Important Changes to the General Preferential Tariff (GPT)
Effective January 1, 2015
Why is Canada ending participation in the GPT program for certain countries?
In the 1970s the global economy was vastly different. During that time, Canada chose to support certain developing countries by introducing a more favourable tariff treatment known as the General Preferential Tariff. This tariff allows entry of certain goods at a much reduced rate of duty.
Since the 1970s, the economies of certain developing countries (particularly China, India and Brazil) have now surpassed that of Canada. Yet, until this recent consideration, all three countries would receive the same benefits as the poorest Third World countries. During this period of time, many in the West have modified their list of countries eligible for preferred duty status.
Effective January 1, 2015 goods originating in certain designated countries will no longer be eligible for GPT preferential tariff treatment.
This means the duty rates you are currently receiving under the benefits of the General Preferential Tariff (GPT) will no longer apply. As an example, if your goods are currently imported at 3% duty from China, effective January 1, 2015 they may attract a higher rate of duty depending on each specific tariff classification.
It should be noted that there are many new negotiated Free Trade Agreements that you may wish to employ.
Please ask us should you wish for a list of the current countries affected by this transition.