The EU Parliament recently approved the Comprehensive Economic and Trade Agreement (CETA). Now the Canadian parliament must also approve the free trade agreement. Then the way is clear for the provisional applicability of the agreement. As with any preferential tariff scheme, entrepreneurs will only benefit from Customs concessionsif they fulfil the conditions of the agreement. Find out more about the regulations of CETA now.
Customs discounts under CETA
The provisional application concerns in particular the provisions of CETA on tariff reductions. According to the Commission, from the first day of provisional application, EU companies will save around €500 million annually in tariffs that have been paid so far. A significant increase in economic relations is also to be expected.
Like other preferential agreements, CETA also links the tariff reduction to the requirement that proofs of origin are presented on importation. Declarations of origin on an invoice or other commercial document will suffice as proof of origin. The German customs administration has already stated that the declarations of origin are to be issued by a Registered Exporter (REX). Companies should therefore apply for REX status early.
Ratification by EU Member States
Once the Canadian Parliament has approved the agreement, the way is clear for provisional application. The final applicability of CETA, in particular many provisions going beyond tariff preferences, will require ratification by EU Member States. How ratifications are to be implemented in detail depends in particular on the constitutional requirements of the Member States.
Nevertheless, companies can benefit from the trade facilitation of the agreement even before it is ratified by the EU Member States. Comprehensive knowledge of the provisions of the agreement and the timely application for REX status provide a considerable competitive advantage
O&W Attorneys at Law advise on the CETA Free Trade Agreement and assist you in applying for the status of Registered Exporter (REX).
