GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
average method means the method by which the origin of fungible goods withdrawn from finished goods inventory is based on the ratio, calculated under section 14, of originating goods and non-originating goods in finished goods inventory. ( méthode de la moyenne )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
FIFO method means the method by which the origin of fungible goods first received in finished goods inventory is considered to be the origin of fungible goods first withdrawn from finished goods inventory. ( méthode PEPS )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
finished goods inventory means an inventory from which fungible goods are sold or otherwise transferred to another person. ( stock de produits finis )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
LIFO method means the method by which the origin of fungible goods last received in finished goods inventory is considered to be the origin of fungible goods first withdrawn from finished goods inventory. ( méthode DEPS )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
opening inventory means the finished goods inventory at the time an inventory management method is chosen. ( stock d’ouverture )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
origin identifier means any mark that identifies fungible goods as originating goods or non-originating goods. ( identificateur d’origine )
CUSMA Rules of Origin Regulations — 11
11 The following inventory management methods may be used for determining whether fungible goods referred to in paragraph 8 (18)(b) of these Regulations are originating goods: (a) specific identification method; (b) FIFO method; (c) LIFO method; and (d) average method.
CUSMA Rules of Origin Regulations — 12
12 An exporter of a good, or a person from whom the exporter acquired the fungible good, may choose only one of the inventory management methods referred to in section 11 and, if the average method is chosen, only one averaging period in each fiscal year of that exporter or person in respect of each finished goods inventory of the exporter or person.
CUSMA Rules of Origin Regulations — 13
13 (1) Except as provided under subsection (2), if the exporter or person referred to in section 12 chooses the specific identification method, the exporter or person must physically segregate, in finished goods inventory, originating goods that are fungible goods from non-originating goods that are fungible goods. (2) If originating goods or non-originating goods that are fungible goods are marked with an origin identifier, the exporter or person need not physically segregate those goods under subsection (1) if the origin identifier is visible on the fungible goods.
CUSMA Rules of Origin Regulations — 14
14 (1) If the exporter or person referred to in section 12 chooses the average method, the origin of each shipment of fungible goods withdrawn from finished goods inventory during a one- or three-month period, at the choice of the exporter or person, is determined on the basis of the ratio of originating goods and non-originating goods in finished goods inventory for the preceding one- or three-month period that is calculated by dividing (a) the sum of (i) the total units of originating goods or non-originating goods that are fungible goods and that were in finished goods inventory at the beginning of the preceding one- or three-month period, and (ii) the total units of originating goods or non-originating goods that are fungible goods and that were received in finished goods inventory during that preceding one- or three-month period, by (b) the sum of (i) the total units of originating goods and non-originating goods that are fungible goods and that were in finished goods inventory at the beginning of the preceding one- or three-month period, and (ii) the total units of originating goods and non-originating goods that are fungible goods and that were received in finished goods inventory during that preceding one- or three-month period. (2) The ratio calculated with respect to a preceding one- or three-month period under subsection (1) is applied to the fungible goods remaining in finished goods inventory at the end of the preceding one- or three-month period.
CUSMA Rules of Origin Regulations — 15
15 (1) Except as otherwise provided under subsections (2) and (3), if the exporter or person referred to in section 12 has fungible goods in opening inventory, the origin of those fungible goods is determined by (a) identifying, on the books of the exporter or person, the latest receipts of fungible goods that add up to the amount of fungible goods in opening inventory; (b) determining the origin of the fungible goods that make up those receipts; and (c) considering the origin of those fungible goods to be the origin of the fungible goods in opening inventory. (2) If the exporter or person chooses the specific identification method and has, in opening inventory, originating goods or non-originating goods that are fungible goods and that are marked with an origin identifier, the origin of those fungible goods is determined on the basis of the origin identifier. (3) The exporter or person may consider all fungible goods in opening inventory to be non-originating goods.
CUSMA Rules of Origin Regulations — (a)
The following examples are based on the figures set out in the table below and on the following assumptions: (a) originating Material A and non-originating Material A that are fungible materials are used in the production of Good A; (b) one unit of Material A is used to produce one unit of Good A; (c) Material A is only used in the production of Good A; (d) all other materials used in the production of Good A are originating materials; and (e) the producer of Good A exports all shipments of Good A to the territory of a CUSMA country. Materials Inventory Sales (Receipts of Material A) (Shipments of Good A) Date (m/d/y) Quantity (units) Unit Cost * ($) Total Value ($) Quantity (units) 12/18/20 100 (O 1 ) 1.00 100 12/27/20 100 (N 2 ) 1.10 110 01/01/21 200 (OI 3 ) 01/01/21 1,000 (O) 1.00 1,000 01/05/21 1,000 (N) 1.10 1,100 01/10/21 100 01/10/21 1,000 (O) 1.05 1,050 01/15/21 700 01/16/21 2,000 (N) 1.10 2,200 01/20/21 1,000 01/23/21 900 * Unit cost is determined in accordance with section 8 of these Regulations. 1 “O” denotes originating materials. 2 “N” denotes non-originating materials. 3 “OI” denotes opening inventory.
CUSMA Rules of Origin Regulations — (a)
(a) originating Material A and non-originating Material A that are fungible materials are used in the production of Good A;
CUSMA Rules of Origin Regulations — (b)
(b) one unit of Material A is used to produce one unit of Good A;
CUSMA Rules of Origin Regulations — (c)
(c) Material A is only used in the production of Good A;
CUSMA Rules of Origin Regulations — (d)
(d) all other materials used in the production of Good A are originating materials; and
CUSMA Rules of Origin Regulations — (e)
(e) the producer of Good A exports all shipments of Good A to the territory of a CUSMA country.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 1: FIFO method Good A is subject to a regional value content requirement. Producer A is using the transaction value method to determine the regional value content of Good A. By applying the FIFO method, (1) the 100 units of originating Material A in opening inventory that were received in materials inventory on 12/18/20 are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $0; (2) the 100 units of non-originating Material A in opening inventory that were received in materials inventory on 12/27/20 and 600 units of the 1,000 units of originating Material A that were received in materials inventory on 01/01/21 are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $110 (100 units × $1.10); (3) the remaining 400 units of the 1,000 units of originating Material A that were received in materials inventory on 01/01/21 and 600 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 are considered to have been used in the production of the 1,000 units of Good A shipped on 01/20/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $660 (600 units × $1.10); and (4) the remaining 400 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 and 500 units of the 1,000 units of originating Material A that were received in materials inventory on 01/10/21 are considered to have been used in the production of the 900 units of Good A shipped on 01/23/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $440 (400 units × $1.10).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Good A is subject to a regional value content requirement. Producer A is using the transaction value method to determine the regional value content of Good A.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
By applying the FIFO method, (1) the 100 units of originating Material A in opening inventory that were received in materials inventory on 12/18/20 are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $0; (2) the 100 units of non-originating Material A in opening inventory that were received in materials inventory on 12/27/20 and 600 units of the 1,000 units of originating Material A that were received in materials inventory on 01/01/21 are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $110 (100 units × $1.10); (3) the remaining 400 units of the 1,000 units of originating Material A that were received in materials inventory on 01/01/21 and 600 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 are considered to have been used in the production of the 1,000 units of Good A shipped on 01/20/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $660 (600 units × $1.10); and (4) the remaining 400 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 and 500 units of the 1,000 units of originating Material A that were received in materials inventory on 01/10/21 are considered to have been used in the production of the 900 units of Good A shipped on 01/23/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $440 (400 units × $1.10).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(1) the 100 units of originating Material A in opening inventory that were received in materials inventory on 12/18/20 are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $0;
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(2) the 100 units of non-originating Material A in opening inventory that were received in materials inventory on 12/27/20 and 600 units of the 1,000 units of originating Material A that were received in materials inventory on 01/01/21 are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $110 (100 units × $1.10);
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(3) the remaining 400 units of the 1,000 units of originating Material A that were received in materials inventory on 01/01/21 and 600 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 are considered to have been used in the production of the 1,000 units of Good A shipped on 01/20/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $660 (600 units × $1.10); and
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(4) the remaining 400 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 and 500 units of the 1,000 units of originating Material A that were received in materials inventory on 01/10/21 are considered to have been used in the production of the 900 units of Good A shipped on 01/23/21; therefore, the value of non-originating materials used in the production of those goods is considered to be $440 (400 units × $1.10).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 2: LIFO method Good A is subject to a change in tariff classification requirement and the non-originating Material A used in the production of Good A does not undergo the applicable change in tariff classification. Therefore, if originating Material A is used in the production of Good A, Good A is an originating good and, if non-originating Material A is used in the production of Good A, Good A is a non-originating good. By applying the LIFO method, (1) 100 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21; (2) 700 units of the 1,000 units of originating Material A that were received in materials inventory on 01/10/21 are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21; (3) 1,000 units of the 2,000 units of non-originating Material A that were received in materials inventory on 01/16/21 are considered to have been used in the production of the 1,000 units of Good A shipped on 01/20/21; and (4) 900 units of the remaining 1,000 units of non-originating Material A that were received in materials inventory on 01/16/21 are considered to have been used in the production of the 900 units of Good A shipped on 01/23/21.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Good A is subject to a change in tariff classification requirement and the non-originating Material A used in the production of Good A does not undergo the applicable change in tariff classification. Therefore, if originating Material A is used in the production of Good A, Good A is an originating good and, if non-originating Material A is used in the production of Good A, Good A is a non-originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
By applying the LIFO method, (1) 100 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21; (2) 700 units of the 1,000 units of originating Material A that were received in materials inventory on 01/10/21 are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21; (3) 1,000 units of the 2,000 units of non-originating Material A that were received in materials inventory on 01/16/21 are considered to have been used in the production of the 1,000 units of Good A shipped on 01/20/21; and (4) 900 units of the remaining 1,000 units of non-originating Material A that were received in materials inventory on 01/16/21 are considered to have been used in the production of the 900 units of Good A shipped on 01/23/21.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(1) 100 units of the 1,000 units of non-originating Material A that were received in materials inventory on 01/05/21 are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21;
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(2) 700 units of the 1,000 units of originating Material A that were received in materials inventory on 01/10/21 are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21;
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(3) 1,000 units of the 2,000 units of non-originating Material A that were received in materials inventory on 01/16/21 are considered to have been used in the production of the 1,000 units of Good A shipped on 01/20/21; and
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(4) 900 units of the remaining 1,000 units of non-originating Material A that were received in materials inventory on 01/16/21 are considered to have been used in the production of the 900 units of Good A shipped on 01/23/21.
CUSMA Rules of Origin Regulations — *
 units of Material A in materials inventory was 36% (1,584 units ÷ 4,400 units) and the ratio of units of non-originating Material A to total units of Material A in materials inventory was 64% (2,816 units ÷ 4,400 units); based on those ratios, 360 units (1,000 units × 0.36) of originating Material A and 640 units (1,000 units × 0.64) of non-originating Material A are considered to have been used in the production of the 1,000 units of Good A shipped on 01/20/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $684.80 [1,000 units × $1.07 (average unit value) × 64%]; and those ratios are applied to the units of Material A remaining in materials inventory after the shipment: 1,224 units (3,400 units × 0.36) are considered to be originating materials and 2,176 units (3,400 units × 0.64) are considered to be non-originating materials; and (4) before the shipment of the 900 units of Good A on 01/23/21, the ratio of units of originating Material A to total units of Material A in materials inventory was 36% (1,224 units ÷ 3,400 units) and the ratio of units of non-originating Material A to total units of Material A in materials inventory was 64% (2,176 units ÷ 3,400 units); based on those ratios, 324 units (900 units × 0.36) of originating Material A and 576 units (900 units × 0.64) of non-originating Material A are considered to have been used in the production of the 900 units of Good A shipped on 01/23/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $616.32 [900 units × $1.07 (average unit value) × 64%]; those ratios are applied to the units of Material A remaining in materials inventory after the shipment: 900 units (2,500 units × 0.36) are considered to be originating materials and 1,600 units (2,500 units × 0.64) are considered to be non-originating materials.
CUSMA Rules of Origin Regulations — *
Good A is subject to an applicable regional value content requirement. Producer A is using the transaction value method to determine the regional value content of Good A. Producer A determines the average value of non-originating Material A and the ratio of originating Material A to total value of originating Material A and non-originating Material A in the following table. Material Inventory Sales (Receipts of Material A) (Non-Originating Material) (Shipments of Good A) Date (m/d/y) Quantity (units) Total Value ($) Unit Cost * ($) Quantity (units) Total Value ($) Ratio Quantity (units) Receipt 12/18/20 100 (O 1 ) 100 1.00 Receipt 12/27/20 100 (N 2 ) 110 1.10 100 110.00 NEW AVG INV VALUE 200 (OI 3 ) 210 1.05 100 105.00 0.50 Receipt 01/01/21 1,000 (O) 1,000 1.00 NEW AVG INV VALUE 1,200 1,210 1.01 100 101.00 0.08 Receipt 01/05/21 1,000 (N) 1,100 1.10 1,000 1,100.00 NEW AVG INV VALUE 2,200 2,310 1.05 1,100 1,155.00 0.50 Shipment 01/10/21 (100) (105) 1.05 (50) (52.50) 100 Receipt 01/10/21 1,000 (O) 1,050 1.05 NEW AVG INV VALUE 3,100 3,255 1.05 1,050 1,102.50 0.34 Shipment 01/15/21 (700) (735) 1.05 (238) (249.90) 700 Receipt 01/16/21 2,000 (N) 2,200 1.10 2,000 2,200.00 NEW AVG INV VALUE 4,400 4,720 1.07 2,812 3,008.84 0.64 Shipment 01/20/21 (1,000) (1,070) 1.07 (640) (684.80) 1,000 Shipment 01/23/21 (900) (963) 1.07 (576) (616.32) 900 NEW AVG INV VALUE 2,500 2,687 1.07 1,596 1,707.24 0.64 * Unit cost is determined in accordance with section 8 of these Regulations. 1 “O” denotes originating materials. 2 “N” denotes non-originating materials. 3 “OI” denotes opening inventory.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(1) before the shipment of the 100 units of Material A on 01/10/21, the ratio of units of originating Material A to total units of Material A in materials inventory was 0.50 (1,100 units ÷ 2,200 units) and the ratio of units of non-originating Material A to total units of Material A in materials inventory was 50% (1,100 units ÷ 2,200 units); based on those ratios, 50 units (100 units × 0.50) of originating Material A and 50 units (100 units × 0.50) of non-originating Material A are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $52.50 [100 units × $1.05 (average unit value) × 50%]; and the ratios are applied to the units of Material A remaining in materials inventory after the shipment: 1,050 units (2,100 units × 0.50) are considered to be originating materials and 1,050 units (2,100 units × 0.50) are considered to be non-originating materials;
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
based on those ratios, 50 units (100 units × 0.50) of originating Material A and 50 units (100 units × 0.50) of non-originating Material A are considered to have been used in the production of the 100 units of Good A shipped on 01/10/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $52.50 [100 units × $1.05 (average unit value) × 50%]; and
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
the ratios are applied to the units of Material A remaining in materials inventory after the shipment: 1,050 units (2,100 units × 0.50) are considered to be originating materials and 1,050 units (2,100 units × 0.50) are considered to be non-originating materials;
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
(2) before the shipment of the 700 units of Good A on 01/15/21, the ratio of units of originating Material A to total units of Material A in materials inventory was 66% (2,050 units ÷ 3,100 units) and the ratio of units of non-originating Material A to total units of Material A in materials inventory was 34% (1,050 units ÷ 3,100 units); based on those ratios, 462 units (700 units × 0.66) of originating Material A and 238 units (700 units × 0.34) of non-originating Material A are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $249.90 [700 units × $1.05 (average unit value) × 34%]; and the ratios are applied to the units of Material A remaining in materials inventory after the shipment: 1,584 units (2,400 units × 0.66) are considered to be originating materials and 816 units (2,400 units × 0.34) are considered to be non-originating materials;
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
based on those ratios, 462 units (700 units × 0.66) of originating Material A and 238 units (700 units × 0.34) of non-originating Material A are considered to have been used in the production of the 700 units of Good A shipped on 01/15/21; therefore, the value of non-originating Material A used in the production of those goods is considered to be $249.90 [700 units × $1.05 (average unit value) × 34%]; and