The Withdrawal of the General Preferential Tariff (GPT) From 72 Current Beneficiary Countries
Canada’s preferential tariff treatment for developing countries, the General Preferential Tariff (GPT), was first implemented in 1974. At present this treatment offers duty-free or preferential market access to import of most products from 176 designated beneficiaries. However on January 1, 2015 entitlement to the General Preferential Tariff (GPT) will be withdrawn for goods originating from 72 higher-income and trade-competitive countries. These countries’ goods will be accounted for under the Most-Favoured-Nation Tariff (MFN). Importers need to be aware of the countries that fall in this group in preparation for this change as it affects the cost of duty to clear some goods originating from these countries that the GPT entitlement has been withdrawn.
Importers who claim for the GPT after January 1, 2015 should have in their possession proof that such goods were in transit to Canada before January 1, 2015. Proof may include, but is not limited to, the following documentation: sales orders, purchase orders, shipping documents (specifically the through bill of lading (TBL)), report of entry documents, and cargo control documents. The TBL must indicate that the goods started their journey to a consignee in Canada before January 1, 2015. A Canada Border Services Agency officer may request documentary proof at any time. It is also very important to note that a proof of origin remains a requirement when claiming the GPT.
The following countries are from which the GPT entitlement has been withdrawn are:
Algeria, American Samoa, Antigua and Barbuda, Antilles, Netherlands, Argentina, Azerbaijan, Bahamas, Bahrain, Barbados, Bermuda, Bosnia and Herzegovina, Botswana, Brazil, Brunei, Cayman Islands, Chile, China, Colombia, Costa Rica, Croatia, Cuba, Dominica, Dominican Republic, Ecuador, Equatorial Guinea, French Polynesia, Gabon, Gibraltar, Grenada, Guam, Hong Kong, India, Indonesia, Iran, Israel, Jamaica, Jordan, Kazakhstan, Kuwait, Lebanon, Macao, Macedonia, Malaysia, Maldives, Mariana Islands, Mauritius, Mexico, Namibia, New Caledonia and Dependencies, Oman, Palau, Panama, Peru, Qatar, Russia, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Seychelles, Singapore, South Africa, South Korea, Suriname, Thailand, Trinidad and Tobago, Tunisia, Turkey, Turks and Caicos Islands, United Arab Emirates, Uruguay, Venezuela, and Virgin Islands and U.S.A..