G/RO/LDC/N/CAN/1  
 
13 June 2017  
(17-3137) 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 8 June 2017, is being circulated at the reque st of the 
delegation of Canada.  
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Paragraph 4.3 of the 2015 Ministerial Decisi on 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 
Comm ittee 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 modification (in 2013):  General Preferential Tariff and 
Least Developed Country Tariff Rules of Origin Regulations 
(SOR/2013 -165) See: 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 applicable  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 Ta riff (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.  
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 Informa tion Service webpage: http://www.cbsa -
asfc.gc.ca/contact/bis -sif-eng.html   
                                                
1 The relevant notification requirements are contained in Paragraph 2(d ) of Annex 1 of the Transparency 
Mechanism for Preferential Trade Arrangements (WT/L/806) and in Paragraph 4 of Annex II of the Agreement 
on Rules of Origin.  G/RO/LDC/N/CAN/1  
 
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  B. INFORMATION ON RULES OF ORIGIN  
I.  BENEFICIARIES  
1)  List of Beneficiaries  49 beneficiaries of the LDCT.  Th e 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 TRANSFORMATION  
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 subsection 2(1) of the above link  
 (b)  Describe the criteria for not -
wholly produced products  - 
 (c)  Insert the formula for 
calculating ad valorem  
percentage  See sub-section 2(3) of the above link for the rule of origin 
and sub section 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 mat erials (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 p ercentage of the ex -factory 
price of the final goods as packed for shipment to Canada  
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.  - 
 (b)  Insert t he formula for 
calculating ad valorem  
percentage, when applied for 
product specific rule  Rules of origin for 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 i n current or 
former GSP beneficiaries in the production of apparel, 
provided they add at leas t 25% value in the LDC.  
The ad valorem percentage is calculated by using the value of 
non-originating materials as a percentage of the ex -factory 
price of the fin al 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 beneficia ry country.  
Rule of origin for made up -textile goods (goods set out in Part 
B of Schedule 1 of 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 must also be produced in an LDC, 
Canada or a current or former GSP beneficiary country.  
3) Definition of non -originating 
material and originating material, 
if any  Not applicable  
4) List of insufficient working 
process, if any  Not appl icable  
5) Rules for application of cumulation 
and related procedures if any  See sections 1 and 2 above  
 G/RO/LDC/N/CAN/1  
 
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  6) Any other information that member 
deems necessary  Canada announced, in its 2017 Budget, that it would make 
changes to the LDCT rules of origin in o rder for more apparel 
products to qualify for duty -free treatment when imported into 
Canada.  Specifically, the rules of origin will be amended to 
allow LDCs to use manufacturing inputs sourced and 
processed in an expanded list of countries in the producti on of 
T-shirts and certain pants that qualify for duty -free 
importation into Canada.  These changes will ensure that the 
rules of origin more accurately reflect the sourcing patterns 
and manufacturing capabilities for certain LDCs for these 
products.  Thes e changes are expected to be implemented in 
the near future.  
See the section on "Improving Market Access for the World's 
Least Developed Countries" in:  
http://www.budget.gc.ca/2017/docs /plan/chap -03-en.html   
 
III.   DOCUMENTARY 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 co mpletes the Certificate of 
Origin or the Statement of Origin.  
 (c)  Prescribed form of Certificate 
of origin and/or any other 
proof of origin  - 
 (d)  Any other procedures applied 
for certificate of origin 
and/or any other proof of 
origin, if any  The pres cribed forms and explanatory information can be 
found at:  
- http://cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -4-4-
eng.pdf ; and  
- http://www.cbsa -asfc.gc.ca/trade -commerce/tariff -tarif/ldct -
tpmd-eng.html   
2)  Direct shipment  
 (a)  Rules applicable for direct 
shipment, if any  - 
 (b)  Documentary requirement for 
proof of direct shipment 
inclu ding when the transport 
of consignment involves 
transit through one or more 
intermediate countries, if any  Information about direct shipment can be found at:  
- http://cbsa -asfc.gc .ca/publications/dm -md/d11/d11 -4-4-
eng.pdf ; and  
- http://www.cbsa -asfc.gc.ca/trade -commerce/tariff -tarif/ldct -
tpmd-eng.html   
 
IV.  VERIFICATION AND PENALTIES  
1)  Procedure for verification of proofs 
of origin  Information about verifications can be found at:  
http://www.cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -6-8-
eng.html   
2)  Penalt ies for fraud and false 
declarations  Information about penalties can be found at:  
http://www.cbsa -asfc.gc.ca/publications/dm -md/d22/d22 -1-1-
eng.html   
3)  Authorities and pr ocedures 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/publica tions/dm -md/d11/d11 -6-7-eng.html   
4) Requirement 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  - 
 G/RO/LDC/N/CAN/1  
 
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  V.  REFERENCE TEXTS  
(a) The legislative texts in one of the 
official WTO languages containing 
the preferential rules of o rigin 
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 certifi cates of 
origin or any equivalent 
declarations 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/SOR -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 ; and 
- 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 ; and 
- Determination, Re-determination and Further 
Re-determination of Origi n, Tariff Classification and Value for 
Duty Regulations:  http://laws -lois.justice.gc.ca/PDF/SOR -
98-44.pdf   
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