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Uniform Regulations – Chapter Four of the Canada-Panama Free Trade Agreement (CPAFTA)
Memorandum D11-4-29

Ottawa, April 09, 2014

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In Brief

  • This memorandum is issued to publish the Memorandum of Understanding between the Government of Canada and the Government of the Republic of Panama concerning the uniform regulations for the interpretation, application and administration of Chapter Four of the Free Trade Agreement between Canada and the Republic of Panama.

This memorandum contains the Memorandum of Understanding between the Government of Canada and the Government of the Republic of Panama concerning Uniform Regulations of Chapter Four of the CPAFTA.

Table of Contents

Guidelines and General Information

1.   The Uniform Regulationselaborate in detail how CPAFTA Parties will interpret, apply, and administer the obligations regarding customs procedures under Chapter Four. They are designed to ensure consistent and uniform treatment of, and greater certainty for, importers, exporters, and producers in Canada and Panama.

Additional Information

2.   For more information, call contact the CBSA Border Information Service (BIS):
Calls within Canada & the United States (toll free): 1-800-461-9999
Calls outside Canada & the United States (long distance charges apply):
1-204-983-3550 or 1-506-636-5064

TTY: 1-866-335-3237

Contact Us online (webform)
Contact Us at the CBSA website

Appendix - Memorandum of Understanding between the Government of Canada and the Government of the Republic of Panama Concerning Uniform Regulations for the Interpretation, Application and Administration of Chapter Four of the Free Trade Agreement Between Canada and the Republic of Panama

The Government of Canada ("Canada") and the Government of the Republic of Panama ("Panama"), hereinafter referred to as the "Participants", pursuant to Article 4.12 of the Customs Procedures Chapter of the Free Trade Agreement Between Canada and the Republic of Panama("the Agreement"); wishing to establish uniform regulations for the interpretation, application and administration of Chapter Four (Customs Procedures) of the Agreement; Have come to the following understanding:

Certificate of Origin

1.   The Participants will ensure that the Certificate of Origin referred to in Article 4.02 of the Agreement is:

2.   The Participants understand that for the purposes of Article 4.02(5)(a) of the Agreement, a single Certificate of Origin may be used for:

Regarding Importations

3.   The Participants will not subject to penalties an importer that makes a corrected declaration of origin pursuant to Article 4.03(1)(d) of the Agreement, and pays any duties owing, in accordance with Article 4.03(3)(b), where:

4.   The Participants understand that, where, as a result of an origin verification conducted under Article 4.07 of the Agreement, the customs administration of a Participant determines that a good covered by a Certificate of Origin that applies to multiple importations of identical goods in accordance with Article 4.02(5)(b) of the Agreement does not qualify as an originating good, that Certificate may not be used to claim preferential tariff treatment for identical goods imported after the date that the written determination is provided under Article 4.07(14) of the Agreement.

Exceptions

5. (a) The Participants will ensure that the statement referred to in Article 4.04(a) of the Agreement is equivalent in substance to the following:

"I certify that the goods referred to in this invoice/sales contract originate under the rules of origin specified for these goods in the Free Trade Agreement between Canada and the Republic of Panama and that further production or any other operation outside the territories of the Participants has not occurred subsequent to production in the territories".

Signature: ____________________   Date: ____________________
 (b) The statement, where required by the customs administration of the Participant into whose territory the good is imported, will be attached to, or handwritten, stamped or typed on the invoice for the good.

6.   The Participants understand that for the purposes of Article 4.04 of the Agreement, "series of importations" means two or more importations of a good accounted for separately but covered by one commercial invoice issued by the seller of the good to the purchaser of the good.

Records

7.   The Participants will require that the documentation and records maintained under Article 4.06 of the Agreement be maintained in such a manner as to enable an officer of the customs administration of a Participant, in conducting a verification of origin under Article 4.07 of the Agreement, to perform detailed verifications of the documentation and records to verify the information on the basis of which:

8.   The Participants will ensure that exporters and producers that are required to maintain records pursuant to Article 4.06(1)(a) of the Agreement, subject to the notification and consent requirements provided for in Article 4.07(5) of the Agreement, make those records available for inspection by an officer of the customs administration of a Participant conducting a verification visit and provide facilities for that inspection.

Origin Verifications

9.   The Participants understand that for the purposes of Article 4.07(1)(d) of the Agreement, the customs administration of a Participant may conduct a verification of origin with respect to a good that is imported into that Participant's territory by means of any method customarily used by the customs administration of the Participant conducting the verification.

10. The Participants understand that where their respective customs administrations conduct a verification under Article 4.07(1) of the Agreement, they may issue, on the basis of a response of an exporter or producer to a communication referred to in Article 4.07(1), a written determination under Article 4.07(14) of the Agreement in order to determine:

11. The Participants understand that, for the purposes of Article 4.07(11) of the Agreement, the customs administration conducting a verification visit will require an exporter or producer of a good to identify to that customs administration any observers designated to be present during that visit.

12. The common standards for the written questionnaires referred to in Article 4.07(1)(b) of the Agreement are set out in Annex II.

Advance Rulings

13. The common standards regarding the information to be submitted in an application for an advance ruling are set out in Annex III.

14. The Participants understand that for the purposes of Article 4.10 of the Agreement, an application to the customs administration of a Participant for an advance ruling will be completed in the language of that Participant, as set forth in paragraph 21 of this Memorandum of Understanding.

15. The Participants understand that for the purposes of Article 4.10(3) of the Agreement, if the customs administration of a Participant determines that an application for an advance ruling is incomplete, it may decline to process the application provided that:

16. The Participants understand that paragraph 4.10(4) of the Agreement and paragraph 3 will not be construed to prevent a person from reapplying for an advance ruling.

17. For the purposes of Article 4.10(8) of the Agreement, "importations of a good" is defined as:

Review and Appeal

18. The Participants understand that a determination of origin of a good by the customs administration of a Participant may be subject to review or appeal in accordance with Article 4.11 of the Agreement by the exporter or producer of the good who completed a Certificate of Origin for the good for which a claim for preferential tariff treatment was denied, including a denial of preferential tariff treatment under Articles 4.07(4) and 4.07(7) of the Agreement.

19. The Participants understand that where an advance ruling is issued under Article 4.10 of the Agreement, a modification or revocation of the advance ruling will be subject to review or appeal under Article 4.11 of the Agreement.

Miscellaneous

20. For the purposes of Chapter 4 of the Agreement and the Memorandum of Understanding, "completed" means completed, signed and dated.

21. The Participants understand that, for the purposes of this Memorandum of Understanding, the language of a Participant will be as follows:

22. Each Participant will ensure that its customs procedures governed by the Agreement are consistent with Chapter 4 of the Agreement and this Memorandum of Understanding.

Entry into Effect, Modification and Termination

23. This Memorandum of Understanding will enter into effect on the date of entry into force of the Agreement.

24. The Participants may amend this Memorandum of Understanding in writing at any time by mutual consent.

25. This Memorandum of Understanding will cease to have effect on termination of the Agreement.

Annex I - Form BSF631, Certificate of Origin – Free Trade Agreement Between Canada and the Republic of Panama, is available on the Canada Border Services Agency (CBSA) Web site.

Annex II - Common Standards for Written Questionnaires

1.   For the purposes of paragraph 12 of this Memorandum of Understanding, the Participants will seek to decide on uniform questions to be included in the general questionnaire.

2.   Subject to paragraph 3, where the customs administration of a Participant conducts a verification under Article 4.07(1)(b) of the Agreement, it will send to the exporter or producer the general questionnaire referred to in paragraph 1 of this Annex.

3.   For the purposes of Article 4.07(1)(b) of the Agreement, where the customs administration of a Participant requires specific information not provided in the general questionnaire, it may send to the exporter or producer a more specific questionnaire based on the information required to determine whether the good subject to verification is an originating good.

4.   For the purposes of paragraph 12 of this Memorandum of Understanding, the questionnaires, at the option of the exporter or producer, may be completed in either the language of the Participant into whose territory the good is imported or the language of the Participant in the territory where the exporter or producer is located.

Annex III - Common Standards for Information Required in the Application for an Advance Ruling

1.   For the purposes of Article 4.10(2) of the Agreement, the Participants understand that a request for an advance ruling will include the following:

2.   Where relevant to the issue that is the subject of the request for an advance ruling, the request must include, in addition to the information referred to in paragraph 1:

3.   Where the request for the advance ruling involves the application of a rule of origin that requires an assessment of whether materials used in the production of the goods undergo an applicable change in tariff classification, the request must include:

4.   Where the request for an advance ruling involves a value test, the applicant must indicate whether the request is based on the use of the transaction value or the net cost, or both.

5.   Where the request for an advance ruling involves the use of the transaction value, the request must include information sufficient to calculate the transaction value of the good with respect to the transaction of the producer or exporter of the good, in accordance with Article 3.04 of the Agreement.

6.   Where the request for an advance ruling involves the net cost of the good, the request must include:

7.   Where the request for an advance ruling is limited to the calculation of a value test, in addition to the information required under paragraph 1, only that information set out under paragraphs 4, 5 and 6 that is relevant to the issue that is the subject of the request for an advance ruling need be contained in the request.

References

Issuing office:
Trade and Anti-dumping Programs Directorate
Headquarters file:
Legislative references:
Other references:
Superseded memorandum D:
Date modified: