Country Of Origin For Customs Purposes

Determining country of origin

From a customs perspective, determining the country of origin of imported goods are crucial for several reasons, including:

• determining whether imported goods are entitled to most-favoured-nation (MFN) or preferential tariff treatment;
• determining whether imported goods are subject to tariffs or safeguard measures (e.g., anti-dumping or countervailing duties);
• determining whether imported goods are subject to discriminatory quantitative restrictions or tariff rate quotas; and
• fulfilling any product labelling and marking requirements for imported goods.

Canadian exporters to the U.S. typically seek to affirm the Canadian origin of their exported goods, as such goods would benefit from preferential tariff treatment (that is lower customs duty rates) under Canada-United States-Mexico Agreement (CUSMA). The same is typically true of American goods coming into Canada.