Canada Korea Free Trade Agreement Certificate of Origin.

  • May 12 2023

The Canada-Korea Free Trade Agreement (CKFTA) is a bilateral trade agreement between Canada and South Korea that was implemented on January 1, 2015. Under this agreement, Canada and South Korea have eliminated or reduced tariffs on numerous goods, including agricultural products, raw materials, and manufactured goods. To benefit from the concessions granted by the CKFTA, Canadian exporters must comply with the agreement`s rules of origin and obtain a Certificate of Origin (COO) for their products.

A COO is a document that certifies the origin of a product and enables it to be exported to a country that has a free trade agreement with Canada. In the case of the CKFTA, the COO confirms that the product meets the origin requirements of the agreement and is entitled to the preferential tariff treatment.

The CKFTA COO is issued by the exporter or a recognized authority such as a Chamber of Commerce. It must include specific information about the product, the exporter, and the origin of the goods, including the tariff classification, the value, and the production process used to manufacture the product. The document must also be signed and stamped by the issuer and be in English or French.

To obtain a CKFTA COO, Canadian exporters must ensure that their products meet the origin requirements set out in the agreement. The CKFTA has specific rules of origin that provide details on how to determine if a product qualifies as originating from Canada or South Korea. The rules take into account various factors, such as the production process, the materials used, and the percentage of value added in each country.

Canadian exporters must also ensure they have all the necessary documentation to support their claim of origin, such as bills of materials, invoices, and shipping documents. The documentation must be kept for seven years after the export of the product.

In summary, the CKFTA provides significant trade opportunities for Canadian exporters. However, to benefit from the agreement`s preferential treatment, exporters must comply with the CKFTA rules of origin and obtain a COO. With the right documentation and a thorough understanding of the agreement`s requirements, Canadian exporters can take advantage of the CKFTA and increase their competitiveness in the South Korean market.