Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations (SOR/94-23)

Regulations are current to 2019-07-01 and last amended on 2019-01-15. Previous Versions

Determination of Country of Origin

  •  (1) The country of origin of goods is the country in which

    • (a) the goods are wholly obtained or produced;

    • (b) the goods are produced exclusively from domestic materials;

    • (c) each of the foreign materials incorporated into the goods undergoes an applicable change in tariff classification and satisfies any other applicable requirements of these Regulations; or

    • (d) a good is considered to originate under a Chapter Note set out in Schedule III.

  • (2) For the purpose of paragraph (1)(a), goods are wholly obtained or produced in a country if the goods are

    • (a) mineral goods extracted in that country;

    • (b) vegetables or other goods harvested in that country;

    • (c) live animals born and raised in that country;

    • (d) goods obtained from hunting, trapping or fishing in that country;

    • (e) fish, shellfish or other marine life taken from the sea by vessels registered or recorded with that country and flying its flag;

    • (f) goods produced on board factory ships from goods referred to in paragraph (e), where the factory ship is registered or recorded with that country and is flying its flag;

    • (g) goods taken by that country or by a person of that country, from or beneath the seabed outside territorial waters, where that country has the right to exploit that seabed;

    • (h) goods taken from outer space, where the goods are obtained by that country or by a person of that country;

    • (i) waste and scrap derived from

      • (i) production in that country, or

      • (ii) used goods collected in that country, where those used goods are fit only for the recovery of raw materials; or

    • (j) goods produced in that country exclusively from goods referred to in any of paragraphs (a) to (i), or from derivatives of such goods, at any stage of production.

  • SOR/95-447, s. 1
  •  (1) Except in the case of goods that are described in the schedule to the Act as a set or are classified as a set pursuant to Rule 3 of the General Rules, where the country of origin of goods cannot be determined under section 4, the country or countries of origin of the goods shall be the country or countries of origin of the single material that imparts the essential character of the goods.

  • (2) Where the single material that imparts the essential character of the goods is a fungible material and has been commingled so that direct physical identification of the country or countries of origin of each fungible material is not practical, the country or countries of origin of that material shall be determined, at the choice of the importer of the goods, under subsection (1) or on the basis of an inventory management method set out in Part I of Schedule X to the NAFTA Rules of Origin Regulations.

  • (3) [Repealed, SOR/2002-129, s. 1]

  • SOR/95-447, s. 1
  • SOR/98-28, s. 19
  • SOR/2002-129, s. 1

 Where the country or countries of origin of goods cannot be determined under section 4 or 5 and the goods are described in the schedule to the Act as a set or mixture, or are classified as a set or mixture or as composite goods pursuant to Rule 3 of the General Rules, the country or countries of origin of the goods shall be the country or countries of origin of all the materials that merit equal consideration as imparting the essential character of the goods.

  • SOR/95-447, s. 1
  • SOR/98-28, s. 19
  • SOR/2002-129, s. 2(F)

 Where the country or countries of origin of goods cannot be determined under any of sections 4 to 6, the country or countries of origin of the goods shall be

  • (a) if the goods are produced by only minor processing, the country or countries of origin of all the materials that merit equal consideration as imparting the essential character of the goods;

  • (b) if the production of the goods is by simple assembly and the parts that merit equal consideration as imparting the essential character of the goods have the same country of origin, the country of origin of those parts; or

  • (c) in any other case, the last country in which the goods underwent production.

  • SOR/95-447, s. 1
  • SOR/2002-129, s. 3(F)

Tariff Preference Override

 Notwithstanding sections 4 to 7, where any goods are originating goods under the NAFTA Rules of Origin Regulations and the country of origin of the goods is not determined to be a single NAFTA country under section 4 or 5, the country of origin of those goods shall be the last NAFTA country in which the goods underwent production, other than by minor processing, if a Certificate of Origin under the Proof of Origin of Imported Goods Regulations has been completed and signed for the goods.

  • SOR/95-447, s. 1

Production Outside Canada

 Where the country of origin of imported goods would be determined to be Canada under any of sections 4 to 7 and the goods have undergone production that involves more than minor processing in another NAFTA country prior to their importation, the country of origin of the goods shall be the last NAFTA country in which the goods underwent that production.

  • SOR/95-447, s. 1

Fungible Goods

  •  (1) Subject to subsection (2), where two or more fungible goods have different countries of origin and have been commingled, all of the countries of origin of those fungible goods shall be the countries of origin of those commingled goods.

  • (2) Where fungible goods have been commingled so that direct physical identification of the countries of origin of the goods is not practical, the country or countries of origin of each of the fungible goods shall be determined, at the choice of the importer of the goods, under subsection (1) or on the basis of an inventory management system set out in Part II of Schedule X to the NAFTA Rules of Origin Regulations.

  • SOR/95-447, s. 1

De Minimis

  •  (1) Foreign materials that are incorporated into goods and do not undergo an applicable change in tariff classification or satisfy any other applicable requirements of these Regulations shall be disregarded in determining the country or countries of origin of the goods

    • (a) in the case of goods classified under any of Chapters 50 to 63 of the List of Tariff Provisions, if the combined weight of the foreign materials does not exceed 7% of the total weight of the goods; and

    • (b) in the case of goods classified under any other chapter of the List of Tariff Provisions, other than under any of Chapters 1 to 4, 6 to 8, 11, 12, 15, 17 and 20, if the value of the foreign materials is not more than 7% of the value of the goods, or 10% where the goods are classified under Chapter 22 of that List.

  • (2) For the purpose of this section, the value of materials is, at the choice of the importer of the goods,

    • (a) their value for duty, as defined in subsection 2(1) of the Customs Act, except that for the purpose of determining that value, the reference in section 55 of that Act to “in accordance with regulations made under the Currency Act” shall be read as a reference to “in accordance with subsection 3(1) of the NAFTA Rules of Origin Regulations”; or

    • (b) their value determined in accordance with Schedule VIII to the NAFTA Rules of Origin Regulations, with such modifications as the circumstances may require.

  • (3) For the purpose of this section, the value of any goods is,

    • (a) where the importer of the goods has chosen that the value of the materials incorporated into the goods be determined under paragraph (2)(a), their value for duty, as defined in subsection 2(1) of the Customs Act, except that for the purpose of determining that value, the reference in section 55 of that Act to “in accordance with regulations made under the Currency Act” shall be read as a reference to “in accordance with subsection 3(1) of the NAFTA Rules of Origin Regulations”; and

    • (b) where the importer of the goods has chosen that the value of the materials incorporated into the goods be determined under paragraph (2)(b), their value determined in accordance with Schedule VIII to the NAFTA Rules of Origin Regulations, with such modifications as the circumstances may require, as though they were a material.

  • SOR/95-447, s. 1
  • SOR/98-28, s. 18
 
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