Vol. 148, No. 26 — December 17, 2014
SOR/2014-284 November 28, 2014
Regulations Amending the Proof of Origin of Imported Goods Regulations
P.C. 2014-1305 November 27, 2014
Whereas the annexed Regulations give effect, in part, to a public announcement made on September 28, 2012 known as Customs Notice 12-027;
And whereas that Notice provides that the regulatory amendments giving effect to that announcement are to be effective on October 1, 2012;
Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness and the Minister of Finance, pursuant to subsection 35.1(4) (see footnote a), section 164 (see footnote b) and paragraph 167.1(b) (see footnote c) of the Customs Act (see footnote d), makes the annexed Regulations Amending the Proof of Origin of Imported Goods Regulations.
REGULATIONS AMENDING THE PROOF OF ORIGIN OF IMPORTED GOODS REGULATIONS
1. The Proof of Origin of Imported Goods Regulations (see footnote 1) are amended by adding the following after section 9:
PROOF OF ORIGIN OF GOODS THAT ARE ENTITLED TO THE BENEFIT OF PREFERENTIAL TARIFF TREATMENT UNDER CJFTA
9.1 (1) Subject to subsections (2) to (4), if the benefit of preferential tariff treatment under CJFTA is claimed for goods, the importer or the owner of the goods shall, at the times set out in section 13, furnish to an officer, as proof of origin for the purposes of section 35.1 of the Act, a Certificate of Origin for the goods that is completed in English, French or Arabic.
(2) The importer and the owner of the goods are exempt from the requirements of subsection 35.1(1) of the Act if the importer or the owner furnishes to an officer, at the time set out in paragraph 13(a), a written and signed declaration, in English or French, certifying that the goods originate in Jordan and that a completed Certificate of Origin is in the importer’s possession.
(3) If the benefit of preferential tariff treatment under CJFTA is claimed for casual goods, the importer and the owner of the casual goods are exempt from the requirements of subsection 35.1(1) of the Act if the casual goods are entitled to preferential tariff treatment under CJFTA in accordance with the CJFTA Rules of Origin for Casual Goods Regulations.
(4) If the benefit of preferential tariff treatment under CJFTA is claimed for commercial goods that have an estimated value for duty of less than $1,600, the importer and the owner of the goods are exempt from the requirements of subsection 35.1(1) of the Act if
- (a) the goods do not form part of a series of importations that is undertaken or arranged for the purpose of avoiding the requirements of subsection 35.1(1) of the Act; and
- (b) the importer or the owner of the goods furnishes to an officer, at the times set out in section 13,
- (i) a commercial invoice for the goods, containing a written and signed statement, in English or French, from the exporter or the producer of the goods, that certifies that the goods originate in Jordan, or
- (ii) a written and signed statement, in English or French, from the exporter or the producer of the goods, certifying that the goods originate in Jordan.
9.2 If the Certificate of Origin referred to in subsection 9.1(1) is completed in Arabic, the importer or owner of the goods shall, at the request of an officer, furnish to the officer a translation of the Certificate of Origin in English or French.
9.3 The Certificate of Origin referred to in subsection 9.1(1) may apply in respect of
- (a) a single importation of a good; or
- (b) two or more importations of identical goods, imported by the same importer, that occur within a period not exceeding 12 months, as set out in the Certificate of Origin by the person signing it.
9.4 The Certificate of Origin referred to in subsection 9.1(1) may be accepted as proof of origin for four years after the date on which it is signed.
COMING INTO FORCE
2. These Regulations are deemed to have come into force on October 1, 2012.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
In order for the Canada Border Services Agency (CBSA) to administer the customs procedures surrounding the proof of origin of imported goods that were described in the Canada-Jordan Free Trade Agreement (CJFTA), it is necessary to make amendments to the Proof of Origin of Imported Goods Regulations (the Regulations).
Pursuant to the Customs Tariff, goods imported into Canada from all countries, other than North Korea, are entitled to the Most-Favoured-Nation Tariff. The Customs Tariff also establishes a series of preferential tariff treatments whose rates of duty are lower than the Most-Favoured-Nation Tariff rate. Preferential tariff treatments include the General Preferential Tariff, Least-Developed-Country Tariff, Commonwealth Caribbean Countries Tariff, Australia Tariff, New Zealand Tariff and the various preferential tariffs that have been negotiated between Canada and its free trade partners.
In order to qualify for one of the preferential tariff treatments set out in the Customs Tariff, including those resulting from free trade agreements, proof of origin of the goods being imported must be provided in accordance with section 35.1 of the Customs Act (the Act). The Regulations prescribe the proof of origin requirements for importers claiming the benefit of a preferential tariff treatment.
To claim a preferential tariff treatment afforded under a free trade agreement, the importer must have in its possession, at the time of import, a proof of origin provided by the exporter or producer. This proof of origin serves as the exporter’s attestation that the goods meet the free trade agreement’s rules of origin, and is used by the CBSA to validate the importer’s claim for the preferential tariff treatment.
The Canada-Jordan Free Trade Agreement (CJFTA) was signed on June 28, 2009. The CJFTA came into force on October 1, 2012.
The CJFTA provides preferential tariff treatment into Canada for goods originating in Jordan, provided they satisfy the rules of origin contained in the CJFTA. The agreement also contains provisions governing the proof of origin requirements that can be imposed to ensure that goods satisfy these rules of origin.
The amendments to the Regulations described below were publicly announced by the CBSA in a Customs Notice posted on September 28, 2012 (CN12-027).
Paragraph 167.1(b) of the Customs Act allows regulatory changes that have previously been the subject of a public announcement to have a retroactive effect. As a result, the CBSA has been administering the proof of origin requirements on a provisional basis since the coming into force of the CJFTA.
The Customs Notice (CN12-027) can be viewed at the following Web address: http://www.cbsa-asfc.gc.ca/publications/cn-ad/cn12-027-eng.html.
The amendments to the Regulations described below simply finalize the process begun with the public announcement contained in the Customs Notice, formalizing proof of origin processes that are already being administered. These amendments will officially incorporate the proof of origin requirements associated with the CJFTA into Canada’s existing regulatory regime.
The amendments to the Regulations incorporate the CJFTA into Canada’s existing regulatory framework by allowing customs procedures related to proof of origin to be administered in accordance with the terms of the CJFTA.
A new section, outlining the specific proof of origin requirements for imported goods entitled to the benefit of preferential tariff treatment under the CJFTA, is being added to the Regulations.
The proof of origin requirements for claiming preferential tariff treatment under the CJFTA share many of the characteristics of the requirements for claiming other preferential tariff treatments; however, the CJFTA allows Certificates of Origin to be written in English, French, or Arabic. Consequently, the new section 9.1 deals exclusively with the proof of origin requirements for goods claiming the benefit of preferential tariff treatment under the CJFTA.
The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to this proposal, as there are no costs to small business.
Prior to launching the CJFTA negotiations, Canadian manufacturers, importers and exporters were consulted extensively and kept informed of developments throughout all these negotiations, including with respect to rules of origin issues. Negotiations began on February 20, 2008, and concluded during the third round of negotiations, held in Amman on August 24 and 25, 2008.
The amendments to the Proof of Origin of Imported Goods Regulations were announced by the CBSA in Customs Notice CN12-027. The Customs Notice provided opportunities for the public to review the proposed regulatory changes and provide comments to the CBSA. No comments were received.
Canada’s free trade agreements (FTAs) are governed by a network of regulations (including the Proof of Origin of Imported Goods Regulations) that, taken together, implement into Canadian law the customs procedures negotiated as part of each FTA.
Consequently, with each new FTA implementation bill passed by the Canadian Parliament, a series of minor, technical amendments are needed in order to incorporate the new FTA into Canada’s existing regulatory framework.
Implementation, enforcement and service standards
The CBSA will continue to monitor compliance with the Regulations in the course of its regular administration of customs- and tariff-related legislation and regulations. In the event that the requirements set out in the Regulations are not met, subsection 35.1(5) of the Customs Act provides for the denial or withdrawal of preferential tariff treatment.
Trade and Anti-Dumping Programs Directorate
Canada Border Services Agency
150 Isabella Street, 11th Floor