CUSMA Rules of Origin Regulations — 5
De minimis rule — non-originating materials 5 (1) Except as otherwise provided in subsection (3), a good is originating in the territory of a CUSMA country if (a) the value of all non-originating materials that are used in the production of the good and that do not undergo an applicable change in tariff classification as a result of production occurring entirely in the territory of one or more of the CUSMA countries is not more than 10% (i) of the transaction value of the good determined in accordance with Schedule 3 and adjusted to exclude any costs incurred in the international shipment of the good, or (ii) of the total cost of the good; (b) if the good is also subject to a regional value content requirement under the rule in which the applicable change in tariff classification is specified, the value of those non-originating materials is taken into account in calculating the regional value content of the good in accordance with the method set out for that good; and (c) the good satisfies all other applicable requirements of these Regulations. Only one rule to satisfy (2) If Schedule 1 sets out two or more alternative rules for the tariff provision under which the good is classified and if the good is considered an originating good under one of those rules in accordance with subsection (1), the good need not satisfy the requirements of any alternative rule in order to be originating. Exceptions (3) Subsections (1) and (2) do not apply to (a) a non-originating material of any of headings 04.01 through 04.06 or a non-originating material that is a dairy preparation containing over 10% by dry weight of milk solids of subheading 1901.90 or 2106.90, used in the production of a good of any of headings 04.01 through 04.06; (b) a non-originating material of any of headings 04.01 through 04.06 or a non-originating material that is a dairy preparation containing over 10% by dry weight of milk solids of subheading 1901.90 or 2106.90, used in the production of (i) infant preparations containing over 10% by dry weight of milk solids of subheading 1901.10, (ii) mixes and doughs, containing over 25% by dry weight of butterfat, not put up for retail sale of subheading 1901.20, (iii) dairy preparations containing over 10% by dry weight of milk solids of subheading 1901.90 or 2106.90, (iv) goods of heading 21.05, (v) beverages containing milk of subheading 2202.99, or (vi) animal feeds containing over 10% by dry weight of milk solids of subheading 2309.90; (c) a non-originating material of heading 08.05 or any of subheadings 2009.11 through 2009.39 that is used in the production of a good of any of subheadings 2009.11 through 2009.39 or a fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, of subheading 2106.90 or 2202.99; (d) a non-originating material of Chapter 9 that is used in the production of instant coffee, not flavoured, of subheading 2101.11; (e) a non-originating material of Chapter 15 that is used in the production of a good of any of headings 15.01 through 15.08, 15.12, 15.14 or 15.15; (f) a non-originating material of heading 17.01 that is used in the production of a good of any of headings 17.01 through 17.03; (g) a non-originating material of Chapter 17 or heading 18.05 that is used in the production of a good of subheading 1806.10; (h) a non-originating material that is a pear, peach or apricot of Chapter 8 or 20 and that is used in the production of a good of heading 20.08; (i) a non-originating material that is a single juice ingredient of heading 20.09 that is used in the production of a good of subheading 2009.90 or tariff item 2106.90.92 or 2202.99.22; (j) a non-originating material of any of headings 22.03 through 22.08 that is used in the production of a good of heading 22.07 or 22.08; (k) a non-originating material that is used in the production of a good of any of Chapters 1 through 27, unless the non-originating material is of a different su