Canada-Chile Free Trade Agreement

Impact of 2002 Harmonized System Amendments to Rules of Origin

Technical Rectifications to Uniform Regulations for Chapter D

Part III, Regional Value Content

Subsection 6(25), Example 7: in line 1, replace “example 10” with “example 6”, as follows:

Example 7: Subsection 6(12)

Given the same facts as in example 6, except that Producer A determines that $6,000 of the gain on currency conversion and $7,000 of the loss on currency conversion are related to the purchase of non-originating materials used in the production of Good A. The total cost of Good A is $45,000, before taking into account the $1,000 net loss on currency conversion related to the production of Good A. The total cost of Good A is therefore $46,000. The $1,000 net loss is not included in the value of non-originating materials under subsections 7(1) and (2).

Part VI, Section 14, Transshipment

Subsection (3): replace “8542.12 through 8542.50” with “8542.10 through 8542.70”, as follows:

(3) Subsection (1) does not apply with respect to a good of any of subheadings 8541.10 through 8541.60 and 8542.10 through 8542.70 where any further production or other operation that that good undergoes outside the territories of the CCFTA countries does not result in a change in the tariff classification of the good to a subheading outside subheadings 8541.10 through 8542.90.

Schedule IV, List of Tariff Provisions for Purposes of Section 9

Replace “4009.50” with “4009.12, 4009.22, 4009.32 and 4009.42”.

Schedule VII, Value of Materials

Subparagraph 5(1)(a)(ii): add “packaging materials and” immediately after “the costs of”, as follows:

5. (1) In determining the transaction value of the material, the following shall be added to the price actually paid or payable:

(a)   to the extent that they are incurred by the producer with respect to the material being valued and are not included in the price actually paid or payable,

(i) commissions and brokerage fees, except buying commissions, and
(ii) the costs of packaging materials and containers which, for customs purposes, are classified with the material under the Harmonized System;

Schedule X, Methods of Comparison for Purposes of Subsection 6(14) (Non-allowable Interest Costs)

Section 3, paragraph (a) of the definition of “yield on national government debt obligations”: replace “Centrale” with “Central”, as follows:

(a) where the producer's contract is expressed in pesos and there are national government debt obligations of the same maturity as that of the producer's contract or, in the case of a variable-rate contract, as that of the interest rate adjustment period of the producer's contract, the interest rate for World Trade Atlas Pagaré Descontable del Banco Central set out in Sintesis Monetaria y Financiera of the Banco Central de Chile.