Market Access Initiative for the less developed countries (LDC) and related Issues: A Canada perspective (Part-1) - Schain24.Com

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

Some of
the terms used to describe the Market Access Initiative and  Tariff facility provided by Canada discussed
below :
Beneficiary Country:
A beneficiary country is entitled for General Preferential tariff
(GPT), LDC or MFN tariff facilities.
Certificate of origin is
issued as Form B255 for textiles & apparel. Form ‘A’ or Exporter’s
Statement of Origin for every other things .

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
(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:


It is required that to be eligible to issue B255 and be
eligible for benefits of Market Access
Initiative must
sign a Memorandum of
with the Canada
government ,so that CCRA can audit and investigate the shipments claiming
eligibility under this Market Access
Canada’s  Foreign Affrairs
and International trade has a list of signatories in the below website:
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
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, Hong
Kong, 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
All tariff categories for Canada:
Information of all tariff categories mentioned in the below
mentioned Canada Government website:
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:

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