- the exclusive economic zone of Canada or the European Union's Member States, as determined by domestic law and consistent with Part V of the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982 ("UNCLOS");
- the continental shelf of Canada or the European Union's Member States, as determined by domestic law and consistent with Part VI of UNCLOS; or
- the Area as defined in Article 1(1) of UNCLOS,
- incorporated into another product; or
- further produced resulting in a product with a performance and life expectancy equivalent or similar to those of a new product of the same type;
2. For the purpose of subparagraphs 1(h) and (i), the following conditions apply to the vessel or factory ship:
- the vessel or factory ship must be:
- registered in a Member State of the European Union or in Canada; or
- listed in Canada, if such vessel:
- immediately prior to its listing in Canada, is entitled to fly the flag of a Member State of the European Union and must sail under that flag; and
- fulfills the conditions of sub-subparagraphs 2(b)(i) or 2(b)(ii);
- at least 50 per cent owned by nationals of a Member State of the European Union; or
- owned by companies that have their head office and their main place of business in a Member State of the European Union, and that are at least 50 per cent owned by a Member State of the European Union, public entities or nationals of a Member State of the European Union; or
- a Canadian national;
- an enterprise that is no more than 49 per cent foreign owned and has a commercial presence in Canada;
- a fishing vessel owned by a person referred to in sub-subparagraph (i) or (ii) that is registered in Canada, entitled to fly the flag of Canada and must sail under that flag; or
- an aboriginal organisation located in the territory of Canada. A person fishing under the authority of a Canadian aboriginal fishing licence must be a Canadian national.
Article 5 – Sufficient production
1. For the purpose of Article 2, products that are not wholly obtained are considered to have undergone sufficient production when the conditions set out in Annex 5 are fulfilled.
2. If a non-originating material undergoes sufficient production, the resulting product shall be considered as originating and no account shall be taken of the non-originating material contained therein when that product is used in the subsequent production of another product.
Article 6 – Tolerance
1. Notwithstanding Article 5.1, and except as provided in paragraph 3, if the non-originating materials used in the production of a product do not fulfil the conditions set out in Annex 5, the product shall be considered an originating product provided that:
- the total value of those non-originating materials does not exceed 10 per cent of the transaction value or ex-works price of the product;
- any of the percentages given in Annex 5 for the maximum value or weight of non-originating materials are not exceeded through the application of this paragraph; and
- the product satisfies all other applicable requirements of this Protocol.
2. Paragraph 1 does not apply to products wholly obtained in a Party within the meaning of Article 4. If the rule of origin specified in Annex 5 requires that the materials used in the production of a product be wholly obtained, the tolerance provided for in paragraph 1 applies to the sum of these materials.
3. Tolerance for textile and apparel products of Chapter 50 through 63 of the HS shall be determined in accordance with Annex 1.
4. Paragraphs 1 through 3 are subject to Article 8(c).
Article 7 – Insufficient production
1. Without prejudice to paragraph 2, the following operations are insufficient to confer origin on a product, whether or not the requirements of Articles 5 or 6 are satisfied:
- operations exclusively intended to preserve products in good condition during storage and transport; Footnote 1
- breaking-up or assembly of packages;
- washing, cleaning, or operations to remove dust, oxide, oil, paint, or other coverings from a product;
- ironing or pressing of textiles or textile articles of Chapter 50 through 63 of the HS;
- simple painting or polishing operations;
- husking, partial or total bleaching, polishing, or glazing of cereals or rice of Chapter 10 that does not result in a change of chapter;
- operations to colour or flavour sugar of heading 17.01 or 17.02; operations to form sugar lumps of heading 17.01; partial or total grinding of crystal sugar of heading 17.01;
- peeling, stoning, or shelling of vegetables of Chapter 7, fruits of Chapter 8, nuts of heading 08.01 or 08.02 or groundnuts of heading 12.02, if these vegetables, fruits, nuts, or groundnuts remain classified within the same chapter;
- sharpening, simple grinding, or simple cutting;
- simple sifting, screening, sorting, classifying, grading, or matching;
- simple packaging operations, such as placing in bottles, cans, flasks, bags, cases, boxes, or fixing on cards or boards;
- affixing or printing marks, labels, logos, and other like distinguishing signs on the products or their packaging;
- mixing of sugar of heading 17.01 or 17.02 with any material;
- simple mixing of materials, whether or not of different kinds; simple mixing does not include an operation that causes a chemical reaction as defined in the notes to Chapter 28 or 29 of Annex 5;
- simple assembly of parts of articles to constitute a complete article of Chapter 61, 62, or 82 through 97 of the HS or disassembly of complete articles of Chapter 61, 62, or 82 through 97 into parts;
- a combination of two or more operations specified in subparagraphs (a) to (o); and
- slaughter of animals.
2. In accordance with Article 3, all production carried out in the European Union and in Canada on a product is considered when determining whether the production undertaken on that product is insufficient within the meaning of paragraph 1.
3. For the purpose of paragraph 1, an operation shall be considered simple when neither special skills, nor machines, apparatus, or tools especially produced or installed for those operations are required for their performance or when those skills, machines, apparatus, or tools do not contribute to the product's essential characteristics or properties.
Article 8 – Unit of classification
For the purpose of this Protocol:
- the tariff classification of a particular product or material shall be determined according to the HS;
- when a product composed of a group or assembly of articles or components is classified pursuant to the terms of the HS under a single heading or subheading, the whole shall constitute the particular product; and
- when a shipment consists of a number of identical products classified under the same heading or subheading of the HS, each product shall be considered separately.
Article 9 – Packaging and packing materials and containers
1. If, under General Rule 5 of the HS, packaging is included with the product for classification purposes, it is considered in determining whether all the non-originating materials used in the production of the product satisfy the requirements set out in Annex 5.
2. Packing materials and containers in which a product is packed for shipment shall be disregarded in determining the origin of that product.
Article 10 – Accounting segregation of fungible materials or products
- If originating and non-originating fungible materials are used in the production of a product, the determination of the origin of the fungible materials does not need to be made through physical separation and identification of any specific fungible material, but may be determined on the basis of an inventory management system; or
- if originating and non-originating fungible products of Chapter 10, 15, 27, 28, 29, heading 32.01 through 32.07, or heading 39.01 through 39.14 of the HS are physically combined or mixed in inventory in a Party before exportation to the other Party, the determination of the origin of the fungible products does not need to be made through physical separation and identification of any specific fungible product, but may be determined on the basis of an inventory management system.
2. The inventory management system must:
- ensure that, at any time, no more products receive originating status than would have been the case if the fungible materials or fungible products had been physically segregated;
- specify the quantity of originating and non-originating materials or products, including the dates on which those materials or products were placed in inventory and, if required by the applicable rule of origin, the value of those materials or products;
- specify the quantity of products produced using fungible materials, or the quantity of fungible products, that are supplied to customers who require evidence of origin in a Party for the purpose of obtaining preferential treatment under this Agreement, as well as to customers who do not require such evidence; and
- indicate whether an inventory of originating products was available in sufficient quantity to support the declaration of originating status.
3. A Party may require that an exporter or producer within its territory that is seeking to use an inventory management system pursuant to this Article obtain prior authorisation from that Party in order to use that system. The Party may withdraw authorisation to use an inventory management system if the exporter or producer makes improper use of it.
4. For the purpose of paragraph 1, "fungible materials" or "fungible products" means materials or products that are of the same kind and commercial quality, with the same technical and physical characteristics, and which cannot be distinguished from one another for origin purposes.
Article 11 –Accessories, spare parts and tools
Accessories, spare parts, and tools delivered with a product that form part of its standard accessories, spare parts, or tools, that are not invoiced separately from the product and which quantities and value are customary for the product, shall be:
- taken into account in calculating the value of the relevant non-originating materials when the rule of origin of Annex 5 applicable to the product contains a percentage for the maximum value of non-originating materials; and
- disregarded in determining whether all the non-originating materials used in the production of the product undergo the applicable change in tariff classification or other requirements set out in Annex 5.
Article 12 – Sets
1. Except as provided in Annex 5, a set, as referred to in General Rule 3 of the HS, is originating provided that:
- all of the set's component products are originating; or
- when the set contains a non-originating component product, at least one of the component products or all of the packaging material and containers for the set is originating; and
- the value of the non-originating component products of Chapter 1 through 24 of the Harmonized System does not exceed 15 per cent of the transaction value or ex-works price of the set;
- the value of the non-originating component products of Chapter 25 through 97 of the HS does not exceed 25 per cent of the transaction value or ex-works price of the set; and
- the value of all of the set's non-originating component products does not exceed 25 per cent of the transaction value or ex-works price of the set.
2. The value of non-originating component products is calculated in the same manner as the value of non-originating materials.
3. The transaction value or ex-works price of the set shall be calculated in the same manner as the transaction value or ex-works price of the product.
Article 13 – Neutral elements
For the purpose of determining whether a product is originating, it is not necessary to determine the origin of the following which might be used in its production:
- energy and fuel;
- plant and equipment;
- machines and tools; or
- materials which do not enter and which are not intended to enter into the final composition of the product.
Article 14 – Transport through a third country
1. A product that has undergone production that satisfies the requirements of Article 2 shall be considered originating only if, subsequent to that production, the product:
- does not undergo further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the product to the territory of a Party; and
- remains under customs control while outside the territories of the Parties.
2. The storage of products and shipments or the splitting of shipments may take place where carried out under the responsibility of the exporter or of a subsequent holder of the products and the products remain under customs control in the country or countries of transit.
Article 15 – Returned originating products
If an originating product exported from a Party to a third country returns, it shall be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that the returning product:
- is the same as that exported; and
- has not undergone any operation beyond that necessary to preserve it in good condition.
Article 16 – Sugar
1. If a rule of origin requires that the net weight of non-originating sugar used in production not exceed a specified threshold, the product satisfies this condition if the total net weight of all mono-saccharides and di-saccharides contained in the product, or in the materials used in production, does not exceed this threshold.
2. The product also satisfies the condition in paragraph 1 if the threshold is not exceeded by the net weight of non-originating sugar classified in heading 17.01 or subheading 1702.30 through 1702.60 or 1702.90 other than malto-dextrin, chemically pure maltose, or "colouring" caramel, as described in the explanatory notes to heading 17.02, when used as such in the production of:
- the product; and
- the non-originating sugar-containing materials classified in subheading 1302.20, 1704.90, 1806.10, 1806.20, 1901.90, 2101.12, 2101.20, 2106.90, and 3302.10 that are used as such in the production of the product. Alternatively, the net weight of all mono-saccharides and di-saccharides contained in any of these sugar-containing materials may also be used. If the net weight of the non-originating sugar used in the production of these sugar containing materials or the net weight of mono-saccharides and di-saccharides contained in these sugar-containing materials is not known, the total net weight of these materials used as such in production must apply.
3. The net weight of any non-originating sugar as referred to in paragraph 2 may be calculated on a dry weight basis.
4. For the purpose of the rules of origin for heading 17.04 and 18.06, the value of non-originating sugar refers to the value of the non-originating material referred to in paragraph 2 that is used in production of the product.
Article 17 – Net cost
1. For the purpose of this Article, the following definitions apply, in addition to those set out in Article 1:
motor vehicle means a product of subheading 8703.21 through 8703.90;
net cost means total cost minus sales promotion, marketing and after-sales service costs, royalty, shipping and packing costs, and non-allowable interest cost that are included in the total cost;
non-allowable interest cost means interest costs incurred by a producer that exceed 700 basis points above the applicable national government interest rate identified for comparable maturities;
royalty means payments of any kind, including payments under technical assistance or similar agreements, made as consideration for the use or right to use any copyright, literary, artistic, or scientific work, patent, trademark, design, model, plan, secret formula or process, excluding those payments under technical assistance or similar agreements that can be related to specific services such as:
- personnel training, without regard to where it is performed; and
- if performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design and similar computer services, or other services;
sales promotion, marketing, and after-sales service costs means the following costs related to sales promotion, marketing, and after-sales service:
- sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing and after-sales service literature (product brochures, catalogues, technical literature, price lists, service manuals and sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; entertainment;
- sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise incentives;
- salaries and wages; sales commissions; bonuses; benefits (for example, medical, insurance, and pension); travelling and living expenses; and membership and professional fees for sales promotion, marketing, and after-sales service personnel;
- recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales training of customers' employees, if those costs are identified separately for sales promotion, marketing, and after-sales service of products on the financial statements or cost accounts of the producer;
- product liability insurance;
- office supplies for sales promotion, marketing, and after-sales service of products, if those costs are identified separately for sales promotion, marketing, and after-sales service of products on the financial statements or cost accounts of the producer;
- telephone, mail, and other communications, if those costs are identified separately for sales promotion, marketing, and after-sales service of products on the financial statements or cost accounts of the producer;
- rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centres;
- property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing, and after-sales service offices and distribution centres, where such costs are identified separately for sales promotion, marketing, and after-sales service of products on the financial statements or cost accounts of the producer; and
- payments by the producer to other persons for warranty repairs;
shipping and packing costs means the costs incurred in packing a product for shipment and shipping the product from the point of direct shipment to the buyer, excluding costs of preparing and packaging the product for retail sale; and
total cost means all product costs, period costs and other costs incurred in relation to the production of a product in Canada when:
- product costs means those costs that are associated with the production of a product and include the value of materials, direct labour costs, and direct overhead.
- period costs means those costs other than product costs that are expensed in the period in which they are incurred, including selling expenses and general and administrative expenses.
- other costs means all costs recorded on the books of the producer that are not product costs or period costs.
2. For the purpose of calculating the net cost of a product under Table D.1 (Annual Quota Allocation for Vehicles Exported from Canada to the European Union) in Annex 5-A, the producer of the product may:
- calculate the total cost incurred with respect to all products produced by that producer, subtract any sales promotion, marketing and after-sales service costs, royalty, shipping and packing costs, and non-allowable interest cost that is included in the total cost of all those products, and then reasonably allocate the resulting net cost of those products to the product;
- calculate the total cost incurred with respect to all products produced by that producer, reasonably allocate the total cost to the product, and then subtract any sales promotion, marketing and after-sales service costs, royalty, shipping and packing costs and non-allowable interest cost that is included in the portion of the total cost allocated to the product; or
- reasonably allocate each cost that forms part of the total cost incurred by that producer with respect to the product so that the aggregate of these costs does not include any sales promotion, marketing and after-sales service costs, royalty, shipping and packing costs, or non-allowable interest cost.
3. For the purpose of calculating the net cost of a product under paragraph 1, the producer may average its calculation over its fiscal year using any one of the following categories, on the basis of either all motor vehicles produced by that producer in the category or only those motor vehicles in the category that are produced by that producer and exported to the territory of the other Party:
- the same model line of motor vehicles in the same class of vehicles produced in the same plant in the territory of a Party;
- the same model line of motor vehicles produced in the same plant in the territory of a Party;
- the same model line of motor vehicles produced in the territory of a Party;
- the same class of motor vehicles produced in the same plant in the territory of a Party; or
- any other category as the Parties may decide.
Section C – Origin Procedures
Article 18 – Proof of origin
1. Products originating in the European Union, on importation into Canada, and products originating in Canada, on importation into the European Union, benefit from preferential tariff treatment of this Agreement on the basis of a declaration ("origin declaration").
2. The origin declaration is provided on an invoice or any other commercial document that describes the originating product in sufficient detail to enable its identification.
3. The different linguistic versions of the text of the origin declaration are set out in Annex 2.
Article 19 – Obligations regarding exportations
1. An origin declaration as referred to in Article 18.1 shall be completed:
- in the European Union, by an exporter in accordance with the relevant European Union legislation; and
- in Canada, by an exporter in accordance with Part V of the Customs Act,R.S.C., 1985, c. 1 (2nd Supp.).
2. The exporter completing an origin declaration shall at the request of the customs authority of the Party of export submit a copy of the origin declaration and all appropriate documents proving the originating status of the products concerned, including supporting documents or written statements from the producers or suppliers, and fulfil the other requirements of this Protocol.
3. An origin declaration shall be completed and signed by the exporter unless otherwise provided.
4. A Party may allow an origin declaration to be completed by the exporter when the products to which it relates are exported, or after exportation if the origin declaration is presented in the importing Party within two years after the importation of the products to which it relates or within a longer period of time if specified in the laws of the importing Party.
5. The customs authority of the Party of import may allow the application of an origin declaration to multiple shipments of identical originating products that take place within a period of time that does not exceed 12 months as set out by the exporter in that declaration.
6. An exporter that has completed an origin declaration and becomes aware or has reason to believe that the origin declaration contains incorrect information shall immediately notify the importer in writing of any change affecting the originating status of each product to which the origin declaration applies.
7. The Parties may allow the establishment of a system that permits an origin declaration to be submitted electronically and directly from the exporter in the territory of a Party to an importer in the territory of the other Party, including the replacement of the exporter's signature on the origin declaration with an electronic signature or identification code.
Article 20 – Validity of the origin declaration
1. An origin declaration shall be valid for 12 months from the date it was completed by the exporter, or for such longer period of time as provided by the Party of import. The preferential tariff treatment may be claimed, within this validity period, to the customs authority of the Party of import.
2. The Party of import may accept an origin declaration submitted to its customs authority after the validity period referred to in paragraph 1 for the purpose of preferential tariff treatment in accordance with that Party's laws.
Article 21 – Obligations regarding importations
1. For the purpose of claiming preferential tariff treatment, the importer shall:
- submit the origin declaration to the customs authority of the Party of import as required by and in accordance with the procedures applicable in that Party;
- if required by the customs authority of the Party of import, submit a translation of the origin declaration; and
- if required by the customs authority of the Party of import, provide for a statement accompanying or forming a part of the import declaration, to the effect that the products meet the conditions required for the application of this Agreement.
2. An importer that becomes aware or has reason to believe that an origin declaration for a product to which preferential tariff treatment has been granted contains incorrect information shall immediately notify the customs authority of the Party of import in writing of any change affecting the originating status of that product and pay any duties owing.
3. When an importer claims preferential tariff treatment for a good imported from the territory of the other Party, the importing Party may deny preferential tariff treatment to the good if the importer fails to comply with any requirement under this Protocol.
4. A Party shall, in conformity with its laws, provide that, if a product would have qualified as an originating product when it was imported into the territory of that Party but the importer did not have an origin declaration at the time of importation, the importer of the product may, within a period of time of no less than three years after the date of importation, apply for a refund of duties paid as a result of the product not having been accorded preferential tariff treatment.
Article 22 –Proof related to transport through a third country
Each Party, through its customs authority, may require an importer to demonstrate that a product for which the importer claims preferential tariff treatment was shipped in accordance with Article 14 by providing:
- carrier documents, including bills of lading or waybills, indicating the shipping route and all points of shipment and transhipment prior to the importation of the product; and
- when the product is shipped through or transhipped outside the territories of the Parties, a copy of the customs control documents indicating to that customs authority that the product remained under customs control while outside the territories of the Parties.
Article 23 – Importation by instalments
Each Party shall provide that if dismantled or non-assembled products within the meaning of General Rule 2(a) of the HS falling within Sections XVI and XVII or heading 7308 and 9406 of the HS are imported by instalments at the request of the importer and on the conditions set out by the customs authority of the Party of import, a single origin declaration for these products shall be submitted, as required, to that customs authority upon importation of the first instalment.
Article 24 – Exemptions from origin declarations
1. A Party may, in conformity with its laws, waive the requirement to present an origin declaration as referred to in Article 21, for low value shipments of originating products from another Party and for originating products forming part of the personal luggage of a traveller coming from another Party.
2. A Party may exclude any importation from the provisions of paragraph 1 when the importation is part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the requirements of this Protocol related to origin declarations.
3. The Parties may set value limits for products referred to in paragraph 1, and shall exchange information regarding those limits.
Article 25 – Supporting documents
The documents referred to in Article 19.2 may include documents relating to the following:
- the production processes carried out on the originating product or on materials used in the production of that product;
- the purchase of, the cost of, the value of, and the payment for the product;
- the origin of, the purchase of, the cost of, the value of, and the payment for all materials, including neutral elements, used in the production of the product; and
- the shipment of the product.
Article 26 – Preservation of records
1. An exporter that has completed an origin declaration shall keep a copy of the origin declaration, as well as the supporting documents referred to in Article 25, for three years after the completion of the origin declaration or for a longer period of time as the Party of export may specify.
2. If an exporter has based an origin declaration on a written statement from the producer, the producer shall be required to maintain records in accordance with paragraph 1.
3. When provided for in laws of the Party of import, an importer that has been granted preferential tariff treatment shall keep documentation relating to the importation of the product, including a copy of the origin declaration, for three years after the date on which preferential treatment was granted, or for a longer period of time as that Party may specify.
4. Each Party shall permit, in accordance with that Party's laws, importers, exporters, and producers in its territory to maintain documentation or records in any medium, provided that the documentation or records can be retrieved and printed.
5. A Party may deny preferential tariff treatment to a product that is the subject of an origin verification when the importer, exporter, or producer of the product that is required to maintain records or documentation under this Article:
- fails to maintain records or documentation relevant to determining the origin of the product in accordance with the requirements of this Protocol; or
- denies access to those records or documentation.
Article 27 – Discrepancies and formal errors
1. The discovery of slight discrepancies between the statements made in the origin declaration and those made in the documents submitted to the customs authorities for the purpose of carrying out the formalities for importing the products shall not, because of that fact, render the origin declaration null and void if it is established that this document corresponds to the products submitted.
2. Obvious formal errors such as typing errors on an origin declaration shall not cause this document to be rejected if these errors do not create doubts concerning the correctness of the statements made in the document.
Article 28 – Cooperation
1. The Parties shall cooperate in the uniform administration and interpretation of this Protocol and, through their customs authorities, assist each other in verifying the originating status of the products on which an origin declaration is based.
2. For the purpose of facilitating the verifications or assistance referred to in paragraph 1, the customs authorities of the Parties shall provide each other, through the European Commission, with addresses of the responsible customs authorities.
3. It is understood that the customs authority of the Party of export assumes all expenses in carrying out paragraph 1.
4. It is further understood that the customs authorities of the Parties will discuss the overall operation and administration of the verification process, including forecasting of workload and discussing priorities. If there is an unusual increase in the number of requests, the customs authorities of the Parties will consult to establish priorities and consider steps to manage the workload, taking into consideration operational requirements.
5. With respect to products considered originating in accordance with Article 3, the Parties may cooperate with a third country to develop customs procedures based on the principles of this Protocol.
Article 29 – Origin verification
1. For the purpose of ensuring the proper application of this Protocol, the Parties shall assist each other, through their customs authorities, in verifying whether products are originating and ensuring the accuracy of claims for preferential tariff treatment.
2. A Party's request for an origin verification concerning whether a product is originating or whether all other requirements of this Protocol are fulfilled shall be:
- based on risk assessment methods applied by the customs authority of the Party of import, which may include random selection; or
- made when the Party of import has reasonable doubts about whether the product is originating or whether all other requirements of this Protocol have been fulfilled.
3. The customs authority of the Party of import may verify whether a product is originating by requesting, in writing, that the customs authority of the Party of export conduct a verification concerning whether a product is originating. When requesting a verification, the customs authority of the Party of import shall provide the customs authority of the Party of export with:
- the identity of the customs authority issuing the request;
- the name of the exporter or producer to be verified;
- the subject and scope of the verification; and
- a copy of the origin declaration and, where applicable, any other relevant documentation.
4. When appropriate, the customs authority of the Party of import may request, pursuant to paragraph 3, specific documentation and information from the customs authority of the Party of export.
5. A request made by the customs authority of the Party of import pursuant to paragraph 3 shall be provided to the customs authority of the Party of export by certified or registered mail or any other method that produces a confirmation of receipt by that customs authority.
6. The customs authority of the Party of export shall proceed to the origin verification. For this purpose, the customs authority may, in accordance with its laws, request documentation, call for any evidence, or visit the premises of an exporter or a producer to review the records referred to in Article 25 and observe the facilities used in the production of the product.
7. If an exporter has based an origin declaration on a written statement from the producer or supplier, the exporter may arrange for the producer or supplier to provide documentation or information directly to the customs authority of the Party of export upon that Party's request.
8. As soon as possible and in any event within 12 months after receiving the request referred to in paragraph 4, the customs authority of the Party of export shall complete a verification of whether the product is originating and fulfils the other requirements of this Protocol, and shall:
- provide to the customs authority of the Party of import, by certified or registered mail or any other method that produces a confirmation of receipt by that customs authority, a written report in order for it to determine whether the product is originating or not, and that contains:
- the results of the verification;
- the description of the product subject to verification and the tariff classification relevant to the application of the rule of origin;
- a description and explanation of the production sufficient to support the rationale concerning the originating status of the product;
- information on the manner in which the verification was conducted; and
- where appropriate, supporting documentation; and
9. The period of time referred to in paragraph 8 may be extended by mutual consent of the customs authorities concerned.
10. Pending the results of an origin verification conducted pursuant to paragraph 8, or consultations under paragraph 13, the customs authority of the Party of import, subject to any precautionary measures it deems necessary, shall offer to release the product to the importer.
11. If the result of an origin verification has not been provided in accordance with paragraph 8, the customs authority of the importing Party may deny preferential tariff treatment to a product if it has reasonable doubt or when it is unable to determine whether the product is originating.
12. If there are differences in relation to the verification procedures of this Article or in the interpretation of the rules of origin in determining whether a product qualifies as originating, and these differences cannot be resolved through consultations between the customs authority requesting the verification and the customs authority responsible for performing the verification, and if the customs authority of the importing Party intends to make a determination of origin that is inconsistent with the written report provided under paragraph 8(a) by the customs authority of the exporting Party, the importing Party shall notify the exporting Party within 60 days of receiving the written report.
13. At the request of either Party, the Parties shall hold and conclude consultations within 90 days from the date of the notification referred to in paragraph 12 to resolve those differences. The period of time for concluding consultations may be extended on a case by case basis by mutual written consent between the Parties. The customs authority of the importing Party may make its determination of origin after the conclusion of these consultations. The Parties may also seek to resolve those differences within the Joint Customs Cooperation Committee referred to in Article 34.
14. In all cases, the settlement of differences between the importer and the customs authority of the Party of import shall be under the law of the Party of import.
15. This Protocol does not prevent a customs authority of a Party from issuing a determination of origin or an advance ruling relating to any matter under consideration by the Joint Customs Cooperation Committee or the Committee on Trade in Goods established under Article 26.2(a) (Specialised Committees) or from taking any other action that it considers necessary, pending a resolution of the matter under this Agreement.
Article 30 – Review and appeal
1. Each Party shall grant substantially the same rights of review and appeal of determinations of origin and advance rulings issued by its customs authority as it provides to importers in its territory, to any person who:
- has received a determination on origin in the application of this Protocol; or
- has received an advance ruling pursuant to Article 33.1.
2. Further to Articles 27.3 (Administrative proceedings) and 27.4 (Review and appeal), each Party shall provide that the rights of review and appeal referred to in paragraph 1 include access to at least two levels of appeal or review including at least one judicial or quasi-judicial level.
Article 31 – Penalties
Each Party shall maintain measures imposing criminal, civil or administrative penalties for violations of its laws relating to this Protocol.
Article 32 – Confidentiality
1. This Protocol does not require a Party to furnish or allow access to business information or to information relating to an identified or identifiable natural person, the disclosure of which would impede law enforcement or would be contrary to that Party's law protecting business information and personal data and privacy.
2. Each Party shall maintain, in conformity with its law, the confidentiality of the information collected pursuant to this Protocol and shall protect that information from disclosure that could prejudice the competitive position of the person providing the information. If the Party receiving or obtaining the information is required by its laws to disclose the information, that Party shall notify the person or Party who provided that information.
3. Each Party shall ensure that the confidential information collected pursuant to this Protocol shall not be used for purposes other than the administration and enforcement of determination of origin and of customs matters, except with the permission of the person or Party who provided the confidential information.
4. Notwithstanding paragraph 3, a Party may allow information collected pursuant to this Protocol to be used in any administrative, judicial, or quasi-judicial proceedings instituted for failure to comply with customs related laws implementing this Protocol. A Party shall notify the person or Party who provided the information in advance of such use.
5. The Parties shall exchange information on their respective law concerning data protection for the purpose of facilitating the operation and application of paragraph 2.
Article 33 – Advance rulings relating to origin
1. Each Party shall, through its customs authority, provide for the expeditious issuance of written advance rulings in accordance with its law, prior to the importation of a product into its territory, concerning whether a product qualifies as an originating product under this Protocol.
2. Each Party shall adopt or maintain procedures for the issuance of advance rulings, including a detailed description of the information reasonably required to process an application for a ruling.
3. Each Party shall provide that its customs authority:
- may, at any time during the course of an evaluation of an application for an advance ruling, request supplemental information from the person requesting the ruling;
- issue the ruling within 120 days from the date on which it has obtained all necessary information from the person requesting the advance ruling; and
- provide, to the person requesting the advance ruling, a full explanation of the reasons for the ruling.
4. When an application for an advance ruling involves an issue that is the subject of:
- a verification of origin;
- a review by, or appeal to, a customs authority; or
- a judicial or quasi-judicial review in the customs authority's territory;
the customs authority, in accordance with its laws, may decline or postpone the issuance of the ruling.
5. Subject to paragraph 7, each Party shall apply an advance ruling to importations into its territory of the product for which the ruling was requested on the date of its issuance or at a later date if specified in the ruling.
6. Each Party shall provide, to any person requesting an advance ruling, the same treatment as it provided to any other person to whom it issued an advance ruling, provided that the facts and circumstances are identical in all material respects.
7. The Party issuing an advance ruling may modify or revoke an advance ruling:
- if the ruling is based on an error of fact;
- if there is a change in the material facts or circumstances on which the ruling is based;
- to conform with an amendment of Chapter Two (National Treatment and Market Access for Goods), or this Protocol; or
- to conform with a judicial decision or a change in its law.
8. Each Party shall provide that a modification or revocation of an advance ruling is effective on the date on which the modification or revocation is issued, or on a later date if specified in the ruling, and shall not be applied to importations of a product that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its terms and conditions.
9. Notwithstanding paragraph 8, the Party issuing the advance ruling may, in conformity with its law, postpone the effective date of a modification or revocation for no more than six months.
10. Subject to paragraph 7, each Party shall provide that an advance ruling remains in effect and is honoured.
Article 34 – Committee
The Joint Customs Cooperation Committee ("JCCC"), granted authority to act under the auspices of the CETA Joint Committee as a specialised committee pursuant to Article 26.2.1 (Specialised Committees) may review this Protocol and recommend amendments to its provisions to the CETA Joint Committee. The JCCC shall endeavour to decide upon:
- the uniform administration of the rules of origin, including tariff classification and valuation matters relating to this Protocol;
- technical, interpretative, or administrative matters relating to this Protocol; or
- the priorities in relation to origin verifications and other matters arising from origin verifications.
Annex 1 – Tolerance for textile and apparel products
1. For the purpose of this Annex, the following definitions apply:
natural fibres means fibres other than artificial or synthetic fibres that have not been spun. Natural fibres include waste, and, unless otherwise specified, include fibres which have been carded, combed or otherwise processed, but not spun. Natural fibres include horsehair of heading 05.11, silk of heading 50.02 through 50.03, wool-fibres and fine or coarse animal hair of heading 51.01 through 51.05, cotton fibres of heading 52.01 through 52.03, and other vegetable fibres of heading 53.01 through 53.05;
textile pulp, chemical materials, and paper-making materials means materials, not classified in Chapter 50 through 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns; and
man-made staple fibres means synthetic or artificial filament tow, staple fibres or waste, of heading 55.01 through 55.07.
2. For greater certainty, non-originating materials of Chapter 1 through 49 or 64 through 97, including materials that contain textiles, may be disregarded for the purpose of determining whether all the non-originating materials used in the production of a product of Chapter 50 through 63 satisfies the applicable rule of origin set out in Annex 5.
3. Subject to paragraph 7, if the non-originating materials used in the production of a product of Chapter 50 through 63 do not fulfil the conditions set out in Annex 5, the product is nonetheless an originating product provided that:
- the product is produced using two or more of the basic textile materials listed in Table 1;
- the net weight of non-originating basic textile materials listed in Table 1 does not exceed 10 per cent of the net weight of the product; and
- the product satisfies all other applicable requirements of this Protocol.
4. Subject to paragraph 7, in the case of a product of Chapter 50 through 63 produced using one or more basic textile materials listed in Table 1, and non-originating yarn made of polyurethane segmented with flexible segments of polyether, the product is nonetheless an originating product provided that:
- the weight of the non-originating yarn made of polyurethane segmented with flexible segments of polyether does not exceed 20 per cent of the weight of the product; and
- the product satisfies all other applicable requirements of this Protocol.
5. Subject to paragraph 7, in the case of a product of Chapter 50 through 63 produced using one or more basic textile materials listed in Table 1 and non-originating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film, the product is nonetheless an originating product provided that:
- the weight of the non-originating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film does not exceed 30 per cent of the weight of the product; and
- the product satisfies all other applicable requirements of this Protocol.
6. Subject to paragraph 7, if the non-originating materials used in the production of a product of Chapter 61 through 63 do not fulfil the conditions set out in Annex 5, the product is nonetheless an originating product provided that:
- the non-originating materials are classified in a heading other than that of the product;
- the value of the non-originating materials does not exceed 8 per cent of the transaction value or ex-works price of the product; and
- the product satisfies all other applicable requirements of this Protocol.
This paragraph does not apply to non-originating materials used in the production of linings or interlinings of a product of Chapter 61 through 63.
7. The tolerance provided for in paragraphs 2 through 6 does not apply to non-originating materials used in the production of a product if those materials are subject to a rule of origin that includes a percentage for their maximum value or weight.
Table 1 – Basic textile materials
3. coarse animal hair
4. fine animal hair
7. paper-making materials and paper
10. jute and other textile bast fibres
11. sisal and other textile fibres of the genus Agave
12. coconut, abaca, ramie, and other vegetable textile fibres
13. synthetic man-made filaments
14. artificial man-made filaments
15. current-conducting filaments
16. synthetic man-made staple fibres of polypropylene
17. synthetic man-made staple fibres of polyester
18. synthetic man-made staple fibres of polyamide
19. synthetic man-made staple fibres of polyacrylonitrile
20. synthetic man-made staple fibres of polyimide
21. synthetic man-made staple fibres of polytetrafluoroethylene
22. synthetic man-made staple fibres of poly(phenylene sulphide)
23. synthetic man-made staple fibres of poly(vinyl chloride)
24. other synthetic man-made staple fibres
25. artificial man-made staple fibres of viscose
26. other artificial man-made staple fibres
27. yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped
28. yarn made of polyurethane segmented with flexible segments of polyester, whether or not gimped
29. a material of heading 56.05 (metallised yarn) incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film
30. any other material of heading 56.05
Annex 2 – Text of the origin Declaration
The origin declaration, the text of which is given below, must be completed in accordance with the footnotes. However, the footnotes do not have to be reproduced.
(Period: from___________ to __________(1))
The exporter of the products covered by this document (customs authorisation No . (2)) declares that, except where otherwise clearly indicated, these products are of . (3) preferential origin.
. ……………………………………………………………………. (5)
(Signature and printed name of the exporter)___________________
(1) When the origin declaration is completed for multiple shipments of identical originating products within the meaning of Article 19.5, indicate the period of time for which the origin declaration will apply. The period of time must not exceed 12 months. All importations of the product must occur within the period indicated. Where a period of time is not applicable, the field can be left blank.
(2) For EU exporters: When the origin declaration is completed by an approved or registered exporter the exporter's customs authorisation or registration number must be included. A customs authorisation number is required only if the exporter is an approved exporter. When the origin declaration is not completed by an approved or registered exporter, the words in brackets must be omitted or the space left blank.
For Canadian exporters: The exporter's Business Number assigned by the Government of Canada must be included. Where the exporter has not been assigned a business number, the field may be left blank.
(3) "Canada/EU" means products qualifying as originating under the rules of origin of the Canada-European Union Comprehensive Economic and Trade Agreement. When the origin declaration relates, in whole or in part, to products originating in Ceuta and Melilla, the exporter must clearly indicate the symbol "CM".
(4) These indications may be omitted if the information is contained on the document itself.
(5) Article 19.3 provides an exception to the requirement of the exporter's signature. Where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory.Bulgarian version
(Период: от _______до_________(1))
Износителят на продуктите, обхванати от този документ (митническо разрешение № … (2)), декларира, че освен когато е отбелязано друго, тези продукти са с/със … преференциален произход (3).
Spanish version
(Período comprendido entre el _______y el_________(1))
El exportador de los productos incluidos en el presente documento (autorización aduanera nº …(2)) declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial. …(3).
Czech version
(Období: od _______do_________(1))
Vývozce výrobků uvedených v tomto dokumentu (číslo povolení …(2)) prohlašuje, že kromě zřetelně označených, mají tyto výrobky preferenční původ v …(3)..
Danish version
(Periode: fra _______til_________(1))
Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr. . (2)), erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i . (3).
German version
(Zeitraum: von _______ bis _________(1))
Der Ausführer (ermächtigter Ausführer; Bewilligungs-Nr. . (2)) der Waren, auf die sich dieses Handelspapier bezieht, erklärt, dass diese Waren, soweit nicht anderes angegeben, präferenzbegünstigte . (3) Ursprungswaren sind.
Estonian version
(Ajavahemik: alates _______ kuni _________(1))
Käesoleva dokumendiga hõlmatud toodete eksportija (tolli luba nr. . (2)) deklareerib, et need tooted on . (3) sooduspäritoluga, välja arvatud juhul, kui on selgelt näidatud teisiti.
Greek version
(Περίοδος: από _______έως_________(1))
Ο εξαγωγέας των προϊόντων που καλύπτονται από το παρόν έγγραφο (άδεια τελωνείου υπ' αριθ. . (2)) δηλώνει ότι, εκτός εάν δηλώνεται σαφώς άλλως, τα προϊόντα αυτά είναι προτιμησιακής καταγωγής . (3).
English version
(Period: from _______to_________(1))
The exporter of the products covered by this document (customs authorisation No…(2)) declares that, except where otherwise clearly indicated, these products are of …(3) preferential origin.
French version
(Période: du _______au_________(1))
L'exportateur des produits couverts par le présent document (autorisation douanière n° . (2)) déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle . (3)).
Croatian version
(Razdoblje: od _______do_________(1))
Izvoznik proizvoda obuhvaćenih ovom ispravom (carinsko ovlaštenje br. . (2)) izjavljuje da su, osim ako je drugačije izričito navedeno, ovi proizvodi . (3) preferencijalnog podrijetla.
Italian version
(Periodo: dal _______al_________(1))
L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. . (2)) dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale . (3).
Latvian version
(Laikposms: no _______līdz_________(1))
To produktu eksportētājs, kuri ietverti šajā dokumentā (muitas atļauja Nr. …(2)) deklarē, ka, izņemot tur, kur ir citādi skaidri noteikts, šiem produktiem ir preferenciāla izcelsme…(3).
Lithuanian version
(Laikotarpis: nuo _______iki_________(1))
Šiame dokumente išvardintų prekių eksportuotojas (muitinės liudijimo Nr. …(2)) deklaruoja, kad, jeigu kitaip nenurodyta, tai yra …(3) preferencinės kilmės prekės..
Hungarian version
A jelen okmányban szereplő áruk exportőre (vámfelhatalmazási szám: …(2)) kijelentem, hogy eltérő egyértelmű jelzés hiányában az áruk preferenciális …(3) származásúak.
Maltese version
(Perjodu: minn _______sa _________(1))
L-esportatur tal-prodotti koperti b'dan id-dokument (awtorizzazzjoni tad-dwana nru. …(2)) jiddikjara li, ħlief fejn indikat b'mod ċar li mhux hekk, dawn il-prodotti huma ta' oriġini preferenzjali …(3).
Dutch version
(Periode: van _______ tot en met _________(1))
De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. . (2)), verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële oorsprong zijn uit . (3).
Polish version
(Okres: od _______do_________(1))
Eksporter produktów objętych tym dokumentem (upoważnienie władz celnych nr …(2)) deklaruje, że z wyjątkiem gdzie jest to wyraźnie określone, produkty te mają …(3) preferencyjne pochodzenie.
Portuguese version
(Período: de _______a_________(1))
O abaixo assinado, exportador dos produtos cobertos pelo presente documento (autorização aduaneira n.º . (2)), declara que, salvo expressamente indicado em contrário, estes produtos são de origem preferencial . (3).
Romanian version
(Perioada: de la _______până la_________(1))
Exportatorul produselor care fac obiectul prezentului document (autorizația vamală nr. …(2)) declară că, exceptând cazul în care în mod expres este indicat altfel, aceste produse sunt de origine preferențială …(3).
Slovenian version
(Obdobje: od _______do_________(1))
Izvoznik blaga, zajetega s tem dokumentom (pooblastilo carinskih organov št …(2)), izjavlja, da, razen če ni drugače jasno navedeno, ima to blago preferencialno …(3) poreklo.
Slovak version
(Obdobie: od _______do_________(1))
Vývozca výrobkov uvedených v tomto dokumente (číslo colného povolenia …(2)) vyhlasuje, že pokiaľ nie je jasne uvedené inak, majú tieto výrobky preferenčný pôvod v …(3).
Finnish version
( ______ ja ________välinen aika(1))
Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupa n:o . (2)) ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja . alkuperätuotteita (3).
Swedish version
(Period: från _______till_________(1))
Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr . (2)) försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande ursprung i . (3).
Annex 3 – Supplier's statement for non-originating materials used in the production of non-originating products
I, the undersigned, supplier of the products covered by the annexed document, declare that:
- The following materials which do not originate in the European Union/in Canada(1) have been used in the European Union/in Canada to produce the following supplied non-originating products.
- Any other materials used in the European Union/in Canada to produce these products originate there.
Description of non-originating product(s) supplied
HS tariff classification of non-originating product(s) supplied
Value of non-originating product(s) supplied(2)
Description of non-originating material(s) used
HS tariff classification of non-originating material(s) used
Value of non-originating materials used(2)
I undertake to make available any further supporting documents required.
(1) Strikethrough the Party not applicable, as the case may be.
(2) For each non-originating product supplied and non-originating material used, specify the value per unit of the products and materials described in columns 3 and 6, respectively.Annex 4 – Matters applicable to Ceuta and Melilla
1. For the purpose of this Protocol, in the case of the European Union, the term "Party" does not include Ceuta and Melilla.
2. Products originating in Canada, when imported into Ceuta and Melilla, shall in all respects be subject to the same customs regime, including preferential tariff treatment, as that which is applied to products originating in the customs territory of the European Union under Protocol 2 of the Act of Accession of the Kingdom of Spain and the Portuguese Republic to the European Communities. Canada shall apply to imports of products covered by this Agreement and originating in Ceuta and Melilla the same customs regime, including preferential tariff treatment, as that which is applied to products imported from and originating in the European Union.
3. The rules of origin applicable to Canada under this Protocol shall apply in determining the origin of products exported from Canada to Ceuta and Melilla. The rules of origin applicable to the European Union under this Protocol shall apply in determining the origin of products exported from Ceuta and Melilla to Canada.
4. The provisions of this Protocol concerning the issuance, use and subsequent verification of origin shall apply to products exported from Canada to Ceuta and Melilla and to products exported from Ceuta and Melilla to Canada.
5. The provisions on cumulation of origin of this Protocol shall apply to the import and export of products between the European Union, Canada and Ceuta and Melilla.
6. For the purposes mentioned in paragraphs 2, 3, 4 and 5, Ceuta and Melilla shall be regarded as a single territory.
7. The Spanish customs authorities shall be responsible for the application of this Annex in Ceuta and Melilla.
Annex 5 – Product-specific rules of origin
Introductory Notes to Annex 5
1. This Annex sets out the conditions required for a product to be considered originating within the meaning of Article 5 (Sufficient Production).
2. The following definitions apply:
chapter means a chapter of the Harmonized System;
heading means any four-digit number, or the first four digits of any number, used in the Harmonized System;
section means a section of the Harmonized System;
subheading means any six-digit number, or the first six digits of any number, used in the Harmonized System; and
tariff provision means a chapter, heading, or subheading of the Harmonized System.
3. The product-specific rule of origin, or set of rules of origin, that applies to a product classified in a particular heading, subheading, or group of headings or subheadings is set out immediately adjacent to that heading, subheading, or group of headings or subheadings.
4. Unless otherwise specified, a requirement of a change in tariff classification or any other condition set out in a product-specific rule of origin applies only to non-originating material.
5. Section, chapter, heading, or subheading notes, where applicable, are found at the beginning of each new section, chapter, heading, or subheading. These notes must be read in conjunction with the product-specific rules of origin for the applicable section, chapter, heading, or subheading and may impose further conditions on, or provide an alternative to, the product-specific rules of origin.
6. Unless otherwise specified, reference to weight in a product-specific rule of origin means the net weight, which is the weight of a material or a product not including the weight of packaging as set out in the definitions of "net weight of non-originating material" and "net weight of the product" in Article 1 (Definitions) of this Protocol.
7. A reference to non-originating sugar in a product-specific rule of origin means the non-originating material referred to in Article 16 (Sugar) of this Protocol.
8. If a product-specific rule of origin requires:
- a change from any other chapter, heading, or subheading, or a change to product xFootnote 2 from any other chapter, heading, or subheading, only non-originating material classified in a chapter, heading, or subheading other than that of the product may be used in the production of the product;
- a change from within a heading or subheading, or from within any one of these headings or subheadings, non-originating material classified within the heading or subheading may be used in the production of the product, as well as non-originating material classified in a chapter, heading, or subheading other than that of the product;
- a change from any heading or subheading outside a group, only non-originating material classified outside the group of headings or subheadings may be used in the production of the product;
- that a product is wholly obtained, the product must be wholly obtained within the meaning of Article 4 (Wholly Obtained Products). If a shipment consists of a number of identical products classified under tariff provision x, each product shall be considered separately;
- production in which all the material of tariff provision x used is wholly obtained, all of the material of tariff provision x used in production of the product must be wholly obtained within the meaning of Article 4 (Wholly Obtained Products);
- a change from tariff provision x, whether or not there is also a change from any other chapter, heading or subheading, the value of any non-originating material that satisfies the change in tariff classification specified in the phrase commencing with the words "whether or not" is not considered when calculating the value of non-originating materials. If two or more product-specific rules of origin are applicable to a heading, subheading, or group of headings or subheadings, the change in tariff classification specified in this phrase reflects the change specified in the first rule of origin;
- that the value of non-originating materials of tariff provision x does not exceed x per cent of the transaction value or ex-works price of the product, only the value of the non-originating material specified in this rule of origin is considered when calculating the value of non-originating materials. The percentage for the maximum value of non-originating materials as set out in this rule of origin may not be exceeded through the use of Article 6 (Tolerance);
- that the value of non-originating materials classified in the same tariff provision as the final product does not exceed x per cent of the transaction value or ex-works price of the product, non-originating material classified in a tariff provision other than that of the product may be used in the production of the product. Only the value of the non-originating materials classified in the same tariff provision as the final product is considered when calculating the value of non-originating materials. The percentage for the maximum value of non-originating materials as set out in this rule of origin may not be exceeded through the use of Article 6 (Tolerance);
- that the value of all non-originating materials does not exceed x per cent of the transaction value or ex-works price of the product, the value of all non-originating materials is considered when calculating the value of non-originating materials. The percentage for the maximum value of non-originating materials as set out in this rule of origin may not be exceeded through the use of Article 6 (Tolerance); and
- that the net weight of non-originating material of tariff provision x used in production does not exceed x per cent of the net weight of the product, the specified non-originating materials may be used in the production of the product, provided that it does not exceed the specified percentage of the net weight of the product in accordance with the definition of "net weight of the product" in Article 1. The percentage for the maximum weight of non-originating material as set out in this rule of origin may not be exceeded through the use of Article 6 (Tolerance).
9. The product-specific rule of origin represents the minimum amount of production required on non-originating material for the resulting product to achieve originating status. A greater amount of production than that required by the product-specific rule of origin for that product also confers originating status.
10. If a product-specific rule of origin provides that a specified non-originating material may not be used, or that the value or weight of a specified non-originating material cannot exceed a specific threshold, these conditions do not apply to non-originating material classified elsewhere in the Harmonized System.
11. In accordance with Article 5 (Sufficient Production), when a material obtains originating status in the territory of a Party and this material is further used in the production of a product for which origin is being determined, no account will be taken of any non-originating material used in the production of that material. This applies whether or not the material has acquired originating status inside the same factory where the product is produced.
12. The product-specific rules of origin set out in this Annex also apply to used products.
Harmonized System classification
Product specific rule for sufficient production pursuant to Article 5
Section I
Live Animals; Animal Products
Chapter 1
