CETA: Q & A

Over the past few days and last week, the CSCB has consulted with both CBSA and Global Affairs Canada regarding the many questions received from members about CETA. We are happy to report that both CBSA and GAC have been terrific with their responses and we thank them for that. Here is a list of what we have so far:

Q1. Do the tolerance rules for textile and apparel products apply to goods of both Annex 5 and Annex 5-A?

A1. Yes. The CETA tolerance provisions set out in Annex 1 apply to textile and apparel products of Chapter 50 through 63 of the HS, regardless of whether the product-specific rule of origin being used is in Annex 5 or 5-A.

Q2. Do originating goods manufactured in one CETA country and shipped to Canada from another CETA country keep their originating status?

A2. Yes. Originating goods can be shipped from any CETA country, regardless of where they were produced.

Q3. Does a statement of origin on the EU exporter’s letterhead constitute a statement of origin, as per paragraph 2 of Article 18?

A3. Yes. As per paragraph 2 of Article 18 of the CETA Protocol on rules of origin and origin procedures, provided the EU company letterhead document describes the originating product in sufficient detail to enable its identification and contains the origin declaration, the CBSA would consider the requirements of this article to have been met.

Q4. What is CBSA’s policy regarding the following, in Article 19 - Obligations regarding exportations:

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.

Will CBSA change their policy regarding the use of electronic signatures, considering the above?

A4. Indeed paragraphs 3 and 7 of Article 19 allow the Parties to apply flexibility with respect to the completion of the origin declaration. As a result, Canada and the EU have confirmed that where exporters in Canada provide the Business Number or exporters in the EU provide the Registered Exporter (REX) number in field 2 of the origin declaration, then field 5 may be left blank.

Q5: With respect to CETA, if there is no requirement for the origin declaration to include the HS classification of the goods, how will CBSA conduct origin verifications when a tariff shift rule has been used?

A5. You are correct that there is no requirement to include the HS classification on the origin declaration. The CBSA will conduct the origin verification using the same procedures as it does when conducting verifications under its other FTAs, such as the EFTA. The origin verification process under the EFTA is similar to that of the CETA, (EFTA Article 24 of Annex C of the EFTA), whereby the country of export will verify the originating status of a good on behalf of, and upon request of the country of import.

In the case of origin verifications (i.e. post-importation), Canada and the EU have agreed to assist each other, through the customs authorities to perform origin verifications on each other's behalf. In other words, CETA requires the CBSA to conduct origin verifications of Canadian exporters on behalf of and upon the request of an EU Member State's customs authority. Reciprocally, the EU Member State's customs authority will conduct origin verifications of EU exporters, upon request by the CBSA.

Q6. Verification by CBSA of the origin of exported goods on behalf of the foreign customs authority will mean additional work for CBSA. Is the issue of staff resources being addressed?

A6. Thank you for your concern. Yes, the CBSA is aware of resourcing expectations regarding CETA.

14 September 2017

*Source: CSCB Daily Articles

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