CUSMA Rules of Origin Regulations — 16
eginning on July 1, 2024 and ending on June 30, 2025, (iii) beginning on July 1, 2025 and ending on June 30, 2026, (iv) beginning on July 1, 2026 and ending on June 30, 2027, and (v) beginning on July 1, 2027 until the end of the producer’s fiscal year. Timely filing of choice to average (6) If a producer chooses to average its RVC calculations the producer must notify the customs administration of the CUSMA country to which passenger vehicles, light trucks, heavy trucks or other vehicles are to be exported by July 31, 2020 and subsequently at least 10 days before the first day of the producer’s fiscal year during which the vehicles will be exported or such shorter period as the customs administration may accept. No modification or rescission (7) The producer may not modify or rescind the category of passenger vehicles, light trucks, heavy trucks or other vehicle or the period that they have notified the customs authority they intend to use for their averaged RVC calculation. Net costs and VNM included — RVC (8) For purposes of sections 13 to 15, if a producer chooses to average its net cost calculation, the net costs incurred and the VNM used by the producer, with respect to (a) all passenger vehicles, light trucks or heavy trucks that fall within the category chosen by the producer and that are produced during the fiscal year, or partial fiscal year if the producer’s fiscal year begins after July 1, 2020, and (b) those passenger vehicles, light trucks or heavy trucks to be exported to the territory of one or more of the CUSMA countries that fall within the category chosen by the producer and that are produced during the fiscal year or, or partial fiscal year if the producer’s fiscal year begins after July 1, 2020 must be included in the calculation of the RVC under any of the categories set out in subsection (1). Averaging based on estimated costs (9) If the producer of a passenger vehicle, light truck, heavy truck or other vehicle has calculated the RVC of the motor vehicle on the basis of estimated costs, including standard costs, budgeted forecasts or other similar estimating procedures, before or during the producer’s fiscal year, the producer must conduct an analysis at the end of the producer’s fiscal year of the actual costs incurred over the period with respect to the production of the motor vehicle. If the motor vehicle does not satisfy the RVC requirement on the basis of the actual costs, the producer must immediately inform any person to whom the producer has provided a Certificate of Origin for the motor vehicle, or a written statement that the motor vehicle is an originating good, that the motor vehicle is a non-originating good. Averaging period (10) Subject to subsection (11), for the purpose of calculating the RVC for an automotive good listed in Tables A.1, B, C, D or E, produced in the same plant, a core part listed in Table A.2, or when treating the parts listed in column 1 of Table A.2 as a super-core, for use in a passenger vehicle or light truck, the calculation may be averaged (a) over the fiscal year of the motor vehicle producer to whom the good is sold; (b) over any quarter or month; (c) over the fiscal year of the producer of the automotive material; or (d) over any of the categories in paragraph (1)(a) to (d). Condition (11) The calculation may be averaged under subsection (10) provided that the good was produced during the fiscal year, quarter or month forming the basis for the calculation in which (a) the average in paragraph (10)(a) is calculated separately for those goods sold to one or more passenger vehicle, light truck or heavy truck producer; or (b) the average in paragraph (10)(a) or (b) is calculated separately for those goods that are exported to the territory of another CUSMA country. Example (12) The following example is an “example” as referred to in subsection 1(4): Subsection 16(4) The agreement enters into force on July 1, 2020. A producer’s fiscal year begins on January 1, 2021.