The country of origin can mean two things for international shipping: From where were to goods ship and the country of manufacture or creation. Both concepts can have a great impact on the importation of goods to and from Canada.
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Many shippers - and especially when sending a single package - simply assign the country of origin as being from where the goods are being sent. While this is generally valid for most shipments.
The country of origin of merchandise can affect, the rate of duty, the eligibility for special programs, admissibility, quotas, and marking requirements.
In general, from where the goods ship from does not affect the import clearance. But, in some cases the country from where the goods ship can make a difference:
The "from where the goods ship” refers to the country from which the goods physically dispatch. The "country of origin" refers to the country of production, manufacture, or extraction.
Most often from where goods ship does not affect import clearance (see section above). On other hand, the the country of origin via free trade agreements. Qualifying goods can benefit for preferential duty free import. If not duty free, the goods may otherwise benefit for a tariff reduction.
View "Rules Of Origin" for Importing to the USA.
The rules of origin are the criteria that determine whether a product qualifies for duty-free treatment under a free trade agreement (FTA) between Canada and its trading partners. In general, the rules of origin establish the minimum percentage of a product's value that must originate from the territory of a party to the agreement in order for the product to be eligible for duty-free treatment.
View Accompanying PDF: Understanding Country of Origin
In general, the rules of origin under Canada's FTA fall into two categories
The general rules of origin require that a product with whole production in the territories of the FTA. Goods with simply assembling generally do not quality under the rules of origin. The origin rules broadly refer to the origin of materials, the processes of production, and the percentage of the product's value from the originating country.
Sector-specific rules of origin are specific provisions in Canada's free trade agreements that apply to particular goods or industries. These rules are more specific and demanding than the general rules. Examples of sector-specific rules of origin include:
In order to claim duty-free treatment under Canadian FTA, businesses must supporting evidence. The products meet the specifc rules of origin. Supporting documentation includes invoices, bills of lading, and certificates of origin.
It's important to note that rules of origin can be complex and can be subject to interpretation. Businesses should confirm with regulatory authorities prior as early as possible and always prior to shipping.
The one instance of where the goods ship matters is from a non most favour nation. Only a very few countries (such as North Korea) do not benefit from MFN status.
There are a few options for shipping freight between Canada's Free Trade Partners: