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CSCB Daily Articles – CETA
CETA: Originating Status
The following question was sent to CBSA:
If EU originating goods are shipped to Canada from Italy, then are subsequently exported from Canada to France in the same condition, do the goods “originate” upon their entry into France? Or did the goods lose their originating status once they entered Canada?
CBSA: The goods would not lose their originating status on entering Canada as they have never entered a third country, defined in “Article 1.1 Definitions of general application” of “Chapter one: General definitions and initial provisions of the CETA” as follows:
“third country means a country or territory outside the geographic scope of application of this Agreement;”
CETA: REX Program
Several members have noticed that there is information related to the REX program that states there is a requirement for an exporter to be a REX participant if certifying the origin of goods that are valued at greater than 6 000 Euros.
CBSA has confirmed that the registered exporter (REX) program is an EU program that entitles exporters to make out a statement on origin once they are registered in a database by their competent authorities.
They have also added: Nevertheless, regardless of whether this requirement is in place in Europe, we can confirm that there is no requirement for an exporter from the EU to be registered under the REX program (or be subject to its 6000 Euro value limitation) in order to be entitled to the benefits of the CETA here in Canada.
CETA: Origin Declaration
Several members have asked if the CETA Origin Declaration can include only words such as “Canada”, “Norwegian”, or “EU” in field 3 of the declaration. CBSA has responded with the following:
The short answer is no.
The purpose of the origin declaration is to certify that the goods are of CETA preferential origin. Simply stating “EU preferential origin” is akin to a Canadian exporter stating “Canada preferential origin”, which would be meaningless as there is no indication that the relevant products meet the Canada-EU CETA rule of origin. Consequently, originating goods are not “EU preferential origin” (as this could mean that they meet the requirements of any FTA that the EU has), but rather “Canada/EU” (or “CM”) origin as they need to meet the particular rules of origin for the Canada-EU CETA.
The text of the declaration is very clear, the statement is either “Canada/EU” or “CM”, nothing else is acceptable. Please refer to footnote to field 3.
The CETA negotiators sought to make this requirement as simple as possible and it is important for exporters to understand that their declaration pertains to this particular trade agreement. The alternative would be the much more burdensome certificate of origin with the trade agreement printed on it. The CETA declaration, however, was an attempt by negotiators to make things easier for the trading community. As a result, two simple sentences are all that is being asked under CETA.