CUSMA Rules of Origin Regulations — 5
 if they satisfy the specified regional value content requirement. However, under subsection (4), if the value of the non-originating materials does not exceed 10% of the transaction value of the barbers’ chairs or the total cost of the barbers’ chairs, whichever is applicable, the barbers’ chairs are considered originating goods and are not required to satisfy the regional value content requirement set out in subparagraph 3 (4)(a)(ii). Example 6 (subsection (6)): Producer A, located in a CUSMA country, manufactures an infant diaper, classified in heading 96.19, consisting of an outer shell of 94% nylon and 6% elastomeric fabric by weight and a terry knit cotton absorbent crotch. All materials used are produced in a CUSMA country, except for the elastomeric fabric, which is from a non-CUSMA country. The elastomeric fabric is only 6% of the total weight of the diaper. The good satisfies all other applicable requirements of these Regulations. Therefore, the product is considered originating from a CUSMA country as per subsection (6). Example 7 (subsection (6)): Producer A, located in a CUSMA country, produces cotton fabric of subheading 5209.11 from cotton yarn of subheading 5205.11. This cotton yarn is also produced by Producer A. The product-specific rule of origin set out in Schedule 1 for subheading 5209.11, under which the fabric is classified, specifies a change in tariff classification from any other heading outside 52.08 through 52.12, except from certain headings under which certain yarns are classified, including cotton yarn of subheading 5205.11. Therefore, with respect to the part of the rule that specifies a change in tariff classification, in order for the fabric to qualify as an originating good, the cotton yarn that is used by Producer A in the production of the fabric must be an originating material. At one point Producer A uses a small quantity of non-originating cotton yarn in the production of the cotton fabric. Under subsection (6), if the total weight of the non-originating cotton yarn does not exceed 10% of the total weight of the cotton fabric, it would be considered an originating good. Example 8 (subsections (7) and (8)): Producer A, located in a CUSMA country, produces women’s dresses of subheading 6204.41 from fine wool fabric of heading 51.12. This fine wool fabric, also produced by Producer A, is the component of the dress that determines its tariff classification in subheading 6204.41. The product-specific rule of origin set out in Schedule 1 for subheading 6204.41, under which the dress is classified, specifies both a change in tariff classification from any other Chapter, except from those headings and Chapters under which certain yarns and fabrics, including combed wool yarn and wool fabric, are classified, and a requirement that the good be cut and sewn or otherwise assembled in the territory of one or more of the CUSMA countries. In addition, narrow elastics classified in subheading 5806.20 or heading 60.02 and sewing thread classified in heading 52.04, 54.01 or 55.08 or yarn classified in heading 54.02 that is used as sewing thread, must be formed and finished in the territory of one or more of the CUSMA countries for the dress to be originating. Furthermore, if the dress has a pocket, the pocket bag fabric must be formed and finished in the territory of one or more of the CUSMA countries for the dress to be originating. Therefore, with respect to that part of the rule that specifies a change in tariff classification, in order for the dress to qualify as an originating good, the combed wool yarn and the fine wool fabric made therefrom that are used by Producer A in the production of the dress must be originating materials. In addition, the sewing thread, narrow elastics and pocket bags that are used 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-originati