Why Declaring the Correct Country of Origin Matters

Accurate country of origin information is one of the most important elements of your customs documentation. Customs agencies rely on this detail to determine duty and tax rates, assess eligibility for trade agreements, and decide whether shipments require further inspection. Incorrect or vague declarations can result in delays, unexpected charges, penalties, or even refusal of entry. Providing the correct country of origin ensures smoother cross border movement, faster clearance, and full regulatory compliance.


Why Country of Origin Matters

When preparing customs documents, it’s essential to declare the correct country of origin.
This impacts:

  • Duty and tax rates

  • Eligibility for trade agreements (e.g., CUSMA/USMCA)

  • Labelling and marking requirements at the border

  • Risk screening and admissibility


General Definition

The country of origin is defined as the country where a product was:

  • Manufactured or produced, or

  • Last subjected to a substantial transformation that changed its name, character, or intended use

This determination establishes where the goods are considered to be made for customs and trade purposes.


Country of Origin Rules in Canada

For imports into Canada, rules are governed by the Marking of Imported Goods Regulations (SOR/94-10) and additional program specific rules of origin under tariff treatments or trade agreements such as CUSMA.


Important considerations:

  • Goods assembled in Canada from foreign components may qualify as Canadian origin only if they meet the required rule, such as a tariff shift or regional value content under CUSMA.

  • Simple assembly, repackaging, kitting, or minor finishing does not change country of origin.

  • Goods must be marked with their true origin, clearly and permanently.


Country of Origin Rules in the United States

U.S. Customs and Border Protection applies the substantial transformation test:

  • A product’s origin changes only when the processing results in a new and different article of commerce that has a new name, character, or use.

  • Markings must be permanent, legible, and in English, identifying the accurate country of origin.


Key Takeaway

For customs purposes, the country of origin is not the country the shipment is sent from. It is the country where the goods were made or last underwent a substantial transformation according to CBSA or CBP regulations. Declaring this accurately helps your shipments clear faster, prevents costly adjustments, and supports compliant cross border trade.


References


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