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CCFTA Rules of Origin Regulations (SOR/97-340)

Regulations are current to 2020-09-09

SCHEDULE VRegional Value-content Calculation for Related Motor Vehicle Producers

  • 1 For purposes of this Schedule,

    closed

    closed means, with respect to a plant, a closure

    • (a) for purposes of re-tooling for a change in model line, or

    • (b) as a result of any event or circumstance (other than the imposition of antidumping duties or countervailing duties, or an interruption of operations resulting from a labour strike, lock-out, labour dispute, picketing or boycott of or by employees of the producer or the related producer) that the producer or the related producer could not reasonably have been expected to avert by corrective action or by exercise of due care and diligence, including a shortage of materials, failure of utilities, or inability to obtain or a delay in obtaining raw materials, parts, fuel or utilities; (fermée)

    marque

    marque means a trade name used by a marketing division of a motor vehicle assembler that is separate from any other marketing division of that motor vehicle assembler; (marque)

    producer

    producer means a motor vehicle producer; (producteur)

    related group

    related group means a related producer and any subsidiary directly or indirectly owned by it or by any combination thereof; (groupe lié)

    related producer

    related producer means, with respect to a producer, a producer that owns 50 per cent or more of the common voting stock of that producer at the beginning of that producer’s fiscal year. (producteur lié)

  • 2 For purposes of an election under subsection 10(6) of these Regulations, the regional value content, in a fiscal year, of a motor vehicle of a class of motor vehicles or a model line produced by a producer in the territory of a CCFTA country and imported into the territory of the other CCFTA country is determined by

    • (a) calculating the sum of

      • (i) the net cost incurred by the producer, during that fiscal year, in the production of motor vehicles of that class of motor vehicles or model line for sale in the territory of the other CCFTA country, and

      • (ii) the net cost incurred by a related producer, during the fiscal year that corresponds most closely to the producer’s fiscal year, in the production in the territory of the CCFTA country in which the motor vehicles were produced of a corresponding class of motor vehicles or model line,

    • (b) calculating the sum of

      • (i) the value of the non-originating materials that are used by the producer, during that fiscal year, in the production of motor vehicles of that class of motor vehicles or model line for sale in the territory of the other CCFTA country, and

      • (ii) the value of the non-originating materials that are used by a related producer, during the fiscal year that corresponds most closely to the producer’s fiscal year, in the production in the territory of the CCFTA country in which the motor vehicles were produced of a corresponding class of motor vehicles or model line, and

    • (c) using the sums referred to in paragraphs (a) and (b) as the net cost and the value of non-originating materials, respectively, in the calculation referred to in subsection 6(3) of these Regulations,

    provided that

    • (d) the producer and the related producer both produced motor vehicles in the territory of the same CCFTA country at any time up to two years after the date of the entry into force of the Agreement and notice of such qualification has been provided by that CCFTA country to the other CCFTA country no later than two years after the date of the entry into force of the Agreement, and

    • (e) a related group acquires 75 per cent or more by unit of quantity of the class of motor vehicles or model line, as the case may be, that the producer produced in the territory of a CCFTA country in the producer’s fiscal year for sale in the territory of the other CCFTA country.

  • 3 Where the related group does not satisfy the requirement set out in paragraph 2(e), the producer may choose that the regional value content be calculated in accordance with section 2 only for those motor vehicles that are acquired by the related group for distribution under the producer’s marque or a marque of the related group.

    • 4 (1) The producer may choose that the calculation referred to in section 2 be made over a period of two fiscal years where

      • (a) any plant operated by the producer or by the related producer is closed for more than two consecutive months; and

      • (b) the motor vehicles with respect to which the producer elects that the regional value content be calculated in accordance with section 2 are produced in that plant.

    • (2) Subject to subsection (3), the period of two fiscal years referred to in subsection (1) corresponds to the fiscal year in which the plant is closed and, at the choice of the producer, the preceding or the subsequent fiscal year.

    • (3) Where the plant is closed for a period that spans two fiscal years, the calculation referred to in section 2 may be made only over those two fiscal years.

    • (4) Where the producer has elected that the regional value content be calculated over two fiscal years under this section, the election referred to in subsection 10(6) of these Regulations shall be filed not later than 10 days after the end of the period during which the plant is closed, or such longer period as the customs administration may accept.

  • 5 For purposes of this Schedule, a producer shall be deemed to be the related group where, as a result of an amalgamation, reorganization, division or similar transaction, that producer

    • (a) acquires all or substantially all of the assets used by the related group; and

    • (b) directly or indirectly controls, or is controlled by, the related group, or both that producer and the related group are controlled by the same person.

  • SOR/2004-298, s. 222(E)
 
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