Regulations Amending Certain Regulations and Orders Made Under the Customs Tariff (CUSMA): SOR/2020-158
Canada Gazette, Part II, Volume 154, Number 15
Registration
SOR/2020-158 June 30, 2020
CUSTOMS TARIFF
P.C. 2020-514 June 29, 2020
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsections 19(1) and 53(2), paragraph 56(1)(b) and section 115 footnote a of the Customs Tariff footnote b, makes the annexed Regulations Amending Certain Regulations and Orders Made Under the Customs Tariff (CUSMA).
Regulations Amending Certain Regulations and Orders Made Under the Customs Tariff (CUSMA)
Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations
1 The 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-CUSMA Countries) Regulations
2 The Regulations are amended by adding the following before the heading “Application” before section 2:
Interpretation
1 In these Regulations, CUSMA country means a party to the Canada–United States–Mexico Agreement.
3 Subsection 2(1) of the Regulations is replaced by the following:
2 (1) Subject to subsection (2), goods set out in Schedule I that are imported into Canada from a country other than a CUSMA country must be marked so as to indicate their country of origin, in accordance with the Marking of Imported Goods Regulations.
Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations
4 The 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 Purpose of Marking Goods (CUSMA Countries) Regulations
5 Subsection 2(1) of the Regulations is amended by adding the following in alphabetical order:
CUSMA country means a party to the Canada–United States–Mexico Agreement; (pays ACEUM)
6 Subsection 3(1) of the Regulations is replaced by the following:
3 (1) Goods set out in Schedule I that are imported from a CUSMA country shall be marked so as to indicate their country or countries of origin as determined under these Regulations.
7 Subsection 5(2) of the Regulations is replaced by the following:
(2) Where the single material that imparts the essential character of the goods is a fungible material and has been commingled so that direct physical identification of the country or countries of origin of each fungible material is not practical, the country or countries of origin of that material shall be determined, at the choice of the importer of the goods, under subsection (1) or on the basis of an inventory management method set out in Part 1 of Schedule 8 to the CUSMA Rules of Origin Regulations.
8 Section 8 of the Regulations is replaced by the following:
8 Notwithstanding sections 4 to 7, where any goods are originating goods under the CUSMA Rules of Origin Regulations and the country of origin of the goods is not determined to be a single CUSMA country under section 4 or 5, the country of origin of those goods shall be the last CUSMA country in which the goods underwent production, other than minor processing, if a Certificate of Origin under the Proof of Origin of Imported Goods Regulations has been completed and signed for the goods.
9 Section 9 of the Regulations is replaced by the following:
9 Where the country of origin of imported goods is determined to be Canada under any of sections 4 to 7 and the goods have undergone production, other than minor processing, in another CUSMA country before their importation, the country of origin of the goods shall be the last CUSMA country in which the goods underwent that production.
10 Subsection 10(2) of the Regulations is replaced by the following:
(2) Where fungible goods have been commingled so that direct physical identification of the countries of origin of the goods is not practical, the country or countries of origin of each of the fungible goods shall be determined, at the choice of the importer of the goods, under subsection (1) or on the basis of an inventory management method set out in Part 2 of Schedule 8 to the CUSMA Rules of Origin Regulations.
11 (1) Paragraphs 11(2)(a) and (b) of the Regulations are replaced by the following:
- (a) their value for duty, as defined in subsection 2(1) of the Customs Act, except that for the purpose of determining that value, the reference in section 55 of that Act to “in accordance with regulations made under the Currency Act” shall be read as a reference to “in accordance with subsection 2(1) of the CUSMA Rules of Origin Regulations”; or
- (b) their value determined in accordance with Schedule 6 to the CUSMA Rules of Origin Regulations, with any modifications that the circumstances require.
(2) Paragraphs 11(3)(a) and (b) of the Regulations are replaced by the following:
- (a) where the importer of the goods has chosen that the value of the materials incorporated into the goods be determined under paragraph (2)(a), their value for duty, as defined in subsection 2(1) of the Customs Act, except that for the purpose of determining that value, the reference in section 55 of that Act to “in accordance with regulations made under the Currency Act” shall be read as a reference to “in accordance with subsection 2(1) of the CUSMA Rules of Origin Regulations”; and
- (b) where the importer of the goods has chosen that the value of the materials incorporated into the goods be determined under paragraph (2)(b), their value determined in accordance with Schedule 6 to the CUSMA Rules of Origin Regulations, with any modifications that the circumstances require, as though they were a material.
Imports of Certain Textile and Apparel Goods from Mexico or the United States Customs Duty Remission Order
12 The definitions apparel, fabric and made-up goods and spun yarn in section 1 of the Imports of Certain Textile and Apparel Goods from Mexico or the United States Customs Duty Remission Order footnote 3 are replaced by the following:
apparel means the following goods in the List of Tariff Provisions that are both cut or knit to shape and are sewn or otherwise assembled in Mexico or the United States from fabric or yarn produced or obtained outside the free trade area:
- (a) goods referred to in Chapters 61 and 62; and
- (b) goods referred to in heading 96.19 of textiles other than of wadding. (vêtements)
fabric and made-up goods means
- (a) cotton or man-made fibre fabric and cotton or man-made fibre made-up textile goods referred to in Chapters 52 to 55 of the List of Tariff Provisions, other than goods containing 36% or more by weight of wool or fine animal hair, and in Chapters 58, 60 and 63 of the List of Tariff Provisions, that are woven or knitted in Mexico or the United States from yarn produced or obtained outside the free trade area, that are woven or knitted in Mexico or the United States from yarn produced in the free trade area from fibre produced or obtained outside the free trade area, or that are knitted in Mexico or the United States from yarn spun in the free trade area from fibre produced or obtained outside the free trade area; or
- (b) goods of subheading 9404.90 that are finished and cut and sewn or otherwise assembled from fabrics referred to in any of subheadings 5208.11 to 5208.29, 5209.11 to 5209.29, 5210.11 to 5210.29, 5211.11 to 5211.20, 5212.11, 5212.12, 5212.21, 5212.22, 5407.41, 5407.51, 5407.71, 5407.81, 5407.91, 5408.21, 5408.31, 5512.11, 5512.21, 5512.91, 5513.11 to 5513.19, 5514.11 to 5514.19, 5516.11, 5516.21, 5516.31, 5516.41 and 5516.91 that are produced or obtained outside the free trade area. (tissus et articles confectionnés)
spun yarn means cotton or man-made fibre yarns referred to in any of headings 52.05 to 52.07 and 55.09 to 55.11 that are spun in Mexico or the United States from fibre referred to in any of headings 52.01 to 52.03 and 55.01 to 55.07 that is produced or obtained outside the free trade area and, for imports from the United States, also includes goods of heading 56.05 that are formed in the United States from fibres that are obtained outside the free trade area. (filés)
13 Section 2 of the Order is replaced by the following:
2 Subject to section 3, remission is granted of the customs duty paid or payable at the Most-Favoured-Nation Tariff rates of customs duty on apparel, fabric and made-up goods and spun yarn imported from the United States or Mexico.
14 (1) Subsection 3(1) of the Order is replaced by the following:
3 (1) The remission granted under section 2 applies only to an amount not exceeding the annual quantitative limits for each of the goods referred to in that section that are set out in Appendices 1 to 3 of Annex 6–A to Chapter 6 of the Canada–United States–Mexico Agreement.
(2) Paragraph 3(2)(a) of the Order is replaced by the following:
- (a) at the time that the goods are accounted for under subsection 32(1), (3) or (5) of the Customs Act or are the subject of an application for a refund of the customs duty, a certificate issued under the Export and Import Permits Act and the Import Certificate Regulations, identifying the quantity available for purposes of remission or refund under Annex 6–A to Chapter 6 of the Canada–United States–Mexico Agreement;
15 The Schedule to the Order is replaced by the schedule set out in the schedule to these Regulations.
Order Imposing a Surtax on the Importation of Certain Steel Goods
16 Section 1 of the Order Imposing a Surtax on the Importation of Certain Steel Goods footnote 4 is replaced by the following:
1 For the purposes of this Order, the origin of the goods is determined in accordance with the rules of origin set out in the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations or the Determination of Country of Origin for the Purpose of Marking Goods (Non-CUSMA Countries) Regulations, as the case may be.
Coming into Force
17 These Regulations come into force on the day on which section 190 of the Canada–United States–Mexico Agreement Implementation Act, chapter 1 of the Statutes of Canada, 2020, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.
SCHEDULE
(Section 15)
SCHEDULE
(Subparagraph 3(2)(c)(i))
Exporter’s Certification of Non-Originating Textile Goods
I, the exporter of the goods referred to in the attached invoice or sales agreement, certify that those goods comply with the applicable requirements specified in Annex 6–A to Chapter 6 of the Canada–United States–Mexico Agreement.
NAME:
TITLE:
COMPANY:
TELEPHONE:
FAX:
INVOICE NO.:
Signature of exporter
Date
N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2020-154, Order Repealing Certain Orders Made Under the Customs Tariff (CUSMA).