Origin of goods
Resources
These 2 elements establish the customs rate of duty payable on imported goods:
- the origin of goods and
- the applicable tariff classification number
The origin of a good is represented by a 2-digit tariff treatment code declared on the Customs Coding Form, B3-3. See D Memorandum D11-4-2, Proof of Origin of Imported Goods for a list of applicable tariff treatment codes.
You may pay a lower rate of duty on imported goods thanks to Canada’s free trade agreements and other preferential tariff treatments.
Goods may be entitled to a tariff treatment if they meet specific requirements, such as:
- rules of origin
- proof of origin requirements
- shipping requirements
- a term or condition contained in, or made following, an agreement
On this page
Legislation
Origin of goods for the purpose of tariff treatments are dealt with in:
- Customs Tariff Act, sections 16 to 18 and 24 (rules of origin and shipping requirements)
- Customs Act, section 35.1
- Proof of Origin of Imported Goods Regulations
Issue-specific interpretations
Rules of origin and shipping requirements
The CBSA uses rules of origin to determine which goods are entitled to a particular tariff treatment. The rules of origin set out how much production must occur in Canada or in another country for the goods to be considered "originating in" that foreign country and entitled to a specific tariff treatment. This ensures that zero or reduced duty rates are only applied to countries with a Canadian trade agreement.
Goods must be classified according to the Harmonized Commodity Description and Coding System so that the rules of origin can be properly applied. Each tariff treatment is linked to certain rules of origin.
All claims for a preferential tariff treatment must also meet the shipping requirements (such as direct shipment, transit and transhipment) for that tariff treatment. The shipping provisions identify the requirements that the goods must meet while coming to Canada. For instance, the goods must remain under customs control at all times and not undergo any production other than unloading, reloading or splitting up of loads, or operations required to keep the goods in acceptable condition (such as refrigeration, repacking, etc.).
Rules of origin and shipping requirements are included in Canada's trade agreements and relevant legislation and regulations. For more information, refer to D Memoranda D11 series.
Proof of origin
Claims for preferential tariff treatment must be supported by the proof of origin required by the Proof of Origin of Imported Goods Regulations. Depending on the goods and tariff treatment, proof of origin may be one of the following:
- a certificate of origin in a prescribed format
- an exporter's statement of origin
- an origin declaration
- a certification of origin containing minimum data elements in no prescribed format
The importer must have valid proof of origin in their possession at the time of accounting to be provided to the CBSA upon request.
The following tables summarize the required proof of origin and specify who may certify the origin of the good for each of Canada's free trade agreements (FTAs) and for other countries.
Free trade agreement countries
| Free trade agreement | Parties to agreement | Proof of origin requirement | Who can certify origin |
|---|---|---|---|
| Canada-Chile Free Trade Agreement (CCFTA) |
|
Prescribed forms: B240 B240-S |
Exporter |
| Canada-Colombia Free Trade Agreement (CCOFTA) |
|
Prescribed forms: BSF459 BSF459-S |
Exporter |
| Canada-Costa Rica Free Trade Agreement (CCRFTA) |
|
Prescribed forms: B246 B246-S |
Exporter |
| Canada-European Free Trade Association Free Trade Agreement (CEFTA) |
|
Origin declaration: CEFTA (Appendix II to Annex C: Rules of Origin and Administration Co-Operation) |
Exporter |
| Comprehensive Economic Trade Agreement (CETA) |
|
Origin declaration: CETA (Annex 2 of the Protocol on Rules of Origin and Origin Procedures) |
Exporter |
| Canada-Honduras Free Trade Agreement (CHFTA) |
|
Prescribed forms: BSF747 BSF747-S |
Exporter |
| Canada-Israel Free Trade Agreement (CIFTA) |
|
Prescribed form: B239 |
Exporter |
| Canada-Jordan Free Trade Agreement (CJFTA) |
|
Prescribed forms: BSF303 BSF303-A |
Exporter |
| Canada-Korea Free Trade Agreement (CKFTA) |
|
Prescribed forms: BSF760 BSF760-K |
Exporter |
| Canada-Panama Free Trade Agreement (CPAFTA) |
|
Prescribed forms: BSF631 BSF631-S |
Exporter |
| Canada-Peru Free Trade Agreement (CPFTA) |
|
Prescribed forms: BSF267 BSF267-S |
Exporter |
| Canada-Ukraine Free Trade Agreement (CUFTA) |
|
Origin declaration: CUFTA (Annex 3-B of Chapter 3: Rules of Origin and Origin Procedures) |
Exporter |
| Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA) |
|
Origin declaration: Canada-UK TCA Section C, Origin Procedures, Article 18 |
Exporter |
| Canada-United States-Mexico Agreement (CUSMA) |
|
No prescribed format, minimum data elements: CUSMA (Annex 5-A of Chapter 5, Origin Procedures) |
Importer Exporter Producer |
| Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) | Refer to Global Affairs' website for the list of countries that have ratified the CPTPP | No prescribed format minimum data requirements: CPTPP (Annex 3-B of Chapter 3, Rules of Origin and Origin Procedures) |
Importer Exporter Producer |
| Note: For those countries which have not yet ratified the CPTPP, its preferential tariff treatment cannot be claimed. | |||
Proof of origin from non-FTA countries
| Non-free trade agreement | Parties to agreement | Proof of origin requirement | Who can certify origin |
|---|---|---|---|
| Australia Tariff (AUT) and New Zealand Tariff (NZT) |
|
|
Vendor as indicated on the invoice (provided name and address) |
| Commonwealth Caribbean Countries Tariff (CCCT) |
|
|
Exporter of the goods located in the CCCT country in which the goods were finished prior to importation into Canada |
| General Tariff | Countries which are not members of the World Trade Organization (WTO) and with which Canada has no trade arrangement |
|
Vendor as indicated on the invoice (provided name and address) |
| General Preferential Tariff (GPT) | Refer to chart for listing of GPT countries |
|
Exporter of the goods located in the GPT country in which the goods were finished prior to importation into Canada |
| Least Developed Country Tariff (LDCT) | Refer to chart for listing of LDCT countries |
|
Exporter of the goods located in the LDCT country in which the goods were finished prior to importation into Canada |
| Most Favored Nation (MFN) | Members of the World Trade Organization (WTO) Refer to chart for listing of MFN countries |
|
Vendor as indicated on the invoice (provided name and address) |
Details on the proof of origin requirements for these non-free trade agreements can be found in Memorandum D11-4-2: Proof of Origin of Imported Goods.
Certificate of origin exceptions
As a general rule, the importer must have the proof of origin established by the free trade agreement with them to claim the associated preferential tariff treatment. However, there are exceptions to this requirement for casual goods and low value commercial goods. These exceptions are detailed in Memorandum D11-4-14: Certificate of Origin Under Free Trade Agreements.
Casual goods
Canada has waived the requirement for a proof of origin for the importation of casual goods. Casual goods are non-commercial goods that are acquired in an FTA country and not intended for resale in Canada.
Low-value commercial goods
Effective , for commercial goods with an estimated value for duty not exceeding CAN $3,300 and for which the benefit of preferential tariff treatment is claimed under any of Canada's free trade agreements currently in force:
- A certification of origin is not required
- A (written) statement on the commercial invoice certifying that the goods are originating is no longer required
However, the importer of the goods must still maintain records (for example, commercial invoice, B3-3 Canada Customs Coding Form, etc.) to substantiate that the goods satisfy the rules of origin.
Additional information on the increase to the LVS thresholds and repeal of the statement of origin can be found in 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.
Certification and verification of origin: Additional information
Under the CUSMA, the importer, exporter or producer certifies the origin with a set of minimum data elements. This can be provided electronically, on an invoice or any other document. The customs administration of the country of import performs verifications by communicating with the importer, exporter or producer of the goods.
Under the CEFTA, CETA and CUFTA, the exporter certifies the origin with an origin declaration. This can be provided electronically, on an invoice or any commercial document that describes the originating product in sufficient detail to enable its identification. The customs administration of the country of export performs verifications on behalf of the country of import.
Under the CPTPP, the importer, exporter or producer certifies the origin with a set of minimum data requirements. This can be provided electronically or on any commercial document. If an invoice was issued in a non-Party to the CPTPP, the certification of origin must be provided separately from the invoice. The customs administration of the country of import performs verifications by communicating with the importer, exporter or producer of the goods.
Applicable tariff treatments
Consult the latest Canadian Customs Tariff for the most recent List of countries and applicable tariff treatments.
Note:
The following are unilateral tariff treatments (that is, Canada receives no mutual benefit from the countries affected):
- the General Preferential Tariff (GPT)
- the Least Developed Country Tariff (LDCT)
- the Commonwealth Caribbean Countries Tariff (CCCT)
The Australia Tariff (AUT) and New Zealand Tariff (NT) recognize the trade relationship between those countries and Canada. There is no trade agreement with those countries under these tariff treatments.
Record keeping
The importer must keep complete records for six years from the import date to support their tariff treatment claim and make them available for review upon request. Refer to Memorandum D17-1-21, Maintenance of Records and Books in Canada by Importers for more information.
The burden of proof relating to the origin of any goods lies with the importer. Refer to Paragraph 152(3)(a) of the Customs Act for more information.
An exporter or a producer that signs a proof of origin must maintain a copy of the proof of origin for five years after signing.
If a tariff treatment is not declared correctly, an adjustment declaration may be necessary. For more information, refer to Memorandum D11-6-6, Self-Adjustments to Declarations of Origin, Tariff Classification, Value for Duty and Diversion of Goods.
Advance rulings and national customs rulings programs
Advance Rulings (AR) are legally-binding, written responses providing a determination on the origin of goods to be imported in the future. The advance ruling also provides the applicable tariff treatment for the goods.
Memorandum D11-4-16, provides more information on Origin Advance Rulings.
Memorandum D11-11-3, provides more information on Tariff Classification Advance Rulings.
National Customs Rulings (NCR) provide an origin ruling for goods to be imported in the future that are not subject to one of Canada's free trade agreements. An importer, foreign exporter or producer may apply for an NCR.
Memorandum D11-11-1, provides more information on National Customs Rulings.
Rulings for tariff classification, valuation, origin and marking: Overview page
The CBSA issues ARs and NCRs within 120 days of receipt of all necessary and complete information.
Contact us
For more information, contact the Border Information Service.
Hours: Monday to Friday, 8 am to 4 pm (eastern), except holidays
Within Canada: 1-800-461-9999
Outside Canada: 204-983-3500 or 506-636-5064. Long distance charges will apply.
TTY is also available within Canada: 1-866-335-3237
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