UK Trade Continuity Remission
United Kingdom Trade Continuity Remission Order, 2021: SOR/2020-290
The Order remits the difference between customs duties charged at the Most‑Favoured‑Nation (MFN) rate and the lower rate that would apply under the Trade Continuity Agreement (TCA) or CETA for goods from the United Kingdom that previously benefited from CETA. It applies to goods imported on or after 2021-01-01 until the Canada–UK TCA comes into force; claims for remission must be made to the Minister of Public Safety and Emergency Preparedness within two years of importation.
- Published
- January 6, 2021
- Department
- Unavailable
- Section
- United Kingdom Trade Continuity Remission Order, 2021
- Comment deadline
- Unavailable
- Effective date
- January 1, 2021
- Publication part
- Part II
Summary
Summary#
The United Kingdom Trade Continuity Remission Order, 2021 is a temporary measure that prevents a sudden rise in import duties on goods coming from the United Kingdom after January 1, 2021. It lets importers claim back the extra duty they would have paid because the UK stopped qualifying under the Comprehensive and Economic Trade Agreement (CETA) until the Trade Continuity Agreement (TCA) between Canada and the UK comes into force.
What it does#
- Remits (repays or forgives) the difference between the customs duty charged at the Most-Favoured-Nation rate and the lower rate that would apply under the TCA/CETA for goods that would have been eligible under CETA.
- Applies to goods imported from the United Kingdom (the Order names the Channel Islands, Gibraltar and the Isle of Man as included, and lists several other UK territories that are excluded).
- Requires a claim for remission to be made to the Minister of Public Safety and Emergency Preparedness within two years of the import date.
- Came into force on January 1, 2021 and lasts until the TCA between Canada and the UK is in force.
Who's affected#
- Canadian importers bringing goods from the United Kingdom that previously benefited from CETA tariff preferences.
- Exporters to the UK are indirectly affected because the UK has agreed to give similar temporary preferences to Canadian imports.
- Small businesses, customs brokers and freight-forwarders involved in UK–Canada trade.
- It is not clear from the Order which specific product lines or industries will see the biggest effect; that depends on which goods had preferential treatment under CETA.
Why it matters#
- It prevents immediate tariff increases for goods from the UK when CETA benefits stopped, so businesses avoid sudden cost shocks.
- It reduces uncertainty for importers and helps keep supply chains and pricing stable while the Canada–UK TCA is finalized and brought into force.
- Small businesses get the same protection as larger ones, which can help them stay competitive in the short term.
Key topics
Source: Canada Gazette