1. For the implementation of the Canada-United States-Mexico Agreement (CUSMA), the Canada Border Services Agency proposes the following new regulations and regulatory amendments, which will come into effect as of the date of entry into force of the CUSMA, scheduled for .
2. Please note that further implementation information on the CUSMA is available in Customs Notice 20-14, Implementation of the Canada-United States-Mexico Agreement (CUSMA).
3. Uniform Regulations as defined in Article 5.16 of Chapter 5 of the CUSMA, regarding the interpretation, application, and administration of Chapter 5 (Origin Procedures), Chapter 6 (Textile and Apparel Goods) and Chapter 7 (Customs Administration and Trade Facilitation), hereinafter referred to as the “Uniform Regulations”, have been adopted and are situated within CBSA’s Departmental Memoranda Series under D11-4-34, Uniform Regulations – Chapters Five, Six, and Seven of the Canada-United States-Mexico Agreement (CUSMA).
4. The new regulations and regulatory amendments announced in this Customs Notice will be made in accordance with paragraph 167.1(b) of the Customs Act.
Regulatory Amendments Made Pursuant to the Customs Act
Certification of Origin of Goods Exported to a Free Trade Partner Regulations
5. Amendment of the Certification of Origin of Goods Exported to a Free Trade Partner Regulations to provide that when goods are exported from Canada to the United States, the certificate of origin be completed in English, French or Spanish.
Exporters’ and Producers’ Records Regulations
6. Amendment of the definition of “advance ruling” in section 1 of the Exporters’ and Producers’ Records Regulations to include a reference to the advance ruling provisions of the CUSMA as found in Articles 5.14 and 7.5 of the CUSMA.
Free Trade Agreement Advance Rulings Regulations
7. Amendment of paragraph 2(d) of the Free Trade Agreement Advance Rulings Regulations to allow, for goods produced in a CUSMA country other than Canada, applications for advance rulings of a material that is used in the production of those goods. Amendment of paragraph 14(b) of the Regulations to add a reference to goods exported from a CUSMA country and a new subparagraph be added to reference an interpretation agreed to by Canada and a CUSMA country regarding Chapters 2, 4, 5, 6 and 7 of the CUSMA.
Refund of Duties Regulations
8. Amendment of the title to Part 5.1 of the Refund of Duties Regulations to make reference to a CUSMA country. As well, amendment of section 23.1 of the Regulations to the effect that Part 5.1 of the Regulations applies to the granting of a refund of duties paid on goods imported from a CUSMA country on or after and for which no claim for preferential tariff treatment under the CUSMA was made at the time the goods were accounted for under subsection 32(1), (3) or (5) of the Customs Act. Furthermore, amendment of paragraph 23.3(b) of the Regulations respecting the amount of refund of duties to refer to the preferential tariff treatment under the CUSMA.
Proof of Origin of Imported Goods Regulations
9. Amendment of the Proof of Origin of Imported Goods Regulations to add a new section concerning the proof of origin of goods entitled to the benefit of preferential tariff treatments under CUSMA, which will:
- a) require the importer or owner of goods, for which the benefit of preferential tariff treatment under the CUSMA is claimed, to furnish to an officer, 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 English, French or Spanish at the times set out in section 13 of the Regulations;
- 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 in paragraph 13(a) of the Regulations, a written and signed declaration, in English or French, certifying that the goods originate in a CUSMA country 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 CUSMA 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 CUSMA pursuant to the CUSMA Rules of Origin for Casual Goods Regulations;
- d) exempt the importer and owner of commercial goods, for which the estimated value for duty does not exceed $3,300 CAD and for which the benefit of preferential treatment under the CUSMA is claimed, from the requirements of subsection 35.1(1) of the Customs Act if 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;
- e) provide that a certificate of origin may apply in respect of a single importation of a good or two or more importations of identical goods, that occur within a period not exceeding twelve months, as specified in the certificate of origin by the person who completed and signed it;
- f) provide that a certificate of origin is acceptable as Proof of Origin for four years after the day on which it is signed;
- g) provide that, if the benefit of preferential tariff treatment under CUSMA is claimed for locomotives classified under heading No. 86.01 or 86.02 or railway freight cars classified under heading No. 86.06 of the List of Tariff Provisions set out in the schedule to the Customs Tariff, the importer and owner of the goods are exempt from the requirements of subsection 35.1(1) of the Customs Act with respect to those goods if they are transported overland from the United States into Canada; and
- h) provide that, if a certification of origin is completed in Spanish, the importer or owner of the goods shall provide a translation into English or French at the request of an officer.
Upcoming regulations concerning the certification of origin of goods imported from a free trade partner
10. Regulations concerning the certification of origin of goods imported from a free trade partner will be made (or amended if they are already in place as a result of the proposals in Customs Notice 18-27). The regulations will be made for the purpose of the uniform interpretation, application and administration of Articles 5.2 and 5.3 of the CUSMA and will set out the criteria on the basis of which an importer may complete a certificate of origin for goods for which preferential tariff treatment under the CUSMA will be claimed. They will also specify that a certificate of origin for goods eligible for the preferential tariff treatment offered under CUSMA be completed in English, French or Spanish.
Accounting for Imported Goods and Payment of Duties Regulations
11. Amendment to subparagraph 7.1(a)(i) of the Accounting for Imported Goods and payment of Duties Regulations to reflect an increase in the estimated value for duty to $3,300 CAD (up from $2,500 CAD) for the release of express shipments (goods imported by courier) prior to accounting and prior to payment of duties, pursuant to Article 7.8 of the CUSMA. For more information related to the increase to the low value shipment (LVS) threshold for the release and accounting of goods imported into Canada, please consult Customs Notice 20-15, Increase to the Low Value Shipment (LVS) Threshold and Simplification to the Proof of Origin Requirements for Goods Imported into Canada.
12. These new regulations concern the verification of origin of goods imported into Canada from a CUSMA country.
CUSMA Verification of Origin Regulations
13. The new CUSMA Verification of Origin Regulations will implement definitions of concepts contained in Chapters 1, 4, 5 and 6 of the CUSMA and outline the details and procedures for the verification of origin of imported goods, including the verification of a material used in the production of the goods under CUSMA Chapters 5 and 6, specifically certain provisions of Articles 5.9 and 6.6, as well as under the Origin Verification section of the Uniform Regulations. Changes relating to details and procedures of domestic requirements will be included.
14. These Regulations will set out the methods that may be used in order to verify the originating status of goods, imported into Canada from a CUSMA country and any timelines associated with the verification. These methods will also apply to verifying materials used in the production of those goods. The methods include a verification visit, the review of a verification questionnaire, the review of the written response (to a verification request) completed by the importer, exporter or producer of the goods, or the producer or supplier of a material used in the production of those goods, or the review of other information received by these persons.
15. These Regulations will also set out details respecting the premises or places that may be entered for a verification visit (including those of the importer who completed the certification of origin) and will outline the details of a written notice of intention and how far in advance of the intended visit the notice must be sent. It must include, among other things, the names and titles of the officials who will conduct the visit, the specific purpose of the visit as well as the name of the person whose premises is the object of the visit. These Regulations will also specify the conditions under which observers may be present during a verification visit, as well the conditions under which a verification visit may be postponed.
16. These Regulations will specify the content of the written verification requests and questionnaires, including that they must specify the customs administration who issues them; the time within which a response to the request or questionnaire must be provided; the object and scope of the verification, including the specific issue the requesting Party is seeking to resolve; and sufficient information to identify the good that is being verified.
17. In addition, these Regulations will specify that all communication to the exporter or producer and to the customs administration of the Party of export be sent by any means that produces confirmation of receipt.
18. For the purposes of subsection 42.1(2) of the Customs Act, the Regulations will specify the requirements applicable to the importer who completed the certificate of origin and those applicable to the exporter and to the producer. These record keeping requirements include requirements regarding the accessibility of useful documents to establish the origin of the goods.
19. Where a customs administration finds, during the course of an origin verification, that an importer, exporter or producer has failed to maintain its records or documentation relevant to determining the origin of the good in accordance with Generally Accepted Accounting Principles or otherwise accepted inventory management methods as provided by Article 4.13 of the CUSMA and Schedule 8 of the CUSMA Rules of Origin Regulations, the customs administration shall, in writing, provide the importer, exporter or producer with a minimum of 30 days to record its costs in accordance with Article 4.13 of CUSMA and Schedule 8 of the CUSMA Rules of Origin Regulations.
20. The Regulations will provide that an officer who intends to make a re-determination that the goods for which the origin is being verified are ineligible for CUSMA preferential tariff treatment must indicate such intention by sending a written notice of intent to deny. The Regulations will also provide that the notice must specify the date from which the CUSMA preferential tariff treatment may be denied or withdrawn. Further, the Regulations will set out that the notice must indicate the period within which the exporter, producer or importer, if they were the subject of the verification and provided information directly to the importing Party, may provide written comments or additional information about the origin of those goods before the denial or withdrawal will take effect. This period must be at least 30 days.
21. The Regulations will set out the details of an alternate method of conducting a verification visit specific to textile and apparel goods in accordance with Article 6.6 of the CUSMA and the Uniform Regulations.
22. For more information, please call the Border Information Service line from within Canada 1-800-461-9999 or from abroad at 204-983-3500 or 506-636-5064. Long distance charges may apply. Agents are available Monday to Friday (08:00 – 16:00 local time / except statutory holidays). TTY is also available within Canada: 1-866-335-3237.
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