G/RO/82  
 
10 January 2017  
(17-0154) Page: 1/2 
Committee on Rules of Origin  Original: English  
 
 PARAGRAPH 4.2 OF THE  MINISTERIAL D ECISION OF 19 DECEMBE R 2015 ON 
PREFERENTIAL RULES O F ORIGIN FOR LEAST D EVELOPED COUNTRIES  
Communication by Canada  
The following communication, dated 22 December  2016, is being circulated at the request of the 
delegation o f Canada . 
 
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Canada 's rules of origin for least developed countries can be found at:  http://laws -
lois.justice.gc.ca/PDF/SOR -2013-165.pdf . 
In addition, the Canada Border Servi ces Agency publishes an explanatory memorandum at:   
http://cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -4-4-eng.pdf . 
The list of countries that are eligible for preferential treatme nt under Canada 's Least Developed 
Country Tariff (LDCT) is available at:  http://www.cbsa -asfc.gc.ca/trade -commerce/tariff -
tarif/2017/01 -99/countries -pays-eng.pdf .  
Elements of the Nairobi Decision  
Ad valorem  Criterion  
 Canada uses a method of calculation based on the value of non -originating materials.  
 For apparel and textile products, Canada allows the use of up to 75% non -originating 
materials.   
 For oth er goods, Canada allows the use of up to 80% non -originating materials (i.e., 60% of 
the value may originate anywhere, 20% must originate from a current or former GSP 
beneficiary, the remaining 20% must originate in an LDC).  
Change in Tariff Classification  Criterion  
 Canada has no change of tariff classification rules of origin in its regime.  
Manufacturing or Processing Operation Criterion  
 Canada only applies manufacturing or processing operation rules of origin for apparel and 
made -up textile products.   
 LDCs may use fabric produced in current or former GSP beneficiaries in the production of 
apparel, provided they add at least 25% value in the LDC.   
 LDCs may also use fabric produced in an LDC or Canada in the production of apparel, with 
no value requirement .   
 For made -up textile products, LDCs must use fabric produced in an LDC or Canada, but 
there is no value requirement.  Note that in all three cases, the yarn must also be produced 
in an LDC, Canada or a current or former GSP beneficiary country.  
 These r ules of origin reflect the sourcing patterns and manufacturing capabilities of LDCs.   G/RO/82  
 
- 2 - 
 
  Cumulation  
 Canada 's rules of origin allow cumulation with Canada, other LDCs, and current as well as 
former GSP beneficiaries.   
 On 1 January 2015, Canada modernized it s GSP regime by graduating 72 higher -income or 
trade -competitive countries.  In order that the GSP modernization would not affect imports 
from LDCs, Canada made consequential changes to its rules of origin for LDCs so that LDCs 
could continue sourcing from  former GSP beneficiaries when producing goods eligible for 
duty-free treatment when imported into Canada.   
Documentary Requirements  
 Canada does not require a certificate of non -manipulation.  
 Canada minimizes documentation requirements by allowing for exp orter self -certification 
and requiring a certificate of origin only for textile and apparel goods (other goods require 
only an Exporter 's Statement of Origin).  
Canada's most recent notifications to the WTO regarding the LDCT  
 17 November 2014 – Canada notif ied GSP/LDC changes to the CTD 
(WT/COMTD/N/15/Add.3).  Changes included the extension of the programs by legislation 
until 2024, changes to the lists of beneficiary countries and consequential changes to the 
LDC rules of origin (so that GSP country coverag e changes would not affect LDCs ' market 
access to Canada).  Notification contained a short explanation and links to the legislation 
and regulations.  
 14 July 2011 – Canada notified changes to the LDC regime as part of a larger notification to 
the CRO (G/RO/ N/71/Add.1).  The LDC changes included updates to rules of origin (tariff 
items updated to reflect the most current Customs Tariff) and special measures introduced 
for Haiti after the 2010 earthquake prevented goods from being shipped directly from Haiti 
to Canada, as required under the rules of origin.  Notification contained a short explanation 
and links to the regulations.  
 10 May 2004 – Canada notified GSP/LDCT changes to the CTD (WT/COMTD/N/15/Add.2).  
Changes included the extension of the programs unti l 2014 and modification of the lists of 
beneficiaries.  
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