Certificates of origin are closely linked to rules of origin. “These rules,” says Anick de Sousa, Director of Services for the Canadian Chamber of Commerce, “are used to determine the country of origin of the product, which in turn determines the rates applicable to your product. Each country has its own rules, as there is no global standard. But basically, the rules of origin define how the origin is determined for a product and your CO certifies that your product complies with these rules. “The benefits of free trade agreements are not transferable. Just because a product may be eligible for a free trade agreement does not necessarily mean that it must be the case for another FTA (or that a product may qualify under another rule). Therefore, exporters should not use the same certificate for shipments to different FTA countries. The benefits of using a certificate for the use of preferential rates can be significant. Reducing or eliminating tariffs allows you to be more competitive in the market in terms of price, as your buyers are spared the cost of their payment.
This will help you attract new customers and keep your existing buyers. Canada has waived the requirement for proof of origin of importation of used goods. Casual goods are non-commercial goods purchased in an FTA country and not intended for resale in Canada. Conditions applicable to goods eligible for exempt or reduced customs duties under preferential regimes: “It is very important to do it correctly,” notes de Sousa. Misrepresenting the country of origin to claim preferential duties can have serious repercussions, as your customer feels that they do not have to pay the tariff. However, if the local customs authorities find that the indication of origin was incorrect, including unintentionally, those authorities could require the payment of customs duties on all incorrectly calculated customs duties. Your customer can then take legal action to recover the money from you. In addition, local customs authorities may file civil and criminal charges against you, for example. B negligence or fraud. » Box 2: Fill in this box if the certificate covers several consignments of identical goods, as described in box 5, imported for a specified period of up to one year (framework period). “From” means the date on which the certificate applies to the material covered by the framework certificate (it may be before the date of signature of that certificate). “Year” is the date on which the lump sum period expires.
Imports of a material for which preferential tariff treatment is claimed on the basis of this licence must take place between those dates. . . .