GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Situation C A producer located in a CUSMA country produces a bicycle that is subject to a regional value content requirement of 50% under the net cost method. The bicycle satisfies all other applicable requirements of these Regulations. The producer self-produces the bicycle frame that is used in the production of the bicycle. The costs to produce the frame are the following: Product costs: Value of originating materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs $0.10 Total cost of the bicycle frame: $10,60 Additional costs to produce the bicycle are the following: Product costs: Value of originating materials $0.00 Value of non-originating materials $5.50 Other product costs $6.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total additional costs: $12.60 The producer designates the frame as an intermediate material under subsection (6). The frame qualifies as an originating material under subsection 3 (2). Therefore, the value of non-originating materials used in the production of the frame is not included in the value of non-originating materials for the purpose of calculating the regional value content of the bicycle. The net cost of the bicycle is calculated as follows: Costs of the bicycle frame (designated as an intermediate material) ($) Additional costs to produce the bicycle ($) Total ($) Product costs: Value of originating materials 10.60 0.00 10.60 Value of non-originating materials 5.50 5.50 Other product costs 6.50 6.50 Period costs (including $0.20 in excluded costs): 0.50 0.50 Other costs: 0.10 0.10 Total cost of the bicycle: 10.60 12.60 23.20 Excluded costs (in period costs) 0.20 0.20 Net cost of the bicycle (total cost minus excluded costs): 23.00 The regional value content of the bicycle is calculated as follows: RVC = (NC − VNM) ÷ NC × 100 = ($23.00 − $5.50) ÷ $23.00 × 100 = 76.1% The regional value content of the bicycle is 76.1% and the bicycle, therefore, qualifies as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
A producer located in a CUSMA country produces a bicycle that is subject to a regional value content requirement of 50% under the net cost method. The bicycle satisfies all other applicable requirements of these Regulations. The producer self-produces the bicycle frame that is used in the production of the bicycle. The costs to produce the frame are the following: Product costs: Value of originating materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs $0.10 Total cost of the bicycle frame: $10,60 Additional costs to produce the bicycle are the following: Product costs: Value of originating materials $0.00 Value of non-originating materials $5.50 Other product costs $6.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total additional costs: $12.60
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The producer designates the frame as an intermediate material under subsection (6). The frame qualifies as an originating material under subsection 3 (2). Therefore, the value of non-originating materials used in the production of the frame is not included in the value of non-originating materials for the purpose of calculating the regional value content of the bicycle. The net cost of the bicycle is calculated as follows: Costs of the bicycle frame (designated as an intermediate material) ($) Additional costs to produce the bicycle ($) Total ($) Product costs: Value of originating materials 10.60 0.00 10.60 Value of non-originating materials 5.50 5.50 Other product costs 6.50 6.50 Period costs (including $0.20 in excluded costs): 0.50 0.50 Other costs: 0.10 0.10 Total cost of the bicycle: 10.60 12.60 23.20 Excluded costs (in period costs) 0.20 0.20 Net cost of the bicycle (total cost minus excluded costs): 23.00
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The regional value content of the bicycle is calculated as follows: RVC = (NC − VNM) ÷ NC × 100 = ($23.00 − $5.50) ÷ $23.00 × 100 = 76.1%
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The regional value content of the bicycle is 76.1% and the bicycle, therefore, qualifies as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 4: Originating materials acquired from a producer who produced them using intermediate materials Producer A, located in CUSMA country A, produces switches. In order for the switches to qualify as originating goods, Producer A designates subassemblies of the switches as intermediate materials. The subassemblies are subject to a regional value content requirement. They satisfy that requirement and qualify as originating materials. The switches are also subject to a regional value content requirement and, with the subassemblies designated as intermediate materials, are determined to have a regional value content of 65%. Producer A sells the switches to Producer B, located in CUSMA country B, who uses them to produce switch assemblies that are used in the production of Good B. The switch assemblies are subject to a regional value content requirement. Producers A and B are not accumulating their production within the meaning of section 9 . Producer B is therefore able, under subsection (6), to designate the switch assemblies as intermediate materials. If Producers A and B were accumulating their production within the meaning of section 9 , Producer B would be unable to designate the switch assemblies as intermediate materials because the production of both producers would be considered to be the production of one producer.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in CUSMA country A, produces switches. In order for the switches to qualify as originating goods, Producer A designates subassemblies of the switches as intermediate materials. The subassemblies are subject to a regional value content requirement. They satisfy that requirement and qualify as originating materials. The switches are also subject to a regional value content requirement and, with the subassemblies designated as intermediate materials, are determined to have a regional value content of 65%.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A sells the switches to Producer B, located in CUSMA country B, who uses them to produce switch assemblies that are used in the production of Good B. The switch assemblies are subject to a regional value content requirement. Producers A and B are not accumulating their production within the meaning of section 9 . Producer B is therefore able, under subsection (6), to designate the switch assemblies as intermediate materials.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
If Producers A and B were accumulating their production within the meaning of section 9 , Producer B would be unable to designate the switch assemblies as intermediate materials because the production of both producers would be considered to be the production of one producer.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 5: Single producer and successive designations of materials subject to a regional value content requirement as intermediate materials Producer A, located in a CUSMA country, produces Material X and uses Material X in the production of Good B. Material X qualifies as an originating material because it satisfies the applicable regional value content requirement. Producer A designates Material X as an intermediate material. Producer A uses Material X in the production of Material Y, which is also used in the production of Good B. Material Y is also subject to a regional value content requirement. Under the proviso set out in subsection (6), Producer A cannot designate Material Y as an intermediate material, even if Material Y satisfies the applicable regional value content requirement, because Material X was already designated by Producer A as an intermediate material.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces Material X and uses Material X in the production of Good B. Material X qualifies as an originating material because it satisfies the applicable regional value content requirement. Producer A designates Material X as an intermediate material.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A uses Material X in the production of Material Y, which is also used in the production of Good B. Material Y is also subject to a regional value content requirement. Under the proviso set out in subsection (6), Producer A cannot designate Material Y as an intermediate material, even if Material Y satisfies the applicable regional value content requirement, because Material X was already designated by Producer A as an intermediate material.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 6: Single producer and multiple designations of materials as intermediate materials Producer X, located in CUSMA country X, uses non-originating materials in the production of self-produced materials A, B and C. None of the self-produced materials are used in the production of any of the other self-produced materials. Producer X uses the self-produced materials in the production of Good O, which is exported to CUSMA country Y. Materials A, B and C qualify as originating materials because they satisfy the applicable regional value content requirements. Because none of the self-produced materials are used in the production of any of the other self-produced materials, then even though each self-produced material is subject to a regional value content requirement, Producer X may, under subsection (6), designate all of the self-produced materials as intermediate materials. The proviso set out in subsection (6) only applies if self-produced materials are used in the production of other self-produced materials and both are subject to a regional value content requirement.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer X, located in CUSMA country X, uses non-originating materials in the production of self-produced materials A, B and C. None of the self-produced materials are used in the production of any of the other self-produced materials.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer X uses the self-produced materials in the production of Good O, which is exported to CUSMA country Y. Materials A, B and C qualify as originating materials because they satisfy the applicable regional value content requirements.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Because none of the self-produced materials are used in the production of any of the other self-produced materials, then even though each self-produced material is subject to a regional value content requirement, Producer X may, under subsection (6), designate all of the self-produced materials as intermediate materials. The proviso set out in subsection (6) only applies if self-produced materials are used in the production of other self-produced materials and both are subject to a regional value content requirement.
CUSMA Rules of Origin Regulations — (a)
Example 7 (subsection (23)): The following are examples of accessories, spare parts, tools, or instructional or other information materials that are delivered with a good and form part of the good’s standard accessories, spare parts, tools, or instructional or other information materials: (a) consumables that must be replaced at regular intervals, such as dust collectors for an air-conditioning system; (b) carrying cases for equipment; (c) dust covers for machines; (d) operational manuals for vehicles; (e) brackets to attach equipment to a wall; (f) bicycle tool kits or car jacks; (g) sets of wrenches to change the bit on a chuck; (h) brushes or other tools to clean out machines; and (i) electrical cords and power bars for use with electronic goods.
CUSMA Rules of Origin Regulations — (a)
The following are examples of accessories, spare parts, tools, or instructional or other information materials that are delivered with a good and form part of the good’s standard accessories, spare parts, tools, or instructional or other information materials: (a) consumables that must be replaced at regular intervals, such as dust collectors for an air-conditioning system; (b) carrying cases for equipment; (c) dust covers for machines; (d) operational manuals for vehicles; (e) brackets to attach equipment to a wall; (f) bicycle tool kits or car jacks; (g) sets of wrenches to change the bit on a chuck; (h) brushes or other tools to clean out machines; and (i) electrical cords and power bars for use with electronic goods.
CUSMA Rules of Origin Regulations — (a)
(a) consumables that must be replaced at regular intervals, such as dust collectors for an air-conditioning system;
CUSMA Rules of Origin Regulations — (e)
(e) brackets to attach equipment to a wall;
CUSMA Rules of Origin Regulations — (g)
(g) sets of wrenches to change the bit on a chuck;
CUSMA Rules of Origin Regulations — (h)
(h) brushes or other tools to clean out machines; and
CUSMA Rules of Origin Regulations — (i)
(i) electrical cords and power bars for use with electronic goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 8: Value of indirect materials that are assists Producer A, located in a CUSMA country, produces a well-water pump that is subject to a regional value content requirement. The producer chooses to calculate the regional value content of that good using the net cost method. Producer A buys a mould-injected plastic water flow sensor from Producer B, located in the same CUSMA country, and uses it in the production of the pump. Producer A provides to Producer B, at no charge, moulds to be used in the production of the water flow sensor. The moulds have a value of $100 which is expensed in the current year by Producer A. The water flow sensor is subject to a regional value content requirement which Producer B chooses to calculate using the net cost method. For the purpose of determining the value of non-originating materials in order to calculate the regional value content of the water flow sensor, the moulds are considered to be an originating material because they are an indirect material. However, under subsection (13) they have a value of nil because the cost of the moulds with respect to the water flow sensor is not recorded on the books of Producer B. It is determined that the water flow sensor is a non-originating material. The cost of the moulds that is recorded on the books of Producer A is expensed in the current year. Under section 4 of Schedule 6, the value of the moulds (see subparagraph 4(1)(b)(ii) of Schedule 6) must be included in the value of the water flow sensor by Producer A when calculating the regional value content of the well-water pump. The cost of the moulds, although recorded on the books of producer A, cannot be included as a separate cost in the net cost of the well-water pump because it is already included in the value of the water flow sensor. The entire cost of the water flow sensor, which includes the cost of the moulds, is included in the value of non-originating materials for the purposes of calculating the regional value content of the well-water pump.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces a well-water pump that is subject to a regional value content requirement. The producer chooses to calculate the regional value content of that good using the net cost method. Producer A buys a mould-injected plastic water flow sensor from Producer B, located in the same CUSMA country, and uses it in the production of the pump. Producer A provides to Producer B, at no charge, moulds to be used in the production of the water flow sensor. The moulds have a value of $100 which is expensed in the current year by Producer A.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The water flow sensor is subject to a regional value content requirement which Producer B chooses to calculate using the net cost method. For the purpose of determining the value of non-originating materials in order to calculate the regional value content of the water flow sensor, the moulds are considered to be an originating material because they are an indirect material. However, under subsection (13) they have a value of nil because the cost of the moulds with respect to the water flow sensor is not recorded on the books of Producer B.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
It is determined that the water flow sensor is a non-originating material. The cost of the moulds that is recorded on the books of Producer A is expensed in the current year. Under section 4 of Schedule 6, the value of the moulds (see subparagraph 4(1)(b)(ii) of Schedule 6) must be included in the value of the water flow sensor by Producer A when calculating the regional value content of the well-water pump. The cost of the moulds, although recorded on the books of producer A, cannot be included as a separate cost in the net cost of the well-water pump because it is already included in the value of the water flow sensor. The entire cost of the water flow sensor, which includes the cost of the moulds, is included in the value of non-originating materials for the purposes of calculating the regional value content of the well-water pump.
CUSMA Rules of Origin Regulations — 9
for in heading 52.08. The change from non-originating cotton yarn to woven fabric of cotton is insufficient to satisfy the applicable change in tariff classification for heading 52.08, which is a change from any heading outside headings 52.08 through 52.12, except from certain headings, under which various yarns, including cotton yarn provided for in heading 52.05, are classified. Therefore, the woven fabric of cotton that Producer B produces from non-originating cotton yarn produced by Producer A is a non-originating good. However, Producer B can choose to accumulate the production of Producer A. The rule for heading 52.08, under which the cotton fabric is classified, does not exclude a change from heading 52.03, under which carded or combed cotton is classified. Therefore, under subsection (1), the change from carded or combed cotton provided for in heading 52.03 to the woven fabric of cotton provided for in heading 52.08 satisfies the applicable change of tariff classification for heading 52.08. The woven fabric of cotton is considered as an originating good. Producer B, in order to choose to accumulate Producer A’s production, must have a statement described in subparagraph (7)(a)(ii).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
t of the bearings, per unit: $2.85 Under the net cost method, the regional value content of the bearings is RVC = (NC − VNM) ÷ NC × 100 = ($2.85 − $0.85) ÷ $2.85× 100 = 70.2% Therefore, the bearings are originating goods. Situation D Producer B chooses to accumulate costs incurred by Producer A with respect to the bearing rings used in the production of the bearings. Producer A provides to Producer B a statement described in paragraph (2)(b) that specifies an amount equal to the value of other product costs used in the production of the finished bearing rings ($0.35). The net cost of the bearings (per unit) is calculated as follows: Product costs: Value of originating materials $0.45 Value of non-originating materials ($1.50 − $0.35) $1.15 Other product costs ($0.75 + $0.35) $1.10 Period costs (including $0.05 in excluded costs): $0.15 Other costs: $0.05 Total cost of the bearings per unit: $2.90 Excluded costs (included in period costs): $0.05 Net cost of the bearings, per unit: $2.85 Under the net cost method, the regional value content of the bearing is RVC = (NC − VNM) ÷ NC × 100 = ($2.85 − $1.15) ÷ $2.85 × 100 = 59.6% Therefore, the bearings are originating goods. Situation E Producer B chooses to accumulate costs incurred by Producer A with respect to the bearing rings used in the production of the bearings. Producer A provides to Producer B a signed statement described in subsection (3) that specifies the value of non-originating materials used in the production of the finished bearing rings ($0.75). Producer B chooses to calculate the regional value content of the bearings under the transaction value method. The regional value content of the bearings (per unit) is calculated as follow: Product costs: Transaction value of the bearings, per unit $3.15 Costs incurred, per unit, in the international shipment of the good (included in transaction value of the bearings) $0.15 Transaction value, per unit, adjusted to exclude any costs incurred in the international shipment of the good $3.00 Value of non-originating materials (value, per unit, of the unfinished bearing rings imported by Producer A) $0.75 Under the transaction value method, the regional value content of the bearing is RVC = (TV − VNM) ÷ TV × 100 = ($3.00 − $0.75) ÷ $3.00 × 100 = 75% Therefore, because the bearings have a regional value content of at least 60% under transaction value method, the bearings are originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in CUSMA country A, imports unfinished bearing rings provided for in subheading 8482.99 into CUSMA country A from the territory of a non-CUSMA country. Producer A further processes the unfinished bearing rings into finished bearing rings, which are of the same subheading. The finished bearing rings of Producer A do not satisfy an applicable change in tariff classification and therefore do not qualify as originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The net cost of the finished bearing rings (per unit) is calculated as follows: Product costs: Value of originating materials $0.15 Value of non-originating materials $0.75 Other product costs $0.35 Period costs (including $0.05 in excluded costs): $0.15 Other costs: $0.05 Total cost of the finished bearing rings, per unit: $1.45 Excluded costs (included in period costs): $0.05 Net cost of the finished bearing rings, per unit: $1.40
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Product costs: Value of originating materials $0.15 Value of non-originating materials $0.75 Other product costs $0.35
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Value of non-originating materials $0.75
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Period costs (including $0.05 in excluded costs): $0.15
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Other costs: $0.05 Total cost of the finished bearing rings, per unit: $1.45 Excluded costs (included in period costs): $0.05 Net cost of the finished bearing rings, per unit: $1.40
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Total cost of the finished bearing rings, per unit: $1.45
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Excluded costs (included in period costs): $0.05
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Net cost of the finished bearing rings, per unit: $1.40
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A sells the finished bearing rings to Producer B, who is located in CUSMA country A, for $1.50 each. Producer B further processes them into bearings and intends to export the bearings to CUSMA country B. Although the bearings satisfy the applicable change in tariff classification, the bearings are subject to a regional value content requirement.