CHFTA Verification of Origin Rules

Summary#

The CHFTA Verification of Origin Regulations set out how Canada will check whether goods exported from Honduras qualify for preferential tariff treatment under the Canada–Honduras free trade arrangement. They describe the paperwork, visits, timing and record-keeping required, and are treated as having come into force on October 1, 2014 (registered June 23, 2023, published July 5, 2023).

What it does#

• Allows origin checks to be done by:
  • a written verification questionnaire,
  • a written verification letter, or
  • a verification visit to business premises — not only physical inspections.
• Requires a verification letter or questionnaire to state:
  • who is asking (customs administration and officer name and title),
  • what goods or materials are being checked, and
  • a response period of at least 30 days.
• Lets recipients ask once for an extension; extensions are normally up to 30 days, but can be longer for exporters/producers if records are lost because of bankruptcy, reorganization, fire, flood or other unforeseeable loss.
• Sets record rules for exporters and producers:
  • keep origin-related records in Honduras for five years (or longer if Honduras requires), and give officers access to them.
• Sets notice and consent rules for verification visits:
  • the customs officer must send written notice (with specific details) and must notify Honduras’s competent authority in advance — at least five business days before the notice is sent to the person;
  • the exporter or producer must give written consent to a visit within 30 days of receiving the notice.
• Allows the person receiving a visit notice to request one postponement:
  • request must be made within 15 days of the notice, and postponement can be up to 60 days (or longer if agreed).
• Lets the person designate two observers to attend a verification visit; observers may only watch.
• Requires that important documents and notices be sent by a method that produces confirmation of receipt.
• When an officer says goods are not eligible for preferential treatment, the officer must attach a written notice saying when preferential treatment may be denied and how long the exporter/producer has to submit comments or extra information.

Who's affected#

• Exporters and producers in Honduras who sign Certificates of Origin for goods claimed under CHFTA.
• Producers and suppliers of materials in Honduras who provide components or ingredients for those goods.
• Canadian importers who claim CHFTA preferential tariff treatment for Honduran-origin goods.
• The customs administration and officers who carry out origin verifications.
• The Honduran competent authority, named as the Secretaría de Estado en los Despachos de Industria y Comercio (or any successor it notifies to Canada).

Why it matters#

• If origin cannot be verified under these rules, goods can lose CHFTA preferential tariff treatment. That can raise import costs for Canadian businesses and consumers.
• Exporters and suppliers must keep records in Honduras for five years, and be ready to answer letters or questionnaires, which affects bookkeeping and record access.
• Verification visits are possible, but businesses get advance written notice, a chance to postpone, and can have observers present — which balances verification needs with time to prepare.
• The regulations clarify how Canada and Honduras will perform origin checks, so businesses and customs officers know the timelines and steps to expect.