric and making up.
6203.11 Men’s or boys’ suits of wool or fine animal hair 39,000 Cutting of fabric and making up.
6203.12-6203.49 Men’s or boys’ suits (excluding wool or fine animal hair), ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (excluding knitted or crocheted, and swimwear) 281,000 Cutting of fabric and making up.
62.04 Women’s or girls’ suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (excluding knitted or crocheted and swimwear) 537,000 Cutting of fabric and making up.
6205.20 Men’s or boys’ shirts of cotton, not knitted or crocheted 182,000 Cutting of fabric and making up.
62.10 Garments made up of fabrics of heading 56.02, 56.03, 59.03, 59.06 or 59.07 (excluding knitted or crocheted, and babies’ garments) 19,000 Cutting of fabric and making up.
62.11 Tracksuits, ski suits, swimwear and other garments, not elsewhere specified or included (excluding knitted or crocheted) 85,000 kilograms Cutting of fabric and making up.
62.12 Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, of all types of textile materials, whether or not elasticated, including knitted or crocheted (excluding belts and corselets made entirely of rubber) 26,000 dozens

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