CUSMA Rules of Origin Regulations — 6
rmed 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. 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. 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.