Customs Notice CN09-018

(CBSA)

Proposed Regulatory Amendments and Proposed New Regulations Related to the Implementation of the Canada-Peru Free Trade Agreement 1. This notice announces regulatory amendments and a new regulation proposed by the Canada Border Services Agency (CBSA) in support of the implementation of the Canada-Peru Free Trade Agreement (CPFTA). It is further proposed that these regulatory amendments and new regulations come into force on August 1, 2009, on condition that the Governor in Council make them.

Proposed Regulatory Changes

Certification of Origin of Goods Exported to a Free Trade Partner Regulations
2. It is proposed that the criteria in paragraph 2(c) of the Certification of Origin of Goods Exported to a Free Trade Partner Regulations be amended to refer to the case where goods are exported or are to be exported from Canada to Peru. It is also proposed to amend paragraph 3(b) of the Regulations to include reference to goods exported or to be exported from Canada to Peru.

Exporters' and Producers' Records Regulations
3. It is proposed that the definition of “advance ruling” set out in the Exporters' and Producers' Records Regulations, be amended to include reference to the advance ruling provision of the CPFTA.

Free Trade Agreement Advance Rulings Regulations
4. It is proposed that paragraph 2(d) of the Free Trade Agreement Advance Rulings Regulations be amended to expand the classes of persons eligible to apply for an advance ruling to include producers in Peru of a material used in the production of goods produced in Peru. With respect to the modification or revocation of an advance ruling, it is proposed that subparagraph 14(a)(vi) be amended to include reference to goods exported from Peru and the provisions of Article 205 of the CPFTA. It is proposed that paragraph 14(b) of the Regulations be amended to include reference to goods exported from Peru and that a new subparagraph be added to that paragraph in order to reference an interpretation agreed to by Canada and Peru regarding Chapter Two or Three of the CPFTA. It is proposed that paragraph 14(h) of the Regulations be amended to include a new subparagraph such that an advance ruling can be modified or revoked in order to conform with a modification of Chapters Two, Three or Four of the CPFTA.

Tariff item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations
5. It is proposed that paragraph 2(b) of the Regulations be amended to include reference to Peru so that proof of exportation of the goods to Peru is required when accounting for the goods under section 32 of the Customs Act.

Refund of Duties Regulations
6. It is proposed that the title to Part 5.1 of the Refund of Duties Regulations be amended to make reference to Peru. It is also proposed that section 23.1 of the Regulations be amended such that Part 5.1 of the Regulations applies to the granting of a refund of duties paid on goods imported from Peru on or after August 1, 2009, and for which no claim for preferential tariff treatment under the CPFTA was made at the time the goods were accounted for under subsection 32(1), (3) or (5) of the Customs Act. It is also proposed that paragraph 23.3(b) of the Regulations, respecting the amount of refund of duties, be amended to include the CPFTA.

Proof of Origin of Imported Goods Regulations
7. It is proposed that the title before section 6 of the Proof of Origin of Imported Goods Regulations be amended to make reference to the CPFTA.
8. It is proposed that subsection 6(1) of the Regulations be amended to require the importer or owner of the goods for which preferential tariff treatment under the CPFTA is claimed, to furnish to an officer, as proof of origin for purposes of section 35.1 of the Customs Act, a certificate of origin for the goods that is completed in English, French or Spanish at the times set out in section 13 of the Regulations.
9. It is proposed that subsection 6(2) of the Regulations be amended to exempt the importer and owner of goods from the requirement of subsection 35.1(1) of the Customs Act if the importer or owner furnishes to an officer, at the time prescribed by paragraph 13(a) of the Regulations, a written and signed declaration, in English or French, certifying that the goods originate in Peru and that a certificate of origin, for the goods, is in the importer's possession.
10. It is proposed that subsection 6(3) of the Regulations be amended to exempt the importer and owner of casual goods for which benefit of the preferential tariff treatment under the CPFTA is claimed from the requirement of subsection 35.1(1) of the Customs Act, if the goods are entitled to the preferential tariff treatment under the CPFTA pursuant to the CPFTA Rules of Origin for Casual Goods Regulations.
11. It is proposed that subsection 6(4) of the Regulations be amended such that the importer and owner of commercial goods for which the estimated value is less than $1,600, and for which the benefit of preferential tariff treatment under the CPFTA is claimed, be exempt from the requirements of subsection 35.1(1) of the Customs Act if the requirements set out in subsection 6(4) of the Regulations are met. It is also proposed to add a reference to Peru in subparagraphs 6(4)(b)(i) and (ii). Proposed New Regulation

CPFTA Verification of Origin Regulations
12. The new CPFTA Verification of Origin Regulations are proposed to implement the verification provisions of paragraph 4 of Article 405 and Article 406 of the CPFTA. The Regulations describe the process to be followed by officers when verifying claims for preferential tariff treatment under the CPFTA. The Regulations also impose an obligation on an officer to send a notice to a producer who failed to record costs in accordance with the Generally Accepted Accounting Principles applicable in Peru. The Regulations describe the notification requirements with respect to the postponement of a verification visit in Peru.
13. As part of our consultation process, the CBSA has posted this notice containing the descriptions of the proposed regulatory changes and new regulations on our Web-site for review and comment. For more information, visit our Web-site at www.cbsa.gc.ca.
14. Inquiries and comments about these proposals should be directed to:

Caley Sayers
Senior Program Advisor
Origin Policy and Negotiations Unit
Admissibility Branch
E-mail: caley.sayers@cbsa-asfc.gc.ca