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

1 [Repealed, SOR/2018-116, s. 8]

Interpretation

• 2 (1) For the purposes of these Regulations,

  Act

  Act means the Customs Tariff; (Loi)

  applicable change in tariff classification

  applicable change in tariff classification means, with respect to materials incorporated into goods, a change in tariff classification specified in a rule set out in Schedule III for the tariff provision under which the goods are classified; (changement de classement tarifaire applicable)

  commingled

  commingled means physically combined or mixed in inventory; (combiné)

  CUSMA country

  CUSMA country means a party to the Canada–United States–Mexico Agreement; (pays ACEUM)

  direct physical identification

  direct physical identification means identification by visual or other organoleptic examination; (identification directe)

  domestic materials

  domestic materials means materials whose country of origin as determined under these Regulations is the same country as the country in which the goods are produced; (matière d’origine nationale)

  enterprise

  enterprise means any entity constituted or organized under applicable laws, whether or not for profit and whether privately owned or governmentally owned, including any corporation, trust, partnership, sole proprietorship, joint venture or other association; (entreprise)

  foreign materials

  foreign materials means materials whose country of origin as determined under these Regulations is not the same country as the country in which the goods are produced; (matière étrangère)

  form in which those goods were imported

  form in which those goods were imported means the condition of the goods before they underwent an applicable change in tariff classification; (forme sous laquelle les marchandises ont été importées)

  fungible goods

  fungible goods means goods that are interchangeable for commercial purposes with other goods and whose properties are essentially identical; (marchandises fongibles)

  fungible materials

  fungible materials means materials that are interchangeable for commercial purposes with other materials and whose properties are essentially identical; (matières fongibles)

  General Rules

  General Rules means the General Rules for the Interpretation of the Harmonized System set out in the schedule to the Act; (Règles générales)

  incorporated

  incorporated means physically incorporated into goods as a result of production in respect of those goods; (incorporé)

  indirect materials

  indirect materials means goods used in the production, testing or inspection of other goods but not incorporated into those other goods, or goods used in the maintenance of buildings or the operation of equipment associated with the production of other goods, and includes

  • (a) fuel and energy,

  • (b) tools, dies and moulds,

  • (c) spare parts and materials used in the maintenance of equipment and buildings,

  • (d) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings,

  • (e) gloves, glasses, footwear, clothing, safety equipment and supplies,

  • (f) equipment, devices and supplies used for testing or inspecting the other goods,

  • (g) catalysts and solvents, and

  • (h) any goods not referred to in paragraphs (a) to (g) that are not incorporated into those other goods but the use of which in the production of those other goods can reasonably be demonstrated to be part of the production; (matière indirecte)

  materials

  materials means goods that are incorporated into other goods, and includes a part, a component and an ingredient; (matière)

  minor processing

  minor processing, in respect of goods, means

  • (a) mere dilution with water or any other substance that does not materially alter the characteristics of the goods,

  • (b) cleaning, including removal of rust, grease, paint or any other coating,

  • (c) applying any preservative or decorative coating, including any lubricant, protective encapsulation, preservative or decorative paint, or metallic coating,

  • (d) trimming, filing or cutting off small amounts of excess material,

  • (e) unloading, reloading or any other operation necessary to maintain the goods in good condition,

  • (f) [Repealed, SOR/2013-100, s. 3]

  • (g) testing, marking, sorting or grading,

  • (h) repairs or alterations, washing, laundering or sterilizing,

  • (i) textile decorative processes incidental to the production of textile goods, other than apparel, such as edge pinking, whipping, folding and rolling, fringing and fringe knotting, piping, bordering, minor embroidery, hemstitching, embossing, dyeing and printing, or

  • (j) ornamental or finishing operations incidental to apparel assembly and designed to enhance the marketing appeal or the ease of care of the goods, such as embroidery, hemstitching and sewn appliqué work, stone or acid washing, printing and piece dyeing, preshrinking and permanent pressing, and the attachment of accessories, notions, trimmings and findings; (traitement mineur)

  person

  person means a natural person or an enterprise; (personne)

  production

  production means growing, mining, harvesting, fishing, trapping, hunting, manufacturing, processing or assembling goods; (production)

  repair or alteration

  repair or alteration does not include an operation or process that either destroys the essential character of any goods or creates new or commercially different goods; (réparations ou modifications)

  simple assembly

  simple assembly means the fitting together of five or fewer parts, all of which are foreign parts, other than screws, bolts or other fasteners, by bolting, gluing, soldering, sewing or any other means without more than minor processing; (montage simple)

  tariff provision

  tariff provision means a heading, subheading or tariff item; (poste tarifaire)

  ultimate purchaser

  ultimate purchaser means, with respect to goods, the last person in Canada who purchases the goods in the form in which those goods were imported, whether or not that purchaser is the last person to use the goods; (dernier acheteur)

  usual container

  usual container means the container in which goods ordinarily reach their ultimate purchaser. (contenant usuel)

• (2) For the purpose of determining the materials that impart the essential character of goods under sections 5 to 7,

  • (a) the only materials that shall be taken into consideration are those materials, including materials produced by the producer of the goods and materials that are classified under the same tariff provision as that under which the goods are classified, that are incorporated into those goods and in respect of which there is not an applicable change in tariff classification; and

  • (b) the factors to be taken into consideration are the following, namely,

    • (i) the nature of each of the materials, such as the volume, weight and value of the material,

    • (ii) the quantity of each of the materials, and

    • (iii) the role of each of the materials with regard to the use of the goods.

• (3) For the purposes of these Regulations, the country or countries of origin of materials shall be determined under these Regulations.

Marking

• 3 (1) Goods set out in Schedule I that are imported from a CUSMA country shall be marked so as to indicate their country or countries of origin as determined under these Regulations.

• (2) Subsection (1) does not apply to goods set out in Schedule II.

• (3) The outermost usual container of goods referred to in any of items 10 to 14 and 18 of Schedule II shall be marked with the country or countries of origin of the goods contained in that outermost usual container.

Determination of Country of Origin

• 4 (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.

• 5 (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 1 of Schedule 8 to the CUSMA Rules of Origin Regulations.

• (3) [Repealed, SOR/2002-129, s. 1]

6 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.

7 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.

Tariff Preference Override

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

Production Outside Canada

9 Where the country of origin of imported goods is determined to be Canada under any of sections 4 to 7 and the goods have undergone production, other than minor processing, in another CUSMA country before their importation, the country of origin of the goods shall be the last CUSMA country in which the goods underwent that production.

Fungible Goods

• 10 (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 method set out in Part 2 of Schedule 8 to the CUSMA Rules of Origin Regulations.