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- Direct transport
- Duty drawback
- Vessels conditions
- Product specific rules of origin
- Proofs of Origin
In CETA, generally the tolerance is fixed at 10% of the transaction value or ex-works price of the product for products other than those with value added rule. This means that a maximum percentage of the product’s total value deriving from sources other than the EU or Canada should not exceed 10%. Specific tolerance provisions apply for textile and apparel products that are set out in Annex 1 to the Protocol on rules of origin and origin procedures. Furthermore, the criteria of Annex 5, sets out the conditions that need to be respected for a product to be considered originating in Canada for example the maximum value or weight of non-originating materials.
See also: General rule of Tolerance or De Minimis
CETA provides for full bilateral cumulation. This cumulation covers originating materials as well as the production carried out on materials which did not obtain originating status. For the purpose of CETA, production means any kind of working or processing, including such operations as growing, mining, raising, harvesting, fishing, trapping, hunting, manufacturing, assembling or disassembling. In addition, under conditions foreseen in the Agreement cumulation with the US and other third countries who both Canada and the EU have agreements with may be possible in the future.
See also: General rule of Cumulation
A product that is considered originating in Canada or the EU according to the terms of the Agreement can keep its originating status even if transported via a third country if the product remains under customs control and it does not undergo further operations other than unloading, reloading, splitting of consignments or any other operation necessary to preserve it in good condition. Evidence of respecting these terms (e.g. a copy of the customs control documents) will have to be brought to the EU customs authorities of the upon request.
See also: General rule of Direct transport or Non-Manipulation
Duty drawback is allowed only in the first 3 years after the entry into force of this Agreement.
The following conditions apply to the vessel or factory ship in order to render the products caught or further processed on board originating (wholly obtained) in the EU or Canada:
(a) The vessel or factory ship must be:
(i) registered in a Member State of the European Union or in Canada; or
(ii) listed in Canada, if such vessel:
(A) 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
(B) fulfills the conditions of sub-subparagraphs (b)(i) or (b)(ii) below;
(iii) entitled to fly the flag of a Member State of the European Union or of Canada and must sail under that flag; and
(b) with respect to the European Union, the vessel or factory ship must be:
(i) at least 50 per cent owned by nationals of a Member State of the European Union; or
(ii) 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.
(c) with respect to Canada, the vessel or factory ship must take the fish, shellfish, or other marine life under the authority of a Canadian fishing licence. Canadian fishing licences include Canadian commercial fishing licences and Canadian aboriginal fishing licences issued to aboriginal organisations. The holder of the Canadian fishing licence must be:
(i) a Canadian national;
(ii) an enterprise that is no more than 49 per cent foreign owned and has a commercial presence in Canada;
(iii) 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
(iv) 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.
Annex 5, sets out the conditions that must be met for a product to be considered originating in the EU or Canada. . Furthermore, Annex 5-A provides for origin quotas and alternative product specific rules for certain products in the following categories: agricultural products, fish and seafood, textiles and apparel, vehicles.
In addition, CETA provides for specific provisions for sugar under Article 16 of the Protocol on rules of origin and origin procedures. For example product specific rule may require that the net weight of non-originating sugar used in production does not exceed a specified threshold.
To qualify for preferential duty rates at the EU border, products originating in Canada must be accompanied by an origin declaration completed by the exporter.
When completing an origin declaration, you should be prepared to submit documents proving the originating status of your products, and fulfil the other requirements of the Protocol on Rules of Origin.
To make an origin declaration, you should type, stamp or print the following declaration (in the appropriate language) on the invoice, delivery note or other commercial document:
"The exporter of the products covered by this document (customs authorisation No ... ) declares that, except where otherwise clearly indicated, these products are of ... preferential origin".
You can find the different language versions together with explanatory notes in Annex 2 of the Protocol on rules of origin and origin procedures.
The origin declaration generally does not need signing by hand.
Proof of origin remains valid for 12 months
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. (Art. 20, Protocol on rules of origin and origin procedures)