New CPTPP Preferential Tariff For Peru
On September 19, 2021, the CPTPP entered into force for Peru, which then joined Canada, Australia, Japan, Mexico, New Zealand, Singapore and Vietnam as Parties to the Agreement. The List of Countries and Applicable Tariff Treatment schedule has not been updated to indicate Peru as a party and eligible for the CPTPP.
The CSCB has inquired to both CBSA and the Department of Finance Canada as to why this has not been updated and have received the following response from the International Trade Policy Division, Department of Finance Canada.
Implementing Canada’s tariff commitments to Peru under the CPTPP requires an Order in Council to be made, to amend the Schedule to the Customs Tariff. However, with the recent federal election, it was not possible to proceed with this Order during the writ period. With the Cabinet having been recently appointed on October 26, we are working to proceed with Treasury Board consideration of this Order. Once the Order has been made, the CBSA will be able to update its systems to reflect the CPTPP as a preferential tariff treatment for imports from Peru. The CBSA will also issue a Customs Notice to inform importers and customs brokers on how to claim the new preferential tariff.
In the interim, importers may continue to claim either the MFN tariff, or the preferential tariff of the Canada-Peru FTA if applicable.