 |
On December 31, 2014, the Canada Gazette published the CKFTA Rules of Origin for Casual Goods Regulations (SOR/2014-300, Dec. 12, 2014), the CKFTA Rules of Origin Regulations and the CKFTA Tariff Prefer¬ence Regulations (SOR/2014-301, Dec. 12, 2014) pursuant to the Customs Tariff. The regulations are necessary to fully implement the Canada–Korea Economic Growth and Prosperity Act which received Royal Assent on November 26, 2014 and implements the Canada-Korea Free Trade Agreement (CKFTA), which was signed on September 22, 2014. The CKFTA Rules of Origin Regulations implement, in Canada, the rules of origin negotiated by Canada and Korea that will be used to determine when goods have undergone sufficient production to qualify for preferential tariff treatment. Goods that meet the criteria set out in the CKFTA Chapter on Rules of Origin or its associated annex qualify as originating and therefore are eligible for preferential tariff treatment. Preferential tariff treatment under the CKFTA, which reflects the actual reduction in specific rates of duty, has been implemented in the Customs Tariff through the Canada–Korea Economic Growth and Prosperity Act. The CKFTA Rules of Origin for Casual Goods Regulations establish the conditions under which goods acquired in Korea by travellers are considered originating and therefore entitled to preferential tariff treatment. Where travellers acquire goods in Korea that are either marked as made in Korea, or not marked to the contrary, the traveller can claim the Korea tariff preference on importation of the goods into Canada. The CKFTA Tariff Preference Regulations allow eligible goods that are not shipped directly between Korea and Canada to retain their eligibility for preferential tariff rates provided the goods remain under customs control in third countries. |
