Canada's Proposals for the FTAA Agreement 
FTAA Negotiating Groups - Canadian Written Submissions 

1. Topics to be Included:
   
   The following topics, as listed in Table 1 of the document Main Characteristics of Rules of Origin in the Americas, should be considered for inclusion in the chapter on rules of origin because they all serve to define the nature of the goods that may be considered originating in the territory of a Party. 
   
   The topics will define the components of a product which may originate outside the territory of a Party, components that must originate within the territory of a Party and the nature and degree of processing that must be carried out in the territory of a Party.
   
   It is recognized that as part of the negotiation process, some elements may not be necessary.
   
   
   1. General Criteria for the Qualification of Goods as Originating
      
      1.1 Goods made entirely in the territory of one or more of the Parties from originating materials
      1.2 Goods wholly obtained or produced in the territory of one or more of the Parties
      1.3 Goods made from non-originating materials
      1.4 National or regional value content
      1.6 Operations and practices that do not confer origin 
      
      
   2. Specific Requirements of Origin
      
      2.3 Admission of Non-originating Materials (note. tariff shift and other alternative methods such as regional value content test) 
      
      
   3. Qualification of Specific Goods
      
      3.1 Fungible materials and goods
      3.1.1 Definition
      3.1.2 Qualification of origin
      3.2 Origin of sets and assortments
      3.3 Accessories, spare parts and tools
      3.4 Packaging materials and containers for retail sale
      3.5 Packing materials and containers for shipping
      3.6 Indirect materials used in production
      3.6.1 Definitions
      3.6.2 Consideration as originating 
      
      
   4. Treatment of Accumulation
      
      
   5. Direct Shipment and Transshipment
      
      
   6. Origin of Production in Free Trade Zones and Free Zones
      
      
   7. General Provisions
      
      13.1 Scope
      13.2 Basis of Tariff Classification
      13.3 Valuation Criteria 
      
      
2. Topics to be included in Customs Procedures:
   
   The following topics, as listed in Table 1 of the document "Main Characteristics of Rules of Origin in the Americas", are not considered integral for the chapter on rules of origin but rather should be included in the chapter on customs procedures.
   
   The topics, related to the administration of rules of origin, do not serve to define the nature of the goods that may be considered originating in the territory of a Party. The topics will establish procedures, mechanisms and requirements through which compliance with the rules of origin established in the agreement will be administered by the customs administrations.
   
   
   8. Specific Requirements of Origin
      
      2.2 Determination and Revision
      
      
   9. Declaration and Certification
      
      10.1 Declaration and Certification
      10.2 Obligations Relating to Importations
      10.3 Obligations Relating to Exportations
      10.4 Accounting Records and Maintenance of Documents
      10.5 Certifying Entries
      10.6 Verification of Origin 
      
      
   10. Administrative Penalties
       
       
   11. The Administration of Rules of Origin
       
       12.1 Adoption of the Rules
       12.2 Incorporation of Modifications
       12.3 Competent Organs
       12.4 Advance Rulings
       12.5 Review and Appeal 
       
       
   12. The Format used for Certification
       
       
3. Other topics not to be included
   
   The following topics, as listed in Table 1 of the document "Main Characteristics of Rules of Origin in the Americas", are not considered necessary for inclusion in the chapter on rules of origin. The rationale is provided under the topics.
   
   
   13. Differential Treatment
       
       9.1 General Principle
       9.2 Proportion of Non-originating Materials 
       
       The application of differential treatment, as general provisions within the rules of origin chapter, is not considered as an appropriate approach to address country-specific concerns within the framework of a preferential trade agreement. A preferential trade agreement should not include a provision on differential treatment where such a provision would, in fact, create different rules of origin for the same goods originating in different Parties. 
       
       The negotiation of specific rules and other general provisions (e.g., tariff shift, regional value content and accumulation) provide the opportunity for delegations to address such issues.
       
       
   14. General Criteria for the Qualification of Goods as Originating
       
       1.5 De Minimis
       
       It may be more appropriate to consider this topic pending further discussions on the general approach and the outcome of the specific rules.
       
       
       
   15. Specific Requirements of Origin
       
       2.1 Concept and Application
       No need for this provision.
       
       2.4 Originating goods not Produced in a territory of the Parties 
       
       Further information is required for the consideration of this topic.
       
       2.5 Maximum Use of Originating Materials or Inputs
       
       The concept of a maximum amount of originating materials or inputs is not understood. Other topics listed in Table 1, related to general and specific rules of origin, would apply to the treatment of non-originating materials and inputs.
       
       
   16. Concept of Materials
       
       Further information is required for the consideration of this topic.
       
       
   17. Special Provisions for Different Categories of Goods
       
       Further information is required for the consideration of this topic.
       
       
   18. General Provisions
       
       13.4 Cost Data
       
       This provision would prejudge approach to rules of origin discussion and therefore may be considered for inclusion later in the process.

Source: Canadian Department of Foreign Affairs and International Trade