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Updated: Memorandum D11-4-4: Rules of Origin Respecting the General Preferential Tariff and Least Developed Country Tariff

https://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-4-4-eng.html 

Ottawa, June 25, 2026

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Plain language summary

Target audience: Importers of commercial goods

Key content: Provides information about the administration of the rules of origin and shipping requirements respecting the General Preferential Tariff and Least Developed Country Tariff treatments

Keywords: Legislation, regulations, rules of origin, General Preferential Tariff (GPT), Least Developed Country Tariff (LDCT), proof of origin, shipping requirements

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Updates made to this D-memo

This memorandum has been revised to reflect changes to the rules of origin and shipping requirements for the General Preferential Tariff (GPT) and Least Developed Country Tariff (LDCT) treatments.

Guidelines

General

1. GPT and LDCT beneficiary countries can be found in the List of Countries and Applicable Tariff Treatments set out in the schedule of the Customs Tariff.

2. All countries entitled to the LDCT treatment are also beneficiaries of the GPT.

Definitions

3. The "Interpretation" section of the General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulations (the Regulations) contains definitions that are important in understanding the administration of the Regulations. For purposes of this memorandum, the following term is also important:

Ex-factory price

Means the total value of: (a) materials; (b) parts; (c) factory overhead; (d) labour; (e) any other reasonable costs incurred during the normal manufacturing process, e.g. duties and taxes paid on materials imported into a beneficiary country and not refunded when the goods were exported; and (f) a reasonable profit. [Note: Any costs incurred subsequent to the goods leaving the factory, such as freight, loading, temporary storage, are not included in the ex-factory price calculation.]

Product Coverage

4. The applicable GPT rates of duty appear in the Applicable Tariff Treatments set out in the schedule of the Customs Tariff. Goods for which a GPT rate is not indicated are not entitled to a GPT rate of duty but rather are subject to an alternate tariff treatment, usually the Most-Favoured-Nation Tariff (MFN). In addition, handicrafts from GPT beneficiary countries that meet the criteria outlined in Memorandum D10-15-13: Handicrafts, may benefit from duty-free treatment.

5. The applicable LDCT rates of duty accorded to goods are identified in the Applicable Tariff Treatments set out in the schedule of the Customs Tariff. Where an LDCT rate is not indicated, the goods in question are not entitled to the LDCT treatment, but rather are subject to an alternate tariff treatment, usually MFN.

Methods of Determining Country of Origin

General

6. The country of origin of goods imported from a GPT or LDCT beneficiary is determined using the rules of origin set out in sections 2 through 4 of the Regulations.

Note: The General Preferential Tariff Plus is still under development and is not yet in effect.

Rules of Origin for GPT

7. To determine if goods are entitled to the GPT, sections 1, 2, 5, 6 and 7 of the Regulations may be applied.

GPT – Application of section 2

8. A good is “wholly obtained or produced” in a GPT beneficiary if it meets one of the definitions set out in section 2 of the Regulations. “Wholly obtained” does not mean a good purchased in a GPT beneficiary country. Goods, which are “wholly obtained or produced” in a GPT beneficiary country, must not contain any foreign materials or parts from outside that GPT beneficiary country.

Example: Sugar cane grown and harvested in Pakistan would meet the definition of subsection 2(b) of the Regulations.

Example: Leather belts are produced in Egypt. They are made from leather wholly produced from cattle born and raised in Egypt. Therefore, the belts are wholly produced in Egypt by the application of subsection 2(j).

GPT – Application of subsection 3(1) and subparagraph 3(2)(a)(i)

9. To qualify for the GPT treatment by the application of subsection 3(1) of the Regulations, a maximum 40% of the ex-factory price of the good as packed for shipment to Canada, may originate outside a GPT beneficiary or Canada (i.e. at least 60% of the ex-factory price of the good as packed for shipment to Canada must originate in one or more GPT beneficiary countries or Canada.)

Example: A radio receiver subassembly is produced in Cambodia from imported parts. The receiver subassembly is then exported to the Philippines, where it is manufactured with other imported materials into a finished radio. As both countries are GPT beneficiary countries, the value of the materials and work done in Cambodia may be added to the work done in the Philippines to determine whether the radio meets the 60% originating content requirement.

Example: Insulated wire is manufactured in Bolivia. The materials used include steel from Canada, rubber from Côte d’Ivoire, and Bolivian materials and labour costs. To determine whether the wire meets the qualifying content requirement, the value of the Canadian steel may be added to the content originating from the GPT beneficiary countries.

10. The GPT 60% qualifying content may be cumulated from various GPT beneficiary countries or Canada in accordance with subparagraph 3(2)(a)(i) of the Regulations. However, any parts, materials or inputs used in the production of the goods that have entered the commerce of any country other than a GPT beneficiary country or Canada lose their GPT status, and as such, their value would count towards non-qualifying content.

11. To calculate the qualifying content, all GPT beneficiary countries are regarded as one single area. All value-added and manufacturing processes performed in the area may be integrated to meet the qualifying content requirement. Any Canadian content used in the production of the goods is also regarded as content from the GPT beneficiary country where the goods originate.

12. The goods must be finished in the GPT beneficiary country in the form in which they are imported into Canada.

Rules of Origin for LDCT

13. To determine if goods are entitled to the LDCT, sections 1, 2, 4, 5, 6 and 7 of the Regulations may be applied.

14. The goods must be finished in a LDCT beneficiary country in the form in which they are imported into Canada.

LDCT – Application of section 4

15. Where any good is identified in the schedule of the Customs Tariff as being accorded the LDCT, section 4 of the Regulations may be applied to determine if the goods qualify for the LDCT. A good is “wholly obtained or produced” in a least developed country (LDC) if it meets one of the definitions set out in section 2 of the Regulations.

16. Goods, which are wholly obtained or produced in an LDC under this section, must not contain any foreign materials or parts from outside that LDC. In addition, “wholly obtained” does not mean a good purchased in an LDC.

Example: Fish caught in Haiti would meet the definition of subsection 2(e) of the Regulations.

Example: Cotton is harvested in Burundi. The cotton is spun into yarn and then woven into blankets in Burundi. The blankets are wholly produced in Burundi by the application of subsection 2(j) of the Regulations.

17. When goods of the Harmonized System (HS) Chapters 50-63 are determined to originate in an LDC by the application of section 2 of the Regulations, Criteria E would be quoted in Field 6 of the Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255).

LDCT – Application of subsection 4(1)

18. Where any good, with certain exceptions, is identified in the schedule of the Customs Tariff as being accorded the LDCT, subsection 4(1) of the Regulations may be applied to determine if the good qualifies for the LDCT. Exception: this subsection may not be used to determine the origin of goods set out in Parts A1, A3 or B of the Schedule to the Regulations.

19. When determining if goods are entitled to the LDCT by the application of subsection 4(1) of the Regulations, exporters must ensure that the value of all materials, parts or products, including such materials, parts or products as threads, linings, interfacing, trims, zippers, buttons or fasteners which originate outside Canada or an LDC, or in an undetermined location, is no more than 80% of the ex-factory price of the goods as packed for shipment to Canada (i.e. at least 20% of the ex-factory price of the goods as packed for shipment to Canada must originate in one or more LDCs or Canada).

20. To calculate the qualifying content, all LDCs are regarded as one single area. All value-added and manufacturing processes performed in the area may be integrated to meet the qualifying content requirement. Any Canadian content used in the production of the goods is also regarded as content from the LDC where the goods originate. However, any parts, materials or inputs used in the production of the goods that have entered the commerce of any country other than an LDC or Canada lose their LDCT status, and as such, their value would count towards non-qualifying content.

Example: Wool of Yemen is combined with cotton of Benin and sewing thread of Canada to manufacture wool socks of HS classification 6115.94 in Yemen. Under this subsection, a good may contain parts and materials originating outside an LDC or Canada and valued at no more that 80% of the ex-factory price of the good as packed for shipment to Canada. The wool of Yemen origin represents 15% of the ex-factory price. The cotton of Benin and sewing thread of Canada represent an additional 7%. Paragraph 4(2)(a) permits inputs from other LDCs and Canada to be included in the 20% originating parts and materials requirement. The 15% input of wool from Yemen combined with the 7% cotton and sewing thread from Benin and Canada exceed the 20% minimum input requirement under this subsection. The socks therefore qualify for the LDCT.

Goods listed under Part A2 of the schedule, such as the wool socks in the above example, may qualify by application of subsection 4(1) or 4(3) of the Regulations.

21. When goods of HS Chapters 50-63, are determined to originate in an LDC by the application of subsection 4(1) of the Regulations, Criteria A would be quoted in Field 6 of the Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255).

LDCT – Application of subsection 4(3)

22. Subsection 4(3) of the Regulations may only be used to determine if “apparel” goods as set out in Parts A1 and A2 of the Schedule to the Regulations are entitled to the LDCT.

23. To be entitled to the LDCT, such “apparel” goods must be cut, or knit to shape, and sewn or otherwise assembled in that LDC.

24. When goods of Parts A1 and A2 of the Schedule to the Regulations are determined to originate in an LDC by the application of subsection 4(3) of the Regulations, Criteria B would be quoted in Field 6 of the Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255).

LDCT – Application of subsection 4(4)

25. Subsection 4(4) of the Regulations may only be used to determine if “T-Shirts and Certain Pants” that fall within Chapters 61 and 62 of the HS as set out in Parts A3 of the Schedule to the Regulations are entitled to the LDCT.

26. To be entitled to the LDCT, such “T-Shirts and Certain Pants” must be sewn or otherwise assembled in that LDC.

27. When goods of Part A3 of the Schedule to the Regulations are determined to originate in an LDC by the application of subsection 4(4) of the Regulations, Criteria C would be quoted in Field 6 of the Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255).

LDCT – Application of subsection 4(5)

28. Subsection 4(5) of the Regulations may only be used to determine if “Made Up Textile Articles” as set out in Part B of the Schedule to the Regulations are entitled to the LDCT.

29. To be entitled to the LDCT, such “Made Up Textile Articles” must be cut, or knit to shape, and sewn or otherwise assembled in an LDC. The fabric used in the assembly of such “Made Up Textile Articles ” must be produced in any LDC or in Canada.

30. When goods of Parts B of the Schedule to the Regulations are determined to originate in an LDC by the application of subsection 4(5) of the Regulations, Criteria D would be quoted in Field 6 of the Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255).

LDCT – Application of subsection 4(6)

31. When determining if goods set out in Part A1, A2, A3 or B of the Schedule to the Regulations are entitled to the LDCT by the application of subsections 4(3) to (5) of the Regulations, only the fabric or parts knit to shape that determine the tariff classification of the good and identified in accordance with the General Rules for the Interpretation (GIRs) of the HS shall be considered.

Certification Requirements – Commercial Goods

General

32. Section 4 of the Proof of Origin of Imported Goods Regulations outlines the requirements for the GPT and LDCT proof of origin. The exporter of the goods located in the GPT beneficiary country or LDC in which the goods were finished must complete the proof of origin.

33. The proof of origin is not required to be an original. In all cases, proof of origin must cross-reference the applicable invoice number(s). The invoice must list the goods for which the preferential treatment is claimed separately from the non-preference receiving goods. However, separate invoices are not required.

Proof of Origin – GPT

34. For all originating goods from GPT beneficiary countries, Form A – Certificate of Origin (refer to Appendix A) or the Exporter’s Statement of Origin (refer to Appendix B) may be submitted as proof of origin. In most cases, exporters should find the Exporter’s Statement of Origin easier to complete and provide than the alternate Form A.

Proof of Origin – LDCT

35. Except for originating goods of HS Chapters 50-63, either Form A – Certificate of Origin (refer to Appendix A) or the Exporter’s Statement of Origin (refer to Appendix B) may be submitted as proof of origin. In most cases, exporters should find the Exporter’s Statement of Origin easier to complete and provide than the alternate Form A.

36. For originating textile and apparel goods of HS Chapters 50-63 the Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255) must be submitted as proof of origin.

Form A – Certificate of Origin

37. A copy of the Generalized System of Preferences, Form A – Certificate of Origin, and the completion instructions are found in Appendix A.

38. Canada does not require Form A to be stamped and signed by an authority designated by the beneficiary country. Therefore, Form A does not need to be an original and Field No. 11 may be left blank.

39. For the GPT and LDCT, the origin criterion in Field No. 8 of Form A must be one of the following:

P means wholly (100%) produced (as defined in section 2 of the Regulations) in the GPT beneficiary country or LDC;

F for GPT, means, at least 60% of the ex-factory price was produced in the GPT beneficiary country. No more than 40% of the ex-factory price of the goods as packed for shipment to Canada may originate outside the GPT beneficiary country;

F for LDCT, means, at least 20% of the ex-factory price was produced in the LDC. No more than 80% of the ex-factory price of the goods as packed for shipment to Canada may originate outside the LDC;

G for GPT, means, at least 60% of the ex-factory price was cumulatively produced in more than one GPT beneficiary country or Canada. No more than 40% of the ex-factory price of the goods as packed for shipment to Canada may originate outside the GPT beneficiary countries;

G for LDCT, means, at least 20% of the ex-factory price was cumulatively produced in more than one LDC or Canada. No more than 80% of the ex-factory price of the goods as packed for shipment to Canada may originate outside the LDCs.

Exporter’s Statement of Origin

40. A copy of the Exporter’s Statement of Origin is set out in Appendix B. It must be completed and signed by the exporter in the GPT beneficiary country or LDC in which the goods were finished. The statement may be written out on a Form CI1, Canada Customs Invoice, or a commercial invoice or provided as a separate document. The information required in the statement must be provided in its entirety for goods to qualify for the GPT or LDCT.

41. If the statement is provided as a separate document from the invoice, the statement must reference the applicable invoice number(s). If the statement is for multiple invoices, the invoice numbers must be identified within the statement. A statement with an attached list of invoice numbers will not be acceptable.

Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255)

42. The Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255) must be completed by the exporter of the goods in the LDC in which the goods were finished in the form they are imported into Canada.

43. The applicable origin criteria for apparel goods and other made-up textile articles are set out in the Applicable Preference Criteria for Textile and Apparel Goods table:

GoodsPreference Criteria
“A” subsection 4(1)“B” paragraph 4(3)“C” paragraph 4(4)“D” subsection 4(5)“E” Section 2
Goods other than of HS Chapters 50-63YesNoNoNoYes
Goods as set out in the Schedule to the Regulations:
A1Apparel GoodsNoYesNoNoYes
A2Other Apparel GoodsYesYesNoNoYes
A3T-Shirts and Certain PantsNoNoYesNoYes
BMade-up Textile ArticlesNoNoNoYesYes

Certification Requirements – Casual Goods

44. Section 4 of the Proof of Origin of Imported Goods Regulations outlines the requirements for the GPT and LDCT proof of origin for casual goods. The importer is exempt from providing proof of origin, if the following conditions are met:

  1. there is no evidence to indicate that the goods originate in a country other than a GPT beneficiary country or LDC
  2. the goods are imported in a traveller’s baggage or consigned from an individual in the GPT beneficiary country or LDC to an individual in Canada; and
  3. the goods are declared at the time of importation as not intended for resale.

Obligations Regarding Importations

45. According to section 4 of the Proof of Origin of Imported Goods Regulations, to claim the GPT or LDCT benefits, importers must make a declaration that they have in their possession the required proof of origin; a Form A – Certificate of Origin or an Exporter’s Statement of Origin. For LDC-originating textile and apparel goods of HS Chapters 50-63, importers must make a declaration that they have in their possession the Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country (Form B255).

46. The importer makes this declaration on their Commercial Accounting Declaration (CAD), by inserting Code 009 for GPT or Code 008 for LDCT in Field No. 46, “Tariff Treatment Code”. Also, the importer declaration field on the CAD must be completed with the signature of the importer. For further instructions concerning the CAD, please refer to Memorandum D17-1-10: Coding of Customs Accounting Documents.

47. The proof of origin must be presented to the Canada Border Services Agency (CBSA) upon request. Failure to do so will result in the application of either the MFN treatment or other appropriate tariff treatment, and may result in the application of Administrative Monetary Penalty C152, “Importer or owner of goods failed to furnish proof of origin upon request.”

48. When requested by the CBSA to present the proof of origin, the importer may be required to provide a complete and accurate translation in English or French.

False Declarations

49. The making or assenting to the making of a false declaration in a statement made verbally or in writing to the CBSA is an offence under section 153 of the Customs Act and may be subject to sanctions under section 160 of that Act.

Shipping Requirements

50. Goods are entitled to the GPT or LDCT treatment only if they are shipped directly to Canada from a beneficiary country, which may include transhipment through intermediate, non-beneficiary countries.

51. In accordance with the Direct Shipment (Most-Favoured-Nation Tariff, General Preferential Tariff, General Preferential Tariff Plus, Least Developed Country Tariff, Commonwealth Caribbean Countries Tariff, Australia Tariff and New Zealand Tariff) Regulations, the goods may be shipped directly to Canada from the GPT beneficiary country or LDC in which the goods were certified and the importer must provide, upon request of an officer, the Through Bill of Lading (TBL) or documentation indicating the shipping route and all points of shipment and transshipment prior to the importation of the goods.

52. An importer may be requested to submit further documentation to substantiate the shipment such as sales order, cargo control documents, etc.

53. In accordance with the Direct Shipment (Most-Favoured-Nation Tariff, General Preferential Tariff, General Preferential Tariff Plus, Least Developed Country Tariff, Commonwealth Caribbean Countries Tariff, Australia Tariff and New Zealand Tariff) Regulations, for the purposes of subsection 17(1) of the Customs Tariff, and Section 5 of the Regulations, the goods retain their originating status when transported outside a GPT beneficiary country or LDC, if:

  • the goods remain under customs control outside the GPT beneficiary country or LDC;
  • there is documentary evidence that indicates the shipping route and all points of shipment and transhipment prior to the importation of the goods; and
  • the goods do not undergo any further production or other operation outside the GPT beneficiary country or LDC, other than unloading, reloading, separation from a bulk shipment, storing or any other operation necessary to transport the goods to Canada or to preserve them in good condition.

54. Upon request of an officer, importers shall provide a copy of the documents that establish that the goods remained under customs control and did not undergo any further production or other operations while in that other country.

55. Some alternative shipping requirements may be required or exempted. For more information, please refer to Memorandum D11-4-28: Haiti Goods Deemed to be Directly Shipped to Canada for the Purposes of the General Preferential Tariff (GPT) and the Least Developed Country Tariff (LDCT).

Appendix A – Form A – Certificate of Origin

Image 1Text version

Instructions on the Completion of Form A – Certificate of Origin

General Preferential Tariff (GPT)

If the 60% ex-factory price is not satisfied, or is not supported by adequate documentation, the goods are not eligible for the GPT and a Form A should not be issued for such goods.

Least Developed Country Tariff (LDCT)

If the 20% ex-factory price is not satisfied, or is not supported by adequate documentation, the goods are not eligible for the LDCT and a Form A should not be issued for such goods.

In order for a Form A to be accepted by the Canada Border Services Agency (CBSA) it must be properly completed, as follows:

  • Field No. 1 – Complete with the name, address, and country of the actual manufacturer or exporter of the goods. Please do not identify a trading house, freight forwarder, export broker, etc. The manufacturer or exporter must be located in the GPT or LDCT beneficiary country in which the goods are being certified.
  • Field No. 2 – If known, identify the consignee (name and address) in Canada. This field is no longer mandatory for goods exported to Canada from a GPT or LDCT beneficiary country.
  • Field No. 3 – The CBSA does not consider this a mandatory field, but you may indicate the shipping details, as far as known when Form A is completed.
  • Field No. 4 – This field is usually left blank. However, if Form A is issued after the goods have already been shipped, stamp or write “Issued Retrospectively.”
  • Field No. 5 – This field is not mandatory for goods exported to Canada. It is usually used to itemize goods if Form A covers two or more categories of goods (for example, items 1, 2, 3 or items a, b, c).
  • Field No. 6 – If the goods are crated or otherwise packaged, indicate the quantity of packages or crates. Also indicate any markings on the crates that will be useful in cross-referencing Form A to the through bill of lading or any documentation indicating the shipping route and all points of shipment and transshipment prior to the importation of the goods so that the CBSA officers can establish that the form covers the goods that are physically imported.
  • Field No. 7 – Describe the goods fully. Indicate makes, models, styles, serial numbers, or any other relevant description. It is in the exporter’s interest to give as full a description as possible. The CBSA will not accept a Form A that cannot be matched with the imported goods due to a vague description. It is also helpful to show the Harmonized System subheading of the goods in this field.
  • Field No. 8 – The origin criterion shown must be one of the following:
    • P means 100% of the goods produced in the GPT or LDCT beneficiary country in question;
    • F for GPT, means, at least 60% of the ex-factory price is produced in the GPT beneficiary country. No more than 40% of the ex-factory price of the goods as packed for shipment to Canada may originate outside the GPT beneficiary country;
    • F for LDCT, means, at least 20% of the ex-factory price is produced in the LDCT beneficiary country. No more than 80% of the ex-factory price of the goods as packed for shipment to Canada may originate outside the LDCT beneficiary country;
    • G for GPT, means at least 60% of the ex-factory price was cumulatively produced in more than one GPT beneficiary country or Canada. No more than 40% of the ex-factory price of the goods as packed for shipment to Canada may originate outside the GPT beneficiary countries;

    • G for LDCT, means at least 20% of the ex-factory price was cumulatively produced in more than one LDCT beneficiary country or Canada. No more than 80% of the ex-factory price of the goods as packed for shipment to Canada may originate outside the LDCT beneficiary countries;

      If any criterion other than P, F, or G is shown for goods exported to Canada, it will be assumed that the goods do not satisfy the Canadian GPT or LDCT rules of origin and they will not receive any tariff preference.

  • Field No. 9 – Give the weight or other quantity of the goods. The best unit of measure to use when completing this field is the unit of measure given for the particular goods in the Customs Tariff (e.g. number, pairs, dozens, kilograms, litres).
  • Field No. 10 – Provide the number and date of the commercial invoice. This helps the CBSA match the form with the invoice, but it also ensures that the signing officer has verified the ex-factory price of the proper goods.
  • Field No. 11 – This field may be left blank. Canada does not require Form A to be certified by a designated authority in the GPT or LDCT beneficiary country.
  • Field No. 12 – This is the exporter’s declaration that Form A is accurate and that the goods do meet the GPT or LDCT rules of origin. Proof of origin must be completed by the exporter of the goods in the GPT or LDCT beneficiary country in which the goods were finished. The individual completing the Form A on behalf of the company must be knowledgeable regarding the origin of the goods and have access to cost of production information, should a verification be requested.

Appendix B – Exporter’s Statement of Origin

I certify that the goods described in this invoice or in the attached invoice No. [Insert here] were produced in the beneficiary country of [Insert here] and that at least [Insert here] % of the ex-factory price of the goods originates in the beneficiary country/countries of [Insert here].

  • Name and title
  • Corporation name and address
  • Telephone and fax numbers
  • Signature and date (day/month/year)

References

Consult these resources for further information.

Applicable legislation

Superseded memoranda D

D11-4-4 dated October 16, 2017

Issuing office

Tariff Classification, Origin and Valuation Division
Trade Programs and Operations Directorate
Commercial and Trade Branch

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Date modified:

2026-06-25

Topic(s)

Trade Agreements
Freight & Transport

Information source

Canada Border Services Agency (CBSA)
Disclaimer

The foregoing information is provided for informational purposes only and is not intended as, nor should it be considered, professional advice or a substitute for conducting your own thorough research and review. Before making any decisions or taking any action based on the information provided, you should conduct your own independent investigation and/or seek professional advice from a qualified expert in the relevant field. The CSCB disclaims all liability for actions taken or not taken based on the information provided.