GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, manufactures women’s knit sweaters, which have knit bodies and woven sleeves. The knit body is composed of 95% polyester and 5% spandex, by weight. The sleeves are made of non-CUSMA woven fabric that is 100% polyester. All materials of the knit body are from a CUSMA country, except for the spandex, which is from a non-CUSMA country. The sweater is cut and sewn in a CUSMA country. Since the knit body gives the garment its essential character, the sweater is classified in subheading 6110.30. The product-specific rule of origin set out in Schedule 1 for subheading 6110.30 is that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the CUSMA countries. The sleeves are disregarded in determining whether the sweater originates in a CUSMA country because only the component that determines the tariff classification of the good must be originating and the de minimis provision is applied to that component. Moreover, the total weight of the spandex is less than 10% of the total weight of the knit body fabric, which is the component that determines the tariff classification of the sweater and the spandex does not exceed 7% of the total weight of good. Assuming that the women’s knit sweater satisfies all other applicable requirements of these Regulations, the women’s knit sweater is originating from the CUSMA country.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 10 (subsection (9)): A men’s shirt of Chapter 61 is made using two different fabrics; one for the body and another for the sleeves. The component that determines the tariff classification of the men’s shirt is the fabric used for the body, as it constitutes the material that predominates by weight and makes up the largest surface area of the shirt’s exterior. If this fabric is produced using non-originating fibres and yarns that do not satisfy a tariff change rule, the de minimis provision is calculated on the basis of the total weight of the non-originating fibres or yarns used in the production of the fabric that makes up the body of the shirt. The weight of these non-originating fibres or yarns must be 10% or less of the total weight of that fabric and any elastomeric content must be 7% or less of the total weight of that fabric. Alternatively, if the shirt is made entirely of the same fabric, the component that determines the tariff classification of the shirt would be that fabric, as the shirt is made out of the same material throughout. Therefore, under this second scenario, the total weight of all non-originating fibres and yarns used in the production of the shirt that do not satisfy a tariff change rule must be 10% or less of the total weight of the shirt, and any elastomeric content must be 7% or less of the total weight of the shirt, for the shirt to be considered as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
A men’s shirt of Chapter 61 is made using two different fabrics; one for the body and another for the sleeves. The component that determines the tariff classification of the men’s shirt is the fabric used for the body, as it constitutes the material that predominates by weight and makes up the largest surface area of the shirt’s exterior. If this fabric is produced using non-originating fibres and yarns that do not satisfy a tariff change rule, the de minimis provision is calculated on the basis of the total weight of the non-originating fibres or yarns used in the production of the fabric that makes up the body of the shirt. The weight of these non-originating fibres or yarns must be 10% or less of the total weight of that fabric and any elastomeric content must be 7% or less of the total weight of that fabric.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Alternatively, if the shirt is made entirely of the same fabric, the component that determines the tariff classification of the shirt would be that fabric, as the shirt is made out of the same material throughout. Therefore, under this second scenario, the total weight of all non-originating fibres and yarns used in the production of the shirt that do not satisfy a tariff change rule must be 10% or less of the total weight of the shirt, and any elastomeric content must be 7% or less of the total weight of the shirt, for the shirt to be considered as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 11 (subsection (9)): Producer A, located in a CUSMA country, produces women’s blouses of subheading 6206.40 from a fabric also produced by Producer A that is composed of 90% by weight of originating polyester yarns of subheading 5402.33, 3% by weight non-originating lyocell yarn of subheading 5403.49 and 7% by weight non-originating elastomeric filament yarn of subheading 5402.44. This fabric is the component of the women’s blouses that determines its tariff classification in subheading 6206.40. The product-specific rule of origin of Schedule 1 applicable to the women’s blouses of subheading 6206.40 requires a change in tariff classification from any other Chapter, except from those headings and Chapters under which certain yarns and fabrics, including polyester, lyocell and elastomeric filament yarns, are classified and a requirement that the good is cut and sewn or otherwise assembled in the territory of one or more of the CUSMA countries. In this case, the non-originating lyocell yarn of subheading 5403.49 and the non-originating elastomeric filament yarn of subheading 5402.44 do not satisfy the change in tariff classification required by the product-specific rule of origin of Schedule 1, because the product-specific rule of origin for heading 62.06 excludes a change from Chapter 54 to heading 62.06. However, according to subsection (7), a textile or apparel good classified in any of Chapters 61 through 63 that contains non-originating fibres or yarns in the component of the good that determines its tariff classification that do not satisfy the applicable change in tariff classification, is nonetheless considered an originating good if the total weight of all those fibres or yarns is not more than 10% of the total weight of that component, of which the total weight of elastomeric content may not exceed 7% of the total weight of the component, and such good meets all the other applicable requirements of these Regulations. Since the weight of the non-originating materials used by Producer A does not exceed 10% of the total weight of the component that determines the tariff classification of the women’s blouses, and the weight of elastomeric content also does not exceed 7% of such total weight, the women’s blouses qualify as originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces women’s blouses of subheading 6206.40 from a fabric also produced by Producer A that is composed of 90% by weight of originating polyester yarns of subheading 5402.33, 3% by weight non-originating lyocell yarn of subheading 5403.49 and 7% by weight non-originating elastomeric filament yarn of subheading 5402.44. This fabric is the component of the women’s blouses that determines its tariff classification in subheading 6206.40.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The product-specific rule of origin of Schedule 1 applicable to the women’s blouses of subheading 6206.40 requires a change in tariff classification from any other Chapter, except from those headings and Chapters under which certain yarns and fabrics, including polyester, lyocell and elastomeric filament yarns, are classified and a requirement that the good is cut and sewn or otherwise assembled in the territory of one or more of the CUSMA countries.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In this case, the non-originating lyocell yarn of subheading 5403.49 and the non-originating elastomeric filament yarn of subheading 5402.44 do not satisfy the change in tariff classification required by the product-specific rule of origin of Schedule 1, because the product-specific rule of origin for heading 62.06 excludes a change from Chapter 54 to heading 62.06.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
However, according to subsection (7), a textile or apparel good classified in any of Chapters 61 through 63 that contains non-originating fibres or yarns in the component of the good that determines its tariff classification that do not satisfy the applicable change in tariff classification, is nonetheless considered an originating good if the total weight of all those fibres or yarns is not more than 10% of the total weight of that component, of which the total weight of elastomeric content may not exceed 7% of the total weight of the component, and such good meets all the other applicable requirements of these Regulations.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Since the weight of the non-originating materials used by Producer A does not exceed 10% of the total weight of the component that determines the tariff classification of the women’s blouses, and the weight of elastomeric content also does not exceed 7% of such total weight, the women’s blouses qualify as originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 12 (subsection (10)): A producer located in a country manufactures boys’ swimwear of subheading 6211.11 from fabric that has been woven in a CUSMA country from yarn spun in a CUSMA country; however, the producer uses non-originating narrow elastic of heading 60.02 in the waist-band of the swimwear. As a result of the use of the non-originating narrow elastic of heading 60.02 in the waistband, and provided the garment is imported into a CUSMA country at least 18 months after the Agreement enters into force, the swimwear is considered non-originating because it does not satisfy the requirement set out in Note 3 of Chapter 62. In addition, subsection (7) does not apply to the narrow elastic of heading 60.02 and the good is therefore a non-originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
A producer located in a country manufactures boys’ swimwear of subheading 6211.11 from fabric that has been woven in a CUSMA country from yarn spun in a CUSMA country; however, the producer uses non-originating narrow elastic of heading 60.02 in the waist-band of the swimwear. As a result of the use of the non-originating narrow elastic of heading 60.02 in the waistband, and provided the garment is imported into a CUSMA country at least 18 months after the Agreement enters into force, the swimwear is considered non-originating because it does not satisfy the requirement set out in Note 3 of Chapter 62. In addition, subsection (7) does not apply to the narrow elastic of heading 60.02 and the good is therefore a non-originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 1: Paint set Producer A assembles a paint set for arts and crafts. The set includes tubes of paint, paint brushes and paper, all presented in a reusable wooden box. The paint set for arts and crafts is classified in subheading 3210.00 as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System and, as a result, this section applies with respect to that set. The paint, paper and wooden box are all originating as they undergo the changes required in Schedule 1. The paint brushes, which represent 4% of the value of the set, are produced in the territory of a non-CUSMA country and are therefore non-originating. The set is nonetheless originating.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A assembles a paint set for arts and crafts. The set includes tubes of paint, paint brushes and paper, all presented in a reusable wooden box. The paint set for arts and crafts is classified in subheading 3210.00 as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System and, as a result, this section applies with respect to that set. The paint, paper and wooden box are all originating as they undergo the changes required in Schedule 1. The paint brushes, which represent 4% of the value of the set, are produced in the territory of a non-CUSMA country and are therefore non-originating. The set is nonetheless originating.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 2 (subsection (2)): Producer A, located in a CUSMA country, uses originating materials and non-originating materials to assemble a manicure set of subheading 8214.20. The set includes a nail nipper, cuticle scissors, a nail clipper and a nail file with cardboard support, all presented in a plastic case with zipper. The items are not classified as a set as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System. The Harmonized System specifies that manicure sets are classified in subheading 8214.20. This means that the specific rule of origin set out in Schedule 1 applies. This rule requires a change in tariff classification from any other Chapter. In order for the manicure set to qualify as an originating good under the rule set out in Schedule 1, Producer A may not use any non-originating material of Chapter 82 in the assembly of the manicure set. In this case, Producer A, located in a CUSMA country, produces the nail nipper, cuticle scissors and nail clipper included in the set, and all qualify as originating goods. Despite being classified in the same Chapter as the manicure set (Chapter 82), the originating nail nipper, the cuticle scissors and the nail clipper satisfy the requirement of the applicable change in tariff classification to the manicure set. The nail file with cardboard support (6805.20) and the plastic case with zipper (4202.12) are imported from outside the territories of the CUSMA countries; however, these items are not classified in Chapter 82, so they satisfy the applicable change in tariff classification. Therefore, the manicure set is an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, uses originating materials and non-originating materials to assemble a manicure set of subheading 8214.20. The set includes a nail nipper, cuticle scissors, a nail clipper and a nail file with cardboard support, all presented in a plastic case with zipper. The items are not classified as a set as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System. The Harmonized System specifies that manicure sets are classified in subheading 8214.20. This means that the specific rule of origin set out in Schedule 1 applies. This rule requires a change in tariff classification from any other Chapter. In order for the manicure set to qualify as an originating good under the rule set out in Schedule 1, Producer A may not use any non-originating material of Chapter 82 in the assembly of the manicure set.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In this case, Producer A, located in a CUSMA country, produces the nail nipper, cuticle scissors and nail clipper included in the set, and all qualify as originating goods. Despite being classified in the same Chapter as the manicure set (Chapter 82), the originating nail nipper, the cuticle scissors and the nail clipper satisfy the requirement of the applicable change in tariff classification to the manicure set. The nail file with cardboard support (6805.20) and the plastic case with zipper (4202.12) are imported from outside the territories of the CUSMA countries; however, these items are not classified in Chapter 82, so they satisfy the applicable change in tariff classification. Therefore, the manicure set is an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 3 (subsection (3)): Pants set Producer A makes a pants set, consisting of men’s cotton denim trousers and a polyester belt, packed together for a retail sale. The trousers are made of cotton fabric formed and finished from yarn in a CUSMA country. The sewing thread is formed and finished in a CUSMA country. The pocket bag fabric is formed and finished in a CUSMA country, of yarn wholly formed in a CUSMA country. The trousers are cut and sewn in CUSMA country A. A polyester webbing belt with a metal buckle is made in a non-CUSMA country and shipped to CUSMA country A, where it is threaded through the belt loops of the trousers. The value of the belt is 8% of the value of the trousers and belt combined. The men’s trousers are classified in subheading 6203.42. The rule of origin set out in Schedule 1 for subheading 6203.42 requires that the trousers be made from fabric produced in a CUSMA country from yarn produced in a CUSMA country. The trousers satisfy the product-specific rules of origin set out in Schedule 1 and are considered originating. However, the belt does not satisfy the rules and would not be considered originating. The set is nonetheless an originating good if the belt value is 10% or less of the value of the set. Since the value of the belt is 8% of the value of the set, the men’s trousers and belt set would be treated as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A makes a pants set, consisting of men’s cotton denim trousers and a polyester belt, packed together for a retail sale. The trousers are made of cotton fabric formed and finished from yarn in a CUSMA country. The sewing thread is formed and finished in a CUSMA country. The pocket bag fabric is formed and finished in a CUSMA country, of yarn wholly formed in a CUSMA country. The trousers are cut and sewn in CUSMA country A. A polyester webbing belt with a metal buckle is made in a non-CUSMA country and shipped to CUSMA country A, where it is threaded through the belt loops of the trousers. The value of the belt is 8% of the value of the trousers and belt combined.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The men’s trousers are classified in subheading 6203.42. The rule of origin set out in Schedule 1 for subheading 6203.42 requires that the trousers be made from fabric produced in a CUSMA country from yarn produced in a CUSMA country. The trousers satisfy the product-specific rules of origin set out in Schedule 1 and are considered originating. However, the belt does not satisfy the rules and would not be considered originating. The set is nonetheless an originating good if the belt value is 10% or less of the value of the set. Since the value of the belt is 8% of the value of the set, the men’s trousers and belt set would be treated as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 4 (subsection (3)): Shirt and tie set Producer A makes a boys’ shirt and tie set in a CUSMA country. The shirt is constructed from 55% cotton, 45% polyester, solid colour, dyed, woven fabric, classified in subheading 5210.31. The fabric contains 73.2 total yarns per square centimetre and 76 metric yarns. The shirt is packaged in a retail polybag with a coordinating colour, 100% polyester, woven fabric tie. The yarns used in the shirt fabric are spun in a non-CUSMA country and the fabric is woven and dyed in the same non-CUSMA country. The shirt fabric is sent to the CUSMA country where it is cut and sewn into finished garments. The coordinating tie is made in a non-CUSMA country from fabric that is woven in that country from yarns that are spun in that country. The value of the coordinating tie is approximately 13% of the value of the set. The shirt is classified under heading 62.05. The shirt satisfies the product-specific rule of origin for heading 62.05 set out in Schedule 1 and is considered originating because it is wholly made from fabric of subheading 5210.31 (not of square construction, containing more than 70 warp ends and filling picks per square centimetre, of average yarn number exceeding 70 metric) and cut and sewn into finished garments in the CUSMA country. On the other hand, the tie does not satisfy the product-specific rule for heading 62.15 and would not be considered originating. For the purposes of the sets rule, provided the tie is valued at 10% or less of the value of the set, the set will be considered as originating. However, since the value of the coordinating tie is approximately 13% of the value of the set, the shirt and tie set would not be considered as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A makes a boys’ shirt and tie set in a CUSMA country. The shirt is constructed from 55% cotton, 45% polyester, solid colour, dyed, woven fabric, classified in subheading 5210.31. The fabric contains 73.2 total yarns per square centimetre and 76 metric yarns. The shirt is packaged in a retail polybag with a coordinating colour, 100% polyester, woven fabric tie. The yarns used in the shirt fabric are spun in a non-CUSMA country and the fabric is woven and dyed in the same non-CUSMA country. The shirt fabric is sent to the CUSMA country where it is cut and sewn into finished garments. The coordinating tie is made in a non-CUSMA country from fabric that is woven in that country from yarns that are spun in that country. The value of the coordinating tie is approximately 13% of the value of the set.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The shirt is classified under heading 62.05. The shirt satisfies the product-specific rule of origin for heading 62.05 set out in Schedule 1 and is considered originating because it is wholly made from fabric of subheading 5210.31 (not of square construction, containing more than 70 warp ends and filling picks per square centimetre, of average yarn number exceeding 70 metric) and cut and sewn into finished garments in the CUSMA country. On the other hand, the tie does not satisfy the product-specific rule for heading 62.15 and would not be considered originating. For the purposes of the sets rule, provided the tie is valued at 10% or less of the value of the set, the set will be considered as originating. However, since the value of the coordinating tie is approximately 13% of the value of the set, the shirt and tie set would not be considered as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 5 (subsection (3)): Chef set Producer A, located in a CUSMA country, produces a chef set for retail sale using originating and non-originating materials. This set includes an apron, cooking gloves and a chef hat. The chef set is classified in heading 62.11 as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System. For this reason, subsection (3) applies to this set. Both the apron and cooking gloves meet the product-specific rules of origin for their respective product categories and are therefore considered to be originating. The chef hat, which represents 9.7% of the value of the set, is produced in the territory of a non-CUSMA country and is therefore non-originating. The set is nonetheless an originating good because less than 10% of the value of the set is non-originating.