Regulations Amending the Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations and the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations: SOR/2018-116
Canada Gazette, Part II, Volume 152, Number 12
Registration
May 31, 2018
CUSTOMS TARIFF
P.C. 2018-632 May 29, 2018
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 19(1) of the Customs Tariff footnote a, makes the annexed Regulations Amending the Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations and the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations.
Regulations Amending the Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations and the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations
Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations
1 The long title of the Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations footnote 1 is replaced by the following:
Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations
2 Section 1 of the Regulations and the heading before it are repealed.
3 Schedule I to the Regulations is amended by replacing item 2(12) with the following:
- (12) Iron pipes and tubes
4 Schedule I to the Regulations is amended by adding the following after item 6:
- 7 Goods of Steel or Aluminum
- (1) Goods of steel that are classified under headings 72.06 through 72.15, subheadings 7216.10 through 7216.50 or subheading 7216.99, headings 72.17 through 72.29, subheading 7301.10, 7302.10, 7302.40 or 7302.90 or headings 73.04 through 73.06, except wire
- (2) Goods of aluminum that are classified under heading 76.01 or headings 76.04 through 76.09 and castings or forgings that are classified under subheading 7616.99, except wire (other than barbed wire)
5 Schedule II to the Regulations is amended by replacing items 4 and 5 with the following:
- 4 Used goods, with the exception of iron pipes and tubes and goods of steel or aluminum that are referred to in item 7 of Schedule I
- 5 Goods that are for the exclusive use of the importer or the importer’s employees and not for resale to the general public, with the exception of iron pipes and tubes and goods of steel or aluminum that are referred to in item 7 of Schedule I
6 Schedule II to the Regulations is amended by replacing item 8 with the following:
- 8 Goods that are imported for subsequent exportation from Canada, with the exception of iron pipes and tubes and goods of steel or aluminum that are referred to in item 7 of Schedule I
Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations
7 The long title of the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations footnote 2 is replaced by the following:
Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations
8 Section 1 of the Regulations and the heading before it are repealed.
9 Schedule I to the Regulations is amended by replacing item 2(12) with the following:
- (12) Iron pipes and tubes
10 Schedule I to the Regulations is amended by adding the following after item 6:
- 7 Goods of Steel or Aluminum
- (1) Goods of steel that are classified under headings 72.06 through 72.15, subheadings 7216.10 through 7216.50 or subheading 7216.99, headings 72.17 through 72.29, subheading 7301.10, 7302.10, 7302.40 or 7302.90 or headings 73.04 through 73.06, except wire
- (2) Goods of aluminum that are classified under heading 76.01 or headings 76.04 through 76.09 and castings or forgings that are classified under subheading 7616.99, except wire (other than barbed wire)
11 Schedule II to the Regulations is amended by replacing items 4 and 5 with the following:
- 4 Used goods, with the exception of iron pipes and tubes and goods of steel or aluminum that are referred to in item 7 of Schedule I
- 5 Goods that are for the exclusive use of the importer or the importer’s employees and not for resale to the general public, with the exception of iron pipes and tubes and goods of steel or aluminum that are referred to in item 7 of Schedule I
12 Schedule II to the Regulations is amended by replacing item 8 with the following:
- 8 Goods that are imported for subsequent exportation from Canada, with the exception of iron pipes and tubes and goods of steel or aluminum that are referred to in item 7 of Schedule I
13 Schedule III to the Regulations is amended by replacing Chapter 72 of Section XV with the following:
| Chapter 72 |
Iron and Steel |
|---|---|
72.01 – 72.06 |
A change to headings 72.01 through 72.06 from any other heading, including another heading within that group. |
72.07 |
A change to heading 72.07 from any other heading, except from heading 72.06. |
72.08 |
A change to heading 72.08 from any other heading. |
72.09 |
A change to heading 72.09 from any other heading, except from heading 72.08 or 72.11. |
72.10 |
A change to heading 72.10 from any other heading, except from headings 72.08 through 72.12. |
72.11 |
A change to heading 72.11 from any other heading, except from headings 72.08 through 72.09. |
72.12 |
A change to heading 72.12 from any other heading, except from headings 72.08 through 72.11. |
72.13 |
A change to heading 72.13 from any other heading. |
72.14 |
A change to heading 72.14 from any other heading, except from heading 72.13. |
72.15 |
A change to heading 72.15 from any other heading, except from headings 72.13 through 72.14. |
72.16 |
A change to heading 72.16 from any other heading, except from headings 72.08 through 72.15. |
72.17 |
A change to heading 72.17 from any other heading, except from headings 72.13 through 72.15. |
72.18 |
A change to heading 72.18 from any other heading. |
72.19 – 72.20 |
A change to headings 72.19 through 72.20 from any other heading outside that group. |
72.21 – 72.22 |
A change to headings 72.21 through 72.22 from any other heading outside that group. |
72.23 |
A change to heading 72.23 from any other heading, except from headings 72.21 through 72.22. |
72.24 |
A change to heading 72.24 from any other heading. |
72.25 – 72.26 |
A change to headings 72.25 through 72.26 from any other heading outside that group. |
72.27 – 72.28 |
A change to headings 72.27 through 72.28 from any other heading outside that group. |
72.29 |
A change to heading 72.29 from any other heading, except from headings 72.27 through 72.28. |
14 Schedule III to the Regulations is amended by replacing Chapter 76 of Section XV with the following:
| Chapter 76 |
Aluminum and Articles of Aluminum |
|---|---|
76.01 – 76.04 |
A change to headings 76.01 through 76.04 from any other heading, including another heading within that group. |
76.05 |
A change to heading 76.05 from any other heading, except from heading 76.04. |
76.06 – 76.15 |
A change to headings 76.06 through 76.15 from any other heading, including another heading within that group. |
7616.10 – 7616.99 |
A change to subheadings 7616.10 through 7616.99 from any other subheading, including another subheading within that group. |
Coming into Force
15 These Regulations come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
The transhipment and diversion of unfairly cheap foreign steel and aluminum products is a threat to Canadian jobs and the North American market. Among other measures taken by the Government to address this threat, Canada is amending its country of origin marking regime to align with United States (U.S.) requirements on certain steel and aluminum products.
Background
Certain goods when imported into Canada are required to be marked to indicate clearly the country in which the goods were made. The foreign exporter or producer applies the country of origin marking. However, Canadian importers are responsible for ensuring that imported goods have been marked at the time they import the goods.
Since the implementation of the North American Free Trade Agreement (NAFTA), Canada has had two country of origin marking regimes, one for goods imported from NAFTA countries and one for goods imported from non-NAFTA countries.
The Determination of Country of Origin for the Purpose of Marking Goods (NAFTA Countries) Regulations and the Determination of Country of Origin for the Purposes of Marking Goods (Non-NAFTA Countries) Regulations establish the scope of goods that require marking and the criteria to determine country of origin, respectively.
Objectives
To amend Canada’s country of origin marking rules to align with U.S. requirements for certain steel and aluminum products, in order to address the transhipment and diversion of unfairly cheap foreign steel and aluminum into the North American market.
Description
The proposed regulations amend the Determination of Country of Origin for the Purpose of Marking Goods (NAFTA Countries) Regulations and the Determination of Country of Origin for the Purposes of Marking Goods (Non-NAFTA Countries) Regulations to expand the scope of goods that need to be marked for both NAFTA and non-NAFTA countries and the criteria used to determine the country of origin marking purposes for imports from NAFTA countries.
On product scope, Canada requires that goods specifically identified in the regulations be marked with the country of origin while the U.S. regime requires that all goods of foreign origin be marked. The amendments expand the scope of goods that must be marked to align with the treatment of certain steel and aluminum products under the U.S. regime.
On criteria, Canada and the U.S. already use substantially equivalent criteria to determine the country of origin for non-NAFTA goods. However, the rules of origin set out in the Canadian and U.S. NAFTA country of origin marking regulations vary. The regulations introduce amendments to the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations consistent with the current U.S. requirements.
“One-for-One” Rule
The “One-for-One” Rule does not apply to these amendments, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to these amendments, as there is no change in administrative or compliance costs to small business.
Consultation
A Notice of Intent on these amendments was published in the Canada Gazette, Part I on April 28, 2018, for a 17-day comment period. Two submissions were received in response to the comment period; they indicated support for the changes. Stakeholder views were taken into consideration in the development of the amendments.
Rationale
These amendments will provide Canada Border Services Agency (CBSA) officials with additional means for verifying the country of origin of certain steel and aluminum products. This will help support effective customs enforcement and minimize opportunities for transhipment and diversion into the North American market, by ensuring more consistent and predictable enforcement between Canadian and U.S. authorities.
Implementation, enforcement and service standards
The CBSA is responsible for the administration of and compliance with customs and tariff legislation and regulations. In the course of its administration of these regulations, the CBSA will inform the importing community.
Contact
Karen LaHay
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Telephone: 613-369-4043