Canada first implemented its GSP regime in 1974. Currently, the General Preferential Tariff (GPT) is offered to the developing countries and the Least Developed Country Tariff (LDCT) is offered to the LDCs. Under these, lower-than-normal tariff rates for imports in Canada are available.
Effective from January 1, 2015, Canada withdrew GPT benefits from 72 higher-income and trade-competitive countries (e.g. Korea, China, Brazil). It also withdrew LDCT benefits from two former LDCs (Equatorial Guinea and Maldives).
Under the LDCT, about 8497 product tariff lines or about 98.9% of Canada’s tariff schedule enters Canada duty free from the LDC countries. Bangladeshi RMG products (both knitwear and woven) enjoy duty free benefits under the LDCT scheme.
After the Hong Kong Ministerial Declaration that mandated the Developed Countries to offer Duty Free Quota Free (DFQF) access to the LDCs, Canada uses its GSP facility for LDCs as the Canada DFQF to the LDCs.
Products exported by eligible countries under the GPT and LDCT must comply with Rules of Origin provisions in order to receive preferential treatment. Canadian Rules of Origin is very liberal, and Bangladeshi products needs to fulfill only 25% local value addition criteria if raw materials are imported from Canada or any GPT beneficiary country.
To download the General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulation SOR/2013/165, click here.
For more details and updated information on Canada GSP issues, visit www.cbsa-asfc.gc.ca/menu-eng.htm.