Rules of Origin for Casual Goods Under Free Trade Agreements
Memorandum D11-4-13

ISSN 2369-2391

Ottawa, November 29, 2017

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In Brief

  1. This memorandum has been revised to reflect the implementation of the Canada-Ukraine Free Trade Agreement and the Canada-European Union Comprehensive Economic and Trade Agreement. Changes have been made to the “Guidelines and General Information” to provide policy and procedural information related to the administration of this free trade agreement.
  2. The editing revisions made in this memorandum do not affect or change any of the existing policies or procedures.

Rules of origin for casual goods regulations are used to determine the entitlement of casual goods to preferential tariff treatment with respect to Canada’s Free Trade Agreements. This memorandum contains guidelines concerning the administration of the regulations named below.

Legislation

Guidelines and General Information

1. Casual goods, defined in each of the regulations listed in the Legislation section above, are goods that are not intended for sale or for any industrial, occupational, commercial, institutional, or other like use. The goods may accompany an importer or traveller arriving in Canada, or they may be parcels addressed to individual recipients in Canada.

2. Casual goods, as defined in each of the Regulations listed in the Legislation section above, are deemed originating where:

3. In addition, under NAFTA, casual goods acquired in the United States are eligible for the Mexico tariff treatment if they are marked so as to indicate that they are a product of Mexico and they are marked in accordance with U.S. marking legislation. Similarly, casual goods acquired in Mexico are eligible for the United States tariff treatment if they are marked so as to indicate that they are a product of the United States and they are marked in accordance with Mexican marking legislation.

4. To be eligible for preferential tariff treatment under a Free Trade Agreement (FTA), casual goods must be acquired in the FTA territory and must enter Canada, or be shipped to Canada, from that territory as defined in the FTA. For example, to be eligible for preferential tariff treatment under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), casual goods acquired in an EU country or other CETA beneficiary must enter Canada, or be shipped to Canada, from an EU country or other CETA beneficiary. The territory of the CETA is defined in the Regulations Defining “EU country or other CETA beneficiary”. The territory of all other FTAs is defined in each FTA.

5. Marking imported goods in a deceptive manner, or altering or removing marks, so as to mislead another person as to the country of origin, is considered an offence under paragraph 153(c) of the Customs Act (the Act). This paragraph prohibits any action that evades or attempts to evade the payment of duties. An offence under section 153 of the Act is subject to sanctions under section 160 of the Act.

6. The Proof of Origin of Imported Goods Regulations exempts importers of casual goods from the requirement to present a certificate of origin for the goods or to make a declaration of origin attesting to possession of a certificate.

Additional Information

7. For more information, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time / except holidays). TTY is also available within Canada: 1-866-335-3237.

References

Issuing office:
Trade and Anti-dumping Programs Directorate
Headquarters file:
 
Legislative references:

Customs Act
NAFTA Rules of Origin for Casual Goods Regulations
CIFTA Rules of Origin for Casual Goods Regulations
CCFTA Rules of Origin for Casual Goods Regulations
CCRFTA Rules of Origin for Casual Goods Regulations
CPFTA Rules of Origin for Casual Goods Regulations
CCOFTA Rules of Origin for Casual Goods Regulations
CEFTA Rules of Origin for Casual Goods Regulations
CJFTA Rules of Origin for Casual Goods Regulations
CPAFTA Rules of Origin for Casual Goods Regulations
CUFTA Rules of Origin for Casual Goods Regulations
CETA Rules of Origin for Casual Goods Regulations
Proof of Origin of Imported Goods Regulations

Other references:
 
Superseded memorandum D:
D11-4-13 dated June 6, 2017
Date modified: