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Uniform Regulations Chapters Three and Five of NAFTA
Memorandum D11-4-18

Ottawa, October 27, 2014

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In Brief

  1. This memorandum has been revised in order to present the Uniform Regulations in the form of an appendix.
  2. The editing revisions made do not affect or change the content of this memorandum.

This memorandum contains the Uniform Regulations for Chapters Three and Five of the North American Free Trade Agreement (NAFTA).

Guidelines and General Information

1. The Uniform Regulationsfor Chapters Three and Five of NAFTA have been agreed to by the governments of Canada, Mexico and the United States. The Uniform Regulations elaborate in detail how NAFTA Parties will interpret, apply and administer the obligations regarding customs procedures under Chapter Five, and national treatment and market access under Chapter Three, and are to be read in conjunction with these Chapters. They are designed to ensure consistent and uniform treatment of, and greater certainty for, importers, exporters and producers in all three countries.

2. The Uniform Regulationswere implemented in Canada through Canadian legislation, regulations or departmental policy, all of which are reflected in various memoranda of the Canada Border Services Agency.

Additional Information

3. For more information, call contact the CBSA Border Information Service (BIS):
Calls within Canada & the United States (toll free): 1-800-461-9999
Calls outside Canada & the United States (long distance charges apply):
1-204-983-3550 or 1-506-636-5064

TTY: 1-866-335-3237

Contact Us online (webform)
Contact Us at the CBSA website

Appendix

Section A — Certification of Origin

Article I: Certificate of Origin

1. The Certificate of Origin referred to in Article 501(1) of the North American Free Trade Agreement (hereinafter "the Agreement") shall be:

2. For purposes of Article 501(5)(a) of the Agreement, a single Certificate of Origin may be used for :

Article II: Obligations Regarding Importations

1. For purposes of Article 502(1)(a) of the Agreement, "valid Certificate of Origin" means a Certificate of Origin that the exporter of the good in a territory of a Party completes in accordance with the requirements set out in Article I of these Uniform Regulations.

2. For purposes of Article 502(1)(c) of the Agreement:

3. An importer that makes a corrected declaration of origin pursuant to Article 502(1)(d) and (2)(b) of the Agreement and pays any duties owing shall not, in accordance with Article 502(2)(b), be subject to penalties, as set out in Annex II.3.

4. Where as a result of an origin verification conducted under Article 506 of the Agreement, the customs administration of a Party determines that a good that is covered by a Certificate of Origin that is applicable to multiple importations of identical goods in accordance with Article 501(5)(b) does not qualify as an originating good, such Certificate may not be used to claim preferential tariff treatment for those identical goods after the date that the written determination is provided under Article 506(9).

Article III: Exceptions

1. The statement referred to in Article 503(a) of the Agreement shall, where required by the customs administration of the Party into whose territory the good is imported, be attached to, or handwritten, stamped or typed on the commercial invoice covering the good.

2. For purposes of Article 503 of the Agreement, "series of importations" is defined in Annex III.2.

Article IV: Obligation Regarding Exportations

1. For purposes of Article 504(1)(b) of the Agreement, "promptly" is defined in Annex IV.1.

2. For purposes of Article 504(3) of the Agreement, no Party may impose civil or administrative penalties on an exporter or producer of a good in its territory where the exporter or producer, prior to the commencement of an investigation by officials of that Party with authority to conduct a criminal investigation regarding the Certificate of Origin, provides the written notification referred to in Article 504(1)(b).

3. For purposes of Article 504(1)(b) of the Agreement, where the customs administration of a Party provides an exporter or producer of a good with a determination under Article 506(9) that the good is a non-originating good, the exporter or producer shall notify all persons to whom it gave a Certificate of Origin in respect of that good of the determination.

Section B — Administration and Enforcement

Article V: Records

1. The documentation and records required to be maintained under Article 505 of the Agreement shall be kept in such a manner as to enable an officer of the customs administration of a Party, in conducting a verification of origin under Article 506, to perform detailed verifications of the documentation and records to verify the information on the basis of which:

2. Importers, exporters and producers in the territory of a Party that are required to maintain documentation or records under Article 505 of the Agreement shall be permitted, in accordance with that Party's law, to maintain such documentation and records in machine-readable form, provided that the documentation or records can be retrieved and printed.

3. Exporters and producers that are required to maintain records pursuant to Article 505(a) of the Agreement shall, subject to the notification and consent requirements provided for in Article 506(2), make those records available for inspection by an officer of the customs administration of a Party conducting a verification visit and provide facilities for inspection thereof.

4. A Party may deny preferential tariff treatment to a good that is the subject of an origin verification where the exporter, producer or importer of the good that is required to maintain records or documentation under Article 505 of the Agreement:

5. Where the customs administration of a Party finds during the course of an origin verification that a producer of a good in the territory of another Party has failed to maintain its records in accordance with the generally accepted accounting principles applied in the territory of the Party in which the good is produced as required by Article 413(e) of the Agreement, the producer shall be given an opportunity to record its costs in accordance with those generally accepted accounting principles within 60 days of being informed in writing by the customs administration that the records have not been maintained in accordance with those generally accepted accounting principles.

6. For purpose of Article 505 of the Agreement and these Uniform Regulations, "records" include books as referenced in the Uniform Regulations under Chapter Four.

Article VI: Origin Verifications

1. For purposes of Article 506(1)(c) of the Agreement, the customs administration of a Party may conduct a verification of origin with respect to a good that is imported into its territory by means of:

2. Subject to paragraph 3, where the customs administration of a Party conducts a verification under paragraph 1(b), it may, on the basis of a response of an exporter or producer to a communication referred to in paragraph 1(b), issue a determination under Article 506(9) of the Agreement:

3. Where the producer of a good chooses to calculate the regional value content of a good under the net cost method as set out in the Uniform Regulations under Chapter Four of the Agreement, the customs administration of the Party into whose territory the good was imported may not, during the time period over which the net cost has been calculated, verify the regional value content in respect of that good.

4. The customs administration of a Party, in conducting a verification visit under Article 506(1)(b) of the Agreement, shall send the notice referred to in Article 506(2)(a) by certified or registered mail, or any other method that produces a confirmation of receipt by the exporter or producer whose premises are to be visited.

5. Where the exporter or producer of a good that is the subject of a proposed verification visit by the customs administration of a Party has not given its written consent to a visit under Article 506(4) of the Agreement, the customs administration may determine that the good does not qualify as an originating good and may deny preferential tariff treatment to that good.

6. For purposes of Article 506(7) of the Agreement, an exporter or producer of a good shall identify to the customs administration conducting a verification visit any observers designated to be present during such visit.

7. Each Party shall identify to the other Parties, by January 1, 1994, the office to which notice shall be sent under Article 506(2)(a)(ii) of the Agreement.

8. For purposes of Article 506(5) of the Agreement, a notice of postponement of a verification visit shall be made in writing and shall be sent to the address of the customs office that sent the notice of intention to conduct a verification visit.

9. The common standards for the written questionnaires referred to in Article 506(1)(a) of the Agreement are set out in Annex VI.9.

10. Where, pursuant to Article 403(3) of the Agreement, a producer of a motor vehicle identified in Article 403(1) or (2) elects to average its regional value-content calculation over its fiscal year, the customs administration of the Party into whose territory the motor vehicle was imported may request, in writing, that the producer submit a cost submission reflecting the actual costs incurred in the production of the category of motor vehicles for which the election was made.

11. Where the customs administration of a Party requests that a cost submission be submitted by the producer of a motor vehicle under paragraph 10, such cost submission shall be submitted within 180 days after the close of that producer's fiscal year or within 60 days from the date on which the request was made, whichever is later.

12. Where the customs administration of a Party sends a written request under paragraph 10, such request shall constitute a verification letter under paragraph 1(a).

13. The customs administration of a Party may, for purposes of verifying the origin of a good, request that the importer of the good voluntarily obtain and supply written information voluntarily provided by the exporter or producer of the good in the territory of another Party, provided that the failure or refusal of the importer to obtain and supply such information shall not be considered as a failure of the exporter or producer to supply the information or as a ground for denying preferential tariff treatment.

14. Nothing in this Article shall limit any right accorded under Chapter Five of the Agreement to the exporter or producer of a good in the territory of a Party by virtue of the fact that such exporter or producer is also the importer of the good in the territory of the Party in which preferential tariff treatments is claimed.

15. Where a customs administration conducts a verification of origin of a good under Article 506(1)(a) of the Agreement or paragraph 1(a), it may send the verification letter or questionnaire by:

16. Where the customs administration of a Party has sent a verification letter or questionnaire to an exporter or producer of a good in the territory of another Party and such exporter or producer fails to respond within the period specified therein, which shall be no less than 30 days from the date on which the verification letter or questionnaire was sent, the customs administration:

17. Where the customs administration of a Party sends a written determination under paragraph 16(b) and the exporter or producer fails to respond to the subsequent verification letter or questionnaire within 30 days:

18. Where the customs administration of a Party does not send a written determination under paragraph 16(b) and the exporter or producer fails to respond to the subsequent verification letter or questionnaire within 30 days:

19. Where the customs administration of a Party determines, as a result of an origin verification, that a good that is the subject of the verification does not qualify as an originating good, the written determination provided for under Article 506(9) of the Agreement shall:

20. Where the customs administration of a Party determines on the basis of information obtained during a verification that a good does not qualify as an originating good:

21. For purposes of Article 506(10) of the Agreement, "pattern of conduct" means repeated instances of false or unsupported representations by an exporter or producer of a good in the territory of a Party that are established by the customs administration of another Party on the basis of not fewer than two origin verifications of two or more importations of the goods that result in not fewer than two written determinations being sent to that exporter or producer pursuant to Article 506(9) that conclude, as a finding of fact, that Certificates of Origin completed by that exporter or producer with respect to identical goods contain false or unsupported representations.

22. For purposes of Article 506(12) of the Agreement, "consistent treatment" means the established application by the customs administration of a Party that can be substantiated by the continued acceptance by that customs administration of the tariff classification or value of identical materials on importations of the materials into its territory by the same importer over a period of not less than two years immediately prior to the date that the Certificate of Origin for the good that is the subject of the determination under Article 506(11) was completed, provided that with respect to those importations:

23. For purposes of Article 506(12) of the Agreement, a person shall be entitled to rely on a ruling or advance ruling in accordance with Annex VI.23.

24. A ruling or advance ruling referred to in paragraph 23 that is issued by the customs administration of a Party shall remain in force until modified or revoked.

25. No modification or revocation of a ruling referred to in paragraph 23, other than an advance ruling, may be applied to a good that was the subject of the ruling and that was imported prior to the date of such modification or revocation unless:

26. For purpose of Article 506(11) of the Agreement, reference to the phrase, "one or more materials used in the production of the good" means materials that are used in the production of the good or that are used in the production of a material that is used in the production of the good.

27. Article 506(12)(a) of the Agreement in relation to Article 506(11) includes:

28. Where the customs administration of a Party, in conducting a verification of origin of a good imported into its territory under Article 506 of the Agreement, conducts a verification of the origin of a material that is used in the production of the good, the verification of the material shall be conducted in accordance with the procedures set out in:

29. The customs administration of a Party, in conducting a verification of a material that is used in the production of a good pursuant to paragraph 28, may consider the material to be non-originating in determining whether the good is an originating good where the producer or supplier of that material does not allow the customs administration access to information required to make a determination of whether the material is an originating material by the following or other means:

30. A party shall not consider a material that is used in the production of a good to be a non-originating material solely on the basis of a postponement of a verification visit under Article 506(5) of the Agreement as made applicable by paragraph 28(a).

31. Where the customs administration of a Party conducts a verification under Article 506 of the Agreement, it may also verify:

32. Each Party shall, through its customs administration when conducting a verification of origin to which Generally Accepted Accounting Principles may be relevant, apply and accept the Generally Accepted Accounting Principles applicable in the territory of the Party in which the good is produced or in which the exporter is located, as the case may be.

Section C — Advance Ruling

Article VII: Advance Rulings

1. For purposes of Article 509 of the Agreement, the customs administration of a Party shall issue an advance ruling to a producer in the territory of another Party of a material that is used in the production of a good in the territory of another Party, provided that the good is to be subsequently imported into the territory of the Party issuing the ruling, concerning any matter covered by Article 509(1)(a) through (e) and (g) with respect to that material.

2. The common standards regarding the information to be submitted in an application for an advance ruling are set out in Annex VII.2.

3. For purposes of Article 509 of the Agreement, an application to the customs administration of a Party for an advance ruling shall be completed in the language of that Party as set out in Annex I.1d.

4. Subject to paragraph 5 and 6, the customs administration to which the application is made shall issue an advance ruling within 120 days of its receipt of all information reasonably required to process the application, including any supplemental information that may be requested.

5. Each Party may provide that, where an application for an advance ruling is made to its customs administration that involves an issue that is the subject of:

6. For purpose of Article 509(3) of the Agreement, where the customs administration of a Party determines that an application for an advance ruling is incomplete, it may decline to further process the application provided that:

7. Nothing in paragraph 5 or 6 shall be construed so as to prevent a person from reapplying for an advance ruling.

8. For purposes of Article 509(7) of the Agreement, "importations of a good" is defined in Annex VII.8

Section D — Review and Appeal

Article VIII: Review and Appeal

1. A denial of preferential tariff treatment to a good by the customs administration of a Party under these Uniform Regulations may be appealed under Article 510 of the Agreement by the exporter or producer of the good who completed the Certificate of Origin for the good in respect of which a claim for preferential tariff treatment was denied, including a denial of preferential tariff treatment under Article 506(4).

2. Where an advance ruling is issued under Article 509 of the Agreement or paragraph 1 of Article VII of these Uniform Regulations, a modification or revocation of the advance ruling shall be subject to review and appeal under Article 510.

3. Where a Party denies preferential tariff treatment to a good on the basis:

Section E — Tariff Elimination

Article IX: Tariff Elimination

1. For purposes of Annex 302.2 and Annex 300-B of the Agreement, Annex 302.2(4), (5), (6), (8), (10), (11), (12), and (13) and Annex 300-B, Section 2, paragraph 2(b) do not apply where a Party gives duty free treatment to all other Parties in respect of an originating good imported into its territory.

2. For purposes of Annex 302.2 and Annex 300-B of the Agreement, the customs administration of the Party into whose territory an originating good is imported shall determine the applicable preferential tariff rate of duty under Annex 302.2(8), (10), (11), (12) and (13) and Annex 300-B, Section 2, paragraph 2(b) on the basis of the Marking Rules established under Annex 311 only where:

3. For purposes of Annex 302.2 of the Agreement, each Party may, notwithstanding that the requirements of Article 502 and any other legal requirements imposed under its law have been satisfied, deny the applicable preferential tariff rate of duty set out in that Annex to an originating good imported into its territory:

Section F — Drawback and Duty Deferral Programs

Article X: Drawback and Duty Deferral Programs

1. For purposes of Article 303 of the Agreement, "identical or similar" means "identical" and "similar" as defined in Article 15, subsection 2(a) and (b) of the Customs Valuation Code, and as further defined in Annex IX.1.

2. For purposes of Article 303(1) of the Agreement, "the total amount of customs duties paid to another Party on the good that has been subsequently exported to the territory of the other Party" means the customs duties that are paid in respect of the entry for consumption of the good in the customs territory of a Party, including any change referred to under paragraph 7(b).

3. For purposes of Article 303(1) of the Agreement, where a good is exported from the territory of a Party to the territory of another Party and entered into a duty deferral program in that other Party:

4. In accordance with paragraph (d) of the definition of "satisfactory evidence" under Article 318, "satisfactory evidence" includes an affidavit from the person claiming, subject to Article 303 of the Agreement, a refund, waiver or reduction of customs duties, where such affidavit is based on information received from the importer of the good in the territory of the Party into which the good was subsequently exported.

5. Satisfactory evidence, in the form of one or more of the documents referred to in the definition in Article 318 of the Agreement and paragraph 4, shall contain:

6. The Party to whom a claim for refund of the amount of customs duties paid, or a waiver or reduction of the amount of customs duties owed is made, may request that the Party to whose territory the good was subsequently exported examine the information referred to under paragraph 5(a) through (e) that was provided in connection with that claim.

7. The Party to whom a request was made under paragraph 6 shall:

8. For purposes of Article 303.6(b) of the Agreement, the circumstances under which a good shall be considered to be in same condition include the following:

Section G — Final Provisions

Article XI: Final Provisions

1. For purposes of Chapter Five of the Agreement and these Uniform Regulations, "completed" means completed, signed and dated.

2. Each Party shall ensure that its customs procedures governed by the Agreement are in accordance with Chapter Five of the Agreement and these Uniform Regulations.

3. These Uniform Regulations shall enter into force on the date of the entry into force of the Agreement.

4. For purposes of Chapter Five of the Agreement and these Uniform Regulations, any reference to "materials that are used in the production of the good" or "that are used in the production of a material that is used in the production of the good" shall include materials that are incorporated into a good or material as defined in the Uniform Regulations for Chapter Four.

Annex I.1a

North American Free Trade Agreement – Certificate of Origin Form and Instructions

Annex I.1d - Language of a Party

For purposes of these Uniform Regulations the language of a Party shall be, in the case of:

Annex II.3 - Corrected Declaration of Origin

An importer shall not be subject to penalties if, in the case of:

Annex III.2 - Country-specific Definitions of "Series of Importations"

For purposes of Article 503 of the Agreement, "series of importations" means, in the case of:

Annex IV.1 - Country-specific Definitions of "Promptly"

For purposes of Articles 504(1)(b) of the Agreement, "promptly" means, in the case of:

Annex VI.9 - Common Standards for Written Questionnaires

1. For purposes of articles VI.9 of these Uniform Regulations, the Parties will seek to agree on uniform questions to be included in a general questionnaire.

2. Subject to paragraph 3, where the customs administration of a Party conducts a verification under
Article 506(1)(a) of the Agreement, it shall send the general questionnaire referred to in paragraph 1 of this Annex.

3. For purposes of Article 506(1)(a) of the Agreement, where the customs administration of a Party requires specific information not reflected in the general questionnaire, it may send a more specific questionnaire, according to the information required to determine whether the good that is the subject to the verification is an originating good.

4. For purposes of Article VI of these Uniform Regulations, the verification questionnaires may, at the option of the exporter or producer, be completed in either the language of the Party into whose territory the good is imported, or the language of the Party in the territory in which the exporter or producer is located.

5. Nothing in this Annex shall be interpreted to constrain the customs administration of a Party from requesting additional information in accordance with Article 506(1)(a) of the Agreement and these Uniform Regulations.

Annex VI.23 - Rulings and Advance Rulings

A person shall be entitled to rely on a ruling or advance ruling that is issued, in the case of:

Annex VII.2 - Common Standards for Information Required in the Application for an Advance Ruling

1. For purposes of Article 509(2) of the Agreement, each Party shall provide that a request for an advance ruling contain:

2. Where relevant to the issue that is the subject of the request for an advance ruling, the request shall include, in addition to the information referred to in paragraph 1:

3. Where the request for the advance ruling involves the application of a rule of origin that requires an assessment of whether materials used in the production of the good undergo an applicable change in tariff classification, the request shall include;

4. Where the request for an advance ruling involves the application of a regional value-content requirement, the applicant shall indicate whether the request is based on the use of the transaction value or the net cost method, or both.

5. Where the request for an advance ruling involves the use of the transaction value method, the request shall include:

6. Where the request for an advance ruling involves the use of the net cost method, the request shall include:

7. Where the request for an advance ruling involves an issue of whether, with respect to a good or a material that is used in the production of a good, the transaction value of the good or the material is acceptable, the request shall include information sufficient to permit an examination of the factors enumerated in Schedules III or VIII of NAFTA Rules of Origin Regulations, as applicable.

8. Where the request for an advance ruling involves an issue with respect to an intermediate material under Article 402(10) of the Agreement, the request shall contain sufficient information to determine the origin and value of the material in accordance with Article 402(11).

9. Where the request for an advance ruling is limited to the calculation of an element of a regional value content formula, in addition to the information required under paragraph 1, only that information set out under paragraph 4, 5, and 6 which is relevant to the issue that is the subject of the request for an advance ruling need be contained in the request.

10. Where the request for an advance ruling is limited to the origin of a material that is used in the production of a good in accordance with Article VII.1 of these Uniform Regulations, in addition to the information required under paragraph 1, only that information, set out under paragraphs 2 and 3, which is relevant to the issue that is the subject of the advance ruling need be contained in the request.

Annex VII.8 - Country-specific Definitions of "Importations of a Good"

For purposes of Article 509(7) of the Agreement, "importations of a good" means importations of a good:

Annex IX.1 - United States definition of "identical or similar"

For purposes of Article 303 of the Agreement, in the case of the United States "identical or similar" shall have the same meaning as "same kind and quality" as set forth in 19 U.S.C. § 1313 (b).

References

Issuing office:
Trade and Anti-dumping Programs Directorate
Headquarters file:
4571-11
Legislative references:
Customs Act
Other references:
D11-11-1
Superseded memorandum D:
D11-4-18 dated April 11, 2013

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