CICEPA Rules of Origin

Summary#

The CICEPA Rules of Origin Regulations (SOR/2026-124) set out how goods from Indonesia qualify for the tariff breaks negotiated in the Canada–Indonesia Comprehensive Economic Partnership Agreement. The rules say which parts of the agreement count as Canadian law and explain when imported items — including some non-commercial goods — can get preferential tariff treatment.

What it does#

• Makes Articles 3.1 to 3.14 and Annex 3-B of the Canada–Indonesia Comprehensive Economic Partnership Agreement part of Canadian law for the purpose of tariffs.
• Sets the rules of origin that determine when an imported good from Indonesia is treated as “originating” and eligible for lower or eliminated tariffs.
• Says non-commercial goods acquired in Indonesia that are marked “made in Indonesia” (or not marked otherwise) are considered originating and eligible for preferences when brought into Canada.
• Allows goods that pass through third countries to keep their preferential status if they remain under customs control while outside Indonesia.
• Gives the Canada Border Services Agency responsibility to administer the tariff preferences and says the agency will publish a customs notice with more details.

Who's affected#

• Canadian importers who buy goods from Indonesia and want to claim reduced tariffs.
• Canadian manufacturers that use Indonesian parts or materials as inputs.
• Travellers or individuals bringing non-commercial items from Indonesia into Canada.
• Canada Border Services Agency, which will apply and explain the rules.
• Small businesses that import from Indonesia — the government says these regulations do not add new administrative burdens and could help them pay lower duties.

Why it matters#

• It lets eligible imports from Indonesia enter Canada with lower or no tariffs, which can reduce costs for importers, downstream manufacturers, and possibly consumers.
• Clear rules of origin make it easier for businesses to know when they qualify for the tariff cuts the agreement promises.
• These regulations are part of implementing Canada’s wider trade deal with Indonesia, a market of about 287 million people and an economy of about $2.0 trillion, signed in September 2025 (negotiations concluded in December 2024).
• The regulations will come into force when section 40 of the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act comes into force; if the regulations were registered after that day, they come into force on the registration date. The Implementation Act received royal assent on May 6, 2026 and the regulations were registered on June 12, 2026. The Canada Border Services Agency will issue more guidance for importers.