Free Trade Agreement Advance Rulings Regulations (SOR/97-72)

Regulations are current to 2017-07-03 and last amended on 2016-06-14. Previous Versions

Free Trade Agreement Advance Rulings Regulations

SOR/97-72

CUSTOMS ACT

Registration 1996-12-30

Free Trade Agreement Advance Rulings Regulations

P.C. 1996-2084 1996-12-30

Whereas the proposed NAFTA and CIFTA Advance Rulings Regulations implement a provision of CIFTA and otherwise make no material substantive change in an existing regulation and are therefore, by virtue of paragraphs 164(4)(a.03)Footnote a and (d) of the Customs ActFootnote b, not required to be published under subsection 164(3) of that Act;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to section 43.1Footnote c, paragraphs 164(1)(i)Footnote d and (j) and subsection 164(1.1)Footnote e of the Customs Actb, hereby makes the annexed NAFTA and CIFTA Advance Rulings Regulations.

Interpretation

 The definitions in this section apply in these Regulations.

Act

Act means the Customs Act. (Loi)

advance ruling

advance ruling means an advance ruling given under paragraph 43.1(1)(a) or (b) of the Act. (décision anticipée)

material

material means a good that is used in the production of another good, and includes a part or an ingredient. (matière)

  • SOR/2005-256, s. 17.

Classes of Persons Eligible to Apply for an Advance Ruling

 An application for an advance ruling in respect of goods proposed to be imported from a free trade partner may be made by any member of the following classes of persons:

  • (a) importers of those goods in Canada;

  • (b) persons who are authorized to account for those goods under paragraph 32(6)(a) or subsection 32(7) of the Act;

  • (c) exporters and producers of those goods in a free trade partner other than Canada;

  • (d) if the goods are produced in a NAFTA country other than Canada or in Chile, Costa Rica, Peru, Colombia, Jordan or in Panama, producers in a NAFTA country other than Canada or in Chile, Costa Rica, Peru, Colombia, Jordan or Panama of a material that is used in the production of those goods; and

  • (e) where the goods are produced in Israel or another CIFTA beneficiary, producers in Israel or another CIFTA beneficiary or in the United States of a material that is used in the production of those goods.

  • SOR/97-331, s. 3;
  • SOR/2004-124, s.1;
  • SOR/2013-213, ss. 11, 20;
  • SOR/2014-282, s. 2;
  • SOR/2016-145, s. 2.

 [Repealed, SOR/97-331, s. 4]

Application for an Advance Ruling

 An application for an advance ruling in respect of goods shall be made not less than 120 days before the date of importation of the goods.

 An application for an advance ruling shall be made in English or French.

 Where, during the course of an evaluation of an application for an advance ruling, an officer determines that the information contained in the application is insufficient to make a ruling, the officer may request supplemental information from the applicant and shall specify a period of not less than 30 days within which the information shall be provided.

  • SOR/97-331, s. 5(E).

Advance Ruling

General

 An officer shall give consistent advance rulings with respect to applications for advance rulings that are based on facts and circumstances that are identical in all material respects.

 An officer shall provide the applicant with a full explanation of the reasons for an advance ruling.

  • SOR/2004-124, s. 2.

 An advance ruling shall be made in writing, in the same language as the language of the application for the advance ruling, and given to the applicant.

Application

 An advance ruling in respect of goods shall be effective

  • (a) on the date on which it is given; or

  • (b) on a later date specified in the advance ruling, which is not later than the date of importation of the goods.

 An advance ruling shall apply to goods that are the subject of the advance ruling and are imported on or after the effective date of the advance ruling.

 An advance ruling shall remain in effect and shall be honoured by the Minister if

  • (a) there is no change in the material facts or circumstances on which it is based;

  • (b) all of its terms and conditions are complied with; and

  • (c) it has not been revoked.

  • SOR/2001-108, s. 3(F).

Declining and Postponing the Issuance of an Advance Ruling

[SOR/97-331, s. 6]
  •  (1) An officer may postpone the issuance of an advance ruling in respect of goods where goods other than those that are the subject of the advance ruling are the subject of one of the following processes the result of which is likely to affect the advance ruling:

    • (a) a verification of origin under section 42.1 of the Act;

    • (b) a re-determination or further re-determination of origin under section 59, 60 or 61 of the Act; or

    • (c) a hearing before the Canadian International Trade Tribunal or any court.

  • (2) An officer may decline or postpone the issuance of an advance ruling where the applicant fails to provide supplemental information requested under section 6 within the period specified.

  • SOR/97-331, s. 7;
  • SOR/98-53, s. 11;
  • SOR/2001-108, s. 4.

Modification or Revocation of an Advance Ruling

Grounds for Modification or Revocation

[SOR/97-331, s. 8]

 An officer may modify or revoke an advance ruling given in respect of goods that are the subject of the advance ruling

  • (a) if the advance ruling is based on an error

    • (i) of fact,

    • (ii) in the tariff classification of the goods or of the materials used in the production of the goods,

    • (iii) in the case of goods exported from a NAFTA country, from Chile or from Costa Rica, in the application of a regional value content requirement under Chapter Four of NAFTA, Chapter D of CCFTA or Chapter IV of CCRFTA, as the case may be,

    • (iv) in the case of goods exported from a NAFTA country, in the application of the rules for determining whether goods qualify as goods of a NAFTA country under Annex 300-B or 302.2 or Chapter Seven of NAFTA,

    • (v) in the case of goods exported from a NAFTA country, in the application of the rules for determining whether the goods are qualifying goods under Chapter Seven of NAFTA, or

    • (vi) in the case of goods exported from a NAFTA country, Chile, Costa Rica, Peru, Colombia, Jordan or Panama, in the application of the rules for determining whether the goods that re-enter Canada after being exported from Canada to another NAFTA country, Chile, Costa Rica, Peru, Colombia, Jordan or Panama for repair or alteration qualify for treatment that is free of customs duty under Article 307 of NAFTA, Article C-06 of CCFTA, Article III.6 of CCRFTA, Article 205 of CPFTA, Article 205 of CCOFTA, Article 2-4 of CJFTA or Article 2.07 of CPAFTA, as the case may be;

  • (b) in the case of goods exported from a NAFTA country, Chile, Costa Rica, an EFTA state, Peru, Colombia, Jordan or Panama, if the advance ruling is not in accordance with an interpretation agreed to by

    • (i) the NAFTA countries regarding Chapter Three or Four of NAFTA,

    • (ii) Canada and Chile regarding Chapter C or D of CCFTA,

    • (iii) Canada and Costa Rica regarding Chapter III or IV of CCRFTA,

    • (iv) Canada and the EFTA states regarding Annex C to CEFTA,

    • (v) Canada and Peru regarding Chapter Two or Three of CPFTA,

    • (vi) Canada and Colombia regarding Chapter Two or Three of CCOFTA,

    • (vii) Canada and Jordan regarding Chapter 2 or 4 of CJFTA, or

    • (viii) Canada and Panama regarding Chapter Two or Three of CPAFTA;

  • (c) if there is a change in the material facts or circumstances on which the advance ruling is based;

  • (d) if preferential tariff treatment under a free trade agreement has been denied or withdrawn from the goods under subsection 42.1(2) or (3) of the Act;

  • (e) in the case of goods exported from a NAFTA country, from Chile or from Costa Rica, if the exporter or producer of the goods has not complied with the terms and conditions of the advance ruling with regard to the regional value content of the goods or any other terms or conditions of the advance ruling;

  • (f) in the case of goods exported from a NAFTA country, from Chile or from Costa Rica, if the operations of the exporter or producer of the goods are not consistent with the material facts and circumstances on which the advance ruling is based with regard to the regional value content of the goods;

  • (g) in the case of goods exported from a NAFTA country, from Chile or from Costa Rica, if for the purposes of the application for the advance ruling the supporting data and computations used in applying the basis or method for calculating value or allocating cost were incorrect in any material respect with regard to the regional value content of the goods;

  • (h) to conform with a modification of

    • (i) Chapter Three, Four, Five or Seven of NAFTA,

    • (ii) Chapter C, D or E of CCFTA,

    • (iii) Chapter Three of CIFTA,

    • (iv) Chapters III, IV and V of CCRFTA,

    • (v) Chapter II or Annex C to CEFTA,

    • (vi) Chapter Two, Three or Four of CPFTA,

    • (vii) Chapter Two, Three or Four of CCOFTA,

    • (viii) Chapters 2, 4 and 5 of CJFTA, or

    • (ix) Chapter Two, Three or Four of CPAFTA; or

  • (i) to conform with a decision of a Canadian court or tribunal or a change in Canadian law.

  • SOR/97-331, s. 9;
  • SOR/2001-108, s. 5(F);
  • SOR/2004-124, s.3;
  • SOR/2013-213, ss. 2, 12, 21;
  • SOR/2014-282, s. 3;
  • SOR/2016-145, s. 3.

 [Repealed, SOR/97-331, s. 10]

Notice of Modification or Revocation

 An officer shall give notice in writing of any modification or revocation of an advance ruling and of the effective date of the modification or revocation to the person to whom the advance ruling was given.

Effective Date of Modification or Revocation

 A modification or revocation of an advance ruling shall be effective

  • (a) on the date on which the modification or revocation is issued; or

  • (b) on such later date as may be specified in the notice given under section 16.

Application of Modification or Revocation

  •  (1) Subject to subsection (2), a modification or revocation of an advance ruling shall apply to goods that are the subject of the advance ruling and are imported on or after the effective date of the modification or revocation.

  • (2) A modification or revocation of an advance ruling shall apply to goods that are the subject of the advance ruling and are imported before the effective date of the modification or revocation where the modification or revocation is

    • (a) to the detriment of the person to whom the advance ruling was given and that person has not acted in accordance with the terms and conditions of the advance ruling; or

    • (b) to the benefit of the person to whom the advance ruling was given.

Postponement of Effective Date

  •  (1) An officer shall postpone the effective date of a modification or revocation of an advance ruling for a period not exceeding 90 days where the person to whom the advance ruling was given demonstrates that the person has relied in good faith to the person's detriment on that advance ruling.

  • (2) An officer shall give, in writing, to the person to whom the advance ruling was given, notice of any postponement made under subsection (1).

Repeal

 [Repeal]

Coming into Force

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

Date modified: