Claim the least developed countries preferential tariff rate
The Least Developed Countries Tariff (LDCT) is a preferential tariff treatment.
Imported goods that qualify for this tariff treatment enter Canada duty-free, if they meet specific origin rules.
Find out if the goods you are importing from a least developed country qualify.
Purpose of the tariff
The goal of the Least Developed Countries Tariff is to:
- reduce poverty
- promote development in designated countries
- provide these countries with duty-free access to the Canadian market
Eligible countries
Canada maintains a list of countries considered “least developed countries” for tariff purposes, based on the United Nations list.
The Customs Tariff contains a list of countries and their applicable tariff treatments, including the LDCT.
More information
Which goods qualify for preferential treatment
Almost all goods imported into Canada that originate in a least developed country can enter duty-free under the LDCT, provided they meet specific requirements.
The only imports that cannot enter duty-free under the preferential tariff are supply-managed products:
- dairy
- poultry
- egg products
If imports of these products go over Canada's set import limits (quotas), they don't qualify for duty-free entry.
In cases where goods do not meet LDCT requirements, they may still be eligible for a reduced duty rate through the General Preferential Tariff (GPT). All countries entitled to the LDCT treatment are also beneficiary countries of the GPT treatment.
How do imported goods qualify
To qualify for the Least Developed Country Tariff or the General Preferential Tariff rate, imported goods must:
- satisfy the rules of origin
- meet proof of origin requirements
- be shipped directly to Canada from an LDCT or GPT beneficiary country
Steps to determine if your goods are eligible for one of these tariffs:
- Consult the schedule of the Customs Tariff
- Identify their classification number
- Check the applicable preferential tariffs column
If there is no LDCT or GPT rate in the tariffs column, that means the goods are not entitled to them.
Instead, they are subject to the Most-Favoured-Nation Tariff (MFN) treatment. This rate is the standard duty rate when goods from a least developed country are not eligible for either of the preferential tariff rates.
More information
How to account for a tariff treatment
When importing goods from a least developed country, account for them in the commercial accounting declaration (CAD) in the CARM Client Portal.
Use one of the following tariff treatment codes in the CAD:
- For Least Developed Country Tariff use 08
- For General Preferential Tariff use 09
- For Most-Favoured-Nation Tariff use 02
More information
Steps the CBSA takes to verify the origin of goods
When the CBSA verifies the origin of goods imported from a least developed country, the exporter or producer of the goods will receive a letter or a questionnaire.
They must complete and return these documents as directed. A CBSA verification officer will review the documents and determine if the goods meet the rules of origin or if more information is required. In some cases, the CBSA may conduct an on-site visit of the exporter or producer's premises.
If the goods do not qualify for the LDCT, the exporter or producer will be notified, and the goods will be charged a duty at the next most beneficial rate (GPT or the MFN).
This rate will depend on the eligibility of the goods and the proof of origin provided to the CBSA.
Contact us
For any further questions, contact us online or by phone through CBSA's Border information services.
Related links
- Canadian Customs Tariff
- Canada's unilateral tariff preference programs for imports from developing countries
- CBSA departmental memoranda:
- Regulations
- Global Affairs Canada website
- Department of Finance website
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