CCRFTA Rules of Origin Regulations (SOR/2002-395)

• 5 (1) Except in the case of intermediate materials, for purposes of calculating the regional value content of a good, the value of a material that is used in the production of the good shall be

  • (a) the transaction value, determined in accordance with Article 1 of the Customs Valuation Agreement;

  • (b) the value determined in accordance with Articles 2 through 7 of the Customs Valuation Agreement, where, with respect to the transaction in which the producer acquired the material, there is no transaction value under, or the transaction value is unacceptable, under Article 1 of the Customs Valuation Agreement.

• (2) The value of a material referred to in subsection (1) shall

  • (a) include the costs of freight, insurance and packing and all other costs incurred in transporting the material to the place of importation if they are not included under paragraph (1)(a) or (b); and

  • (b) in the case of a domestic transaction, be determined in accordance with the principles of the Customs Valuation Agreement in the same manner as an international transaction, with such modifications as the circumstances may require.

Intermediate Materials

• (3) The value of an intermediate material shall be, at the choice of the producer of the good,

  • (a) the total cost incurred with respect to all goods produced by the producer that can be reasonably allocated to that intermediate material; or

  • (b) the sum of all costs that comprise the total cost incurred with respect to that intermediate material that can be reasonably allocated to that intermediate material.

Indirect Materials

• (4) For purposes of determining whether a good is an originating good, an indirect material that is used in the production of the good shall be considered to be an originating material, regardless of where that indirect material is produced.

Packaging Materials and Containers for Retail Sale

• (5) Packaging materials and containers in which a good is packaged for retail sale, if classified under the Harmonized System with the good that is packaged therein, shall be disregarded for purposes of determining whether all of the non-originating materials used in the production of the good undergo an applicable change in tariff classification.

• (6) Where packaging materials and containers in which a good is packaged for retail sale are classified under the Harmonized System with the good that is packaged therein and that good is subject to a regional value-content requirement, the value of those packaging materials and containers shall be taken into account as originating materials or non-originating materials, as the case may be, for purposes of calculating the regional value content of the good.

Packing Materials and Containers for Shipment

• (7) Packing materials and containers in which the good is packed for shipment shall be disregarded for purposes of determining whether

  • (a) the non-originating materials used in the production of the good undergo an applicable change in tariff classification, and

  • (b) the good satisfies a regional value-content requirement.

Fungible Goods and Fungible Materials

• (8) For purposes of determining whether 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 materials are originating materials may be made on the basis of any of the applicable inventory management methods set out in Schedule 2; and

  • (b) where originating goods and non-originating goods that are fungible goods are physically combined or mixed in inventory and prior to exportation do not undergo production or any other operation in the territory of the CCRFTA country in which they were physically combined or mixed in inventory, other than unloading, reloading or any other operation necessary to preserve the goods in good condition or to transport the goods for exportation to the territory of the other CCRFTA country, the determination of whether the good is an originating good may be made on the basis of any of the applicable inventory management methods set out in Schedule 2.

Sets or Assortments of Goods

• (9) Except as provided in Schedule 1, a set or assortment, as defined in Rule 3 of the General Rules for the Interpretation of the Harmonized System, shall be considered as originating, provided that:

  • (a) all the component products, including packaging materials and containers, are originating; or

  • (b) where the set or assortment contains non-originating component products, including packaging materials and containers,

    • (i) at least one of the component products, or all the packaging materials and containers for the set, is originating, and

    • (ii) the regional value content of the set or assortment is not less than 50 per cent under the transaction value method.

• (10) For purposes of paragraph (9)(b), the value of packaging materials and containers for the set shall be taken into account as originating materials or non-originating materials, as the case may be, for purposes of calculating the regional value content of the set.

Accessories, Spare Parts and Tools

• (11) Accessories, spare parts or tools that are delivered with a good and form part of the good’s standard accessories, spare parts or tools are originating materials if the good is an originating good, and shall be disregarded for purposes of determining whether all the non-originating materials used in the production of the good undergo an applicable change in tariff classification provided that

  • (a) the accessories, spare parts or tools are not invoiced separately from the good, whether or not each is listed or detailed on the invoice; and

  • (b) the quantities and value of the accessories, spare parts or tools are customary for the good.

• (12) Where a good is subject to a regional value-content requirement, the value of accessories, spare parts or tools that are delivered with that good and form part of the good’s standard accessories, spare parts or tools shall be taken into account as originating materials or non-originating materials, as the case may be, in calculating the regional value content of the good.