CUSMA Rules of Origin Regulations — 3
et out in the rule for the good. Producer A must determine whether the non-originating materials used in the production of the component that determines the tariff classification of the women’s wool overcoats (the woven fabric) satisfy the requirements established in the product-specific rule of origin, which requires both a change in tariff classification from any other Chapter, except from some headings and Chapters under which certain yarns and fabrics are classified, and that the good be cut or knit to shape and sewn or otherwise assembled in the territory of one or more of the CUSMA countries. The non-originating silk yarn of heading 50.04 used by Producer A satisfies the change in tariff classification requirement, since heading 50.04 is not excluded under the product-specific rule of origin. Additionally, the overcoats are cut and sewn in the territory of one of the CUSMA countries, and therefore the women’s wool overcoats would be considered to be originating goods. Example 2 (subsection (2)): Producer A, located in a CUSMA country, produces t-shirts of subheading 6109.10 from knit cotton and polyester fabric (60% cotton and 40% polyester), which are also produced by Producer A using originating cotton yarn of heading 52.05 and polyester yarn made of non-originating filaments of heading 54.02. As the t-shirt is made of a single fabric and classified under Rule 1 of the General Rules of Interpretation of the Harmonized System in subheading 6109.10, this fabric is the component that determines tariff classification. Therefore, to be considered originating by application of the tariff-shift rule for subheading 6109.10, each of the non-originating materials used in the production of the t-shirt must undergo the required change in tariff classification. In this case, the non-originating polyester filaments of heading 54.02 used in the production of the t-shirts do not satisfy the change in tariff classification set out in the product-specific rule of origin. In addition, the weight of the non-originating polyester is over the de minimis allowance. Therefore, the t-shirts do not qualify as originating goods. Example 3 (subsection (2)): Note 2 contained in Section XI – Textiles and Textile Articles (Chapters 50 through 63) Producer A, located in a CUSMA country, produces fabrics of subheading 5211.42 from originating cotton and polyester yarns and non-originating rayon filament. For the purpose of determining if the fabrics are originating goods, Producer A must consider Note 2 of Section XI of Schedule 1, which indicates goods classified in any of Chapters 50 through 63 is considered to be originating, regardless of whether the rayon filaments used in its production are non-originating materials, if the good meets the requirements of the applicable product-specific rule of origin. With the exception of the rayon filaments of heading 54.03, that Note 2 of Section XI of Schedule 1 allows, all of the materials used in the production of the fabrics are originating materials, and since General Interpretative Note (d) of Schedule 1 provides that a change in tariff classification requirement of a product-specific rule of origin applies only to non-originating materials, the fabrics are considered to be originating goods. 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