Tuesday, 23 Jul 2019

What is LDCT and What is the purpose of LDCT in Canada?

The LDCT or the Least Developed Country Tariff is a special consideration of Canadians for the poorest countries around the world to bring their trade and business to the forefront of international trade and commerce with a view to alleviating poverty. The international consensus on elevating poverty creates the scope of developing the opportunities of business for the poorest countries of the world and give them a fair chance for enhancing their trade through the world economy. Enhanced business opportunities also result in economic growth and development of a country. Based on this concept, the Canadians formulated the LDCT in the year 1983. Get in touch with Clearit importing for availing all LDCT related assistance for your business in Canada.

The basic purpose of Canada in enacting and implementing LDCT is to encourage the business persons of the poorest countries through quota-free and duty-free flexible access to the Canadian market along with exports of goods from these countries. The Government of Canada expanded the scope of LDCT by including the textile, footwear and apparel in 2003.

Under LDCT, with very few exclusions, the goods that will be imported to Canada from the Least Developed Countries (LDCs) and produced or originated in the LDCs will be treated as duty-free status. However, dairy, poultry and egg products along with over-access are excluded from the provisions of LDCT. They are not treated as quota-free and duty-free as per LDCT. You are required to produce authentic proofs and documents to import specified and permitted products from your country if your country is in the list of LDCs as per the Canadian Government.

If in some cases the goods of LDCs do not qualify under LDCT, still the goods can access the Canadian market through GPT or General Preferential Tariff and MFN or Most Favoured Nation Tariff. There are different codes for the goods which should be accounted properly during importing. The codes are (1) for LDCT 08, (2) for GPT 09, and (3) for MFN 02.

The second major factor under LDCT is the proof of origin of goods in LDCs. There are two methods to prove the origin of goods. The first one is called the cumulative rule or wholly produced rule. The second method is specific to apparel and textile goods. All goods that are to be imported to the Canadian market must be certified under one of these two rules.

 

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