Rules of origin are provisions in Canada’s free trade agreements (FTAs) to determine whether a good is “originating” (where it is produced).
These rules specify the proportion of production, or of a good’s value, that must collectively occur in Canada and its FTA partner country (or countries) in order for it to be deemed originating.
Under Canada’s FTAs, only originating goods are eligible for preferential tariff treatment when exported from one FTA country to another FTA country.
Rules of origin also ensure that goods that are entirely or largely produced in third countries do not benefit from preferential tariff treatment by merely being transhipped via Canada to an FTA partner country, or vice versa, or by undergoing minimal processing in one of the FTA countries.
The rules of origin for each of Canada’s free trade agreements are generally set out in separate chapters.
Specific information related to how your product complies with the rules of origin can be obtained from experts and consultants, such as customs brokers. It is also recommended that you obtain from the foreign country an advance ruling on origin.