GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 2 (subsection (2)): Producer A, located in a CUSMA country, uses originating materials and non-originating materials in the production of fans of subheading 8414.59. There are two alternative rules established in Schedule 1 for subheading 8414.59, one of which specifies a change in tariff classification from any other heading. The other rule specifies both a change in tariff classification from the subheading under which parts of the fans are classified and a regional value content requirement. In order for the fan to qualify as an originating good under the first of the alternative rules, all of the materials that are classified under the subheading for parts of fans and are used in the production of the completed fan must be originating materials. In this case, all of the non-originating materials used in the production of the fan satisfy the change in tariff classification set out in the rule that specifies a change in tariff classification from any other heading, with the exception of one non-originating material that is classified under the subheading for parts of fans. Under subsection (1), if the value of the non-originating material that does not satisfy the change in tariff classification specified in the first rule does not exceed 10% of the transaction value of the fan or the total cost of the fan, whichever is applicable, the fan would be considered an originating good. Therefore, under subsection (2), the fan would not be required to satisfy the alternative rule that specifies both a change in tariff classification and a regional value content requirement.
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 fans of subheading 8414.59. There are two alternative rules established in Schedule 1 for subheading 8414.59, one of which specifies a change in tariff classification from any other heading. The other rule specifies both a change in tariff classification from the subheading under which parts of the fans are classified and a regional value content requirement. In order for the fan to qualify as an originating good under the first of the alternative rules, all of the materials that are classified under the subheading for parts of fans and are used in the production of the completed fan must be originating materials.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In this case, all of the non-originating materials used in the production of the fan satisfy the change in tariff classification set out in the rule that specifies a change in tariff classification from any other heading, with the exception of one non-originating material that is classified under the subheading for parts of fans. Under subsection (1), if the value of the non-originating material that does not satisfy the change in tariff classification specified in the first rule does not exceed 10% of the transaction value of the fan or the total cost of the fan, whichever is applicable, the fan would be considered an originating good. Therefore, under subsection (2), the fan would not be required to satisfy the alternative rule that specifies both a change in tariff classification and a regional value content requirement.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 3 (subsection (2)): Producer A, located in a CUSMA country, uses originating materials and non-originating materials in the production of a copper anode of heading 74.02. The product-specific rule of origin set out in Schedule 1 for heading 74.02 specifies both a change in tariff classification from any other heading, except from heading 74.04, under which certain copper materials are classified and a regional value content requirement. Therefore, with respect to that part of the rule that specifies a change in tariff classification, in order for the copper anode to qualify as an originating good, any copper materials that are classified under heading 74.02 or 74.04 and that are used in the production of the copper anode must be originating materials. In this case, all of the non-originating materials used in the production of the copper anode satisfy the specified change in tariff classification, with the exception of a small amount of copper materials classified under heading 74.04. Subsection (1) provides that the copper anode can be considered an originating good if the value of the non-originating copper materials that do not satisfy the specified change in tariff classification does not exceed 10% of the transaction value of the copper anode or the total cost of the copper anode, whichever is applicable. In this case, the value of those non-originating materials that do not satisfy the specified change in tariff classification does not exceed the 10% limit. However, the rule set out in Schedule 1 for heading 74.02 specifies both a change in tariff classification and a regional value content requirement. Under paragraph (1)(b), in order to be considered an originating good, the copper anode must also, except as otherwise provided in subsection (4), satisfy the regional value content requirement specified in that rule. As provided in paragraph (1)(b), the value of the non-originating materials that do not satisfy the specified change in tariff classification, together with the value of all other non-originating materials used in the production of the copper anode, will be taken into account in calculating the regional value content of the copper anode.
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 a copper anode of heading 74.02. The product-specific rule of origin set out in Schedule 1 for heading 74.02 specifies both a change in tariff classification from any other heading, except from heading 74.04, under which certain copper materials are classified and a regional value content requirement. Therefore, with respect to that part of the rule that specifies a change in tariff classification, in order for the copper anode to qualify as an originating good, any copper materials that are classified under heading 74.02 or 74.04 and that are used in the production of the copper anode must be originating materials.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
In this case, all of the non-originating materials used in the production of the copper anode satisfy the specified change in tariff classification, with the exception of a small amount of copper materials classified under heading 74.04. Subsection (1) provides that the copper anode can be considered an originating good if the value of the non-originating copper materials that do not satisfy the specified change in tariff classification does not exceed 10% of the transaction value of the copper anode or the total cost of the copper anode, whichever is applicable. In this case, the value of those non-originating materials that do not satisfy the specified change in tariff classification does not exceed the 10% limit.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
However, the rule set out in Schedule 1 for heading 74.02 specifies both a change in tariff classification and a regional value content requirement. Under paragraph (1)(b), in order to be considered an originating good, the copper anode must also, except as otherwise provided in subsection (4), satisfy the regional value content requirement specified in that rule. As provided in paragraph (1)(b), the value of the non-originating materials that do not satisfy the specified change in tariff classification, together with the value of all other non-originating materials used in the production of the copper anode, will be taken into account in calculating the regional value content of the copper anode.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 4 (subsection (4)): Producer A, located in a CUSMA country, primarily uses originating materials in the production of shoes of heading 64.05. The product-specific rule of origin set out in Schedule 1 for heading 64.05 specifies both a change in tariff classification from any heading other than headings 64.01 through 64.05 or subheading 6406.10 and a regional value content requirement. With the exception of a small amount of materials of Chapter 39, all of the materials used in the production of the shoes are originating materials. Under subsection (4), if the value of all of the non-originating materials used in the production of the shoes does not exceed 10% of the transaction value of the shoes or the total cost of the shoes, whichever is applicable, the shoes are not required to satisfy the regional value content requirement specified in the rule set out in Schedule 1 in order to be considered originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, primarily uses originating materials in the production of shoes of heading 64.05. The product-specific rule of origin set out in Schedule 1 for heading 64.05 specifies both a change in tariff classification from any heading other than headings 64.01 through 64.05 or subheading 6406.10 and a regional value content requirement.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
With the exception of a small amount of materials of Chapter 39, all of the materials used in the production of the shoes are originating materials.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Under subsection (4), if the value of all of the non-originating materials used in the production of the shoes does not exceed 10% of the transaction value of the shoes or the total cost of the shoes, whichever is applicable, the shoes are not required to satisfy the regional value content requirement specified in the rule set out in Schedule 1 in order to be considered originating goods.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 5 (subsection (4)): Producer A, located in a CUSMA country, produces barbers’ chairs of subheading 9402.10. The product-specific rule of origin set out in Schedule 1 for goods of subheading 9402.10 specifies a change in tariff classification from any other subheading. All of the materials used in the production of these chairs are originating materials, with the exception of a small quantity of non-originating materials that are classified as parts of barbers’ chairs. These parts undergo no change in tariff classification because subheading 9402.10 provides for both barbers’ chairs and their parts. Although Producer A’s barbers’ chairs do not qualify as originating goods under the rule set out in Schedule 1, paragraph 3(4)(a) provides, among other things, that, if there is no change in tariff classification from the non-originating materials to the goods because the subheading under which the goods are classified provides for both the goods and their parts, the goods will qualify as originating goods if they satisfy the specified regional value content requirement. However, under subsection (4), if the value of the non-originating materials does not exceed 10% of the transaction value of the barbers’ chairs or the total cost of the barbers’ chairs, whichever is applicable, the barbers’ chairs are considered originating goods and are not required to satisfy the regional value content requirement set out in subparagraph 3 (4)(a)(ii).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces barbers’ chairs of subheading 9402.10. The product-specific rule of origin set out in Schedule 1 for goods of subheading 9402.10 specifies a change in tariff classification from any other subheading. All of the materials used in the production of these chairs are originating materials, with the exception of a small quantity of non-originating materials that are classified as parts of barbers’ chairs. These parts undergo no change in tariff classification because subheading 9402.10 provides for both barbers’ chairs and their parts.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Although Producer A’s barbers’ chairs do not qualify as originating goods under the rule set out in Schedule 1, paragraph 3(4)(a) provides, among other things, that, if there is no change in tariff classification from the non-originating materials to the goods because the subheading under which the goods are classified provides for both the goods and their parts, the goods will qualify as originating goods if they satisfy the specified regional value content requirement.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
However, under subsection (4), if the value of the non-originating materials does not exceed 10% of the transaction value of the barbers’ chairs or the total cost of the barbers’ chairs, whichever is applicable, the barbers’ chairs are considered originating goods and are not required to satisfy the regional value content requirement set out in subparagraph 3 (4)(a)(ii).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 6 (subsection (6)): Producer A, located in a CUSMA country, manufactures an infant diaper, classified in heading 96.19, consisting of an outer shell of 94% nylon and 6% elastomeric fabric by weight and a terry knit cotton absorbent crotch. All materials used are produced in a CUSMA country, except for the elastomeric fabric, which is from a non-CUSMA country. The elastomeric fabric is only 6% of the total weight of the diaper. The good satisfies all other applicable requirements of these Regulations. Therefore, the product is considered originating from a CUSMA country as per subsection (6).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, manufactures an infant diaper, classified in heading 96.19, consisting of an outer shell of 94% nylon and 6% elastomeric fabric by weight and a terry knit cotton absorbent crotch. All materials used are produced in a CUSMA country, except for the elastomeric fabric, which is from a non-CUSMA country. The elastomeric fabric is only 6% of the total weight of the diaper. The good satisfies all other applicable requirements of these Regulations. Therefore, the product is considered originating from a CUSMA country as per subsection (6).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 7 (subsection (6)): Producer A, located in a CUSMA country, produces cotton fabric of subheading 5209.11 from cotton yarn of subheading 5205.11. This cotton yarn is also produced by Producer A. The product-specific rule of origin set out in Schedule 1 for subheading 5209.11, under which the fabric is classified, specifies a change in tariff classification from any other heading outside 52.08 through 52.12, except from certain headings under which certain yarns are classified, including cotton yarn of subheading 5205.11. Therefore, with respect to the part of the rule that specifies a change in tariff classification, in order for the fabric to qualify as an originating good, the cotton yarn that is used by Producer A in the production of the fabric must be an originating material. At one point Producer A uses a small quantity of non-originating cotton yarn in the production of the cotton fabric. Under subsection (6), if the total weight of the non-originating cotton yarn does not exceed 10% of the total weight of the cotton fabric, it would be considered an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces cotton fabric of subheading 5209.11 from cotton yarn of subheading 5205.11. This cotton yarn is also produced by Producer A.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The product-specific rule of origin set out in Schedule 1 for subheading 5209.11, under which the fabric is classified, specifies a change in tariff classification from any other heading outside 52.08 through 52.12, except from certain headings under which certain yarns are classified, including cotton yarn of subheading 5205.11.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Therefore, with respect to the part of the rule that specifies a change in tariff classification, in order for the fabric to qualify as an originating good, the cotton yarn that is used by Producer A in the production of the fabric must be an originating material.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
At one point Producer A uses a small quantity of non-originating cotton yarn in the production of the cotton fabric. Under subsection (6), if the total weight of the non-originating cotton yarn does not exceed 10% of the total weight of the cotton fabric, it would be considered an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 8 (subsections (7) and (8)): Producer A, located in a CUSMA country, produces women’s dresses of subheading 6204.41 from fine wool fabric of heading 51.12. This fine wool fabric, also produced by Producer A, is the component of the dress that determines its tariff classification in subheading 6204.41. The product-specific rule of origin set out in Schedule 1 for subheading 6204.41, under which the dress is classified, specifies both a change in tariff classification from any other Chapter, except from those headings and Chapters under which certain yarns and fabrics, including combed wool yarn and wool fabric, are classified, and a requirement that the good be cut and sewn or otherwise assembled in the territory of one or more of the CUSMA countries. In addition, narrow elastics classified in subheading 5806.20 or heading 60.02 and sewing thread classified in heading 52.04, 54.01 or 55.08 or yarn classified in heading 54.02 that is used as sewing thread, must be formed and finished in the territory of one or more of the CUSMA countries for the dress to be originating. Furthermore, if the dress has a pocket, the pocket bag fabric must be formed and finished in the territory of one or more of the CUSMA countries for the dress to be originating. Therefore, with respect to that part of the rule that specifies a change in tariff classification, in order for the dress to qualify as an originating good, the combed wool yarn and the fine wool fabric made therefrom that are used by Producer A in the production of the dress must be originating materials. In addition, the sewing thread, narrow elastics and pocket bags that are used by Producer A in the production of the dress must also be formed and finished in the territory of one or more of the CUSMA countries. At one point Producer A uses a small quantity of non-originating combed wool yarn in the production of the fine wool fabric. Under subsection (7), if the total weight of the non-originating combed wool yarn does not exceed 10% of the total weight of all the yarn used in the production of the component of the dress that determines its tariff classification, that is, the wool fabric, the dress would be considered an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces women’s dresses of subheading 6204.41 from fine wool fabric of heading 51.12. This fine wool fabric, also produced by Producer A, is the component of the dress that determines its tariff classification in subheading 6204.41.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The product-specific rule of origin set out in Schedule 1 for subheading 6204.41, under which the dress is classified, specifies both a change in tariff classification from any other Chapter, except from those headings and Chapters under which certain yarns and fabrics, including combed wool yarn and wool fabric, are classified, and a requirement that the good be cut and sewn or otherwise assembled in the territory of one or more of the CUSMA countries. In addition, narrow elastics classified in subheading 5806.20 or heading 60.02 and sewing thread classified in heading 52.04, 54.01 or 55.08 or yarn classified in heading 54.02 that is used as sewing thread, must be formed and finished in the territory of one or more of the CUSMA countries for the dress to be originating. Furthermore, if the dress has a pocket, the pocket bag fabric must be formed and finished in the territory of one or more of the CUSMA countries for the dress to be originating.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Therefore, with respect to that part of the rule that specifies a change in tariff classification, in order for the dress to qualify as an originating good, the combed wool yarn and the fine wool fabric made therefrom that are used by Producer A in the production of the dress must be originating materials. In addition, the sewing thread, narrow elastics and pocket bags that are used by Producer A in the production of the dress must also be formed and finished in the territory of one or more of the CUSMA countries.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
At one point Producer A uses a small quantity of non-originating combed wool yarn in the production of the fine wool fabric. Under subsection (7), if the total weight of the non-originating combed wool yarn does not exceed 10% of the total weight of all the yarn used in the production of the component of the dress that determines its tariff classification, that is, the wool fabric, the dress would be considered an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 9 (subsection (7)): Producer A, located in a CUSMA country, manufactures women’s knit sweaters, which have knit bodies and woven sleeves. The knit body is composed of 95% polyester and 5% spandex, by weight. The sleeves are made of non-CUSMA woven fabric that is 100% polyester. All materials of the knit body are from a CUSMA country, except for the spandex, which is from a non-CUSMA country. The sweater is cut and sewn in a CUSMA country. Since the knit body gives the garment its essential character, the sweater is classified in subheading 6110.30. The product-specific rule of origin set out in Schedule 1 for subheading 6110.30 is that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the CUSMA countries. The sleeves are disregarded in determining whether the sweater originates in a CUSMA country because only the component that determines the tariff classification of the good must be originating and the de minimis provision is applied to that component. Moreover, the total weight of the spandex is less than 10% of the total weight of the knit body fabric, which is the component that determines the tariff classification of the sweater and the spandex does not exceed 7% of the total weight of good. Assuming that the women’s knit sweater satisfies all other applicable requirements of these Regulations, the women’s knit sweater is originating from the CUSMA country.