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

Regulations are current to 2014-09-29

DE MINIMIS

  •  (1) For the purposes of this section and section 4, de minimis content”, in respect of a good, means the value of all the non-originating materials used in the production of the good that do not, as a result of production occurring entirely in the territory of one or more of the CIFTA countries, undergo a change in tariff classification specified in the rule set out in Schedule I for the tariff provision under which the good is classified.

  • (2) Subject to subsections (3) and (4), a good originates in a CIFTA country where the de minimis content of the good is not more than 10 per cent of the value of the good, adjusted to an F.O.B. basis, and the good satisfies any other applicable requirement specified in the rule set out in Schedule I for the tariff provision under which the good is classified as a result of production occurring entirely in the territory of one or more of the CIFTA countries.

  • (3) Subsection (2) does not apply in respect of

    • (a) a non-originating material of Chapter 4 or of any of tariff item Nos. 1901.90.51, 1901.90.52, 1901.90.53, 1901.90.54 and 1901.90.59 that is used in the production of a good of Chapter 4 or of any of tariff item Nos. 1901.20.11, 1901.20.12, 1901.20.21, 1901.20.22, 1901.90.51, 1901.90.52, 1901.90.53, 1901.90.54 and 1901.90.59, heading No. 21.05 and tariff items Nos. 2106.90.31, 2106.90.32, 2106.90.93, 2106.90.94, 2202.90.41, 2202.90.42, 2202.90.43, 2202.90.49, 2309.90.31, 2309.90.33 and 2309.90.35;

    • (b) a non-originating material of any of subheading Nos. 0201.10 through 0201.30 and 0202.10 through 0202.30 that is used in the production of a good in Chapter 16;

    • (c) a printed circuit assembly (PCA) that is a non-originating material used in the production of a good, where a Chapter Note set out in Schedule I requires that the PCA be disregarded for the purposes of applying the rule set out in that Schedule for the tariff provision under which the good is classified;

    • (d) a non-originating material used in the production of a good of any of Chapters 1 through 19, heading Nos. 20.01 through 20.08, subheading No. 2009.90, heading Nos. 21.01 through 21.05, subheading No. 2106.10, tariff item No. 2106.90.92, heading No. 22.01, tariff item No. 2202.90.32 and heading Nos. 22.03 through 22.07, unless that non-originating material is of a different subheading than the good for which origin is being determined;

    • (e) a non-originating material of any of Chapters 50 through 64 that is used in the production of a good of any of Chapters 50 through 64; and

    • (f) a non-originating material used in the production of a good of any of subheading Nos. 3824.90, 8406.10 through 8406.82, 8415.10 through 8415.83, 8418.10 through 8418.69, 8421.12, 8422.11, 8450.11 through 8450.20, 8451.21 through 8451.29, heading Nos. 84.56 through 84.61, 84.62 through 84.63, subheading Nos. 8477.10 through 8477.20, 8477.30, heading Nos. 84.83, 85.01, subheading Nos. 8502.11 through 8502.39, 8516.31, 8516.33, 8516.40, tariff item No. 8516.60.20, subheading Nos. 8516.72, 8526.10 and 8540.71 through 8540.79.

  • (4) Where Schedule I sets out alternative rules for a good, subsection (2) applies only if the determination of whether the good is an originating good is being made under the first rule specified for that good.

  •  (1) For the purposes of subsection 3(2), the de minimis content of a good shall be calculated as follows:

    DMC = VNM ÷ VG × 100

     where

    DMC 
    is the de minimis content of the good, expressed as a percentage;
    VNM 
    is the value of all the non-originating materials used in the production of the good, determined in accordance with subsection (2) or (3), that do not undergo a change in tariff classification specified in the rule set out in Schedule I for the tariff provision under which the good is classified; and
    VG 
    is the value of the good, determined in accordance with subsection (4), adjusted to an F.O.B. basis.
  • (2) For the purposes of subsection (1), the value of a non-originating material

    • (a) shall be

      • (i) the transaction value of the material, determined in accordance with Article 1 of the Customs Valuation Code with respect to the transaction in which the producer of the good acquired the material, or

      • (ii) determined in accordance with Articles 2 through 7 of the Customs Valuation Code, where there is no transaction value or the transaction value of the material is unacceptable under Article 1 of that Code; and

    • (b) if not included under paragraph (a), shall include freight, insurance, packing and all other costs incurred in transporting the material to the point of importation.

  • (3) For the purposes of subsection (1), where identical materials or fungible materials are used in the production of the good, the value of non-originating materials may be determined, at the choice of the producer of the good, by one of the methods set out in Schedule II.

  • (4) For the purposes of subsection (1), the value of a good shall be

    • (a) the transaction value of the good, determined in accordance with Article 1 of the Customs Valuation Code with respect to the transaction in which the producer of the good sold the good; or

    • (b) determined in accordance with Articles 2 through 7 of the Customs Valuation Code, where there is no transaction value or the transaction value of the good is unacceptable under Article 1 of that Code.

  • (5) For the purposes of subsections (2) and (4), the principles of the Customs Valuation Code shall apply to domestic transactions, with such modifications as the circumstances may require.

  • (6) For the purposes of determining transaction value under subsections (2) and (4), Article 8(2) of the Customs Valuation Code does not apply.

  • SOR/2002-252, s. 2.