Canada’s Updated Tariff Programs for Jan. 1, 2025


Trade Update • Dec. 3, 2024

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anada is set to modernize its General Preferential Tariff (GPT) and Least Developed Country Tariff (LDCT) programs effective January 1, 2025. These updates aim to align tariff provisions with Canada’s current trade priorities and enhance program utilization by reflecting updated economic conditions in beneficiary countries.

Key Updates

General Preferential Tariff (GPT) are tariff reductions or duty-free treatment for the majority of goods imported from developing countries. Least Developed Country Tariff (LDCT) are comprehensive duty-free treatment for virtually all goods imported from least developed countries (LDCs).

Changes to Beneficiary Countries

  • Removed from GPT (Jan 1, 2025): Armenia, Belize, British Virgin Islands, Fiji, Georgia, Guatemala, Guyana, Iraq, Marshall Islands, Moldova, Nauru, Paraguay, Tonga, Turkmenistan, Tuvalu, Vietnam.
  • Reinstated to GPT (Jan. 1, 2025): Lebanon, Tunisia
  • Removed from LDCT (Jan. 1, 2025): Cape Verde, Samoa, Vanuatu, Tuvalu.
  • Removed from LDCT (over a 3-year period): Sao Tome and Principe in 2024, Bangladesh, Laos and Nepal in 2026, and Solomon Islands in 2027.

Introduction of GPTP

  • The new General Preferential Tariff Plus (GPTP) program will extend tariff benefits to countries adhering to international norms on sustainable development, labor, and human rights. Details will be operationalized post-2025.
Implementation and Industry Impact

Industries, especially in apparel and textiles, should note revised origin and shipment provisions that may affect tariff eligibility. Canadian importers are encouraged to review the detailed changes outlined below, as they will come into effect across all programs on January 1, 2025.

Rules of Origin Changes

  • Proposed Changes:
    • Liberalization and harmonization of rules across all Canadian trade programs.
    • Cutting and sewing of fabrics in developing and least developed countries (LDCs) will confer origin on final apparel products.
    • No restrictions based on the origin of yarn and fabric.
  • Benefits:
    • Simplifies compliance for apparel importers and stakeholders.
    • Maximizes utilization of tariff benefits across programs, including GPT and GPTP.
    • Aligns Canada’s rules with those of the European Union and Japan for consistency

Shipping Requirements

  • Eligibility for Preferential Tariff Programs: Goods must be shipped directly from a beneficiary country to Canada with acceptable documentation.
  • Proposed Changes:
    • Shipment requirements will be removed from the Customs Tariff and redefined in regulations.
    • Broaden acceptable documentary evidence for proof of direct shipment (no longer require a bill of lading).
    • Eliminate the six-month time limit on storage in intermediary countries.
  • Benefits:
    • Reflects modern business practices for shipping goods.
    • Prevents access restrictions to Canada’s programs due to administrative or logistical issues.
    • Aligns shipment requirements with Canada’s free trade agreements.

For more information on the updated GPT and LDCT, refer to Canada’s unilateral tariff preference programs for imports from developing countries.

Questions about these upcoming changes to Canada’s tariff programs and if your products are affected? Email us at: gts@ghy.com, or call: +1 (800) 667-0771

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