CUSMA Rules of Origin Regulations — 5
sed by Producer A in the production of the dress must also be formed and finished in the territory of one or more of the CUSMA countries. At one point Producer A uses a small quantity of non-originating combed wool yarn in the production of the fine wool fabric. Under subsection (7), if the total weight of the non-originating combed wool yarn does not exceed 10% of the total weight of all the yarn used in the production of the component of the dress that determines its tariff classification, that is, the wool fabric, the dress would be considered an originating good. Example 9 (subsection (7)): 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. 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. 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 o