The Canada-Panama Free Trade Agreement (CPFTA) was signed in 2012 and came into force on April 1st, 2013. The agreement was designed to promote and facilitate trade between the two countries by eliminating tariffs on goods and services and creating new opportunities for businesses in Canada and Panama.
Under the CPFTA, exporters from Canada are required to provide a certificate of origin (CO) to qualify for preferential tariff treatment. A CO is a document that certifies that the goods being exported originated from Canada and meet the criteria set out in the agreement.
The purpose of the CO is to demonstrate to customs officials in Panama that the goods qualify for preferential tariff treatment. This means that the goods will be subject to lower or zero tariffs than non-originating goods, which can result in significant cost savings for exporters.
To obtain a CO, the exporter must provide a statement on the commercial invoice or other document that identifies the goods and certifies that they meet the origin requirements set out in the CPFTA. The statement must include the following information:
– The name, address, and contact information of the exporter
– The name, address, and contact information of the importer
– A description of the goods
– The HS code of the goods
– The country of origin
– The signature and date of the exporter or authorized representative
In addition to the statement on the commercial invoice, exporters may be required to provide additional documentation to support the CO, such as a bill of materials, manufacturing records, or other documents that demonstrate that the goods qualify for preferential tariff treatment.
It is important for exporters to ensure that they understand the rules of origin set out in the CPFTA and that they are able to provide the required documentation to support their CO. Failure to comply with the CPFTA rules can result in the loss of preferential tariff treatment, which can be costly for businesses.
In conclusion, the CPFTA provides significant opportunities for Canadian exporters to expand their business into the Panamanian market. However, it is important for exporters to understand the rules of origin and to provide the necessary documentation to support their CO. By doing so, Canadian businesses can take advantage of the preferential tariff treatment provided under the CPFTA and increase their competitiveness in the Panamanian market.