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

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.

De Minimis

• 11 (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 2(1) of the CUSMA Rules of Origin Regulations”; or

  • (b) their value determined in accordance with Schedule 6 to the CUSMA Rules of Origin Regulations, with any modifications that the circumstances 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 2(1) of the CUSMA 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 6 to the CUSMA Rules of Origin Regulations, with any modifications that the circumstances require, as though they were a material.

Change in Tariff Classification

• 12 (1) The following materials shall be disregarded in determining whether goods undergo an applicable change in tariff classification or satisfy any other applicable requirements of these Regulations:

  • (a) [Repealed, SOR/2013-100, s. 4]

  • (b) accessories, spare parts or tools that are delivered, classified and shipped with the goods;

  • (c) packing materials and containers in which the goods are packed for shipment; and

  • (d) indirect materials.

• (2) For greater certainty, an applicable change in tariff classification includes a change to goods from other goods that are classified under the same tariff provision, where such a change is specified in a rule set out in Schedule III for the tariff provision under which the goods are classified.

Non-qualifying Operations

13 A foreign material incorporated into goods shall not be considered to have undergone an applicable change in tariff classification or to satisfy any other applicable requirements of these Regulations by reason of

• (a) the change from one tariff classification to any other merely as the result of a change in the end use of the goods;

• (b) the change from one tariff classification to any other merely as the result of the dismantling or disassembly of the goods;

• (c) [Repealed, SOR/2013-100, s. 5]

• (d) the mere dilution with water or any other substance that does not materially alter the characteristics of the material; or

• (e) the mere collection of parts so that the collection of parts is classified as if it were an assembled good pursuant to Rule 2(a) of the General Rules.

14 and 15 [Repealed, SOR/95-447, s. 1]