Most-Favoured-Nation Tariff Rules of Origin Regulations (SOR/98-33)

Origin of Goods

1 Goods originate in a country that is a beneficiary of the Most-Favoured-Nation Tariff if

• (a) not less than 50 per cent of the cost of production of the goods is incurred by the industry of one or more countries that are beneficiaries of the Most-Favoured-Nation Tariff, or by the industry of Canada; and

• (b) the goods were finished in a country that is a beneficiary of the Most-Favoured-Nation Tariff in the form in which they are imported into Canada.

2 In calculating the cost of production for the purposes of paragraph 1(a), the following shall not be included:

• (a) the cost of outside packing and expenses related to outside packing, required for the transportation of the goods, not including packing in which the goods are ordinarily sold for consumption;

• (b) gross profit of the manufacturer or exporter and the profit or remuneration of any trader, broker or other person dealing in the goods in their finished manufactured condition;

• (c) royalties;

• (d) customs or excise duty or tax paid or payable on imported materials;

• (e) carriage, insurance and other charges from the place of production or manufacture in the country of origin to the port of shipment; and

• (f) any other costs or charges incurred or to be incurred subsequent to the completion of the manufacture of the goods.

Direct Shipment

3 Goods are entitled to the Most-Favoured-Nation Tariff only if the goods are shipped directly to Canada, with or without transhipment, from a country that is a beneficiary of the Most-Favoured-Nation Tariff.

Repeal

4 [Repeal]

Coming into Force

5 These Regulations come into force on January 1, 1998.