General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulations (SOR/2013-165)

2 (1) A good originates in a beneficiary country or a least developed country if the good is

• (a) a mineral product extracted from the soil or the seabed of the country;

• (b) a vegetable product harvested in the country;

• (c) a live animal born and raised in the country;

• (d) a good obtained in the country from a live animal;

• (e) a good obtained from hunting or fishing in the country;

• (f) a good obtained from sea fishing or any other marine good taken from the sea by a vessel of the country;

• (g) a good produced on board a factory ship of the country exclusively from a good referred to in paragraph (f);

• (h) waste and scrap derived from manufacturing operations of the country;

• (i) a used good of the country imported into Canada for use only for the recovery of raw materials; or

• (j) a good produced in the country exclusively from a product or good referred to in any of paragraphs (a) to (h).

(2) Goods originate in a beneficiary country if the value of the materials, parts or products originating outside that country, or in an undetermined location, and used in the manufacture or production of the goods is no more than 40% of the ex-factory price of the goods as packed for shipment to Canada.

(3) Goods other than those set out in Part A1, A3 or B of Schedule 1 originate in a least developed country if the value of the materials, parts or products originating outside that country, or in an undetermined location, and used in the manufacture or production of the goods is no more than 60% of the ex-factory price of the goods as packed for shipment to Canada.

(4) Goods set out in Part A1 or A2 of Schedule 1 originate in a least developed country if they are assembled in a least developed country from fabric cut in that country or in Canada, or from parts knit to shape, if the fabric or parts knit to shape are produced in

• (a) any least developed country or Canada from yarns spun or extruded in a least developed country, a country set out in Schedule 2 or Canada, if the yarns do not undergo further processing outside a least developed country, a country set out in Schedule 2 or Canada, and the fabric does not undergo further processing outside a least developed country or Canada; or

• (b) a country set out in Schedule 2 from yarns spun or extruded in a least developed country, a country set out in Schedule 2 or Canada, if

  • (i) the yarns and fabric do not undergo further processing outside a least developed country, a country set out in Schedule 2 or Canada, and

  • (ii) the value of any materials, including packing, that are used in the manufacture of the goods and that originate outside the least developed country in which the goods are assembled is no more than 75% of the ex-factory price of the goods as packed for shipment to Canada.

(4.1) Goods set out in Part A3 of Schedule 1 originate in a least developed country if they are assembled in a least developed country from fabric cut in a least developed country, a country set out in Schedule 2, an FTA partner country or in Canada, or from parts knit to shape, if the fabric or parts knit to shape are produced in

• (a) any least developed country or Canada from yarns spun or extruded in a least developed country, a country set out in Schedule 2, an FTA partner country or Canada, if the yarns do not undergo further processing outside a least developed country, a country set out in Schedule 2, an FTA partner country or Canada, and the fabric does not undergo further processing outside a least developed country or Canada; or

• (b) a country set out in Schedule 2 or an FTA partner country from yarns spun or extruded in a least developed country, a country set out in Schedule 2, an FTA partner country or Canada, if

  • (i) the yarns and fabric do not undergo further processing outside a least developed country, a country set out in Schedule 2, an FTA partner country or Canada, and

  • (ii) the value of any materials, including packing, that are used in the manufacture of the goods and that originate outside the least developed country in which the goods are assembled is no more than 75% of the ex-factory price of the goods as packed for shipment to Canada.

(5) For the purpose of subparagraph (4)(b)(ii), any materials used in the manufacture or production of the goods referred to in that subparagraph that originate in Canada are deemed to have originated in the least developed country.

(5.1) For the purpose of subparagraph (4.1)(b)(ii), any materials used in the manufacture or production of goods referred to in that subparagraph that originate in an FTA partner country or Canada are deemed to have originated in the least developed country.

(6) Goods set out in Part B of Schedule 1 originate in a least developed country if they are cut, or knit to shape, and sewn or otherwise assembled in the least developed country from fabric produced in any least developed country or Canada from yarns spun or extruded in a least developed country, a country set out in Schedule 2 or Canada, if the yarns do not undergo further processing outside a least developed country, a country set out in Schedule 2 or Canada and the fabric does not undergo further processing outside a least developed country or Canada.

(7) For the purpose of determining whether a good set out in Part A1, A2, A3 or B of Schedule 1 originates in a least developed country, paragraph 4(a), subparagraph (4)(b)(i), paragraph (4.1)(a), subparagraph (4.1)(b)(i) and subsection (6) apply only to the fabric or parts knit to shape that determine the tariff classification of the good, identified in accordance with the General Rules for the Interpretation of the Harmonized System set out in the Customs Tariff.

(8) For the purpose of subsection (2), the following are deemed to have originated in the beneficiary country:

• (a) any materials, parts or products used in the manufacture or production of the goods referred to in that subsection and originating in any other beneficiary country or in Canada; and

• (b) any packing required for the transportation for the goods referred to in that subsection, not including packing in which the goods are ordinarily sold for consumption in the beneficiary country.

(9) For the purpose of subsection (3), the following are deemed to have originated in the least developed country:

• (a) any materials, parts or products that are used in the manufacture or production of the goods referred to in that subsection and that

  • (i) originate in any other least developed country or in Canada, or

  • (ii) have a value of no more than 20% of the ex-factory price of the goods, as packed for shipment to Canada, and originate in a country set out in Schedule 2, other than a least developed country; and

• (b) any packing required for the transportation of the goods referred to in that subsection, not including packing in which the goods are ordinarily sold for consumption in the least developed country.