Regulatory Amendments and New Regulations Related to the Implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Customs Notice 18-27

1. In support of the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Canada Border Services Agency (CBSA) will implement the following regulatory amendments and new regulations, effective as of the date of coming into force December 30, 2018.

These regulatory changes are implemented in accordance with paragraph 167.1(b) of the Customs Act, and remain subject to future decisions from the Governor in Council.

Regulatory Changes

General

2. All necessary regulatory additions or changes to regulations made under the Customs Act to implement the CPTPP.

Specific

Certification of Origin of Goods Exported to a Free Trade Partner Regulations

3. 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 a CPTPP country, the Certificate of Origin be completed in English or French.

Exporters’ and Producers’ Records Regulations

4. Amendment of the definition of “advance ruling” set out in the Exporters’ and Producers’ Records Regulations to include reference to the advance ruling provisions of the TPP as defined in section 2 of the CPTPP Implementation Act, and amendment of section 4 of the Regulations to add a reference to the new subsection 97.1(1.1) of the Customs Act in addition to the reference to subsection 97.1(1) of that Act.

Free Trade Agreement Advance Rulings Regulations

5. Amendment of paragraph 2(d) of the Free Trade Agreement Advance Rulings Regulations to allow, for goods produced in a CPTPP country other than Canada, that producers of a material that is used in the production of those goods in a CPTPP country other than Canada may apply for advance ruling. As well, amendment of section 14 of the Regulations to include references to goods exported from a CPTPP country. With respect to the modification or revocation of an advance ruling, amendment of subparagraph 14(a)(vi) of the Regulations to include a reference to goods exported from a CPTPP country and to Article 2.6 of the TPP as defined in section 2 of the CPTPP Implementation Act. Amendment of paragraph 14(b) of the Regulations to add a reference to goods exported from a CPTPP country and a new subparagraph be added in order to reference an interpretation agreed to by Canada and a CPTPP country regarding Chapters two, three, four or five of the TPP as defined in section 2 of the CPTPP Implementation Act.

Tariff Item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations

6. Amendment of the Tariff Item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations to include reference to a CPTPP country to require that proof of exportation of the goods to a CPTPP country be submitted when accounting for the goods under section 32 of the Customs Act.

Refund of Duties Regulations

7. Amendment of the title to Part 5.1 of the Refund of Duties Regulations to make reference to a CPTPP 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 CPTPP country on or after December 30, 2018, and for which no claim for preferential tariff treatment under the CPTPP 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 CPTPP.

Proof of Origin of Imported Goods Regulations

8. Amendment of the Proof of Origin of Imported Goods Regulations in order to:

• a) require the importer or owner of the goods, for which the benefit of preferential tariff treatment under the CPTPP 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 or French at the time 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 by paragraph 13(a) of the Regulations, a written and signed declaration, in English or French, certifying that the goods originate in a CPTPP 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 CPTPP 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 CPTPP pursuant to the CPTPP Rules of Origin for Casual Goods Regulations;
• d) exempt the importer and owner of commercial goods, for which the estimated value for duty is less than $1,600 and for which the benefit of preferential treatment under the CPTPP is claimed, from the requirements of subsection 35.1(1) of the Customs Act if:
  • i) 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, and
  • ii) the importer or owner of the goods furnishes to an officer, at the times set out in section 13 of the Regulations, a written and signed statement from the importer, exporter or producer of the goods, certifying that the goods originate in a CPTPP country. The statement may be in English or French and on a commercial invoice or any other document;
• 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, imported by the same importer, that occur within a period not exceeding 12 months, as specified in the Certificate of Origin by the person who completed and signed it; and
• f) provide that a Certificate of Origin is acceptable as Proof of Origin for four years after the day on which it is signed.

New Regulations

New regulations about the certification of origin of goods imported from a free trade partner

9. The new regulations about the certification of origin of goods imported from a free trade partner in order to implement certain provisions of Articles 3.20 and 3.21 of the TPP as defined in section 2 of the CPTPP Implementation Act. The regulations will set out the criteria by which an importer may complete the CPTPP Certificate of Origin for goods for which preferential tariff treatment under the CPTPP will be claimed.

10. The new regulations about the CPTPP verification of origin regulations in order to implement definitions in Chapters 1 and 3 of the TPP as defined in section 2 of the CPTPP Implementation Act as well as details and procedures for verification of origin of imported goods under Chapters 3 and 4 of the TPP as defined in section 2 of the CPTPP Implementation Act and more specifically certain provisions of Article 3.27 of the TPP as defined in section 2 of the CPTPP Implementation Act, including any changes relating to details and procedures of domestic requirements. More specifically, to implement the CPTPP as well as to align with domestic requirements, the regulations will set out methods, other than a verification visit, that may be used in order to verify the originating status of goods imported into Canada from a CPTPP country. These methods will be the review of a verification questionnaire completed by the importer, exporter or producer of a good, the review of the written response from the importer, exporter or producer to a verification letter, or the review of other information received by these persons. These regulations will also set out details respecting premises or places that may be entered for a verification visit and will outline the details of the written notice of intention that must be sent before the visit. In addition, it will specify that certain documents must be transmitted by any means that produces confirmation of receipt. The regulations will specify the content of the verification letters and questionnaires, including that they must specify the name and title of the officer who is sending it, the time within which a response must be provided or that the questionnaire must be completed and returned, as the case may be. The regulations will describe the details regarding the premises that may be entered during a verification visit (including those of the importer who completed the certificate of origin) and will include details regarding the written notice of intent that must be sent prior to the verification visit. The notice must include, among other things, the name and title of the officer who will conduct the visit, the purpose and scope of the visit as well as the name of the person whose premises is the object of the visit. 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, the exporter and the producer. These will provide record keeping requirements including requirements about the accessibility of useful documents to establish the origin of the goods. The regulations will also provide that an officer who intends to make a re-determination must indicate that the goods are not eligible to the CPTPP preferential tariff treatment and specify the date from which the CPTPP preferential tariff treatment may be denied or withdrawn with respect to goods the origin of which is being verified and the period within which the exporter or producer of the goods may provide written comments or additional information about the origin of those goods.

Date modified:

2018-12-27