NAFTA Rules of Origin Regulations (SOR/94-14)

Regulations are current to 2014-12-08 and last amended on 2009-09-01. Previous Versions

Inability to Provide Sufficient Information

  •  (1) Where, during a verification of origin of a good, the person from whom a producer of the good acquired a material used in the production of that good is unable to provide the customs administration that is conducting the verification with sufficient information to substantiate that the material is an originating material or that the value of the material declared for purpose of calculating the regional value content of the good is accurate, and the inability of that person to provide the information is due to reasons beyond the control of that person, the customs administration shall, before making a determination as to the origin or value of the material, consider, where relevant, the following:

    • (a) whether the customs administration of the NAFTA country into the territory of which the good was imported issued an advance ruling under section 43.1 of the Customs Act with respect to that material that concluded that the material is an originating material or that the value of the material declared for purposes of calculating the regional value content of the good is accurate;

    • (b) whether an independent auditor has confirmed the accuracy of

      • (i) any signed statement referred to in these Regulations with respect to the material,

      • (ii) the information that was used by the person from whom the producer acquired the material to substantiate whether the material is an originating material, or

      • (iii) the information submitted by the producer of the material with an application for an advance ruling where, on the basis of that information, the customs administration concluded that the material is an originating material or that the value declared for the purpose of calculating the regional value content of the good is accurate;

    • (c) whether the customs administration has, before the start of the origin verification of the good, conducted a verification of origin of identical materials or similar materials produced by the producer of the material and determined that

      • (i) the identical materials or similar materials are originating materials, or

      • (ii) any signed statement referred to in these Regulations with respect to those identical materials or similar materials is accurate;

    • (d) whether the producer of the good has exercised due diligence to ensure that any signed statement that is referred to in these Regulations with respect to the material and that was provided by the person from whom the producer acquired the material is accurate;

    • (e) where the customs administration has access only to partial records of the person from whom the producer acquired the material, whether the records provide sufficient evidence to substantiate that the material is an originating material or that the value of the material declared for purposes of calculating the regional value content of the good is accurate;

    • (f) whether the customs administration can obtain, subject to sections 107 and 108 of the Customs Act, by means other than those referred to in paragraphs (a) through (e), relevant information regarding the determination of the origin or value of the material from the customs administration of the NAFTA country in the territory of which the person from whom the producer acquired the material was located; and

    • (g) whether the producer of the good, the person from whom the producer acquired the material or a representative of that person or producer agrees to bear the expenses incurred in providing the customs administration with the assistance that it may require for determining the origin or value of the material.

  • (2) For purposes of subsection (1), “reasons beyond the control” of the person from whom the producer of the good acquired the material includes

    • (a) the bankruptcy of the person from whom the producer acquired the material or any other financial distress situation or business reorganization that resulted in that person or a related person having lost control of the records containing the information that substantiate that the material is an originating material or the value of the material declared for the purpose of calculating the regional value content of the good; and

    • (b) any other reason that results in partial or complete loss of records of that producer that the producer could not reasonably have been expected to foresee, including loss of records due to fire, flooding or other natural cause.

  • (3) Where, during a verification of origin of a good, the exporter or producer of the good is unable to provide the customs administration conducting the verification with sufficient information to substantiate that the good is an originating good, and the inability of that person to provide the information is due to reasons beyond the control of that person, the customs administration shall, before making a determination as to the origin of the good, consider, where relevant, the following:

    • (a) whether the customs administration of the NAFTA country into the territory of which the good was imported issued an advance ruling under section 43.1 of the Customs Act with respect to that good that concluded that the good is an originating good;

    • (b) whether an independent auditor has confirmed the accuracy of an origin statement with respect to the good;

    • (c) whether the customs administration has, before the start of the origin verification of the good, conducted a verification of origin of identical goods or similar goods produced by the producer of the good and determined that the identical goods or similar goods are originating goods;

    • (d) whether the exporter or producer of the good has exercised due diligence to ensure that the information provided to substantiate that the good is an originating good is sufficient;

    • (e) where the customs administration has access only to partial records of the exporter or producer of the good, whether the records provide sufficient evidence to substantiate that the good is an originating good;

    • (f) whether the customs administration can obtain, subject to sections 107 and 108 of the Customs Act, by means other than those referred to in paragraphs (a) through (e), relevant information regarding the determination of the origin of the good from the customs administration of the NAFTA country in the territory of which the exporter or producer of the good was located; and

    • (g) whether the exporter or producer of the good or a representative of that person agrees to bear the expenses incurred in providing the customs administration with the assistance that it may require for determining the origin or value of the good.

  • (4) For purposes of subsection (3), “reasons beyond the control” of the exporter or producer of the good includes

    • (a) the bankruptcy of the exporter or producer or any other financial distress situation or business reorganization that resulted in that person or a related person having lost control of the records containing the information that substantiate that the good is an originating good; and

    • (b) any other reason that results in partial or complete loss of records of that exporter or producer that that person could not reasonably have been expected to foresee, including loss of records due to fire, flooding or other natural cause.

  • SOR/95-382, s. 1.