Canada adopted the Harmonized system (H.S.) of Tariff Classification on January 1, 1988. The H.S. Classification forms part of the Canadian Customs Tariff and indicates the rate of duty that will be assessed for all goods imported into Canada. In addition, the H.S. classification is a key component in determining origin of imported goods from a NAFTA perspective.

TARIFF TREATMENTS

MFN Tariff Rates

The MFN rate is the rate extended to all imports into Canada from any country in the world.

NAFTA Tariff Rates

On January 1, 1994, the United States, Canada and Mexico signed the North American Free Trade Agreement. This agreement has reduced or eliminated the tariff rates applicable to goods, which meet the origin requirement set forth in the agreement.

The UST (United States Tariff) continued the reduction of duty implemented when Canada and the United States signed a Free Trade Agreement in 1989. All items, which qualify for this tariff treatment were free of duty as of January 1, 1998.

The MT (Mexico Tariff) and MUST (Mexican-United States Tariff) are also scheduled for reduction, however, the reductions are dependent on the commodity.

Other Preferential Tariff Rates

Canada extends preferential tariff treatments on selected goods under any of the following tariff treatment categories:

GPT – General Preferential Tariff

LDDC – Least Developed Developing Country

CARIBCAN – Caribbean Commonwealth Country Tariff Treatment

CIAT – Canada Israeli Agreement Tariff

CT – Chile Tariff

CRT – Costa Rica Tariff

Goods arranged by a non-resident, that are sold for export to a Canadian firm are the subject of much debate. These scenarios generally require use of the price paid by the Canadian purchaser to develop the value for duty. The preferential rates shown are also only offered on condition that direct shipment and proof of origin requirements are met. We suggest that you initiate a discussion with our Trade & Regulatory Services Department so they can research your obligations and provide you with correct procedures to enjoy the lowest possible duty rates offered.