Free trade agreements do not mean an “open border” with regard to the compliance requirements for merchandise trade among the parties. Complying with rules of origin and other requirements is sometimes so complicated and time-consuming that companies find it’s not worth the trouble or the risk of penalties for non-compliance. Non-compliance with trade agreements means that you will have to pay not only full duty without any preference rate but also there are chances of getting financial penalties and losing import privileges. Non compliance can also harm the business relationships of Canadian exporters and manufactures  with their trading partners  other countries and thus increasing the risk of losing of foreign markets.  

What can we do to reduce the non-compliance risk ?

  • Reviewing your FTAs compliance system to identify errors in the compliance process and recommending remedial measures to reduce the noncompliance risk.
  • Compiling information regarding all the international trade agreements signed by Canada along with rules of origin and other regulations for using as a reference while ensuring FTAs compliance process.
  • Analysing all the certificates of origins received from suppliers for accuracy, authenticity, and completeness.
  • Ensuring that you meet all the conditions required to qualify for zero or preferential duty rates and thus get maximum possible duty savings from your compliance.
  • Ensuring that all the information regarding FTAs regulations and requirements are updated regularly and you continuously enjoy good reputation and confidence of CBSA and your clients.
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