CUSMA Rules of Origin Regulations — 6
Set 6 (1) This section applies to a good that is classified as a set as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System. Requirement (2) Except as otherwise set out in Schedule 1, a set is originating in the territory of a CUSMA country only if each good in the set is an originating good and both the set and the goods in the set meet the other applicable requirements of these Regulations. Exceptions (3) Despite subsection (2), a set is originating only if the value of all the non-originating goods included in the set does not exceed 10% of the value of the set. Value (4) For the purposes of subsection (3), the value of non-originating goods in the set and the value of the set must be calculated in the same manner as the value of non-originating materials is determined in accordance with section 8 and the value of the good determined in accordance with section 7 . Example (5) Each of the following examples is an “Example” referred to in subsection 1 (4). Example 1: Paint set Producer A assembles a paint set for arts and crafts. The set includes tubes of paint, paint brushes and paper, all presented in a reusable wooden box. The paint set for arts and crafts is classified in subheading 3210.00 as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System and, as a result, this section applies with respect to that set. The paint, paper and wooden box are all originating as they undergo the changes required in Schedule 1. The paint brushes, which represent 4% of the value of the set, are produced in the territory of a non-CUSMA country and are therefore non-originating. The set is nonetheless originating. Example 2 (subsection (2)): Producer A, located in a CUSMA country, uses originating materials and non-originating materials to assemble a manicure set of subheading 8214.20. The set includes a nail nipper, cuticle scissors, a nail clipper and a nail file with cardboard support, all presented in a plastic case with zipper. The items are not classified as a set as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System. The Harmonized System specifies that manicure sets are classified in subheading 8214.20. This means that the specific rule of origin set out in Schedule 1 applies. This rule requires a change in tariff classification from any other Chapter. In order for the manicure set to qualify as an originating good under the rule set out in Schedule 1, Producer A may not use any non-originating material of Chapter 82 in the assembly of the manicure set. In this case, Producer A, located in a CUSMA country, produces the nail nipper, cuticle scissors and nail clipper included in the set, and all qualify as originating goods. Despite being classified in the same Chapter as the manicure set (Chapter 82), the originating nail nipper, the cuticle scissors and the nail clipper satisfy the requirement of the applicable change in tariff classification to the manicure set. The nail file with cardboard support (6805.20) and the plastic case with zipper (4202.12) are imported from outside the territories of the CUSMA countries; however, these items are not classified in Chapter 82, so they satisfy the applicable change in tariff classification. Therefore, the manicure set is an originating good. Example 3 (subsection (3)): Pants set Producer A makes a pants set, consisting of men’s cotton denim trousers and a polyester belt, packed together for a retail sale. The trousers are made of cotton fabric formed and finished from yarn in a CUSMA country. The sewing thread is formed and finished in a CUSMA country. The pocket bag fabric is formed and finished in a CUSMA country, of yarn wholly formed 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 threa