CHFTA Verification of Origin Regulations: SOR/2023-153

Canada Gazette, Part II, Volume 157, Number 14

Registration
SOR/2023-153 June 23, 2023

CUSTOMS ACT

P.C. 2023-657 June 23, 2023

Whereas the annexed Regulations give effect, in part, to a public announcement made on September 24, 2014, known as Customs Notice 14-023;

And whereas that Notice provides that the Regulations giving effect to that announcement come into force on October 1, 2014;

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

CHFTA Verification of Origin Regulations

Definitions

Definitions

1 The following definitions apply in these Regulations.

Act

means the Customs Act. (Loi)

competent authority

means the Secretaría de Estado en los Despachos de Industria y Comercio (Secretariat of State of Industry and Commerce), or a successor that Honduras provides written notice of to Canada. (autorité compétente)

customs administration

means the authority that is responsible under the law of Canada for the administration of customs laws and regulations. (administration douanière)

goods

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

material

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

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

Methods 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 any of 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 to a verification letter received from a person referred to in paragraph (a); or
• (c) any other information received from a person referred to in paragraph (a).

Verification letter and verification questionnaire

3 A verification letter or verification questionnaire must specify

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

Extension of time

4 A person who receives a verification letter or verification questionnaire may, on a single occasion and within the time specified in the letter or questionnaire, make a written request to the customs administration for an extension of that time. The extension granted must not exceed 30 days unless the person is an exporter or producer of the goods that are the subject of the verification of origin and one of the following circumstances applies:

• (a) owing to a bankruptcy of the exporter or producer or other financial distress situation or business reorganization, the exporter or producer or a related person has lost control of the records containing the information that substantiates the origin of the goods; or
• (b) for any other reason, that the exporter or producer could not reasonably have been expected to foresee and that results in a partial or complete loss of the records of the exporter or producer, including loss due to fire, flooding or other natural cause.

Verification Visit

Prescribed premises

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

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

Conditions

6 (1) An officer may conduct a verification visit only if:

• (a) an officer sends
  • (i) a written notice of the intention to conduct the visit to the person whose premises are to be the subject of the visit,
  • (ii) a written notice of the intention to conduct the visit to the competent authority, at least five business days before the notice is sent to the person referred to in subparagraph (i), and
  • (iii) if requested by Honduras, a written notice to the Embassy of Honduras in Canada of the intention to conduct the visit; and
• (b) the person whose premises is to be the subject of the visit consents to it in writing.

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 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 referred to in 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 postponement to the officer who sent the notice.

Maximum period

(2) The postponement referred to in subsection (1) may be for a period not 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.

Postponement

(3) The verification visit is postponed if, within 15 days after the day on which the competent authority receives the notice referred to in subparagraph 6(1)(a)(ii), Honduras sends a written request for the postponement to the officer who sent the notice.

Maximum period

(4) The postponement referred to in subsection (3) may be for a period not exceeding 60 days beginning on the day on which the notice is received or for any longer period that is agreed to by Honduras and the customs administration.

Observers

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

Observers’ role

(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 CHFTA

Requirements — exporter and producer

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

• (a) maintain in Honduras for five years after the date on which the Certificate of Origin was signed, or for a longer period specified by Honduras, in accordance with Article 5.6 of the CHFTA, records in relation to the origin of the goods;
• (b) provide the officer who is conducting the verification of origin with access to the records; and
• (c) if applicable, reply to the verification letter or complete and return the verification questionnaire to the officer within the period specified under paragraph 3(c) or, in the case of an extension, under section 4.

Consent to verification visit

(2) For the purposes 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 referred to in subparagraph 6(1)(a)(i) is received.

Notice of intention to re-determine origin

10 (1) An officer must, with any statement that they provide to an exporter or producer under subsection 42.2(1) of the Act indicating that goods that are the subject of a verification of origin are not eligible for preferential tariff treatment under CHFTA, attach a written notice of the intention to re-determine the origin of those goods under subsection 59(1) of the Act.

Content of notice

(2) The written notice must specify the date as of which preferential tariff treatment under CHFTA 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.

Means of Transmission

Confirmation of receipt

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

Coming into Force

October 1, 2014

12 These Regulations are deemed to have come into force on October 1, 2014.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2023-152, Regulations Amending Certain Regulations Made Under the Customs Act (CHFTA).