Annex 311: Country of Origin Marking
1. The Parties shall establish by January 1, 1994, rules for
determining whether a good is a good of a Party ("Marking Rules")
for purposes of this Annex, Annex 300-B and Annex 302.2, and for
such other purposes as the Parties may agree.
2. Each Party may require that a good of another Party, as determined
in accordance with the Marking Rules, bear a country of origin marking,
when imported into its territory, that indicates to the ultimate
purchaser of that good the name of its country of origin.
3. Each Party shall permit the country of origin marking of a good of another Party to be indicated in English, French or Spanish, except that a Party may, as part of its general consumer information measures, require that an imported good be marked with its country of origin in the same manner as prescribed for goods of that Party.
4. Each Party shall, in adopting, maintaining and applying any measure
relating to country of origin marking, minimize the difficulties, costs and inconveniences that the measure may cause to the commerce and industry of the other Parties.
5. Each Party shall:
(a) accept any reasonable method of marking of a good of another Party, including the use of stickers, labels, tags or paint, that ensures that the marking is conspicuous, legible and sufficiently permanent;
(b) exempt from a country of origin marking requirement a good of another Party that
(i) is incapable of being marked,
(ii) cannot be marked prior to exportation to the territory of another
Party without causing injury to the goods,
(iii) cannot be marked except at a cost that is substantial in relation to its customs value so as to discourage its exportation to the territory of the Party,
(iv) cannot be marked without materially impairing its function or substantially detracting from its appearance,
(v) is in a container that is marked in a manner that will reasonably indicate the good's origin to the ultimate purchaser,
(vi) is a crude substance,
(vii) is imported for use by the importer and is not intended for sale in the form in which it was imported,
(viii) is to undergo production in the territory of the importing Party by the importer, or on its behalf, in a manner that would result in the good becoming a good of the importing Party under the Marking Rules,
(ix) by reason of its character, or the circumstances of its importation, the ultimate purchaser would reasonably know its country of origin even though it is not marked,
(x) was produced more than 20 years prior to its importation,
(xi) was imported without the required marking and cannot be marked
after its importation except at a cost that would be substantial in
relation to its customs value, provided that the failure to mark the
good before importation was not for the purpose of avoiding compliance with the requirement,
(xii) for purposes of temporary duty-free admission, is in transit or in bond or otherwise under customs administration control,
(xiii) is an original work of art, or
(xiv) is provided for in subheading 6904.10, or heading 8541 or
6. Except for a good described in subparagraphs 5(b)(vi), (vii), (viii),
ix), (x), (xii), (xiii) and (xiv), a Party may provide that, wherever
a good is exempted under subparagraph 5(b), its outermost usual container
shall be marked so as to indicate the country of origin of the good it
7. Each Party shall provide that:
(a) a usual container imported empty, whether or not disposable, shall
not be required to be marked with its own country of origin, but the
container in which it is imported may be required to be marked with
the country of origin of its contents; and
(b) a usual container imported filled, whether or not disposable,
(i) shall not be required to be marked with its own country of origin, but
(ii) may be required to be marked with the country of origin of its
contents, unless the contents are marked with their country of origin
and the container can be readily opened for inspection of the
contents, or the marking of the contents is clearly visible through the
8. Each Party shall, wherever administratively practicable, permit an
importer to mark a good of a Party subsequent to importation but prior
to release of the good from customs control or custody, unless there
have been repeated violations of the country of origin marking
requirements of the Party by the same importer and that importer
has been previously notified in writing that such good is required
to be marked prior to importation.
9. Each Party shall provide that, except with respect to importers
that have been notified under paragraph 8, no special duty or penalty
shall be imposed for failure to comply with country of origin marking
requirements of that Party, unless the good is removed from customs
custody or control without being properly marked, or a deceptive marking
has been used.
10. The Parties shall cooperate and consult on matters related to this
Annex, including additional exemptions from a country of origin marking
requirement, in accordance with Article 513 (Customs Procedures -
Working Group and Customs Subgroup).
11. For purposes of this Annex:
Annex 312.2: Wine and Distilled Spirits
conspicuous means capable of being easily seen with normal
handling of the good or container;
customs value means the value of a good for purposes of
levying duties of customs on an imported good;
legible means capable of being easily read;
sufficiently permanent means capable of remaining in place
until the good reaches the ultimate purchaser, unless deliberately
the form in which it was imported means the condition of
the good before it has undergone one of the changes in tariff
classification described in the Marking Rules;
ultimate purchaser means the last person in the territory
of an importing Party that purchases the good in the form in which
it was imported; such purchaser need not be the last person that
will use the good; and
usual container means the container in which a good will
ordinarily reach its ultimate purchaser.
Section A - Canada and the United States
Section B - Canada and Mexico
As between Canada and the United States, any measure related
to the internal sale and distribution of wine and distilled spirits,
other than a measure covered by Article 312(1) or 313, shall be
governed under this Agreement exclusively in accordance with the
relevant provisions of the Canada - United States Free Trade Agreement,
which for this purpose are hereby incorporated into and made a part
of this Agreement.
As between Canada and Mexico:
1. Except as provided in paragraphs 3 through 6, in respect of
any measure related to the internal sale and distribution of wine
and distilled spirits, Article 301 shall not apply to:
(a) a non-conforming provision of any existing measure;
(b) the continuation or prompt renewal of a non-conforming provision
of any existing measure; or
(c) an amendment to a non-conforming provision of any existing measure to the extent that the amendment does not decrease its conformity with Article 301.
2. The Party asserting that paragraph 1 applies to one of its measures shall have the burden of establishing the validity of such assertion.
3. (a) Any measure related to the listing of wine and distilled spirits of the other Party shall:
(i) conform with Article 301,
(ii) be transparent, non-discriminatory and provide for prompt
decision on any listing application, prompt written notification
of such decision to the applicant and, in the case of a negative
decision, provide for a statement of the reason for refusal,
(iii) establish administrative appeal procedures for listing
decisions that provide for prompt, fair and objective rulings,
(iv) be based on normal commercial considerations,
(v) not create disguised barriers to trade, and
(vi) be published and made generally available to persons of the other
(b) Notwithstanding paragraph 3(a) and Article 301, and provided that
listing measures of British Columbia otherwise conform with paragraph
3(a) and Article 301, automatic listing measures in the province of
British Columbia may be maintained provided they apply only to existing
estate wineries producing less than 30,000 gallons of wine annually
and meeting the existing content rule.
4. (a) Where the distributor is a public entity, the entity may charge
the actual cost-of-service differential between wine or distilled spirits
of the other Party and domestic wine or distilled spirits. Any such
differential shall not exceed the actual amount by which the audited
cost of service for the wine or distilled spirits of the exporting
Party exceeds the audited cost of service for the wine or distilled
spirits of the importing Party.
(b) Notwithstanding Article 301, Article I (Definitions) except for the
definition of "distilled spirits", Article IV.3 (Wine), and Annexes A, B,
and C, of the Agreement between Canada and the European Economic
Community concerning Trade and Commerce in Alcoholic Beverages, dated February 28, 1989, shall apply with such changes as the circumstances may require.
(c) All discriminatory mark-ups on distilled spirits shall be
eliminated immediately on the date of entry into force of this Agreement.
Cost-of-service differential mark-ups as described in subparagraph (a)
shall be permitted.
(d) Any other discriminatory pricing measure shall be eliminated on the
date of entry into force of this Agreement.
5. (a) Any measure related to distribution of wine or distilled spirits
of the other Party shall conform with Article 301.
(b) Notwithstanding subparagraph (a), and provided that distribution
measures otherwise ensure conformity with Article 301, a Party may
(i) maintain or introduce a measure limiting on-premise sales by a
winery or distillery to those wines or distilled spirits produced on its
(ii) maintain a measure requiring existing private wine store outlets in the provinces of Ontario and British Columbia to discriminate in favor of wine of those provinces to a degree no greater than the discrimination required by such existing measure.
(c) Nothing in this Agreement shall prohibit the Province of Quebec from requiring that any wine sold in grocery stores in Quebec be bottled in Quebec, provided that alternative outlets are provided in Quebec for the sale of wine of the other Party, whether or not such wine is bottled in Quebec.
6. Unless otherwise specifically provided in this Annex, the Parties retain their rights and obligations under the GATT and agreements negotiated under the GATT.
7. For purposes of this Annex:
wine includes wine and wine-containing beverages.
Annex 313: Distinctive Products
1. Canada and Mexico shall recognize Bourbon Whiskey and Tennessee
Whiskey, which is a straight Bourbon Whiskey authorized to be produced
only in the State of Tennessee, as distinctive products of the United
States. Accordingly, Canada and Mexico shall not permit the sale of
any product as Bourbon Whiskey or Tennessee Whiskey, unless it has been
manufactured in the United States in accordance with the laws and
regulations of the United States governing the manufacture of Bourbon
Whiskey and Tennessee Whiskey.
Annex 314: Export Taxes
2. Mexico and the United States shall recognize Canadian Whisky as
a distinctive product of Canada. Accordingly, Mexico and the United
States shall not permit the sale of any product as Canadian Whisky,
unless it has been manufactured in Canada in accordance with the laws
and regulations of Canada governing the manufacture of Canadian Whisky
for consumption in Canada.
3. Canada and the United States shall recognize Tequila and Mezcal
as distinctive products of Mexico. Accordingly, Canada and the
United States shall not permit the sale of any product as Tequila
or Mezcal, unless it has been manufactured in Mexico in accordance
with the laws and regulations of Mexico governing the manufacture of
Tequila and Mezcal. This provision shall apply to Mezcal, either
on the date of entry into force of this Agreement, or 90 days after
the date when the official standard for this product is made obligatory by the Government of Mexico, whichever is later.
1. Mexico may adopt or maintain a duty, tax or other charge
on the export of those basic foodstuffs set out in paragraph 4, on
their ingredients or on the goods from which such foodstuffs are
derived, if such duty, tax or other charge is adopted or maintained
on the export of such goods to the territory of all other Parties,
and is used:
(a) to limit to domestic consumers the benefits of a domestic food
assistance program with respect to such foodstuff; or
(b) to ensure the availability of sufficient quantities of such
foodstuff to domestic consumers or of sufficient quantities of its
ingredients, or of the goods from which such foodstuffs are derived,
to a domestic processing industry, when the domestic price of such
foodstuff is held below the world price as part of a governmental
stabilization plan, provided that such duty, tax, or other charge
(i) does not operate to increase the protection afforded to such
domestic industry, and
(ii) is maintained only for such period of time as is necessary to
maintain the integrity of the stabilization plan.
2. Notwithstanding paragraph 1, Mexico may adopt or maintain a duty,
tax or other charge on the export of any foodstuff to the territory
of another Party if such duty, tax or other charge is temporarily
applied to relieve critical shortages of that foodstuff. For purposes
of this paragraph, "temporarily" means up to one year, or such longer
period as the Parties may agree.
3. Mexico may maintain its existing tax on the export of goods provided for under tariff item 4001.30.02 of the Tariff Schedule of the
General Export Duty Act ("Tarifa de la Ley del Impuesto
General de Exportación") for up to 10 years after the date of
entry into force of this Agreement.
4. For purposes of paragraph 1, "basic foodstuffs" means: