GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 4 (subsection (2)): Notes 2 and 5 of Chapter 62 regarding the interpretation of the component that determines the tariff classification and the requirement for pockets. Producer A, located in a CUSMA country, produces men’s suits classified in subheading 6203.12, which are made of three fabrics: a non-originating fabric of subheading 5407.61 used to make a visible lining, an originating fabric of subheading 5514.41 used to make the outer part of the suit and a non-originating fabric of subheading 5513.21 used to make pocket bags. For the purpose of determining if the men’s suits are originating goods, Producer A should take into account Note 2 of Chapter 62 of Schedule 1, which indicates that the applicable rule will apply only to the component that determines the tariff classification of the good and that the component must satisfy the tariff change requirements set out in the rule for that good. The originating fabric used to make the outer part of the suit is the component of the suit that determines the tariff classification in subheading 6203.12 because it constitutes the predominant material by weight and makes up the largest surface area of the suit. The origin of the fabric used as visible lining is disregarded for the purpose of determining whether the suit is an originating good since that fabric is not considered the component that determines the tariff classification and there are no Chapter Notes related to visible lining for apparel goods. Additionally, Producer A uses a non-originating fabric of subheading 5513.21 for the pocket bags of the suits, so Producer A should take into account the second paragraph of Note 5 of Chapter 62 of Schedule 1, which requires that the pocket bag fabric must be formed and finished in the territory of one or more of the CUSMA countries from yarn wholly formed in one or more of the CUSMA countries. In this case, for the production of men’s suits, Producer A uses non-originating fabric for the pocket bag, and that fabric was not formed and finished in the territory of one or more of the CUSMA countries; therefore, the suits would be considered to be non-originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces men’s suits classified in subheading 6203.12, which are made of three fabrics: a non-originating fabric of subheading 5407.61 used to make a visible lining, an originating fabric of subheading 5514.41 used to make the outer part of the suit and a non-originating fabric of subheading 5513.21 used to make pocket bags.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
For the purpose of determining if the men’s suits are originating goods, Producer A should take into account Note 2 of Chapter 62 of Schedule 1, which indicates that the applicable rule will apply only to the component that determines the tariff classification of the good and that the component must satisfy the tariff change requirements set out in the rule for that good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The originating fabric used to make the outer part of the suit is the component of the suit that determines the tariff classification in subheading 6203.12 because it constitutes the predominant material by weight and makes up the largest surface area of the suit. The origin of the fabric used as visible lining is disregarded for the purpose of determining whether the suit is an originating good since that fabric is not considered the component that determines the tariff classification and there are no Chapter Notes related to visible lining for apparel goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Additionally, Producer A uses a non-originating fabric of subheading 5513.21 for the pocket bags of the suits, so Producer A should take into account the second paragraph of Note 5 of Chapter 62 of Schedule 1, which requires that the pocket bag fabric must be formed and finished in the territory of one or more of the CUSMA countries from yarn wholly formed in one or more of the CUSMA countries.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In this case, for the production of men’s suits, Producer A uses non-originating fabric for the pocket bag, and that fabric was not formed and finished in the territory of one or more of the CUSMA countries; therefore, the suits would be considered to be non-originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 5 (subsection (7)): A wholesaler located in CUSMA Country A imports non-originating storage units provided for in subheading 8471.70 from outside the territory of the CUSMA countries. The wholesaler resells the storage units to a buyer in CUSMA Country B. While in the territory of Country A, the storage units do not undergo any production and therefore do not meet the rule in Schedule 1 for goods of subheading 8471.70 when imported into the territory of CUSMA Country B. Despite the rule in Schedule 1, the storage units of subheading 8471.70 are considered originating goods when they are imported into the territory of CUSMA Country B because they are referred to in Schedule 2 and were imported from the territory of another CUSMA country. The buyer in CUSMA Country B subsequently uses the storage units provided for in subheading 8471.70 as a material in the production of another good. For the purpose of determining whether the other good is originating, the buyer in CUSMA Country B may treat the storage units of subheading 8471.70 as originating materials.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
A wholesaler located in CUSMA Country A imports non-originating storage units provided for in subheading 8471.70 from outside the territory of the CUSMA countries. The wholesaler resells the storage units to a buyer in CUSMA Country B. While in the territory of Country A, the storage units do not undergo any production and therefore do not meet the rule in Schedule 1 for goods of subheading 8471.70 when imported into the territory of CUSMA Country B.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Despite the rule in Schedule 1, the storage units of subheading 8471.70 are considered originating goods when they are imported into the territory of CUSMA Country B because they are referred to in Schedule 2 and were imported from the territory of another CUSMA country.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The buyer in CUSMA Country B subsequently uses the storage units provided for in subheading 8471.70 as a material in the production of another good. For the purpose of determining whether the other good is originating, the buyer in CUSMA Country B may treat the storage units of subheading 8471.70 as originating materials.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 6 (subsection (8)): Self-produced materials as materials for the purpose of determining whether non-originating materials undergo an applicable change in tariff classification Producer A, located in a CUSMA country, produces Good A. In the production process, Producer A uses the originating Material X and the non-originating Material Y to produce Material Z. Material Z is a self-produced material that will be used to produce Good A. The rule set out in Schedule 1 for the heading under which Good A is classified specifies a change in tariff classification from any other heading. In this case, both Good A and the non-originating Material Y are of the same heading. However, the self-produced Material Z is classified in a different heading than that of Good A. For the purpose of determining whether the non-originating materials that are used in the production of Good A undergo the applicable change in tariff classification, Producer A has the option of considering the self-produced Material Z to be the material that must undergo a change in tariff classification. As Material Z is classified in a different heading than that of Good A, Material Z satisfies the requirements of the applicable change in tariff classification and Good A would qualify as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces Good A. In the production process, Producer A uses the originating Material X and the non-originating Material Y to produce Material Z. Material Z is a self-produced material that will be used to produce Good A.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The rule set out in Schedule 1 for the heading under which Good A is classified specifies a change in tariff classification from any other heading. In this case, both Good A and the non-originating Material Y are of the same heading. However, the self-produced Material Z is classified in a different heading than that of Good A.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
For the purpose of determining whether the non-originating materials that are used in the production of Good A undergo the applicable change in tariff classification, Producer A has the option of considering the self-produced Material Z to be the material that must undergo a change in tariff classification. As Material Z is classified in a different heading than that of Good A, Material Z satisfies the requirements of the applicable change in tariff classification and Good A would qualify as an originating good.
CUSMA Rules of Origin Regulations — 4
f-propelled bulldozers. Once the recovered engines are used in the production of, and incorporated into, the remanufactured bulldozers, the recovered engines would be treated considered as originating materials for the purpose of determining if the remanufactured bulldozers are originating. The rule of origin set out in Schedule 1 for subheading 8429.11 specifies a change in tariff classification from any other subheading. In this case, because the recovered engines are treated as originating materials, and the non-originating materials, classified in subheading 8413.91, satisfy the requirements set out in Schedule 1, the remanufactured bulldozers are originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 1: In July 2023, Producer A located in a CUSMA country manufactures water pumps of subheading 8413.30 for use in automotive engines. In addition to selling new water pumps, Producer A also sells water pumps that incorporate used parts. To obtain the used parts, Producer A disassembles used water pumps in a CUSMA country and cleans, inspects, and tests the individual parts. Accordingly, these parts qualify as recovered materials. The water pumps that Producer A manufactures incorporate the recovered materials, have the same life expectancy and performance as new water pumps and are sold with a warranty that is similar to the warranty for new water pumps. The water pumps therefore qualify as remanufactured goods and the recovered materials are treated as originating materials when determining whether the good qualifies as an originating good. In this case, because the water pumps are for use in an automotive good, the provisions of Part 6 apply. Because the water pump is a part listed in Table B of Part 6, the RVC required is 70% under the net cost method or 80% under the transaction value method. The producer chooses to calculate the regional value content of the good under the net cost method as follows: Water pump net cost = $ 1,000 Value of originating recovered materials = $600 Value other originating materials = $20 Value of non-originating materials = $280 RVC = (NC − VNM) ÷ NC × 100 = ($1,000 − $280) ÷ $1,000 × 100 = 72% The remanufactured water pumps are originating goods because their regional value content exceeds the 70% requirement by net cost method.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In July 2023, Producer A located in a CUSMA country manufactures water pumps of subheading 8413.30 for use in automotive engines. In addition to selling new water pumps, Producer A also sells water pumps that incorporate used parts.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
To obtain the used parts, Producer A disassembles used water pumps in a CUSMA country and cleans, inspects, and tests the individual parts. Accordingly, these parts qualify as recovered materials.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The water pumps that Producer A manufactures incorporate the recovered materials, have the same life expectancy and performance as new water pumps and are sold with a warranty that is similar to the warranty for new water pumps. The water pumps therefore qualify as remanufactured goods and the recovered materials are treated as originating materials when determining whether the good qualifies as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In this case, because the water pumps are for use in an automotive good, the provisions of Part 6 apply. Because the water pump is a part listed in Table B of Part 6, the RVC required is 70% under the net cost method or 80% under the transaction value method.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The producer chooses to calculate the regional value content of the good under the net cost method as follows:
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Value of originating recovered materials = $600
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Value of non-originating materials = $280
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The remanufactured water pumps are originating goods because their regional value content exceeds the 70% requirement by net cost method.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 2: Producer A, located in a CUSMA country, uses recovered materials derived in the territory of a CUSMA country in the production of self-propelled bulldozers classified in subheading 8429.11. In the production of the bulldozers, Producer A uses recovered engines classified in heading 84.07. The engines are recovered materials because they are disassembled from used bulldozers in a CUSMA country and then subject to cleaning, inspecting and technical tests to verify that they are in sound working condition. In addition to the recovered materials, other non-originating materials classified in subheading 8413.91 are also used in the production of the bulldozers. Producer A’s bulldozers are considered a remanufactured good because they are classified in a tariff provision set out in the definition of remanufactured good , are partially composed of recovered materials, have a similar life expectancy and perform the same as or similar to new self-propelled bulldozers and have a factory warranty similar to new self-propelled bulldozers. Once the recovered engines are used in the production of, and incorporated into, the remanufactured bulldozers, the recovered engines would be treated considered as originating materials for the purpose of determining if the remanufactured bulldozers are originating. The rule of origin set out in Schedule 1 for subheading 8429.11 specifies a change in tariff classification from any other subheading. In this case, because the recovered engines are treated as originating materials, and the non-originating materials, classified in subheading 8413.91, satisfy the requirements set out in Schedule 1, the remanufactured bulldozers are originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, uses recovered materials derived in the territory of a CUSMA country in the production of self-propelled bulldozers classified in subheading 8429.11.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In the production of the bulldozers, Producer A uses recovered engines classified in heading 84.07. The engines are recovered materials because they are disassembled from used bulldozers in a CUSMA country and then subject to cleaning, inspecting and technical tests to verify that they are in sound working condition.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In addition to the recovered materials, other non-originating materials classified in subheading 8413.91 are also used in the production of the bulldozers.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A’s bulldozers are considered a remanufactured good because they are classified in a tariff provision set out in the definition of remanufactured good , are partially composed of recovered materials, have a similar life expectancy and perform the same as or similar to new self-propelled bulldozers and have a factory warranty similar to new self-propelled bulldozers.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Once the recovered engines are used in the production of, and incorporated into, the remanufactured bulldozers, the recovered engines would be treated considered as originating materials for the purpose of determining if the remanufactured bulldozers are originating.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The rule of origin set out in Schedule 1 for subheading 8429.11 specifies a change in tariff classification from any other subheading.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In this case, because the recovered engines are treated as originating materials, and the non-originating materials, classified in subheading 8413.91, satisfy the requirements set out in Schedule 1, the remanufactured bulldozers are originating goods.
CUSMA Rules of Origin Regulations — 5
stomeric 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 of Schedule 1 applicable to the women’s blouses of subheading 6206.40 requires a change in tariff classification from any other Chapter, except from those headings and Chapters under which certain yarns and fabrics, including polyester, lyocell and elastomeric filament yarns, are classified and a requirement that the good is cut and sewn or otherwise assembled in the territory of one or more of the CUSMA countries. In this case, the non-originating lyocell yarn of subheading 5403.49 and the non-originating elastomeric filament yarn of subheading 5402.44 do not satisfy the change in tariff classification required by the product-specific rule of origin of Schedule 1, because the product-specific rule of origin for heading 62.06 excludes a change from Chapter 54 to heading 62.06. However, according to subsection (7), a textile or apparel good classified in any of Chapters 61 through 63 that contains non-originating fibres or yarns in the component of the good that determines its tariff classification that do not satisfy the applicable change in tariff classification, is nonetheless considered an originating good if the total weight of all those fibres or yarns is not more than 10% of the total weight of that component, of which the total weight of elastomeric content may not exceed 7% of the total weight of the component, and such good meets all the other applicable requirements of these Regulations. Since the weight of the non-originating materials used by Producer A does not exceed 10% of the total weight of the component that determines the tariff classification of the women’s blouses, and the weight of elastomeric content also does not exceed 7% of such total weight, the women’s blouses qualify as originating goods. Example 12 (subsection (10)): A producer located in a country manufactures boys’ swimwear of subheading 6211.11 from fabric that has been woven in a CUSMA country from yarn spun in a CUSMA country; however, the producer uses non-originating narrow elastic of heading 60.02 in the waist-band of the swimwear. As a result of the use of the non-originating narrow elastic of heading 60.02 in the waistband, and provided the garment is imported into a CUSMA country at least 18 months after the Agreement enters into force, the swimwear is considered non-originating because it does not satisfy the requirement set out in Note 3 of Chapter 62. In addition, subsection (7) does not apply to the narrow elastic of heading 60.02 and the good is therefore a non-originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 1 (subsection (1)): Producer A, located in a CUSMA country, uses originating materials and non-originating materials in the production of aluminium powder of heading 76.03. The product-specific rule of origin set out in Schedule 1 for heading 76.03 specifies a change in tariff classification from any other Chapter. There is no applicable regional value content requirement for this heading. Therefore, in order for the aluminium powder 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 76 in the production of the aluminum powder. All of the materials used in the production of the aluminium powder are originating materials, with the exception of a small amount of aluminium scrap of heading 76.02, that is in the same Chapter as the aluminium powder. Under subsection (1), if the value of the non-originating aluminium scrap does not exceed 10% of the transaction value of the aluminium powder or the total cost of the aluminium powder, whichever is applicable, the aluminium powder would be considered an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, uses originating materials and non-originating materials in the production of aluminium powder of heading 76.03. The product-specific rule of origin set out in Schedule 1 for heading 76.03 specifies a change in tariff classification from any other Chapter. There is no applicable regional value content requirement for this heading. Therefore, in order for the aluminium powder 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 76 in the production of the aluminum powder.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
All of the materials used in the production of the aluminium powder are originating materials, with the exception of a small amount of aluminium scrap of heading 76.02, that is in the same Chapter as the aluminium powder. Under subsection (1), if the value of the non-originating aluminium scrap does not exceed 10% of the transaction value of the aluminium powder or the total cost of the aluminium powder, whichever is applicable, the aluminium powder would be considered an originating good.