CIFTA Rules of Origin Regulations (SOR/97-63)

Regulations are current to 2016-06-06

Accessories, Spare Parts and Tools, Indirect Materials, Packaging Materials and Containers and Packing Materials and Containers

 For the purposes of determining whether a good is an originating good, the following materials shall be deemed to be originating materials:

  • (a) accessories, spare parts or tools delivered with the good that form part of the good’s standard accessories, spare parts or tools, where the accessories, spare parts or tools are not invoiced separately from the good and the quantities and value of the accessories, spare parts or tools are customary for the good;

  • (b) indirect materials used in the production of the good;

  • (c) packaging materials and containers in which the good is packaged for retail sale, where the packaging materials and containers are classified with the good that is packaged within; and

  • (d) packing materials and containers in which the good is packed for shipment.

Non-qualifying Operations

 A good is not an originating good merely by reason of

  • (a) any work, process or practice in respect of which it may be demonstrated, on the basis of a preponderance of evidence, that the object was to circumvent these Regulations;

  • (b) minor processing; or

  • (c) a change in tariff classification that is the result of

    • (i) a change in the end use of the good, or

    • (ii) collecting parts so that the collection of parts is classified as if it were an assembled good under Rule 2(a) of the General Rules for the Interpretation of the Harmonized System.

Conditions Governing Shipment

 An originating good that is exported from a CIFTA country shall maintain its originating status only if

  • (a) the good is shipped from a CIFTA country to another CIFTA country without being shipped through another country;

  • (b) the good is shipped through a country other than the United States or a CIFTA country and

    • (i) the good does not undergo further production or any other operation in the territory of the country through which the good is shipped, other than unloading, splitting up of loads, reloading or any other operation necessary to preserve it in good condition or to ship it to a CIFTA country, and

    • (ii) the good remains under customs control in any country through which the good is shipped to a CIFTA country;

  • (c) except for a good listed in any of Chapters 50 through 63 of the List of Tariff Provisions, the good is shipped through the United States and

    • (i) the good does not undergo further production in the territory of the United States, other than minor processing, or

    • (ii) any processing that occurs in the territory of the United States with respect to that good does not increase the transaction value of the good by greater than 10%; or

  • (d) the good is a good that is listed in any of Chapters 50 through 63 of the List of Tariff Provisions and that is shipped through the United States and

    • (i) the good does not undergo further production or any other operation in the territory of the United States, while in transit, other than unloading, splitting up of loads, reloading or any other operation necessary to preserve it in good condition or to ship it to a CIFTA country, and

    • (ii) the good remains under customs control in the United States while in transit to a CIFTA country.

  • SOR/2002-252, s. 3.

 For the purpose of section 7, territory, with respect to the United States, has the same meaning as in subsection 2(1) of the NAFTA Rules of Origin Regulations.

  • SOR/2002-252, s. 4.

Non-Party Materials

  •  (1) A good that would qualify for preferential tariff treatment under the Agreement on the Establishment of a Free Trade Area between the Government of the United States of America and the Government of Israel, dated April 22, 1985, if it were imported into Israel, is considered to be an originating material under these Regulations when used in the production in the territory of Canada of a good that is exported to Israel.

  • (2) A good that would be entitled to the benefit of the United States Tariff under section 3 of the NAFTA Tariff Preference Regulations if it were imported into Canada is considered to be an originating material under these Regulations when used in the production in the territory of Israel or another CIFTA beneficiary of a good that is exported to Canada.

Fungible Materials and Fungible Goods

 For the purposes of determining whether a material is an originating material or a good is an originating good,

  • (a) where originating materials and non-originating materials that are fungible materials are used in the production of the good, the determination of whether the material is an originating material may, at the choice of the producer of the good, be made on the basis of any of the inventory management methods set out in Part I of Schedule III;

  • (b) where originating goods and non-originating goods that are fungible goods are physically combined or mixed in inventory in a CIFTA country and, before exportation to another CIFTA country, do not undergo production or any other operation in the territory of the CIFTA country in which they were physically combined or mixed in inventory, other than unloading, reloading or any other operation necessary to preserve them in good condition or to ship them to another CIFTA country, the determination of whether the good is an originating good may, at the choice of the exporter of the good, be made on the basis of any of the inventory management methods set out in Part II of Schedule III; and

  • (c) where originating goods and non-originating goods that are fungible goods are physically combined or mixed in inventory in a CIFTA country and, before acquisition by a person in that country, do not undergo production or any other operation in the territory of that country, other than unloading, reloading or any other operation necessary to preserve them in good condition or to ship them to that person, the determination of whether the good is an originating good may, at the choice of the person who physically combined or mixed the goods in inventory, be made on the basis of any of the inventory management methods set out in Part II of Schedule III.

Self-Produced Materials

 For the purposes of determining whether a good is an originating good, the producer of the good may designate any material that the producer produces and that is used in the production of the good as a material to be taken into account as an originating material or non-originating material, as the case may be, in determining whether the good satisfies the requirements of section 2 or for the purposes of the calculation in section 4.

Coming into Force

 These Regulations come into force on the day on which section 45 of the Canada-Israel Free Trade Agreement Implementation Act, being chapter 33 of the Statutes of Canada, 1996, comes into force.

 
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