CN 17-29, Proposed Regulatory Amendments and Proposed New Regulations Related to the Implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA)

Submitted by admin on Tue, 10/03/2017 - 02:10

Please note that although this Customs Notice refers to Certificates of Origin, we have been assured by CBSA that a Certificate of Origin is not required for goods that originate under CETA. When a statement can be used in place of a certificate, the statement is considered a Certificate of Origin and the terminology is interchangeable.

1. This customs notice announces regulatory amendments and new regulations proposed by the Canada Border Services Agency (CBSA) in support of the implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). It is proposed that these regulatory amendments and new regulations come into force September 21, 2017, on the condition that the Governor in Council makes them.

Proposed Regulatory Changes

Certification of Origin of Goods Exported to a Free Trade Partner Regulations

2. It is proposed that a new paragraph be added to section 3 of the Certification of Origin of Goods Exported to a Free Trade Partner Regulations to provide that when goods are exported from Canada to an EU country or other CETA beneficiary, the Certificate of Origin be completed in any language referred to in Annex 2 of the Protocol on Rules of Origin and Origin Procedures of the CETA.

Exporters' and Producers' Records Regulations

3. It is proposed that the definition of "advance ruling" set out in the Exporters' and Producers' Records Regulations be amended to include reference to the advance ruling provisions of the Protocol on Rules of Origin and Origin Procedures of the CETA.

Free Trade Agreement Advance Rulings Regulations

4. With respect to the modification or revocation of an advance ruling, it is proposed that subparagraph 14(a)(vi) of the Free Trade Agreement Advance Rulings Regulations be amended to include both reference to goods exported from an EU country or other CETA beneficiary and reference to the provisions of Article 2.10 of the CETA. It is also proposed that paragraph 14(b) of the Regulations be amended to include reference to goods exported from an EU country or other CETA beneficiary and that a new subparagraph be added to that paragraph in order to reference an interpretation agreed to by Canada and an EU country or other CETA beneficiary regarding Chapter Two or the Protocol on Rules of Origin and Origin Procedures of the CETA. It is further proposed that paragraph 14(h) of the Regulations be amended to include a new subparagraph to the effect that an advance ruling can be modified or revoked in order to conform to a modification of Chapter Two or the Protocol on Rules of Origin and Origin Procedures of the CETA.

Tariff Item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations

5. It is proposed that paragraph 2(b) of the Tariff Item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations be amended to include reference to an EU country or other CETA beneficiary such that proof of exportation of the goods to an EU country or other CETA beneficiary is required when accounting for the goods under section 32 of the Customs Act.

Refund of Duties Regulations

6. It is proposed that the title to Part 5.1 of the Refund of Duties Regulations be amended to make reference to an EU country or other CETA beneficiary. It is also proposed that section 23.1 of the Regulations be amended to the effect that Part 5.1 of the Regulations applies to the granting of a refund of duties paid on goods imported from an EU country or other CETA beneficiary on or after September 21, 2017, and for which no claim for preferential tariff treatment under the CETA was made at the time the goods were accounted for under subsection 32(1), (3) or (5) of the Customs Act. It is further proposed that paragraph 23.3 of the Regulations (respecting the amount of refund of duties) be amended, in paragraph (b), to refer to the preferential tariff treatment under the CETA.

Proof of Origin of Imported Goods Regulations

7. It is proposed that the Proof of Origin of Imported Goods Regulations be amended in order to:

  • (a) require the importer or owner of the goods, for which the benefit of preferential tariff treatment under the CETA is claimed, to furnish to an officer, at the times set out in section 13 of the Regulations, as proof of origin for the purposes of section 35.1 of the Customs Act, a Certificate of Origin for the goods that is completed in a language referred to in Annex 2 of the Protocol on Rules of Origin and Origin Procedures of the CETA;
  • (b) exempt the importer and owner of goods from the requirements of subsection 35.1(1) of the Customs Act if the importer or owner furnishes to an officer, at the time prescribed by paragraph 13(a) of the Regulations, a written and signed declaration, in English or French, certifying that the goods originate in an EU country or other CETA beneficiary and that a completed Certificate of Origin is in the importer's possession;
  • (c) exempt the importer and owner of casual goods for which the benefit of the preferential tariff treatment under the CETA is claimed from the requirements of subsection 35.1(1) of the Customs Act, if the casual goods are entitled to preferential tariff treatment under the CETA pursuant to the CETA Rules of Origin for Casual Goods Regulations;
  • (d) exempt the importer and owner of commercial goods for which the estimated value for duty is less than $1,600, and for which the benefit of preferential tariff treatment under the CETA is claimed, from the requirements of subsection 35.1(1) of the Customs Act if:
    • (i) 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 Customs Act, and
    • (ii) the importer or owner of the goods furnishes to an officer, at the times set out in Section 13 of the Regulations, either a commercial invoice for the goods, containing a written and signed statement, in English or French, from the exporter or producer of the goods, certifying that the goods originate in an EU country or other CETA beneficiary, or a written and signed statement, in English or French, from the exporter or producer of the goods, certifying that the goods originate in an EU country or other CETA beneficiary;
  • (e) provide that where a Certificate of Origin is completed in a language referred to in Annex 2 of the Protocol on Rules of Origin and Origin Procedures of the CETA, other than English or French, the importer or owner of the goods shall, at the request of an officer, furnish a translation of the Certificate of Origin in English or French;
  • (f) provide that a Certificate of Origin may apply in respect of a single importation of a good or in respect of two or more importations of identical goods, imported by the same importer, that occur within a period not exceeding 12 months, as specified by the exporter in the Certificate of Origin;
  • (g) provide that a Certificate of Origin may be accepted as proof of origin for four years after the day on which it was completed.

Proposed New Regulations

CETA Verification of Origin of Exported Goods Regulations

8. The new CETA Verification of Origin of Exported Goods Regulations are being proposed in order to implement Articles 26 and 29 of the Protocol on Rules of Origin and Origin Procedures of the CETA. The regulations set out methods, other than a verification visit, that may be used in order to verify the originating status of goods exported from Canada to an EU country or other CETA beneficiary. These methods are the review of a verification questionnaire completed by the exporter or producer of goods, the review of the written response of the exporter or producer to a verification letter, or the review of other information received by the exporter or producer or by the producer or supplier of a material used in the production of the goods. These regulations will also set out what premises or places may be entered for the purpose of a verification visit, indicate that a verification visit may only be conducted if a written notice of intention to conduct the visit has been sent, and specify the way certain documents are to be provided.

CETA Verification of Origin of Imported Goods Regulations

9. The new CETA Verification of Origin of Imported Goods Regulations are proposed by CBSA to implement Articles 26 and 29 of the Protocol on Rules of Origin and Origin Procedures of the CETA. The Regulations describe the method for sending verification requests and provide for the review of the reports received in answer to these requests as well as for the review of any relevant supporting documents received.

Additional Information

10. For more information, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time / except holidays). TTY is also available within Canada: 1-866-335-3237.

This notice is available on the CBSA website.