CICEPA Rules of Origin Regulations: SOR/2026-124

Canada Gazette, Part II, Volume 160, Number 13

Registration
SOR/2026-124 June 12, 2026

CUSTOMS TARIFF

P.C. 2026-602 June 12, 2026

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed CICEPA Rules of Origin Regulations under subsection 16(2)footnote a of the Customs Tariff footnote b.

CICEPA Rules of Origin Regulations

Rules of origin

1 The following provisions of the Canada–Indonesia Comprehensive Economic Partnership Agreement have the force of law in Canada:

Coming into force

2 These Regulations come into force on the day on which section 40 of the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act, chapter 8 of the Statutes of Canada, 2026, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the regulations.)

Issues

Regulations are needed to implement Canada’s commitments under its free trade agreement with Indonesia.

Background

In June 2021, following successful exploratory discussions and public consultations, Canada and Indonesia launched free trade negotiations with the aim of achieving a comprehensive bilateral agreement. The negotiations substantively concluded in December 2024, and the Canada–Indonesia Comprehensive Economic Partnership Agreement (CICEPA) was signed in September 2025. The Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act (the Implementation Act), which obtained royal assent on May 6, 2026, will make effective Canada’s CICEPA tariff commitments once it is brought into force by an order made by the Governor in Council.

The CICEPA is an important milestone in Canada’s trade engagement and deepening economic ties with the Indo-Pacific region. It will create a platform for Canadian businesses to benefit from increased opportunities associated with the economic growth of Indonesia, a country of 287 million people and an economy of nearly $2.0 trillion.

The CICEPA is a comprehensive trade agreement that addresses market access for goods, services and investment, and includes provisions on small and medium-sized enterprises, labour, environment and women’s economic empowerment. The CICEPA will increase access to Indonesia’s market for Canadian traders by reducing or eliminating tariffs and by disciplining non-tariff barriers through provisions on sanitary and phytosanitary measures, technical barriers to trade and good regulatory practices. It will also provide greater predictability and transparency for Canadian service providers and investors across a range of sectors.

Objective

To make regulations in order to fully implement Canada’s tariff commitments under the CICEPA.

Description

The CICEPA Rules of Origin Regulations implement, in Canada, the rules of origin of the Agreement to determine when goods have undergone sufficient production to qualify for preferential tariff treatment.

The CICEPA Rules of Origin for Casual Goods Regulations establish that non-commercial goods acquired in Indonesia, which are either marked as made in Indonesia or not marked to the contrary, are considered originating and therefore entitled to the relevant CICEPA tariff preferences upon their importation into Canada.

The CICEPA Tariff Preference Regulations allow eligible goods that are not shipped directly to Canada from Indonesia to retain their eligibility for preferential tariff rates provided the goods remain under customs control in third countries.

These regulations implement the conditions governing Canada’s negotiated tariff elimination commitments under the Agreement into domestic law, ensuring that Canadian importers can access those tariff preferences given they meet the appropriate requirements.

Regulatory development

Consultation

From January 9 to February 23, 2021, Global Affairs Canada held public consultations to receive the views of Canadians on a possible CICEPA. The consultations consisted of a notice published in the Canada Gazette inviting written submissions, a dedicated web page, as well as targeted outreach with a variety of domestic stakeholders, including businesses and industry associations, provinces and territories, labour unions, Indigenous groups, and small and medium-sized enterprises. In total, Global Affairs Canada received 83 written submissions covering a broad range of sectors and engaged directly with over 100 stakeholders through virtual meetings, including with representatives of the mining, forestry, energy and agricultural sectors.

Overall, stakeholders expressed a high level of support for a comprehensive agreement, highlighting the benefits of increased trade with Indonesia and the potential opportunities in this fast-growing market and in the Asia-Pacific region more broadly. Many of the written submissions and discussions underscored how an agreement with Indonesia could complement Canada’s other trade policy priorities, such as Canada’s overall trade diversification strategy, expansion of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) through accessions, and deepening commercial ties with the fast-growing Indo-Pacific region.

Export-oriented agricultural sectors (beef, pork, oilseeds, grains, pulses, horticulture) expressed the strongest support for an agreement that could effectively address both tariff and non-tariff barriers in Indonesia. Stakeholders operating in the natural resources sectors, including mining and energy, also highlighted opportunities for mineral exploration and investment in Indonesia. Multiple groups across different industries pointed to the need for transparent, consistent, and predictable regulations to reduce corruption and systemic barriers to doing business in Indonesia.

Indigenous engagement, consultation and modern treaty obligations

Following the completion of the assessment of modern treaty implications, no adverse impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982, were identified in the regulations.

Instrument choice

Subsection 16(2) of the Customs Tariff provides the authority for the Governor in Council, on the recommendation of the Minister of Finance, to make regulations respecting the origin of goods and to determine when goods are entitled to tariff preferences provided under this legislation.

Regulatory analysis

Benefits and costs

The tariff preference and rules of origin regulations ensure that Canada’s tariff preferences for imports of Indonesian goods will be governed by the appropriate underlying conditions set out in the Agreement. These regulations do not change procedures for the importing and exporting of goods. Rather, they update the criteria for determining whether a good is considered originating and therefore eligible for preferential tariff treatment provided for under the CICEPA.

This will directly benefit Canadian importers who are able to meet those conditions and take advantage of the CICEPA tariff preferences, which reduce their import costs. It will also lower costs for further manufacturers using Indonesian imported inputs as well as Canadian consumers. Additional steps by importers to confirm qualification for preferential tariff treatment may be required, but these would not significantly differ from current importation procedures.

More broadly, the regulations support full domestic implementation of Canada’s CICEPA commitments. The Agreement expands Canada’s market access and trade opportunities with one of the largest and fastest-growing markets in the world. This new trade regime is an important step in Canada’s trade diversification agenda, which is critical for Canadian businesses seeking to diversify their exports, enter new markets and secure their supply chains to minimize their exposure to trade uncertainty. The CICEPA also cements Canada’s broader partnership with Indonesia in support of its wider objectives in the Indo-Pacific region.

Small business lens

Analysis under the small business lens determined that the measure would not impose administrative or compliance requirements on Canadian small businesses. Importers that are small businesses would benefit from CICEPA tariff preferences.

One-for-one rule

The one-for-one rule does not apply, as there is no change in administrative burden or costs to businesses. The regulations do not change procedures or documentation (i.e. customs forms) already used for importing goods. Rather, they establish certain conditions for eligibility for CICEPA preferential tariff treatment. All businesses, including small businesses, will be able to claim preferential tariff treatment on originating goods and will see benefits in the form of lower duties paid on their imports.

Regulatory cooperation and alignment

There is no regulatory cooperation component.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that a strategic environmental and economic assessment is not required.

Gender-based analysis plus

No impacts based on gender and other identity factors have been identified for these regulations.

Implementation, compliance and enforcement, and service standards

The Canada Border Services Agency (CBSA) is responsible for administering Customs Tariff legislation and regulations, including amendments to the Customs Tariff made by the Implementation Act as well as these regulations, once brought into force.

With the publication of the regulations, the CBSA will release a Customs Notice to inform the importing community of issues related to the administration of the CICEPA tariff preferences and conditions contained in these regulations.

Contact

Mike Mosier
Senior Director
Trade and Tariff Policy
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Email: tariff-tarif@fin.gc.ca