Vol. 150, No. 13 — June 29, 2016

Registration

SOR/2016-146 June 14, 2016

CUSTOMS ACT

CPAFTA Verification of Origin Regulations

P.C. 2016-515 June 14, 2016

Whereas, the annexed Regulations give effect, in part, to a public announcement made on March 22, 2013, known as Customs Notice 13-006;

And whereas the Notice provides that the Regulations giving effect to that announcement come into force on April 1, 2013;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness, pursuant to section 42.1 (see footnote a), paragraphs 164(1)(i) (see footnote b) and (j), subsection 164(1.1) (see footnote c) and paragraph 167.1(b) (see footnote d) of the Customs Act (see footnote e), makes the annexed CPAFTA Verification of Origin Regulations.

CPAFTA Verification of Origin Regulations

Interpretation

Definitions

1 The following definitions apply in these Regulations.

Act means the Customs Act. (Loi)

customs administration means the governmental authority that is responsible under the law of Canada or of Panama, as the case may be, for the administration of its customs laws and regulations. (administration douanière)

goods means goods for which preferential tariff treatment under the CPAFTA is claimed. (marchandises)

material means a good that is used in the production of another good, and includes a part or ingredient. (matière)

verification letter means a letter that requests information regarding the origin of goods that are the subject of a verification of origin. (lettre de vérification)

verification questionnaire means a questionnaire that requests information regarding the origin of goods that are the subject of a verification of origin. (questionnaire de vérification)

verification visit verification visit means the entry into premises or a place for the purpose of conducting a verification of origin of goods under paragraph 42.1(1)(a) of the Act. (visite de vérification)

Manner of Conducting a Verification of Origin

Methods in addition to verification visit

2 In addition to a verification visit, a verification of origin of goods may be conducted by reviewing the following:

• (a) a verification questionnaire completed by
  • (i) the exporter or producer of the goods, or
  • (ii) a producer or supplier of a material;
• (b) a written response received from a person referred to in paragraph (a) to a verification letter; and
• (c) any other information received from a person referred to in paragraph (a).
  

Verification letters and verification questionnaires

3 A verification letter or verification questionnaire must

• (a) identify the customs administration and specify the name and title of the officer who is sending the letter or questionnaire;
• (b) describe the goods or materials that are the subject of the verification of origin; and
• (c) specify the period within which the letter must be answered or the questionnaire must be completed and returned, and which must be a minimum of 30 days beginning on the day on which the letter or the questionnaire is received.

Extension of period

4 A person who receives a verification letter or verification questionnaire may, on a single occasion and within the period specified in the letter or questionnaire, make a written request asking for an extension of that period to the customs administration. The extension may be granted for a further period of not more than 30 days.

Verification Visit

Premises

5 The premises in Panama of the following persons are prescribed premises for the purposes of a verification visit:

• (a) an exporter or producer of goods; and
• (b) a producer or supplier of a material.
  

Conditions

6 (1) An officer may only conduct a verification visit if the following conditions are met:

• (a) an officer sends a written notice of their intention to conduct the visit to
  • (i) the person whose premises are to be the subject of the visit,
  • (ii) the customs administration of Panama, and
  • (iii) if requested by Panama, the Embassy of Panama that is located in Canada; and
• (b) the person whose premises are to be the subject of the visit consents in writing to it.

Written notice

(2) The written notice of the verification visit must specify

• (a) the identity of the customs administration on whose behalf the notice is sent;
• (b) the name and title of the officer who is to conduct the visit;
• (c) the name of the person whose premises are to be the subject of the visit;
• (d) the date and the place of the visit;
• (e) the object and scope of the visit, including a description of the goods or materials that are the subject of the verification of origin; and
• (f) the legal authority for the visit.

Postponement

7 (1) A person who receives a notice under subparagraph 6(1)(a)(i) may, on a single occasion and within 15 days after the day on which the notice is received request a postponement of the verification visit by sending a written request for a postponement to the officer who sent the notice.

Maximum period

(2) The postponement must not be for a period exceeding 60 days beginning on the day on which the notice is received, or for any longer period that is agreed to by the customs administration of Canada.

Postponement

(3) A verification visit is postponed if, within 15 days after the day on which the customs administration receives a notice under subparagraph 6(1)(a)(ii), the customs administration of Panama sends a written request for the postponement to the officer who sent the notice.

Maximum period

(4) The postponement must not be for a period exceeding 60 days beginning on the day on which the notice is received, or for any longer period that is agreed to by Canada and Panama.

Observers

8 (1) A person who receives a notice under subparagraph 6(1)(a)(i) may designate two observers to be present during the verification visit.

Role of observers

(2) The observers’ participation is limited to observation.

Identification of observers

(3) A person who designates observers must identify them to the officer who is conducting the verification visit.

Denial or Withdrawal of Preferential Tariff Treatment under CPAFTA

Requirements — exporter and producer

9 (1) For the purpose of subsection 42.1(2) of the Act, the exporter and the producer of goods are, in relation to a verification of origin under paragraph 42.1(1)(a) of the Act, required to

• (a) maintain, in accordance with the applicable laws of the country in which the verification of origin is conducted, records relevant to the determination of origin with respect to the goods that are required to be maintained under those laws;
• (b) provide the officer who is conducting the verification of origin with access to the records; and
• (c) reply to each verification letter or complete and return each verification questionnaire to the officer within the period specified under paragraph 3(c) or section 4, as the case may be.

Consent to verification visit

(2) For the purpose of subsection 42.1(2) of the Act, consent to the verification visit must be provided in writing by the exporter or producer within 30 days after the day on which the notice sent in accordance with subparagraph 6(1)(a)(i) is received.

Notice of re-determination of origin

10 (1) An officer must send a written notice of the intent to re-determine the origin of goods under subsection 59(1) of the Act with a statement that is provided to an exporter or producer of goods under subsection 42.2(1) of the Act and that states that the goods that are the subject of a verification of origin are not eligible for preferential tariff treatment under the CPAFTA.

Notice’s

(2) The written notice must specify the date from which preferential tariff treatment under the CPAFTA may be denied or withdrawn in respect of the goods that are the subject of the verification of origin and the period during which the exporter or producer of the goods may provide written comments or additional information regarding the origin of those goods.

Communication

Means of communication

11 A verification letter, a verification questionnaire and the notices referred to in paragraph 6(1)(a) and section 10 must be sent by any means that produces confirmation of receipt.

Coming into Force

April 1, 2013

12 These Regulations are deemed to have come into force on April 1, 2013.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears at following SOR/2016-145, Regulations Amending Certain Regulations Made Under the Customs Act (CPAFTA).

• Footnote a
  S.C. 2009, c. 6, s. 24
• Footnote b
  S.C. 1992, c. 28, s. 30(1)
• Footnote c
  S.C. 2012, c. 18, s. 30
• Footnote d
  S.C. 1992, c. 28, s. 31(1)
• Footnote e
  R.S., c. 1 (2nd Supp.)