Modernized Canada–Chile Rules of Origin

Summary#

The item is the final CCFTA Rules of Origin Regulations (SOR/2021-144). It replaces the old Canada–Chile rules of origin rules and brings the updated origin rules from the Canada–Chile Free Trade Agreement into Canadian law. The regulation was registered on June 17, 2021, published July 7, 2021, and comes into force October 15, 2021 (the 120th day after registration).

What it does#

• Puts selected parts of the Canada‑Chile Free Trade Agreement (CCFTA) into Canadian law by listing the CCFTA provisions that have the force of law (for example, Articles D-01 to D-03, Article D-04(1), Articles D-05 to D-13, Articles D-16 and D-17, and Annexes D-01, D-03.1 and D-03.2).
• Repeals the older CCFTA rules of origin regulation (SOR/97-340) and replaces it with the modernized text.
• Implements updated, modernized rules of origin that:
  • align with more recent Harmonized System (HS) numbering and language, and
  • give certain producers more flexibility about where they can source inputs while still qualifying for preferential tariffs.
• Notes (in the regulatory statement) that a separate instrument removes the now‑obsolete NAFTA rules of origin regulations after CUSMA came into force.
• Assigns ongoing monitoring and customs administration responsibilities to the Canada Border Services Agency (CBSA).

Who's affected#

• Importers who bring goods into Canada from Chile and want to claim preferential tariff treatment under the CCFTA.
• Manufacturers and suppliers in Canada and Chile whose products or inputs must meet rules of origin to qualify for lower duties.
• Customs brokers, freight forwarders and other businesses that prepare or file origin documentation.
• The CBSA and trade officials who apply and explain the new rules.
  If it’s unclear whether a particular product qualifies under the new rules, importers and producers will need to check the detailed origin criteria or get advice.

Why it matters#

• If a good meets the updated rules of origin, importers can pay lower duties when bringing it in from Chile. That can lower costs for businesses and consumers.
• The modernization clarifies and updates technical parts of the rules (HS codes and origin tests). That can make it easier for some producers to qualify their goods.
• The change keeps Canada’s domestic rules aligned with the amended international agreement. Without these regulations, businesses could not rely on the updated CCFTA rules when importing.
• The government says the update does not add new administrative burdens for businesses.