CETA in force: what applies now
The Comprehensive Economic and Trade Agreement between the European Union and Canada has been provisionally applied since 21 September 2017, covering the parts of the agreement that fall within EU competence. The trade in goods provisions, including tariff liberalisation and the rules of origin, are fully in force under provisional application. For the vast majority of goods traded between the EU and Canada, CETA preference is available immediately.
The agreement has eliminated or reduced import duties on approximately 98% of tariff lines. Agricultural products, particularly those subject to supply management in Canada such as dairy and poultry, are exceptions where full liberalisation has not occurred. For industrial goods, chemicals, and most processed food products, the preferential rate is typically zero.
The full CETA text including the origin protocol is available on EUR-Lex. The product-specific rules are in Annex 5 of the CETA origin protocol, organised by HS chapter.
Self-certification: how CETA differs from older EU FTAs
CETA introduced a significant departure from the approach used in older EU agreements. Under CETA, any exporter can certify the origin of their goods by making an origin declaration on a commercial document. There is no EUR.1 certificate, no approved exporter authorisation required, and no minimum or maximum value threshold. A small Dutch SME exporting EUR 500 of goods to Canada uses exactly the same process as a large manufacturer exporting EUR 5 million worth.
The self-certification approach places the burden of accuracy on the exporter. By making the declaration, the exporter takes responsibility for ensuring the goods meet the applicable product-specific rules. If the declaration turns out to be incorrect, the exporter is liable for any resulting duty underpayment on the importing side, and both the exporter and importer face exposure to back-duty assessments and penalties.
The origin declaration text
The prescribed origin declaration text for CETA is set out in Annex 2 of the origin protocol. The text is:
"The exporter of the products covered by this document (Customs authorization No ...) declares that, except where otherwise clearly indicated, these products are of ... preferential origin."
The customs authorisation number field is for exporters who hold a customs export authorisation. For EU exporters without a formal authorisation, this field is left blank or marked "not applicable." The country of origin is inserted in the blank field. The declaration is placed on the invoice, delivery note, or other commercial document describing the goods with sufficient detail to identify them.
The CETA origin declaration does not require a signature or stamp. A printed declaration on a commercial document, or even an electronic declaration on an e-invoice, is valid. However, the document must be uniquely identifiable and linkable to the specific consignment. A blanket declaration that cannot be tied to a specific shipment is not valid proof of origin.
Product-specific rules under CETA
CETA's product-specific rules in Annex 5 use a combination of the same rule types found in other EU FTAs: change of tariff classification (CTC), maximum non-originating material (MaxNOM), and specific processes. For most industrial goods, CETA uses CTC rules at the heading level (CTH) combined with a 10% MaxNOM tolerance.
For some sectors, CETA's rules are notably more generous than those in EU agreements with developing countries or legacy FTAs. For example, CETA's rules for assembled electronics and machinery tend to allow more non-originating content than the rules under the Euro-Mediterranean agreements for similar products. This reflects the negotiating dynamic between two developed economies with sophisticated manufacturing sectors on both sides.
Processed agricultural products have their own rules, which are often more restrictive and sometimes include specific process requirements in addition to or instead of CTC rules.
Bilateral cumulation under CETA
CETA provides bilateral cumulation between the EU and Canada. EU-originating materials incorporated into Canadian production count as Canadian-originating for the purposes of the PSR test when the finished product is exported to the EU. Conversely, Canadian-originating materials incorporated into EU production count as EU-originating when the finished goods are exported to Canada.
There is no diagonal cumulation with third countries under CETA. Materials from the United States, for example, do not count as EU or Canadian originating even though both the EU and Canada have trade agreements with the US under separate frameworks (CETA for Canada-EU; CUSMA for Canada-US).
Bilateral cumulation under CETA is particularly valuable for industries with integrated EU-Canada supply chains in sectors like pharmaceuticals, aerospace, and automotive, where components may cross the Atlantic multiple times before becoming part of a finished product.
Verification of CETA origin declarations
Both Dutch Customs and the Canada Border Services Agency (CBSA) can request verification of origin declarations under CETA. The verification mechanism is described in Chapter 6 of the CETA origin protocol. Verification requests are sent to the customs authority of the exporting party, which then contacts the exporter to obtain documentary proof.
For Dutch exporters to Canada, a CBSA verification request goes to Dutch Customs, which forwards it to the exporter. The exporter must respond within the timescale specified in the CBSA's request, with documentary evidence demonstrating that the goods met the applicable PSR: bills of materials, supplier declarations, cost calculations, and production records.
If the Dutch exporter cannot substantiate the origin claim, CBSA will disallow the preference on the relevant shipments and issue a back-duty assessment to the Canadian importer. The Dutch exporter is not directly assessed by CBSA, but faces liability from the Canadian importer and potential enforcement action from Dutch Customs if the incorrect declaration constitutes a customs infringement under EU law.
For the full consequences framework when preference claims cannot be substantiated, see the article on what happens when you claim preference incorrectly. For the broader preferential origin framework within which CETA sits, see the overview article on preferential origin under EU trade agreements.