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CBSA Memorandum on Canada-Costa Rica Free Trade AgreementWednesday, July 09, 2014 > 10:38:29
Canada–Costa Rica Free Trade Agreement (CCRFTA): Costa Rica Free Zone Regime
This memorandum contains the regulations and information for determining whether CCRFTA originating goods imported from Costa Rica have received the benefits of the Costa Rica Free Zone Regime, and whether such goods are entitled to the Costa Rica preferential tariff treatment.
CCRFTA Non-entitlement to Preference Regulations
Guidelines and General Information
1. In this memorandum, any reference that is made to:
“Costa Rica Free Zone regime”
is a system that has the effect of subsidizing companies on the condition of export of their goods.
means any area within Costa Rica where companies are provided with the benefits of the Costa Rica Free Zone regime including income tax exemptions and subsidies.
2. The CCRFTA Non-entitlement to Preference Regulations establishes that listed goods, which although originating in accordance with the CCRFTA Rules of Origin Regulations, are deemed not to originate and are, therefore, not entitled to the Costa Rica Tariff (CRT) rate of customs duty if they have undergone operations in a specified Costa Rica Free Zone.
3. Appendix A sets out the geographic areas, i.e., a list of companies that receive the benefits of the Costa Rica Free Zone regime and, thus, are not entitled to the CRT. Companies listed in Appendix A will remain listed until such time as they no longer receive the benefits of the Costa Rica Free Zone regime. Appendix A will be revised and modified, as required, as a result of ongoing consultations with Foreign Affairs, Trade and Development Canada and Costa Rica.
4. Where CCRFTA originating goods are classified under any of the tariff item numbers set out in Appendix B, and the goods have undergone operations in a geographic area as listed in Appendix A, such goods are not entitled to the CRT. In these instances, the Most-Favoured Nation (MFN) rate or, if applicable, the General Preferential Tariff (GPT) is applied.
5. Where originating goods cited in Appendix B have not undergone operations in a geographic area listed in Appendix A, such goods may be entitled to the CRT only if the goods originate in accordance with the CCRFTA Rules of Origin Regulations. Further information concerning the rules of origin can be found in Memorandum D11-5-3, Canada–Costa Rica Free Trade Agreement (CCRFTA) – Rules of Origin. Importers must be in possession of a valid CCRFTA Certificate of Origin (form B246) when claiming the CRT.
6. Importers who possess a Certificate of Origin must ensure that the goods they have imported have not undergone operations in a geographic area listed in Appendix A. The Certificate of Origin contains fields where exporters and/or producers in Costa Rica must indicate whether they have benefited from the Costa Rica Free Zone regime. Further information concerning the Certificate of Origin can be found in Memorandum D11-4-2, Proof of Origin, and Memorandum D11-4-14, Certification of Origin.
7. Importers are encouraged to regularly consult Appendix A and Appendix B in conjunction with the Certificate of Origin to ensure that their imported goods continue to meet the CCRFTA Rules of Origin Regulations and remain entitled to the CRT. Conversely, previously non-qualifying goods could become qualifying if a company previously listed in Appendix A ceases to receive the benefits of the Costa Rica Free Zone regime.
8. The date of accounting of the goods on Form B3-3, Canada Customs Coding Form, will be the date considered when determining the entitlement of the CRT for companies cited in Appendix A and the goods listed in Appendix B.
9. All goods imported from Costa Rica are still entitled to the GPT rate of duty only if the goods meet the rules set out in Memorandum D11-4-4, Rules of Origin Respecting the General Preferential Tariff and Least Developed Country Tariff. The geographic area restrictions do not apply to the GPT.
10. This memorandum will be continually updated to accurately reflect any changes to geographic areas and tariff item numbers in Appendix A and Appendix B.