Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

CUSMA Rules of Origin Regulations (SOR/2020-155)

Regulations are current to 2022-11-16 and last amended on 2020-07-01. Previous Versions

SCHEDULE 7(Paragraphs 5(13)(a) and (d) and subsections 5(14), and 7(10))Methods for Determining the Value of Non-Originating Materials that are Identical Materials and that are Used in the Production of a Good

Definitions

  • 1 The following definitions apply in this Schedule.

    FIFO method

    FIFO method means the method by which the value of non-originating materials first received in materials inventory, as determined in accordance with section 8 of these Regulations, is considered to be the value of non-originating materials used in the production of the good first shipped to the buyer of the good. (méthode PEPS)

    identical materials

    identical materials means, with respect to a material, materials that are the same as that material in all respects, including physical characteristics, quality and reputation but excluding minor differences in appearance. (matières identiques)

    LIFO method

    LIFO method means the method by which the value of non-originating materials last received in materials inventory, as determined in accordance with section 8 of these Regulations, is considered to be the value of non-originating materials used in the production of the good first shipped to the buyer of the good. (méthode DEPS)

    materials inventory

    materials inventory means, with respect to a single plant of the producer of a good, an inventory of non-originating materials that are identical materials and that are used in the production of the good. (stock de matières)

    rolling average method

    rolling average method means the method by which the value of non-originating materials used in the production of a good that is shipped to the buyer of the good is based on the average value, calculated in accordance with section 4, of the non-originating materials in materials inventory. (méthode de la moyenne mobile)

General

  • 2 For the purposes of subsections 5(13) and (14) and 7(10) of these Regulations, the following are the methods for determining the value of non-originating materials that are identical materials and are used in the production of a good:

    • (a) FIFO method;

    • (b) LIFO method; and

    • (c) rolling average method.

    • 3 (1) If a producer of a good chooses, with respect to non-originating materials that are identical materials, any of the methods referred to in section 2, the producer may not use another of those methods with respect to any other non-originating materials that are identical materials and that are used in the production of that good or in the production of any other good.

    • (2) If a producer of a good produces the good in more than one plant, the method chosen by the producer must be used with respect to all plants of the producer in which the good is produced.

    • (3) The method chosen by the producer to determine the value of non-originating materials may be chosen at any time during the producer’s fiscal year and may not be changed during that fiscal year.

Average Value for Rolling Average Method

    • 4 (1) The average value of non-originating materials that are identical materials and that are used in the production of a good that is shipped to the buyer of the good is calculated by dividing

      • (a) the total value of non-originating materials that are identical materials in materials inventory prior to the shipment of the good, as determined in accordance with section 8 of these Regulations,

      by

      • (b) the total units of those non-originating materials in materials inventory prior to the shipment of the good.

    • (2) The average value calculated under subsection (1) is applied to the remaining units of non-originating materials in materials inventory.

 
Date modified: