1. The Parties continue the Committee on Trade in Goods and Rules of Origin established under the 2017 Agreement composed of government representatives of each Party.
2. The Committee shall meet at the request of a Party or the Joint Commission to consider any matter arising under this Chapter, Chapter 3 (Rules of Origin and Origin Procedures), Chapter 4 (Trade Facilitation) or Chapter 5 (Trade Remedies) but not less than once every two years unless otherwise decided by the Parties.
3. The Committee's functions shall include:
(a) promoting trade in goods between the Parties, including through discussions on accelerating tariff elimination under this Agreement and other issues as appropriate;
(b) promptly addressing barriers to trade in goods between the Parties, especially those related to the application of non-tariff measures, and, if appropriate, referring those matters to the Joint Commission for its consideration;
(c) recommending to the Joint Commission a modification of or addition to this Chapter, Chapter 3 (Rules of Origin and Origin Procedures), Chapter 4 (Trade Facilitation), Chapter 5 (Trade Remedies), or any other provision of this Agreement related to the Harmonized System; and
(d) considering any other matter referred to it by a Party relating to the implementation and administration by the Parties of this Chapter, Chapter 3 (Rules of Origin and Origin Procedures), Chapter 4 (Trade Facilitation), or Chapter 5 (Trade Remedies).
4. The Parties continue the Sub-Committee on Agriculture established under the 2017 Agreement that shall:
(a) except as otherwise provided in this Chapter, meet within 60 days of a request by a Party;
(b) provide a forum for the Parties to discuss issues resulting from the implementation of this Agreement for agricultural goods;
(c) refer to the Committee any matter under sub-paragraph (b) on which it has been unable to reach an understanding; and
(d) report to the Committee for its consideration an understanding under this paragraph.
5. At the request of a Party, the Parties shall convene a meeting of their officials responsible for customs, immigration, inspection of food and agricultural products, border inspection facilities, or regulation of transportation, as appropriate, for the purpose of addressing issues related to movement of goods through the Parties' ports of entry.
Chapter 3. Rules of Origin and Origin Procedures
Section A. General Provisions
Article 3.1. Definitions
For the purposes of this Chapter:
aquaculture means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding or protection from predators;
classified means the classification of a product under a particular heading or subheading of the Harmonized System;
customs authority means any governmental authority that is responsible under the law of a Party for the administration and application of customs legislation;
customs value means the value as determined in accordance with the Customs Valuation Agreement;
determination of origin means a determination as to whether a product qualifies as an originating product in accordance with this Chapter;
exporter means an exporter located in the territory of a Party;
identical originating products means products that are the same in all respects, including physical characteristics, quality and reputation, irrespective of minor differences in appearance that are not relevant to a determination of origin of those products under this Chapter;
importer means an importer located in the territory of a Party;
material means any ingredient, component, part or product that is used in the production of another product;
net weight of the non-originating material means the weight of the material as it is used in the production of the product, not including the weight of the material's packaging;
net weight of the product means the weight of a product not including the weight of packaging;
producer means a person who engages in any kind of working or processing, including such operations as growing, mining, raising, harvesting, fishing, trapping, hunting, manufacturing, assembling or disassembling a product;
product means the result of production, even if it is intended for use as a material in the production of another product;
production means any kind of working or processing, including such operations as growing, mining, raising, harvesting, fishing, trapping, hunting, manufacturing, assembling or disassembling a product;
transaction value or ex-works price of the product means the price paid or payable to the producer of the product at the place where the last production was carried out, and must include the value of all materials. If there is no price paid or payable or if it does not include the value of all materials, the transaction value or ex-works price of the product:
(a) must include the value of all materials and the cost of production employed in producing the product, calculated in accordance with generally accepted accounting principles; and
(b) may include amounts for general expenses and profit to the producer that can be reasonably allocated to the product.
Any internal taxes which are, or may be, repaid when the product obtained is exported are excluded. Any costs incurred subsequent to the product leaving the place of production, such as transportation, loading, unloading, handling or insurance, are to be excluded from the calculation of the transaction value or ex-works price of the product; and
value of non-originating materials means the customs value of the material at the time of its importation into a Party, as determined in accordance with the Customs Valuation Agreement. The value of the non-originating material must include any costs incurred in transporting the material to the place of importation, such as transportation, loading, unloading, handling or insurance. If the customs value is not known or cannot be ascertained, the value of non-originating materials will be the first ascertainable price paid for the materials in Canada or Ukraine.
Section B. Rules of Origin
Article 3.2. General Requirements
1. For the purposes of this Agreement, a product is originating in the Party where the last production took place if, in the territory of a Party or in the territory of both of the Parties in accordance with Article 3.3, it:
(a) has been wholly obtained within the meaning of Article 3.4;
(b) has been produced exclusively from originating materials, including those materials considered under Article 3.5(2); or
(c) has undergone sufficient production within the meaning of Article 3.5.
2. Except as provided for in Articles 3.3(3) and 3.3(4), the conditions set out in this Chapter relating to the acquisition of originating status must be fulfilled without interruption in the territory of one or both of the Parties.
Article 3.3. Cumulation of Origin
1. A product that originates in a Party is considered originating in the other Party when used as a material in the production of a product there.
2. An exporter may take into account production carried out on a non-originating material in the other Party for the purposes of determining the originating status of a product.
3. Subject to paragraph 4, where, as permitted by the WTO Agreement, each Party has a free trade agreement with the same non-Party, a material of that non-Party may be taken into consideration by the exporter when determining whether a product is originating under this Agreement.
4. A Party shall give effect to paragraph 3 upon agreement by the Parties on the applicable conditions.
Article 3.4. Wholly Obtained Products
The following shall be considered as wholly obtained in a Party:
(a) mineral products and other non-living natural resources extracted or taken from the territory of a Party;
(b) vegetables, plants and plant products harvested or gathered in the territory of a Party;
(c) live animals born and raised in the territory of a Party;
(d) products:
(i) obtained from live animals in the territory of a Party;
(ii) from slaughtered animals born and raised in the territory of Party;
(e) products:
(i) obtained by hunting, trapping or fishing conducted in the territory of a Party;
(ii) of aquaculture raised in the territory of Party;
(f) fish, shellfish and other marine life taken from the sea, seabed, ocean floor or the subsoil outside the territory of the Parties by a vessel registered, recorded or listed with a Party, and entitled to fly its flag;
(g) products made aboard factory vessels exclusively from products referred to in sub-paragraph 1(f), provided that such factory vessels are registered, recorded or listed with a Party, and entitled to fly its flag;
(h) mineral products and other non-living natural resources, taken or extracted from the seabed, subsoil or ocean floor of the Area as defined in Article 1(1) of UNCLOS by a Party or a person of a Party, provided that Party or person of a Party has rights to exploit that seabed, subsoil or ocean floor;
(i) raw materials recovered from used products collected in the territory of a Party, provided that these products are fit only for such recovery;
(j) components recovered from used products collected in the territory of a Party, provided that these products are fit only for such recovery, when the component is either:
(i) incorporated in another product; or
(ii) further produced resulting in a product with a performance and life expectancy equivalent or similar to those of a new product of the same type; and
(k) products, at any stage of production, produced in the territory of a Party exclusively from products specified in sub-paragraphs (a) through (j).
Article 3.5. Sufficient Production
1. For the purposes of Article 3.2, a product which is not wholly obtained is considered to have undergone sufficient production when the conditions set out in Annex 3-A are fulfilled.
2. If a non-originating material undergoes sufficient production, the resulting product is considered originating and no account must be taken of the non-originating material contained therein when that product is used in the subsequent production of another product.
Article 3.6. Tolerance
1. Notwithstanding Article 3.5(1), and except as provided in paragraphs 2, 3 and 4, if the non-originating materials used in the production of the product do not fulfil the conditions set out in Annex 3-A, the product may be considered to be an originating product provided that:
(a) the total value of those non-originating materials does not exceed 10 per cent of the transaction value or ex-works price of the product;
(b) any of the percentages given in Annex 3-A for the maximum value, volume or weight of non-originating materials are not exceeded through the application of this paragraph; and
(c) the product satisfies all other applicable requirements of this Chapter.
2. A product of Chapters 50 through 60 of the Harmonized System that does not originate because certain non-originating materials used in the production of the product do not fulfil the requirements set out for that product in Annex 3-A is nonetheless originating if the total weight of all such materials does not exceed 10 per cent of the total weight of that product.
3. For a product of Chapter 61 through 62 of the Harmonized System, the Chapter Note of Chapter 61 or 62, whichever is applicable, shall apply.
4. A product of Chapter 63 of the Harmonized System that does not originate because certain non-originating materials used in the production of the component of the product that determines the tariff classification of that product do not fulfil the requirements set out for that product in Annex 3-A is nonetheless originating if the total weight of all such materials in that component does not exceed 10 per cent of the total weight of that component.
5. Paragraphs 1 through 4 are subject to Article 3.7(c).
6. Paragraph 1 does not apply to a product wholly obtained in a Party within the meaning of Article 3.4.
Article 3.7. Unit of Classification
For the purposes of this Chapter:
(a) the tariff classification of a particular product or material is determined according to the Harmonized System;
(b) if a product composed of a group or assembly of articles or components is classified pursuant to the terms of the Harmonized System under a single heading or subheading, the whole constitutes the particular product; and
(c) if a shipment consists of a number of identical products classified under the same heading or subheading of the Harmonized System, each product is considered separately.
Article 3.8. Packaging and Packing Materials and Containers
1. If, under Rule 5 of the General Rules for the Interpretation of the Harmonized System, packaging is included with the product for classification purposes, it is considered in determining whether all the non-originating materials used in the production of the product satisfy the requirements set out in Annex 3-A.
2. Packing materials and containers in which a product is packed for shipment are disregarded in determining the origin of that product.
Article 3.9. Accounting Segregation of Fungible Materials or Products
1. If originating and non-originating fungible:
(a) materials are used in the production of a product, the determination of the origin of the fungible materials need not be made through physical separation and identification of any specific fungible material, but may be determined on the basis of an inventory management system;
(b) products are physically combined or mixed in inventory in a Party before exportation to the other Party, the determination of the origin of the fungible products need not be made through physical separation and identification of any specific fungible product, but may be determined on the basis of an inventory management system.
2. The inventory management system must:
(a) ensure that, at any time, no more products receive originating status than would have been the case if the fungible materials or fungible products had been physically segregated;
(b) specify the quantity of originating and non-originating materials or products, including the dates on which those materials or products were placed in inventory and if required by the applicable rule of origin, the value of those materials or products;
(c) specify the quantity of products produced using fungible materials, or the quantity of fungible products, that are supplied to customers requiring evidence of origin in a Party for the purposes of obtaining preferential treatment under this Agreement and to customers not requiring such evidence; and
(d) indicate if an inventory of originating products was available in sufficient quantity to support the declaration of originating status.
3. For the purposes of paragraph 1, fungible materials or fungible products means materials or products that are of the same kind and commercial quality, with the same technical and physical characteristics, and which cannot be distinguished from one another for origin purposes.
Article 3.10. Accessories, Spare Parts and Tools
Accessories, spare parts and tools delivered with a product that form part of its standard accessories, spare parts or tools, that are not invoiced separately from the product and which quantities and value are customary for the product, are:
(a) taken into account in calculating the value of the relevant non-originating materials when the rule of origin of Annex 3-A applicable to the product contains a percentage for the maximum value of non-originating materials; and
(b) disregarded in determining whether all the non-originating materials used in the production of the product undergo the applicable change in tariff classification or other requirements set out in Annex 3-A.
Article 3.11. Sets
1. Except as provided in Annex 3-A, a set classified as such as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System, is originating, provided that:
(a) all of the set's component products are originating; or
(b) if the set contains a non-originating component product, the value of the non-originating component products does not exceed 25 per cent of the transaction value or ex-works price of the set.
2. The value of non-originating component products is calculated in the same manner as the value of non-originating materials.
3. The transaction value or ex-works price of the set is calculated in the same manner as the transaction value or ex-works price of the product.
Article 3.12. Neutral Elements
In order to determine whether a product originates, it is not necessary to determine the origin of the following which might be used in its production:
(a) energy and fuel;
(b) plant and equipment;
(c) machines and tools; or
(d) materials which do not enter and which are not intended to enter into the final composition of the product.
Article 3.13. Transport Through a Non-Party
1. A product is not considered originating by reason of having undergone production that satisfies the requirements of Article 3.2 if, subsequent to that production, the product:
(a) undergoes further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition, to transport the product to the territory of a Party; or
(b) does not remain under customs control while outside the territories of the Parties.
2. The storage of a product or shipment or the splitting of shipments may take place if carried out under the responsibility of the exporter or of a subsequent holder of the products and the products remain under customs control in the country or countries of transit.
Article 3.14. Returned Originating Products
If an originating product exported from a Party to a non-Party is returned, it must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that the returning product:
(a) is the same as that exported; and
(b) has not undergone any operation beyond that necessary to preserve it in good condition.
Section C. Origin Procedures
Article 3.15. Proof of Origin
1. Products originating in Ukraine, on importation into Canada, and products originating in Canada, on importation into Ukraine, benefit from preferential tariff treatment of this Agreement on the basis of a declaration ("origin declaration").
2. The origin declaration is provided on an invoice or any other commercial document that describes the originating product in sufficient detail to enable its identification.
3. The different linguistic versions of the text of the origin declaration are set out in Annex 3-B.
Article 3.16. Obligations Regarding Exportations
1. Each Party shall provide that an origin declaration as referred to in Article 3.15(1) must be completed by an exporter in the territory of a Party of an originating product for the purposes of obtaining preferential tariff treatment for that product in the territory of the other Party.
2. Each Party shall require that the exporter completing an origin declaration shall, at the request of the customs authority of the Party of export, submit a copy of the origin declaration and all documents proving the originating status of the products concerned, including supporting documents or written statements from the producers or suppliers, as well as the fulfilment of the other requirements of this Chapter.
3. Each Party shall require that an origin declaration be completed and signed by the exporter unless otherwise provided by the Parties.
4. An origin declaration may be completed by the exporter when the product to which it relates is exported, or after exportation on the condition that it is presented in the importing Party within a period of two years, or within a longer period as specified in the legislation of the importing Party, after the importation of the product to which it relates.
5. The customs authority of the Party of import may, in accordance with its legislation, allow an origin declaration to apply to multiple shipments of identical originating products that take place within a period not exceeding 12 months as set out by the exporter in that declaration.
6. An exporter that has completed an origin declaration and that becomes aware or has reason to believe that the origin declaration contains incorrect information, shall immediately notify the importer in writing of any change affecting the originating status of each product to which the origin declaration applies.
7. The Parties may allow the establishment of a system that would permit an origin declaration to be submitted electronically and directly from the exporter in the territory of one Party to an importer in the territory of the other Party, including the replacement of the exporter's signature on the origin declaration with an electronic signature or identification code.
Article 3.17. Validity of the Origin Declaration
1. An origin declaration shall be valid for 12 months from the date when it was completed by the exporter, or for such longer period as determined by the Party of import. The preferential tariff treatment may be claimed, within the validity period, to the customs authority of the Party of import.
2. An origin declaration which is submitted to the customs authority of the Party of import after the validity period specified in paragraph 1 may be accepted for the purpose of preferential tariff treatment in accordance with the legislation of the Party of import.
Article 3.18. Obligations Regarding Importations
1. Each Party shall provide that, for the purpose of claiming preferential tariff treatment, the importer shall:
(a) submit the origin declaration to the customs authority of the Party of import as required by and in accordance with the procedures applicable in the Party of import;
(b) if required by the customs authority of the Party of import, submit a translation of the origin declaration; and
(c) if required by the customs authority of the Party of import, provide for a statement accompanying or forming part of the import declaration, to the effect that the product meets the conditions required for the application of this Agreement.
2. Each Party shall require that an importer that becomes aware or has reason to believe that an origin declaration for a product to which preferential tariff treatment has been granted contains incorrect information immediately notifies the customs authority of the Party of import in writing of any change affecting the originating status of that product and pays any duties owing.
3. If an importer claims preferential tariff treatment for a product imported from the territory of the other Party, the importing Party may deny preferential tariff treatment to the product if the importer fails to comply with any requirement under this Chapter.
4. A Party shall, in accordance with its legislation, provide that if a product would have qualified as an originating product when it was imported into the territory of that Party except that the importer did not have an origin declaration at the time of importation the importer of the product may, within a period of no less than three years after the date of importation, apply for a refund of duties paid as a result of the product not having been accorded preferential tariff treatment.
Article 3.19. Proof Related to Transport Through a Non-Party
1. Each Party, through its customs authority, may require an importer to demonstrate that a product for which the importer claims preferential tariff treatment was shipped in accordance with Article 3.13, by providing:
(a) carrier documents, including bills of lading or waybills, indicating the shipping route and all points of shipment and transhipment prior to the importation of the product; and