paragraph 4.2 of the ministerial decision of 19 December 2015 on
preferential rules of origin for Least Developed Countries
Communication
by Canada
The following communication,
dated 22 December 2016, is being circulated at the request of the delegation of
Canada.
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Canada's
rules of origin for least developed countries can be found at: http://laws-lois.justice.gc.ca/PDF/SOR-2013-165.pdf.
In
addition, the Canada Border Services Agency publishes an explanatory memorandum
at: http://cbsa-asfc.gc.ca/publications/dm-md/d11/d11-4-4-eng.pdf.
The
list of countries that are eligible for preferential treatment under Canada's
Least Developed Country Tariff (LDCT) is available at: http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2017/01-99/countries-pays-eng.pdf.
Elements of the Nairobi Decision
Ad valorem Criterion
·
Canada uses a
method of calculation based on the value of non-originating materials.
·
For apparel and
textile products, Canada allows the use of up to 75% non-originating
materials.
·
For other goods,
Canada allows the use of up to 80% non-originating materials (i.e., 60% of the
value may originate anywhere, 20% must originate from a current or former GSP
beneficiary, the remaining 20% must originate in an LDC).
Change
in Tariff Classification Criterion
·
Canada has no
change of tariff classification rules of origin in its regime.
Manufacturing
or Processing Operation Criterion
·
Canada only
applies manufacturing or processing operation rules of origin for apparel and
made-up textile products.
·
LDCs may use
fabric produced in current or former GSP beneficiaries in the production of
apparel, provided they add at least 25% value in the LDC.
·
LDCs may also use
fabric produced in an LDC or Canada in the production of apparel, with no value
requirement.
·
For made-up
textile products, LDCs must use fabric produced in an LDC or Canada, but there
is no value requirement. Note that in
all three cases, the yarn must also be produced in an LDC, Canada or a current
or former GSP beneficiary country.
·
These rules of
origin reflect the sourcing patterns and manufacturing capabilities of
LDCs.
Cumulation
·
Canada's rules of
origin allow cumulation with Canada, other LDCs, and current as well as former
GSP beneficiaries.
·
On 1 January
2015, Canada modernized its GSP regime by graduating 72 higher-income or
trade-competitive countries. In order
that the GSP modernization would not affect imports from LDCs, Canada made
consequential changes to its rules of origin for LDCs so that LDCs could
continue sourcing from former GSP beneficiaries when producing goods eligible
for duty-free treatment when imported into Canada.
Documentary
Requirements
·
Canada does not
require a certificate of non-manipulation.
·
Canada minimizes
documentation requirements by allowing for exporter self-certification and
requiring a certificate of origin only for textile and apparel goods (other
goods require only an Exporter's Statement of Origin).
Canada's most recent notifications to the WTO
regarding the LDCT
·
17 November 2014
– Canada notified GSP/LDC changes to the CTD (WT/COMTD/N/15/Add.3). Changes included the extension of the
programs by legislation until 2024, changes to the lists of beneficiary
countries and consequential changes to the LDC rules of origin (so that GSP
country coverage changes would not affect LDCs' market access to Canada). Notification contained a short explanation
and links to the legislation and regulations.
·
14 July 2011 –
Canada notified changes to the LDC regime as part of a larger notification to
the CRO (G/RO/N/71/Add.1). The LDC
changes included updates to rules of origin (tariff items updated to reflect
the most current Customs Tariff) and special measures introduced for Haiti
after the 2010 earthquake prevented goods from being shipped directly from
Haiti to Canada, as required under the rules of origin. Notification contained a short explanation and
links to the regulations.
·
10 May 2004 –
Canada notified GSP/LDCT changes to the CTD (WT/COMTD/N/15/Add.2). Changes included the extension of the
programs until 2014 and modification of the lists of beneficiaries.
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