9 June 2005

PC 2005-1048 Regulations Amending the Proof of Origin of Imported Goods Regulations

Under the terms of the Canada-Israel Free Trade Agreement (CIFTA), Canada and Israel have agreed to implement those provisions of the Agreement that concern originating goods (other than goods of Chapters 50 through 63) from Israel or another CIFTA beneficiary which have been transshipped through the United States but have not undergone further production, other than minor processing, in the US or any processing that occurred in the US which did not increase the transaction value of the goods by greater than 10 per cent.

A number of amendments are need to certain regulations made under the Customs Act so as to meet the trade objectives agreed by Canada and Israel. The Regulations Amending the Proof of Origin of Imported Goods Regulations provide for a declaration by United States exporters that must accompany a Certificate of Origin for goods originating in Israel or another CIFTA beneficiary and which must state whether the goods have been subject, in the US, to any minor processing or any processing that did not increase the transaction value of the goods by greater than 10 per cent prior to their export to Canada.

The relevant requirements under subsections 4(2) and (3) of the Regulations pertain to goods imported from countries entitled to the benefits of the GPT (to which an entitlement still applies to Israeli goods), the Commonwealth Caribbean Countries Tariff and the Least Developed Countries Tariff. The presentation of an exporter’s statement of origin was incorrectly offered under subsection 4(2) of the Proof of Origin of Imported Goods Regulations as an alternative to the prescribed Form A – Certificate of Origin, and should have been more properly established under subsection 4(3) of the Regulations as a condition for exempting an importer or owner of qualifying goods from the requirement to present the prescribed form at the time of accounting under subsections 32(1), (3) or (5) of the Customs Act.