CUSMA Rules of Origin Regulations — 5
n 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 subheading than the good for which origin is to be determined under this section; or (l) a non-originating material that is used in the production of a good of any of Chapters 50 through 63. De minimis rule — regional value content requirement (4) A good that is subject to a regional value content requirement is originating in the territory of a CUSMA country and is not required to satisfy that requirement if (a) the value of all non-originating materials used in the production of the good 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; and (b) the good satisfies all other applicable requirements of these Regulations. Value non-originating materials — subsections (1) and (4) (5) For the purposes of subsections (1) and (4), the value of non-originating materials is to be determined in accordance with subsections 8 (1) to (6). De minimis rule — textile goods (6) A good of any of Chapters 50 through 60 or heading 96.19 that contains non-originating materials that do not satisfy the applicable change in tariff classification requirements is considered originating in the territory of a CUSMA country if (a) the total weight of all those non-originating materials is not more than 10% of the total weight of the good, of which the total weight of elastomeric content may not exceed 7% of the total weight of the good; and (b) the good satisfies all other applicable requirements of these Regulations. De minimis rule — apparel and textile goods (7) A good of any of Chapters 61 through 63 that contains non-originating fibres or yarns in the component of the good that determines the tariff classification that do not satisfy the applicable change in tariff classification requirements is considered originating in the territory of a CUSMA country if (a) the total weight of all those non-originating materials 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 (b) the good satisfies all other applicable requirements of these Regulations. Component (8) For the purposes of subsection (7), (a) the component of a good that determines the tariff classification of that good must be identified in accordance with the first of the following General Rules for the Interpretation of the Harmonized System under which the identification can be determined, namely Rule 3(b), Rule 3(c) and Rule 4; and (b) if the component of the good that determines the tariff classification of the good is a blend of two or more fibres or yarns, all fibres and yarns used in the production of the component must be taken into account in determining the weight of fibres and yarns in that component. Applicable requirements — materials used in component (9) For the purpose of determining if a good of any of Chapters 61 through 63 is originating, the requirements set out in Schedule 1 only apply to the component that determines the tariff classification of the good. Materials that are not part of the component that determines the tariff classification of the good are disregarded when determining if a good is originating. Similarly, for the purposes of this section as applicable to a good of any of Chapters 61 through 63, only the materials used in the component that determines the tariff classification is taken into account in the de minimis calculation. Exception (10) Subsection (7) does not apply to sewing thread, narrow elastic bands or pocket bag fabric that is subject to the requirements set out in Chapter 61, Notes 2 through 4, Chapter 62, Notes 3 through 5 or for coated fabric as set out in