G/RO/LDC/N/CAN/2  
 
10 October  2017 
(17-5438) Page: 1/4 
Committee on Rules of Origin  Original: English  
 
NOTIFICATION OF PREF ERENTIAL RULES OF OR IGIN FOR  
LEAST DEVELOPED COUN TRIES  
CANADA  
The following communication, dated 4 October  2017, is being circulated at the reque st of the 
delegation of Canada.  
 
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Paragraph 4.3 of the 2015 Ministerial D ecision on preferential rules of origin for least developed 
countries (WT/L/917/Add.1) requires preference -granting Members  to notify preferential rules o f 
origin as per the established procedures1. In addition, as mandated by the Ministerial Decision, the  
Committee on Rules of Origin agreed, at its meeting of 2 March 2017, to a template  for such 
notifications (G/RO/84 ). 
 
Following such requirements, the following notification has been received from : Canada.  
 
A. BASIC INFORMATION  
 
1)  Notifying member  Canada  
2)  Date of entering into force of Rules 
of origin and any substantive  
modification thereof  13 January 1983  
Last modifications   
2017:   
- Regulations Amending the General Preferential Tariff and 
Least Developed Tariff Rules of Origin Regulations 
(SOR/2017 -127):  http://www.gazette.gc.ca/rp -
pr/p2/2017/2017 -07-12/html/sor -dors127 -eng.php   
2013:  
- General Preferential Tariff and Least Developed Country 
Tariff Rules of Origin Regulations (SOR/2013 -165):  
http://canadagazette.gc.ca/rp -pr/p2/2013/2013 -10-
09/html/sor -dors165 -eng.php  
3)  Date of expiration of Rules of 
origin if app licable  31 December 2024  
See:  http://laws -lois.justice.gc.ca/eng/acts/c -
54.011/FullText.html  
-  Section 40 for LDCT  
4)  Title of the preferential scheme for 
which legislation on  Rules of origin 
is applicable  -  Least Developed Country Tariff (LDCT)  
5)  Authority(ies) granting the 
preferential treatment  Authority is provided through the Customs Tariff.  
See: http://laws -lois.justice.gc.ca/eng/acts/C -
54.011/FullText.html  
-  Sections 37 -40 for information on the LDCT  
                                                
1 The relevant notification requirements are contained in Paragraph 2(d) of Annex 1 of the Transparency 
Mechanism for P referential Trade Arrangements (WT/L/806) and in Paragraph 4 of Annex II of the Agreement 
on Rules of Origin.  G/RO/LDC/N/CAN/2  
 
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  6)  National authorities in charge of 
Rules of origin administration  - The Department of Finance has the responsibility for 
Canada 's tariff policy and legislation (Customs Tariff), and 
the Canada Border Services Agency (CBSA) is responsible 
for its day -to-day administration.  
- The Department of Finance can be reached at fin.tariff -
tarif.fin@canada.ca   
- The CBSA can be reached at contact@cbsa.gc.ca  or via 
telephone through the Border Information Service (in 
Canada 1 -800-461-9999; outside Canada 204 -983-3500 or 
506-636-5064).  
- Border Information Service webpage: http://www.cbsa -
asfc.gc.ca/contact/bis -sif-eng.html  
 
B. INFORMATION ON RULES OF ORIGIN  
I.  BENEFICIA RIES  
1)  List of Beneficiaries  49 beneficiaries of the LDCT .  The list of beneficiaries can be 
found at:  http://cbsa.gc.ca/trade -commerce/tariff -
tarif/2017/01 -99/countries -pays-eng.pdf  
2)  Eligibility  http://laws -lois.justice.gc.ca/eng/acts/C -54.011/FullText.html  
- Section 38 for LDCT.  
 
II.  CRITERIA FOR DETERMINING SUBSTANTIAL T RANSFORMATION  
1)  General criteria, if applicable for all products  
 (a) Definition of wholly obtained 
products  The General Preferential Tariff and Least Developed Country 
Tariff Rules of Origin Regulations (SOR/2013 -165) are 
available at:   http://laws -
lois.justice.gc.ca/eng/regulations/SOR -2013-165/FullText.html  
See sub -section 2(1) of the above link.  
 (b)  Describe the criteria for not -
wholly produced products  See subsection 2(3) of the above link for the rule of origin and 
subsection 2(9) for the cumulation provision.  This rule of 
origin covers all goods except for certain apparel and made 
up-textile goods.  Canada allows the use of up to 80% 
non-originating mater ials (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).  
The ad valorem  percentage is calculated by using the value of 
non-originating materials as a per centage of the ex -factory 
price of the final goods as packed for shipment to Canada.   (c)  Insert the formula for 
calculating ad valorem  
percentage  
2)  Product specific rules of origin, where applicable  
 (a)  Insert  the link where the 
complete list of  product 
specific rules of origin can be 
found.  Rules of origin for most apparel (goods set out in Parts A1 and 
A2 of Schedule 1 of the Regulations):  see subsection 2(4) of 
the above link.  LDCs may use fabric produced in current or 
former GSP beneficiari es in the production of apparel, 
provided they add at least 25% value in the LDC.  (Any value 
that is added in Canada is also considered as if it were added 
in the LDC.)  The ad valorem percentage is calculated by using 
the value of non -originating materia ls as a percentage of the 
ex-factory price of the final goods as packed for shipment to 
Canada.  LDCs may also use fabric produced in an LDC or 
Canada in the production of apparel, with no value 
requirement.  In both cases, the yarn must also be produced 
in an LDC, Canada or a current or former GSP beneficiary 
country.  
Rules of origin for T -shirts and certain pants (goods set out in 
Part A3 of Schedule 1 of the Regulations):  see subsection 
2(4.1) of the above link.  Similar to the rules of origin for 
appar el above, with three modifications.  
The fabric may be cut in Canada, another LDC, a current or 
former GSP beneficiary or a country with which Canada has a 
free trade agreement,  LDCs may use fabric or yarn that has 
been produced in a country with which Cana da has a free  (b)  Insert the formula for 
calculating ad valorem  
percentage, when applied for 
product specific rule  G/RO/LDC/N/CAN/2  
 
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  trade agreement, as long as 25% value is added in the LDC, 
and  
Any value that is added in Canada or a country with which 
Canada has a free trade agreement is included in the value 
requirement as if it were added in the LDC.   
Rule of origin for made up -textile goods (goods set out in Part 
B of Schedule 1 of the Regulations):  see subsection 2(6) of 
the above link.  For made -up textile products, LDCs must use 
fabric produced in an LDC or Canada, but there is no value 
requirement.  The yarn mus t also be produced in an LDC, 
Canada or a current or former GSP beneficiary country.  
3) Definition of non -originating 
material and originating materia l, 
if any  Not applicable  
4) List of insufficient working 
process, if any  Not applicable  
5) Rules for application of cumulation 
and related procedures if any  See sections 1 and 2 above.  
6) Any other information that member 
deems necessary  - 
 
III.   DOCU MENTARY REQUIREMENTS  
1)  Certificate of origin and other proofs of origin  
 (a)  Requirement for certificate of 
origin and/or any other proof 
of origin, if any  Canada allows exporter self -certification and requires a 
certificate of origin only for textile and apparel goods (other 
goods require either an Exporter 's Statement of Origin or a 
Form A Certificate of Origin).  
 (b)  Authority to be designated 
for issuance of certificate of 
origin  Not applicable.  The exporter completes the Certificate of 
Origin or  the Statement of Origin.  
 (c)  Prescribed form of Certificate 
of origin and/or any other 
proof of origin  The prescribed forms and explanatory information can be 
found at:  
http://cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -4-4-
eng.pdf  
http://www.cbsa -asfc.gc.ca/trade -commerce/tariff -tarif/ldct -
tpmd-eng.html    (d)  Any other procedures appl ied 
for certificate of origin 
and/or any other proof of 
origin, if any  
2)  Direct shipment  
 (a)  Rules applicable for direct 
shipment, if any  Information about direct shipment can be found at:  
http://cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -4-4-
eng.pdf  
http://www.cbsa -asfc.gc.ca/trade -commerce/tariff -tarif/ldct -
tpmd-eng.html   (b)  Documentary requirement for 
proof of direct shipment 
including when the transport 
of consignment involves 
transit through one or more 
intermediate countries, if any  
 
IV.  VERIFICATION AND PENALTIES  
1)  Procedure for verification of proofs 
of origin  Informa tion about verifications can be found at:  
http://www.cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -6-8-
eng.html   
2)  Penalties for fraud and false 
declarations  Information a bout penalties can be found at:  
http://www.cbsa -asfc.gc.ca/publications/dm -md/d22/d22 -1-1-
eng.html   
3)  Authorities and procedures for 
appeal in the case of dispute on 
verification  Information concerning the authorities and procedures for 
appeal can be found at:  
http://www.cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -6-7-
eng.html   G/RO/LDC/N/CAN/2  
 
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  4) Require ment for preserving the 
documents related to issuance of 
certificate of origin  Information about the maintenance of documentary records 
can be found at:  
http://www.cbsa -asfc.gc.ca/publications/dm -md/d17/d17 -1-
21-eng.html  
5) Any other relevant information  - 
 
V.  REFERENCE TEXTS  
(a) The legislative texts in one of the 
official WTO languages containing 
the preferential rules of origin 
applicable under a PTA granted 
under the  Decision on Measures in 
Favour of Least -Developed 
Countries (Annex F of the Hong 
Kong Ministerial Declaration)  General Preferential Tariff and Least Developed Tariff Rules of 
Origin Regulations  
http://laws -lois.justice.gc.ca/PDF/SOR -2013-165.pdf  
 
(b) The full text of the administrative 
regulations concerning modalities 
for issuance, acceptance, 
retrospective issuance and 
replacement of certificates of 
origin or any equivalent 
declaration s to be made, including 
any requirements  related to 
stamps to be used along with 
notification of stamps  - Proof of Origin of Imported Goods Regulations :  http://laws -
lois.justice.gc.ca/PDF/S OR-98-52.pdf  
- Temporary Storage Period Regulations :  http://laws -
lois.justice.gc.ca/PDF/SOR -88-79.pdf  
- Customs Tariff (see sections 17 & 18 - Direct Shipment) :  
http://laws -lois.justice.gc.ca/PDF/C -54.011.pdf  
- Haiti Deemed Direct Shipment (General Preferential Tariff 
and Least Developed Country Tariff) 
Regulations  (SOR/2010 -58):  http://laws -
lois.justice.gc.ca/PDF/SOR -2010-58.pdf  
 (c) The full text and related 
administrative regulations of the 
modalities for the proof of 
movement of the consignment of 
the goods from the beneficiary 
countries to preference -giving 
countries including transit through 
third countries  
(d) The full texts of the modalities of 
the verification procedures and 
related penalties  - Verification of Origin (Non -Free Trade Partners), Tariff 
Classification and Value for Duty of Imported  Goods 
Regulations :  http://laws -lois.justice.gc.ca/PDF/SOR -98-
45.pdf  
- Determination, Re -determination and Further Re -
determination of Origin, Tariff Classification and Value for 
Duty Regu lations :  http://laws -lois.justice.gc.ca/PDF/SOR -
98-44.pdf  
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