CETA – Origin Verification by CBSA

The CSCB has once again asked CBSA about the requirement for an exporter in the EU to be registered in the REX program, this time in the event of an audit. Although CBSA maintains that they do not require exporters in the EU to register in the REX program, they have provided the following responses to additional questions on this subject.

CSCB

1. Can EU authorities determine that an exporter’s shipments to Canada do not qualify for the benefits of CETA, based solely on the fact that the exporter never registered for the REX program?

CBSA

1. Yes, the EU authorities administration of the REX program falls within their jurisdiction. Therefore, it is conceivable that the EU might consider the origin declaration of an exporter that does not have an REX number, and who is legally required to have obtained an REX number, to be invalid and consider the goods covered by that declaration as not entitled to the CETA preference.

CSCB

2. If so, can CBSA still accept the CETA tariff treatment for the importation into Canada for an unregistered EU exporter, even if EU customs determines that the goods don’t qualify because of the REX number missing on the origin declaration?

CBSA

2. The CBSA will accept claims for CETA preferential tariff treatment based on an origin declaration that contains either an REX number and/or a signature. It is possible, however, where a good has been selected for an origin verification, and it is discovered by the EU member state that the REX number is invalid or incorrect, or that the exporter is not in compliance with the REX program, that it could impact the conduct of the origin verification by the customs administration of the EU member state, and therefore, affect the originating status of the good.

12 December 2017

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