CUSMA Rules of Origin Regulations — 3
untry in an unassembled or disassembled form but was classified as an assembled good in accordance with Rule 2(a) of the General Rules for the Interpretation of the Harmonized System and (i) the good is produced entirely in the territory of one or more of the CUSMA countries, (ii) the regional value content of the good, calculated in accordance with section 7 , is not less than 60% if the transaction value method is used or not less than 50% if the net cost method is used, and (iii) the good satisfies all other applicable requirements of these Regulations. Interpretation — goods and parts of goods (5) For the purposes of paragraph (4)(a), (a) the determination of whether a heading or subheading provides for a good and its parts is to be made on the basis of the nomenclature of the heading or subheading and the relevant Section Notes or Chapter Notes, in accordance with the General Rules for the Interpretation of the Harmonized System; and (b) if, in accordance with the Harmonized System, a heading includes parts of goods by application of a Section Note or Chapter Note of the Harmonized System and the subheadings under that heading do not include a subheading designated “Parts”, a subheading designated “Other” under that heading is considered to cover only the goods and parts of the goods that are themselves classified under that subheading. Requirements to meet one rule (6) For the purposes of subsection (2), if Schedule 1 sets out two or more alternative rules for the tariff provision under which a good is classified and the good satisfies the requirements of one of those rules, the good need not satisfy the requirements of another of the rules in order to qualify as an originating good. Special rule for certain goods (7) A good is originating in the territory of a CUSMA country if the good is referred to in Schedule 2 and is imported from the territory of a CUSMA country. Self-produced material — considered material (8) For the purpose of determining whether non-originating materials undergo an applicable change in tariff classification, a self-produced material may, at the choice of the producer of that material, be considered a material used in the production of a good into which the self-produced material is incorporated. Examples (9) Each of the following is an “Example” as referred to in subsection 1 (4). Example 1 (subsection (2)): The component that determines the tariff classification of a textile or apparel good Producer A, located in a CUSMA country, produces women’s wool overcoats of subheading 6202.11 from two different fabrics, one for the body and another for the sleeves. Both fabrics are produced using originating and non-originating materials. The overcoat’s body is made of woven wool and silk fabric, and the sleeves are made of knit cotton fabric. For the purpose of determining if the women’s wool overcoats are originating goods, Producer A must take into account Note 2 of Chapter 62 of Schedule 1, which indicates that the applicable rule will apply only to the component that determines the tariff classification of the good and that the component must satisfy the tariff change requirements set out in the rule for that good. The woven fabric (80% wool and 20% silk) used for the body is the component of the women’s wool overcoat that determines its tariff classification in subheading 6202.11 because it constitutes the predominant material by weight and makes up the largest surface area of the overcoat. This fabric is made by Producer A from originating wool yarn classified in heading 51.06 and non-originating silk yarn classified in heading 50.04. Since the knit cotton fabric used in the sleeves is not the component that determines the tariff classification of the good, it does not need to meet the requirements set out in the rule for the good. Producer A must determine whether the non-originating materials used in the production of the component that determines the tariff classification of the women’s wool o