Customs Notice 24-22: The New Canada-Ukraine Free Trade Agreement’s Regulatory Amendments and New Regulations Made Pursuant to the Customs Act

Ottawa, June 28, 2024

Legislation

1. This customs notice announces the regulatory amendments and new regulations proposed in support of the implementation of the new Canada-Ukraine Free Trade Agreement (CUFTA).

2. These regulatory amendments and new regulations are to come into force on July 1, 2024 in line with the new CUFTA’s implementation, and will be made retroactively pursuant to section 167.1(b) of the Customs Act, on condition that Her Excellency the Governor in Council makes them.

3. More information on the new CUFTA’s implementation can be found in Customs Notice 24-21 - Implementation of the New Canada-Ukraine Free Trade Agreement.

4. The definition of “CUFTA” is amended in subsection 2(1) of the Customs Act to have the meaning assigned by the definition Agreement in section 2 of the Canada–Ukraine Free Trade Agreement Implementation Act, 2023 which reads: Agreement means the Free Trade Agreement between Canada and Ukraine, done at Ottawa on September 22, 2023.

5. Subsection 2(1) of the Customs Act was also amended to add CUFTA 2017 which has the meaning assigned by the definition Agreement in section 2 of the Canada-Ukraine Free Trade Agreement Implementation Act, which read: Agreement means the Free Trade Agreement between Canada and Ukraine, done at Kyiv on July 11, 2016.

6. The definition CUFTA 2017 in subsection 2(1) of the Customs Act will be repealed on the sixth anniversary of the entry into force date of the new Agreement (July 1, 2030).

7. A distinction between CUFTA 2017 and the new Agreement is required to be made in certain regulations. The new CUFTA will be referred to in this customs notice as the “Agreement”. The original CUFTA will be referred to as “CUFTA 2017”.

8. Please note that Customs Notice (CN) CN17-25 - Proposed Regulatory Amendments and Proposed New Regulations Related to the Implementation of the Canada-Ukraine Free Trade Agreement (CUFTA) proposed new regulations and regulatory amendments in support of CUFTA 2017.

9. This notice proposes new regulations and regulatory amendments to be made subsequent to those amendments, in support of the Agreement, and builds upon the proposals in CN 17-25.

Regulatory amendments

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

10. CN 17-25 proposed that a new paragraph be added to section 3 of the Certification of Origin of Goods Exported to a Free Trade Partner Regulations to provide that when goods are exported from Canada to Ukraine, the Certificate of Origin be completed in English, French or Ukrainian.

11. This notice does not require an amendment here as the Ukrainian language still applies.

Exporters’ and Producers’ Records Regulations

12. CN 17-25 proposed that the definition “advance ruling” in the Exporters’ and Producers’ Records Regulations be amended to include a reference to the advance ruling provisions of CUFTA 2017.

13. This notice proposes that the definition of “advance ruling” be amended to include a reference to the advance rulings provision of the Agreement and that a reference to the advance rulings provision of CUFTA 2017 remain, despite the amendment to the definition of "CUFTA" in the Customs Act and given the addition of the definition “CUFTA 2017” in that Act.

Free Trade Agreement Advance Rulings Regulations

14. CN 17-25 proposed that paragraph 14(b) of the Free Trade Agreement Advance Rulings Regulations be amended to include a reference to goods exported from Ukraine and that a new subparagraph be added to make reference to an interpretation agreed to by Canada and Ukraine regarding Chapter 2 or 3 of CUFTA 2017. It also proposed that paragraph 14(h) be amended to include a new subparagraph to the effect that an advance ruling can be modified or revoked in order to conform to a modification of Chapter 2 or 3 of CUFTA 2017.

15. This notice proposes that paragraph 14(b) be amended so that, in the case of goods exported from Ukraine, the fact that the advance ruling is not consistent with an interpretation agreed to between Canada and Ukraine regarding Chapter 3 of the Agreement may be grounds for modification or revocation of the advance ruling and the fact that the ruling is not consistent with an interpretation agreed to between Canada and Ukraine regarding chapter 3 of CUFTA 2017 remains a possible ground for modification or revocation of the advance ruling, despite the modification of the definition of “CUFTA” in the Customs Act and given the addition of the definition “CUFTA 2017” in that Act. It also proposes to amend paragraph 14(h) so that the need to make the advance ruling consistent with an amendment to Chapter 3 of the Agreement may be grounds for modifying or revoking the advance ruling and that the need to make the ruling consistent with an amendment to Chapter 3 of CUFTA 2017 remains a possible reason for modifying or revoking the advance ruling, despite the modification of the definition of “CUFTA” in the Customs Act and given the addition of the definition “CUFTA 2017” in that Act.

Refund of Duties Regulations

16. CN 17-25 proposed that the title of Part 5.1 of the Refund of Duties Regulations be amended to make reference to Ukraine. It further proposed that section 23.1 be amended to reference Ukraine, on or after August 1, 2017, and lastly proposed that paragraph 23.3 (b) be amended to include the preferential tariff treatment under CUFTA 2017.

17. This notice proposes that paragraph 23.3(b) be amended to refer to the preferential tariff treatment of CUFTA 2017 and to refer to the preferential tariff treatment of the Agreement.

Proof of Origin of Imported Goods Regulations

18. CN 17-25 proposed that the Proof of Origin of Imported Goods Regulations be amended to:

1. require the importer or owner of the goods, for which the preferential tariff treatment under CUFTA 2017 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, French or Ukrainian at the time set out in section 13 of the Regulations;
2. 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 Ukraine and that a completed Certificate of Origin is in the importer’s possession;
3. exempt the importer and owner of casual goods, for which the preferential tariff treatment under CUFTA 2017 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 CUFTA 2017 pursuant to the CUFTA Rules of Origin for Casual Goods Regulations;
4. exempt the importer and owner of commercial goods, for which the estimated value for duty is less than $1,600 and for which the preferential tariff treatment under CUFTA 2017 is claimed, from the requirements of subsection 35.1(1) of the Customs Act if
   1. 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
   2. the importer or owner of the goods furnishes to an officer, at the times set out in Section 13 of the Regulations, either:
      • a commercial invoice for the goods, containing a written and signed statement, in English or French, from the exporter or producer of the goods, certifying that the goods originate in Ukraine; or
      • a written and signed statement, in English or French, from the exporter or producer of the goods, certifying that the goods originate in Ukraine;
5. provide that where a Certificate of Origin is completed in Ukrainian, the importer or owner of the goods shall, at the request of an officer, furnish a translation of the Certificate of Origin, in English or French;
6. 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 by the exporter in the Certificate of Origin; and
7. provide that a Certificate of Origin is acceptable as Proof of Origin for four years after the day on which it is completed.

19. This notice proposes that these regulations be amended in order to:

1. require that the importer or owner of the goods for which the benefit of the preferential tariff treatment of the Agreement is requested, provide to the officer, as proof of origin in accordance with section 35.1 of the Customs Act, at the times provided for in section 13 of the Regulation, the certificate of origin for these goods, completed in French, English or Ukrainian;
2. exempt the importer and owner of goods from the requirements of subsection 35.1(1) of the Customs Act if one of them provides to the officer, at the time provided for in paragraph 13(a) of Regulation, a written and signed statement, in French or English, certifying that the goods originate in Ukraine and that the importer has in its possession the duly completed certificate of origin;
3. exempt the importer and owner of casual goods, for which the benefit of the preferential tariff treatment of CUFTA 2017 is claimed, from the requirements of subsection 35.1(1) of the Customs Act if these goods benefit from the preferential tariff treatment of CUFTA 2017 under the Rules of Origin for Casual Goods Regulations (CUFTA);
4. exempt the importer and owner of casual goods, for which the benefit of the preferential tariff treatment of the Agreement is claimed, from the requirements of subsection 35.1(1) of the Customs Act if these goods benefit from the preferential tariff treatment of CUFTA under the Rules of Origin for Casual Goods Regulations (CUFTA);
5. exempt the importer or owner from the requirements of paragraph 35.1(1) of the Customs Act where the benefit of the preferential tariff treatment of CUFTA 2017 is requested for commercial goods whose estimated customs value is less than $1,600 if the following conditions are met:
   1. 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,
   2. the importer or owner provides the officer, at the times provided for in section 13 of the Regulations, with one of the following documents:
      • a commercial invoice for the goods, containing a written and signed declaration, in French or English, from the exporter or producer of the goods, certifying that the goods originate in Ukraine,
      • a written and signed statement, in English or French, from the exporter or producer of the goods, certifying that the goods originate in Ukraine;
6. exempt the importer and owner of commercial goods, for which the estimated value for duty does not exceed $3,300 and for which the benefit of preferential tariff treatment under the Agreement is claimed, from the requirements of subsection 35.1(1) of the Customs Act if the goods do not form part of a series of imports undertaken or arranged for the purpose of avoiding the requirements of subsection 35.1(1) of the Customs Act.
7. provide that, when the certificate of origin is completed in Ukrainian, the importer or owner of the goods shall at the request of an officer, furnish a translation of the Certificate of Origin, in English or French;
8. provide that the certificate of origin may apply to a single importation of goods or to two or more importations of identical goods, imported by the same importer that occur within a period not exceeding 12 months as specified by the exporter in the Certificate of Origin;
   1. provide that a Certificate of Origin is acceptable as proof of origin for a period of four years following the date on which it was completed.

CUFTA Verification of Origin of Exported Goods Regulations

20. Item 8 in CN 17-25 proposed that the CUFTA Verification of Origin of Exported Goods Regulations be made in order to implement certain provisions of Article 3.26 of CUFTA 2017. It proposed that the Regulations set out methods, other than a verification visit, that could be used in order to verify the originating status of goods exported from Canada to Ukraine. These methods are the review of a verification questionnaire completed by the exporter or producer of goods, the review of the written response of the exporter or producer to a verification letter, or the review of other information received by these persons or by the producer or supplier of a material used in the production of the goods. It proposed that these regulations also set out what premises or places may be entered for a verification visit, and indicate that a written notice of intention to conduct a visit must be sent before the visit. It proposed that the Regulation also indicate that the written report required by subsection 97.201(3) of the Customs Act must be provided to the customs administration of Ukraine using any means of transmission that produces a receipt.

21. This notice proposes that these regulations be amended so that they continue to apply in respect of goods that are the subject of a claim for preferential tariff treatment under CUFTA 2017 despite the replacement of the definition of "CUFTA" in the Customs Act and given the addition of the definition “CUFTA 2017” in that Act.

CUFTA Verification of Origin of Imported Goods Regulations

22. CN 17-25 proposed that the CUFTA Verification of Origin of Imported Goods Regulations be made in order to implement certain provisions of Article 3.26 of CUFTA 2017. The Regulations set out methods, of sending verification requests and provided for the examination of the reports received in response to these requests.

23. This notice proposes that these regulations continue to apply in respect of goods that are the subject of a claim for preferential tariff treatment under CUFTA 2017 despite the replacement of the definition of "CUFTA" in the Customs Act and given the addition of the definition “CUFTA 2017” in that Act.

Proposed regulations

24. It is proposed that new regulations on the verification of origin of exported goods be made in order to implement certain provisions of Article 3.26 of the CUFTA. The Regulations will set out methods, other than a verification visit, that may be used in order to verify the originating status of goods exported from Canada to Ukraine. These methods will be the review of a verification questionnaire completed by the exporter or producer of goods, the review of the written response of the exporter or producer to a verification letter, or the review of other information received by these persons or by the producer or supplier of a material used in the production of the goods. These regulations will also set out what premises or places may be entered for a verification visit, and will indicate that a written notice of intention to conduct a visit must be sent before the visit. They will also indicate that the written report required by subsection 97.201(3) of the Customs Act must be provided to the customs administration of Ukraine using any means of transmission that produces a receipt.

25. It is proposed that new regulations on the verification of origin of imported goods be made to implement certain provisions of Article 3.26 of the CUFTA. The Regulations will set out the methods of sending verification requests and provide for the examination of the reports received in response to these requests.

Additional information

26. For more information, 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 may also be accessed for information.