CUSMA Rules of Origin Regulations — 2
2 The following rules of interpretation apply in this Schedule: (a) for the purposes of Chapter 61, Note 2 or Chapter 62, Note 3, a fabric of subheading 5806.20 or heading 60.02 is considered formed from yarn and finished in the territory of one or more of the CUSMA countries if all production processes and finishing operations, starting with the weaving, knitting, needling, tufting, or other process, and ending with the fabric ready for cutting or assembly without further processing, took place in the territories of one or more of the CUSMA countries, even if non-originating yarn is used in the production of the fabric of subheading 5806.20 or heading 60.02; (b) for the purposes of Chapter 61, Note 3 and Chapter 62, Note 4, sewing thread is considered formed and finished in the territory of one or more of the CUSMA countries if all production processes and finishing operations, starting with the extrusion of filaments, strips, film or sheet, and including slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with the finished single or plied thread ready for use for sewing without further processing, took place in the territories of one or more of the CUSMA countries, even if non-originating fibre is used in the production of sewing thread of heading 52.04, 54.01 or 55.08, or yarn of heading 54.02 used as sewing thread referred to in the Notes; (c) for the purposes of Chapter 61, Note 4 and Chapter 62, Note 5, pocket fabric is formed and finished in the territory of one or more of the CUSMA countries if all production processes and finishing operations, starting with the weaving, knitting, needling, tufting, felting, entangling, or other process, and ending with the fabric ready for cutting or assembly without further processing, took place in the territories of one or more of the CUSMA countries and includes non-originating fibre used in the production of the yarn used to produce the pocket fabric; (d) for the purposes of Chapter 61, Note 4 or Chapter 62, Note 5, pocket bag fabric is considered a pocket or pockets if the pockets in which fabric is shaped to form a bag is not visible as the pocket is in the interior of the garment (i.e. pockets consisting of “bags” in the interior of the garment), but visible pockets such as patch pockets, cargo pockets, or typical shirt pockets are not subject to these notes; e) for the purposes of Chapter 61, Note 4 or Chapter 62, Note 5, yarn is considered wholly formed in the territory of one or more of the CUSMA countries if all the production processes and finishing operations, starting with the extrusion of filaments, strips, film, or sheet, and including slitting a film or sheet into strip, or the spinning of all fibres into yarn, or both, and ending with a finished single or plied yarn, took place in the territory of one or more of the CUSMA countries, even if non-originating fiber is used in the production of the yarn used to produce the pocket bag fabric; and f) for the purpose of Chapter 63, Note 2, a fabric of heading 59.03 is considered formed and finished in the territory of one or more of the CUSMA countries if all production processes and finishing operations, starting with the weaving, knitting, needling, tufting, felting, entangling, or other process, including coating, covering, laminating, or impregnating, and ending with the fabric ready for cutting or assembly without further processing, took place in the territories of one or more of the CUSMA countries, even if non-originating fibre or yarn is used in the production of the fabric of heading 59.03.