CUFTA Rules of Origin Update

Summary#

The final regulation CUFTA Rules of Origin Regulations (SOR/2024-68) was registered on April 19, 2024 and published on May 8, 2024. It brings parts of the modernized Canada–Ukraine Free Trade Agreement into Canadian law for the purpose of deciding which goods qualify for tariff preferences, and it replaces the earlier rules-of-origin regulation.

What it does#

• Gives the force of law to Articles 3.1 to 3.14 and Annexes 3-A and 3-C of the Canada–Ukraine Free Trade Agreement.
• Repeals the previous CUFTA rules-of-origin regulation (previously SOR/2017-141).
• States the regulations come into force on the day section 9 of the Canada–Ukraine Free Trade Agreement Implementation Act, 2023 comes into force, or on the day the regulations are registered if that is later.
• Implements a updated approach to "cumulation": exporters can take into account materials from non‑party countries with which both Canada and Ukraine have free trade agreements when deciding if a product qualifies as originating under CUFTA (this change is described in the government’s summary).
• Works alongside minor amendments to the Canadian International Trade Tribunal Procurement Inquiry Regulations so government procurement rules match the modernized CUFTA.

Who's affected#

• Businesses that export or import goods between Canada and Ukraine and want to claim preferential tariff treatment.
• Manufacturers in Canada or Ukraine that use inputs from third countries that have FTAs with both Canada and Ukraine (because of the updated cumulation rule).
• Government agencies that administer trade rules, especially the Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal (CITT).
• According to the government analysis, most goods already qualify and there is no expected direct cost to importers or increased burden on small businesses.

Why it matters#

• It updates and clarifies which products can receive lower or zero tariffs under the modernized CUFTA. That can lower costs for traders and manufacturers who meet the origin rules.
• The cumulation change may let some products count materials from certain third countries when proving origin, which can make it easier for supply chains that cross multiple trade agreements.
• It aligns Canada’s customs and procurement rules with the updated treaty text so government buying and border processes reflect the modernized agreement.
• The exact effective date depends on when the related domestic implementing law comes into force; the regulation text links its start date to section 9 of that Act.