CBSA Updates Rules of Origin and Shipping Requirements for GPT and LDCT Imports
Importers should ensure their goods meet the applicable GPT or LDCT content rules, certification requirements, and direct shipment conditions before making a claim.
The Canada Border Services Agency (CBSA) has updated Memorandum D11-4-4, which explains the rules of origin and shipping requirements for GPT and LDCT imports.
The updated memorandum provides guidance for importers of commercial goods claiming General Preferential Tariff (GPT) or Least Developed Country Tariff (LDCT) treatment and follows CBSA’s recent clarification of shipping requirements for Most-Favoured-Nation (MFN) tariff treatment.
These tariff treatments may allow qualifying goods from eligible beneficiary countries to enter Canada at reduced duty rates, provided the goods meet the applicable requirements.
The update reflects changes to the administration of GPT and LDCT origin and shipping requirements.
The general GPT qualifying content threshold remains 60% of the ex-factory price from one or more GPT beneficiary countries or Canada.
However, the LDCT general content rule has changed, with goods now requiring at least 20% of the ex-factory price to originate in one or more least developed countries or Canada, compared with the previous regulations that had set a 40% LDCT content threshold.
The updated memorandum also sets out guidance for LDCT textile and apparel goods, with specific rules applying to apparel, T-shirts and certain pants, and made-up textile articles. Importers claiming LDCT treatment for goods under HS Chapters 50 to 63 should review the applicable origin criteria and ensure the required Certificate of Origin for textile and apparel goods is available.
CBSA also updated the direct shipment guidance for GPT and LDCT imports. Goods may be transshipped through another country if they remain under customs control, the importer can provide documentation showing the shipping route and all shipment and transshipment points, and the goods do not undergo further production or other operations outside the beneficiary country, other than activities necessary for transportation or preservation.
At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses review tariff treatment, origin documentation, and customs records to support compliance.
Reach out to one of our trade professionals to discuss whether your goods and supporting records meet GPT or LDCT tariff treatment requirements.