What is CKFTA - The Canada – Korea Free Trade Agreement?

The Canada – Korea Free Trade Agreement (CKFTA) which was implemented on January 1st 2015 will essentially eliminate the customs duties on all imports from Korea, either immediately upon implementation of the agreement, or through a tariff phase-out.

Tariff phase-out is a program implemented which begins with a reduction in duty rates and eventually leads to a tariff elimination. It could take years until the tariff is completely eliminated as was the case with the North American Free Trade Agreement (NAFTA)

While some Tariffs will be duty free based on the classification of the product/commodity, some will simply have a reduced duty rate (similar to the GPT). A new preferential tariff treatment is being introduced which is called the Korea Tariff. The newly assigned tariff treatment code is: KRT

The CKFTA is to be completed by the manufacturer/exporter in Korea and must be submitted along with the customs documents at the time of import. If a tariff is dutiable as per CBSA Customs Tariff and has an opportunity for a reduced duty rate under the KRT treatment, when a valid CKFTA is provided the KRT reduced rate will be implemented.

To download the PDF form and for instructions on completing the Certificate of Origin please visit the CBSA website below.

http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/bsf760-eng.html

For more information on the Canada - Korea Free Trade Agreement please click the link below

http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/korea-coree/mem-protocole.aspx?lang=eng 

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