The General Preferential Tariff can reduce duty costs on eligible imports, but only when you can confirm that the goods qualify and support your claim with the right documentation.
The General Preferential Tariff (GPT) is one of Canada’s unilateral preferential tariff treatments. It can provide reduced or zero duty rates for eligible goods originating in certain countries.
Even under the GPT program, Canada does not apply one duty rate to all imported goods. The rate that applies depends on the tariff treatment claimed at the time of accounting, and that claim must be supported by the right conditions and documentation.
In this article, we explain what the General Preferential Tariff is, how it works, and what you need to get right when claiming it.
Established in 1974, the General Preferential Tariff (GPT) is a unilateral tariff treatment that allows Canada to offer reduced duty rates on eligible goods from designated developing countries.
GPT preferences cover over 80% of tariff lines for goods, with exceptions for most apparel and textile products, footwear, certain agricultural goods, and certain steel products.
Because it is unilateral, Canada extends this tariff treatment on its own terms and does not require the beneficiary country to provide the same treatment in return.
When it applies, you may use the GPT duty rate shown under the applicable tariff item instead of the Most-Favoured-Nation (MFN) rate.
In some cases, the GPT rate is lower than the MFN rate. In others, it may be the same. If no GPT rate is available for that tariff item, the MFN rate will generally apply.
GPT does not apply to all goods from a beneficiary country. It is both country-specific and product-specific.
Origin under GPT is not based on where the goods were shipped from. The goods must actually originate in the beneficiary country. In other words, they must either be wholly obtained there or have undergone sufficient processing there to meet the applicable rules of origin.
If goods are transshipped through an intermediate country, they may still qualify for GPT treatment, provided that they:
To meet the direct shipment requirement, evidence of the shipping route and customs control in the intermediate country must be presented to customs, together with proof of origin. This may include a through bill of lading or other equivalent documentation.
To support your GPT claim, you must have valid proof of origin from the exporter at the time of accounting. This can be:
If a General Preferential Tariff rate is available and lower than the MFN rate, it can provide duty-saving opportunities for your business.
However, GPT is governed by specific rules and regulations. It is not automatic.
When accounting for goods under the GPT, the correct tariff treatment code must be declared on your Commercial Accounting Declaration (CAD).
To claim GPT, it’s important to confirm three things before your shipment arrives:
If all conditions are met, the GPT claim may be made at the time of accounting.
At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses assess eligibility for preferential tariff treatment and support accurate duty claims.
Our team can work with you to:
We don’t believe in guesswork. We get it right the first time.
Reach out to one of our trade professionals to discuss whether the General Preferential Tariff may apply to your imports and how to support your claim.