CHFTA customs rules added to law

Summary#

These final regulations—Regulations Amending Certain Regulations Made Under the Customs Act (CHFTA) (SOR/2023-152)—put the customs procedures from the Canada‑Honduras Free Trade Agreement (CHFTA) into Canada’s domestic rules. They are treated as having come into force on October 1, 2014, the date the CHFTA started to apply.

What it does#

• Amends several existing regulations to add Honduras/CHFTA rules, and creates a new regulation that sets out how origin verifications are done.
• Changes made to (first mention in this section is bold):
  • Exporters’ and Producers’ Records Regulations — adds the CHFTA advance‑ruling article to the definition of “advance ruling.”
  • Free Trade Agreement Advance Rulings Regulations — lets producers in Honduras apply for advance rulings and adds CHFTA chapters and agreed interpretations as grounds to change or revoke rulings.
  • Certification of Origin of Goods Exported to a Free Trade Partner Regulations — allows exporter certificates based on a producer’s voluntary certificate for goods going to Honduras and permits certificates in English, French or Spanish.
  • Tariff Item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations — adds Honduras to the list of partners for which proof of export for returned goods (sent abroad for repair/alteration) is required.
  • Refund of Duties Regulations — allows refunds of duties for eligible goods imported from Honduras when a preferential‑tariff claim was not made at import.
  • Proof of Origin of Imported Goods Regulations — adds CHFTA to the list of FTAs and allows CHFTA Certificates of Origin in English, French or Spanish; sets the small‑value thresholds for exemption at $2,500 (NAFTA) and $1,600 (CCFTA/CCRFTA/CPFTA/CCOFTA/CPAFTA/CHFTA) where applicable.
  • New CHFTA Verification of Origin Regulations — establishes how customs officers will carry out verifications of origin for goods claiming CHFTA preferential treatment.
• The Canada Border Services Agency (CBSA) has been operating under these rules since the CHFTA took effect; the regulations formalize that practice in law.

Who's affected#

• Importers, exporters and producers who trade between Canada and Honduras, especially those using CHFTA preferential tariff treatment.
• Customs brokers, freight forwarders and businesses that prepare or rely on Certificates of Origin and related customs documents.
• Canadian firms importing goods back after repair or alteration abroad that need to show proof of export to Honduras.
• The Canada Border Services Agency (CBSA) and its officers, who will enforce and use the formalized procedures.
• The source says no other groups are expected to be affected; if that is unclear for a particular business, they should check with CBSA or a customs advisor.

Why it matters#

• This makes the CHFTA customs rules part of Canadian law, so businesses know the legal basis for claiming duty reductions or refunds for Honduran trade.
• It clarifies who can apply for advance rulings, how origin may be proven, what languages are acceptable for origin documents (English, French or Spanish), and how origin verifications will be done.
• The retroactive effective date (October 1, 2014) means these rules are treated as having applied since the CHFTA started; the CBSA has already been applying them.
• According to the regulatory analysis, there are no new costs for businesses because these procedures were already in use since the CHFTA’s implementation.