Tariff Duties on Imports from UK
Over 90% of United Kingdom Exports Enter Canada Duty Free
Oct 29, 2009
The top 25 UK products exported generated US$8.7 billion of the United Kingdom’s total $11.8 billion in sales to Canada during 2008.
This analysis presents rates for customs tariff duties that Canada Border Services Agency (CBSA) imposes on the top 25 product categories imported from the United Kingdom.
While Canada requires tariff payments on roughly 8% of the value of its top 25 imports from its closest European trading partner, 18 of UK product categories mentioned below require no customs duty at all.
Highest Tariff Duties on UK Imports
Because the United Kingdom and Canada have not signed a preferential tariff agreement, UK imports are covered under the generic tariff classification known as Most Favored Nation (spelled Most Favoured Nation in Canada).
Presented below are Canada customs tariff rates for 7 of the most popular imported UK products in 2008 that are subject to Canadian tariffs. The 6-digit international tariff classification code is shown within brackets.
In total, these categories represent roughly $800 million worth of made-in-the United Kingdom products on which the CBSA assessed customs duties.
- 8% duty on petroleum oils excluding crude or light (code 271019) … US$66 million
- 6.1% duty on larger passenger cars (870324) … $187.5 million
- 6.1% duty on small passenger cars (870323) … $140 million
- 6% duty on yard-shunting wheeled tractors (870190) … $91.3 million
- 6% duty on herbicides and other plant products (380893) … $46.8 million
- 5% duty on light petroleum oils (271011) for retail sale, otherwise 8% … $264.9 million
- 4% duty on special industrial chemicals (291470) … $56.6 million.
Duty-Free Imports from the UK into Canada
The 18 product classifications below represent some of the largest and fastest-growing imported products from the United Kingdom in 2008. Sales of UK-made aircraft to Canada were up over 40 times in 2008 from only $933,000 in 2007. Similarly, imported scrap gold including jewelry spiked 2600% from $134.9 million in 2007.
Yet while the leading imports below total approached US$8 billion in sales for the United Kingdom, Canada generates no tariff revenues from these the United Kingdom-sourced goods.
The list is sorted based on imports with the highest sales in 2008.
- Crude petroleum oils (code 270900) … US$4.9 billion in 2008 sales
- Airplane and helicopter parts (880330) … $770 million
- Amino acid medicines and extracts (300490) … $595.6 million
- Turbo-Jets (841112) … $399.6 million
- Parts for gas turbines (841199) … $221.3 million
- Parts for turbo-jets and turbo-propellers (841191) … $215.4 million
- Scrap gold including jewelry (711291) … $134.9 million
- Alkaloid medicines or derivatives (300440) … $107.7 million
- Whiskies (220830) including bourbon, scotch and rye … $95.8 million
- Dumper vehicles (870410) for off-highway use … $84.7 million
- Black tea in bags for individual serving (090230) … $62.6 million
- Aircraft seats (940110) … $53.2 million
- Printed publications including books and brochures (490199) … $52.3 million
- Blood products like anti-sera (300210) … $48 million
- Newspapers, journals and periodicals (490290) … $43.7 million
- Computer parts and accessories (847330) … $43.6 million
- Aircraft weighing over 15,000 kilograms (880240) … $42.9 million
- Drilling machinery parts (843143) … $42.8 million.
No Preferential Tariff for United Kingdom
To put the above statistics into perspective, the United Kingdom’s $11.8 billion in exports accounted for 2.9% of the total value of Canadian imports from all countries in 2008.
Even though many of Canada’s first settlers can trace their roots back to the UK, Canada does not have preferential tariffs for its fellow Commonwealth member. In contrast, Canada has bestowed general preferential tariff treatment to smaller countries like Ghana and even Fiji.
However, a preferential tariff agreement between Canada and the UK would not appear to be a pressing priority. This is because duty-free products represent over 90% of the value of imports that the UK shipped into Canada during 2008.
Sources: Industry Canada's Trade Data Online, based on Statistics Canada reports as of October 28, 2009 and Canada Border Services Agency's online customs tariff manual.
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