Market Access Initiative for the less developed countries (LDC) and related Issues: A Canada perspective (Part-1)

Posted on by ikram

Introduction:

There are terms related with Market Access initiative and Canada tariff facility. While third world countries like Bangladesh want to access in Canada market with their exports they need to know well about those terms.
The important terms are mentioned below:

Beneficiary Country:

A beneficiary country is entitled for General Preferential tariff (GPT), LDC or MFN tariff facilities.

Certification:

Certificate of origin is issued as Form B255 for textiles & apparel. Form ‘A’ or Exporter’s Statement of Origin for every other things .

CCRA:

CCRA is the Canada Customs and Revenue Agency. The organization is the controlling agency of LDC tariff facility. CCRA usually contact with clients from below address or regional offices. Origin and Valuation Division Trade Policy and Interpretation Directorate Customs Branch Canada Customs and Revenue Agency 191 Laurier Avenue West, 9th Floor Ottawa, ON K1A 0L5, Telephone:     (613) 941-5499 or 957-4351, Facsimile: (613) 954-5500.

Canada’s Map

Duty Elimination:

One of the benefits of “the market access initiative” from Canada is “duty elimination”. Before start this initiative LDCs faced 19%
tariffs on an average. Certain agricultural products such as dairy, poultry, egg products are not considered as duty free. Qualified goods, which enter in Canada from LDCs with proper “proof of origin documentation” after January  01,2003 would be entitled to the duty free
status. A detail information  of  eligible products for eligible duty free products are found in below mentioned website:

Shipping requirements to get the benefits as LDC goods:

The CCRA may check the thorough bill of lading showing the goods shipped directly to the consignee in Canada. The identity of the exporter in the origin country, the consignee’s identity, identity of the carrier or agent, the contracted routing of the goods, marks, numbers of package, place and date of issue of TBL should be informed through TBL. Air shipment and Air Way bill is also allowed. But the goods need to remain under Customs transit control. Goods should not undergo any operation in the intermediary country,
also should not remain in an intermediary country for a period over six months.

Rules of Origin and different tariff treatment:

Based on rules of origin, Tariff treatments are under three different tariff codes: LDC 08; GPT 09; MFN 02 according to CCRA internet site:
For duty free export to Canada  eligible for LDC Tariff facility, either must be fully produced at a LDC country or cumulative value addition by other LDC or Canada.To be considered for LDC cumulative, parts or production of goods is no more than 60% of the ex-factory price.Cerificate of Origin (B255) is required for goods originating in LDC which are under HS 50-63,which includes textile and apparel
goods originating in LDCs.A link for B255 given below:
https://www.yumpu.com/en/document/view/13728109/form-b255-certificate-of-origin-textile-and-apparel-goods-
It is required that to be eligible to issue B255 and be eligible for benefits of Market Access Initiative must sign a Memorandum of
understanding with the Canada government ,so that CCRA can audit and investigate the shipments claiming eligibility under this Market Access Initiative.Canada’s  Foreign Affrairs and International trade has a list of signatories in the below website:
www.dfait-maeci.gc.ca/tna-nac/DS/mou-en.asp.
List of  ex-GPT countries effective from Jan 1,2015 mentioned below by Canada government.They will be considered for MFN status rather than GPT status, which is meant as higher import duty if compared with GPT tariff due to becoming higher income countries:
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, HongKong, 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, U.S.A.
Above information is declared by Canada government in below website:
All tariff categories for Canada:
Information of all tariff categories mentioned in the below mentioned Canada Government website:
http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2013/html/countries-pays-eng.html

Conclusion:

To understand Apparel Supply Chain and other Supply Chain issues in a cross functional way, hope that above discussion will shade some light. Note:Please read first part of the article  also.
Bengali Version:
If you like to see a Bengali Version of this article , please visit below link:
http://www.slideshare.net/ikramhridinuha/ss-35779252#

Related Posts

VF-Corporation_Office

VF Corporation: A case study from supply chain management perspectives

In 1999, the company was acquired by VF Corporation, and was renamed as The Force in 2005, but reverted to the original brand name in 2010. In 2021, the Horace Small brand was sold to Redwood Capital Investments, LLC; and later became part of Workwear Outfitters. VF Corporation (VFC), an international footwear and apparel company founded in 1899 and headquartered in Denver, Colorado owns 19 brands including Altra, Bulwark, Dickies, Eagle Creek, Eastpak, Horace Small, Jansport, Kipling, Kodiak, Napapijri, Red Kap, Smartwool, Terra, The North Face, Timberland, VF Solutions, Vans, Walls, and Icebreaker.

Gold-supply-chain_F3

About the Gold Supply Chain Management: A brief discussion

  • ikram
  • September 22, 2019
  • 0

Abstract Gold is insoluble in nitric acid, which dissolves silver and base metals, a property that has long been used to refine gold and to attest the presence of gold in metallic objects, giving elevation to the term acid test.In the past, a gold standard was often implemented as a monetary policy, but gold coins ceased to be minted as […]

SCM-Career-F

What is a Supply Chain Management Job and Career?

Abstract In a case study, based on US-based companies, first-level management is of about 0-4 years. To understand the supply chain management job and career we can remind ourselves about the example of leaf cutter ants. APICS, founded in 1957 as American Production and Inventory Control Society and re-branded as The Association for Supply Chain Management in 2018, launched their […]

12 thoughts on “Market Access Initiative for the less developed countries (LDC) and related Issues: A Canada perspective (Part-1)”

  1. Hi Readers!
    Please read below mentioned article also:
    "Market Access Initiative for the less developed countries (LDC) and related Issues: A Canada perspective (Part-1) "
    It will help you understand "Market Access Initiative for the less developed countries (LDC) and related Issues: A Canada perspective (Part-2) "

    Please let me know, how you feel about the topic and if you like add your insight also.

    Hopefully, our next blog is under "SCM Basics" label .Will publish by end of this month(June,2014).

    You could subscribe to our blog also, to get our new articles by mail .

  4. WOW just what I was searching for. Came here by searching for contact lenses raisesAlso visit my webpage health instead

  5. SAP Business One Ireland

    Our network of IT professionals bring together the expertise to address IT related issues for SMEs. If we cannot provide you with help with your problem, we will do our utmost to point you in the right direction.
    We employ a consultative approach to ensure that all your requirements are met in a timley mannor and within budget. Website: http://www.thesmartoffice.ie

  7. Thanks for your nice comment.Supply Chain Management is a comparatively new concept on management, which is proved to be useful for businesses.

  10. What’s up everyone, it’s my first visit at this web page, and post
    is genuinely fruitful in support of me, keep up posting these types of articles.

  11. Thank you for any other informative website. Where else could I get that type of info written in such an ideal means? I’ve a venture that I am simply now running on, and I have been on the glance out for such information.

  12. Hello There. I found your blog using msn. This is a very well written article.
    I’ll make sure to bookmark it and come back to read more of your
    useful information. Thanks for the post. I will definitely return.

Leave a Reply