International Parcel Delivery | Blog

Country Of Origin versus Country Shipped From

Written by Timothy Byrnes | May 26, 2014

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.

Jet Worldwide provides Canadian and global logistics. Our support refers to the various systems and services regarding international and Canadian movement of goods. This can include things like transportation, storage facilities, and supply chain management. Our logistics support augments your team by not being beholden to a specific carrier or process.

Useful Video: Understanding Country of Origin

Expand your cross border transportation and logistics options. Build best in class processes between anywhere and Everywhere. With a trusted brand for over 40 years!

Shipping From versus Country of Origin

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.

Does it matter from where goods are shipping from?

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:

  • Goods the ship from the USA or Mexico to Canada benefit from a higher value duty free threshold.This benefit is part the North American Free Trade Agreement (USMCA/CUSMA/T-MEC). Read more about Canadian import fees.
  • Some countries of have import quotas on goods from a specific country
  • Goods originating from non WTA countries (such as North Korea) may not benefit from the "most favour nation" rate of duty.

What is the Difference Between Country of Origin and From where Goods Where Sent?

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.

Examples of Ship Country from Versus Their Country of Origin

  • A supplier in Canada sells goods online were originally from China to a customer in Germany. In this case, the country of origin of the goods is China. As such, the goods do not qualify for duty free import under the Canadian European Free Trade Agreement.
  • Goods via an online sale from an American retailer of goods made in China. The goods do not qualify as USA origin under the USMCA/CUSMA free trade agreement.

Import Duty and Calculation

What are the Rules of Origin under Canada's Free Agreements (FTA's)

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

Key Concepts Regarding Country of Origin

  • Wholly Obtained Products: Goods  extracted, grown, raised or produced entirely in a member country usually qualify for preferential treatment.
  • Substantial Transformation: Products are deemed to originate in a country if they undergo a significant manufacturing process or value addition in that country.
  • De Minimis Rule: Allows a certain percentage of non-originating/ foreign materials to be used in the production of a product without disqualifying it from preferential treatment.
  • Cumulation: Allows producers in FTA member countries to use materials from other member countries and still qualify for preferential treatment.

In general, the rules of origin under Canada's FTA fall into two categories

General Rules of Origin of Canada's Free Trade Agreements

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 Canada's Free Trade Agreements

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:

  • Textiles and Apparel: This sector often has strict rules of origin. A minimum percentage of the value of the product are necessary. Yarns and fabrics must originate from the applicable territory.
  • Automobiles: Automobiles and parts often have complex rules of origin. Rules of origin apply to various parts and components. The processes have requirements necessary order for the final product to be originating.
  • Chemicals: The rules of origin for chemicals may specify the origin of raw materials. Other consideration include intermediate products. Specific processes are necessary in order for the product to qualify as originating.
  • Agricultural Products: Specific provisions for agriculture can include the origin of seeds, fertilizers, and other inputs. The location of the primary production and processing of the product is also a consideration.

How can I benefit from one of Canada's Free Trade Agreement?

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.

Verify a Certificate of Origin and why it is necessary

Read more: Canada's Free Trade Agreements

Shipping from a Most Favour Nation (MFN)

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.

Options For Shipping Between Canada's Free Trade Partners

There are a few options for shipping freight between Canada's Free Trade Partners:

  1. Air freight: This is the fastest option with economy air options
  2. Ocean: Best for large commercial orders
  3. Local post options are generally best for individuals shipping small packages but not possible to include a certification of origin
  4. When shipping with FedEX , DHL, UPS make sure the certification of origin is clear.
  5. Jet Worldwide: Providing best in class shipping for over 40 years!