United States International Trade Commission

Investigation No. TA-103-027

USITC Publication 4438

November 2013

Probable Economic 

Effect of Certain 

Modifications to the 

North American Free 

Trade Agreement 

Rules of Origin
Address all communications to 

Secretary to the Commission 

United States International Trade Commission 

Washington, DC 20436

U.S. International Trade Commission

Robert B. Koopman

Director, Office of Operations

Karen Laney

Director, Office of Industries

COMMISSIONERS 

 

Irving A. Williamson, Chairman 

Shara L. Aranoff 

Dean A. Pinkert 

David S. Johanson 

Meredith M. Broadbent 

F. Scott Kieff
U.S. International Trade Commission

Washington, DC 20436 

www.usitc.gov

USITC Publication 4438 November 2013

Probable Economic Effect of Certain 

Modifications to the North American Free 

Trade Agreement Rules of Origin

Investigation No. TA-103-027
This report was prepared principally by

Project Leader

Kimberlie Freund

kimberlie.freund@usitc.gov

Deputy Project Leader

Philip Stone

philip.stone@usitc.gov

Office of Industries

Caitlin Blair, Raymond Cantrell, Jeffrey Clark, David Coffin, Andrew David, Sharon Ford,

Cynthia Foreso, Dennis Fravel, Al Goetzl, Gerald Houck, Larry Johnson, John Kitzmiller,

Jeanette Leary, Kathryn Lundquist, Deborah McNay, Elizabeth Nesbitt, Chris Robinson,

Michael Stanton-Geddes, Karen Taylor, Mihir Torsekar, Karl Tsuji, and Linda White

Office of Tariff Affairs

Scott Baker, Barbara Elkins, Vanessa Lee, Donnette Rimmer, and Cynthia Wilson

Office of Economics

Kyle Johnson

Content Reviewers

Heidi Colby-Oizumi and Janis Summers

Office of the General Counsel

William Gearhart

Editorial Review

Peg Hausman

Administrative Support

Phyllis Boone, Judith Bryant, Monica Reed, and Wanda Tolson

Special Assistance

James Fetzer and David Lundy

Help Desk and Customer Service Division

Under the direction of

Karen Laney, Director, Office of Industries

Dennis Rapkins, Chief, Chemicals and Textiles Division
CONTENTS

Page

Abbreviations and Acronyms................................................................................ iii

Executive Summary....................................................................................................... v

Chapter 1 Introduction ............................................................................................. 1-1

Background and scope ........................................................................................................ 1-1

Information sources............................................................................................................. 1-3

Organization of the report ................................................................................................... 1-3

Chapter 2 Approach and Summary of Findings.................................. 2-1

Chapter 3 Advice on the Probable Economic Effect of Certain

 Proposed Modifications to the Rules of Origin Contained in 

 the North American Free Trade Agreement....................................... 3.1

HTS Chapter 21: Miscellaneous edible preparations..................................................................... 3-3

HTS Chapter 27: Mineral fuels, mineral oils and products of their distillation; bituminous 

substances; mineral waxes................................................................................................... 3-5

HTS Chapter 28: Inorganic chemicals; organic or inorganic compounds of precious metals, of 

rare-earth metals, of radioactive elements or isotopes ........................................................ 3-9

HTS Chapter 29: Organic chemicals ............................................................................................. 3-38

HTS Chapter 30: Pharmaceutical products.................................................................................... 3-137

HTS Chapter 31: Fertilizers........................................................................................................... 3-143

HTS Chapter 32: Dyes and pigments, etc...................................................................................... 3-145

HTS Chapter 33: Essential oils, etc. .............................................................................................. 3-158

HTS Chapter 34: Soaps, etc. .......................................................................................................... 3.160

HTS Chapter 35: Albumenoidal substances, etc............................................................................ 3-165

HTS Chapter 37: Photographic or cinematographic goods............................................................ 3-166

HTS Chapter 38: Miscellaneous chemical products...................................................................... 3-169

HTS Chapter 39: Plastics............................................................................................................... 3-183

HTS Chapter 40: Rubber ............................................................................................................... 3-193

HTS Chapter 45: Cork and articles of cork.................................................................................... 3-203

HTS Chapter 70: Glass and glassware........................................................................................... 3-207

HTS Chapter 74: Copper and articles thereof................................................................................ 3-211

HTS Chapter 75: Nickel and articles thereof................................................................................. 3-214

HTS Chapter 78: Lead and articles thereof.................................................................................... 3-218

HTS Chapter 79: Zinc and articles thereof .................................................................................... 3-220

HTS Chapter 80: Tin and articles thereof...................................................................................... 3-221

HTS Chapter 81: Other base metals; cermets; articles thereof ...................................................... 3-222

HTS Chapter 84: Nuclear reactors, boilers, machinery and mechanical appliances; parts

thereof.................................................................................................................................. 3-224

i
CONTENTS

Page

Chapter 3 Advice on the Probable Economic Effect of Certain

 Proposed Modifications to the Rules of Origin Contained in 

 the North American Free Trade Agreement—Continued

HTS Chapter 85: Electrical machinery and equipment thereof; sound recorders and reproducers,

television image and sound recorders and reproducers, and parts and accessories of such 

articles................................................................................................................................. 3-274

HTS Chapter 86: Railway or tramway locomotives, rolling-stock parts thereof; railway or

tramway fixtures and fittings and parts thereof; mechanical (including electromechanical) 

traffic signaling equipment of all kinds............................................................................... 3-298

HTS Chapter 87: Vehicles other than railway or tramway rolling-stock, and parts thereof.......... 3-299

HTS Chapter 90: Optical, photographic, cinematographic, measuring, checking, precision,

medical or surgical instruments and apparatus; parts and accessories thereof.................... 3-300

HTS Chapter 94: Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed

furnishings; lamps and lighting fittings, nes; illuminated name-plates and the like; 

prefabricated buildings........................................................................................................ 3-322

HTS Chapter 95: Toys, games and sports requisites; parts and accessories thereof...................... 3-323

HTS Chapter 96: Miscellaneous manufactured articles................................................................. 3-325

Bibliography........................................................................................................................

Appendices

A. Request letter ............................................................................................................................ A-1

B. Federal Register notice............................................................................................................. B-1

C. Organizations contacted............................................................................................................ C-1

D. Written submissions to the Commission................................................................................... D-1

E. Compilation of applicable non-preference tariff rates for the United States, Canada, and

 Mexico .................................................................................................................................. E-1

F. Existing rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90........................................ F-1

Boxes

1.1. Tariff shift rules and regional value requirements................................................................. 1-2

Figures

ES.1. General process for estimating probable economic effect..................................................... vi

2.1. General process for estimating probable economic effect..................................................... 2-2

Tables

ES.1. Summary of effects advice: Proposed modifications with significant or substantial

effects ............................................................................................................................. viii

2.1. Summary of effects advice: Proposed modifications with significant or substantial

effects ............................................................................................................................. 2-6

ii
Abbreviations and Acronyms

APTA Automotive Parts Trade Act

AVE ad valorem equivalent

CA Chemical Appendix to the HTS

EPA U.S. Environmental Protection Agency

FR Federal Register

HS Harmonized System (global)

HTS Harmonized Tariff Schedule of the United States

MFN most favored nation

NAFTA North American Free Trade Agreement

NCM net cost method

NTR normal trade relations

OECD Organisation for Economic Co-operation and Development

PA Pharmaceutical Appendix to the HTS

PCA printed circuit assembly

ROOs rules of origin

SCD Statistics Canada International Trade Division Database

SIICEX Mexican International Trade Integral Information System

SOCMA Society of Chemical Manufacturers & Affiliates

TVM transaction value method

USDA United States Department of Agriculture

USDOC United States Department of Commerce

USITC United States International Trade Commission

USTR United States Trade Representative

WCO World Customs Organization

WTO World Trade Organization

WTA World Trade Atlas database

iii

Executive Summary

Scope

In response to a request by the United States Trade Representative (USTR), this report 

provides the advice of the U.S. International Trade Commission (Commission) on the 

probable economic effect of proposed modifications to the rules of origin (ROOs) for 

certain products in the North American Free Trade Agreement (NAFTA).

1 The advice 

addresses the probable economic effect of the proposed modifications on U.S. imports 

and exports under NAFTA, total U.S. imports and exports, and domestic industries 

producing the affected articles. The report covers 212 proposed modifications to the 

NAFTA ROOs. Many of the proposed rules would liberalize the current rules by 

allowing more non-originating inputs (that is, inputs not originating in Canada, Mexico, 

or the United States) through a change in the tariff shift rules and/or by removing or 

reducing the regional value content requirements. These modifications affect a wide 

variety of articles, including edible preparations; mineral fuels; chemicals; plastics; 

rubber articles; cork; glass and glassware; copper, nickel, and other base metals; 

machinery and parts; rail locomotives; trailers; optical and medical instruments; furniture; 

toys and games; lighters; and smoking pipes.

Approach and Summary of Findings 

The Commission’s probable economic effect analysis estimates the change in U.S. trade 

and production under each proposed modification to the NAFTA ROOs. The following 

codes were used to indicate the probable economic effect advice under the proposed 

modifications. 

None: No effect

Negligible: Trade or production value changes of less than 6 percent

Significant: Trade or production value changes of 6 percent to 

15 percent

Substantial: Trade or production value changes of more than 15 percent 

None of the 212 proposed rules would likely have a significant or substantial effect on 

total U.S. imports. Only one of the proposed rules, which affect certain sauces, would 

likely have a significant effect on total U.S. exports. Similarly, none of the proposed rules 

would likely have a significant or substantial effect on the U.S. industry producing the 

subject goods. 

The analysis consisted of several steps, as shown in figure ES.1. First, each of the 212 

proposed rules was compared with the current rule to assess whether the proposed 

modification would substantively change the application of the NAFTA ROOs for any of 

1 The request letter appears in appendix A, and the Federal Register notice announcing institution of 

this investigation is in appendix B.

v

 
Compare new rule to old rule No substantive 

change

Substantive change

Examine duty rates for

United States, Canada,

and Mexico

NTR/MFN rates

are free 

NTR/MFN rates are

greater than zero 

Estimate the effective tariff

on U.S. imports/exports of

goods covered under the

proposed rule from/to

NAFTA partners 

Effective tariff

< 1.5 percent

ad valorem

No effect

No effect

Negligible effect on U.S. 

imports/exports under 

NAFTA, on total U.S. 

imports/exports, and on 

U.S. production

Effective tariff

> 1.5 percent ad

valorem

Estimate the effective tariff

on total U.S. imports/exports of 

goods covered under the 

proposed rule

Effective tariff

< 1.5 percent

ad valorem

Negligible effect on total

U.S. imports/exports 

and on U.S. production 

Effective tariff

> 1.5 percent ad 

valorem

Conduct partial equilibrium 

modeling to estimate effect 

under NAFTA, total U.S. 

trade, and U.S. production 

FIGURE ES.1 General process for estimating probable economic effect 

Substantial increase in 

U.S. imports, exports,

and/ or production

Significant or substantial

increase in U.S. imports/

exports from/to NAFTA

partners

Change of 6−15 percent

in U.S. imports, exports,

and/or production 

Change of >15 percent

in U.S. imports, exports,

and/or production

Significant increase in 

U.S. imports, exports, 

and/ or production

Note: Qualitative information, such as industry structure, was also used as part of the analysis. The results 

from this analysis represent a maximum effect and may have been modified based on supplemental 

information and modeling.

(212 rules)

(158 rules)

(54 rules)

(24 rules)

(134 rules)

(114 rules)

(20 rules)

vi
the products covered by the rule. Fifty-four of the proposed modifications would not 

substantively change the rules under which products can qualify for preferential treatment 

under NAFTA. For these modifications there would be no effect on U.S. imports and 

exports under NAFTA, total U.S. imports and exports, and U.S. production. 

The duty rates were then analyzed for those rules that would result in a substantive 

change. All products affected by 24 of the proposed rules already enter free of duty on a 

normal trade relations (NTR) or most-favored-nation (MFN) basis when imported into 

the United States, Canada, and Mexico. In these cases the rule change would have no 

effect on U.S. imports and exports under NAFTA, on total U.S. imports and exports, and 

on U.S. production. 

For the remaining 134 modifications, further analysis was undertaken to estimate the 

probable economic effect on (1) U.S. imports under NAFTA; (2) total U.S. imports; 

(3) U.S. exports under NAFTA; (4) total U.S. exports; and (5) U.S. production. To the 

extent possible, the Commission examined production and sourcing patterns of the 

affected products and inputs in the NAFTA countries, overall levels of production and 

trade, and NTR duty rates for affected products for the United States and MFN rates for 

the affected products for Canada and Mexico. 

In cases in which the NTR or MFN duty rates were greater than zero and the rule change 

could result in more products qualifying for duty-free treatment under NAFTA, the

Commission estimated the effective tariff rate on U.S. imports from and exports to

NAFTA partners for the affected products.

2 In general, if the effective tariff was less than 

1.5 percent ad valorem, the estimated effect on U.S. imports under NAFTA and total U.S. 

imports was estimated to be negligible. Of the 134 rules examined, 114 were estimated to 

have a negligible effect, or a combination of negligible and no effect, on U.S. imports and 

exports under NAFTA and on total U.S. imports and exports. 3 For each of the 114

modifications, the expected effect on U.S. production was estimated to be negligible

because the net effect on U.S. trade was expected to be negligible. 

For 20 of the proposed rules (table ES.1), the effective tariff on U.S. imports from 

NAFTA partners or U.S. exports to NAFTA partners was 1.5 percent ad valorem or 

greater. For these cases, the Commission estimated the effective tariff on total U.S. 

imports (or total U.S. exports) of the products affected by the rule.

4 If the effective tariff 

on total U.S. imports (or total U.S. exports) of products covered by the rule was less than 

1.5 percent, the effect on total U.S. imports, exports, and production was estimated to be 

negligible.

2 The effective tariff for U.S. imports or exports under NAFTA is generally the trade-weighted average 

duty for the products covered by the rule. In some cases, the proposed modification would substantively 

change coverage for only some of the goods covered by the proposed rule, in which case the Commission 

calculated the effective tariff based on the duties collected for imports of the products affected by the rule 

change. For example, for U.S. imports under NAFTA, the effective tariff is based on the estimated duties 

collected for U.S. imports from NAFTA partners of products substantively affected by the proposed rule 

divided by U.S. imports of all products covered by the rule from NAFTA partners in 2012. 3 A combination of negligible and no effect occurred, for example, in cases where the NTR duty rate 

was free for U.S. imports from NAFTA partners, but Canada and/or Mexico had MFN duties that applied to 

U.S. exports. 4 The effective tariff on total U.S. imports represents the change in duties that would be collected from 

the world due to more goods from NAFTA partners qualifying for duty-free preferences under NAFTA as a 

result of each proposed rule. The effective tariff on total U.S. imports of products covered by the rule was 

calculated based on estimated duties collected for U.S. imports from NAFTA partners of products 

substantively affected by the proposed rule divided by the value of total U.S. imports of all products covered 

by the rule.

vii

 
For those rule modifications for which it was estimated that a substantive change in the 

ROOs might produce a more-than-negligible effect on total U.S. imports, exports, and/or 

production, further analysis was conducted. This analysis used a partial equilibrium 

model to estimate the likely change in the trade with NAFTA partners, total trade, and 

domestic production for the products covered by each proposed modification. In all cases, 

the effect on total U.S. imports was found to be negligible. Only one proposed 

modification was found to have a significant effect on total U.S. exports (subheading 

2103.90 of the Harmonized Tariff Schedule of the United States, or HTS).5

For the 20 proposed modifications that could have a significant or substantial effect on 

NAFTA trade (as shown in table ES.1), the likely effect on U.S. production, and 

therefore U.S. industry, is expected to be negligible, because the change in total U.S. 

imports and exports is expected to be small relative to U.S. production of the affected 

products.

TABLE ES.1 Summary of effects advice: Proposed modifications with significant or substantial effects

HTS no., table no., and product 

description 

Effect on U.S. 

imports from 

NAFTA 

partners

Effect on 

U.S. total 

imports

Effect on 

U.S. exports

to NAFTA 

partners

Effect on 

U.S. total 

exports

Effect on 

U.S. 

production

2103.90 (table 3.1)

Sauces derived from fish and 

non-alcoholic preparations of 

yeast extract

Negligible Negligible Significant * Significant * Negligible

2903.19 (table 3.16)

Certain other saturated 

chlorinated derivatives of acyclic 

hydrocarbons

Significant Negligible None None Negligible

2916.32 (table 3.41)

Benzoyl peroxide and benzoyl 

chloride

Substantial Negligible None None Negligible

2918.21–2918.23 (table 3.48)

Salicylic acid and o-acetylsalicylic 

acid

Significant Negligible None None Negligible

2922.11–2922.21 (table 3.55)

Certain oxygen-function aminocompounds

Negligible Negligible Significant * Negligible Negligible

2924.11–2924.21 (table 3.59)

Acyclic amides and certain cyclic 

amides

Significant Negligible Negligible Negligible Negligible

3006.92 (table 3.74)

Waste pharmaceuticals

None None Substantial* Negligible Negligible

5 Table 3.1, sauces derived from fish and nonalcoholic preparations of yeast extract (other than sauces).

viii

 
TABLE ES.1 Summary of effects advice: Proposed modifications with significant or substantial effects—Continued

HTS no., table no., and product 

description 

Effect on U.S. 

imports from 

NAFTA 

partners

Effect on 

U.S. total 

imports

Effect on 

U.S. exports 

to NAFTA 

partners

Effect on 

U.S. total 

exports

Effect on 

U.S. 

production

3204.20–3204.90 (table 3.80)

Fluorescent brightening agents 

and luminophores

Substantial Negligible Negligible Negligible Negligible

3206.50 (table 3.83)

Inorganic products of a kind used 

as luminophores

Substantial Negligible Negligible Negligible Negligible

3304.10–3305.90 (table 3.84)

Beauty or make-up preparations 

and preparations for hair

None None Significant * Negligible Negligible

3824.90 (table 3.95)

Chemical products and 

preparations, not elsewhere 

specified or included

Negligible Negligible Significant * Negligible Negligible

3901–3914 (table 3.97)

Polymers in primary forms; plastic 

resins; silicones; cellulose

Negligible Negligible Significant * Negligible Negligible

4013–4015 (table 3.109)

Inner tubes; hygienic or 

pharmaceutical articles of rubber; 

and articles of apparel and 

accessories of rubber

Negligible Negligible Significant Negligible Negligible

7419.99 (table 3.123)

Other articles of copper, not 

elsewhere specified

Negligible Negligible Significant Negligible Negligible

8408.10 (table 3.139)

Diesel engines for marine 

propulsion

Significant Negligible Negligible Negligible Negligible

8518.10–8518.30 (table 3.173)

Microphones and their stands; 

loudspeakers; and headphones 

and earphones

Negligible Negligible Significant * Negligible Negligible

8519.20–8519.89 (table 3.174)

Sound recording and reproducing 

apparatus 

Negligible Negligible Significant * Negligible Negligible

9004.10 (table 3.189)

Sunglasses

Negligible Negligible Significant Negligible Negligible

9503.00–9505.90 (table 3.210)

Various toys and games

None None Significant * Negligible Negligible

ix
TABLE ES.1 Summary of effects advice: Proposed modifications with significant or substantial effects—Continued

HTS no., table no., and product 

description 

Effect on U.S. 

imports from 

NAFTA 

partners

Effect on 

U.S. total 

imports

Effect on 

U.S. exports 

to NAFTA 

partners

Effect on 

U.S. total 

exports

Effect on 

U.S. 

production

9614 (table 3.212)

Smoking pipes and cigar or 

cigarette holders, and parts 

Significant Negligible Negligible Negligible Negligible

Note: In instances in which “significant” or “substantial” is followed by an asterisk (e.g., “Significant *”), the results of the 

proposed modification are likely overstated because, as explained in chapter 2, it was necessary for the Commission to 

base its analysis on the assumption that all U.S. exports to Mexico in 2012 were assessed the MFN rates of duty. The 

effect on U.S. exports to NAFTA partners will be reduced to the extent that U.S. exports to Mexico currently receive 

duty-free treatment under NAFTA. 

x
CHAPTER 1

Introduction

Background and Scope 

As requested by the United States Trade Representative (USTR), this report provides 

advice concerning the probable economic effect of proposed modifications to the rules of 

origin (ROOs) for certain products in the North American Free Trade Agreement 

(NAFTA).1 The advice addresses the proposed modifications’ probable economic effect 

on U.S. trade under NAFTA, total U.S. trade, and domestic industries producing the 

affected articles. In his letter, the USTR noted that negotiators had reached an agreement 

in principle with the governments of Canada and Mexico on the fourth in a series of 

proposed modifications to Annex 401 of NAFTA.2 Annex 401 (along with Chapter 4 and 

Annex 403) sets forth the ROOs used in applying the tariff provisions of the NAFTA. 

This report, prepared by the U.S. International Trade Commission (Commission or 

USITC), covers 212 proposed modifications to the NAFTA ROOs. The proposed rules 

cover a wide variety of articles, including edible preparations; mineral fuels; chemical 

products; plastics; rubber articles; cork; glass and glassware; copper, nickel, and other 

base metals; machinery and parts; rail locomotives; trailers; optical and medical 

instruments; furniture; toys and games; lighters; and smoking pipes.

Many of the proposed rules would liberalize the current rules by allowing more nonoriginating inputs (that is, inputs not originating in Canada, Mexico, or the United States)

through a change in the tariff shift rules and/or by removing or reducing the regional 

value content requirements.

A tariff shift rule requires that a non-originating input used in the production of a good 

undergo a specified change in tariff classification in order for the good to be considered 

originating (box 1.1). A regional value content requirement mandates that a certain share 

of the value of the good originate in the NAFTA region. Many of the rules have 

combined a tariff shift rule with a regional value content requirement.

1 The request letter appears in appendix A, and the Federal Register notice announcing institution of 

this investigation is in appendix B. 2 Section 202(q) of the NAFTA Implementation Act (Act) authorizes the President, subject to the 

consultation and layover requirements of section 103 of the Act, to proclaim such modifications to ROOs as 

may from time to time be agreed to by the NAFTA countries. One of the requirements set out in section 103 

is that the President obtain advice from the U.S. International Trade Commission. 

1-1

 
BOX 1.1 Tariff shift rules and regional value requirements

Goods made in the territory of one or more NAFTA member countries that incorporate inputs made outside the 

NAFTA region (considered non-originating inputs) must meet the requirement(s) of the preferential ROOs that apply 

to the specific good based on its tariff classification.a These ROOs identify the criteria that the finished goods 

imported from NAFTA partners must meet to be eligible for preferential duty treatment under NAFTA. The most 

common criterion is a tariff shift, in which the transformation of non-originating input changes the inputs tariff 

classification in a way that will allow the finished good to be considered originating.b The other method, which is 

sometimes used in combination with a tariff shift, is the regional value content requirement, which sets a minimum for 

the share of the good’s content that is attributable to the region, including value derived from originating (NAFTA) 

inputs.

The tariff shift method requires that each of the non-originating materials or components used in the production of a 

good must meet the requirements of the rule, i.e., they must change tariff classification in a particular manner. A tariff 

shift rule may specify a required change in classification at any tariff level, from chapters (2-digit HTS), headings (4-

digit HTS), subheadings (6-digit HTS), and tariff items (8-digit HTS). If one or more of the non-originating raw 

materials or components used to manufacture a good does not meet the tariff shift rule (i.e., the product is classified 

in one of the disallowed HTS chapters, headings, or subheadings), and that non-originating content is not considered 

de minimis,c the good is considered not originating and generally does not qualify for NAFTA treatment. 

For example, the rule for heading 1601 (pork sausage) is “a change to headings 1601 through 1605 from any other 

chapter.”d This standard means that each non-originating raw material and/or component that goes into making pork 

sausage (heading 1601) must be classified in another chapter (i.e., not chapter 16) so the end product can qualify as 

an originating good under NAFTA. For instance, pork sausage (HTS 1601) produced in Mexico using imported 

frozen pork meat from Hungary (HTS heading 0203, in chapter 2) and spices imported from Jamaica (HTS headings 

0907–0910, chapter 9) would meet the requirements of the tariff shift rule and would be considered an originating 

“good of Mexico” under NAFTA. 

If the rule is based on a regional value content requirement, either the transaction value method or net cost method 

may be used to determine content.

Transaction value method: Calculates the value of the non-originating material as a share of the good’s transaction 

value (the price paid or payable for the good).

Net cost method: Calculates the regional value content as a share of the net costs incurred by the producer less any 

expenses for sales promotion, royalties, shipping, and packing. The share of the content needed to qualify as 

originating is lower with this method because certain costs are excluded from the net cost.

_____________

a A good that is wholly obtained or made within the NAFTA region is considered to be an originating good and 

may receive preferential duty treatment under the terms of the NAFTA agreement. b According to regulations of U.S. Customs and Border Protection (CBP), the good must meet the requirements 

of the rules set forth in 19 CFR part 102, which are known as the “NAFTA marking rules.” These rules are also 

generally used by CBP on a normal trade relations basis to determine whether any imported product “has been 

substantially transformed into a new and different article of commerce with a name, character, and use distinct from 

that of the article or articles from which it was so 

transformed.” http://www.cbp.gov/linkhandler/cgov/trade/legal/informed_compliance_pubs/icp026.ctt/icp026.pdf, 9. c There is an exception to the tariff shift rule for small amounts of non-originating inputs under the “de minimis” 

rule, which states that a non-originating input is allowed if the value of the input is 7 percent or less of the transaction 

value of the good. d Harmonized Tariff Schedule of the United States (2013) (HTS), General Note 12 (NAFTA).

1-2
Information Sources

The Commission used multiple data and information sources in preparing its advice. The 

proposed rules are from the USTR request letter.

3 The existing rules are from General 

Note 12 (NAFTA) of the Harmonized Tariff Schedule of the United States (2013) (HTS),

“North American Free Trade Agreement.”4 The normal trade relations (NTR) tariff rates 

cited in the effect statements were taken from the HTS. For Canada, the most-favorednation (MFN) tariff rates5 were from Customs Tariff: Departmental Consolidation 2013, 

and for Mexico they were from the SIICEX-CAAAREM 6 database and the WTO 

Integrated Database.7 In addition, the Commission sought information and views from 

interested parties through a Federal Register notice announcing this investigation and by 

directly contacting industry representatives.8

Trade data for 2012 were used in the analysis. Unless otherwise specified, U.S. import 

and export data are U.S. Department of Commerce data from the Commission’s 

Interactive Tariff and Trade DataWeb database.

9 Canada’s and Mexico’s import data, as 

reported in the Global Trade Atlas database,10 were often used to provide more detail on 

rates of duty applied to U.S. exports to those countries. For some of the proposed 

modifications, analysis of U.S. exports to Canada and Mexico used detailed data on 

Canadian imports from Statistics Canada, International Trade Division,

11 and on Mexican 

imports from the SIICEX.

12 

Organization of the Report 

Chapter 2 presents a detailed explanation of the Commission’s method for determining 

the probable economic effect of the proposed modifications on U.S. imports and exports 

under NAFTA, on total U.S. imports and exports, and on U.S. industry. Chapter 2 also 

provides a summary of the findings. The Commission’s advice for each proposed rule is 

presented in separate tables in chapter 3. The advice is organized by HTS chapter. A list 

of organizations contacted is provided in appendix C. Copies of the submissions from 

interested parties are provided in appendix D.

3 Appendix A. The rules appear in the report exactly as they appear in the letter, including the global 

Harmonized System (HS) product nomenclature. HS nomenclature adds a dot in the middle of 4-digit 

heading classifications (e.g., 40.05) while the U.S. system does not (e.g., 4005). 4 Available at http://www.usitc.gov/publications/docs/tata/hts/bychapter/1300gntoc.htm. 5 The NTR duty rates are commonly called MFN rates in other countries. 6 SIICEX-CAAAREM stands for Mexican International Trade Integral Information System–

Confederation of Mexican Customs Brokers Associations, http://www.siicex-caaarem.org.mx/ (accessed 

April–July 2013). 7 Appendix E contains a table with the range of rates applicable for each proposed rule. 8 Appendix B has the Federal Register notice; appendix C lists the companies contacted during this 

investigation; and appendix D contains a copy of the submissions received from interested parties. 9 USITC DataWeb/USDOC (accessed April–June 2013). 10 GTIS (accessed May–June 2013). 11 Canadian government representative, email messages to USITC staff, June 21 and July 3, 2013. 12 Data were only available for a limited number of products. Mexican government representative, 

email messages to USITC staff, June 24, July 1, and July 17, 2013.

1-3

 

CHAPTER 2

Approach and Summary of Findings

The Commission’s probable economic effect analysis estimates the change in U.S. trade 

and production that would result from each proposed modification to the NAFTA rules of 

origin (ROOs). The following codes were used to indicate the probable economic effect 

of each proposed modification on U.S. trade under NAFTA, total U.S. trade, and U.S. 

production.

None: No effect

Negligible: Trade or production value change of less than 6 percent

Significant: Trade or production value change of 6 percent to 

15 percent

Substantial: Trade or production value change of more than 15 percent 

The general process used in the analysis consisted of several steps, as shown in 

figure 2.1. First, each proposed rule was compared with the current rule to see if any 

substantive change in the terms or application of the NAFTA ROOs would likely occur 

for any of the products covered by the rule.

1 Fifty-four of the 212 proposed modifications 

would not substantively change the rules under which products can qualify for 

preferential treatment under NAFTA. For each such modification, the effect on U.S. 

imports and exports under NAFTA, total U.S. imports and exports, and U.S. production 

is listed as “none.”

Second, for those modifications for which there was a substantive change, duty rates 

were analyzed. For 24 proposed rules, all products already enter free of duty on an 

NTR/MFN basis when imported into the United States, Canada, and Mexico. In these 

cases the effect of the rule change on U.S. imports, exports, and production is listed as 

“none.” 

 

1 When the World Customs Organization (WCO) made changes to the Harmonized System (HS) in 

2007, the ROOs were rewritten so that all previously allowed tariff shifts were reflected in the updated 

nomenclature, leading to complex rules. Many of the proposed modifications would streamline and simplify 

these complex rules, in some cases combining multiple rules into one. There are many instances in which the 

proposed rules would make no substantive change in the legal standard used in applying the ROOs. In some 

cases only part of the current rule substantively was changed. For more information on the 2007 HS changes, 

see the WCO, Correlation Tables 2002–2007, http://www.wcoomd.org/en/topics/nomenclature/instrumentand-tools/hs_nomenclature_older_edition/correlation_table_2007.aspx. 

2-1

 
Compare new rule to old rule No substantive 

change

Substantive change

Examine duty rates for

United States, Canada,

and Mexico

NTR/MFN rates

are free 

NTR/MFN rates are

greater than zero 

Estimate the effective tariff

on U.S. imports/exports of

goods covered under the

proposed rule from/to

NAFTA partners 

Effective tariff

< 1.5 percent ad

valorem

No effect

No effect

Negligible effect on U.S. 

imports/exports under 

NAFTA, on total U.S. 

imports/exports, and on 

U.S. production

Effective tariff

> 1.5 percent ad

valorem

Estimate the effective tariff

on total U.S. imports/exports of 

goods covered under the 

proposed rule

Effective tariff

< 1.5 percent ad 

valorem

Negligible effect on total

U.S. imports/exports 

and on U.S. production 

Effective tariff

> 1.5 percent ad 

valorem

Conduct partial equilibrium 

modeling to estimate effect 

under NAFTA, total U.S. 

trade, and U.S. production 

FIGURE 2.1 General process for estimating probable economic effect 

Substantial increase in 

U.S. imports, exports,

and/ or production

Significant or substantial

increase in U.S. imports/

exports from/to NAFTA

partners

Change of 6−15 percent

in U.S. imports, exports,

and/or production 

Change of >15 percent

in U.S. imports, exports,

and/or production

Significant increase in 

U.S. imports, exports, 

and/ or production

Note: Qualitative information, such as industry structure, was also used as part of the analysis. The results 

from this analysis represent a maximum effect and may have been modified based on supplemental 

information and modeling.

(212 rules)

(158 rules)

(54 rules)

(24 rules)

(134 rules)

(114 rules)

(20 rules)

2-2
Each of the remaining 134 proposed modifications was identified as either liberalizing or 

restricting NAFTA eligibility, as compared with the current rule. 2 If a proposed 

modification would liberalize or restrict NAFTA eligibility for the affected products (e.g., 

by allowing more non-originating content or simplifying compliance), the value of U.S. 

imports from NAFTA partners or exports to NAFTA partners may change. For those 134 

modifications, further analysis was undertaken to estimate the modification’s probable 

economic effect on (1) U.S. imports under NAFTA; (2) total U.S. imports; (3) U.S. 

exports under NAFTA; (4) total U.S. exports; and (5) U.S. production. In total, 670 

separate effects were estimated for the remaining 134 modifications.

Because it is difficult to predict exactly how much liberalization or restriction would 

result from any substantive modification, the analysis assumed maximum effects. For 

example, for a modification that is liberalizing, it was assumed that the proposed rule 

modification would allow all goods imported under the affected tariff provisions to 

receive duty-free treatment under NAFTA. In other words, it was assumed that all goods 

from NAFTA partners that currently receive the MFN or NTR rate of duty3 would now 

qualify for duty-free preferences under NAFTA and that the goods that currently receive 

duty-free treatment under NAFTA would continue to do so.

4

To the extent possible, the probable economic effect analysis identified and considered 

patterns for producing and sourcing the affected inputs and products in the NAFTA 

countries, and overall levels of production and trade.

In cases in which the MFN or NTR duty rates are greater than zero and the rule change 

could result in more than a minimal share 5 of additional products qualifying for 

preferential duties, the Commission estimated the effective tariff rate on U.S. imports 

from NAFTA partners and U.S. exports to NAFTA partners for the affected products. 

The effective tariff on U.S. imports or exports under NAFTA is generally the tradeweighted average duty. For U.S. imports, the Commission estimated the trade-weighted 

average duty by dividing the estimated duties collected on U.S. imports of the products 

covered by the rule from NAFTA partners by the value of U.S. imports of the subject 

products from NAFTA partners.

6 In some cases, the proposed modification would 

substantively change NAFTA eligibility for only some of the goods covered by proposed 

rule. In this scenario, the effective tariff rate was calculated under the assumption that 

there would be no potential change in duty for those products for which the proposed rule 

is substantively the same as the current rule.7

 

2 Very few of the proposed rule modifications are more restrictive than the current rules, but in such 

cases, the approach used by the Commission to analyze the restriction was essentially the same as the 

approach used to analyze a liberalizing effect. 3 In the HTS, the column 1-general duty rates applied to most trading partners are known as normal 

trade relations (NTR) duty rates; such external duty rates are commonly referred to in other countries as 

most-favored-nation (MFN) tariff rates. In the HTS, the duty rates accorded to originating goods under the 

NAFTA are set forth in column 1-special. 4 As of January 1, 2008, NAFTA rates of duty are free for originating goods under all tariff lines. The 

non-NAFTA rate is typically the NTR/MFN rate; however, certain products may qualify for other rates of 

duty under product-specific provisions also reflected in the HTS special duty column, such as the 

Pharmaceuticals Appendix (PA) or the Automotive Products Trade Act (APTA). 5 What the Commission considers “minimal” depends on the current rate of duty for the products 

covered by the proposed rule. In most cases the effective tariff was calculated, unless the share of dutiable 

imports/exports of the products was less than 2 percent of U.S. imports or exports from NAFTA partners in 

2012.

6 A similar process was used to calculate the trade-weighted average duty for U.S. exports. 7 In this situation, the effective tariff is based on the estimated duties collected on U.S. imports from 

NAFTA partners of products substantively affected by the proposed rule (“affected products”) divided by 

U.S. imports of all products covered by the rule from NAFTA partners in 2012.

2-3

 
In calculating the effective tariff on U.S. imports from NAFTA partners, the Commission 

used import data that distinguished between imports entered under NTR rates of duty and 

imports that are free of duty under NAFTA. The effective tariff on U.S. exports to 

NAFTA partners was calculated using Canada’s and Mexico’s import data. For many 

exported products, data were not available to allow the Commission to calculate the share 

of trade that entered Canada or Mexico under MFN rates of duty versus free of duty 

under NAFTA. In those cases, the effective tariff was estimated by assuming that all U.S. 

exports of these products entered at MFN rates rather than free of duty under NAFTA.

In general, if the effective tariff on U.S. imports/exports of covered products from/to 

NAFTA partners was less than 1.5 percent ad valorem, the estimated change in value in 

U.S. imports/exports under NAFTA, total U.S. imports and exports, and production was 

estimated to be less than 6 percent and was listed as “negligible.”8 Of the 134 rules 

examined, 114 were estimated to have a negligible effect, or a combination of negligible 

and no effect, on U.S. imports and exports under NAFTA and on total U.S. imports and 

exports.9 For each of the 114 modifications, the expected effect on U.S. production was 

estimated to be negligible because the net effect on U.S. trade was expected to be 

negligible. 

For 20 of the proposed rules, the effective tariff on U.S. imports from NAFTA partners or 

U.S. exports to NAFTA partners was 1.5 percent ad valorem or greater. For these cases, 

the Commission estimated the effective tariff on total U.S. imports (or total U.S. exports)

of the affected products. The effective tariff on total U.S. imports represents the change

in duties that would be collected from the world due to more goods from NAFTA 

partners qualifying for duty-free preferences under NAFTA as a result of each proposed 

rule. The Commission calculated the effective tariff on total U.S. imports by dividing 

estimated duties collected on imports of the affected products from NAFTA partners by 

total U.S. imports of all the goods covered by the proposed rule. A similar process was 

used for U.S. exports. If the effective tariff on total U.S. imports (or total U.S. exports) of 

the affected goods was less than 1.5 percent, the estimated change in the value of total 

U.S. imports, exports, and production was estimated to be less than 6 percent, and the 

effect for each was listed as “negligible.”

Further analysis was conducted for proposed modifications that were likely to change the 

value of total U.S. imports, exports, and/or production by more than 6 percent (i.e., the 

change was likely to be “significant” or “substantial”). A partial equilibrium model was 

used to estimate the likely change in U.S. trade with NAFTA partners, total U.S. trade, 

and domestic production for the products covered by each proposed modification. To 

estimate the change in trade value, this model used (1) the difference between the 

NAFTA (free) and non-NAFTA tariff rates; (2) the values for an elasticity of substitution, 

an aggregate demand elasticity, and price elasticities of supply for domestic shipments 

and imports; and (3) where available, the value of preferential and non-preferential (i.e., 

8 Under the range of parameter values employed in the analysis, a duty change must exceed

1.5 percentage points in order to yield a significant trade change. In most cases, a duty rate change of at least 

2 percentage points is necessary to yield a significant change in trade. The effect of a duty change is sensitive 

to, among other things, the share of NAFTA partner trade in total trade. 9 A combination of “negligible” and “none” occurs when U.S. imports are free on an NTR basis, but 

U.S. exports to Canada and/or Mexico are subject to duty rates greater than zero on an MFN basis. In this 

instance, the effect of a modification on U.S. imports would be “none,” while the effect on U.S. exports 

would be “negligible.” Similarly, if U.S. NTR rates of duty are greater than zero, but the rates of duty in 

Canada and Mexico are MFN free, then the effect would be “negligible” for U.S. imports and “none” for U.S. 

exports.

2-4

 
with non-NAFTA partners) trade in the NAFTA markets for the affected products.10 The 

non-NAFTA tariff rate was assumed to be each country’s MFN or NTR rate. The values 

used for the elasticities were designed to estimate the upper bound of possible effects of 

the proposed modification. The model assumes that firms can meet any increase in 

demand, regardless of existing capacity or capacity utilization. 11 Only one proposed 

modification was found to have a significant effect on total U.S. exports (subheading 

2103.90).

12 In all cases, the effect on total U.S. imports was found to be negligible.

The effect of a proposed modification on a U.S. industry was assessed by comparing the 

expected change in total U.S. exports and imports of the affected goods with the level of 

U.S. production of those goods. Increased exports might benefit the U.S. industry

involved by allowing it to increase sales (and, therefore, U.S. production). Conversely, 

increased imports could have a negative effect on the domestic industry by lowering its 

sales (and, therefore, its U.S. production). However, the size of the effect on production 

depends not only on the expected increase in the value of imports and exports, but also on 

the degree of substitutability between domestic and imported products. The effect on 

production was estimated to be negligible in all cases in which the net effect on total U.S. 

trade was negligible. For cases that were analyzed using the partial equilibrium model, 

the likely effects on U.S. production, and therefore U.S. industry, were also found to be 

negligible.

The Commission invited interested parties to submit information concerning the proposed 

modifications and received seven submissions.13 One firm (Arkema, Inc.) stated that the 

proposed modification for subheading 2916.32 (benzoyl peroxide and benzoyl chloride) 

and proposed chemical reaction rule for chapter 29 could have “serious, negative 

impacts” on its production, sales, and operations.

14 The remaining interested parties 

expressed support for either all proposed modifications or for specific modifications.

Table 2.1 shows a summary of the 20 proposed modifications that could have a 

significant or substantial effect on imports or exports under NAFTA and/or on total 

imports or exports. As noted above, the effect on U.S. production was found to be 

negligible for all of the proposed ROOs. 

10 In cases in which the data for U.S. exports to Mexico under NAFTA preferences are incomplete, the 

analysis is based on the assumption that all U.S. exports to Mexico entered under MFN rates of duty. Such 

assumptions are clearly stated in each instance in the text of the report. Although U.S. production data were 

estimated where appropriate, estimates were not available for Canadian and Mexican production. 11 No assumptions are made regarding investment. 12 Table 3.1, sauces derived from fish and nonalcoholic preparations of yeast extract (other than sauces). 13 Appendix D contains the complete submissions. 14 Arkema, Inc., written submission to the USITC, July 22, 2013, 3, and September 20, 2013, 1. Copies 

of the submissions are in appendix D. See chapter 3 for the Commission’s advice on the proposed chemical 

reaction rule for chapter 29 (table 3.13) and the proposed modification for subheading 2916.32 (table 3.41).

2-5

 
TABLE 2.1 Summary of effects advice: Proposed modifications with significant or substantial effects

HTS no., table no., and product 

description 

Effect on U.S. 

imports from 

NAFTA 

partners

Effect on 

U.S. total 

imports

Effect on 

U.S. exports 

to NAFTA 

partners

Effect on 

U.S. total 

exports

Effect on 

U.S. 

production

2103.90 (table 3.1)

Sauces derived from fish and 

non-alcoholic preparations of 

yeast extract

Negligible Negligible Significant * Significant * Negligible

2903.19 (table 3.16)

Certain other saturated 

chlorinated derivatives of acyclic 

hydrocarbons

Significant Negligible None None Negligible

2916.32 (table 3.41)

Benzoyl peroxide and benzoyl 

chloride

Substantial Negligible None None Negligible

2918.21–2918.23 (table 3.48)

Salicylic acid and o-acetylsalicylic 

acid

Significant Negligible None None Negligible

2922.11–2922.21 (table 3.55)

Certain oxygen-function aminocompounds

Negligible Negligible Significant * Negligible Negligible

2924.11–2924.21 (table 3.59)

Acyclic amides and certain cyclic 

amides

Significant Negligible Negligible Negligible Negligible

3006.92 (table 3.74)

Waste pharmaceuticals

None None Substantial* Negligible Negligible

3204.20–3204.90 (table 3.80)

Fluorescent brightening agents 

and luminophores

Substantial Negligible Negligible Negligible Negligible

3206.50 (table 3.83)

Inorganic products of a kind used 

as luminophores

Substantial Negligible Negligible Negligible Negligible

3304.10–3305.90 (table 3.84)

Beauty or make-up preparations 

and preparations for hair

None None Significant * Negligible Negligible

3824.90 (table 3.95)

Chemical products and 

preparations, not elsewhere 

specified or included

Negligible Negligible Significant * Negligible Negligible

3901–3914 (table 3.97)

Polymers in primary forms; plastic 

resins; silicones; cellulose

Negligible Negligible Significant * Negligible Negligible

2-6
TABLE 2.1 Summary of effects advice: Proposed modifications with significant or substantial effects—Continued

HTS no., table no., and product 

description 

Effect on U.S. 

imports from 

NAFTA 

partners

Effect on 

U.S. total 

imports

Effect on 

U.S. exports 

to NAFTA 

partners

Effect on 

U.S. total 

exports

Effect on 

U.S. 

production

4013–4015 (table 3.109)

Inner tubes; hygienic or 

pharmaceutical articles of rubber; 

and articles of apparel and 

accessories of rubber

Negligible Negligible Significant Negligible Negligible

7419.99 (table 3.123)

Other articles of copper, not 

elsewhere specified

Negligible Negligible Significant Negligible Negligible

8408.10 (table 3.139)

Diesel engines for marine 

propulsion

Significant Negligible Negligible Negligible Negligible

8518.10–8518.30 (table 3.173)

Microphones and their stands; 

loudspeakers; and headphones 

and earphones

Negligible Negligible Significant * Negligible Negligible

8519.20–8519.89 (table 3.174)

Sound recording and reproducing 

apparatus 

Negligible Negligible Significant * Negligible Negligible

9004.10 (table 3.189)

Sunglasses

Negligible Negligible Significant Negligible Negligible

9503.00–9505.90 (table 3.210)

Various toys and games

None None Significant * Negligible Negligible

9614 (table 3.212)

Smoking pipes and cigar or 

cigarette holders, and parts 

Significant Negligible Negligible Negligible Negligible

Note: In instances in which “significant” or “substantial” is followed by an asterisk (e.g., “Significant *”), the results of the 

proposed modification are likely overstated because, as explained in chapter 2, it was necessary to base the analysis 

on the assumption that all U.S. exports to Mexico in 2012 were assessed the MFN rates of duty. The effect on U.S. 

exports to NAFTA partners will be reduced to the extent that U.S. exports to Mexico currently receive duty-free 

treatment under NAFTA. 

2-7

CHAPTER 3

Advice on the Probable Economic Effect of 

Certain Proposed Modifications to the Rules 

of Origin Contained in the North American 

Free Trade Agreement

This chapter provides the Commission’s advice for each of the 212 proposed rule 

modifications. Each proposed rule is covered in a separate table. The first column of each 

table lists the range of HTS chapters, headings, or subheadings that are covered by the 

proposed rule. The rule of origin currently in effect for the covered HTS chapters, 

headings, or subheadings is presented in the second column. The proposed rule is 

presented in the third column. The fourth column of each table provides a summary of the 

Commission’s probable economic effect advice. Below each table, the proposed 

modification and its probable economic effect are described in greater detail.

3-1

3-3

TABLE FOR HTS CHAPTER 21

TABLE 3.1 Sauces derived from fish and nonalcoholic preparations of yeast extract (other than sauces)

TABLE 3.1: Modification and effect

Modification: Under the existing rules, manufacturers may use active yeasts of HTS subheading 2102.10 and inactive 

yeasts classified in subheading 2102.20 from non-NAFTA countries as inputs in mixed condiments and seasonings,

which then qualify for NAFTA status. Non-originating inputs classified in other chapters may also be used to make 

goods of this subheading.

The proposed modification is liberalizing because it would allow the production of sauces, mixed condiments, and 

mixed seasonings of subheading 2103.90 from non-originating ingredients classified in any other subheading, including 

those of chapter 21. That is, it would also permit U.S. manufacturers to use the extracts, essences, and concentrates of 

coffee, tea, maté or their substitutes of subheadings 2101.11 through 2101.30; the sauces and preparations of 

subheadings 2103.10 through 2103.90; the soups and broth preparations of subheadings 2104.10 and 2104.20; the ice 

cream and other edible ice of subheading 2105.00; and the food preparations not elsewhere specified of subheadings 

2106.10 through 2106.90 from non-NAFTA countries as inputs in mixed condiments and seasonings that would then 

qualify for NAFTA status. As an example, non-originating soy sauce of subheading 2103.10 could be used to produce a 

sauce or condiment of subheading 2103.90. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total U.S. 

imports. U.S. NTR duty rates for sauces and preparations of mixed condiments and mixed seasonings of subheading 

2103.90 range from free to 7.5 percent ad valorem with the exception of tariff item 2103.90.78, which has an NTR duty 

rate of 30.5 cents/kg plus 6.4 percent ad valorem. However, only 3 percent of U.S. imports from NAFTA partners of

products covered by the rule were dutiable in 2012, resulting in an effective tariff of less than 0.5 percent ad valorem. 

The proposed modification could potentially result in a significant increase in U.S. exports to NAFTA partners, which 

totaled $377.6 million for this 6-digit subheading in 2012. For Canada, MFN rates of duty range from 8 to 11 percent ad 

valorem; for Mexico, the MFN rate of duty is 20 percent ad valorem. For Canadian imports from the United States in 

2012, the effective tariff applied to the covered products was 0.5 percent ad valorem.3 If MFN rates of duty are applied 

to U.S. exports to Mexico, the estimated effective tariff on all U.S exports to Mexico of goods covered by this rule is 20 

percent ad valorem.4 Using the actual duties paid on U.S. exports to Canada and assuming the MFN rates apply to 

U.S. exports to Mexico, the effective tariff on U.S. exports to NAFTA partners in 2012 was 6 percent ad valorem.5

Despite the high

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all U.S. 

exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent that 

U.S. exports to Mexico currently receive the NAFTA preferential rate of duty. 2 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all U.S. 

exports to Mexico currently paid the MFN rate of duty. 3 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division. 4 Commission estimate based Mexican import data from Global Trade Atlas. 5 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas.

HTS no. Existing rule Proposed rule Probable effect advice

2103.90 7A.(A) A change to mixed 

condiments or mixed 

seasonings of subheading 

2103.90 from yeasts of 

subheadings 2102.10 or 

2102.20 or any other chapter;

or

(B) A change to any other 

good of subheading 2103.90 

from any other chapter.

A change to subheading 2103.90 

from any other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Significant

 increase1

U.S. total trade:

 Imports: Negligible

 Exports: Significant

 increase2

U.S. production: Negligible
3-4

TABLE 3.1: Modification and effect—Continued

effective tariff, the potential increase in U.S. exports is moderated somewhat because U.S. exports already account for 

a large share of the Canadian and Mexican markets (45 percent in 2012) and U.S. exports to NAFTA partners also 

account for a large share of total U.S. exports of these products (46 percent in 2012). The proposed rule would also 

likely result in significant increase in total U.S. exports, which totaled $826.1 million for this 6-digit subheading in 2012. 

The effect on U.S. production would likely be negligible because total U.S. exports of these products represent a small 

share of U.S. production of these products (estimated at about 13 percent in 2012). 
3-5

TABLES FOR HTS CHAPTER 27

TABLE 3.2 Liquefied natural gas

HTS no. Existing rule Proposed rule Probable effect advice

2711.11 4A. A change to a good of 

subheading 2711.11 from within 

that subheading or any other 

subheading, provided that the 

non-originating feedstock 

constitutes no more than 49 

percent by volume of the good.

A change to a good of 

subheading 2711.11 from within 

that subheading or any other 

subheading, provided that the 

non-originating feedstock of 

subheading 2711.11 constitutes 

no more than 49 percent by 

volume of the good.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.2: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin. The proposed 

rule is intended to clarify that the non-originating feedstock must come from the stated subheading, in this case, 

2711.11.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-6

CHAPTER 27

TABLE 3.3 Liquefied propane, butanes, ethylene, propylene, butylene, and butadiene

HTS no. Existing rule Proposed rule Probable effect advice

2711.12–

2711.14

4B. A change to a good of 

subheadings 2711.12 through 

2711.14 from within that 

subheading or any other 

subheading, including another 

subheading within the group, 

provided that the non-originating 

feedstock constitutes no more 

than 49 percent by volume of 

the good.

A change to a good of 

subheading 2711.12 through 

2711.14 from within that 

subheading or any other 

subheading, including another 

subheading within that group, 

provided that the non-originating 

feedstock of subheading 

2711.12 through 2711.14 

constitutes no more than 49 

percent by volume of the good.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.3: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin. The proposed 

rule is intended to clarify that the non-originating feedstock must come from the stated subheadings, in this case, 

2711.12 through 2711.14.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-7

CHAPTER 27

TABLE 3.4 Natural gas in gaseous state

HTS no. Existing rule Proposed rule Probable effect advice

2711.21 4D. A change to subheading 

2711.21 from any other 

subheading, except from 

subheading 2711.11.

A change to subheading 

2711.21 from any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.4: Modification and effect

Modification: The current NAFTA rule allows natural gas in gaseous state to be made from non-originating inputs 

from any other subheading except from subheading 2711.11, which covers liquefied natural gas. The proposed 

modification is liberalizing because it would allow liquefied natural gas from a non-NAFTA country to be converted to 

natural gas in gaseous state and be eligible for NAFTA benefits. Any other non-originating input would still be 

required to undergo a change in subheadings in order for the final product (2711.21) to qualify for NAFTA benefits.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these products would not be affected by the proposed rule change.
3-8

CHAPTER 27

TABLE 3.5 Petroleum bitumen

HTS no. Existing rule Proposed rule Probable effect advice

2713.20 4H. A change to a good of 

subheading 2713.20 from within 

that subheading or any other 

subheading, provided that the 

non-originating feedstock 

constitutes no more than 49 

percent by volume of the good.

A change to a good of 

subheading 2713.20 from within 

that subheading or any other 

subheading, provided that the 

non-originating feedstock of 

subheading 2713.20 constitutes

no more than 49 percent by 

volume of the good.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.5: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin. The 

proposed rule is intended to clarify that the non-originating feedstock must come from the stated subheading, in this 

case, 2713.20.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-9

TABLES FOR HTS CHAPTER 28

TABLE 3.6 Fluorine, chlorine, bromine and iodine; sulfur; carbon; hydrogen, rare gases, and other nonmetals

HTS no. Existing rule Proposed rule Probable effect advice

2801.10 –

2804.90

1. A change to subheadings 

2801.10 through 2801.30 from 

any other subheading, 

including another subheading 

within that group.

2. A change to headings 2802 

through 2803 from any other 

heading, including another 

heading within that group.

3. A change to subheadings 

2804.10 through 2804.50 from 

any other subheading, 

including another subheading 

within that group.

4. (A) A change to 

subheadings 2804.61 through 

2804.69 from any subheading 

outside that group; or

(B) A change to subheadings 

2804.61 through 2804.69 from 

any other subheading within 

that group, whether or not 

there is also a change from 

any subheading outside that 

group, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

5. A change to subheadings 

2804.70 through 2804.90 from 

any other subheading, 

including another subheading 

within that group.

A change to subheading 

2801.10 through 2804.90 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible
3-10

TABLE 3.6: Modification and effect

Modification: The proposed modification would make no substantive changes to the current NAFTA rules for 

subheadings 2801.10 through 2804.50 and 2804.70 through 2804.90. There are no international subheadings under 

headings 2802 and 2803.

The current NAFTA rules include a regional value content requirement that applies to silicon of subheadings 2804.61 

and 2804.69. Silicon of 99.99 percent or greater purity (subheading 2804.61) made from non-originating silicon of 

lower purity (subheading 2804.69) would have to meet the regional value content in order to qualify for NAFTA 

preferences. The proposed modification is liberalizing because it removes this regional value content requirement for 

silicon.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports because most U.S. imports that are covered by the rule already enter free of duty, resulting in an

effective tariff of less than 0.5 percent ad valorem. Also, as noted above, the proposed modification substantively 

affects only subheadings 2804.61 and 2804.69. The U.S. NTR rate of duty is free for subheading 2804.61, and more 

than 99 percent of U.S. imports under subheading 2804.69 from Canada and Mexico were free of duty under NAFTA 

in 2012. The NTR rates of duty for U.S. imports under tariff items in subheading 2804.69 range from 5.3 to 5.5 

percent ad valorem.

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. 

Canada’s MFN duty rate for all the subheadings covered by the rule is free. Mexico’s MFN duty rates are also MFN

free for the products covered under the subheadings that would be substantively affected by the proposed 

modifications—that is, subheadings 2804.61 and 2804.69. The rules for subheadings 2801.10 through 2804.50 and 

2804.70 through 2804.90 remain the same; hence trade in the products covered under these subheadings would not 

be affected.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-11

CHAPTER 28

TABLE 3.7 Strontium, barium, and other alkali or alkaline-earth metals

HTS no. Existing rule Proposed rule Probable effect advice

2805.19 6A. (A) A change to other

alkali metals of subheading

2805.19 from other alkaline

earth metals of subheading

2805.19 or from any other 

subheading; or

(B) A change to other

alkali earth metals of

subheading 2805.19 from

other alkali metals of 

subheading 2805.19 or

from any other

subheading.

A change to a good of 

subheading 2805.19 from any 

other good within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.7: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin. The 

proposed modification is a simplification of the wording in the current rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-12

CHAPTER 28

TABLE 3.8 Hydrogen chloride (hydrochloric acid); chlorosulfuric acid; sulfuric acid; nitric acid; sulfonitric acids; 

diphosphorous pentaoxide; phosphoric acid; polyphosphoric acids, whether or not chemically defined; oxides of 

boron; boric acids

HTS no. Existing rule Proposed rule Probable effect advice

2806.10–

2810.00

7. (A) A change to subheading 

2806.10 from any other 

subheading, except from 

subheading 2801.10; or

(B) A change to subheading 

2806.10 from subheading 

2801.10, whether or not there 

is also a change from any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

8. A change to subheading 

2806.20 from any other 

subheading.

9. A change to headings 2807 

through 2808 from any other 

heading, including another 

heading within that group

10. A change to subheadings 

2809.10 through 2810.00 from 

any other subheading, 

including another subheading 

within that group.

A change to subheading 

2806.10 through 2810.00 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.8: Modification and effect

Modification: The proposed rule covers hydrogen chloride (hydrochloric acid); chlorosulfuric acid; sulfuric acid; nitric 

acid; sulfonitric acids; diphosphorous pentaoxide; phosphoric acid; polyphosphoric acids; oxides of boron; and boric 

acids. The current NAFTA rules include a regional value content requirement that applies to the production of 

hydrogen chloride (subheading 2806.10) from non-originating chlorine (subheading 2801.10). When this regional 

value content requirement is not met, the chlorine used to produce hydrogen chloride must be made in North America

in order for NAFTA origin to be conferred.

The proposed modification is liberalizing because it removes both the product exclusion and the regional value 

content requirement. The proposed rule would make no substantive changes to the current NAFTA rules for 

subheadings 2806.20 through 2810.00. There are no international subheadings under headings 2807 and 2808.

Effect: The proposed modification would likely have no effect on U.S. imports under NAFTA and on total U.S. imports 

because subheading 2806.10, the only product affected by the proposed modification, is free of duty on an NTR 

basis. 

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. 

Canadian and Mexican MFN rates of duty for imports under 2806.10 are free. 

The proposed modification would likely have no effect on U.S. production because there will likely be no effect on

total U.S. trade.
3-13

CHAPTER 28

TABLE 3.9 Other inorganic acids and other inorganic oxygen compounds of nonmetals; halides and halide oxides of 

nonmetals; sulfides of nonmetals; commercial phosphorous trisulfide; and ammonia, anhydrous or in aqueous 

solution

HTS no. Existing rule Proposed rule Probable effect advice

2811.11–

2814.20

10A. A change to

subheadings 2811.11

through 2811.22 from any

other subheading, including

another subheading within

that group.

10B. (A) A change to sulfur

dioxide of subheading

2811.29 from any other good

of subheading 2811.29 or any

other subheading; or

(B) A change to any other

good of subheading 2811.29

from sulfur dioxide of 

subheading 2811.29 or any

other subheading.

10C. A change to

subheadings 2812.10

through 2814.20 from any

other subheading, including

another subheading within

that group.

A change to a good of any of 

subheading 2811.11 through 

2814.20 from any other good 

within that subheading or any 

other subheading, including 

another subheading within 

that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.9: Modification and effect

Modification: The current NAFTA rule allows a good of subheadings 2811.11 through 2814.20 made from nonoriginating inputs from any other subheading, including a subheading within that group, to receive the preferential rate 

of duty. The current rules also allow a change from sulfur dioxide of subheading 2811.29 to any other good of 

subheading 2811.29, or vice versa, to confer origin. 

The proposed modification is liberalizing because it would allow goods of subheadings 2811.11 through 2814.20 to 

be made from non-originating inputs of same subheading. In addition, the proposed rule would continue to allow any 

subheading-level tariff change to confer origin.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. NTR rates of duty range from free to 4.2 percent ad valorem. In 2012, less than 1 percent of U.S. 

imports of the products covered by this rule from Canada and Mexico were dutiable, resulting in an effective tariff rate 

on U.S. imports from NAFTA partners of less than 0.5 percent ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN duty rate for all of the subheadings covered by the rule is free. Mexico’s MFN duty rates are 

free for the products covered under subheadings 2811.19 through 2814.20, while the duty rates for subheading 

2811.11 range from free to 7 percent ad valorem. If MFN rates of duty were applied to U.S. exports to the NAFTA 

partners, the estimated effective tariff rate on all U.S exports to NAFTA partners of goods covered by this rule was 

less than 0.5 percent ad valorem in 2012.

1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-14

CHAPTER 28

TABLE 3.10 Sodium hydroxide (caustic soda); potassium hydroxide (caustic potash); and peroxides of sodium or 

potassium

HTS no. Existing rule Proposed rule Probable effect advice

2815.11–

2815.30

11. (A) A change to 

subheadings 2815.11 through 

2815.12 from any other 

heading; or

(B) A change to subheadings 

2815.11 through 2815.12 from 

any other subheading within 

heading 2815, including

another subheading within that 

group, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

12. A change to subheading 

2815.20 from any other 

subheading.

13. (A) A change to 

subheading 2815.30 from any 

other subheading, except from 

subheading 2815.11 through 

2815.20; or

(B) A change to subheading 

2815.30 from subheadings 

2815.11 through 2815.20, 

whether or not there is also a

change from any other 

subheading, provided there is 

a regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2815.11 through 2815.30 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-15

TABLE 3.10: Modification and effect

Modification: The current rule imposes limitations on the non-originating inputs that may be used to produce goods

of subheadings 2815.11 through 2815.30 for those products to qualify for NAFTA preferences. Certain goods are 

subject to regional value content requirements. For products classified in subheading 2815.11 or 2815.12, nonoriginating inputs classified in other headings may be used, but if non-originating inputs classified in subheadings

within heading 2815 are used, the final product is subject to the regional value content requirement. For example, 

sodium hydroxide in aqueous solution (subheading 2815.12) made from non-originating solid sodium hydroxide 

(subheading 2815.11) can receive the preferential rate of duty provided that it meets the regional value content 

requirement. For products classified in subheading 2815.30, any input classified in subheadings 2815.11 through 

2815.20 needs to be made in North America, unless the final product meets the regional value content requirement.

The proposed modification is liberalizing because it removes the regional value content requirement for chemicals 

covered in subheadings 2815.11, 2815.12, and 2815.30, and it would allow any subheading-level tariff change to 

confer origin. The proposed modification does not substantively change the rule of origin for goods of subheading

2815.20.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. U.S. imports under the subheadings 2815.11 through 2815.201 are free of duty on an NTR basis, and 

all U.S. imports under subheading 2815.30 from Canada and Mexico entered free of duty under NAFTA in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN duty rates for all the subheadings covered by the rule are free. Mexico’s MFN duty rates are 

free for the products covered under the subheadings 2815.12 through 2815.30, while the duty rate for Mexican 

imports under subheading 2815.11 is 5 percent ad valorem. If MFN rates of duty are applied to U.S. exports to the 

NAFTA partners, the estimated effective tariff rate on all U.S exports to NAFTA partners of the goods covered by this 

rule was less than 0.5 percent ad valorem in 2012.

2

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Subheading 2815.20 is not substantively changed by the proposed modification. 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-16

CHAPTER 28

TABLE 3.11 Other inorganic bases and oxides; hydroxides and peroxides of metals; salts and peroxysalts, of 

inorganic acids and metals; and miscellaneous inorganic chemicals

HTS no. Existing rule Proposed rule Probable effect advice

2816.10–

2850.00

14. A change to subheading 

2816.10 from any other 

subheading.

14A. (A) A change to oxide, 

hydroxide or peroxide of 

strontium of subheading 

2816.40 from oxide, hydroxide 

or peroxide of barium of 

subheading 2816.40 or from 

any other subheading.

(B) A change to oxide, 

hydroxide or peroxide of 

barium of subheading 2816.40 

from oxide, hydroxide or 

peroxide of strontium of 

subheading 2816.40 or from 

any other subheading.

14B. A change to subheadings 

2817.00 through 2818.30 from 

any other subheading, 

including another subheading 

within that group.

15. (A) A change to 

subheading 2819.10 from any 

other heading; or

(B) A change to subheading 

2819.10 from subheading 

2819.90, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

16. A change to subheading 

2819.90 from any other 

subheading.

A change to a good of any of 

subheading 2816.10 through 

2850.00 from any other good 

within that subheading or any 

other subheading, including 

another subheading within 

that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-17

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

17. (A) A change to 2820.10 

from any other heading; or

(B) A change to subheading 

2820.10 from subheading 

2820.90, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

18. A change to subheading 

2820.90 from any other 

subheading.

19. (A) A change to 

subheadings 2821.10 through 

2821.20 from any other 

heading; or

(B) A change to subheadings 

2821.10 through 2821.20 from 

any other subheading within 

that group, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

20. A change to headings 2822 

through 2823 from any other 

heading, including another 

heading within that group.
3-18

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

21. (A) A change to 

subheading 2824.10 from any 

other heading; or

(B) A change to subheading 

2824.10 from subheading 

2824.90, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

21A. (A) A change to 

subheading 2824.90 from any 

other heading;

(B) A change to red lead or 

orange lead of subheading 

2824.90 from any other good 

of subheading 2824.90 or 

subheading 2824.10, whether 

or not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

(C) A change to any other 

good of subheading 2824.90 

from red lead or orange lead of 

subheading 2824.90 or 

subheading 2824.10, whether 

or not there is also a change 

from any other heading, 

provided there is a regional

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.
3-19

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

22. A change to subheadings 

2825.10 through 2825.90 from 

any other subheading, 

including another subheading 

within that group.

22A. A change to subheading 

2826.12 from any other 

subheading.

22B. (A) A change to fluorides 

of ammonium or of sodium of 

subheading 2826.19 from any 

other good of subheading 

2826.19 or any other 

subheading; or

(B) A change to any other good 

of subheading 2826.19 from 

fluorides of ammonium or of 

sodium of subheading 2826.19 

or any other subheading.

22C. A change to subheading 

2826.30 from any other 

subheading.

22D. (A) A change to 

fluorosilicates of sodium or of 

potassium of subheading 

2826.90 from any other good 

of subheading 2826.90 or any 

other subheading; or

(B) A change to any other good 

of subheading 2826.90 from 

fluorosilicates of sodium or of 

potassium of subheading 

2826.90 or any other 

subheading.

22E. A change to subheadings 

2827.10 through 2827.35 from 

any other subheading, 

including another subheading 

within that group.

22F. (A) A change to barium, 

iron, cobalt or zinc chlorides of 

subheading 2827.39 from other 

chlorides of subheading 

2827.39 or any other 

subheading; or
3-20

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to other chlorides 

of subheading 2827.39 from 

barium, iron, cobalt or zinc 

chloride of subheading 

2827.39 or any other 

subheading.

22G. A change to subheadings 

2827.41 through 2827.60 from 

any other subheading, 

including another subheading 

within that group.

22H. A change to subheadings 

2828.10 through 2828.90 from 

any other subheading, 

including another subheading 

within that group.

23. A change to subheading 

2829.11 from any other 

subheading.

24. (A) A change to 

subheadings 2829.19 through 

2829.90 from any other 

chapter, except from chapters 

28 through 38; or

(B) A change to subheadings 

2829.19 through 2829.90 from 

any other subheading within 

chapters 28 through 38, 

including another subheading 

within that group, whether or 

not there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

25. A change to subheading 

2830.10 from any other 

subheading.

25A. (A) A change to zinc or 

cadmium sulfide of subheading 

2830.90 from any other good 

of subheading 2830.90 or any 

other subheading; or
3-21

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to any other good 

of subheading 2830.90 from 

zinc or cadmium sulfide of 

subheading 2830.90 or any 

other subheading.

25B. A change to subheadings 

2831.10 through 2832.30 from 

any other subheading, 

including another subheading 

within that group.

25C. A change to subheadings 

2833.11 through 2833.27 from 

any other subheading, 

including another subheading 

within that group.

25D. (A) A change to 

chromium or zinc sulfate of 

subheading 2833.29 from any 

other good of subheading 

2833.29 or any other 

subheading; or

(B) A change to any other good 

of subheading 2833.29 from 

chromium or zinc sulfate of 

subheading 2833.29 or any 

other subheading.

25E. A change to subheadings 

2833.30 through 2833.40 from 

any other subheading, 

including another subheading 

within that group.

25F. A change to subheadings 

2834.10 through 2834.21 from 

any other subheading, 

including another subheading 

within that group.

25G. (A) A change to bismuth 

nitrates of subheading 2834.29 

from other nitrates of 

subheading 2834.29 or from 

any other subheading; or

(B) A change to other nitrates 

of subheading 2834.29 from 

bismuth nitrates of subheading 

2834.29 or from any other 

subheading.
3-22

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

25H. A change to subheadings 

2835.10 through 2835.26 from 

any other subheading, 

including another subheading 

within that group.

25I. A change to trisodium 

phosphates of subheading 

2835.29 from any other good 

of subheading 2835.29 or any 

other subheading.

25J. A change to any other 

good of subheading 2835.29 

from trisodium phosphate of 

subheading 2835.29 or any 

other subheading.

25K. A change to subheadings 

2835.31 through 2835.39 from 

any other subheading, 

including another subheading 

within that group.

[26. Rule deleted.]

27. (A) A change to 

subheadings 2836.20 through 

2836.30 from any subheading 

outside that group; or

(B) A change to subheadings 

2836.20 through 2836.30 from 

any other subheading within 

that group, whether or not 

there is also a change from 

any subheading outside that 

group, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

28. A change to subheadings 

2836.40 through 2836.92 from 

any other subheading, 

including another subheading 

within that group.
3-23

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

28A. (A) A change to 

ammonium or lead carbonates 

of subheading 2836.99 from 

any other good of subheading 

2836.99 or any other 

subheading; or

(B) A change to any other good 

of subheading 2836.99 from 

ammonium or lead carbonates 

of subheading 2836.99 or any 

other subheading.

29. A change to subheadings 

2837.11 through 2837.20 from 

any other subheading, 

including another subheading 

within that group.

30. A change to subheadings 

2839.11 through 2839.19 from 

any other subheading, 

including another subheading 

within that group.

31. (A) A change to potassium 

silicates of subheading 

2839.90 from any other good 

of subheading 2839.90 or any 

other subheading; or

(B) A change to any other good 

of subheading 2839.90 from 

potassium silicates of 

subheading 2839.90 or any 

other subheading.

32. A change to subheadings 

2840.11 through 2840.30 from 

any other subheading, 

including another subheading 

within that group.

33. A change to subheading 

2841.30 from any other 

subheading.

34. (A) A change to chromates 

of zinc or lead of subheading 

2841.50 from any other good 

of subheading 2841.50 or any 

other subheading;
3-24

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to potassium 

dichromate of subheading 

2841.50 from any other good 

of subheading 2841.50 or any 

other subheading; or

(C) A change to any other 

good of subheading 2841.50 

from potassium dichromate or 

chromates of zinc or lead of 

subheading 2841.50 or any 

other subheading.

35. A change to subheadings 

2841.61 through 2841.80 from 

any other subheading, 

including another subheading 

within that group.

36. (A) A change to aluminates 

of subheading 2841.90 from 

any other good of subheading 

2841.90 or any other 

subheading; or

(B) A change to any other good 

of subheading 2841.90 from 

aluminates of subheading 

2841.90 or any other 

subheading.

37. (A) A change to double or 

complex silicates, including 

chemically defined 

aluminosilicates, of subheading 

2842.10 from non-chemically 

defined aluminosilicates of 

subheading 2842.10 or from 

any other subheading;

(B) A change to non-chemically 

defined aluminosilicates of 

subheading 2842.10 from any 

other chapter, except from 

chapters 28 through 38; or
3-25

CHAPTER 28

TABLE 3.11—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(C) A change to nonchemically defined 

aluminosilicates of subheading 

2842.10 from double or 

complex silicates, including 

chemically defined 

aluminosilicates, of subheading 

2842.10 or from any other 

subheading within chapters 28 

through 38, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

38. (A) A change to fulminates, 

cyanates or thiocyanates of 

subheading 2842.90 from any 

other good of subheading 

2842.90 or any other 

subheading; or

(B) A change to any other good 

of subheading 2842.90 from 

fulminates, cyanates or 

thiocyanates of subheading 

2842.90 or any other 

subheading.

39. A change to subheadings 

2843.10 through 2850.00 from 

any other subheading, 

including another subheading 

within that group.

TABLE 3.11: Modification and effect

Modification: The 2007 WCO change to the Harmonized System (HS) deleted a number of subheadings within 

2816.10 through 2850.00 due to the low volume of trade. Updates to the NAFTA rules of origin ensured that prior 

origin treatment could continue; however, the changes resulted in complex NAFTA rules of origin for many of the 

subheadings within this group. The proposed rule streamlines these complex rules.

The current NAFTA rule includes regional value content requirements that apply to many subheadings within 

headings/subheadings 2816.10 through 2850.00 when non-originating inputs classified within the same heading or 

subheading as the finished good are used. In a few cases, such as chlorates, borates, and iodates of subheadings 

2829.19 through 2829.90, the regional value requirement applies when non-originating inputs of chapter 28 through 

38 are used. Other goods of subheadings 2816.10 through 2850.00 are covered by heading- or subheading-level 

tariff shifts or, in some cases, transformation within a subheading.

The proposed modification is liberalizing because it would allow any subheading-level tariff change to confer origin. It 

would also allow production of goods from non-originating inputs within a subheading to confer origin.
3-26

TABLE 3.11: Modification and effect—Continued

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. NTR duties for the subheadings covered by the proposed rule range from free to 5.5 percent ad 

valorem. The majority of U.S. imports from Canada and Mexico covered by the rule entered free of duty under either 

NTR rates or NAFTA in 2012, resulting in an effective tariff of less than 0.5 percent ad valorem. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The majority of subheadings covered by the rule are free of duty on an MFN basis for Canada and Mexico. If 

MFN rates of duty are applied to U.S. exports to the NAFTA partners, the estimated effective tariff on all U.S exports 

to NAFTA partners of goods covered by this rule was 1.2 percent ad valorem in 2012.

1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on Canadian and Mexican import data obtained from Global Trade Atlas.
3-27

CHAPTER 28

TABLE 3.12 Mercury compounds and certain other inorganic compounds

HTS no. Existing rule Proposed rule Probable effect advice

2852–2853 40. (A) A change to mercury 

oxide or hydroxide of heading 

2852 from any other good of 

heading 2852 or any other

heading, except from 

subheading 2825.90;

(B) A change to mercury 

fluoride of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2826.19;

(C) A change to mercury 

fluorosilicates of heading 2852 

from any other good of heading 

2852 or any other heading, 

except from subheading 

2826.90;

(D) A change to mercury 

chloride of heading 2852 from 

barium chloride of subheading 

2827.39, any other good of 

heading 2852 or any other 

heading, except from any other 

good of subheading 2827.39;

(E) A change to mercury 

oxychloride of heading 2852 

from any other good of heading 

2852 or any other heading, 

except from subheading 

2827.49;

(F) A change to mercury 

bromide or mercury 

oxybromide of heading 2852 

from any other good of heading 

2852 or any other heading, 

except from subheading 

2827.59;

(G) A change to mercury iodide 

or mercury iodide oxide of 

heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

subheading 2827.60;

A change to a good of any of 

heading 28.52 through 28.53 

from any other good within 

that heading or any other 

heading, including another 

heading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-28

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(H) A change to mercury 

chlorite, mercury hypochlorite 

or mercury hypobromite of 

heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

subheading 2828.90;

(I) A change to mercurous 

chlorate of heading 2852 from 

any other chapter, except from 

chapters 29 through 38;

(J) A change to mercurous 

chlorate of heading 2852 from 

any other good of heading 

2852 or any other heading 

within chapters 28 through 38, 

whether or not there is also a 

change from any other chapter, 

except from subheading 

2829.19, provided there is a 

regional value content of not 

less than:

(1) 60 percent when the 

transaction value method is 

used; or

(2) 50 percent when the net 

cost method is used;

(K) A change to mercury 

perchlorate, mercury bromate, 

mercury perbromates, mercury

iodate or mercury periodate of 

heading 2852 from any other 

chapter, except from chapters 

29 through 38;

(L) A change to mercury 

perchlorate, mercury bromate, 

mercury perbromates, mercury

iodate or mercury periodate of 

heading 2852 from any other 

good of heading 2852 or any 

other heading within chapters 

28 through 38, whether or not 

there is also a change from 

any other chapter, except from 

subheading 2829.90, provided 

there is a regional value 

content of not less than:
3-29

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(1) 60 percent when the 

transaction value method is 

used; or

(2) 50 percent when the net 

cost method is used;

(M) A change to mercury 

sulfide or mercury polysulfide 

of heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

subheading 2830.90;

(N) A change to mercury sulfite 

of heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

subheading 2832.20;

(O) A change to mercury 

sulfate of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2833.29;

(P) A change to mercurous

nitrite of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2834.10;

(Q) A change to mercury 

nitrate of heading 2852 from 

bismuth nitrates of subheading 

2834.29, any other good of 

heading 2852 or any other 

heading, except from any other 

good of subheading 2834.29;

(R) A change to phosphates of 

mercury of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2835.29;

(S) A change to 

polyphosphates of mercury of 

heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

subheading 2835.39;
3-30

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(T) A change to mercury 

carbonate of heading 2852 

from any other good of heading 

2852 or any other heading, 

except from subheading 

2836.99;

(U) A change to mercury 

oxycyanide or mercury cyanide 

of heading 2852 from any other 

good of heading 2852 or any 

other subheading, except from 

subheading 2837.19;

(V) A change to complex 

cyanides of mercury of heading 

2852 from any other good of 

heading 2852 or any other 

heading, except from 

subheading 2837.20;

(W) A change to mercuric 

fulminate, mercury thiocyanate 

or mercury cyanate of heading 

2852 from any other good of 

heading 2852 or any other 

heading, except from 

subheading 2842.90;

(X) A change to mercury 

chromate or mercury 

dichromate of heading 2852 

from potassium dichromate of 

subheading 2841.50, any other 

good of heading 2852 or any 

other heading, except from any 

other good of subheading 

2841.50;

(Y) A change to double or 

complex salts of mercury of 

heading 2852 from 

nonchemically defined 

aluminosilicates of subheading 

2842.10, any other good of 

heading 2852 or any other 

heading, except from any other 

good of subheading 2842.10;

(Z) A change to other salts of 

mercury of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2842.90;
3-31

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(AA) A change to precious 

metal compounds containing 

mercury of heading 2852 from

any other good of heading 

2852 or any other heading, 

except from subheading 

2843.90;

(BB) A change to ammonium 

mercuric chloride (ammonium 

chloromercurate), mercury 

hydrides, mercury azides or 

mercury nitride of heading 

2852 from any other good of 

heading 2852 or any other 

heading, except from 

subheading 2850.00;

(CC) A change to 

aminomercuric chloride or 

other inorganic compounds of 

mercury of heading 2852 from 

any other chapter, except from 

chapters 29 through 38;

(DD) A change to 

aminomercuric chloride or 

other inorganic compounds of 

mercury of heading 2852 from 

any other good of heading 

2852 or any other heading 

within chapters 28 through 38, 

whether or not there is also a 

change from any other chapter, 

except from subheading 

2853.00, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used;

(EE) A change to mercury 

phenate or mercury phenol and 

its salts of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2907.11;
3-32

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(FF) A change to mercuric 

sodium p-phenolsulfonate or 

mercury derivatives containing 

only sulfo groups, their salts 

and esters of heading 2852 

from any other good of heading 

2852 or any other heading, 

except from heading 2907 or

subheading 2908.99;

(GG) A change to mercuric 

sodium p-phenolsulfonate or 

mercury derivatives containing 

only sulfo groups, their salts 

and esters of heading 2852 

from heading 2907, whether or 

not there is also a change from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2908.99, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used;

(HH) A change to 

hydroxymercuri-o-nitrophenol, 

sodium salt or 5-methyl-2-nitro7-oxa-8-

mercurabicyclo[4.2.0]octa1,3,5-triene or halogenated, 

nitrated or nitrosated 

derivatives of phenols or

phenol-alcohols of mercury of 

heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

heading 2907 or subheading 

2908.99;
3-33

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(II) A change to 

hydroxymercuri-o-nitrophenol, 

sodium salt or 5-methyl-2-nitro7-oxa-8-

mercurabicyclo[4.2.0]octa1,3,5-triene or halogenated, 

nitrated or nitrosated 

derivatives of phenols or 

phenol-alcohols of mercury of 

heading 2852 from heading 

2907, whether or not there is 

also a change from any other 

good of heading 2852 or any 

other heading, except from 

subheading 2908.99, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used;

(JJ) A change to mercury 

pentanedione or other acyclic 

ketones without other oxygen 

function of heading 2852 from

any other good of heading 

2852 or any other heading, 

except from subheading 

2914.19;

(KK) A change to mercury 

acetates of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2915.21 or 2915.29;

(LL) A change to mercury 

acetates of heading 2852 from 

subheading 2915.21, whether 

or not there is also a change 

from any other good of heading 

2852 or any other heading, 

except from subheading 

2915.29, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used;
3-34

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(MM) A change to mercury 

oleate of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2915.90;

(NN) A change to octadecenoic 

acid mercury salt or oleic, 

linoleic, or linolenic acids of 

mercury, their salts or esters of 

heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

subheading 2916.15;

(OO) A change to mercuric 

lactate of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2918.11;

(PP) A change to mercuric 

salicylate of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from subheading 

2918.21;

(QQ) A change to mercuric 

succinimide, carboximide 

function compounds of 

mercury or imine function 

compounds of mercury of 

heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

subheadings 2925.12 through 

2925.19;

(RR) A change to 

thiomerfonate sodium of 

heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

subheading 2930.90;

(SS) A change to organoinorganic-mercury compounds 

of heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

heading 2931;
3-35

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(TT) A change to 2-7-dibromo4-hydroxymercurifluorescein, 

disodium salt or other 

heterocyclic compounds with 

oxygen hetero-atom(s) of 

heading 2852 from any other 

heading, except from heading 

2932;

(UU) A change to 2-7-dibromo4-hydroxymercurifluorescein, 

disodium salt or other 

heterocyclic compounds with 

oxygen hetero-atom(s) of 

heading 2852 from 

subheadings 2932.11 through 

2932.94, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used;

(VV) A change to nucleic acids 

and their salts of mercury of 

heading 2852 from any other 

good of heading 2852 or any 

other heading, except from 

heterocyclic compounds of 

mercury of heading 2852 or 

subheadings 2934.91 through

2934.99;

(WW) A change to nucleic 

acids of mercury of heading 

2852 from any other good of 

heading 2852 or other 

heterocyclic compounds of 

subheadings 2934.91 through 

2934.99;

(XX) A change to colloidal 

mercury of heading 2852 from 

any other good of heading 

2852 or any other heading, 

except from heading 3003 or 

subheading 3006.92; or
3-36

CHAPTER 28

TABLE 3.12—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(YY) A change to colloidal 

mercury of heading 2852 from 

heading 3003, whether or not 

there is also a change from 

any other good of heading 

2852 or any other heading, 

except from subheading 

3006.92, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

41. (A) A change to heading 

2853 from any other chapter, 

except from chapters 29 

through 38; or

(B) A change to heading 2853 

from any other subheading 

within chapters 28 through 38,

whether or not there is also a 

change from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

TABLE 3.12: Modification and effect

Modification: The 2007 WCO changes to the HS created heading 2852 to classify under one heading all organic and 

inorganic compounds containing mercury, which are hazardous substances covered by the Rotterdam Convention. 

Mercury compounds that were previously classified under various subheadings of chapters 28, 29, 32, 35, 37, and 38 

are now classified under heading 2852. The NAFTA rules or origin were updated to ensure that all prior origin 

treatment would continue, and as a result, the current rules are a complicated mix of regional value content 

requirements and tariff change requirements with various excluded chapters, headings, or subheadings. The 

proposed rule is intended to streamline these complicated and lengthy rules of origin.

For heading 2853, covering miscellaneous inorganic compounds, liquid and compressed air, and certain amalgams, 

the current rule includes a regional value content requirement when non-originating inputs from chapters 28 through 

38 are used, but otherwise allows any chapter-level tariff shift other than from chapters 28 through 38 to confer origin.

The proposed modification is liberalizing because it would allow the production of goods from non-originating inputs 

classified in any other subheading to confer origin, and it removes all regional value content requirements.
3-37

TABLE 3.12: Modification and effect—continued

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, the majority of U.S. imports from Canada and Mexico covered by the rule entered free of duty 

under either NTR rates or NAFTA preferences, resulting in an effective tariff of less than 0.5 percent ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The majority of subheadings covered by the proposed rule are free of duty on an MFN basis for Canada and 

Mexico. Canada has one tariff item covered by the rule with an MFN rate of duty of 6.5 percent ad valorem, and the 

remaining tariff items are free of duty on an MFN basis. Mexico has two tariff items covered by the rule that have an 

MFN rate of duty of 6 percent ad valorem, and the remaining items are free of duty on an MFN basis. For Canadian 

imports from the United States in 2012, the effective tariff on the covered products was less than 0.5 percent ad 

valorem.

1 If MFN rates of duty are applied to U.S. exports to Mexico, the estimated effective tariff on all U.S exports 

to Mexico of goods covered by this rule was also less than 0.5 percent.2

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division. 2 Commission estimate based on Mexican import data obtained from Global Trade Atlas.
3-38

TABLES FOR HTS CHAPTER 29

TABLE 3.13 Chapter notes

HTS no. Existing rule Proposed rule Probable effect advice

Chapter 29 

Organic 

chemicals 

There are no chapter notes. Note 1: Notes 3 through 4 of 

this Chapter confer origin to a 

good of any heading or 

subheading in this Chapter, 

except as otherwise specified 

in those notes. 

Note 2: Notwithstanding Note 

1, a good is an originating 

good if it meets the applicable 

change in tariff classification 

specified in the rules of origin 

of this Chapter. 

Note 3: Chemical Reaction 

A good of this Chapter that 

results from a chemical 

reaction in the territory of one 

or more of the Parties shall be 

treated as an originating 

good.

For purposes of this section, a 

"chemical reaction" is a 

process (including a 

biochemical process) that 

results in a molecule with a 

new structure by breaking 

intramolecular bonds and by 

forming new intramolecular 

bonds, or by altering the 

spatial arrangement of atoms 

in a molecule. 

The following are not 

considered to be chemical 

reactions for the purposes of 

determining whether a good is 

originating: 

(a) dissolution in water or in 

another solvent; 

(b) the elimination of solvents, 

including solvent water; or 

(c) the addition or elimination 

of water of crystallization.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-39

CHAPTER 29

TABLE 3.13—Continued

HTS no. Existing rule Proposed rule Probable effect advice

Note 4: Purification 

A good of this Chapter that is 

subject to purification shall be 

treated as an originating good 

provided that the purification 

occurs in the territory of one 

or more of the Parties and 

results in the elimination of 

not less than 80 percent of 

the impurities. 

Note 5: Separation Prohibition 

A good that undergoes a 

change from one 

classification to another in the 

territory of one or more of the 

Parties as a result of the 

separation of one or more 

materials from a man-made 

mixture shall not be treated as 

an originating good unless the 

isolated material underwent a 

chemical reaction in the 

territory or one or more of the 

Parties.

TABLE 3.13: Modification and effect

Modification: There are currently no chapter notes for chapter 29, so compliance with existing product-specific rules 

is the only way that products containing non-originating inputs can qualify for NAFTA benefits. The proposed notes 

would add two methods to confer origin (through a chemical reaction or purification) and would provide that one 

process (separation alone) cannot confer origin. The proposed modification is liberalizing because it would allow any 

one of the new process criteria to be used to determine origin as an alternative to the existing rules for the individual 

subheadings. In the tariff nomenclature, it is possible for several chemical reactions to be accomplished for particular 

types of compounds without a subheading-level change. The proposed rule would recognize situations where other 

origin criteria are not met.

For example, the proposed chemical reaction rule would allow origin to be conferred upon p-toluidine-m-sulfonic acid 

(tariff item 2921.43.90) made using a qualifying chemical reaction from p-toluidine (tariff item 2921.43.40). The 

current NAFTA rules require a subheading-level change (with a regional value content requirement for certain 

subheading-level changes), so the derivative, if produced from non-originating p-toluidine, would not qualify as 

originating because they are both classified in subheading 2921.43 and/or, as appropriate, may not meet the regional 

value content requirement.

1

Effect: The proposed modification would likely have a negligible effect on U.S. imports of these products under 

NAFTA and on total U.S. imports. About 40 percent of total U.S. imports under chapter 29 from Canada and Mexico 

entered free of duty under NAFTA in 2012, with the majority of the NAFTA imports (almost 85 percent) entering from 

Canada. The effective tariff on total U.S. imports from Canada and Mexico for chapter 29 was less than 0.5 percent 

ad valorem in 2012. Imports from NAFTA partners represent only about 3 percent of total U.S. imports under this 

chapter.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports of goods classified in Chapter 29. Canada has an MFN rate of duty of free for most products covered by

chapter 29; a few tariff items have MFN rates of duty ranging from 2 percent to 3 percent ad valorem. Canada 

 1 Example provided by industry representative, telephone interview by USITC staff, April 23, 2013. 
3-40 

TABLE 3.13: Modification and effect—Continued 

accounted for roughly one-third of the total value of U.S. exports of the subject products to NAFTA partners in 2012. 

U.S. exports of these products to Mexico were double the value of those to Canada, reaching almost $7 billion in 

2012. Although most U.S. exports to Mexico entered under tariff items that were MFN free of duty, a number of tariff 

items have duty rates ranging from 5 percent to 15 percent ad valorem. On an overall basis, however, the effective 

tariff on all U.S. exports to NAFTA partners of the goods covered by this modification was less than 1 percent ad 

valorem in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

Although the effect on overall U.S. production would likely be negligible, the proposed modification could have a 

greater effect on individual firms. One firm supports the proposed modification because it would reduce the 

administrative burden when performing its NAFTA analysis.2

 Another firm states that the chemical reaction rule would 

allow benzoyl peroxide made from non-originating benzoyl chloride to qualify for the NAFTA preferential rate, which 

would have “serious, negative impacts” on its company and its operations. 3 The proposed modification to the 

product-specific rule for subheading 2916.32 (see table 3.41) would also allow benzoyl peroxide to be made using 

non-originating benzoyl chloride and qualify for the preferential rate. 

 2

 Eastman Chemical Company, written submissions to the USITC, June 4, 2013. See appendix D. 3

 Arkema, Inc., provided two written submissions. The first submission on July 22, 2013, asked that the proposed 

modification to the product-specific rule for subheading 2916.32 (involving benzoyl peroxide and benzoyl chloride) not be 

adopted or implemented. The second submission on September 20, 2013, stated that the proposed chemical reaction rule for 

chapter 29 would also allow non-originating benzoyl chloride to be made into originating benzoyl peroxide. They asked that “the

proposed changes regarding benzoyl peroxide and benzoyl chloride be phased in over a period of at least five years” to allow 

them sufficient time “to plan for the new competitive landscape.” Arkema, Inc., written submissions to the USITC, July 22, 2013, 

and September 20, 2013. See appendix D. 
3-41

CHAPTER 29

TABLE 3.14 Acyclic hydrocarbons and cyclic hydrocarbons

HTS no. Existing rule Proposed rule Probable effect advice

2901.10–

2902.90

1. A change to subheadings

2901.10 through 2901.29

from any other subheading, 

including another subheading 

within that group. 

2. A change to subheadings

2902.11 through 2902.44

from any other subheading, 

including another subheading 

within that group. 

3. (A) A change to 

subheading 2902.50 from any 

other subheading, except 

from subheading 2902.60; or 

(B) A change to subheading

2902.50 from subheading

2902.60, whether or not there 

is also a change from any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

4. A change to subheadings

2902.60 through 2902.90

from any other subheading, 

including another subheading 

within that group. 

A change to subheading 2901.10 

through 2902.90 from any other 

subheading, including another 

subheading within that group. 

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.14: Modification and effect

Modification: The proposed rule covers certain hydrocarbons (compounds containing only carbon and hydrogen, of 

particular chemical structures), many of which are described in separate international subheadings and either occur 

in nature or are components of petroleum oils or similar substances. The current NAFTA rule generally allows a 

compound of one subheading to be turned into a compound of another subheading, or to be made from inputs from 

other subheadings. Styrene (subheading 2902.50) made from non-originating ethylbenzene (subheading 2902.60) 

must meet a regional value content requirement. If the final product does not meet the regional value content 

requirement, the ethylbenzene must be made in North America.

The proposed modification is liberalizing because it removes the product exclusion and the regional value content 

requirement for styrene made from non-originating ethylbenzene. The proposed modification does not substantively 

change the rule of origin for acyclic hydrocarbons (heading 2901) and cyclic hydrocarbons other than styrene 

(subheadings 2902.11 through 2902.44 and 2902.60 through 2902.90).
3-42 

TABLE 3.14: Modification and effect—Continued 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these acyclic and cyclic hydrocarbons (headings 2901 and 2902) would not be affected by 

the proposed rule change.1

 1

 Styrene (subheading 2902.50) is the only product affected by the proposed modification, and it is free of duty on an 

NTR/MFN basis in all three NAFTA countries. 
3-43

CHAPTER 29

TABLE 3.15 Certain saturated chlorinated derivatives of acyclic hydrocarbons

HTS no. Existing rule Proposed rule Probable effect advice

2903.11–

2903.15

5. (A) A change to 

subheadings 2903.11 through 

2903.15 from any other 

subheading, including another 

subheading within that group, 

except from headings 2901 

through 2902; or

(B) A change to subheadings 

2903.11 through 2903.15 

from headings 2901 through 

2902, whether or not there is 

also a change from any other 

subheading, including another 

subheading within

subheadings 2903.11 through 

2903.15, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 2903.11 

through 2903.15 from any other 

subheading, including another 

subheading within that group. 

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.15: Modification and effect

Modification: The proposed rule covers chloromethane (methyl chloride); dichloromethane (methylene chloride);

trichloromethane (chloroform); tetrachloromethane (carbon tetrachloride); chloroethane (ethyl chloride); and 1,2-

dichloroethane (ethylene dichloride).

The current NAFTA rules allows a good of subheadings 2903.11 through 2903.15 made from non-originating acyclic 

and cyclic hydrocarbons (headings 2901 and 2902) to receive the preferential rate of duty provided that it meets the 

regional value content requirement, absent which the inputs of headings 2901 and 2902 must be made in North 

America. Non-originating inputs classified in other subheadings may also be used.

The proposed modification is liberalizing because it removes the product exclusion and the regional value content 

requirement for saturated chlorinated derivatives of hydrocarbons of subheadings 2903.11 through 2903.15 that are 

made using non-originating hydrocarbons of headings 2901 and 2902.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. All U.S. imports of these goods from Canada and Mexico entered free of duty under NAFTA in 2012. 

The NTR duty rates on goods in subheadings 2903.11 through 2903.15 range from 2.3 to 5.5 percent ad valorem. 

U.S. imports from Canada or Mexico represented less than 1 percent of total U.S. imports of these goods in 2012. 

The MFN rate of duty imposed on these goods by Canada and Mexico is free; therefore, there would be no effect on 

U.S. exports under NAFTA or on total U.S. exports from the proposed modification. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-44

CHAPTER 29

TABLE 3.16 Certain other saturated chlorinated derivatives of acyclic hydrocarbons

HTS no. Existing rule Proposed rule Probable effect advice

2903.19 5A. (A) A change to 1,2-

dichloropropane (propylene 

dichloride) or dichlorobutanes of 

subheading 2903.19 from other 

saturated chlorinated derivatives 

of acyclic hydrocarbons of

subheading 2903.19 or any 

other subheading, except from 

heading 2901 through 2902;

(B) A change to 1,2-

dichloropropane (propylene 

dichloride) or dichlorobutanes of 

subheading 2903.19 from 

heading 2901 through 2902, 

whether or not there is also a 

change from other saturated 

chlorinated derivatives of acyclic 

hydrocarbons of subheading 

2903.19 or any other 

subheading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used;

(C) A change to other saturated 

chlorinated derivatives of acyclic 

hydrocarbons of subheading 

2903.19 from 1,2-

dichloropropane (propylene 

dichloride) or dichlorobutanes of

subheading 2903.19 or from any 

other subheading, except from 

headings 2901 through 2902; or

(D) A change to other saturated 

chlorinated derivatives of acyclic 

hydrocarbons of subheading 

2903.19 from headings 2901 

through 2902, whether or not 

there is also a change from 1,2-

dichloropropane (propylene 

dichloride) or dichlorobutanes of 

subheading 2903.19 or from any 

other subheading, provided 

there is a regional value content 

of not less than:

A change to 1,2-

dichloropropane (propylene 

dichloride) or dichlorobutanes of 

subheading 2903.19 from other 

saturated chlorinated derivatives 

of acyclic hydrocarbons within 

that subheading or any other 

subheading;

A change to other saturated 

chlorinated derivatives of acyclic 

hydrocarbons of subheading 

2903.19 from 1,2-

dichloropropane (propylene 

dichloride) or dichlorobutanes 

within that subheading or any 

other subheading; or

A change to any other good of 

subheading 2903.19 from any 

other subheading. 

U.S. trade under NAFTA:

 Imports: Significant

increase

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible
3-45

CHAPTER 29

TABLE 3.16—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

TABLE 3.16: Modification and effect

Modification: The proposed rule covers products such as 1,2-dichloropropane (propylene dichloride);

dichlorobutanes; hexachloroethane; tetrachloroethane; sec-butyl chloride; and methylchloroform (1,1,1-

trichloroethane). The first of these products was reclassified into subheading 2903.19 in 2002, when the WCO 

deleted subheading 2903.16 from the HS. The NAFTA rules in effect before 2002 were updated in order to maintain 

previously recognized tariff shifts as conferring origin. 

The current NAFTA rule allows 1,2-dichloropropane (propylene dichloride) or dichlorobutanes (subheading 2903.19)

made from non-originating acyclic and cyclic hydrocarbons (headings 2901 and 2902) to receive the preferential rate 

of duty provided that the final product meets the regional value content requirement, as shown in part (B) of the 

current rule. When the regional value content requirement is not met, the inputs of headings 2901 and 2902 must be 

made in North America. 

The current NAFTA rule also allows other saturated chlorinated derivatives of acyclic hydrocarbons (subheading 

2903.19) made from non-originating acyclic and cyclic hydrocarbons (headings 2901 and 2902) to receive the 

preferential rate of duty provided that the final product meets the regional value content requirement, as shown in part 

(D) of the current rule. When the regional value content requirement is not met, the inputs of headings 2901 and 2902

must be made in North America. 

The proposed modification is liberalizing because it removes the product exclusion and the regional value content 

requirement for goods of subheading 2903.19 that are made using non-originating acyclic and cyclic hydrocarbons 

(headings 2901 and 2902).

The third part of the proposed rule would be unnecessary because the first two parts of the proposed rule cover all 

products of subheading 2903.19.

Effect: The proposed modification would likely result in a significant increase in imports from NAFTA partners, albeit 

from a small base. The value of U.S. imports from NAFTA partners was less than $150,000 in 2012. The NTR duty 

rates on goods in subheading 2903.19 range from free to 5.5 percent ad valorem. The effective tariff on U.S. imports 

from NAFTA partners was 3.6 percent ad valorem in 2012. The proposed modification would likely have a negligible 

effect on total U.S. imports. U.S. imports from Canada and Mexico represented less than 1 percent of total U.S. 

imports of these goods in 2012. 

The MFN rate of duty imposed on these goods by Canada and Mexico is free; therefore, there would be no effect on 

U.S. exports under NAFTA or on total U.S. exports from the proposed modification. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be

negligible. In addition, the level of U.S. imports from NAFTA partners is small compared with U.S. production.
3-46

CHAPTER 29

TABLE 3.17 Unsaturated chlorinated derivatives of acyclic hydrocarbons and fluorinated, brominated or iodinated 

derivatives of acyclic hydrocarbons

HTS no. Existing rule Proposed rule Probable effect advice

2903.21–

2903.69

5B. (A) A change to 

subheadings 2903.21 through 

2903.29 from any other 

subheading, including another 

subheading within that group, 

except from headings 2901 

through 2902; or

(B) A change to subheadings 

2903.21 through 2903.29 from 

headings 2901 through 2902, 

whether or not there is also a 

change from any other 

subheading, including another 

subheading within 

subheadings 2903.21 through 

2903.29, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

5C. (A) A change to 

subheadings 2903.31 through 

2903.39 from any subheading

outside that group, except from 

headings 2901 through 2902;

or

(B) A change to subheadings 

2903.31 through 2903.39 from 

headings 2901 through 2902, 

whether or not there is also a 

change from any subheading 

outside that group, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2903.21 through 2903.69 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible
3-47

CHAPTER 29

TABLE 3.17—Continued

HTS no. Existing rule Proposed rule Probable effect advice

6. (A) A change to 

subheadings 2903.41 through 

2903.51 from any other 

subheading, including another 

subheading within that group, 

except from headings 2901 

through 2902; or

(B) A change to subheadings 

2903.41 through 2903.51 from 

headings 2901 through 2902, 

whether or not there is also a 

change from any other 

subheading, including another 

subheading within 

subheadings 2903.41 through 

2903.51, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

6A. (A) A change to 

subheadings 2903.52 through 

2903.59 from any subheading 

outside that group, except from 

headings 2901 through 2902; 

or

(B) A change to subheadings 

2903.52 through 2903.59 from 

headings 2901 through 2902, 

whether or not there is also a 

change from any subheading 

outside that group, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

6B. (A) A change to 

subheadings 2903.61 through 

2903.69 from any other 

subheading, including another 

subheading within that group, 

except from headings 2901 

through 2902; or
3-48

CHAPTER 29

TABLE 3.17—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to subheadings 

2903.61 through 2903.69 from 

headings 2901 through 2902, 

whether or not there is also a 

change from any other 

subheading, including another 

subheading within 

subheadings 2903.61 through 

2903.69, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

TABLE 3.17: Modification and effect

Modification: The compounds of these subheadings have been affected by two rounds of changes to the HS by the 

WCO. The first changes, the 2007 deletion of subheading 2903.52 and transfer of its products to subheading 

2903.59, had no substantive effect on the NAFTA rules of origin. The second changes, effective in 2012, resulted in 

the deletion of subheadings 2903.41 through 2903.69 and the creation of new subheadings 2903.71 through 

2903.99. The new subheadings’ aggregate product coverage appears to be identical to that of the prior subheadings, 

and no goods appear to have been reclassified into or out of the affected provisions by the WCO. None of the NAFTA 

rules in general note 12 have been updated to reflect the 2012 HS modifications. For purposes of this table, the 

proposed rule is being reviewed as if it had been updated to reflect the 2012 HS modifications so that the phrase 

“subheading 2903.21 through 2903.69” is being read as “subheading 2903.21 through 2903.99.” In that way, the 

implications of the rule modification for the covered products would be fully considered, without regard to the change 

in numbering for the subheadings concerned. 

The proposed rule covers chemicals such as vinyl chloride (an input for polyvinyl chloride (PVC) plastics), 

trichloroethylene, tetrachloroethylene (dry cleaning agent), ethylene dibromide, vinyl bromide, methyl bromide, and 

fluorinated hydrocarbons including 1,1,1,2-tetrafluoroethane (HFC-134a, a refrigerant).

The current rule allows unsaturated chlorinated derivatives of acyclic hydrocarbons (subheadings 2903.21 through 

2903.29) made from non-originating acyclic and cyclic hydrocarbons (headings 2901 and 2902) to receive the 

preferential rate of duty provided that the final product meets the regional value content requirement, as shown in part 

5B.(B) of the current rule. When the regional value content requirement is not met, the inputs of headings 2901 and 

2902 must be made in North America. 

The current rule also allows fluorinated, brominated or iodinated derivatives of acyclic hydrocarbons (subheadings 

2903.31 through 2903.39) made from non-originating acyclic and cyclic hydrocarbons (headings 2901 and 2902) to 

receive the preferential rate of duty provided that the final product meets the regional value content requirement, as 

shown in part 5C.(B) of the current rule. When the regional value content requirement is not met, the inputs of 

headings 2901 and 2902 must be made in North America. 

The current rule allows halogenated derivatives of either acyclic hydrocarbons or 1,2,3,4,5,6-hexachlorocyclohexane 

(subheadings 2903.41 (2903.71) through 2903.51 (2903.81)) made from non-originating acyclic and cyclic 

hydrocarbons (headings 2901 and 2902) to receive the preferential rate of duty provided that the final product meets 

the regional value content requirement, as shown in part 6.(B) of the current rule. When the regional value content 

requirement is not met, the inputs of headings 2901 and 2902 must be made in North America.
3-49 

TABLE 3.17: Modification and effect—Continued 

The current rule allows halogenated derivatives of cyclanic, cyclenic or cycloterpenic hydrocarbons (subheadings 

2903.52 (2903.82) through 2903.59 (2903.89)) made from non-originating acyclic and cyclic hydrocarbons (headings 

2901 and 2902) to receive the preferential rate of duty provided that the final product meets the regional value 

content requirement, as shown in part 6A.(B) of the current rule. When the regional value content requirement is not 

met, the inputs of headings 2901 and 2902 must be made in North America. 

The current rule allows halogenated derivatives of aromatic hydrocarbons (subheadings 2903.61 (2903.91) through 

2903.69 (2903.99)) made from non-originating acyclic and cyclic hydrocarbons (headings 2901 and 2902) to receive 

the preferential rate of duty provided that the final product meets the regional value content requirement, as shown in 

part 6B.(B) of the current rule. When the regional value content requirement is not met, the inputs of headings 2901 

and 2902 must be made in North America. 

The proposed modification is liberalizing because it would remove the product exclusion and the regional value 

content requirement for goods of subheadings 2903.21 through 2903.69 (2903.99) that are made using nonoriginating acyclic and cyclic hydrocarbons (headings 2901 and 2902). 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, 80 percent of U.S. imports from Canada and Mexico qualified for the NAFTA preferential rates 

of duty. The effective tariff on U.S. imports from NAFTA partners was 0.8 percent ad valorem in 2012. The NTR rates 

of duty on goods in subheadings 2903.21 through 2903.99 range from free to 5.5 percent ad valorem. The proposed 

modification would likely have a negligible effect on total U.S. imports because imports from NAFTA. Canada and 

Mexico accounted for 8 percent of total U.S. imports in 2012. 

The MFN rate of duty imposed on these goods by Canada and Mexico is free; therefore, there would be no effect on 

U.S. exports under NAFTA or total U.S. exports from the proposed modification. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 
3-50

CHAPTER 29

TABLE 3.18 Sulfonated, nitrated or nitrosated derivatives of hydrocarbons

HTS no. Existing rule Proposed rule Probable effect advice

2904.10–

2904.90

7. (A) A change to 

subheadings 2904.10 through 

2904.90 from any other 

subheading, including another 

subheading within that group, 

except from headings 2901 

through 2903; or

(B) A change to subheadings 

2904.10 through 2904.90

from headings 2901 through 

2903, whether or not there is 

also a change from any other 

subheading, including another 

subheading within 

subheadings 2904.10 through 

2904.90, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 2904.10 

through 2904.90 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.18: Modification and effect

Modification: The proposed rule covers all products of heading 2904, which are chemical intermediates such as 

trinitrotoluene, o-nitrochlorobenzene, p-nitrochlorobenzene, and benzenesulfonyl chloride. These goods are used as 

inputs for a variety of products, including explosives, rubber products, liquid crystals, or dyes.

The current rule allows a good of subheadings 2904.10 through 2904.90 made from non-originating acyclic 

hydrocarbons, cyclic hydrocarbons, or halogenated derivatives of hydrocarbons (headings 2901, 2902, or 2903) to 

receive the preferential rate of duty provided that the final product meets the regional value content requirement, as 

shown in part (B) of the current rule. When the regional value content requirement is not met, the inputs from

headings 2901 through 2903 must be made in North America. The existing rules also allow the use of non-originating 

inputs or materials from other subheadings, including those within heading 2904, but not headings 2901 through 2903

(unless the regional value content requirement is met, as noted above).

The proposed modification is liberalizing because it removes the product exclusion and the regional value content 

requirement for goods of subheading 2904.10 through 2904.90 that are made using non-originating acyclic 

hydrocarbons, cyclic hydrocarbons, or halogenated derivatives of hydrocarbons (headings 2901, 2902, or 2903).

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Most U.S. imports of the subject products from Canada and Mexico currently enter free of duty under 

NAFTA. The effective tariff on U.S. imports of all products covered by the rule was less than 0.5 percent ad valorem 

in 2012. The NTR duty rates for most of the goods in heading 2904 are 5.5 percent ad valorem, except for tariff item

2904.20.20, which is NTR free, and 2904.10.50, which has an NTR rate of duty of 4.2 percent ad valorem. U.S. 

imports from Canada or Mexico represented only 4 percent of total U.S. imports of these goods in 2012.
3-51 

TABLE 3.18: Modification and effect—Continued 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The rate of duty imposed on these goods by Canada is free on an MFN basis. Most of the goods are also 

MFN free in Mexico; the one exception has a rate of 6 percent ad valorem. Less than 1 percent of U.S. exports to 

NAFTA partners were subject to a non-zero rate of duty. U.S. exports to NAFTA partners represented 21 percent of 

U.S. exports of these goods in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 
3-52

CHAPTER 29

TABLE 3.19 Certain saturated monohydric alcohols

HTS no. Existing rule Proposed rule Probable effect advice

2905.11–

2905.17

8. A change to subheadings

2905.11 through 2905.17 

from any other subheading, 

including another subheading 

within that group.

A change to subheading 2905.11 

through 2905.17 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.19: Modification and effect

Modification: The proposed rule covers methanol; isomers of propyl, butyl, and octyl alcohols; lauryl alcohol; cetyl 

alcohol; and stearyl alcohol.

The proposed modification would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-53

CHAPTER 29

TABLE 3.20 Pentanol and other saturated monohydric alcohols

HTS no. Existing rule Proposed rule Probable effect advice

2905.19 8A. (A) A change to pentanol

(amyl alcohol) or isomers 

thereof of subheading 2905.19 

from any other good of 

subheading 2905.19 or any 

other subheading; or

(B) A change to any other 

good of subheading 2905.19 

from pentanol (amyl alcohol) or 

isomers thereof of subheading 

2905.19 or any other 

subheading.

A change to pentanol (amyl 

alcohol) or isomers thereof of 

subheading 2905.19 from any 

other good within that 

subheading or any other 

subheading; or

A change to any other good of 

subheading 2905.19 from 

pentanol (amyl alcohol) or 

isomers thereof within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.20: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-54

CHAPTER 29

TABLE 3.21 Unsaturated monohydric alcohols; diols; and other polyhydric alcohols

HTS no. Existing rule Proposed rule Probable effect advice

2905.22–

2905.59

8B. A change to subheadings 

2905.22 through 2905.49 from 

any other subheading, 

including another subheading 

within that group.

[TCRs 9 and 10 deleted.]

11. A change to subheadings

2905.51 through 2905.59 from 

any other subheading outside

that group.

A change to subheading 

2905.22 through 2905.59 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.21: Modification and effect

Modification: The proposed rule covers products with a broad range of applications, such as sweeteners (mannitol, 

sorbitol, and xylitol); antifreeze ingredients (ethylene glycol, propylene glycol, and glycerol); sedatives (ethchlorvynol); 

and flame retardants (dibromoneopentylglycol).

The proposed rule would make no substantive change to the current NAFTA rule of origin for subheadings 2905.22 

through 2905.49.

Under the current NAFTA rule, halogenated, sulfonated, nitrated, or nitrosated derivatives of acyclic alcohols 

(subheadings 2905.51 through 2905.59), such as ethchlorvynol and dibromoneopentylglycol, that are made from nonoriginating goods classified within those subheadings cannot receive the preferential rate of duty.

The proposed modification is liberalizing because it removes the product exclusion for halogenated, sulfonated, 

nitrated or nitrosated derivatives of acyclic alcohols (subheadings 2905.51 through 2905.59) made from nonoriginating goods within that group and allows any subheading-level tariff change to confer origin.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. As noted above, the proposed modification would only substantively change the rules for subheadings 

2905.51 through 2905.59. There were no dutiable U.S. imports from NAFTA partners for those subheadings in 2012. 

The dominant U.S. import covered by the proposed rule is ethylene glycol (subheading 2905.31), which represented 

99 percent of U.S. imports from NAFTA partners and 72 percent of total U.S. imports in 2012. The proposed 

modification does not substantively change the rule of origin for ethylene glycol.

The proposed modification would have no effect on U.S. exports to NAFTA and on total U.S. exports because the 

only subheadings substantively changed by the proposed modification (2905.51 through 2905.59) are free of duty on 

an MFN basis in Canada and Mexico.

The effect on U.S. production is likely to be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-55

CHAPTER 29

TABLE 3.22 Menthol; cyclohexanol, methylcyclohexanols, and dimethylcyclohexanols; and sterols and inositols

HTS no. Existing rule Proposed rule Probable effect advice

2906.11–

2906.13

12. A change to subheadings

2906.11 through 2906.13 from 

any other subheading, 

including another subheading 

within that group.

A change to subheading 

2906.11 through 2906.13 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.22: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-56

CHAPTER 29

TABLE 3.23 Terpineols and other cyclanic, cyclenic, or cycloterpenic alcohols

HTS no. Existing rule Proposed rule Probable effect advice

2906.19 12A. (A) A change to terpineols 

of subheading 2906.19 from 

any other good of subheading 

2906.19 or any other 

subheading; or

(B) A change to any other good 

of subheading 2906.19 from 

terpineols of subheading 

2906.19 or any other 

subheading.

A change to terpineols of 

subheading 2906.19 from any 

other good within that 

subheading or any other 

subheading; or

A change to any other good of 

subheading 2906.19 from 

terpineols within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.23: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-57

CHAPTER 29

TABLE 3.24 Benzyl alcohol and other aromatic alcohols and their halogenated, sulfonated, nitrated or nitrosated 

derivatives

HTS no. Existing rule Proposed rule Probable effect advice

2906.21–

2906.29

12B. A change to subheadings 

2906.21 through 2906.29 from 

any other subheading, including 

another subheading within that

group.

A change to subheading 

2906.21 through 2906.29 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.24: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-58

CHAPTER 29

TABLE 3.25 Certain monophenols, including phenol (hydroxybenzene) and its salts; cresols and their salts; 

octylphenol and nonylphenol and their isomers, and salts thereof; and naphthols and their salts

HTS no. Existing rule Proposed rule Probable effect advice

2907.11–

2907.15

12C. A change to subheadings 

2907.11 through 2907.15 from 

any other subheading, 

including another subheading 

within that group.

A change to subheading 

2907.11 through 2907.15 from 

any other subheading,

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.25: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-59

CHAPTER 29

TABLE 3.26 Certain monophenols including xylenols and their salts

HTS no. Existing rule Proposed rule Probable effect advice

2907.19 12D. (A) A change to xylenols or 

their salts of subheading 

2907.19 from any other good of 

subheading 2907.19 or any 

other subheading; or

(B) A change to any other good 

of subheading 2907.19 from 

xylenols or their salts of 

subheading 2907.19 or any 

other subheading.

A change to xylenols or their 

salts of subheading 2907.19 

from any other good within that 

subheading or any other 

subheading; or

A change to any other good of 

subheading 2907.19 from 

xylenols or their salts within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.26: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-60

CHAPTER 29

TABLE 3.27 Resorcinol and its salts; hydroquinone (quinol) and its salts; and 4,4'-isopropylidenediphenol (bisphenol 

a, diphenylolpropane) and its salts

HTS no. Existing rule Proposed rule Probable effect advice

2907.21–

2907.23

12E. A change to subheadings 

2907.21 through 2907.23 from 

any other subheading, 

including another subheading 

within that group.

A change to subheading 

2907.21 through 2907.23 from 

any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.27: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-61

CHAPTER 29

TABLE 3.28 Polyphenols and phenol-alcohols except for resorcinol, hydroquinone, and 4,4'-isopropylidenediphenol

HTS no. Existing rule Proposed rule Probable effect advice

2907.29 12F. (A) A change to phenolalcohols of subheading 2907.29 

from polyphenols of subheading 

2907.29 or from any other

subheading; or

12F. (B) A change to 

polyphenols of subheading 

2907.29 from phenol-alcohols of 

subheading 2907.29 or from any 

other subheading.

A change to phenol-alcohols of 

subheading 2907.29 from 

polyphenols within that 

subheading or any other 

subheading; 

A change to polyphenols of 

subheading 2907.29 from 

phenol-alcohols within that 

subheading or any other 

subheading; or 

A change to any other good of 

subheading 2907.29 from 

phenol-alcohols or polyphenols 

within that subheading or any 

other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.28: Modification and effect

Modification: The proposed rule covers two groups of chemicals, polyphenols and phenol-alcohols, except those 

covered by subheadings 2907.21 through 2907.23. The current NAFTA rule allows polyphenols of this subheading 

made from non-originating phenol-alcohols, also of this subheading, or from inputs classified in any other 

subheading, to receive the preferential rate of duty. Polyphenols can also be made from phenol-alcohols of 

subheading 2907.29 or from inputs classified in other subheadings. The proposed modification would keep the 

current rules unchanged for transformations between these two groups of chemicals but also add a third rule that 

would confer origin on any other good of this subheading made from non-originating phenol-alcohols or polyphenols 

or from inputs classified in other subheadings as well. However, because all goods provided for in subheading 

2907.29 are either polyphenols or phenol-alcohols, the third rule would appear not to make any substantive change to 

the existing rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-62 

 CHAPTER 29 

TABLE 3.29 Derivatives of phenols or phenol-alcohols and certain oxygen-containing compounds

HTS no. Existing rule Proposed rule Probable effect advice 

2908.11–

2911.00 

13. (A) A change to 

subheadings 2908.11 through 

2908.19 from any other 

heading, except from heading 

2907; or 

(B) A change to subheadings 

2908.11 through 2908.19 from 

heading 2907 or any 

subheading outside that group 

within heading 2908, whether 

or not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

13A. (A) A change to 

subheading 2908.91 from any 

other heading, except from 

heading 2907; or 

(B) A change to subheading 

2908.91 from derivatives of 

phenols or phenol-alcohols 

containing only sulfo groups, 

their salts or esters of 

subheading 2908.99, 

subheadings 2908.11 through 

2908.19 or heading 2907, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

13B. (A) A change to 

subheading 2908.99 from any 

other heading, except from 

heading 2907; 

A change to subheading 

2908.11 through 2911.00 from 

any other subheading, 

including another subheading 

within that group. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 
3-63 

 CHAPTER 29 

TABLE 3.29—Continued

HTS no. Existing rule Proposed rule Probable effect advice 

(B) A change to derivatives of 

phenols or phenol-alcohols 

containing only sulfo groups, 

their salts or esters of 

subheading 2908.99, 

subheadings 2908.11 through 

2908.91 or heading 2907, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value methods is 

used, or 

(2) 50 percent where the net 

cost methods is used is used; 

or 

(C) A change to any other 

good of subheading 2908.99 

from derivatives of phenols or 

phenol-alcohols containing 

only sulfo groups, their salts or 

esters of subheading 2908.99, 

subheadings 2908.11 through 

2908.91 or heading 2907, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

14. (A) A change to 

subheadings 2909.11 through 

2909.20 from any other 

heading; or 

(B) A change to subheadings 

2909.11 through 2909.20 from 

any other subheading within 

heading 2909, including 

another subheading within that 

group, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than: 

 
3-64 

 CHAPTER 29 

TABLE 3.29—Continued

HTS no. Existing rule Proposed rule Probable effect advice 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

15. A change to subheading 

2909.30 from any other 

subheading. 

16. (A) A change to 

subheadings 2909.41 through 

2909.43 from any other 

heading; or 

(B) A change to subheadings 

2909.41 through 2909.43 from 

any other subheading within 

heading 2909, including 

another subheading within that 

group, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

16A. (A) A change to 

monomethyl ethers of 

ethylene glycol or of 

diethylene glycol of 

subheading 2909.44 from any 

other heading; 

(B) A change to monomethyl 

ethers of ethylene glycol or of 

diethylene glycol of 

subheading 2909.44 from any 

other good of subheading 

2909.44 or any other 

subheading within heading 

2909, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

 
3-65 

 CHAPTER 29 

TABLE 3.29—Continued

HTS no. Existing rule Proposed rule Probable effect advice 

(2) 50 percent where the net 

cost method is used; 

(C) A change to any other 

good of subheading 2909.44 

from any other heading; or 

(D) A change to any other 

good of subheading 2909.44 

from monomethyl ethers of 

ethylene glycol or of 

diethylene glycol of 

subheading 2909.44 or any 

other subheading within 

heading 2909, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

16B. (A) A change to 

subheadings 2909.49 through 

2909.60 from any other 

heading; or 

(B) A change to subheadings 

2909.49 through 2909.60 from 

any other subheading within 

heading 2909, including 

another subheading within that 

group, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

17. A change to subheadings 

2910.10 through 2910.30 from 

any other subheading, 

including another subheading 

within that group. 

 
3-66 

 CHAPTER 29 

TABLE 3.29—Continued

HTS no. Existing rule Proposed rule Probable effect advice 

17A. A change to subheadings 

2910.40 through 2910.90 from 

any subheading outside that 

group. 

17B. A change to heading 

2911 from any other heading. 

 

TABLE 3.29: Modification and effect 

Modification: The proposed rule covers derivatives of phenols or phenol-alcohols, ethers, epoxides, and acetals.

Halogenated, sulfonated, nitrated, or nitrosated derivatives of phenols or phenol-alcohols are typically made from 

phenols and phenol-alcohols classified in heading 2907. The current NAFTA rule allows the halogenated, sulfonated, 

nitrated, or nitrosated derivatives (heading 2908) made from non-originating phenols and phenol-alcohols (heading 

2907) to receive the preferential rate of duty provided that they meet the regional value content requirement. If the 

final product does not meet the regional value content requirement, the phenols and phenol-alcohols must be made 

in North America. Non-originating inputs classified in headings other than 2907 can also be used to make goods of 

heading 2908. 

Similar regional value content requirements apply to many subheadings of heading 2909, limiting the use of inputs 

classified within heading 2909, which covers ethers, ether-alcohols, ether-phenols, ether-alcohol-phenols, alcohol 

peroxides, ether peroxides, ketone peroxides, and their derivatives. Other goods of headings 2909 through 2911 are 

covered by heading- or subheading-level tariff shifts. 

The proposed rule is liberalizing because it removes the regional value content requirements, and it would allow any 

subheading change to confer origin. These changes would allow a firm making a good of a particular subheading to 

use non-originating inputs classified in any other subheadings and receive the preferential rate of duty. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Although NTR rates of duty specific to the HTS subheadings covered by this rule range from free to 

5.5 percent ad valorem, in 2012, the effective tariff was less than 0.5 percent ad valorem; almost 100 percent of U.S. 

imports from NAFTA partners entered the United States free of duty. The value of U.S. imports from Canada and 

Mexico accounted for about 20 percent of total U.S. imports of these products. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The Canadian MFN rate of duty on these goods is free. Although Mexican MFN rates of duty range from 

0–7 percent, about 98 percent of U.S. exports to Mexico of these goods entered under 8-digit tariff items that are 

MFN free of duty.1

 U.S. exports of these products to Mexico accounted for about 95 percent of total U.S. exports to 

NAFTA partners. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

 1 Commission estimate based on Mexican import data obtained from Global Trade Atlas. 
3-67

CHAPTER 29

TABLE 3.30 Methanal (formaldehyde) and ethanal (acetaldehyde)

TABLE 3.30: Modification and effect

Modification: The proposed modification does not substantively change the rule of origin for methanal (HTS 2912.11).

Ethanal, also known as acetaldehyde, is often made using ethylene as an input. The current NAFTA rule allows ethanal

(HTS 2912.12) made from non-originating ethylene (HTS 2901.21) to receive the preferential rate of duty provided that 

it meets the regional value content requirement. If the final product does not meet the regional value content 

requirement, the ethylene must be made in North America. The proposed rule is liberalizing because it removes the

regional value content requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total U.S. 

imports of these products. The proposed modification would only substantively change the rule of origin for subheading 

2912.12. There were no U.S. imports from NAFTA partners for this subheading in 2012. The NTR rate of duty for 

subheading 2912.12 is 5.5 percent ad valorem. 

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

proposed modification would only substantively change the rule of origin for subheading 2912.12, which has an MFN 

rate of duty of free in both Canada and Mexico.

The effect on U.S. production will likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

HTS no. Existing rule Proposed rule Probable effect advice

2912.11–

2912.12 

18. A change to subheading 

2912.11 from any other 

subheading.

19. (A) A change to

subheading 2912.12 from any 

other subheading, except 

from subheading 2901.21; or

(B) A change to subheading 

2912.12 from subheading 

2901.21, whether or not there 

is also a change from any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2912.11 through 2912.12 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible
3-68

CHAPTER 29

TABLE 3.31 Acyclic aldehydes without other oxygen function, except for methanal (formaldehyde) or ethanal 

(acetaldehyde)

TABLE 3.31: Modification and effect

Modification: The proposed rule would make no substantive changes to the current NAFTA rule of origin. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.

HTS no. Existing rule Proposed rule Probable effect advice

2912.19 20. (A) A change to butanal 

(butyraldehyde, normal isomer) 

of subheading 2912.19 from 

any other good of subheading

2912.19 or any other 

subheading; or

(B) A change to any other good 

of subheading 2912.19 from 

butanal (butyraldehyde, normal 

isomer) of subheading 2912.19 

or any other subheading.

A change to butanal 

(butyraldehyde, normal 

isomer) of subheading 

2912.19 from any other good 

within that subheading or any 

other subheading; or 

A change to any other good of 

subheading 2912.19 from 

butanal (butyraldehyde, 

normal isomer) within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None 

U.S. production: None
3-69

CHAPTER 29

TABLE 3.32 Cyclic aldehydes without other oxygen function; aldehyde alcohols, aldehyde-ethers, aldehyde-phenols 

and aldehydes with other oxygen function; cyclic polymers of aldehydes; and paraformaldehyde

TABLE 3.32: Modification and effect

Modification: The proposed modification does not substantively change the rule of origin for goods of subheadings 

2912.21 through 2912.50.

Paraformaldehyde is a solid product made by polymerizing methanal (formaldehyde). The current NAFTA rule allows

paraformaldehyde (HTS 2912.60) made from non-originating methanal (HTS 2912.11) to receive the preferential rate of 

duty provided that the paraformaldehyde meets the regional value content requirement. If the final product does not 

meet the regional value content requirement, the methanal must be made in North America. The proposed rule is 

liberalizing because it removes the regional value content requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total U.S. 

imports. The proposed modification would only substantively change the rule of origin for subheading 2912.60. There 

were no U.S. imports from NAFTA partners for this subheading in 2012. The NTR rate of duty for subheading 2912.60

is 5.1 percent ad valorem. 

The proposed modification would have no effect on U.S. exports to NAFTA partners and on total U.S. exports of these 

products because the covered products are free of duty on an MFN basis in Canada and Mexico.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

HTS no. Existing rule Proposed rule Probable effect advice

2912.21–

2912.60

20A. A change to subheadings 

2912.21 through 2912.50 from 

any other subheading, 

including another subheading 

within that group.

21. (A) A change to 

subheading 2912.60 from any 

other subheading, except from 

subheading 2912.11; or

(B) A change to subheading 

2912.60 from subheading 

2912.11, whether or not there 

is also a change from any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2912.21 through 2912.60 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None 

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible
3-70

CHAPTER 29

TABLE 3.33 Derivatives of products of heading 2912, ketone-function compounds, and quinone-function compounds

TABLE 3.33: Modification and effect

Modification: The current NAFTA rule allows halogenated, sulfonated, nitrated, or nitrosated derivatives of heading 

2913 made from non-originating aldehyde-function compounds of heading 2912 to receive the preferential rate of duty

provided the final product meets the regional value content requirement. If the final product does not meet the regional 

value content requirement, the inputs of heading 2912 must be made in North America. The proposed rule is 

liberalizing because it removes the regional value content requirement. Changing the heading-level tariff shift required 

by existing rule 22(A) to a subheading-level tariff shift would have no substantive effect, because heading 2913 has no 

subordinate subheadings.

The proposed modification does not substantively change the rule of origin for goods of subheadings 2914.11 

(acetone) through 2914.70 (halogenated, sulfonated, nitrated or nitrosated derivatives of ketones and quinones).

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total U.S. 

imports. The proposed modification would substantively change the rules only for subheading 2913.00. In 2012, the 

effective tariff on U.S. imports from NAFTA partners was less than 0.5 percent ad valorem based on estimated duties 

collected for U.S. imports from NAFTA partners under subheading 2913.00 and U.S. imports from NAFTA partners of 

all products covered by the proposed rule (subheadings 2913.00 through 2914.70). However, there could be a 

substantial increase in U.S. imports from NAFTA partners of goods classified in subheading 2913.00, albeit from a 

small base. U.S. imports from NAFTA partners under subheading 2913.00 totaled $8,550 in 2012. NTR rates of duty 

for tariff items under subheading 2913.00 range from free to 5.5 percent ad valorem, and in 2012, all U.S. imports from 

NAFTA partners under this subheading were dutiable at the 5.5 percent ad valorem rate.

The proposed modification would likely have a negligible effect on total U.S. imports of goods classified in subheading 

2913.00 and on all goods covered by the rule (subheadings 2913.00 through 2914.70). U.S. imports from NAFTA 

partners under subheading 2913.00 accounted for less than 1 percent of both total U.S. imports under subheading 

2913.00 and total U.S. imports of all goods covered by the rule.

HTS no. Existing rule Proposed rule Probable effect advice

2913.00–

2914.70

22. (A) A change to heading 

2913 from any other heading, 

except from heading 2912; or

(B) A change to heading 2913 

from heading 2912, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

23. A change to subheadings 

2914.11 through 2914.70 from 

any other subheading, 

including another subheading 

within that group.

A change to subheading 

2913.00 through 2914.70 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None 

U.S. production: Negligible 
TABLE 3.33: Modification and effect—Continued

The proposed modification would have no effect on U.S. exports to NAFTA and on total U.S. exports. The only 

subheading substantively changed by the proposed modification (2913.00) is free of duty on an MFN basis in both 

Canada and Mexico.1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

1 For proposed rule as a whole (subheadings 2913.00 through 2914.70), Canada’s MFN rates of duty are free and Mexico’s 

MFN rates of duty range from free to 7 percent ad valorem.

3-71

 
3-72

CHAPTER 29

TABLE 3.34 Formic acid, its salts and esters; acetic acid; and acetic anhydride

HTS no. Existing rule Proposed rule Probable effect advice

2915.11–

2915.24

24. A change to subheading 

2915.11 from any other 

subheading.

25. (A) A change to subheading 

2915.12 from any other 

subheading, except from 

subheading 2915.11; or

(B) A change to subheading 

2915.12 from subheading 

2915.11, whether or not there is 

also a change from any other

subheading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

26. A change to subheading 

2915.13 from any other 

subheading.

27. (A) A change to subheading 

2915.21 from any other 

subheading, except from 

subheading 2912.12; or

(B) A change to subheading 

2915.21 from subheading 

2912.12, whether or not there is 

also a change from any other

subheading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

28. (A) A change to subheading 

2915.24 from any other 

subheading, except from 

subheading 2915.21; or

(B) A change to subheading 

2915.24 from subheading 

2915.21, whether or not there is 

also a change from any other

subheading, provided there is a

A change to subheading 

2915.11 through 2915.24 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-73

CHAPTER 29

TABLE 3.34—Continued

TABLE 3.34: Modification and effect

Modification: The proposed rule covers formic acid, its salts and esters; acetic acid; and acetic anhydride. 

Salts of formic acid are typically made using formic acid as an input. The current NAFTA rule allows salts of formic acid 

(HTS 2915.12) made from non-originating formic acid (HTS 2915.11) to receive the preferential rate of duty provided 

that they meet the regional value content rule. If the final product does not meet the regional value content requirement, 

the acid must be made in North America.

Acetic acid can be made using acetaldehyde, although newer processes that do not use acetaldehyde are more 

common in North America. The current NAFTA rule allows acetic acid (HTS 2915.21) made from non-originating 

acetaldehyde (HTS 2912.12) to receive the preferential rate of duty provided that the acid meets the regional value 

content rule. If the final product does not meet the regional value content requirement, the acetaldehyde must be made 

in North America.

Acetic anhydride is sometimes made using acetic acid as an input. The current NAFTA rules allow acetic anhydride 

(HTS 2915.24) made from non-originating acetic acid (HTS 2915.21) to receive the preferential rate of duty provided 

that the anhydride meets the regional value content rule. If the final product does not meet the regional value content 

requirement, the acid must be made in North America.

The proposed rule is liberalizing because it removes the product exclusions and the regional value content requirement

in all of the instances above.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA partners and on 

total U.S. imports. Tariffs for these products are low (5.5 percent ad valorem or less), and dutiable imports from NAFTA 

partners account for a small share of imports (15 percent of NAFTA imports and 5 percent of total U.S. imports in 2012). 

The effective tariff on U.S. imports from NAFTA partners was 0.5 percent ad valorem in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. exports.

All tariff items are free of duty on an MFN basis in Canada and Mexico, with the exception of one Mexican tariff item 

(acetic anhydride) with an MFN rate of duty of 10 percent ad valorem. However, in 2012, 99 percent of U.S. exports to 

Canada and Mexico entered under 8-digit tariff items that were free of duty on an MFN basis.1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on Canadian and Mexican import data obtained from Global Trade Atlas.

HTS no. Existing rule Proposed rule Probable effect advice

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.
CHAPTER 29

TABLE 3.35 Salts of acetic acid

HTS no. Existing rule Proposed rule Probable effect advice

2915.29 28A. (A) A change to sodium 

acetate of subheading 2915.29 

from any other good of 

subheading 2915.29 or any 

other subheading, except from 

subheading 2915.21;

(B) A change to sodium acetate 

of subheading 2915.29 from 

subheading 2915.21, whether or 

not there is also a change from 

any other good of subheading 

2915.29 or any other 

subheading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

(C) A change to cobalt acetates 

of subheading 2915.29 from any 

other good of subheading 

2915.29 or any other

subheading, except from 

subheading 2915.21;

(D) A change to cobalt acetates 

of subheading 2915.29 from 

subheading 2915.21, whether or 

not there is also a change from 

any other good of subheading 

2915.29 or any other 

subheading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

(E) A change to any other good 

of subheading 2915.29 from 

sodium acetate of subheading 

2915.29, cobalt acetates of 

subheading 2915.29 or any 

other subheading, except from 

subheading 2915.21; or

A change to sodium acetate of 

subheading 2915.29 from any

other good within that 

subheading or any other 

subheading;

A change to cobalt acetates of 

subheading 2915.29 from any 

other good within that 

subheading or any other 

subheading; or

A change to any other good of 

subheading 2915.29 from 

sodium acetate or cobalt 

acetates within that subheading 

or any other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

3-74
CHAPTER 29

TABLE 3.35—Continued

TABLE 3.35: Modification and effect

Modification: The current NAFTA rule requires salts of acetic acid (HTS 2915.29) made from non-originating acetic

acid or certain salts of acetic acid to meet a regional value content rule to receive the preferential tariff rates under 

NAFTA. If the final product does not meet the regional value content requirement, the acetic acid or other inputs used 

to make the imported salts must be made in North America. The proposed rule is liberalizing because it removes both 

the product exclusion and the regional value content requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on U.S. total 

imports. Tariffs for these products are low (4.2 percent ad valorem or less), and dutiable imports from NAFTA partners 

account for a small share of imports (2 percent of all imports of the subject products from NAFTA partners in 2012), 

resulting in an effective tariff of less than 0.5 percent ad valorem. 

The proposed modification would likely have no effect on U.S. exports under NAFTA or on total U.S. exports because 

U.S. exports to Canada and Mexico are free of duty on an MFN basis.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

HTS no. Existing rule Proposed rule Probable effect advice

(F) A change to any other 

good of subheading 2915.29 

from subheading 2915.21, 

whether or not there is also a

change from sodium acetate 

or cobalt acetates of 

subheading 2915.29 or any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

3-75
3-76

CHAPTER 29

TABLE 3.36 Ethyl acetate, vinyl acetate, n-butyl acetate, and dinoseb (ISO) acetate

HTS no. Existing rule Proposed rule Probable effect advice

2915.31–

2915.36

28B. (A) A change to 

subheading 2915.31 from any 

other subheading, except 

from subheading 2915.21; or

(B) A change to subheading 

2915.31 from subheading 

2915.21, whether or not there 

is also a change from any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

29. A change to subheading 

2915.32 from any other 

subheading.

30. (A) A change to 

subheading 2915.33 from any 

other subheading, except 

from subheading 2915.21; or

(B) A change to subheading 

2915.33 from subheading 

2915.21, whether or not there 

is also a change from any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

31. (A) A change to 

subheading 2915.36 from 

isobutyl acetate or 2-

ethoxyethyl acetate of 

subheading 2915.39 or any

other subheading, except 

from subheading 2915.21 or 

any other good of subheading 

2915.39; or

A change to subheading 2915.31 

through 2915.36 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-77

CHAPTER 29

TABLE 3.36—Continued

TABLE 3.36: Modification and effect

Modification: The proposed rule covers four esters of acetic acid: ethyl acetate, vinyl acetate, n-butyl acetate, and 

dinoseb (ISO) acetate. These chemicals are typically made using acetic acid as an input. The proposed modification 

does not substantively change the rule of origin for vinyl acetate (subheading 2915.32). 

The current rule requires ethyl acetate (subheading 2915.31) and n-butyl acetate (subheading 2915.33) made from 

non-originating acetic acid (subheading 2915.21) to meet a regional value content rule. If the final product does not 

meet the regional value content requirement, the acetic acid must be made in North America. Likewise, the current rule

requires dinoseb (ISO) acetate (subheading 2915.26) made using non-originating acetic acid or non-originating goods 

of subheading 2915.29, other than isobutyl acetate or 2-ethoxyethyl acetate, to meet a regional value content rule. If 

the regional value content requirement is not met, the acetic acid or other inputs classified in subheading 2915.29 used 

to make dinoseb (ISO) acetate must be made in North America.

The proposed modification is liberalizing because it removes both the product exclusion and the regional value content 

requirement for these goods.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on U.S. total 

imports. Although NTR rates of duty range from 3.7 to 5.5 percent ad valorem, in 2012 all U.S. imports from NAFTA 

partners qualified for the NAFTA preferential rate under the current rules of origin.

1

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S; exports. 

Most U.S. exports to NAFTA partners currently qualify for the NAFTA preferential rate of duty or are free of duty on an 

 1 Subheading 2915.32 is not substantively changed by the proposed modification. There were no imports from NAFTA 

partners for this subheading in 2012. 

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to subheading 

2915.36 from subheading 

2915.21, whether or not there 

is also a change from isobutyl

acetate or 2-ethoxyethyl 

acetate of subheading 

2915.39 or any other

subheading, except from any 

other good of subheading

2915.39, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used
TABLE 3.36: Modification and effect—Continued

MFN basis.

2 Mexico has two tariff items covered by the rule with MFN rates of duty of 10 percent; 3 the remaining tariff 

items for Mexico and all of the tariff items covered by the rule for Canada are free of duty on an MFN basis. In 2012, 

the effective tariff was less than 0.5 percent ad valorem for all U.S. exports to NAFTA partners.4

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be

negligible.

2 Canadian import data from Statistics Canada, International Trade Division, and Mexican import data from Mexican 

International Trade Integral Information System (SIICEX). 3 One of the Mexican tariff items with a rate of duty of 10 percent ad valorem covers products of subheading 2915.32, 

which is not substantively changed by the proposed modification. 4 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX).

3-78

 
3-79

CHAPTER 29

TABLE 3.37 Other esters of acetic acid

HTS no. Existing rule Proposed rule Probable effect advice

2915.39 32. (A) A change to 2-

ethoxyethyl acetate of 

subheading 2915.39 from any 

other good of subheading 

2915.39 or any other

subheading;

(B) A change to isobutyl 

acetate of subheading 

2915.39 from any other good 

of subheading 2915.39 or any 

other subheading, except 

from subheading 2915.21;

(C) A change to isobutyl 

acetate of subheading 

2915.39 from subheading 

2915.21, whether or not there 

is also a change from any 

other good of subheading 

2915.39 or any other 

subheading, provided there is 

a regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used;

(D) A change to any other 

good of subheading 2915.39 

from isobutyl acetate or 2-

ethoxyethyl acetate of 

subheading 2915.39 or any 

other subheading, except 

from subheading 2915.21 or 

2915.36; or

(E) A change to any other 

good of subheading 2915.39 

from subheading 2915.21, 

whether or not there is also a

change from isobutyl acetate 

or 2-ethoxyethyl acetate of 

subheading 2915.39 or any 

other subheading, provided

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to 2-ethoxyethyl acetate 

of subheading 2915.39 from any

other good within that subheading 

or any other subheading;

A change to isobutyl acetate of 

subheading 2915.39 from any 

other good within that subheading 

or any other subheading; or

A change to any other good of 

subheading 2915.39 from isobutyl

acetate or 2-ethoxyethyl acetate 

within that subheading or any

other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
TABLE 3.37: Modification and effect

Modification: The proposed modification does not substantively change the rule of origin for 2-ethoxyethyl acetate 

(tariff item 2915.39.80). It does, however, change the rule of origin for other goods of subheading 2915.39. 

Isobutyl acetate and other acetates included in this subheading are often made using acetic acid as an input. The 

current NAFTA rule allows a good of subheading 2915.39 made from non-originating acetic acid (subheading

2915.21) to receive the preferential rate of duty provided that it meets the regional value content requirement, as 

shown in parts (C) and (E) of the current rule. When the regional value content requirement is not met, the acetic acid 

must be made in North America. 2-Ethoxyethyl acetate is the only good of subheading 2915.39 that is currently 

allowed to be made from non-originating acetic acid without having to meet this regional value content requirement.

The proposed modification is liberalizing because it removes the regional value content requirement for all goods of 

subheading 2915.39 that are made using non-originating acetic acid.

The proposed modification also streamlines a rule that was made more complex by changes to the HS in 2007. Part 

D of the current rule does not allow products of subheading 2915.39 other than 2-ethoxyethyl acetate and isobutyl 

acetate that are made from non-originating dinoseb acetate (subheading 2915.36) to receive the preferential rate of 

duty. The proposed modification removes this exclusion for goods made using non-originating dinoseb acetate.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Dutiable imports from NAFTA partners for the affected products account for a small share of imports (2

percent of NAFTA imports and less than 0.5 percent of total U.S. imports in 2012).The effective tariff on U.S. imports

of the affected goods from NAFTA partners was less than 0.5 percent ad valorem in 2012.1

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty are free; MFN rates for Mexico range from free to 10 percent ad valorem. In 

2012, 86 percent of U.S. exports to Canada and Mexico entered under 8-digit tariff items that were free of duty on an 

MFN basis.2 If MFN rates of duty are applied to U.S. exports to NAFTA partners, the estimated effective tariff on U.S. 

exports to NAFTA partners of goods affected by the proposed modification was 1 percent ad valorem in 2012.

3 U.S.

exports to Canada and Mexico under tariff items that are not free of duty on an MFN basis make up only 4 percent of 

total U.S exports.

The effect on U.S. production is likely to be negligible because the net effect on total U.S. trade is expected to be

negligible.

1 The rule of origin for 2-ethoxyethyl acetate was not substantively changed by the proposed modification. There were no 

U.S. imports of 2-ethoxyethyl acetate from NAFTA partners in 2012. 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 3 The rule of origin for 2-ethoxyethyl acetate was not substantively changed by the proposed modification. U.S. exports of 

2-ethoxyethyl acetate accounted for less than 0.5 percent of U.S. exports to NAFTA partners in 2012.

3-80

 
3-81

CHAPTER 29

TABLE 3.38 Mono-, di- or trichloroacetic acids, their salts and esters; propionic acid, its salts and esters; butanoic 

acids, pentanoic acids, their salts and esters; and palmitic acid, stearic acid, their salts and esters

HTS no. Existing rule Proposed rule Probable effect advice

2915.40–

2915.70

32A. (A) A change to 

subheading 2915.40 from any 

other subheading, except 

from subheading 2915.21; or

(B) A change to subheading 

2915.40 from subheading 

2915.21, whether or not there 

is also a change from any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

33. A change to subheadings 

2915.50 through 2915.70 

from any other subheading, 

including another subheading 

within that group.

A change to subheading 2915.40 

through 2915.70 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.38: Modification and effect

Modification: The current NAFTA rule requires mono-, di-, or trichloroacetic acids, their salts and esters (subheading

2915.40) made from non-originating acetic acid to meet the regional value content rule. If the final product does not 

meet the regional value content requirement, the acetic acid must be made in North America. The proposed rule is 

liberalizing because it would remove the regional value content requirement for these products when they are made 

using non-originating acetic acid.

The proposed modification does not substantively change the rule of origin for propionic acid, its salts and esters

(subheading 2915.50); butanoic acids, pentanoic acids, their salts and esters (subheading 2915.60); and palmitic 

acid, stearic acid, their salts and esters (subheading 2915.70).

Effect: The rules for subheadings 2915.50 through 2915.70 remain the same; hence trade in the products covered 

under these subheadings would not be affected.

The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total U.S. 

imports. In 2012, there were no U.S. imports under subheading 2915.40 from Canada or Mexico. During January 

through March 2013, only a very small amount of imports entered from Canada under this subheading, and these 

entered at the NAFTA preferential rate of duty. The NTR duty rates for U.S. imports under tariff items in subheading 

2915.40 range from 1.8 to 5.5 percent ad valorem.
TABLE 3.38: Modification and effect—Continued

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN duty rate for subheading 2915.40 is free, and although Mexico’s MFN duty rates within 

subheading 2915.40 vary from free to 10 percent ad valorem, more than 90 percent of Mexico’s imports from the 

United States in 2012 were under a tariff item that is free of duty on an MFN basis.1 In 2012, subheading 2915.40 

accounted for 0.3 percent of U.S. exports to NAFTA partners for all of the subheadings covered by the proposed 

modification, resulting in an effective tariff rate of less than 0.5 percent ad valorem.

The effect on U.S. production is likely to be negligible because the effect on total U.S. trade is expected to be 

negligible.

1 Commission estimate based on Mexican import data obtained from Global Trade Atlas.

3-82

 
3-83

CHAPTER 29

TABLE 3.39 Other saturated acyclic monocarboxylic acids

HTS no. Existing rule Proposed rule Probable effect advice

2915.90 34. (A) A change to 

subheading 2915.90 from any 

other subheading; or

(B) A change to valproic salts 

of subheading 2915.90 from 

valproic acids of subheading 

2915.90.

A change to valproic salts of 

subheading 2915.90 from valproic

acids within that subheading or 

any other subheading; or

A change to any other good of 

subheading 2915.90 from any 

other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.39: Modification and effect

Modification: The proposed rule covers saturated acyclic monocarboxylic acids except for formic acid, its salts and 

esters; acetic acid, its salts and esters; acetic anhydride; mono-, di-, or trichloroacetic acids, their salts and esters; 

propionic acid, its salts and esters; butanoic acids, pentanoic acids, their salts and esters; and palmitic acid, stearic 

acid, their salts and esters.

Valproic salts are typically made using valproic acid as an input; however, some processes might make valproic salts 

without using valproic acid as an input. The current NAFTA rule allows valproic salts made from non-originating 

valproic acid to receive the preferential rate of duty, but valproic salts made using other non-originating inputs would 

not receive the preferential rate of duty. The proposed modification is liberalizing because it would allow valproic salts 

made from non-originating inputs of any subheading other than 2915.90 to receive the NAFTA preferential rate of 

duty. 

The proposed rule would make no substantive change to the current NAFTA rule of origin for any products of 

subheading 2915.90 other than valproic salts.

Effect: The proposed modification would likely have no effect on U.S. imports under NAFTA and on total U.S. imports 

The only product potentially affected by the proposed modification (valproic salts) can currently be imported free of 

duty on an NTR basis under the Pharmaceutical Agreement.1

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports 

because valproic salts are free of duty on an MFN basis in Canada and Mexico. 

There will likely be no effect on U.S. production because there will likely be no effect on total U.S. trade.

 1 Valproic salts are classified in tariff item 2915.90.18, which has a NTR rate of duty of 4.2 percent ad valorem. However, 

since valproic acid is listed in Table 1 of the Pharmaceutical appendix to the HTS, any salt of valproic acid listed in Table 2 of 

the Pharmaceutical appendix can be imported free of duty on an NTR basis. For more information on the Pharmaceutical 

appendix to the HTS, see USITC, Pharmaceutical Products and Chemical Intermediates, Fourth Review: Advice Concerning the 

Addition of Certain Products to the Pharmaceutical Appendix to the HTS, 2010.
3-84

CHAPTER 29

TABLE 3.40 Unsaturated acyclic monocarboxylic acids; cyclanic, cyclenic or cycloterpenic monocarboxylic acids; 

and benzoic acid, its salts and esters

HTS no. Existing rule Proposed rule Probable effect advice

2916.11–

2916.31

35A. A change to 

subheadings 2916.11 through 

2916.39 from any other 

subheading, including another 

subheading within that group.

A change to subheading 2916.11 

through 2916.31 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.40: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, total U.S. trade, or U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-85

CHAPTER 29

TABLE 3.41 Benzoyl peroxide and benzoyl chloride

HTS no. Existing rule Proposed rule Probable effect advice

2916.32 35A. A change to 

subheadings 2916.11 through 

2916.39 from any other 

subheading, including another 

subheading within that group.

A change to benzoyl peroxide of 

subheading 2916.32 from benzoyl 

chloride within that subheading or 

any other subheading;

A change to benzoyl chloride of 

subheading 2916.32 from benzoyl

peroxide within that subheading or 

any other subheading; or

A change to any other good of 

subheading 2916.32 from within

that subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: Substantial

increase

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.41: Modification and effect

Modification: The proposed rule covers the two products covered by subheading 2916.32, benzoyl peroxide and 

benzoyl chloride, either of which can be used in producing the other. The current NAFTA rule does not allow benzoyl 

peroxide made from non-originating benzoyl chloride to be eligible for the NAFTA preferential rates of duty, and vice 

versa. The proposed modification is liberalizing because it removes the restriction on the conversion between benzoyl 

peroxide and benzoyl chloride.

Benzoyl peroxide is used as an active ingredient in acne medications, as a bleaching agent for flour and other 

foodstuffs, and as a free-radical initiator in the production of plastics and rubber. Benzoyl peroxide is typically 

produced using benzoyl chloride as an input. Although technically feasible and allowed by the proposed rule of origin, 

there is unlikely to be any commercial production of benzoyl chloride using benzoyl peroxide as an input because 

benzoyl peroxide is the higher value product.

The third portion of the proposed rule for subheading 2916.32 would be unnecessary because the only two products 

classified in subheading 2916.32, benzoyl peroxide and benzoyl chloride, are covered by the first two portions of the 

proposed rule.

Effect: The proposed modification would likely result in a substantial increase in U.S. imports from NAFTA partners, 

which totaled $3.5 million in 2012. In 2012, over 99 percent of U.S. imports from NAFTA partners of the covered

products were dutiable, and the proposed modification would likely allow these imports to enter under the preferential 

rate of duty.1 The NTR rate of duty and the effective tariff on these products was 6.5 percent ad valorem in 2012. All 

of the imports from NAFTA partners consisted of benzoyl peroxide,

2 most of which came from Mexico (99 percent in 

2012), so any increase in imports as a result of the proposed modification would likely be benzoyl peroxide. As noted 

above, benzoyl chloride is typically an input in the production of benzoyl peroxide. Both the United States and Mexico 

import benzoyl chloride for the production of benzoyl peroxide and other chemicals. While the U.S. NTR rate of duty 

for benzoyl chloride is 6.5 percent ad valorem, benzoyl chloride is free of duty on an MFN basis in Mexico.

The proposed modification would likely have a negligible effect on total U.S. imports of all products covered by the 

rule, which includes both benzoyl chloride and benzoyl peroxide. Nevertheless, it is likely there could be a substantial 

increase in total U.S. imports of benzoyl peroxide. The NAFTA partners accounted for 72 percent of total U.S. imports 

of benzoyl peroxide in 2012 and it is likely there will be a substantial increase in U.S. imports from NAFTA partners, 

as noted above. However, benzoyl peroxide accounted for only 30 percent of total U.S. imports of products covered 

under the proposed rule in 2012. The effective tariff on total U.S. imports of all products covered by the rule was 

1.3 percent ad valorem in 2012.

The proposed modification would have no effect on U.S. exports under NAFTA and on total U.S. exports because 

these products are free of duty on an MFN basis in Canada and Mexico.

 1 Industry representative, email message to USITC staff, June 24, 2013. 2 Classified in tariff item 2916.32.10. 
3-86

TABLE 3.41: Modification and effect—Continued

The effect on U.S. production of benzoyl peroxide would likely be negligible; there is no U.S. production of benzoyl 

chloride. U.S. imports of benzoyl peroxide from NAFTA partners and total U.S. imports are small relative to U.S. 

production. In 2012, U.S. imports of benzoyl peroxide from NAFTA partners were equivalent to only about 8 percent 

of U.S. production and total U.S. imports of benzoyl peroxide were equivalent to about 12 percent of U.S. production.3

Further, increased U.S. imports from NAFTA partners would likely in part displace imports from non-NAFTA countries 

rather than U.S. production alone.

4 

Although the effect on overall U.S. production would likely be negligible, there could be an adverse effect on 

individual firm(s) producing benzoyl peroxide in the United States. Four firms produce benzoyl peroxide in the United 

States.5 One of these firms produces benzoyl peroxide in Mexico as well.6 One domestic producer stated that the 

proposed modification would allow benzoyl peroxide made from non-originating benzoyl chloride to qualify for the 

NAFTA preferential rate, which would have “serious, negative impacts” on its company and its operations. The firm 

stated that the proposed chemical reaction rule for chapter 29 (see table 3.13) would also allow benzoyl peroxide to 

be made using non-originating benzoyl chloride and qualify for the preferential rate.7

 3 Calculation based on domestic production estimates from an industry representative, email message to USITC staff, 

September 24, 2013. 4 Industry representative, email message to USITC staff, June 24, 2013. 5 The domestic producers are Akzo Nobel (plant location: Pasadena, TX), Arkema (Geneseo, NY), Norac Pharma (Azusa, 

CA), and United Initiators (Elyria, OH, and Helena, AR); IHS Chemical, Directory of Chemical Producers. USITC staff 

attempted to contact all domestic producers of benzoyl peroxide and received responses from three. One of these firms, Arkema, 

made two official submissions to the USITC. 6 Akzo Nobel produces benzoyl peroxide in Los Reyes, Mexico. Industry representative, email message to USITC staff, 

September 18, 2013. 7 Arkema, Inc., provided two written submissions. The first submission on July 22, 2013, asked that the proposed 

modification to the product-specific rule for subheading 2916.32 (involving benzoyl peroxide and benzoyl chloride) not be 

adopted or implemented. The second submission on September 20, 2013, stated that the proposed chemical reaction rules for 

chapter 29 would also allow non-originating benzoyl chloride to be made into originating benzoyl peroxide. They asked that “the 

proposed changes regarding benzoyl peroxide and benzoyl chloride be phased in over a period of at least five years” to allow 

them sufficient time “to plan for the new competitive landscape.” Arkema, Inc., written submissions to the USITC, July 22, 2013, 

and September 20, 2013. See appendix D.
3-87

CHAPTER 29

TABLE 3.42 Phenylacetic acid and certain other aromatic monocarboxylic acids

HTS no. Existing rule Proposed rule Probable effect advice

2916.34–

2916.39

35A. A change to 

subheadings 2916.11 through 

2916.39 from any other 

subheading, including another 

subheading within that group.

A change to subheading 2916.34

through 2916.39 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.42: Modification and effect 

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, total U.S. trade, or U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-88

CHAPTER 29

TABLE 3.43 Acyclic polycarboxylic acids; cyclanic, cyclenic or cycloterpenic polycarboxylic acids; dioctyl, dinonyl, or 

dodecyl orthophthalates

HTS no. Existing rule Proposed rule Probable effect advice

2917.11–

2917.33

35B. A change to 

subheadings 2917.11 through 

2917.33 from any other 

subheading, including another 

subheading within that group.

A change to subheading 2917.11 

through 2917.33 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.43: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, total U.S. trade, or U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-89

CHAPTER 29

TABLE 3.44 Other esters of orthophthalic acid

HTS no. Existing rule Proposed rule Probable effect advice

2917.34 35C. (A) A change to dibutyl 

orthophthalates of 

subheading 2917.34 from any 

other good of subheading 

2917.34 or any other 

subheading; or

(B) A change to any other 

good of subheading 2917.34 

from dibutyl orthophthalates 

of subheading 2917.34 or any 

other subheading;

A change to.dibutyl 

orthophthalates of subheading 

2917.34 from any other good 

within that subheading or any 

other subheading; or

A change to any other good of 

subheading 2917.34 from dibutyl 

orthophthalates within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.44: Modification and effect

Modification: The proposed rule covers esters of orthophthalic acid other than dioctyl, dinonyl, and didecyl 

orthophthalates.

The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, total U.S. trade, or U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-90

CHAPTER 29

TABLE 3.45 Certain aromatic polycarboxylic acids

HTS no. Existing rule Proposed rule Probable effect advice

2917.35–

2917.39

35D. A change to 

subheadings 2917.35 through 

2917.39 from any other 

subheading, including another 

subheading within that group.

A change to subheadings 2917.35 

through 2917.39 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.45: Modification and effect

Modification: The proposed rule covers phthalic anhydride, terephthalic acid, and certain other aromatic 

polycarboxylic acids.

The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, total U.S. trade, or U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-91

CHAPTER 29

TABLE 3.46 Certain carboxylic acids with alcohol function

HTS no. Existing rule Proposed rule Probable effect advice

2918.11–

2918.18

36. A change to subheadings 

2918.11 through 2918.16 

from any other subheading, 

including another subheading 

within that group.

36A. A change to subheading 

2918.18 from phenylglycolic 

acid (mandelic acid), its salts 

or esters of subheading 

2918.19, from any other good 

of subheading 2918.19, or 

any other subheading.

A change to subheading 2918.11 

through 2918.18 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.46: Modification and effect

Modification: The proposed rule covers lactic acid, tartaric acid, citric acid, gluconic acid, and the salts and esters of 

these acids. The proposed rule also covers chlorobenzilate (ISO).

The proposed rule would make no substantive change to the current NAFTA rule of origin.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, total U.S. trade, or U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-92

CHAPTER 29

TABLE 3.47 Aromatic carboxylic acids with alcohol function

HTS no. Existing rule Proposed rule Probable effect advice

2918.19 36B. (A) A change to 

phenylglycolic acid (mandelic

acid), its salts or esters of 

subheading 2918.19 from any 

other good of subheading 

2918.19 or any other 

subheading; or

(B) A change to any other 

good of subheading 2918.19 

from phenylglycolic acid 

(mandelic acid), its salts or 

esters of subheading 2918.19 

or any other subheading, 

except from subheading 

2918.18.

A change to phenylglycolic acid 

(mandelic acid), its salts or esters

of subheading 2918.19 from any 

other good within that subheading

or any other subheading; or

A change to any other good of 

subheading 2918.19 from 

phenylglycolic acid (mandelic 

acid), its salts or esters within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.47: Modification and effect

Modification: The current NAFTA rules reflect the WCO’s creation in 2007 of a separate HS subheading covering 

chlorobenzilate, formerly provided for in tariff item 2918.19.30. Part (B) of the existing rule excludes the use of nonoriginating chlorobenzilate (subheading 2918.18) in the production of other goods of subheading 2918.19 because 

tariff shifts within that subheading were not permitted before the 2007 HS change. No substantive change would be 

made in part (A) of the existing rule. 

The second portion of the proposed rule would appear to be liberalizing because it removes the product exclusion for 

non-originating chlorobenzilate. However, chlorobenzilate is a pesticide banned in the United States and is unlikely to 

be used as an input in the production of chemicals in subheading 2918.19.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports because it affects only chemicals that are made using chlorobenzilate as an input. Chlorobenzilate is a 

pesticide and is not typically used as an input in making other chemicals. Additionally, dutiable imports of the goods in 

this subheading from NAFTA partners account for a very small share (less than 0.5 percent in 2012) of U.S. imports 

from NAFTA partners and total U.S. imports. NTR rates of duty for U.S. tariff items in this subheading range from free 

to 6.5 percent ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. As noted, chlorobenzilate is not typically used as an input in the production of products of subheading 

2918.19 in the United States. Additionally, most U.S. exports to Canada and Mexico in 2012 were under tariff items

that are free of duty on an MFN basis.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-93

CHAPTER 29

TABLE 3.48 Salicylic acid, its salts and esters; and o-acetylsalicylic acid, its salts and esters

HTS no. Existing rule Proposed rule Probable effect advice

2918.21–

2918.23

36C. A change to subheading 

2918.21 from any other 

subheading.

37. (A) A change to 

subheadings 2918.22 through 

2918.23 from any other 

subheading, including another 

subheading within that group, 

except from subheading 

2918.21; or

(B) A change to subheadings 

2918.22 through 2918.23 

from subheading 2918.21,

whether or not there is also a 

change from any other 

subheading, including another 

subheading within that group, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 2918.21 

through 2918.23 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Significant

increase

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.48: Modification and effect

Modification: o-Acetylsalicylic acid, better known as aspirin, and other esters of salicylic acid are generally made 

using salicylic acid as an input.

The current NAFTA rule allows salicylic acid (subheading 2918.21) to be made from non-originating compounds 

classified in other tariff subheadings. The proposed rule does not substantively change the rule of origin for salicylic 

acid (subheading 2918.21).

The current rule allows o-acetylsalicylic acid (subheading 2918.22) and other esters of salicylic acid (subheading

2918.23) to be made from non-originating salicylic acid (subheading 2918.21), provided the final product meets the

regional value content rule. If the regional content requirement is not met, the salicylic acid must be made in North 

America. Non-originating inputs from other tariff subheadings may also be used to make the products of subheadings 

2918.22 through 2918.23. The proposed modification is liberalizing because it removes the product exclusion and the 

regional value content requirement. The proposed rule allows any subheading-level tariff change to confer origin.

Effect: The proposed modification would likely result in a significant increase in U.S. imports from NAFTA partners, 

which totaled $13.5 million in 2012. Dutiable imports accounted for 27 percent of U.S. imports of goods under these 

subheadings from NAFTA partners in 2012.1 The effective tariff on U.S. imports from NAFTA partners was 1.8 

percent ad valorem in 2012. The vast majority of dutiable imports under these subheadings from NAFTA partners in 

2012 were odoriferous or flavoring compounds of tariff item 2918.23.20, which has an NTR rate of duty of 6.5 percent 

ad valorem. Dutiable imports under this tariff item were all from Mexico in 2012. 

The proposed modification would likely have a negligible effect on total U.S. imports. Dutiable imports from NAFTA 

partners accounted for only 5 percent of total U.S. imports of products covered by the modification in 2012. 

 1 Subheading 2918.21is not substantively changed by the proposed modification. There were no dutiable U.S. imports 

under this subheading from NAFTA partners in 2012.
3-94

TABLE 3.48: Modification and effect—Continued

The proposed modification would have no effect on U.S. exports because o-acetylsalicylic acid (subheading 2918.22) 

and other esters of salicylic acid (subheading 2918.23) are free of duty on an MFN basis in Canada and Mexico.

The proposed modification would likely have a negligible effect on U.S. production because the net effect on total 

U.S. trade is expected to be negligible. Also, U.S. imports of these goods from NAFTA partners are small compared 

to U.S. production.
3-95

CHAPTER 29

TABLE 3.49 Certain carboxylic acids with phenol function and carboxylic acids with aldehyde or ketone function

HTS no. Existing rule Proposed rule Probable effect advice

2918.29–

2918.30

38. (A) A change to 

subheadings 2918.29 through 

2918.30 from any other 

subheading, including another 

subheading within that group; 

or

(B) A change to parabens of 

subheading 2918.29 from phydroxybenzoic acid of 

subheading 2918.29.

A change to parabens of 

subheading 2918.29 from phydroxybenzoic acid within that 

subheading or any other

subheading; or

A change to any other good of 

subheadings 2918.29 through 

2918.30 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.49: Modification and effect

Modification: The proposed rule covers carboxylic acids with phenol function, other than salicylic acid, oacetylsalicylic acid, and their salts and esters; and carboxylic acids with aldehyde or ketone function.

The current NAFTA rule only allows parabens made using p-hydroxybenzoic acid as an input to qualify for NAFTA 

preferential rates of duty. Parabens are typically made by reacting p-hydroxybenzoic acid with inputs from outside of 

subheading 2918.29. For example, butyl parabens can be produced by reacting p-hydroxybenzoic acid with butanol 

of subheading 2905.13. The proposed rule is liberalizing because it would allow parabens made using non-originating 

inputs of any subheading other than 2918.29, as well as p-hydroxybenzoic acid of subheading 2918.29, to receive the 

NAFTA preferential rate of duty. 

The proposed rule would make no substantive change to the current NAFTA rule of origin for any products of 

subheadings 2918.29 through 2918.30 other than parabens of tariff item 2918.29.75.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Dutiable imports under tariff item 2918.29.75, which covers parabens, account for a small share of U.S. 

imports of all products covered by the rule from NAFTA partners (18 percent in 2012). The NTR rate of duty for tariff 

item 2918.29.75 is 6.5 percent ad valorem. Dutiable imports from NAFTA partners under tariff item 2918.29.75 

accounted for less than 0.5 percent of total U.S. imports of products covered by the proposed rule in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. More than 99 percent of U.S. exports of the subject products to Canada and Mexico entered under 8-digit 

tariff items that were free of duty on an MFN basis in 2012. All Canadian and most Mexican tariff items in these 

subheadings are already free of duty on an MFN basis. Mexico has two tariff items within subheadings 2918.29 

through 2918.30 with rates of duty of 5 percent ad valorem. U.S. exports under these two Mexican tariff lines 

accounted for less than 0.5 percent of U.S. exports to NAFTA partners and total U.S. exports in 2012.

The proposed modification would likely have a negligible effect on U.S. production because the net effect on total 

U.S. trade is expected to be negligible.
3-96

CHAPTER 29

TABLE 3.50 Certain carboxylic acids with additional oxygen function

HTS no. Existing rule Proposed rule Probable effect advice

2918.91–

2918.99

39. (A) A change to 

subheadings 2918.91 through 

2918.99 from any subheading 

outside that group, except 

from subheadings 2908.11, 

2908.19 or 2915.40; or

(B) A change to subheadings 

2918.91 through 2918.99 

from subheadings 2908.11, 

2908.19 or 2915.40, whether 

or not there is also a change 

from any subheading outside 

that group, provided there is a 

regional value content of

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 2918.91 

through 2918.99 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.50: Modification and effect

Modification: The proposed rule covers carboxylic acids with additional oxygen function, but without alcohol, phenol, 

aldehyde, or ketone function.

The current NAFTA rule requires 2,4,5-T (ISO), its salts and esters (subheading 2918.91), and goods of subheading 

2918.99 made from non-originating halogenated derivatives of phenols and phenol-alcohols (subheadings 2908.11 

and 2908.19) or non-originating mono-, di- or trichloroacetic acids (subheading 2915.40) to meet a regional value 

content requirement. If the final product does not meet the regional value content requirement, the specified inputs

must be made in North America. Additionally, the current NAFTA rule does not allow a change between subheadings 

2918.91 and 2918.99 to confer origin.

The proposed rule is liberalizing because it removes both the product exclusion and the regional value content 

requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Dutiable imports of the covered products account for a very small share (less than 1 percent in 2012) of 

imports from NAFTA partners and total U.S. imports for subheadings 2918.91 and 2918.99. The NTR rates of duty for 

the subheadings covered by the proposed modification range from free to 6.5 percent ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. These products are free of duty on an MFN basis in Canada; MFN rates for Mexico range from free to 10 

percent ad valorem. More than 87 percent of exports of the covered products to Canada and Mexico entered under 8-

digit tariff items that were free of duty on an MFN basis in 2012.1

The proposed modification would likely have a negligible effect on U.S. production because the net effect on total 

U.S. trade is expected to be negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-97

CHAPTER 29

TABLE 3.51 Phosphoric esters and esters of other inorganic acids of nonmetals

HTS no. Existing rule Proposed rule Probable effect advice

2919.10–

2920.90

40. A change to heading 2919 

from any other heading.

41. A change to subheadings 

2920.11 through 2920.19 

from any subheading outside 

that group.

41A. A change to subheading 

2920.90 from any other 

subheading.

A change to subheading 2919.10 

through 2920.90 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.51: Modification and effect

Modification: The WCO’s 2007 changes to the HS restructured headings 2919 and 2920 to make it easier to monitor 

international trade in tris(2,3-dibromopropyl)phosphate (subheading 2919.10) and parathion and parathion-methyl 

(subheading 2920.11), which are hazardous chemicals covered by the Rotterdam Convention. The current NAFTA 

rules resulted from the update of the 2002 NAFTA rules to ensure that all prior origin treatment would continue. Under 

the current NAFTA rules, goods of subheading 2919.90 made using non-originating tris(2,3-dibromopropyl)phosphate

of subheading 2919.10 would not qualify for the NAFTA preferential rate of duty; likewise, tris(2,3-

dibromopropyl)phosphate made from non-originating inputs of subheading 2919.90 would not qualify for the 

preferential rate. Under the current rule, goods of subheading 2920.19 made using non-originating parathion or

parathion-methyl of subheading 2920.10 would not qualify for the NAFTA preferential rate of duty, and parathion or 

parathion-methyl of subheading 2920.10 made using non-originating inputs of subheading 2920.19 would not qualify 

for the preferential rate.

The proposed modification is liberalizing because it allows any subheading-level tariff change to confer origin.

However, the modifications involve hazardous chemicals that are banned for certain applications in the United States 

and are unlikely to be used as inputs in the production of other products, so the modification will likely have no 

practical effect.

The proposed modification would make no substantive change for subheading 2920.90.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. It affects chemicals that are banned or restricted for use in the United States and that are unlikely to be 

used as inputs in making other chemicals. Additionally, dutiable imports from NAFTA partners under the subheadings 

substantially changed by the proposed modification (2919.10 through 2920.19) accounted for 2 percent of U.S. 

imports from NAFTA partners and less than 0.5 percent of total U.S. imports of products covered by the proposed 

rule in 2012. The effective tariff on U.S. imports from NAFTA partners for the subheadings substantively changed by 

the proposed modification was less than 0.5 percent ad valorem in 2012. NTR rates of duty for U.S. tariff items in 

these subheadings range from free to 6.5 percent ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA partners and on total 

U.S. exports. Tris(2,3-dibromopropyl)phosphate (subheading 2919.10), parathion, and parathion-methyl (subheading 

2920.11) are not typically used as inputs in the production of goods of subheading 2919.10 through 2920.90 in the 

United States. Additionally, in 2012, 96 percent of U.S. exports to Canada and Mexico under the subheadings that 

would be substantively changed by the proposed modification were under tariff items that are free of duty on an MFN 

basis in those countries, resulting in an effective tariff of less than 0.5 percent ad valorem.1

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Canadian and Mexican import data 

obtained from Global Trade Atlas.
3-98

CHAPTER 29

TABLE 3.52 Methylamine, di- or trimethylamine and their salts

HTS no. Existing rule Proposed rule Probable effect advice

2921.11 42. (A) A change to 

subheading 2921.11 from any 

other heading, except from 

headings 2901, 2902, 2904, 

2916, 2917 or 2926; or

(B) A change to subheading 

2921.11 from any other 

subheading within heading 

2921, or headings 2901, 

2902, 2904, 2916, 2917 or 

2926, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 2921.11 

from any other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.52: Modification and effect

Modification: The current NAFTA rules allow methylamine, di- or trimethylamine and their salts (subheading 

2921.11) made using non-originating inputs of headings 2901, 2902, 2904, 2916, 2917, 2921, or 2926 to receive the 

NAFTA preferential rate of duty provided that the final product meets the regional value content requirement. If the 

final product does not meet the regional value content rule, inputs of these headings must be made in North America.

The proposed modification is in principle liberalizing because it removes the product exclusions and the regional 

value content requirement. However, it is unlikely that the modification will have any practical significance because 

methanol and ammonia, the inputs most commonly used in making methylamine, di- or trimethylamine and their salts, 

are not classified in headings 2901, 2902, 2904, 2916, 2917, or 2926, or other subheadings of heading 2921.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The proposed change does not affect the inputs typically used to make products of subheading 

2921.11. Additionally, dutiable imports from NAFTA for subheading 2921.11 accounted for only 2 percent of all 

imports from NAFTA partners in 2012. The NTR rate of duty for products of this subheading is 3.7 percent ad 

valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. For Canada, the products of subheading 2921.11 are free of duty on an MFN basis, so the modification 

would have no effect on U.S. exports to Canada. U.S. exports to Mexico accounted for one-half of U.S. exports to 

NAFTA partners and about 20 percent of total U.S. exports in 2012. Even though most U.S. exports to Mexico under 

this provision are subject to an MFN rate of duty of 10 percent ad valorem, the proposed modification is unlikely to 

have a significant effect on U.S. exports to Mexico because the proposed change does not affect the inputs typically 

used to make products of subheading 2921.11. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible.
3-99

CHAPTER 29

TABLE 3.53 Mono-, di- and triethylamines and other acyclic monoamines

HTS no. Existing rule Proposed rule Probable effect advice

2921.19 43. (A) A change to 

diethylamine or its salts of 

subheading 2921.19 from any 

other heading, except from 

headings 2901, 2902, 2904, 

2916, 2917 or 2926;

(B) A change to diethylamine 

or its salts of subheading 

2921.19 from any other good 

of subheading 2921.19 or any 

other subheading within

heading 2921, or headings 

2901, 2902, 2904, 2916, 2917 

or 2926, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

(C) A change to any other 

good of subheading 2921.19 

from diethylamine or its salts 

of subheading 2921.19 or any 

other subheading.

A change to a good of subheading 

2921.19 from diethylamine or its 

salts within that subheading or any 

other subheading; or

A change to diethylamine or its 

salts of subheading 2921.19 from 

any other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.53: Modification and effect

Modification: The current NAFTA rule treats diethylamine and its salts differently than the other acyclic monoamines 

of subheading 2921.19. This compound and its salts were added to this subheading in 2007, when subheading 

2921.12 was deleted from the HS, and the current rule reflects the updating of existing NAFTA rules to maintain 

possible tariff shifts that were previously allowed. For diethylamine or its salts (tariff item 2921.19.11) made using 

non-originating inputs of headings 2901, 2902, 2904, 2916, 2917, 2921, or 2926, the final product must meet a 

regional value content requirement to receive the NAFTA preferential rate of duty; otherwise, the inputs of these 

headings must be made in North America. For other acyclic monoamines of subheading 2921.19, any subheadinglevel tariff change or a change from diethylamine or its salts within subheading 2921.19 confers origin.

The proposed modification is in principle liberalizing because it would remove the product exclusions and the regional 

value content requirement for diethylamine and its salts. However, it is unlikely that the modification will have any 

practical significance because ethanol and ammonia, the inputs most commonly used in making diethylamine and its

salts, are not classified in headings 2901, 2902, 2904, 2916, 2917, 2921, or 2926.

The proposed modification does not substantively change the rule of origin for goods of subheading 2921.19 other 

than diethylamine and its salts.
3-100

TABLE 3.53: Modification and effect—Continued

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The modification does not affect the inputs typically used in the production of diethylamine and its salts. 

Additionally, dutiable imports for tariff line 2921.19.11, which covers diethylamine and its salts among other products, 

accounted for less than 1 percent of U.S. imports under subheading 2921.19 from NAFTA partners in 2012. The 

effective tariff on U.S. imports of the subject goods from NAFTA was less than 0.5 percent ad valorem in 2012.1 The 

NTR rate of duty for tariff item 2921.19.11 is 3.7 percent ad valorem.

The proposed modification would have no effect on U.S. exports to NAFTA partners or total U.S. exports. U.S. 

exports of diethylamine and is salts are free of duty on an MFN basis in both Canada and Mexico.

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible.

 1 Commission estimate based on estimated duties collected on U.S. imports from NAFTA partners under tariff item 

2921.19.11 as a share of U.S. imports from NAFTA partners of all products covered by the rule (subheading 2921.19). 
3-101

CHAPTER 29

TABLE 3.54 Acyclic polyamines; cyclanic, cyclenic or cycloterpenic mono- or polyamines; and aromatic mono- or 

polyamines

HTS no. Existing rule Proposed rule Probable effect advice

2921.21–

2921.59

44. (A) A change to 

subheadings 2921.21 through 

2921.29 from any other 

heading, except from 

headings 2901, 2902, 2904, 

2916, 2917 or 2926; or

(B) A change to subheadings 

2921.21 through 2921.29 

from any other subheading

within heading 2921, including 

another subheading within 

that group, or headings 2901, 

2902, 2904, 2916, 2917 or 

2926, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

[TCR 44A deleted]

45. A change to subheading 

2921.30 from any other 

subheading.

46. (A) A change to 

subheadings 2921.41 through 

2921.45 from any other 

heading, except from 

headings 2901, 2902, 2904, 

2916, 2917 or 2926; or

(B) A change to subheadings 

2921.41 through 2921.45 

from any other subheading

within heading 2921, including 

another subheading within 

that group, or headings 2901, 

2902, 2904, 2916, 2917 or 

2926, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

A change to subheading 2921.21 

through 2921.59 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-102

CHAPTER 29

TABLE 3.54—Continued

HTS No. Existing rule Proposed rule Probable effect advice

(2) 50 percent where the net 

cost method is used.

46A. (A) A change to 

subheadings 2921.46 through 

2921.49 from any other 

heading, except from 

headings 2901, 2902, 2904, 

2916, 2917 or 2926; or

(B) A change to subheadings 

2921.46 through 2921.49 

from any subheading outside 

that group within heading 

2921 or headings 2901, 2902, 

2904, 2916, 2917 or 2926, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

46B. (A) A change to 

subheadings 2921.51 through 

2921.59 from any other 

heading, except from 

headings 2901, 2902, 2904, 

2916, 2917 or 2926; or

(B) A change to subheadings 

2921.51 through 2921.59 

from any other subheading

within heading 2921, including 

another subheading within 

that group, or headings 2901, 

2902, 2904, 2916, 2917 or 

2926, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.
3-103

TABLE 3.54: Modification and effect—Continued

Modification: The current NAFTA rule allows amine-function compounds of subheadings 2921.21 through 2921.29

and 2921.41 through 2921.59 made using non-originating inputs of headings 2901, 2902, 2904, 2916, 2917, or 2926, 

or other subheadings of heading 2921, to receive the preferential rate of duty provided that the final product meets 

the regional value content requirement. If the final product does not meet the regional value content requirement, 

NAFTA status can only be claimed if non-originating inputs are classified outside the excluded headings.

The proposed modification is liberalizing because it removes the product exclusions and the regional value content 

requirement. It allows any subheading-level tariff change to confer origin.

The proposed modification does not substantively change the rule of origin for subheading 2921.30.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Dutiable imports account for a small share of imports from NAFTA partners (6 percent in 2012) for the 

covered products, resulting in an effective tariff of less than 0.5 percent ad valorem.

1 NTR rates of duty for U.S. tariff 

lines covering these products range from free to 6.5 percent ad valorem. Dutiable imports from NAFTA partners 

accounted for less than 0.5 percent of total U.S. imports for subheadings 2921.21 through 2921.59 in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. In 2012, 98 percent of U.S. exports of the covered goods to Canada and Mexico were under tariff items that 

are free of duty on an MFN basis, resulting in an estimated effective tariff of less than 0.5 percent.

2 Canada’s MFN 

rates of duty are free; Mexico’s MFN rates of duty range from free to 7 percent ad valorem. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible.

 1 Subheading 2921.30 is not substantively changed by the proposed modification. Dutiable U.S. imports under this 

subheading from NAFTA partners accounted for less than 1 percent of dutiable U.S. imports from NAFTA partners of all goods 

covered by the proposed rule in 2012. 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-104

CHAPTER 29

TABLE 3.55 Certain oxygen-function amino-compounds

HTS no. Existing rule Proposed rule Probable effect advice

2922.11–

2922.21

47. (A) A change to 

subheadings 2922.11 through 

2922.13 from any other 

heading, except from headings 

2905 through 2921; or

(B) A change to subheadings 

2922.11 through 2922.13 from 

any other subheading within 

heading 2922, including 

another subheading within that 

group, or headings 2905 

through 2921, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

47A. (A) A change to 

subheadings 2922.14 through 

2922.19 from any other 

heading, except from headings 

2905 through 2921; or

(B) A change to subheadings 

2922.14 through 2922.19 from 

any subheading outside that 

group within heading 2922

or headings 2905 through 

2921, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

47B. (A) A change to 

subheading 2922.21 from any 

other heading, except from 

headings 2905 through 2921; 

or

A change to subheading 

2922.11 through 2922.21 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Significant 

increase1

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all U.S. 

exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent that 

U.S. exports to Mexico currently receive the NAFTA preferential rate of duty.
3-105

CHAPTER 29

TABLE 3.55—Continued

TABLE 3.55: Modification and effect

Modification: The current rule covers a variety of oxygen-function amino-compounds, including monoethanolamine, 

diethanolamine, and triethanolamine and their salts.

The current NAFTA rule has several limitations on what non-originating inputs may be used. For subheadings 

2922.11 through 2922.21, any input classified in headings 2905 through 2921 needs to be made in North America 

unless the final good meets the regional value content requirement. For example, the current NAFTA rule allows

ethanolamines (subheadings 2922.11, 2922.12, and 2922.13) made from non-originating ethylene oxide (subheading

2910.10) to receive the preferential rate of duty provided that the ethanolamines meet the regional value content 

requirement. If the final product does not meet the regional value content requirement, the ethylene oxide must be 

made in North America.

The proposed modification is liberalizing because it removes the product exclusions and regional value content 

requirement. It allows any subheading-level tariff change to confer origin.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, 88 percent of U.S. imports of the subject products from NAFTA partners were from Mexico. 

The majority of these products from NAFTA partners–about 95 percent–entered free of duty, including all of the 

product imported from Mexico, resulting in an effective tariff of less than 0.5 percent ad valorem. 

The proposed modification could potentially result in a significant increase in U.S. exports to NAFTA partners, which 

totaled $95.3 million in 2012. Canada’s MFN duty rates for subheadings covered by the proposed rule are free. U.S. 

exports of these products to Canada accounted for about 62 percent of total U.S. exports to NAFTA partners of the 

subject products. In 2012, about one-half of U.S. exports of these products to Mexico were under tariff lines that were 

free of duty on an MFN basis; the remaining exports were under tariff lines that had an MFN rate of duty of 5 or 10 

percent ad valorem. If MFN rates of duty are applied to U.S. exports to the NAFTA partners, the estimated effective 

tariff on all U.S. exports to NAFTA partners of goods covered by this rule was 2.1 percent in 2012.

2

 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.

HTS No. Existing rule Proposed rule Probable effect advice

(B) A change to subheading 

2922.21 from any other 

subheading within heading 

2922, including another 

subheading within that group, 

or headings 2905 through 

2921, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.
3-106

TABLE 3.55: Modification and effect—Continued

The proposed modification would likely have a negligible effect on total U.S. exports. U.S. exports to NAFTA partners 

represented about 18 percent of total U.S. exports of these products in 2012. The effective tariff on total U.S. exports 

of products covered by the rule was less than 0.5 percent ad valorem in 2012.3

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Also, any expected change in U.S. exports of these products to NAFTA partners is likely small compared 

with U.S. production.

 3 Calculated based on actual duties paid on U.S. exports to Canada and assuming the MFN rates apply to U.S. exports to 

Mexico of products covered by the proposed modification divided by total U.S. exports of all products covered by the proposed 

modification. Commission estimate based on Mexican import data from Global Trade Atlas, and U.S. export data from USITC 

DataWeb/USDOC. 
3-107

CHAPTER 29

TABLE 3.56 Certain amino-naphthols and other amino-phenols

HTS no. Existing rule Proposed rule Probable effect advice

2922.29 47C. (A) A change to 

anisidines, dianisidines, 

phenetidines or their salts of 

subheading 2922.29 from any 

other heading, except from 

headings 2905 through 2921; 

or

(B) A change to anisidines, 

dianisidines, phenetidines or 

their salts of subheading 

2922.29 from any other good 

of subheading 2922.29, any 

other subheading within 

heading 2922 or headings 

2905 through 2921, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

(C) A change to any other 

good of subheading 2922.29 

from any other heading, except 

from headings 2905 through

2921; or

(D) A change to any other 

good of subheading 2922.29 

from anisidines, dianisidines, 

phenetidines or their salts of

subheading 2922.29, any other 

subheading within heading 

2922 or headings 2905 

through 2921, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2922.29 from any other 

subheading; 

A change to anisidines, 

dianisidines, phenetidines or 

their salts of subheading 

2922.29 from any other good 

within that subheading, 

whether or not there is also a 

change from any other 

subheading, provided there is 

a regional value content of not 

less than:

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used; or 

A change to any other good of 

subheading 2922.29 from 

anisidines, dianisidines, 

phenetidines or their salts 

within that subheading, 

whether or not there is also a 

change from any other 

subheading, provided there is 

a regional value content of not 

less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None 

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible
3-108

TABLE 3.56: Modification and effect—Continued

Modification: In 2007, the WCO deleted HS subheading 2922.22 covering anisidines, dianisidines, phenetidines, 

and their salts. These compounds were reclassified into the residual subheading 2922.29 (new tariff item 

2922.29.03). The rules of origin in effect before this change allowed subheading-level changes for compounds of 

subheadings 2922.21 through 2922.29, provided that regional value content requirements were met, as well as the 

use of inputs from other headings, but separate rules were required for these reclassified compounds as a result of 

the subheading deletion.

This subheading covers non-enumerated amino-naphthols and amino-phenols, and their ethers and esters. The 

current NAFTA rule, which covers non-enumerated amino-naphthols and amino-phenols, and their ethers and esters, 

limits the use of non-originating inputs classified within headings 2905 through 2921 in making goods of subheading 

2922.29 unless regional value requirements are met. For example, o-aminophenol of subheading 2922.29 can be 

synthesized from o-nitrophenol. The current NAFTA rule allows o-aminophenol made from non-originating onitrophenol (subheading 2908.99) to receive the preferential rate of duty provided that it meets the regional value 

content requirement. If the final product does not meet the regional value content requirement, the o-nitrophenol must 

be made in North America.

The proposed modification is liberalizing because it removes the product exclusions and regional value content 

requirement for non-originating inputs of headings 2905 through 2921. It allows any subheading-level change to 

confer origin. The regional value content requirement for making anisidines, dianisidines, phenetidines, or their salts 

of subheading 2922.29 from any other good within that subheading, and vice versa, is not substantively changed by 

the proposed modification.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The NTR rates for the U.S. imports covered by this rule range from free to 6.5 percent ad valorem. In 

2012, however, all U.S. imports of these goods from Canada and Mexico entered free of duty either under the NTR 

rate or the NAFTA preferential rate. U.S. imports from NAFTA partners accounted for less than 0.5 percent of total 

U.S. imports of these products in 2012. 

The proposed modification would have no effect on U.S. exports under NAFTA and total U.S. exports. These 

products are free of duty on an MFN basis in Canada and Mexico. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be

negligible. 
3-109

CHAPTER 29

TABLE 3.57 Amino-aldehydes, amino-ketones, and amino-quinones; amino-acids; and amino-alcohol-phenols, 

amino-acid-phenols, and other amino-compounds with oxygen function, and their salts

HTS no. Existing rule Proposed rule Probable effect advice

2922.31–

2922.50

47D. (A) A change to 

subheadings 2922.31 through 

2922.39 from any other 

heading, except from headings 

2905 through 2921; or

(B) A change to subheadings 

2922.31 through 2922.39 from 

any subheading outside that 

group within heading 2922 or 

headings 2905 through 2921, 

whether or not there is also a 

change from any other 

heading, provided there is a

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

47E. (A) A change to 

subheadings 2922.41 through 

2922.43 from any other 

heading, except from headings 

2905 through 2921; or

(B) A change to subheadings 

2922.41 through 2922.43 from 

any other subheading within 

heading 2922, including

another subheading within that 

group, or headings 2905 

through 2921, whether or not 

there is also a change from

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

47F. (A) A change to 

subheadings 2922.44 through 

2922.49 from any other 

heading, except from headings 

2905 through 2921; or

A change to subheading 

2922.31 through 2922.50 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible 

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-110

CHAPTER 29

TABLE 3.57—Continued 

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to subheadings 

2922.44 through 2922.49 from 

any subheading outside that 

group within heading 2922

or headings 2905 through 

2921, whether or not there is 

also a change from any other 

heading, provided there is a

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

47G. (A) A change to 

subheading 2922.50 from any 

other heading, except from 

headings 2905 through 2921; 

or

(B) A change to subheading 

2922.50 from any other 

subheading within heading 

2922 or headings 2905 

through 2921, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.
3-111

TABLE 3.57: Modification and effect—Continued

Modification: The current rule covers a wide variety of products and their salts, including amfepramone (INN), 

methadone (INN), and normethadone (INN).

The current NAFTA rules include regional value content requirements that limit the use of non-originating inputs 

classified within headings 2905 through 2921 in making goods of subheadings 2922.31 through 2922.50. For 

example, amfepramone can be manufactured using diethylamine. The current NAFTA rules allow amfepramone

(subheading 2922.31) made from non-originating diethylamine (subheading 2921.19) to receive the preferential rate 

of duty provided that the final product meets the regional value content requirement. If the final product does not meet 

the regional value content requirement, the diethylamine must be made in North America.

The proposed modification is liberalizing because it removes the product exclusions and regional value content 

requirement for non-originating inputs of headings 2905 through 2921. The proposed modification allows any 

subheading-level change to confer origin.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, 94 percent of these U.S. imports from Canada and Mexico entered free of duty, resulting in an

effective tariff of less than 0.5 percent ad valorem. U.S. imports from NAFTA partners accounted for less than 0.5 

percent of total U.S. imports of these products. 

The proposed modification would likely have a negligible effect on U.S. exports of these products under NAFTA 

partners and on total U.S. exports. Canada’s MFN rates of duty for these products are free. In 2012, Mexico 

accounted for about 30 percent of U.S. exports of the subject products to NAFTA partners; Mexico’s MFN rates of 

duty ranged from 5 to 10 percent ad valorem. If MFN rates of duty are applied to these U.S. exports to the NAFTA 

partners, the effective tariff on all U.S exports to NAFTA partners was less than 1 percent ad valorem in 2012.

1 U.S. 

exports of these products to its NAFTA partners accounted for 13 percent of total U.S. exports. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-112

CHAPTER 29

TABLE 3.58 Quaternary ammonium salts and hydroxides; lecithins, and other phosphoaminolipids

HTS no. Existing rule Proposed rule Probable effect advice

2923.10–

2923.90

48. A change to subheadings 

2923.10 through 2923.90 from 

any other subheading, 

including another subheading 

within that group.

A change to subheading 

2923.10 through 2923.90 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None 

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.58: Modification and effect

Modification: The proposed rule would make no substantive changes to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-113

CHAPTER 29

TABLE 3.59 Acyclic amides and certain cyclic amides

HTS no. Existing rule Proposed rule Probable effect advice

2924.11–

2924.21

49. A change to subheadings 

2924.11 through 2924.19 from 

any subheading outside that 

group.

50. (A) A change to 

subheading 2924.21 from any 

other subheading, except from 

subheading 2917.20; or

(B) A change to subheading 

2924.21 from subheading 

2917.20, whether or not there 

is also a change from any 

other subheading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2924.11 through 2924.21 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Significant 

increase

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.59: Modification and effect

Modification: The current NAFTA rule covers acyclic and cyclic amides (e.g., ureines), and their derivatives and 

salts.

A common method for making cyclic amides of these subheadings is the reaction of cyclic carboxylic acids of 

subheading 2917.20 with ammonia or other amines. The current NAFTA rule allows a cyclic amide (subheading

2924.21) made from a non-originating cyclic carboxylic acid (subheading 2917.20) to receive the preferential rate of 

duty provided that the final product meets the regional value content requirement. If the final product does not meet 

the regional value content requirement, the cyclic carboxylic acid of subheading 2917.20 must be made in North 

America.

Additionally, the current NAFTA rule does not allow a change between subheadings within the group 2924.11 through 

2924.19 to confer origin.

The proposed modification is liberalizing because it removes the regional value content requirement for products of 

subheading 2924.21 made using non-originating goods of subheading 2917.20 and allows any subheading-level 

change to confer origin.

Effect: The proposed modification would likely result in a significant increase in U.S. imports from NAFTA partners, 

which totaled $3.1 million in 2012. The NTR duty rates on goods covered by this rule range from free to 6.5 percent 

ad valorem. The effective tariff on U.S. imports of these goods from NAFTA partners was 1.6 percent ad valorem in 

2012. The proposed modification would likely have a negligible effect on total U.S. imports. U.S. imports from NAFTA 

partners accounted for only 1 percent of total U.S. imports of these products in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty for these products are free. Mexico’s MFN rates of duty for the covered 

products range from free to 10 percent ad valorem. If MFN rates of duty are applied, the effective tariff on all U.S 

exports to NAFTA partners of goods covered by this rule was 1.4 percent ad valorem in 2012.

1 U.S. exports to 

NAFTA partners accounted for 17 percent of total U.S. exports of these goods in 2012.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
TABLE 3.59: Modification and effect—Continued

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. Also, U.S. imports from NAFTA partners were less than 1 percent of estimated U.S. production in 2012.

3-114
3-115

CHAPER 29

TABLE 3.60 2-Acetamidobenzoic acid (N-acetylanthranilic acid) and its salts

HTS no. Existing rule Proposed rule Probable effect advice

2924.23 51. (A) A change to 

subheading 2924.23 from any 

other subheading, except from

subheadings 2917.20 or 

2924.24 through 2924.29;

(B) A change to 2-

acetamidobenzoic acid (Nacetylanthranilic acid) of 

subheading 2924.23 from its 

salts of subheading 2924.23 or 

subheadings 2917.20 or 

2924.24 through 2924.29, 

whether or not there is also a 

change from any other 

subheading, provided there is 

a regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

(C) A change to salts of 

subheading 2924.23 from 2-

acetamidobenzoic acid (Nacetylanthranilic acid) of 

subheading 2924.23 or 

subheadings 2917.20 or 

2924.24 through 2924.29, 

whether or not there is also a 

change from any other 

subheading, provided there is 

a regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2924.23 from any other 

subheading; 

A change to 2-

acetamidobenzoic acid (Nacetylanthranilic acid) of 

subheading 2924.23 from its 

salts within that subheading, 

whether or not there is also a 

change from any other 

subheading, provided there is 

a regional value content of not 

less than:

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used; or 

A change to salts of 

subheading 2924.23 from 2-

acetamidobenzoic acid (Nacetylanthranilic acid) within 

that subheading, whether or 

not there is also a change 

from any other subheading, 

provided there is a regional 

value content of not less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible
3-116

TABLE 3.60: Modification and effect

Modification: The current NAFTA rule provides for a subheading-level tariff change for non-originating inputs but 

excludes subheadings that cover many key inputs. In the alternative, the rule allows 2-acetamidobenzoic acid to be

made from non-originating inputs of subheadings 2917.20 or 2924.24 through 2924.29 or for non-originating salts of 

2-acetamidobenzoic acid (subheading 2924.23) to receive the preferential rate of duty provided that the acid meets

the regional value content requirement. The current NAFTA rule also allows salts of 2-acetamidobenzoic acid made 

from non-originating inputs of subheadings 2917.20 or 2924.24 through 2924.29 or for non-originating 2-

acetamidobenzoic acid (subheading 2924.23) to receive the preferential rate of duty provided that the final product 

meets the regional value content requirement. If the regional value content requirement is not met, inputs of the 

excluded subheadings must be made in North America.

The proposed modification is liberalizing because it removes the exclusions and regional value content requirement 

for subheadings 2917.20 and 2924.24 through 2924.29. Any subheading-level tariff change would confer origin. 

However, 2-acetamidobenzoic acid or salts of 2-acetamidobenzoic acid made from non-originating inputs of 

subheading 2924.23 would still need to meet the regional value content requirement to receive the preferential rate of 

duty. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Canada was the only NAFTA source of these products in 2012, and all imports from Canada qualified 

for the NAFTA preferential rate that year. There were no U.S. imports of these goods from Canada 2008–11 or from 

Mexico during 2008–12. The value of all U.S. imports of these products declined substantially during 2008–11, from 

$159,121 to $3,375. Although imports from Canada accounted for 100 percent of total U.S. imports of these products 

in 2012, given both the recent decline in the value and the fact that all of these U.S. imports from Canada currently 

enter free of duty under NAFTA, the proposed modification would likely have a negligible effect on total U.S. imports. 

The proposed modification would have no effect on U.S. exports to NAFTA partners or on total U.S. exports. The 

MFN rate of duty is free for Canada and Mexico.

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 
3-117

CHAPTER 29

TABLE 3.61 Ethinamate (INN) and certain other cyclic amides

HTS no. Existing rule Proposed rule Probable effect advice

2924.24–

2924.29

51A. (A) A change to 

subheadings 2924.24 through 

2924.29 from any subheading 

outside that group, except from

subheadings 2917.20 or 

2924.23; or

(B) A change to subheadings 

2924.24 through 2924.29 from 

subheading 2917.20 or from 2-

acetamidobenzoic acid

(N-acetylanthranilic acid) of 

subheading 2924.23, whether 

or not there is also a change 

from any subheading outside 

that group, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2924.24 through 2924.29 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.61: Modification and effect

Modification: The current NAFTA rule covers cyclic amides other than ureines, their derivatives and salts, and 2-

acetamidobenzoic acid and its salts.

Common methods for making cyclic amides of these subheadings use cyclic carboxylic acids of subheading 2917.20 

as inputs. The current NAFTA rule allows cyclic amides (subheadings 2924.24 through 2924.29) made from nonoriginating cyclic carboxylic acids (subheading 2917.20) to receive the preferential rate of duty provided that they

meet the regional value content requirement. If the final product does not meet the regional value content 

requirement, the cyclic carboxylic acids must be made in North America.

A similar regional value content requirement applies to cyclic amides of subheadings 2924.24 through 2924.29 made 

from non-originating 2-acetamidobenzoic acid (N-acetylanthranilic acid) of subheading 2924.23.

The proposed modification is liberalizing because it removes the product exclusions and the regional value content 

requirement in both of the instances. Any subheading-level tariff shift would confer origin.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on total U.S. imports of these goods from NAFTA partners was less than 1 percent 

ad valorem in 2012. U.S. imports from NAFTA partners accounted for only 1 percent of total U.S. imports of these 

products in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total 

U.S. exports of these products. Canada’s MFN rates of duty for these products are free. Mexico’s tariff items under 

these subheadings are free of duty on an MFN basis except for one item, which has a rate of duty of 5 percent ad 
TABLE 3.61: Modification and effect—Continued

valorem. However, there were no U.S. exports to Mexico under this tariff item during 2008–12. If MFN rates of duty 

are applied to U.S. exports to the NAFTA partners, the effective tariff on all U.S exports to NAFTA partners of goods 

covered by this rule is zero.1 U.S. exports to NAFTA partners accounted for 8 percent of total U.S. exports of the 

covered products in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 

3-118

 
3-119

CHAPTER 29

TABLE 3.62 Carboxyimide-function compounds (including saccharin and its salts) and imine-function compounds; 

nitrile-function compounds; diazo-, azo- or azoxy-compounds; organic derivatives of hydrazine or of hydroxylamine; 

and compounds with other nitrogen function

HTS no. Existing rule Proposed rule Probable effect advice

2925.11–

2929.90

52. A change to subheading 

2925.11 from any other 

subheading.

52A. A change to subheadings 

2925.12 through 2925.19 from 

any subheading outside that 

group.

52B. A change to subheadings 

2925.21 through 2925.29 from 

any subheading outside that 

group.

52C. A change to subheadings 

2926.10 through 2926.20 from 

any other subheading, 

including another subheading 

within that group.

52D. A change to subheadings 

2926.30 through 2926.90 from 

any subheading outside that 

group.

52E. A change to headings 

2927 through 2928 from any 

other heading, including 

another heading within that 

group.

53. (A) A change to 

subheadings 2929.10 through 

2929.90 from any other 

subheading, including another 

subheading within that group, 

except from heading 2921; or

(B) A change to subheadings 

2929.10 through 2929.90 from 

heading 2921, whether or not 

there is also a change from 

any other subheading, 

including another subheading 

within that group, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2925.11 through 2929.90 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-120

TABLE 3.62: Modification and effect—Continued

Modification: The proposed modification does not substantively change the rule of origin for saccharin and its salts 

(subheading 2925.11), acrylonitrile (subheading 2926.10), 1-cyanoguanidine (dicyandiamide) (subheading 2926.20), 

diazo-, azo- or azoxy-compounds (heading 2927), or organic derivatives of hydrazine or of hydroxylamine (heading 

2928). There are no international subheadings under heading 2927 or 2928.

The current NAFTA rule does not allow tariff changes between subheadings 2925.12 and 2925.19 or between 

subheadings 2925.21 and 2925.29 to confer origin.

The current NAFTA rule includes a regional value content requirement for goods of subheadings 2929.10 through 

2929.90 that applies when non-originating inputs from heading 2921 are used in producing the finished good.

Toluenediisocyanate (also called TDI), one of the many products covered under these rules, can be used as an 

example of how the proposed changes could affect the chemicals in this grouping. Toluenediamines can be used as 

inputs to the production of TDI. The current NAFTA rules allow TDI (subheading 2929.10) made from non-originating 

toluenediamines (subheading 2921.51) to receive the preferential rate of duty provided that the TDI meets the 

regional value content requirement. If the final product does not meet the regional value content requirement, the 

toluenediamines must be made in North America.

The proposed modification is liberalizing because it removes the product exclusions and the regional value content 

requirement for products of subheadings 2929.10 through 2929.90. The proposed rule allows any subheading-level 

tariff change to confer origin, including changes between subheadings 2925.12 and 2925.19 and between 

subheadings 2925.21 and 2925.29 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports of the subject products from NAFTA partners was less than 

0.5 percent ad valorem in 2012. U.S. imports of these products from NAFTA partners accounted for only 1 percent of 

total U.S. imports in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty for these products are free. Mexico’s MFN rates of duty range from free to 7 

percent ad valorem. If MFN rates of duty are applied to U.S. exports to the NAFTA partners, the effective tariff on all 

U.S exports to NAFTA partners of goods covered by this rule was 0.6 percent ad valorem in 2012.

1 U.S. exports to 

NAFTA partners accounted for 12 percent of total U.S. exports of the products covered in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-121

CHAPTER 29

TABLE 3.63 Certain organo-sulfur compounds

HTS no. Existing rule Proposed rule Probable effect advice

2930.20–

2930.50

54. A change to subheadings 

2930.20 through 2930.40 from 

any other subheading, 

including another subheading 

within that group.

54A. A change to subheading 

2930.50 from any other 

subheading, except from 

subheading 2930.90.

A change to subheading 

2930.20 through 2930.50 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.63: Modification and effect

Modification: The proposed rule covers the following organo-sulfur compounds: thiocarbamates and 

dithiocarbamates (subheading 2930.20); thiuram mono-, di- or tetrasulfides (subheading 2930.30); methionine 

(subheading 2930.40); and captafol and methamidophos (subheading 2930.50).The latter two products are pesticides 

and must be registered with the U.S. Environmental Protection Agency (EPA) to be sold in the United States.1

Under the current NAFTA rule, if captafol or methamidophos (subheading 2930.50) is made using a good of 

subheading 2930.90, that good of subheading 2930.90 must be made in North America for the captafol or 

methamidophos to receive the preferential rate of duty. 

The proposed rule is liberalizing because it would eliminate this restriction on the production of captafol or 

methamidophos from goods of subheading 2930.90. The proposed modification does not substantively change the 

rule of origin for goods of subheadings 2930.20 through 2930.40. 

Effect: The proposed modification would have no effect on U.S. imports under NAFTA or on total U.S. imports. 

Captafol has been banned in the U.S. market since 2006. Most, if not all, U.S. product registrations for 

methamidophos were cancelled as of 2009, and U.S. sales of remaining stocks of the product were banned after 

December 31, 2010. The United States last imported the subject products in 2009. 

The proposed modification would have no effect on U.S. exports under NAFTA or on total U.S. exports. Goods of 

subheading 2930.50 are free of duty on an MFN basis in both Canada and Mexico. Methamidophos is banned in 

Canada but reportedly is still in use in Mexico. 

The proposed modification would have no effect on U.S. production because there would be no effect on U.S. trade.

 1 EPA, “Pesticide Registration Manual: Chapter 1 - Overview of Requirements for Pesticide Registration and Registrant 

Obligations,” http://www.epa.gov/pesticides/bluebook/chapter1.html#types (accessed May 28, 2013).
3-122

CHAPTER 29

TABLE 3.64 Other organo-sulfur compounds

HTS no. Existing rule Proposed rule Probable effect advice

2930.90 54B. (A) A change to 

dithiocarbonates (xanthates) of 

subheading 2930.90 from any 

other good of subheading 

2930.90 or any other 

subheading; or

(B) A change to any other good 

of subheading 2930.90 from 

dithiocarbonates (xanthates) of 

subheading 2930.90 or any 

other subheading, except from 

subheading 2930.50.

A change to dithiocarbonates 

(xanthates) of subheading 

2930.90 from any other good 

within that subheading or any 

other subheading; or 

A change to any other good of 

subheading 2930.90 from 

dithiocarbonates (xanthates) 

within that subheading or any 

other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.64: Modification and effect

Modification: In the WCO’s changes to the HS that became effective in 2007, dithiocarbonates (xanthates) were 

reclassified from subheading 2930.10, which was deleted, into subheading 2930.90. The existing NAFTA rule was

updated to continue to recognize all previous tariff changes as conferring origin. The current NAFTA rule allows

dithiocarbonates made using non-originating inputs from subheading 2930.90 or from any other subheading to 

receive the preferential rate of duty. The current NAFTA rule does not allow goods of subheading 2930.90, other than 

dithiocarbonates, that are made using non-originating inputs of subheading 2930.50 to receive the preferential rate of 

duty.

The proposed modification is in principle liberalizing because it removes the restriction related to non-originating 

captafol (ISO) and methamidophos (ISO) (subheading 2930.50). In practice, however, it is unlikely that these two 

products, which are pesticides covered by the Rotterdam Convention, would be used as inputs to any of the products 

in subheading 2930.90. Captafol has been banned in the U.S. market since 2006. Most, if not all, U.S. product 

registrations for methamidophos were cancelled as of 2009; U.S. sales of remaining stocks of the product were 

banned after December 31, 2010.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and total U.S. 

imports. Most of the imports of the covered products from Canada and Mexico already enter free of duty under 

NAFTA. The effective tariff on these goods was less than 1 percent ad valorem in 2012. U.S. imports from NAFTA 

partners accounted for 2 percent of total U.S. imports of these products in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S.

exports. Canada’s MFN rate of duty for these products is free. Mexico’s MFN rates of duty range from free to 5 

percent ad valorem. If MFN rates of duty are applied to U.S. exports to the NAFTA partners, the effective tariff on all 

U.S. exports to NAFTA partners of goods covered by this rule was less than 0.5 percent ad valorem in 2012.

1 U.S. 

exports to NAFTA partners accounted for 14 percent of total U.S. exports of the covered products in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-123

CHAPTER 29

TABLE 3.65 Other organo-inorganic compounds; heterocyclic compounds with oxygen hetero-atom(s) only; and 

heterocyclic compounds with nitrogen hetero-atom(s) only

HTS no. Existing rule Proposed rule Probable effect advice

2931.00–

2933.99

55. A change to heading 2931 

from any other heading.

56. (A) A change to 

subheadings 2932.11 through 

2932.94 from any other 

heading; or

(B) A change to subheadings 

2932.11 through 2932.94 from 

any other subheading within 

heading 2932, including

another subheading within that 

group, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

56A. (A) A change to 

subheadings 2932.95 through 

2932.99 from any other 

heading; or

(B) A change to subheadings 

2932.95 through 2932.99 from 

any subheading outside that 

group within heading 2932,

whether or not there is also a 

change from any other

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2931.00 through 2933.99 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-124

CHAPTER 29

TABLE 3.65—Continued

HTS no. Existing rule Proposed rule Probable effect advice

57. (A) A change to 

subheadings 2933.11 through 

2933.32 from any other 

heading; or

(B) A change to subheadings 

2933.11 through 2933.32 from 

any other subheading within 

heading 2933, including

another subheading within that 

group, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

57A. (A) A change to 

subheadings 2933.33 through 

2933.39 from any other 

heading; or

(B) A change to subheadings 

2933.33 through 2933.39 from 

any subheading outside that 

group within heading 2933,

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.
3-125

CHAPTER 29

TABLE 3.65—Continued

HTS no. Existing rule Proposed rule Probable effect advice

57B. (A) A change to 

subheadings 2933.41 through 

2933.49 from any other 

heading; or

(B) A change to subheadings 

2933.41 through 2933.49 from 

any subheading outside that 

group within heading 2933,

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

57C. (A) A change to 

subheadings 2933.52 through 

2933.54 from any other 

heading; or

(B) A change to subheadings 

2933.52 through 2933.54 from 

any subheading outside that 

group within heading 2933,

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.
3-126

CHAPTER 29

TABLE 3.65—Continued

HTS no. Existing rule Proposed rule Probable effect advice

57D. (A) A change to 

subheadings 2933.55 through 

2933.59 from any other 

heading; or

(B) A change to subheadings 

2933.55 through 2933.59 from 

any subheading outside that 

group within heading 2933,

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

57E. (A) A change to 

subheadings 2933.61 through 

2933.69 from any other 

heading; or

(B) A change to subheadings 

2933.61 through 2933.69 from 

any other subheading within 

heading 2933, including

another subheading within that 

group, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

58. (A) A change to 

subheading 2933.71 from any 

other chapter, except from 

chapter 28 through 38; or
3-127

CHAPTER 29

TABLE 3.65—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to subheading 

2933.71 from any other 

subheading within chapter 28 

through 38, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

59. (A) A change to 

subheadings 2933.72 through 

2933.79 from any other 

heading; or

(B) A change to subheadings 

2933.72 through 2933.79 from 

any subheading outside that 

group within heading 2933,

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

59A. (A) A change to 

subheadings 2933.91 through 

2933.99 from any other 

heading; or
3-128

CHAPTER 29

TABLE 3.65—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to subheadings 

2933.91 through 2933.99 from 

any subheading outside that 

group within heading 2933,

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

TABLE 3.65: Modification and effect

Modification: The proposed rule covers a diverse set of products, including isosafrole, safrole, and piperonal (also 

known as heliotropin). The headings also cover tetramethyl lead, organo-arsenic compounds, various acids and their 

derivatives, melamine, and many other products.

The current NAFTA rule imposes regional value content requirements for most subheadings within subheadings 

2932.11 through 2933.99.

1 These requirements apply to the use of non-originating inputs classified in various other 

subheadings, headings, or chapters in the production of the finished goods. Non-originating inputs to goods of 

heading 2931 must undergo a heading-level tariff shift with no regional value content requirement.

The proposed modification is liberalizing because it removes the regional value content requirements and allows any 

subheading-level tariff change to confer origin.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Most U.S. imports of the subject products already enter free of duty under NAFTA. In 2012, U.S. 

imports from Canada and Mexico under NTR rates of duty accounted for only about 13 percent of total U.S. imports 

from NAFTA partners and less than 1 percent of total U.S. imports of the covered products. The effective tariff on U.S. 

imports of these products from Canada and Mexico was about 0.5 percent ad valorem in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports to NAFTA partners and on total U.S. 

exports. Canada’s MFN duty rate for covered subheadings is free. Mexico’s MFN duty rates for these subheadings 

vary from free to 7 percent ad valorem. If MFN rates of duty are applied to U.S. exports to the NAFTA partners, the

effective tariff on all U.S. exports to NAFTA partners of goods covered by this rule was less than 0.5 percent ad 

valorem in 2012.

2 U.S. exports of these products to NAFTA partners accounted for 6 percent of total U.S. exports in 

2012.

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible.

 1 In 2012, the WCO made changes to HS heading 2931 by subdividing it into three new subheadings 2931.10, 2931.20, and 

2931.90, and merging subheadings 2932.21 and 2932.29 into new subheading 2932.20. The NAFTA rules in general note 12 

have not been updated to reflect the 2012 HS modifications. Nevertheless, the aggregate product coverage appears to be identical. 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-129

CHAPTER 29

TABLE 3.66 Certain nucleic acids and heterocyclic compounds

HTS no. Existing rule Proposed rule Probable effect advice

2934.10–

2934.30

60. A change to subheadings 

2934.10 through 2934.30 from 

any other subheading,

including another subheading 

within that group.

A change to subheading 

2934.10 through 2934.30 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.66: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule of origin. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-130

CHAPTER 29

TABLE 3.67 Other nucleic acids and their salts; other heterocyclic compounds

HTS no. Existing rule Proposed rule Probable effect advice

2934.91–

2934.99

60A. (A) A change to 

subheadings 2934.91 through 

2934.99 from any subheading 

outside that group; or

(B) A change to nucleic acids 

of subheadings 2934.91 

through 2934.99 from other 

heterocyclic compounds of

subheading 2934.91 through 

2934.99.

A change to nucleic acids of 

any subheading 2934.91 

through 2934.99 from other 

heterocyclic compounds 

within that subheading or any 

other subheading, including 

another subheading within 

that group; or 

A change to any other good of 

subheading 2934.91 through 

2934.99 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.67: Modification and effect

Modification: The proposed rule covers nucleic acids and other heterocyclic compounds except for compounds 

containing an unfused thiazole ring, a benzothiazole ring-system, or a phenothiazole ring-system.

The current NAFTA rule does not allow a shift from subheading 2934.91 to 2934.99, or vice versa, to confer origin, 

except when heterocyclic compounds of subheadings 2934.91 through 2934.99 are converted to nucleic acids of that 

same subheading group. 

The proposed modification is liberalizing in two ways: (1) it would allow any subheading-level tariff shift, including 

between subheadings 2934.91 and 2934.99, to confer origin, and (2) it would expand the scope of heterocyclic 

compounds that can be used in making nucleic acids from just those of subheadings 2934.91 through 2934.99 to 

heterocyclic compounds within the same subheading as the nucleic acid or in any other subheading. Changing the 

order of these rules would also clarify that the second rule listed in the “proposed rule” column is a residual rule, given 

that the NAFTA tariff shift rules are to be applied in order to each imported good.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The NTR rates of duty specific to the subheadings covered by this rule range from free to 6.5 percent 

ad valorem. In 2012, the effective tariff on U.S. imports from NAFTA partners was less than 0.5 percent ad valorem; 

about 92 percent of these U.S. imports from NAFTA partners entered the United States free of duty. The value of 

U.S. imports from Canada and Mexico accounted for less than 0.5 percent of total U.S. imports of these products in 

2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty on these goods are free. For Mexico, most of the 8-digit tariff items covered by 

the proposed rule are MFN free. In 2012, U.S. exports to Mexico accounted for almost 80 percent of total U.S. 

exports of these goods to NAFTA partners; all of these U.S. exports to Mexico were under tariff items that are free of 

duty on an MFN basis.

1 U.S. exports of these goods to NAFTA partners accounted for 9 percent of total 

U.S. exports. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Commission estimate based on Mexican import data obtained from Global Trade Atlas.
3-131

CHAPTER 29

TABLE 3.68 Sulfonamides

HTS no. Existing rule Proposed rule Probable effect advice

2935.00 61. A change to heading 2935 

from any other heading.

A change to subheading 

2935.00 from any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.64: Modification and effect

Modification: The proposed rule would make no substantive changes to the current NAFTA rule of origin. There are 

no international subheadings under 2935.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-132

CHAPTER 29

TABLE 3.69 Hormones, prostaglandins, thromboxanes and leukotrienes; glycosides and vegetable alkaloids; and 

other organic compounds

HTS no. Existing rule Proposed rule Probable effect advice

2937.11–

2942.00

63. (A) A change to 

subheadings 2937.11 through 

2937.90 from any other 

chapter, except from chapters 

28 through 38; or

(B) A change to subheadings 

2937.11 through 2937.90 from 

any other subheading within 

chapters 28 through 38,

including another subheading 

within that group, whether or 

not there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

64. (A) A change to 

subheadings 2938.10 through 

2938.90 from any other 

heading, except from heading 

2940; or

(B) A change to subheadings 

2938.10 through 2938.90 from 

any other subheading within 

that group or heading 2940,

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

2937.11 through 2942.00 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-133

CHAPTER 29

TABLE 3.69—Continued

HTS no. Existing rule Proposed rule Probable effect advice

65. (A) A change to 

concentrates of poppy straw of 

subheading 2939.11 from any 

other subheading, except from 

chapter 13; or

(B) A change to any other good 

of subheading 2939.11 from 

concentrates of poppy straw of 

subheading 2939.11 or any 

other subheading, except from 

subheading 2939.19.

65A. A change to subheading 

2939.19 from concentrates of 

poppy straw of subheading 

2939.11 or any other 

subheading, except from any 

other good of subheading 

2939.11.

65B. (A) A change to quinine 

or its salts of subheading 

2939.20 from any other good 

of subheading 2939.20 or any 

other subheading; or

(B) A change to any other good 

of subheading 2939.20 from 

quinine or its salts of 

subheading 2939.20 or any 

other subheading.

65C. A change to subheadings 

2939.30 through 2939.42 from 

any other subheading, 

including another subheading 

within that group.

65D. A change to subheadings 

2939.43 through 2939.49 from 

any subheading outside that 

group.

65E. A change to subheadings 

2939.51 through 2939.59 from 

any subheading outside that 

group.

65F. A change to subheadings 

2939.61 through 2939.69 from 

any other subheading, 

including another subheading 

within that group.
3-134

CHAPTER 29

TABLE 3.69—Continued

HTS no. Existing rule Proposed rule Probable effect advice

65G. (A) A change to 

subheadings 2939.91 through 

2939.99 from any subheading 

outside that group;

(B) A change to nicotine or its 

salts of subheading 2939.99 

from any other good of 

subheading 2939.99; or

(C) A change to any other 

good of subheading 2939.99 

from nicotine or its salts of 

subheading 2939.99.

66. (A) A change to heading 

2940 from any other heading, 

except from heading 2938; or

(B) A change to heading 2940 

from heading 2938, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used

67. (A) A change to 

subheadings 2941.10 through 

2941.90 from any other 

chapter, except from chapter 

28 through 38; or

(B) A change to subheadings 

2941.10 through 2941.90 from 

any other subheading within 

chapter 28 through 38,

including another subheading 

within that group, whether or 

not there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:
3-135

CHAPTER 29

TABLE 3.69—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

68. (A) A change to heading 

2942 from any other chapter, 

except from chapter 28 through 

38; or

(B) A change to heading 2942 

from any other heading within 

chapter 28 through 38, whether 

or not there is also a change 

from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

TABLE 3.69: Modification and effect

Modification: The proposed rule covers a diverse set of bulk chemicals, including hormones, alkaloids, and other 

organic chemicals, including epinephrine (also known as adrenaline). Also covered are chemically pure sugars 

(heading 2940) and antibiotics (heading 2941), both in bulk form. Many changes to the product scope of these 

headings have occurred in recent years. Examples include the 2002 HS changes that restructured headings 2937 

and 2939 and revised the description for heading 2940. In the 2007 HS changes, subheadings 2939.21 and 2939.29 

were deleted and replaced by subheading 2939.20. In the 2012 HS changes, subheadings 2937.31 through 2937.40 

were deleted and their products were reclassified into subheading 2937.90. In addition, new subheading 2939.44 was 

inserted to provide separately for norephedrine and its salts. The 2002 and 2007 HS changes have been reflected in 

updates to previous NAFTA rules, but NAFTA rules of origin have not yet been updated to reflect the 2012 changes. 

The proposed rule will simplify the existing rules, and in most but not all cases, liberalize them.

The current NAFTA rule includes regional value content requirements for many subheadings within 2937.11 through 

2942.00 that apply to the use of non-originating inputs classified in other subheadings, headings, or chapters in the 

production of the finished goods. Other goods of subheadings 2937.11 through 2942.00 are covered by subheadingor chapter-level tariff changes, with no regional value content requirements. For example, products of heading 2939 

must comply with tariff change criteria only. 

The proposed modification is liberalizing in most cases because it would allow any subheading-level tariff change for 

all of these chemicals and remove the regional value content requirements. 
3-136

TABLE 3.69: Modification and effect—Continued

There are a few cases where the proposed rule is seemingly more restrictive. The current rules allow non-originating 

concentrates of poppy straw (subheading 2939.11), quinine or its salts (subheading 2932.20), and nicotine or its salts 

(subheading 2939.99) to be potentially used as inputs in the production of other goods of their respective headings. 

Alternatively, non-originating goods of 2932.20 and 2939.99 can be used to produce quinine and its salts and nicotine

and its salts, respectively. However, the proposed modifications would no longer allow the use of products within 

subheadings 2939.11, 2932.20, and 2939.99 to confer origin if used as inputs for other products in the same 

subheading.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. U.S. imports of most of these goods are already free of duty for all NTR countries. For the tariff items 

that are not free of duty on an NTR basis, the NTR rates range from 1.5 to 6.5 percent ad valorem. The effective tariff 

on U.S. imports of these goods from Canada and Mexico was less than 0.5 percent ad valorem in 2012. Although 

there might be a slightly restrictive effect from the new rules for some of the products (as noted above), it is likely that 

restrictive effect will be offset by the liberalizing effect for other products covered by the new rule. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates for all of the tariff items covered by this rule are free. Mexico’s MFN rates range from 

free to 15 percent ad valorem. In 2012, 98 percent of U.S. exports of these goods to Mexico entered under tariff items 

that are free of duty on an MFN basis.

1 The effective tariff on U.S. exports of these products to NAFTA partners in 

2012 was less than 1 percent ad valorem.2 Any restrictive effect on U.S. exports (as suggested in the modifications 

section above) would likely be offset by the liberalizing effect of the proposed modification. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Mexican import data obtained from Global Trade Atlas. 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-137

TABLES FOR HTS CHAPTER 30

TABLE 3.70 Extracts of glands or other organs

HTS no. Existing rule Proposed rule Probable effect advice

3001.20 1. (A) A change to subheading 

3001.20 from any other 

heading, except from 

subheading 3006.92; or

(B) A change to subheading 

3001.20 from any other 

subheading within heading 

3001, whether or not there is 

also a change from any other 

heading, except from 

subheading 3006.92, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3001.20 from any other

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.70: Modification and effect

Modification: The current NAFTA rule allows a good of subheading 3001.20 made from non-originating inputs 

classified in any other subheading, except for subheadings 3001.90 (the only other international subheading in 

heading 3001) and 3006.92, to receive the NAFTA preferential rate of duty. The current rule allows a good of 

subheading 3001.20 made using a non-originating input of subheading 3001.90 to receive the preferential rate of duty 

if the final good meets a regional value content requirement. If the regional value content requirement is not met, 

inputs of subheading 3001.90 must be made in North America. The current rule does not allow the use of nonoriginating waste pharmaceuticals (subheading 3006.92), so waste pharmaceuticals used to make a good of 

subheading 3001.20 must be made in North America for the good to receive the preferential rate.

The proposed modification is liberalizing because it would remove the regional value content requirement and allow 

any subheading-level tariff change to confer origin. The proposed rule would remove the exclusion for inputs of

subheading 3006.92 (waste pharmaceuticals). However, it is unlikely that such waste products would be converted to 

products of subheading 3001.20.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty for these goods are free. Mexico’s MFN rates of duty for these goods range 

from free to 5 percent ad valorem. If MFN rates of duty are applied to U.S. exports to Mexico, the effective tariff on all 

U.S exports to NAFTA partners of goods covered by this rule was less than 1.5 percent ad valorem in 2012.

1 U.S. 

exports to NAFTA partners accounted for only 3 percent of total U.S. exports under subheading 3001.20. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-138

CHAPTER 30

TABLE 3.71 Human blood, blood products, and vaccines and other products

HTS no. Existing rule Proposed rule Probable effect advice

3002.10–

3002.90

3. A change to subheadings 

3002.10 through 3002.90 from 

any other subheading, 

including another subheading 

within that group, except from 

subheading 3006.92.

A change to subheading 

3002.10 through 3002.90 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.71: Modification and effect

Modification: The proposed rule covers human blood; animal blood prepared for therapeutic, prophylactic, or 

diagnostic uses; antisera, other blood fractions, and immunological products; and vaccines, toxins, cultures of 

microorganisms (excluding yeasts), and similar products. 

The current NAFTA rule does not allow a good of subheadings 3002.10 through 3002.90 made from non-originating 

waste pharmaceuticals (subheading 3006.92) to receive the preferential rate of duty. The proposed modification is 

liberalizing because it would allow any subheading-level tariff change to confer origin. The proposed rule would 

remove the exclusion for non-originating waste pharmaceuticals of subheading 3006.92. However, it is unlikely that 

such waste products would be converted to products of subheadings 3002.10 through 3002.90 (with the possible 

exception of refurbished diagnostic kits).

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. 

The proposed modification would likely have a negligible effect on U.S. exports of these goods under NAFTA and on 

total U.S. exports. Canada’s MFN rates of duty of the goods are free. Mexico’s MFN rates of duty of these goods 

range from free to 15 percent ad valorem. If MFN rates of duty are applied to U.S. exports to Mexico, the effective 

tariff on all U.S exports to NAFTA partners of goods covered by this rule was 1.2 percent ad valorem in 2012.

1 U.S. 

exports to NAFTA partners accounted for 13 percent of total U.S. exports of these goods in 2012. Additionally, the 

proposed modification is unlikely to have more than a negligible effect because, as noted above, it is unlikely that 

waste pharmaceuticals would be converted to goods of subheadings 3002.10 through 3002.90 (with the possible 

exception of refurbished diagnostic kits). 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-139

CHAPTER 30

TABLE 3.72 Sutures and other materials for medical diagnosis and treatment

HTS no. Existing rule Proposed rule Probable effect advice

3006.10–

3006.50

11. (A) A change to 

subheading 3006.10 from any 

other heading; or

(B) A change to subheading 

3006.10 from any other 

subheading within heading 

3006, except from subheading

3006.92, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

12. A change to subheading 

3006.20 from any other 

subheading, except from 

subheading 3006.92.

13. (A) A change to 

subheadings 3006.30 through 

3006.60 from any other 

heading; or

(B) A change to subheadings 

3006.30 through 3006.60 from 

any other subheading within 

heading 3006, including

another subheading within that 

group, except from subheading 

3006.92, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3006.10 through 3006.50 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible
3-140

TABLE 3.72: Modification and effect

Modification: The proposed rule covers sterile sutures and similar materials, blood-grouping reagents, opacifying 

preparations for x-ray examinations, dental cements, bone reconstruction cements, and first-aid kits.

The current NAFTA rule allows goods of subheadings 3006.10 through 3006.50 made using non-originating inputs 

from any other heading to receive the preferential rate of duty. For subheading 3006.20, non-originating inputs can be 

from any other subheading except 3006.92. The current rule allows a good of subheadings 3006.10 or 3006.30 

through 3006.50 made using a non-originating input of any other subheading in heading 3006, except 3006.92, to 

receive the preferential rate of duty if the regional value content requirement is met. If the regional value content 

requirement is not met, the inputs of heading 3006 must be made in North America. The current rules do not allow a 

subheading-level shift from waste pharmaceuticals of subheading 3006.92 to confer origin for any subheading 

3006.10 through 3006.50, so that such waste pharmaceuticals cannot originate outside North America.

The proposed modification is liberalizing because it would allow any subheading-level tariff change to confer origin 

and remove the regional value content requirements. The proposed rule would remove the exclusion for nonoriginating inputs from subheading 3006.92 (waste pharmaceuticals). However, it would be unlikely that such waste 

products would be converted to products of subheading 3006.10 through 3006.50 (with the possible exception of 

refurbished diagnostic kits). 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty for these goods are free. Mexico’s MFN rates of duty for these goods range

from free to 15 percent ad valorem. Using the actual duties paid on U.S. exports to Mexico, the effective tariff on U.S. 

exports of these products to NAFTA partners was 1 percent ad valorem in 2012.

1 U.S. exports of these goods to 

NAFTA partners accounted for 11 percent of total U.S. exports in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Mexican 

International Trade Integral Information System (SIICEX).
3-141

CHAPTER 30

TABLE 3.73 Chemical contraceptive preparations

HTS no. Existing rule Proposed rule Probable effect advice

3006.60 13. (A) A change to 

subheadings 3006.30 through 

3006.60 from any other 

heading; or

(B) A change to subheadings 

3006.30 through 3006.60 from 

any other subheading within 

heading 3006, including 

another subheading within that 

group, except from subheading 

3006.92, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3006.60 from any other 

heading; or 

A change to subheading 

3006.60 from any other 

subheading within heading 

30.06, except from 

subheading 3006.92, whether 

or not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less than: 

(a) 60 percent where the 

transaction value is used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.73: Modification and effect

Modification: The proposed rules would make no substantive changes to the current NAFTA rules.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rules are substantively the same as the current NAFTA rules.
3-142

CHAPTER 30

TABLE 3.74 Waste pharmaceuticals

HTS no. Existing rule Proposed rule Probable effect advice

3006.92 A change to subheading 

3006.92 from any other 

chapter.

A change to subheading 

3006.92 from any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: Substantial 

increase1

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.74: Modification and effect

Modification: Waste pharmaceuticals are pharmaceutical products that, according to note 4(k) to chapter 30, “are 

unfit for their original intended purpose, for example, because of expiry of shelf life.” Because pharmaceuticals 

products are usually classified in other subheadings within chapter 30, the current NAFTA rule requires waste 

pharmaceuticals to be wholly originating in North America or to be made from originating inputs classified in other 

chapters to receive the preferential rate of duty. 

The proposed modification is liberalizing because it allows any subheading-level tariff change to confer origin. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. 

The proposed modification could potentially result in a substantial increase in U.S. exports to NAFTA partners, albeit 

from a small base. U.S. exports of waste pharmaceuticals to NAFTA partners totaled only $20,000 in 2012 versus 

about $312,000 in 2008; the values and shares of such U.S. exports to NAFTA partners fluctuated considerably in the 

intervening years. Although these goods are MFN free of duty in Canada, Mexico imposes a 15 percent ad valorem 

MFN rate of duty. If MFN rates are applied to U.S. exports of these goods to NAFTA partners, the effective tariff on

U.S. exports to NAFTA partners was 12 percent ad valorem in 2012.

2 Elimination of Mexico’s high duty could cause 

diversion of U.S. exports of these waste products to Mexico from non-NAFTA partners or domestic consumption.

The proposed modification would likely have a negligible effect on total U.S. exports. U.S. exports of waste 

pharmaceuticals to NAFTA partners accounted for less than 1 percent of total U.S. exports in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. Additionally, U.S. production of waste pharmaceuticals is a by-product of other production and is not likely 

to be sensitive to tariff changes.

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all U.S. 

exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent that 

U.S. exports to Mexico currently receive the NAFTA preferential rate of duty. 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-143

TABLE FOR HTS CHAPTER 31

TABLE 3.75 Nitrogenous, phosphatic, and potassic fertilizers and mixtures thereof

HTS no. Existing rule Proposed rule Probable effect advice

3102.10–

3105.90

2. A change to subheadings 

3102.10 through 3102.80 from 

any other subheading, 

including another subheading 

within that group.

3. (A) A change to calcium 

cyanamide of subheading 

3102.90 from any other good 

of subheading 3102.90 or any 

other subheading; or

(B) A change to any other good 

of subheading 3102.90 from 

calcium cyanamide of 

subheading 3102.90 or any 

other subheading.

4. A change to subheading 

3103.10 from any other 

subheading.

5. (A) A change to basic slag of 

subheading 3103.90 from any 

other good of subheading 

3103.90 or any other

subheading; or

(B) A change to any other good 

of subheading 3103.90 from 

basic slag of subheading 

3103.90 or any other

subheading.

6. A change to subheadings 

3104.20 through 3104.30 from 

any other subheading, 

including another subheading 

within that group.

7. (A) A change to carnallite, 

sylvite or other crude natural 

potassium salts of subheading 

3104.90 from any other good 

of subheading 3104.90 or any 

other subheading; or

(B) A change to any other good 

of subheading 3104.90 from 

carnallite, sylvite or other crude 

natural potassium salts of

subheading 3104.90 or any 

other subheading.

8. A change to subheadings 

3105.10 through 3105.90 from 

any other subheading, 

including another subheading 

within that group.

A change to a good of any of 

subheading 3102.10 through 

3105.90 from any other good 

within that subheading or any 

other subheading, including 

another subheading within 

that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None
3-144

TABLE 3.75: Modification and effect

Modification: The proposed rule covers a range of types of mineral or chemical fertilizers, some of which were 

affected by 2007 modifications in the HS. Subheadings 3102.70 (calcium cyanamide), 3103.20 (basic slag), and 

3104.10 (carnallite, sylvite, and other crude natural potassium salts) were deleted due to low volumes of trade, 

resulting in the reclassification of affected goods into other subheadings. The resulting updating of the 2002 NAFTA 

rules to ensure that prior origin treatment could continue made the NAFTA rules of origin complex for many of the 

subheadings within 3102.10 through 3105.90. The proposed rule would streamline these rules.

The current NAFTA rule allows the major nitrogenous fertilizer materials (subheadings 3102.10 through 3102.80) 

made from a non-originating material from a different subheading, including another type of nitrogenous fertilizer, to 

receive the preferential rate of duty. The same origin principle similarly applies to the major phosphatic fertilizer 

materials (subheadings 3105.10 through 3105.90), allowing mixtures of covered fertilizers to be originating. The 

current NAFTA rule allows carnallite, sylvite, or other crude natural potassium salts of subheading 3104.90 to receive 

the preferential rate of duty if they are made using non-originating inputs of subheading 3104.90 or of any other 

subheading. Similarly, other goods of subheading 3104.90 can receive the preferential rate if they are made using 

non-originating carnallite, sylvite, or other crude natural potassium salts of subheading 3104.90 or non-originating 

inputs of any other subheading.

The proposed rule is liberalizing because it would confer origin on any covered good made from non-originating 

inputs from within the same subheading or any other subheading.

Effect: U.S. Imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these fertilizer products would not be affected by the proposed rule change.
3-145

TABLES FOR HTS CHAPTER 32

TABLE 3.76 Tanning or dyeing extracts; dyes, pigments, paints, varnishes, putty and mastics

HTS no. Existing rule Proposed rule Probable effect advice

Chapter 32

chapter 

notes 

There are no chapter notes. Note 3 of this Chapter confers 

origin to a good of any heading 

or subheading of this Chapter, 

except as otherwise specified in 

that note. 

Notwithstanding Note 1, a good 

is an originating good if it meets 

the applicable change of tariff 

classification and, if applicable, 

satisfies the applicable value 

content requirement specified in 

the rules of origin of this 

Chapter. 

Chemical Reaction

A good of this Chapter that 

results from a chemical reaction 

in the territory of one or more of 

the Parties shall be treated as 

an originating good. For 

purposes of this Note, a 

“chemical reaction” is a process 

(including a biochemical 

process) which results in a 

molecule with a new structure 

by breaking intramolecular 

bonds and by forming new 

intramolecular bonds, or by 

altering the spatial arrangement 

of atoms in a molecule. The 

following are not considered to 

be chemical reactions for 

purposes of this definition: 

(a) dissolving in water or other 

solvents; 

(b) the elimination of solvents 

including solvent water; or 

(c) the addition or elimination of 

water of crystallization. 

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.76: Modification and effect

Modification: There are currently no chapter notes for chapter 32. The current rules for goods classified in chapter 

32 confer origin on individual products and groups of products based on tariff shifts or tariff shifts combined with a 

regional value requirement. Proposed Note 2 would continue to allow origin to be conferred based on these individual 

rules contained in the chapter. Notes 1 and 3 would allow a covered chemical reaction occurring within one of the 

NAFTA partners to confer origin to a good as an alternative to the existing rules for the individual subheadings.

The proposed modification is liberalizing to the extent that products within the chapter could be created through a 

chemical reaction. The notes allow any products that undergo specified chemical reactions to be treated as 

originating goods, without regard to whether any product or its inputs changes tariff classification as a result of the

processing.
3-146

TABLE 3.76: Modification and effect—Continued

Effect: The proposed modification would likely have a negligible effect on U.S. imports from NAFTA partners and on 

total U.S. imports. In 2012, only 5 percent of U.S. imports from Canada and Mexico under chapter 32 were dutiable, 

and dutiable imports from NAFTA partners accounted for only 1 percent of total U.S. imports in chapter 32. The

effective tariff on U.S. imports from NAFTA partners for chapter 32 was less than 0.5 percent ad valorem in 2012. 

NTR rates of duty for products classified in chapter 32 range from free to 6.5 percent ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports to NAFTA partners and on total U.S. 

exports. Canada’s MFN rates of duty for chapter 32 range from free to 6.5 percent ad valorem. Mexico’s MFN rates of 

duty range from free to 13 percent ad valorem. Based on actual duties collected for Canada and estimated duties 

collected for Mexico, the effective tariff on all U.S. exports to NAFTA partners of goods covered by this rule was 1.0 

percent ad valorem in 2012.

1 U.S. exports to NAFTA partners accounted for 39 percent of total U.S. exports of these 

products in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Commission estimate based on Mexico’s dutiable imports under heading 3206 from the United States and total U.S. 

Mexican imports from the United States for headings 3201–3205 and 3207–3215. The effective tariff will be lower to the extent 

that Mexican imports under headings 3201–3205 and 3207–3215 currently qualify for the NAFTA preferential rate of duty. 

Commission estimate based on U.S. export data from USITC DataWeb/USDOC, Canadian import data from Statistics Canada, 

International Trade Division, and Mexican import data from Mexican International Trade Integral Information System (SIICEX) 

and Global Trade Atlas.
3-147

CHAPTER 32

TABLE 3.77 Tanning substances and coloring matter of vegetable or animal origin

HTS no. Existing rule Proposed rule Probable effect advice

3201.10–

3203.00

1. A change to subheadings 

3201.10 through 3202.90 from 

any other heading, including 

another subheading within that

group.

2. A change to heading 3203 

from any other heading.

A change to subheading 

3201.10 through 3203.00 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.77: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rules. There are no 

international subheadings under heading 3203. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rules.
3-148

CHAPTER 32

TABLE 3.78 Synthetic organic dyes and pigments, and preparations based thereon

HTS no. Existing rule Proposed rule Probable effect advice

3204.11–

3204.17

3. A change to subheadings 

3204.11 through 3204.16 from 

any other subheading, including 

another subheading within that 

group.

4. (A) For any color, as defined 

under the Color Index, identified 

in the following list of colors, a 

change to subheading 3204.17 

from any other subheading:

Pigment yellow: 1, 3, 16, 55, 61, 

62, 65, 73, 74, 75, 81, 97, 120, 

151, 152, 154, 156, and 175;

Pigment orange: 4, 5, 13, 34, 

36, 60, and 62;

Pigment red: 2, 3, 5, 12, 13, 14, 

17, 18, 19, 22, 23, 24, 31, 32, 

48, 49, 52, 53, 57, 63, 112, 119, 

133, 146, 170, 171, 175, 176, 

183, 185, 187, 188, 208, and 

210; or

(B) For any color, as defined 

under the Color Index, not 

identified in the list of colors:

(1) a change to subheading 

3204.17 from any other 

subheading, except from within 

chapter 29; or

(2) a change to subheading 

3204.17 from any subheading 

within chapter 29, whether or 

not there is also a change from 

any other subheading, provided 

there is a regional value content 

of not less than:

(I) 60 percent where the 

transaction value method is 

used, or

(II) 50 percent where the net 

cost method is used.

A change to subheadings

3204.11 through 3204.17 from 

any other subheading, including

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-149

TABLE 3.78: Modification and effect—Continued

Modification: The proposed modification does not substantively change the rule of origin for goods of subheadings 

3204.11 through 3204.16.

The current NAFTA rule includes a regional value content requirement that applies to many, but not all, pigments and 

preparations based thereon (subheading 3204.17), when using non-originating inputs classified within chapter 29. 

Goods of this subheading may also be produced from non-originating inputs from chapters other than chapter 29. 

The goods of subheading 3204.17 that are excluded from this regional value content requirement are listed in 

subdivision (A). For these enumerated goods, the current NAFTA rule allows any subheading-level tariff change to 

confer origin.

The proposed modification is liberalizing because it would allow any subheading-level tariff change to confer origin for 

all goods of subheading 3204.17 and remove the regional value content requirements.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The proposed modification would substantively change the rules only for subheading 3204.17. In 2012, 

the effective tariff on U.S. imports from NAFTA partners was 1.3 percent ad valorem based on estimated duties 

collected for U.S. imports from NAFTA partners under subheading 3204.17 and U.S. imports from NAFTA partners of 

all products covered by the proposed rule (subheadings 3204.11–3204.17). However, there could be a significant 

increase in U.S. imports from NAFTA partners of goods classified in subheading 3204.17. U.S. imports from NAFTA 

partners under this subheading accounted for 74 percent of total U.S. imports of all products covered by proposed 

modification (subheadings 3204.11 through 3204.17). NTR rates of duty for tariff items under subheading 3204.17 

range from free to 6.5 percent ad valorem and in 2012, one-third of U.S. imports under this subheading were dutiable. 

The proposed modification would likely have a negligible effect on total U.S. imports of goods classified in 

subheading 3204.17 and on all goods covered by the rule (subheadings 3204.11–3204.17). U.S. imports from 

NAFTA partners accounted for 9 percent of both total U.S. imports under subheading 3204.17 and total U.S. imports 

of all goods covered by the rule.

The proposed modification would likely result in a negligible effect on U.S. exports to NAFTA partners. The MFN 

rates of duty for goods covered by subheading 3204.17 range from free to 2 percent ad valorem in Canada and free 

to 9 percent ad valorem in Mexico. Based on the actual value of duties collected on U.S. exports to Canada under 

subheading 3204.17 and assuming that MFN rates applied to all U.S. exports to Mexico under the same subheading, 

the effective tariff on U.S. exports to NAFTA partners of goods covered by the rule was 1 percent ad valorem in 

2012.

1 U.S. exports of all goods covered by the rule to NAFTA countries accounted for 30 percent of all U.S. exports 

of the subject products. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. In addition, all U.S. trade of the subject products with NAFTA partners in 2012 was equivalent to only 

about 2 percent of domestic production of the products. 

 1 The effect on total exports under subheading 3204.17 would also likely be negligible. Based on the actual value of duties 

collected on U.S. exports to Canada under subheading 3204.17 and assuming that MFN rates applied to all U.S. exports to 

Mexico under the same subheading, the effective tariff on U.S. exports to NAFTA partners under subheading 3204.17 was 1.3 

percent ad valorem in 2012.
3-150

CHAPTER 32

TABLE 3.79 Solvent dyes and preparations based thereon

HTS no. Existing rule Proposed rule Probable effect advice

3204.19 5. (A) A change to subheading 

3204.19 from any other 

heading; or

(B) A change to subheading 

3204.19 from any other 

subheading within heading 

3204, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3204.19 from any other 

heading; or 

A change to subheading 

3204.19 from any other 

subheading within heading 

32.04, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.79: Modification and effect

Modification: The proposed rule would make no substantive changes to the current NAFTA rules. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rules are substantively the same as the current NAFTA rules.
3-151

CHAPTER 32

TABLE 3.80 Fluorescent brightening agents and luminophores

HTS no. Existing rule Proposed rule Probable effect advice

3204.20–

3204.90

6. (A) A change to subheadings 

3204.20 through 3204.90 from 

any other chapter, except from 

chapter 28 through 38; or

(B) A change to subheadings 

3204.20 through 3204.90 from 

any other subheading within 

chapter 28 through 38, including 

another subheading within that 

group, whether or not there is 

also a change from any other 

chapter, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3204.20 through 3204.90 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: Substantial

increase

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.80: Modification and effect

Modification: The proposed rule covers synthetic organic products that can be used as fluorescent brightening 

agents, which absorb ultraviolet rays and give off visible blue radiations and thereby make white articles appear more 

intensely white. It also covers products used as luminophores, to produce a luminescent effect under the action of 

light rays, and other miscellaneous products of heading 3204. 

The current NAFTA rule allows fluorescent brightening agents and luminophores made from non-originating inputs 

classified in chapters 28 through 38 to receive the preferential rate of duty provided that the final good meets the 

regional value content requirement. If the regional value content requirement is not met, the inputs from chapters 28 

through 38 must be made in North America. Non-originating inputs from chapters other than 28 through 38 can be 

used without the final good needing to meet a regional value requirement. 

The proposed modification is liberalizing because it would allow any subheading-level tariff change to confer origin 

and remove the regional value content requirement. 

Effect: The proposed modification would likely result in a substantial increase in U.S. imports from NAFTA partners, 

which totaled $2.6 million in 2012. NTR rates of duty for products covered by the proposed rule range from free to 6.5 

percent ad valorem. The effective tariff on U.S. imports from NAFTA partners was 6 percent ad valorem in 2012. 

The proposed modification would likely have a negligible effect on total U.S. imports. U.S. imports from NAFTA 

partners accounted for a small share (3 percent) of total U.S. imports covered by the proposed rule in 2012, and 

some of the increase from NAFTA partners will likely displace imports from non-NAFTA countries. The effective tariff 

for total U.S. imports was less than 0.5 percent ad valorem in 2012.
3-152

TABLE 3.80: Modification and effect—Continued

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The MFN rates of duty for these goods to Canada are free, and for Mexico they range from free to 9 percent 

ad valorem. If MFN rates of duty are applied to U.S. exports of goods covered by this rule to the NAFTA partners, the 

effective tariff on all such exports would be about 0.6 percent ad valorem.

1 U.S. exports to NAFTA partners

accounted for 29 percent of all U.S. exports of the subject products in 2012.

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. In addition, total U.S. imports of the subject products from NAFTA partners in 2012 were equivalent to less 

than 0.5 percent of U.S. production of the products. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-153

CHAPTER 32

TABLE 3.81 Color lakes

HTS no. Existing rule Proposed rule Probable effect advice

3205 7. A change to heading 3205 

from any other heading.

A change to heading 32.05 from 

any other heading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.81: Modification and effect

Modification: The proposed rule would make no substantive changes to the current NAFTA rule. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-154

CHAPTER 32

TABLE 3.82 Certain coloring matter and preparations based thereon

HTS no. Existing rule Proposed rule Probable effect advice

3206.11–

3206.42

8. (A) A change to subheadings 

3206.11 through 3206.42 from 

any other chapter, except from 

chapters 28 through 31 or 33 

through 38; or

(B) A change to subheadings 

3206.11 through 3206.42 from 

any other subheading within 

chapters 28 through 38,

including another subheading 

within that group, whether or not 

there is also a change from any 

other chapter, provided there is 

a regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3206.11 through 3206.42 from 

any other heading; or 

A change to subheading 

3206.11 through 3206.42 from 

any other subheading within 

heading 32.06, whether or not 

there is also a change from any 

other heading, provided there is 

a regional value content of not 

less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.82: Modification and effect

Modification: The proposed rule covers coloring matter and preparations based on titanium dioxide, chromium 

compounds, ultramarine, and zinc sulfide. The current NAFTA rule allows goods of these subheadings to be made 

from non-originating inputs from any other chapter, except from chapters 28 through 31 or 33 through 38, to receive 

the preferential rate of duty. The current rule also allows for changes to subheadings 3206.11 through 3206.42 from 

any other subheading of chapters 28 through 38 provided a regional value content requirement is met. If the final 

good does not meet the regional value content requirement, the inputs of chapters 28 through 38 must be made in 

North America.

The proposed modification is liberalizing because it would allow any heading-level tariff change to confer origin and 

remove the regional value content requirement when non-originating inputs of chapters 28 through 38, except those 

of heading 3206, are used to make the final good. The rule would remain the same for the use of non-originating 

inputs from any other subheading within heading 3206, and the final good would still have to meet the regional value 

content requirement to receive the preferential rate of duty.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Most U.S. imports of these goods from Canada and Mexico already enter free of duty under NAFTA. 

The effective tariff on U.S. imports of the goods from NAFTA partners was less than 0.5 percent ad valorem in 2012.

U.S. imports from NAFTA partners accounted for 49 percent of total U.S. imports of the subject products in 2012.

The proposed modifications would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Using the actual duties paid on U.S. exports to Canada and estimated duties on U.S. exports to Mexico, the 

effective tariff on U.S. exports of these goods to NAFTA partners in 2012 was less than 0.5 percent ad valorem.1

About 99 percent of U.S. exports to NAFTA partners that are covered by the proposed rule are titanium dioxide 

pigments. Canada has two tariff items covering titanium dioxide pigments with MFN rates of duty of free and 

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from the Mexican International Trade Integral Information System (SIICEX).
TABLE 3.82: Modification and effect—Continued

6 percent ad valorem; in 2012, over 75 percent of U.S. exports to Canada were under the tariff item that is free of 

duty.

2 Mexico’s MFN rate is 9 percent on titanium dioxide pigments; however, 99 percent of Mexican imports entered 

free under NAFTA in 2012. The effects of the proposed modifications could be further reduced by the opening of a 

200,000 metric ton-per-year production facility in Mexico in 2014, which would likely reduce U.S. exports of titanium 

dioxide pigments to Mexico. 

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. All U.S. exports of the subject products to NAFTA partners in 2012 amounted to about 8 percent of U.S. 

production. 

2 Commission estimate based on Canadian import data from Global Trade Atlas.

3-155

 
3-156

CHAPTER 32

TABLE 3.83 Inorganic products of a kind used as luminophores

HTS no. Existing rule Proposed rule Probable effect advice

3206.50 8B. (A) A change to subheading 

3206.50 from any other chapter, 

except from chapters 28 through 

31 or 33 through 38; or

(B) A change to subheading 

3206.50 from any other 

subheading within chapters 28 

through 38, whether or not there 

is also a change from any other 

chapter, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3206.50 from any other 

heading; or 

A change to subheading 

3206.50 from any other 

subheading within heading 

32.06, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used

U.S. trade under NAFTA:

 Imports: Substantial

increase

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.83: Modification and effect

Modification: The proposed rule covers products which, under the action of visible or invisible radiations (such as 

those from the sun or from X-rays), produce luminescent effects. Some of the products are metal salts, while others 

are mixtures of various materials, including radioactive substances, and none of these products is required to be a 

chemically defined compound. The current NAFTA rule allows goods of these subheadings to be made from nonoriginating inputs from any other chapter, except from chapters 28 through 31 or 33 through 38, and receive the 

preferential rate of duty. The current rule also allows for changes to subheading 3206.50 from any other subheading 

of chapters 28 through 38, provided a regional value content requirement is met. If the final good does not meet the 

regional value content requirement, the inputs of chapters 28 through 38 must be made in North America for the final 

good to receive the preferential rate of duty.

The proposed modification is liberalizing because it would allow any heading-level tariff change to confer origin and 

would remove the regional value content requirement when non-originating inputs of chapters 28 through 38, except 

those of heading 3206, are used to make the final good. The rule would remain the same for the use of nonoriginating inputs from any other subheading within heading 3206, and the final good would still have to meet the 

regional value content requirement to receive the preferential rate of duty.

Effect: The proposed modification could result in a substantial increase in U.S. imports from NAFTA partners, albeit 

from a small base. U.S. imports from NAFTA partners totaled only $70,219 in 2012. The effective tariff on U.S. 

imports of these goods from NAFTA partners was 6.3 percent ad valorem. The NTR rate of duty for U.S. imports of 

products under this subheading is 6.5 percent ad valorem. The proposed modification would likely have a negligible 

effect on total U.S. imports. U.S. imports of these goods from NAFTA partners account for a small share of total U.S. 

imports of these goods (less than 0.5 percent in 2012). The effective tariff on total U.S. imports was less than 0.5 

percent ad valorem in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rate of duty is free for the covered products. In Mexico, one tariff item has a duty rate of 5 

percent ad valorem and accounts for most of U.S. exports of these goods to Mexico; the remaining two Mexican tariff 

items are free of duty on an MFN basis. Based on estimated duties collected for Mexico, the estimated effective tariff 

on U.S. exports of the subject products to NAFTA partners was less than 0.5 percent in 2012.1 U.S. exports to 

NAFTA partners accounted for 12 percent of total U.S. exports of the subject products.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from the 

Mexican International Trade Integral Information System (SIICEX).
TABLE 3.83: Modification and effect—Continued

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. Also, U.S. imports of the subject products from NAFTA partners in 2012 amounted to less than 1 percent 

of U.S. production. 

3-157
3-158

TABLE FOR HTS CHAPTER 33

TABLE 3.84 Beauty or make-up preparations and preparations for use on the hair

HTS no. Existing rule Proposed rule Probable effect advice

3304.10–

3305.90

9. (A) A change to subheadings 

3304.10 through 3305.90 from 

any heading outside that group, 

except from headings 3306 

through 3307; or

(B) A change to subheadings 

3304.10 through 3305.90 from 

any other subheading within that 

group or headings 3306 through 

3307, whether or not there is 

also a change from any heading 

outside that group, provided 

there is a regional value content 

of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3304.10 through 3305.90 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Significant 

increase1

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.84: Modification and effect

Modification: The current NAFTA rule allows beauty or make-up preparations (heading 3304) or preparations for use 

on the hair (heading 3305) to receive the preferential rate of duty if they are made from non-originating inputs from 

any other heading, except for headings 3304 through 3307. The current rule also allows the goods of headings 3304 

and 3305 to receive the preferential rate of duty if they are made using non-originating inputs of any other subheading 

within headings 3304 through 3307, provided the regional value content requirement is met. If the final good does not 

meet the regional value content requirement, the inputs of headings 3304 through 3307 must be made in North 

America for the good to receive the preferential rate of duty.

The proposed modification is liberalizing because it would allow any subheading-level tariff change to confer origin

and remove the regional value content requirement.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. 

The proposed modification could potentially result in a significant increase in U.S. exports to NAFTA partners, which 

totaled $1.4 billion in 2012. Mexico has nine tariff items covered by the rule with MFN rates of duty of 10 percent ad 

valorem, and has one with a rate of duty of 15 percent ad valorem. Canada has eight tariff items covered by the rule 

with MFN rates of duty of 6.5 percent ad valorem, and one that is free of duty. Using the actual duties paid on U.S. 

exports to Canada and assuming the MFN rates apply to U.S. exports to Mexico, the estimated effective tariff on U.S. 

exports of these goods to NAFTA partners was 2.2 percent ad valorem in 2012.

2

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all U.S. 

exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent that 

U.S. exports to Mexico currently receive the NAFTA preferential rate of duty. 2 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas.
3-159

TABLE 3.84: Modification and effect—Continued

The proposed modification would likely have a negligible effect on total U.S. exports. U.S. exports to NAFTA partners 

accounted for 30 percent of total U.S. exports in 2012, resulting in an estimated effective tariff on total U.S. exports of

0.6 percent ad valorem.3

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. Additionally, total U.S. exports of the subject products to NAFTA partners in 2012 amounted to only about 

3 percent of the value of domestic production. 

 3 Commission estimate based on U.S. export data from USITC DataWeb/USDOC; Canadian import data from Statistics 

Canada, International Trade Division; and Mexican import data from Mexican International Trade Integral Information System 

(SIICEX).
3-160

TABLES FOR HTS CHAPTER 34

TABLE 3.85 Organic surface active agents and lubricating preparations

HTS no. Existing rule Proposed rule Probable effect advice

3402.11–

3403.99

2. (A) A change to 

subheadings 3402.11 through 

3402.12 from any other 

heading, except to linear 

alkylbenzene sulfonic acid or 

linear alkylbenzene sulfonates 

of subheading 3402.11 from 

linear alkylbenzene of 

heading 3817; or

(B) A change to subheadings 

3402.11 through 3402.12 

from any other subheading, 

including another subheading 

within heading 3402,whether 

or not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less than:

(1) 65 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

3. A change to subheading 

3402.13 from any other 

subheading.

4. (A) A change to 

subheading 3402.19 from any 

other heading; or

(B) A change to subheading 

3402.19 from any other

subheading within heading 

3402, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 65 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

5. (A) A change to 

subheadings 3402.20 through 

3402.90 from any subheading 

outside that group, except 

from subheading 3401.30; or

A change to subheading 3402.11 

through 3403.99 from any other

subheading, including another 

subheading within that group; or

No required change in tariff 

classification-to any of subheading 

3402.11 through 3403.99, 

provided there is a regional value 

content of not less than:

(a) 60 percent where the 

transaction value method is used, 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
CHAPTER 34

TABLE 3.85—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to subheadings 

3402.20 through 3402.90 

from any other subheading 

within that group or from 

subheading 3401.30, whether 

or not there is also a change 

from any subheading outside 

that group, provided there is a 

regional value content of not 

less than:

(1) 65 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

6. A change to subheadings 

3403.11 through 3403.99 

from any other subheading, 

including another subheading 

within that group.

TABLE 3.85: Modification and effect

Modification: The proposed modification covers surface-active agents and preparations, such as laundry detergent 

and other cleaning preparations, whether or not put up for retail sale, and lubricating preparations. Inputs used to 

make these products are typically classified in chapters 28 through 38.

The current NAFTA rule of origin includes regional value content requirements when certain organic surface-active 

agents, other than soaps (heading 3402) and lubricating preparations (heading 3403) are made using non-originating 

inputs of other subheadings within the same heading as the final product. Alternative rules allow finished goods to 

use non-originating inputs from other headings. Other subheadings within 3402.11 through 3403.99 are covered by 

subheading-level tariff changes without regional value content requirements. Finally, linear alkylbenzene sulfonic acid 

or linear alkylbenzene sulfonates (tariff item 3402.11.20) cannot receive the preferential rate of duty if they are made 

using non-originating linear alkylbenzene of heading 3817.

The proposed modification is liberalizing because it would remove the product exclusions and regional value content 

requirements for heading- or subheading-level tariff changes. The proposed modification would also allow products 

made from non-originating inputs classified in the same subheading to receive the preferential rate of duty provided 

that the final product meets a regional value content requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Dutiable imports accounted for 1 percent of total imports of these goods from NAFTA partners in 2012. 

The effective tariff on U.S. imports of the covered products from NAFTA partners was less than 0.5 percent ad 

valorem in 2012. U.S. NTR rates of duty on these goods range from free to 6.5 percent ad valorem.

3-161
3-162

TABLE 3.85: Modification and effect—Continued

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on U.S. total 

exports. MFN rates of duty on these goods for Canada range from free to 6.5 percent ad valorem; MFN rates of duty 

for Mexico range from free to 13 percent ad valorem. Based on actual duties collected for Canada and estimated 

duties collected for Mexico, the effective tariff on U.S. exports of these goods to NAFTA partners was 0.6 percent ad 

valorem in 2012.

1 U.S. exports to NAFTA partners accounted for 41 percent of total U.S. exports of the covered 

products in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to 

negligible.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX).
3-163

CHAPTER 34

TABLE 3.86 Artificial and prepared waxes of poly(oxyethylene)

HTS no. Existing rule Proposed rule Probable effect advice

3404.20 7. A change to subheading 

3404.20 from any other 

subheading.

A change to subheading 3404.20

from any other subheading; or

No required change in tariff 

classification to subheading 

3404.20, provided there is a 

regional value content of not less 

than:

(a) 60 percent where the 

transaction value method is used, 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.86: Modification and effect

Modification: According to the HS Explanatory Notes, the products of heading 3404 are a range of substances that 

are not separate chemically defined compounds but which do meet a range of criteria such as shine, consistency, 

and viscosity. They may be chemically produced organic products or products obtained by mixing two or more 

different animal waxes or having a basis of one or more waxes while containing fats, resins, mineral substances, or 

other materials. Unmixed animal or vegetable waxes (heading 1521) or mixed or unmixed mineral waxes (heading 

2712) are not included. The subheading 3404.20 covers waxes predominantly of poly(oxyethylene). The current 

NAFTA rule allows any subheading-level tariff change to confer origin, so non-originating inputs classified in 

subheading 3404.90 or outside heading 3404 can be used in production.

The proposed modification is liberalizing because it would allow artificial and prepared waxes of poly(oxyethylene) 

(subheading 3404.20) made from non-originating inputs classified in the same subheading (3404.20) to receive the 

preferential rate of duty, provided that the final product meets a regional value content requirement.

Effect: The proposed modification would have no effect on U.S. imports from NAFTA partners or on total U.S. 

imports because the covered products are free of duty on an NTR basis.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S.

exports. Canada has one tariff item covered by the rule with an MFN rate of duty of 6.5 percent ad valorem and one 

tariff item that is free of duty. For Mexico, these products are covered by one tariff line, which has an MFN rate of duty 

of 10 percent ad valorem. Based on actual duties collected for Canada and estimated duties collected for Mexico, the 

effective tariff on U.S. exports of these goods to NAFTA partners was less than 0.5 percent ad valorem in 2012.

1 U.S. 

exports to NAFTA partners accounted for 8 percent of total U.S. exports of the covered products in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX).
3-164

CHAPTER 34

TABLE 3.87 Other artificial and prepared waxes

HTS no. Existing rule Proposed rule Probable effect advice

3404.90 7A. (A) A change to artificial 

waxes or prepared waxes of 

chemically modified lignite of 

subheading 3404.90 from any 

other good of subheading 

3404.90 or any other 

subheading; or

(B) A change to any other 

good of subheading 3404.90 

from artificial waxes or 

prepared waxes of chemically 

modified lignite of subheading 

3404.90 or any other 

subheading.

A change to a good of subheading 

3404.90 from any other good

within that subheading or any 

other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.87: Modification and effect

Modification: Prior to 2007, waxes of chemically modified lignite were provided for in subheading 3404.10, but that 

subheading was deleted and this product was reclassified into subheading 3404.90 (specifically into tariff item 

3404.90.51). The NAFTA rules of origin were modified to allow previously recognized tariff changes to continue to 

confer origin. The current NAFTA rule allows any subheading-level tariff change to confer origin. Additionally, a 

change to waxes of chemically modified lignite from any non-originating other good of subheading 3404.90 or a 

change to any other good of subheading 3404.90 from non-originating waxes of chemically modified lignite would 

confer origin.

The proposed rule is liberalizing because it would allow all products of subheading 3404.90 made from nonoriginating inputs classified in the same subheading to receive the preferential rate of duty.

Effect: The proposed modification would have no effect on U.S. imports under NAFTA or on total U.S. imports 

because the covered products are free of duty on an NTR basis.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. MFN rates of duty on these products for Canada range from free to 6.5 percent ad valorem; MFN rates of 

duty for Mexico range from free to 9 percent ad valorem. Based on actual duties collected for Canada and estimated 

duties collected for Mexico, the effective tariff rate for U.S. exports of these goods to NAFTA partners was less than 

0.5 percent ad valorem in 2012.

1 U.S. exports to NAFTA partners accounted for 24 percent of total U.S. exports of 

the covered products in 2012.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX).
3-165

TABLE FOR HTS CHAPTER 35

TABLE 3.88 Prepared glues and other prepared adhesives

HTS no. Existing rule Proposed rule Probable effect advice

3506.10–

3506.99

6. (A) A change to subheadings 

3506.10 through 3506.99 from 

any other heading; or

(B) A change to subheadings 

3506.10 through 3506.99 from 

any other subheading within 

heading 3506, whether or not 

there is also a change from any 

other heading, provided there is 

a regional value content of not 

less than:

(1) 65 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3506.10 through 3506.99 from 

any other subheading, including 

another subheading within that 

group; or 

No required change in tariff 

classification to subheading 

3506.10 through 3506.99, 

provided there is a regional 

value content of not less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.88: Modification and effect

Modification: The current NAFTA rule allows a heading-level tariff change to confer origin. Additionally, the current 

rule allows any good of subheadings 3506.10 through 3506.99 made from a non-originating good of any other 

subheading within 3506 to receive the preferential rate of duty, provided the regional value content requirement is 

met.

The proposed rule is liberalizing because it would allow any subheading-level tariff shift to confer origin. The 

proposed modification also removes any requirement for a tariff shift, provided that the regional value content 

requirement is met. In addition, the regional value content requirement where the transaction value method is used is

reduced from 65 percent to 60 percent. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Most imports of the subject products from NAFTA partners already enter free of duty. The United States 

imported about $575 million worth of the covered products from Canada and Mexico in 2012. The effective tariff on 

U.S. imports of all goods covered by the proposed rule from NAFTA partners was less than 0.5 percent ad valorem in 

2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico has 10 tariff items covered by the rule with MFN rates of duty ranging from 9 to 13 percent ad 

valorem. Canada has 3 tariff items covered by the rule with MFN rates of duty of 6.5 percent ad valorem, and 1 tariff 

item that is free of duty. Based on actual duties collected for Canada and estimated duties collected for Mexico, the 

effective tariff on U.S. exports of these goods to NAFTA partners was 1 percent ad valorem in 2012.

1 U.S. exports to 

NAFTA partners accounted for 45 percent of total U.S. exports of the covered products in 2012.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. U.S. exports of the covered products to NAFTA partners in 2012 amounted to only about 5 percent of 

domestic production of the subject goods.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from the Mexican International Trade Integral Information System (SIICEX).
3-166

TABLES FOR HTS CHAPTER 37

TABLE 3.89 Unexposed photographic plates and film

HTS no. Existing rule Proposed rule Probable effect advice

3701–3702 1. A change to headings 3701 

through 3703 from any other 

chapter.

A change to heading 37.01 

through 37.02 from any 

heading outside that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.89: Modification and effect

Modification: To confer origin, the current rule requires that non-originating inputs to unexposed photographic plates 

and unexposed film—such as gelatin (heading 3503), silver (heading 2843.21 or 7106), or unsensitized plastic film 

(heading 3920)—come from a chapter other than chapter 37. The proposed modification is liberalizing because it 

would allow the use of inputs to photographic film from any heading other than heading 3701 or 3702.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Imports from NAFTA countries accounted for only 11 percent of total U.S. imports of the goods under 

these subheadings, and 66 percent of such imports entered free of duty in 2012. The United States imported goods 

from Mexico and Canada under three subheadings with NTR tariffs. In 2012, the effective tariff on all U.S. imports 

from NAFTA partners of goods covered by this rule was less than 0.5 percent ad valorem. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico has 5 tariff items with MFN rates of duty of 10 percent ad valorem, and 17 tariff items with an MFN 

rate of duty of 5 percent ad valorem, with the remaining tariff items being free of duty. Canada has 20 tariff items with 

an MFN rate of duty of 6.5 percent ad valorem; the remaining tariff items are free of duty on an MFN basis. Canadian 

trade data indicate that most U.S. exports of the subject goods to Canada in 2012 either qualified as originating under 

NAFTA or were free of duty on an MFN basis. Using the actual duties paid on U.S. exports to Canada and assuming 

the MFN rates apply to U.S. exports to Mexico, the effective tariff on U.S. exports to NAFTA partners was less than 

0.5 percent ad valorem in 2012.

1 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas. 
3-167

CHAPTER 37

TABLE 3.90 Sensitized but unexposed photographic paper, paperboard and textiles; exposed but not developed 

photographic plates, film, paper, paperboard, and textiles; exposed photographic plates, film, and motion-picture film

HTS no. Existing rule Proposed rule Probable effect advice

3703–3706 1. A change to headings 3701 

through 3703 from any other 

chapter.

2. A change to heading 3704 

from any other heading.

3. A change to headings 3705 

through 3706 from any heading 

outside that group.

A change to heading 37.03 

through 37.06 from any other 

heading, including another 

heading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.90: Modification and effect

Modification: To confer origin, the current rule covering heading 3703 requires that inputs to photographic paper, 

paperboard, and textiles (principally paper classified under numerous headings in chapter 48) come from a chapter 

other than chapter 37. The proposed modification is liberalizing to the extent that chemical preparations of heading 

3707 are used as inputs for sensitized paper of heading 3703.

The current rule for goods of heading 3704—exposed but not developed film—allows inputs to come from any 

heading other than heading 3704. Under this rule, for example, non-originating unexposed film of heading 3702 could 

be exposed in a NAFTA partner—a heading-level change that could confer origin. The proposed rule would make no 

substantive change to the current rule of origin for heading 3704.

The current rule for headings 3705 through 3706 requires non-originating inputs to be classified in other headings. 

That is, a change from heading 3705 (photographic plates and film, exposed and developed, other than motionpicture film) to heading 3706 (motion-picture film), or vice versa, would not confer NAFTA origin. The proposed rule 

for headings 3705 through 3706 is liberalizing in principle because it would allow a change from heading 3705 to 

3706, or vice versa, to confer origin. However, it is unlikely that the modification will have any practical significance,

because it is generally not technologically feasible to convert goods between headings 3705 and 3706. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. As noted above, the effect of the rule modification will be limited to U.S. exports under heading 3703. 

However, U.S. imports from NAFTA partners under heading 3703 accounted for only 2 percent of U.S. imports from 

NAFTA partners of all products covered by rule (headings 3703–3706). The effective tariff on U.S. imports from 

NAFTA partners under heading 3703 was less than 0.5 percent ad valorem in 2012. Most U.S. imports under heading 

3703 (98 percent) already entered under NAFTA preferences in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty on goods that could be affected by the proposed modification (heading 3703)

range from free to 6.5 percent ad valorem, while Mexico’s MFN rates of duty range from free to 10 percent ad 

valorem. Using the actual duties paid on U.S. exports to Canada and assuming the MFN rates apply to U.S. exports 

to Mexico, the estimated effective tariff on U.S. exports to NAFTA partners for heading 3703 was less than 0.5

percent ad valorem in 2012.

1 For all products covered by the proposed modification, U.S. exports to NAFTA partners 

accounted for 12 percent of total U.S. exports in 2012.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas.
3-168

CHAPTER 37

TABLE 3.91 Chemical preparations for photographic uses

HTS no. Existing rule Proposed rule Probable effect advice

3707.10–

3707.90

4. (A) A change to subheadings 

3707.10 through 3707.90 from 

any other chapter; or

(B) A change to subheadings 

3707.10 through 3707.90 from 

any other subheading within 

chapter 37, including another

subheading within that group, 

whether or not there is also a 

change from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 65 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

3707.10 through 3707.90 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.91: Modification and effect

Modification: The current NAFTA rule allows chemical preparations for photographic uses (subheadings 3707.10 

through 3707.90) made from non-originating inputs of any other chapter to receive the preferential rate of duty. The 

current rule also allows chemical preparations for photographic uses made from non-originating inputs of any other 

subheading within chapter 37 to receive the preferential rate of duty, provided that the preparations meet the regional 

value content requirement. 

The proposed modification is liberalizing because it would remove the regional value content requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Most imports of the subject products from NAFTA partners already enter the United States free of duty. 

The effective tariff on U.S. imports from NAFTA partners of the products covered by the proposed rule was less than 

0.5 percent ad valorem in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexican products covered by the rule are free of duty on an MFN basis, and Mexico receives more than 

75 percent of U.S. exports of the products affected by the proposed modification. Canada has two tariff items covered 

by the rule with MFN rates of duty of 6.5 percent ad valorem, and one with an MFN rate of duty of free. Using the 

actual duties paid on U.S. exports to Canada, and given that U.S. exports of these goods to Mexico are free on an 

MFN basis, the effective tariff on U.S. exports to NAFTA partners in 2012 was less than 0.5 percent ad valorem. U.S. 

exports to NAFTA countries accounted for about 18 percent of total U.S. exports of the subject products in 2012.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-169

TABLES FOR HTS CHAPTER 38

TABLE 3.92 Chapter notes

HTS no. Existing rule Proposed rule Probable effect advice

Chapter 38

Miscellaneous 

chemical 

products

There are no chapter notes. Note 1: Note 3 of this Chapter 

confers origin to a good of 

any heading or subheading of 

this Chapter.

Note 2: Notwithstanding Note 

1, a good is an originating 

good if it meets the applicable 

change of tariff classification 

and, if applicable, satisfies the 

applicable value content 

requirement specified in the 

rules of origin of this Chapter. 

Note 3: Chemical Reaction 

A good of this Chapter that 

results from a chemical 

reaction in the territory of one 

or more of the Parties shall be 

treated as an originating 

good. 

For purposes of this Note, a 

“chemical reaction” is a 

process (including a 

biochemical process) which 

results in a molecule with a 

new structure by breaking 

intramolecular bonds and by 

forming new intramolecular 

bonds, or by altering the 

spatial arrangement of atoms 

in a molecule.

The following are not 

considered to be chemical 

reactions for purposes of this 

definition: 

(a) dissolving in water or other 

solvents; 

(b) the elimination of solvents 

including solvent water; or 

(c) the addition or elimination 

of water of crystallization. 

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-170

TABLE 3.92: Modification and effect

Modification: There are currently no chapter notes for chapter 38. The current rules for goods in chapter 38 confer 

origin on individual and groups of products based on tariff shift changes or tariff shift changes combined with a 

regional value requirement. Proposed note 2 would continue to allow origin to be conferred based on these individual 

rules contained in the chapter. 

Proposed notes 1 and 3 would allow a chemical reaction occurring within one of the NAFTA partners to confer origin 

to a good as an alternative to the existing rules for the individual subheadings. The addition of the chemical reaction 

rule would be liberalizing to the extent that products within the chapter could be created through a chemical reaction. 

However, this chapter, unlike many of the chemical chapters, mainly covers mixtures and other products that are not 

created through a chemical reaction. 

Effect: The addition of the proposed chapter notes would likely have a negligible effect on U.S. imports under NAFTA 

and on total U.S. imports. Most of the products in this chapter are mixtures, and the chemical reaction rule would 

likely apply to only a few products and tariff items. NTR rates of duty on goods covered by this chapter range from 

free to 6.5 percent ad valorem. About 60 percent of U.S. imports from Canada and Mexico under chapter 38 entered

free of duty under NAFTA in 2012. The effective tariff for U.S. imports from Canada and Mexico for chapter 38 was 

less than 0.5 percent ad valorem in 2012. U.S. imports from NAFTA partners represented about 70 percent of total 

U.S. imports under this chapter. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. MFN rates of duty on the covered goods in Canada and Mexico range from free to 15.5 percent ad valorem. 

Using the actual duties paid on U.S. exports to Canada and assuming the MFN rates apply to U.S. exports to Mexico, 

the effective tariff for U.S. exports of these products to NAFTA partners in 2012 was 2.4 percent ad valorem.1

However, as noted above, the proposed modification would likely apply to only a few products and tariff items within 

chapter 38, so the effect on U.S. exports for the chapter as whole would likely be negligible. U.S. exports to NAFTA 

partners accounted for 25 percent of total U.S. exports of such products in 2012. 

The proposed chapter notes would likely have a negligible effect on U.S. production because the net effect on total 

U.S. trade is expected to be negligible. 

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas.
3-171

CHAPTER 38

TABLE 3.93 Certain chemical mixtures including mixed alkylbenezenes, compounds doped for use in electronics, 

and hydraulic brake fluids

HTS no. Existing rule Proposed rule Probable effect advice

3817–3819 19. A change to headings 3817 

through 3819 from any other 

heading, including another 

heading within that group.

A change to heading 38.17 

through 38.19 from any other 

heading, including another 

heading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.93: Modification and effect

Modification: The proposed rule covers mixed alkylbenzenes and mixed alkylnaphthalenes, other than those of 

heading 2707 or 2902; chemical elements and compounds doped for use in electronics; and hydraulic brake fluids 

and other prepared liquids for hydraulic transmission. 

The proposed rule would make no substantive changes to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-172

CHAPTER 38

TABLE 3.94 Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or 

allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included

HTS no. Existing rule Proposed rule Probable effect advice

3824.10–

3824.83

27. A change to subheading 

3824.10 from any other 

subheading.

28. (A) A change to 

subheading 3824.30 from any 

other subheading, except from 

heading 2849; or

(B) A change to subheading 

3824.30 from heading 2849, 

whether or not there is also a 

change from any other 

subheading, provided there is 

a regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

29. A change to subheadings 

3824.40 through 3824.60 from 

any other subheading, 

including another subheading 

within that group.

30. (A) A change to 

subheading 3824.71 from any 

other chapter, except from 

chapters 28 through 37;

(B) A change to mixtures 

containing acyclic 

hydrocarbons perhalogenated 

only with fluorine and chlorine 

of subheading 3824.71 from 

any other good of subheading 

3824.71 or any other 

subheading within chapters 28 

through 38, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

A change to subheading 

3824.10 through 3824.83 

from any other subheading, 

including another subheading 

within that group; or

No required change in tariff 

classification to any of 

subheading 3824.10 through 

3824.83, provided there is a 

regional value content of not 

less than:

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-173

CHAPTER 38

TABLE 3.94—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(C) A change to any other 

good of subheading 3824.71 

from mixtures containing 

acyclic hydrocarbons 

perhalogenated only with 

fluorine and chlorine of 

subheading 3824.71 or any 

other subheading within 

chapters 28 through 38, 

whether or not there is also a 

change from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

30A. (A) A change to 

subheading 3824.72 from any 

other chapter, except from 

chapters 28 through 37;

(B) A change to mixtures 

containing perhalogenated 

derivatives of acyclic 

hydrocarbons containing two or 

more different halogens of 

subheading 3824.72 from any 

other good of subheading 

3824.72 or any other 

subheading within chapters 28 

through 38, except from 

mixtures containing 

perhalogenated derivatives of 

acyclic hydrocarbons 

containing two or more 

different halogens of 

subheadings 3824.73, 3824.77 

or 3824.79, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or
3-174

CHAPTER 38

TABLE 3.94—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(C) A change to any other 

good of subheading 3824.72 

from mixtures containing 

perhalogenated derivatives of 

acyclic hydrocarbons 

containing two or more 

different halogens of 

subheading 3824.72 or any 

other subheading within 

chapters 28 through 38, 

whether or not there is also a 

change from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

30B. (A) A change to 

subheading 3824.73 from any 

other chapter, except from 

chapters 28 through 37;

(B) A change to mixtures 

containing perhalogenated 

derivatives of acyclic 

hydrocarbons containing two or 

more different halogens of 

subheading 3824.73 from any 

other good of subheading 

3824.73 or any other 

subheading within chapters 28 

through 38, except from 

mixtures containing 

perhalogenated derivatives of 

acyclic hydrocarbons 

containing two or more 

different halogens of 

subheadings 3824.72, 3824.77 

or 3824.79, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

2) 50 percent where the net 

cost method is used; or
3-175

CHAPTER 38

TABLE 3.94—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(C) A change to any other 

good of subheading 3824.73 

from mixtures containing 

perhalogenated derivatives of 

acyclic hydrocarbons 

containing two or more 

different halogens of 

subheading 3824.73 or any 

other subheading within 

chapters 28 through 38, 

whether or not there is also a 

change from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

30C. (A) A change to 

subheading 3824.74 from any 

other chapter, except from 

chapters 28 through 37; or 

(B) A change to subheading 

3824.74 from any other 

subheading within chapters 28 

through 38, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

30D. (A) A change to 

subheadings 3824.75 through 

3824.76 from any other 

chapter, except from chapters 

28 through 37; or
3-176

CHAPTER 38

TABLE 3.94—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to subheadings 

3824.75 through 3824.76 from 

any other subheading within 

chapters 28 through 38 outside 

that group, except from 

subheading 3824.78, whether 

or not there is also a change 

from any other chapter, 

provided there is a regional 

value content of not less than:

1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

30E. (A) A change to 

subheading 3824.77 from any 

other chapter, except from 

chapters 28 through 37;

(B) A change to mixtures 

containing perhalogenated

derivatives of acyclic 

hydrocarbons containing two or 

more different halogens of 

subheading 3824.77 from any 

other good of subheading 

3824.77 or any other 

subheading within chapters 28 

through 38, except from 

mixtures containing 

perhalogenated derivatives of 

acyclic hydrocarbons 

containing two or more 

different halogens of 

subheadings 3824.72, 3824.73 

or 3824.79, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or
3-177

CHAPTER 38

TABLE 3.94—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(C) A change to any other 

good of subheading 3824.77 

from mixtures containing 

perhalogenated derivatives of 

acyclic hydrocarbons 

containing two or more 

different halogens of 

subheading 3824.77 or any 

other subheading within 

chapters 28 through 38, 

whether or not there is also a 

change from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

30F. (A) A change to 

subheading 3824.78 from any 

other chapter, except from 

chapters 28 through 37; or

(B) A change to subheading 

3824.78 from any other 

subheading within chapters 28 

through 38, except from 

subheadings 3824.75 through 

3824.76, whether or not there 

is also a change from any 

other chapter, provided there is 

a regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

30G. (A) A change to 

subheading 3824.79 from any 

other chapter, except from 

chapters 28 through 37;
3-178

CHAPTER 38

TABLE 3.94—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to mixtures 

containing perhalogenated

derivatives of acyclic 

hydrocarbons containing two or 

more different halogens of 

subheading 3824.79 from any 

other good of subheading 

3824.79 or any other 

subheading within chapters 28 

through 38, except from 

mixtures containing 

perhalogenated derivatives of 

acyclic hydrocarbons 

containing two or more 

different halogens of 

subheadings 3824.72, 3824.73 

or 3824.77, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

(C) A change to any other 

good of subheading 3824.79 

from mixtures containing 

perhalogenated derivatives of 

acyclic hydrocarbons 

containing two or more 

different halogens of 

subheading 3824.79 or any 

other subheading within 

chapters 28 through 38, 

whether or not there is also a 

change from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.
3-179

CHAPTER 38

TABLE 3.94—Continued

HTS no. Existing rule Proposed rule Probable effect advice

30H. (A) A change to 

subheadings 3824.81 through 

3824.83 from any other 

chapter, except from chapters 

28 through 37; or

(B) A change to subheadings 

3824.81 through 3824.83 from 

any other subheading within 

chapters 28 through 38 outside 

that group, except from 

subheading 3824.90, whether 

or not there is also a change

from any other chapter, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used

TABLE 3.94: Modification and effect

Modification: The proposed rule covers a wide variety of products, including mixtures of tungsten carbide with 

products such as vanadium carbide, chromium carbide, tantalum carbide, or titanium carbide. 

The WCO significantly restructured HS heading 3824 in 2007, as subheading 3824.20 was deleted and many new 

subheadings were created. The prior rules of origin were restructured as a result. The current NAFTA rules generally 

allow a good to qualify for NAFTA preferences if they are made from non-originating inputs classified in other 

chapters or, in some cases, from non-originating inputs classified in other subheadings, provided the finished goods 

meet the regional value content requirements.

The proposed modification is liberalizing because it would allow any subheading-level tariff change to confer origin, or 

alternatively, it would allow a good of subheading 3824.10 through 3824.83 made using non-originating goods of the 

same subheading to receive the preferential rate of duty provided that the final good meets the regional value content 

requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, 98 percent of U.S. imports of the subject products from NAFTA partners entered free of duty 

under NAFTA or were already free on an MFN basis. As a result, the effective tariff on U.S. imports from NAFTA 

partners was less than 0.5 percent ad valorem in 2012. U.S. imports from NAFTA partners represent 34 percent of 

total U.S. imports in 2012. 
3-180

TABLE 3.94: Modification and effect—Continued

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports of these products. Canada’s MFN rates of duty for the products covered by this rule are free. For Mexico, 

these products are covered by several tariff lines, most of which have an MFN rate of free, with a few rates as high as 

10 percent ad valorem. Mexico accounted for about one-half of total U.S. exports of these products to NAFTA 

partners in 2012. If MFN rates of duty are applied to U.S. exports to the NAFTA partners, the effective tariff on all U.S 

exports to NAFTA partners of goods covered by this rule was about 0.5 percent ad valorem in 2012.

1

 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-181

CHAPTER 38

TABLE 3.95 Chemical products and preparations of the chemical or allied industries (including those consisting of 

mixtures of natural products), not elsewhere specified or included

HTS no. Existing rule Proposed rule Probable effect advice

3824.90 30I. (A) A change to 

naphthenic acids, their waterinsoluble salts or their esters of 

subheading 3824.90 from any 

other good of subheading 

3824.90 or any other 

subheading;

(B) A change to any other good 

of subheading 3824.90 from 

any other chapter, except from 

chapters 28 through 37; or

(C) A change to any other 

good of subheading 3824.90 

from naphthenic acids, their 

water-insoluble salts or their

esters of subheading 3824.90, 

or any other subheading within 

chapters 28 through 38, except 

from subheadings 3824.71 

through 3824.83, whether or 

not there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to naphthenic acids, 

their water-insoluble salts, or 

their esters of subheading 

3824.90 from any other good 

within that subheading or any 

other subheading; 

A change to any other good of 

subheading 3824.90 from any 

other subheading; or 

No required change in tariff 

classification to any other 

good of subheading 3824.90, 

provided there is a regional 

value content of not less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Significant

increase1

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all 

U.S. exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent 

that U.S. exports to Mexico currently receive the NAFTA preferential rate of duty. 
3-182

TABLE 3.95: Modification and effect

Modification: The proposed modification does not substantively change the rule of origin for naphthenic acids, their 

water-insoluble salts, or their esters of subheading 3824.90. These products were reclassified into subheading 

3824.90 in 2007 when subheading 3824.20 was deleted from the HS.

For goods of subheading 3824.90 other than naphthenic acids, their water-insoluble salts, or their esters, the current 

NAFTA rule of origin allows such goods to be produced from non-originating materials from other chapters, other than 

chapters 28 through 37. When non-originating inputs of most subheadings of chapters 28 through 38 are used in 

producing the finished goods, a regional value content requirement applies. The current NAFTA rule does not allow a 

tariff change from subheadings 3824.71 through 3824.83 to goods of subheading 3824.90 other than naphthenic 

acids, their water-insoluble salts or their esters to confer origin. Many products in these excluded subheadings were 

classified in subheading 3824.90 prior to 2007, and the rules of origin in effect then did not allow tariff shifts between 

goods of subheading 3824.90.

A wide variety of products are covered by the proposed rule, including mixtures of two or more inorganic compounds. 

Such mixtures can be used as an example of how the proposed rule changes will affect other chemicals in this 

product grouping. Mixtures of two or more inorganic compounds are generally made using products from chapter 28. 

The current NAFTA rule allows these mixtures (subheading 3824.90) made from non-originating inorganic 

compounds (chapter 28) to receive the preferential rate of duty provided that the final good meets the regional value 

content requirement. When the regional value content rule is not met, the inputs of chapter 28 must be made in North 

America.

The proposed modification is liberalizing because it would allow any subheading-level tariff change to confer origin,

and it removes the regional value content requirement for subheading-level changes for inputs from excluded 

chapters. Additionally, the proposed rule would allow goods of subheading 3824.90 other than naphthenic acids, their 

water-insoluble salts, or their esters made using non-originating inputs of the same subheading to receive the NAFTA 

preferential rate of duty provided that the final goods meet the regional value content requirement. 

Effect: The proposed modification would have a negligible effect on U.S. imports under NAFTA and total 

U.S. imports. The effective tariff on U.S. imports of these goods from NAFTA partners was less than 0.5 percent ad 

valorem in 2012.2 U.S. imports of these goods from NAFTA partners accounted for 19 percent of total U.S. imports in 

2012. 

The proposed modification could potentially result in a significant increase in U.S. exports of these products to 

NAFTA partners, which totaled $1.2 billion in 2012. Canada’s MFN rates of duty for the tariff lines under this 6-digit 

subheading are free. For Mexico, these products are covered by several tariff lines, which have MFN rates of duty 

ranging from free to 9 percent ad valorem, with most of the rates at 5 or 6 percent ad valorem. Mexico accounts for 

about 46 percent of total U.S. exports of these products to its NAFTA partners. As noted above, the proposed 

modification does not substantively change the rule of origin for naphthenic acids, their water-insoluble salts, or their 

esters. If MFN rates of duty are applied to U.S. exports to Mexico of the products covered by the rule, except 

naphthenic acids, their water-insoluble salts, or their esters, the estimated effective tariff on all U.S exports to the 

NAFTA partners was 2.8 percent ad valorem in 2012.

3

The proposed modification would likely result in a negligible increase in total U.S. exports. The effective tariff on total 

U.S. exports of products affected by the rule was less than 1 percent ad valorem in 2012.4 U.S. exports to NAFTA 

partners accounted for 30 percent of total U.S. exports of the products covered in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Also, any expected change in U.S. exports of these goods to NAFTA partners is likely small compared with 

U.S. production.

 2 There were no U.S. imports from NAFTA partners of naphthenic acids, their water-insoluble salts, or their esters in 2012. 

As noted in the modification section, the proposed modification would not substantively change the current rule for these 

products. 3 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 4 Calculated based on estimated duties collected on U.S. exports to NAFTA partners of products substantively affected by 

the proposed modification divided by total U.S. exports of all products covered by the proposed modification.
3-183

TABLES FOR HTS CHAPTER 39

SECTION VII, CHAPTERS 39 and 40

TABLE 3.96 Section notes

HTS no. Existing rule Proposed rule Probable effect advice

Section VII,

chapters 39

and 40:

Plastics and 

articles 

thereof; 

rubber and 

articles 

thereof 

There are no section notes for 

HS section VII.

Note 1: Note 3 of this Section 

confers origin to a good of 

heading 39.01 through 39.13, 

subheading 4001.10 or 

heading 40.02 or 40.05.

Note 2: Notwithstanding Note 

1, a good is an originating 

good if it meets the applicable 

change of tariff classification 

and, if applicable, satisfies the 

applicable percentage by 

weight or value content 

requirement specified in the 

rules of origin of this Chapter.

Note 3: Chemical Reaction 

A good of heading 39.01 

through 39.13, subheading 

4001.10 or heading 40.02 or 

40.05 that is a product of a 

chemical reaction shall be 

treated as an originating good 

if the chemical reaction 

resulted in the chemical 

modification of the monomer 

units in the polymer 

components (or rubber 

polymer components, as the 

case may be) of the good and 

occurred in the territory of one 

or more of the Parties.

For purposes of this Note, a 

“chemical reaction” is a 

process (including a 

biochemical process) which 

results in a molecule with a 

new structure by breaking 

intramolecular bonds and by 

forming new intramolecular 

bonds. 

The following are not 

considered to be chemical 

reactions for purposes of this 

definition: 

(a) dissolving in water or other 

solvents; 

(b) the elimination of solvents 

including solvent water; or 

(c) the addition or elimination 

of water of crystallization.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible 

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible
3-184

TABLE 3.96: Modification and effect

Modification: Section VII of the HS (Plastics and Articles Thereof; Rubber and Articles Thereof) includes chapters 39 

and 40 which, in turn, cover various polymers, plastics resins and forms, and articles thereof and natural and 

synthetic rubber, its formed intermediates (such as rubber sheets), and articles thereof, respectively.

No “chemical reaction” rule currently applies to any headings in these chapters, and there are currently no section 

notes (rules) for HTS section VII. Goods in chapters 39 and 40 are now treated as originating goods if they comply 

with rules applicable to the tariff provision in which they are classified. Proposed Note 2 would continue to allow origin 

to be conferred based on these individual product specific rules. 

Notes 1 and 3 would allow a defined chemical reaction occurring within one or more of the NAFTA partners to confer 

origin to goods in particular headings in these chapters only—namely, headings 3901–3913, subheading 4001.10, 

heading 4002, and heading 4005. This standard would serve as an alternative to the existing rules for the individual 

headings. The addition of the chemical reaction rule would be liberalizing to the extent that products within the 

chapters could be created through a specified chemical reaction. For example, under the proposed chemical reaction 

rule, polyethylene (subheadings 3901.10 and 3901.20) could be made through a chemical reaction turning ethylene 

(subheading 2901.21) into a polymer, without showing that a heading level change plus regional value content 

requirements had been met. Goods classified in other headings in these two chapters would still be considered 

originating only if they comply with the rules applicable to their tariff provision.

Effect: The addition of the proposed section notes would likely have a negligible effect on U.S. imports of these 

products under NAFTA and on total U.S. imports. In 2012, 90 percent of U.S. imports under chapters 39 and 40 from 

Canada and Mexico entered free under NAFTA. As noted above, the section notes apply to only selected headings 

and subheadings in chapters 39 and 40 (headings 3901–3913, subheading 4001.10, heading 4002, and heading 

4005). The effective tariff on U.S. imports of the subject products from Canada and Mexico in 2012 was less than 0.5 

percent ad valorem. 

The addition of the proposed section notes would also likely have a negligible effect on U.S. exports under NAFTA 

and on total U.S. trade. As noted above, the section notes apply to only selected headings and subheadings in 

chapters 39 and 40 (headings 3901–3913, subheading 4001.10, heading 4002, and heading 4005). Canada’s MFN 

duties ranged from free to 3 percent ad valorem for these products, and Mexico’s MFN rates ranged from free to 10 

percent ad valorem. Based on the actual value of duties collected on U.S. exports of the affected products to Canada,

and assuming that MFN rates applied to all U.S. exports of the affected products to Mexico, the effective tariff on U.S. 

exports to NAFTA partners was 1 percent ad valorem in 2012. U.S. exports under chapters 39 and 40 to NAFTA 

partners accounted for about 45 percent of total U.S. exports of such products in 2012. 

The addition of the proposed section notes would likely have a negligible effect on U.S. production because the net 

effect on total U.S. trade is expected to be negligible.
3-185

CHAPTER 39

TABLE 3.97 Polymers in primary forms; plastic resins; silicones; cellulose

HTS no. Existing rule Proposed rule Probable effect advice

3901–3914 1. A change to headings 3901 

through 3920 from any other 

heading, including another 

heading within that group, 

provided there is a regional 

value content of not less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to heading 39.01 

through 39.14 from any other 

heading, including another 

heading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Significant 

increase1

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.97: Modification and effect

Modification: The proposed rule covers a wide variety of plastic resins, including polyethylene, polypropylene, 

polystyrene, poly(vinyl chloride), polyesters, and other synthetic and natural polymers. The headings also include 

polymers, silicones, and cellulose in primary forms.

The current NAFTA rule allows a good of a heading within 3901 through 3914 made from a non-originating good of a 

different heading, including another heading within that group, to receive the preferential rate of duty provided that it 

meets the regional value content requirement. Under such a rule, goods in two different headings within the covered 

group (3901 through 3914) could be combined to produce another good of these headings. 

The proposed modification is liberalizing because it would remove the regional value content requirement and would 

allow any heading-level change to confer origin. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports of these goods from NAFTA partners was less than 0.5 percent ad 

valorem in 2012. U.S. imports from NAFTA partners accounted for 43 percent of total U.S. imports of these goods in 

2012. NTR rates of duty on goods within these headings range from free to 6.5 percent ad valorem.

The proposed modification could potentially result in a significant increase in U.S. exports to NAFTA partners, which 

totaled $12.7 billion in 2012. MFN rates of duty in Canada range from free to 3 percent ad valorem. MFN rates of duty 

in Mexico range from free to 10 percent ad valorem. Using the actual duties paid on U.S. exports to Canada and 

assuming the MFN rates apply to U.S. exports to Mexico, the estimated effective tariff on U.S. exports to NAFTA 

partners was 2.5 percent ad valorem in 2012.

2

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all U.S. 

exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent that 

U.S. exports to Mexico currently receive the NAFTA preferential rate of duty. 2 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas.
3-186

TABLE 3.97: Modification and effect—Continued

The proposed modification would likely have a negligible effect on total U.S. exports. U.S. exports to NAFTA partners 

accounted for 39 percent of total U.S. exports of the covered products in 2012, resulting in an estimated effective 

tariff on total U.S. exports of 0.9 percent ad valorem.

3

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Also, any expected change in U.S. exports to NAFTA partners is likely small compared with U.S. 

production.

 3 Commission estimate based on U.S. export data from USITC DataWeb/USDOC; Canadian import data from Statistics 

Canada, International Trade Division; and Mexican import data from Global Trade Atlas.
3-187

CHAPTER 39

TABLE 3.98 Waste plastics and certain plastic products

HTS no. Existing rule Proposed rule Probable effect advice

3915–3919 1. A change to headings 3901 

through 3920 from any other 

heading, including another 

heading within that group, 

provided there is a regional 

value content of not less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to heading 39.15 

through 39.19 from any other 

heading, including another 

heading within that group, 

provided there is a regional 

value content of not less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.98: Modification and effect

Modification: The proposed rule covers the following articles of plastics: waste and scrap; monofilament, rods, 

sticks, and profile shapes; tubes, pipes, hoses, and fittings; floor coverings; wall or ceiling coverings; and selfadhesive plates, sheets, film, foil, tape, strip, and other flat shapes. 

The proposed rule would make no substantive changes to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-188

CHAPTER 39

TABLE 3.99 Other plates, sheets, film, foil, and strip of polymers of ethylene and of polymers of propylene

HTS no. Existing rule Proposed rule Probable effect advice

3920.10–

3920.20

1. A change to headings 3901 

through 3920 from any other 

heading, including another 

heading within that group, 

provided there is a regional 

value content of not less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 

3920.10 through 3920.20 

from any other heading, 

provided there is a regional 

value content of not less than:

(a) 60 percent where the 

transaction value method is 

used, or

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.99 Modification and effect

Modification: The proposed rule would make no substantive changes to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-189

CHAPTER 39

TABLE 3.100 Other plates, sheets, film, foil and strip of polymers of styrene, of polymers of vinyl chloride, and of 

acrylic polymers

HTS no. Existing rule Proposed rule Probable effect advice

3920.30–

3920.51

1. A change to headings 3901 

through 3920 from any other 

heading, including another 

heading within that group, 

provided there is a regional 

value content of not less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 

3920.30 through 3920.51 

from any other heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.100: Modification and effect

Modification: The current NAFTA rule allows certain plates, sheets, film, foil, and strips of polystryrene, poly(vinyl 

chloride), or acrylic polymers (subheadings 3920.30 through 3920.51) made from a non-originating good of any other 

heading to receive the preferential rate of duty provided that it meets the regional value content requirement. 

The proposed modification is liberalizing because it would remove the regional value content requirement. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports from NAFTA partners and 

total U.S. imports. In 2012, dutiable imports accounted for only 1 percent of imports from NAFTA partners in 2012,

and the effective tariff on U.S. imports of these goods from NAFTA partners was less than 0.5 percent ad valorem. 

U.S. NTR rates of duty range from 3.1 to 6.5 percent ad valorem.

The proposed modification would have no effect on U.S. exports under NAFTA or on total U.S. exports because U.S. 

exports of these goods to Canada and Mexico are free of duty on an MFN basis.

The effect on U.S. production would likely be negligible because the effect on total U.S. trade is expected to be 

negligible. Eastman Chemical Company, a domestic producer of specialty chemicals, expressed support for the 

proposed modifications, particularly those that eliminate regional value content requirements for subheadings 

3919.90 through 3921.90.1

 1 Eastman Chemical Company, written submission to the USITC, June 4, 2013, 1. See appendix D.
3-190

CHAPTER 39

TABLE 3.101 Other plates, sheets, film, foil and strip, of plastics

HTS no. Existing rule Proposed rule Probable effect advice

3920.59–

3920.99

1. A change to headings 3901 

through 3920 from any other 

heading, including another 

heading within that group, 

provided there is a regional 

value content of not less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 

3920.59 through 3920.99

from any other heading, 

provided there is a regional 

value content of not less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.101: Modification and effect

Modification: The proposed rule would make no substantive changes to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-191

CHAPTER 39

TABLE 3.102 Cellular plates, sheets, film, foil and strip, of polymers of styrene or vinyl chloride

HTS no. Existing rule Proposed rule Probable effect advice

3921.11–

3921.12

2. A change to subheadings 

3921.11 through 3921.13 from 

any other heading, provided 

there is a regional value 

content of not less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 

3921.11 through 3921.12 

from any other heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.102: Modification and effect

Modification: The proposed rule covers cellular plates, sheets, and other products formed from polymers of either 

styrene or vinyl chloride. The current NAFTA rule allows such products (subheading 3921.11 through 3921.12) made 

from non-originating resins (polymers of styrene, heading 3903, or vinyl chloride, subheadings 3904.10 through 

3904.22) to receive the preferential rate of duty provided that they meet the regional value content requirement. 

When the regional value content requirement is not met, the resin must be made in North America.

The proposed modification is liberalizing because it would remove the regional value content requirement. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The NTR rates of duty specific to the subheadings covered by this rule range from 4.2 to 6.5 percent ad 

valorem. In 2012, the effective tariff was less than 0.5 percent ad valorem; about 98 percent of U.S. imports of these 

goods from NAFTA partners entered the United States free of duty. The value of U.S. imports from Canada and 

Mexico accounted for about 21 percent of total U.S. imports of these products. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports of such products. U.S. exports of these products to NAFTA partners were divided roughly evenly between 

Canada and Mexico. The Canadian MFN rates of duty on these goods range from 1 to 2 percent ad valorem. 

Although the Mexican MFN rates of duty ranged from free to 10 percent ad valorem, about 85 percent of these U.S. 

exports to Mexico entered under tariff items that were free of duty on an MFN basis in 2012.1 U.S. exports to NAFTA 

partners accounted for about 80 percent of total U.S. exports for the subject products. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Eastman Chemical Company, a domestic producer of specialty chemicals, expressed support for the 

proposed modifications, particularly those that eliminate regional value content requirements for subheadings 

3919.90 through 3921.90.2

 1 Commission estimate based on Mexican import data obtained from Global Trade Atlas.

2 Eastman Chemical Company, written submission to the USITC, June 4, 2013, 1. See appendix D.
3-192

CHAPTER 39

TABLE 3.103 Cellular plates, sheets, film, foil and strip, of polyurethane

HTS no. Existing rule Proposed rule Probable effect advice

3921.13 2. A change to subheadings 

3921.11 through 3921.13 from 

any other heading, provided 

there is a regional value 

content of not less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 

3921.13 from any other 

heading, provided there is a 

regional value content of not 

less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.103: Modification and effect

Modification: The proposed rule would make no substantive changes to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-193

TABLES FOR HTS CHAPTER 40

TABLE 3.104 Natural and synthetic rubber in primary forms or in plates, sheets, or strip

HTS no. Existing rule Proposed rule Probable effect advice

4001.10–

4002.99 

1. (A) A change to headings 

4001 through 4006 from any 

other chapter; or

(B) A change to headings 4001 

through 4006 from any other 

heading within chapter 40, 

including another heading 

within that group, whether or 

not there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

4001.10 through 4002.99 

from any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.104: Modification and effect

Modification: The current NAFTA rules allow natural and synthetic rubber in primary forms or in plates, sheets, or 

strip (subheadings 4001.10 through 4002.99) made from non-originating goods from any other chapter to receive the 

preferential rate of duty. For example, synthetic rubber sheets could be made from non-originating chemicals from 

other chapters. Natural and synthetic rubber in primary forms made using non-originating goods of any other heading 

within chapter 40 can receive the preferential rate of duty, provided that the regional value content requirement is 

met.

The proposed modification is liberalizing because it allows any subheading-level tariff change to confer origin and 

removes the regional value content requirement.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. 

The proposed modifications would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The MFN rate of duty imposed on these goods by Canada is free. The Mexican MFN rates of duty on these 

goods range from free to 10 percent ad valorem. In 2012, 87 percent of U.S. exports of the subject goods to Canada 

and Mexico were imported under tariff items that are free of duty on an MFN basis.1 If MFN rates of duty are applied 

to U.S. exports to NAFTA partners, the effective tariff on all U.S exports to NAFTA partners of goods covered by this 

rules was 1.1 percent ad valorem in 2012.

2

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 2 Ibid.
3-194

CHAPTER 40

TABLE 3.105 Reclaimed rubber and waste, parings, and scrap of rubber

HTS no. Existing rule Proposed rule Probable effect advice

4003–4004 1. (A) A change to headings 

4001 through 4006 from any 

other chapter; or

(B) A change to headings 4001 

through 4006 from any other 

heading within chapter 40, 

including another heading 

within that group, whether or 

not there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to heading 40.03 

through 40.04 from any other 

heading, including another 

heading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.105: Modification and effect

Modification: The current NAFTA rules allow reclaimed rubber (heading 4003) and waste rubber (heading 4004)

made from non-originating goods from any other chapter to receive the preferential rate of duty. Reclaimed rubber 

and waste rubber made using non-originating goods of any other heading in chapter 40 can receive the preferential 

rate of duty, provided that the regional value content requirement is met.

The proposed modification is liberalizing because it allows any heading-level tariff change to confer origin and it 

removes the regional value content requirement. There are no international subheadings under headings 4003 and 

4004.

Effect: The proposed modification would have no effect on U.S. imports from NAFTA partners or total U.S. imports 

because these goods are already free of duty for all NTR countries. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty are free for all goods covered by the proposed rule. Mexico’s MFN rates of duty 

range from free to 10 percent ad valorem. Using estimated duties paid on U.S. exports of the covered goods to 

Mexico and total U.S. exports of these goods to NAFTA partners, the effective tariff on U.S. exports of the goods to 

NAFTA partners in 2012 was less than 0.5 percent ad valorem.1 U.S. exports to NAFTA partners accounted for 29

percent of total U.S. exports of the covered products in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-195 

 CHAPTER 40 

TABLE 3.106 Compounded rubber and other forms and articles of unvulcanized rubber 

HTS no. Existing rule Proposed rule Probable effect advice 

4005–4006 1. (A) A change to headings 

4001 through 4006 from any 

other chapter; or 

(B) A change to headings 4001 

through 4006 from any other 

heading within chapter 40, 

including another heading 

within that group, whether or 

not there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

A change to heading 40.05 

through 40.06 from any other 

heading, including another 

heading within that group, 

except from heading 40.01; or 

A change to heading 40.05 

through 40.06 from heading 

40.01, whether or not there is 

also a change from any other 

heading, including another 

heading within that group, 

provided there is a regional 

value content of not less than: 

(a) 35 percent where the 

transaction value method is 

used, or 

(b) 25 percent where the net 

cost method is used. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.106: Modification and effect 

Modification: The current NAFTA rules allow compounded rubber (heading 4005) and unvulcanized rubber in other 

forms (heading 4006) made from non-originating goods from any other chapter to receive the preferential rate of duty. 

Compounded rubber and unvulcanized rubber in other forms made using non-originating inputs from any other 

heading in chapter 40 can also receive the preferential rate of duty, provided that the regional value content 

requirement is met. 

The proposed modification is liberalizing because it allows changes from any other headings except 4001 (natural 

rubber in primary forms) to confer origin and reduces the regional value content requirements, which apply only when 

non-originating inputs of heading 4001 are used. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, dutiable imports on the subject goods from NAFTA partners accounted for less than 1 percent 

of U.S. imports of the covered products from NAFTA partners in 2012. The effective tariff was less than 0.5 percent 

ad valorem in 2012. 

The proposed rule modification would likely have a negligible effect on U.S. exports to NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty are free for all subject goods, while Mexico’s MFN rates of duty range from free 

to 15 percent ad valorem. In 2012, more than 99 percent of U.S. exports of these goods to NAFTA partners were 

under tariff items that are free of duty on an MFN basis.1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 
3-196

CHAPTR 40

TABLE 3.107 Retreaded tires

HTS no. Existing rule Proposed rule Probable effect advice

4012.11–

4012.19

6. A change to subheadings 

4012.11 through 4012.19 from 

any subheading outside that 

group, except from tariff items

4012.20.15 or 4012.20.60.

A change to subheading 

4012.11 through 4012.19 

from any subheading outside 

that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.107: Modification and effect

Modification: The current NAFTA rule allows retreaded tires (subheadings 4012.11 through 4012.19) to receive the 

preferential rate of duty if they are made from a non-originating good of any subheading outside that group, excluding 

tariff items 4012.20.15 (used pneumatic tires of a kind used on agricultural equipment, including tractors, for onhighway transport of passengers or goods) or 4012.20.60 (used pneumatic tires for use on commercial vehicles, 

including tractors, for on-highway transport). The used tires of tariff items 4012.20.15 and 4012.20.60 are typically 

used to prepare base tire casings to which new tread is applied during the tire retreading or remanufacturing process.

Under the current rule, these used tires must originate in North America for the retreaded tires to receive the 

preferential rate of duty.

The proposed modification is liberalizing because it removes the exclusion for non-originating used tires (tariff item 

4012.20.15 or 4012.20.60), allowing a shift from any subheading outside 4012.11 through 4012.19 to confer origin. 

Under the proposed rule, retreaded tires made from non-originating used tires of tariff item 4012.20.15 or 4012.20.60 

could receive the preferential rate of duty (assuming that all other non-originating inputs are also classified outside 

subheadings 4012.11 through 4012.19).

Effect: The proposed modification is likely to have a negligible effect on U.S. imports under NAFTA and on total U.S. 

imports. The U.S. NTR rates of duty for the subheadings 4012.11 through 4012.19 range from free to 4 percent ad 

valorem. In 2012, dutiable imports from NAFTA partners accounted for only 3 percent of U.S. imports of the subject 

products from NAFTA partners, and the effective tariff was less than 0.5 percent ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN rates of duty are free for all goods covered by the proposed modification, while Mexico’s rate 

of duty is 15 percent ad valorem on all such goods. Using estimated duties paid on U.S. exports of these goods to 

Mexico and total U.S. exports to NAFTA partners, the effective tariff on U.S. exports of these goods to the NAFTA 

partners in 2012 was 0.9 percent ad valorem.1 U.S. exports to NAFTA partners accounted for 33 percent of total U.S. 

exports of the covered products in 2012. 

The effect on U.S. production would likely be negligible because the effect on total U.S. trade is expected to be 

negligible. Total U.S. exports account for only 1 percent of U.S. production of these goods.

2 Additionally, the fact that 

a tight supply of tire casings is required to meet retreaded tire demand in the United States is generally trade limiting.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 2 In 2011, domestic shipments of retreaded tires in the United States were valued at $1.2 billion, while shipments of 

retreaded tire exports were valued at $17 million. U.S. DOC, Bureau of the Census, Annual Survey of Manufactures, 2011.
3-197 

 CHAPTER 40 

TABLE 3.108 Used pneumatic tires, and other types of used or retreaded tires, solid or cushion; tire treads and tire 

flaps, of rubber

HTS no. Existing rule Proposed rule Probable effect advice 

4012.20–

4012.90 

7. A change to subheadings 

4012.20 through 4012.90 from 

any other heading, except from 

headings 4009 through 4017. 

A change to subheading 

4012.20 through 4012.90 

from any other heading. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.108: Modification and effect 

Modification: The current NAFTA rule allows used tires and other goods of subheadings 4012.20 through 4012.90 

made from a non-originating good of any other heading, except from headings 4009 through 4017, to receive the 

preferential rate of duty. Headings 4009 through 4017 cover, in addition to used tires, rubber items such as tubes, 

pipes, and hoses; conveyor and transmission belts; new tires; rubber gloves; and hard rubber. Inputs in headings 

4009–4017 must originate in North America in order for used tires of heading 4012 to qualify for NAFTA preferences. 

For example, non-originating new tires of heading 4011 cannot later be shipped to another NAFTA partner as 

originating goods under the current rule (unless such new tires are wholly made in the NAFTA region). 

The proposed modification is liberalizing because it removes the product exclusions, allowing any heading-level shift 

to confer origin. Under the proposed modification, a non-originating new tire of heading 4011 may be turned into a 

used tire and considered originating for the purposes of receiving duty-free treatment under NAFTA. It is unlikely, 

however, that the other products, such as tire treads and tire flaps, would use inputs currently excluded under the 

existing rule (rubber tubes, pipes and hose, transmission belts, new tires, rubber gloves, and hard rubber). 

Effect: The proposed modification is likely to have a negligible effect on U.S. imports from NAFTA and total U.S. 

imports. The products that would likely be most affected by the proposed modification, used pneumatic tires, are 

already free of duty on an NTR basis. Additionally, dutiable imports from NAFTA partners for subheadings 4012.20 

through 4012.90 accounted for less than 0.5 percent of U.S. imports of the subject products from NAFTA partners in 

2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico has a specific MFN duty on used tires of $2/tire for tariff item 4012.20.01; the ad valorem equivalent 

of this specific duty was 14.2 percent in 2012.1

 Other used tires exported to Mexico face a rate of duty of 15 percent 

ad valorem. MFN rates of duty for Canada range from free to 6.5 percent ad valorem. Based on actual duties 

collected for Canada and estimated duties collected for Mexico, the effective tariff on U.S. exports of the subject 

products to NAFTA partners was 0.6 percent ad valorem in 2012. 2 U.S. exports to NAFTA partners accounted for 69 

percent of total U.S. exports of the subject goods in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Additionally, the production of used tires is a by-product of other production and is not likely to be sensitive 

to tariff changes. 

 1

 Commission estimate based on Mexican import data obtained from Global Trade Atlas. 2

 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX).
3-198

CHAPTER 40

TABLE 3.109 Inner tubes for rubber tires; hygienic or pharmaceutical articles of rubber; and articles of apparel and 

clothing accessories of rubber

HTS no. Existing rule Proposed rule Probable effect advice

4013–4015 8. A change to headings 4013 

through 4015 from any other 

heading, except from headings 

4009 through 4017.

A change to heading 40.13 

through 40.15 from any other 

heading, including another 

heading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Significant 

increase

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.109: Modification and effect

Modification: The current NAFTA rule allows rubber inner tubes, rubber hygienic or pharmaceutical goods, and 

rubber apparel (headings 4013 through 4015) made from a non-originating good of any other heading, except from 

headings 4009 through 4017, to receive the preferential rate of duty. Headings 4009 through 4012, 4016, and 4017 

cover made-up rubber articles, such as tubes, pipes, and hoses; conveyor and transmission belts; and new and used 

tires, as well as hard rubber and articles thereof, among others.

The proposed modification is liberalizing because it removes the exclusion of headings 4009 through 4017, allowing 

any heading-level tariff change to confer origin.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, dutiable imports from NAFTA partners for goods of tariff headings 4013 through 4015 

accounted for only 1 percent of U.S. imports from NAFTA partners. The effective tariff on U.S. imports from NAFTA 

partners was less than 0.5 percent ad valorem in 2012.

The proposed modification could result in a significant increase in U.S. exports to NAFTA partners, which totaled 

$54.5 million in 2012. Canada’s MFN rates of duty on these goods range from free to 15.5 percent ad valorem, while 

Mexico’s MFN rates of duty range from free to 15 percent ad valorem. Based on actual duties collected for Canada 

and estimated duties collected for Mexico, the estimated effective tariff on U.S. exports of the subject products to 

NAFTA was 3.0 percent ad valorem in 2012.1

The proposed modification would likely have a negligible effect on total U.S. exports. U.S. exports to NAFTA partners 

accounted for only 17 percent of total U.S. exports of the covered products in 2012, resulting in an estimated effective 

tariff on total U.S. exports of 0.5 percent ad valorem.

2

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Also, any expected change in U.S. exports to NAFTA partners is likely small compared with U.S. 

production. 

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX). 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC; Canadian import data from Statistics 

Canada, International Trade Division; and Mexican import data from Mexican International Trade Integral Information System 

(SIICEX).
3-199

CHAPTER 40

TABLE 3.110 Miscellaneous articles of vulcanized rubber

HTS no. Existing rule Proposed rule1 Probable effect advice

4016.10–

4016.95

9. A change to subheadings 

4016.10 through 4016.92 from 

any other heading, except from 

headings 4009 through 4017.

10. A change to tariff item 

4016.93.10 from any other 

heading, except from tariff 

items 4008.19.20, 4008.19.60 

or 4008.29.20.

11. A change to subheading 

4016.93 from any other 

heading, except from headings 

4009 through 4017.

12. A change to subheadings 

4016.94 through 4016.95 from 

any other heading, except from 

headings 4009 through 4017.

A change to subheading 

4016.10 through 4016.95

from any other heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible 

 Exports: Negligible

U.S. production: Negligible

TABLE 3.110: Modification and effect

Modification: The proposed rule covers miscellaneous articles of vulcanized rubber, including cellular rubber; floor 

coverings and mats; erasers; gaskets, washers, seals, and O-rings; boat or dock fenders, and similar items.

The current NAFTA rules allow most goods classified in subheadings 4016.10 through 4016.95 to receive the 

preferential rate of duty if they are made from a non-originating good of any other heading, except for goods classified 

in headings 4009 through 4017 (made-up articles of rubber and hard rubber and articles thereof). The current rule for 

tariff item 4016.93.10 (gaskets, washers, and other seals used in automotive goods) allows non-originating inputs 

from any other heading, except for rubber profile shapes of tariff items 4008.19.20, 4008.19.60 or 4008.29.20.

The proposed modification is liberalizing because it removes all product exclusions and allows any heading-level tariff 

change to confer origin.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA partners and on 

total U.S. imports. Dutiable imports from NAFTA partners for goods of tariff subheadings 4016.10 through 4016.95 

accounted for only 4 percent of U.S. imports of the covered products from NAFTA partners in 2012. The effective 

tariff on imports of products covered by the rule from NAFTA partners was less than 0.5 percent ad valorem in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Eleven of Mexico’s 17 subject tariff items are free of duty on an MFN basis; the 11 tariff items with MFN 

duties accounted for only 7 percent of total U.S. export shipments to Mexico in 2012. Thirteen of Canada’s 19 

applicable tariff lines are subject to duties on an MFN basis, most at a rate of duty of 6.5 percent ad valorem. Based 

on the actual value of duties collected on U.S. exports to Canada and assuming that the MFN rates apply to all U.S. 

exports to Mexico, the effective tariff on U.S. exports of these goods to NAFTA partners was less than 0.5 percent ad 

valorem in 2012.

2

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

 1 Goods within this heading/subheading that are for use in motor vehicles of Chapter 87 may be subject to the net cost 

method of determining regional value content that is specific to certain automotive goods, as described in Article 403 of the

NAFTA and HTS general note 12(d). 2 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division.
3-200

CHAPTER 40

TABLE 3.111 Vibration control goods of a kind used in vehicles

HTS no. Existing rule Proposed rule1 Probable effect advice

4016.99.aa

[4016.99.30,

4016.99.55]

13. A change to tariff items 

4016.99.30 or 4016.99.55 from 

any other subheading, 

provided that there is a 

regional value content of not 

less than 50 percent under the 

net cost method.

A change to tariff item 

4016.99.aa [4016.99.30,

4016.99.55] from any other 

heading; or

A change to tariff item 

4016.99.aa [4016.99.30,

4016.99.55] from any other 

subheading, provided there is 

a regional value content of not 

less than 50 percent under 

the net cost method.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.111: Modification and effect:

Modification: The current NAFTA rule allows a motor vehicle vibration control good of vulcanized rubber classified in 

tariff items 4016.99.30 (of natural rubber) or 4016.99.55 (of rubber other than natural rubber) made from a nonoriginating good of any other subheading to receive the preferential rate of duty, provided that it meets the regional 

value content rule. This rule is specific to vibration control goods of a kind used in the vehicles of headings 8701 

through 8705.

The proposed modification is liberalizing because it removes the regional value content requirement for goods made 

from non-originating inputs classified in another heading (other than heading 4016). The proposed rule would make 

no substantive change for goods made with non-originating inputs classified in heading 4016. 

Effect: The proposed modification is likely to have a negligible effect on U.S. imports from NAFTA partners and on 

total U.S. imports because dutiable imports from NAFTA partners for tariff items 4016.99.30 and 4016.99.55 account 

for only a small share of U.S. imports of the covered products from NAFTA partners (10 percent in 2012The effective 

tariff on imports of these goods from NAFTA partners was less than 0.5 percent ad valorem in 2012.

The proposed modifications would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The MFN duty for the subject products in Mexico is free, and in Canada it is 6.5 percent ad valorem. In 2012, 

61 percent of U.S. exports of the subject products to Canada were free of duty under NAFTA, effectively reducing the 

effective tariff on U.S. exports to NAFTA partners to less than 0.5 percent ad valorem.2

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

Note: Tariff item 4016.99.aa represents an 8-digit tariff item that is not harmonized at the international level. The 

applicable 8-digit codes are as follows: Canada, 4016.99.30; Mexico, 4016.99.10; and the United States, 4016.99.30 

and 4016.99.55.

 1 Goods within this heading/subheading that are for use in motor vehicles of chapter 87 may be subject to the net cost 

method of determining regional value content that is specific to certain automotive goods, as described in Article 403 of the 

NAFTA and HTS general note 12(d). 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Canadian import data from Statistics 

Canada, International Trade Division.
3-201

CHAPTER 40

TABLE 3.112 Miscellaneous articles of vulcanized rubber

HTS no. Existing rule Proposed rule1 Probable effect advice

4016.99 14. A change to subheading 

4016.99 from any other 

heading, except from headings 

4009 through 4017.

A change to subheading 

4016.99 from any other 

heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.112: Modification and effect

Modification: The proposed rule covers miscellaneous made-up articles of vulcanized rubber, including containers, 

household items, hardware, pet toys, and mechanical articles for motor vehicles.

The current NAFTA rule allows a miscellaneous rubber article of subheading 4016.99 made from a non-originating 

input from any other heading, except headings 4009 through 4017, to receive the preferential rate of duty. Headings 

4009 through 4017 cover articles made of rubber, including tubes, pipes, and hoses; conveyor and transmission 

belts; new and used tires; rubber gloves; hard rubber and articles thereof; and other articles.

Vibration control goods used in vehicles (tariff items 4016.99.30 and 4016.99.55) within this subheading are covered 

by a separate proposed rule (see table 3.111).

The proposed modification is liberalizing because it removes the product exclusions, allowing any heading-level shift 

to confer origin.

Effect: The proposed modification is likely to have a negligible effect on U.S. imports from NAFTA partners and on 

total U.S. imports because dutiable imports from NAFTA partners for goods of tariff subheading 4016.99 account for 

only a small share of U.S. imports from NAFTA partners (10 percent in 2012) and total U.S. imports (2 percent in 

2012). The effective tariff on U.S. imports of the subject products from NAFTA partners was less than 0.5 percent ad 

valorem in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Only 2 of Mexico’s 12 tariff items for these products are dutiable on an MFN basis. While 4 of Canada’s 6 

tariff lines carry MFN rates of duty of 6.5 percent ad valorem, in 2012, 69 percent of U.S. exports to Canada entered 

free of duty under NAFTA.2 Based on actual duties collected for Canada and estimated duties collected for Mexico, 

the effective tariff on U.S. exports of the subject products to NAFTA was 0.7 percent ad valorem in 2012.3

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Goods within this heading/subheading that are for use in motor vehicles of Chapter 87 may be subject to the net cost 

method of determining regional value content that is specific to certain automotive goods, as described in Article 403 of the

NAFTA and HTS general note 12(d). 2 Commission estimate based on Mexican import data obtained from Global Trade Atlas.

3 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX).
3-202

CHAPTER 40

TABLE 3.113 Hard rubber and articles of hard rubber

HTS no. Existing rule Proposed rule Probable effect advice

4017 15. A change to heading 4017 

from any other heading, except 

from headings 4009 through 

4016.

A change to heading 40.17 

from any other heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.113: Modification and effect

Modification: The current NAFTA rule allows hard rubber and articles of hard rubber (heading 4017) made from a 

non-originating good of any other heading, except from headings 4009 through 4016, to receive the preferential rate 

of duty. Headings 4009 through 4016 cover articles made of rubber other than hard rubber, including tubes, pipes, 

and hoses; conveyor and transmission belts; new and used tires; rubber gloves; and other articles.

The proposed modification is liberalizing because it removes the product exclusions, allowing any heading-level tariff 

shift to confer origin. However, while in some cases it might be possible to make an article of hard rubber from rubber 

articles of the excluded headings (4009 through 4016), inputs for making hard rubber typically fall outside those 

headings.

Effect: The proposed modification would likely have a negligible effect on U.S. imports from NAFTA and total U.S. 

imports. In 2012, only 3 percent of U.S. imports of the subject products from NAFTA partners were dutiable in 2012. 

The NTR duty rates under heading 4017 range from free to 3.7 percent ad valorem. 

The proposed modification is likely to have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. In Canada, these products are covered by two tariff lines, with MFN duty rates of free and 6.5 percent ad 

valorem respectively. In Mexico, one tariff item has a MFN rate of duty of 5 percent ad valorem while the other tariff 

items are free of duty. Based on actual duties collected on Canadian imports of the subject goods, and if MFN rates 

of duty are applied to U.S. exports of subject products to Mexico, the effective tariff on U.S. exports to NAFTA 

partners was less than 0.5 percent ad valorem in 2012.

1 U.S. exports to NAFTA partners accounted for 70 percent of 

total U.S. exports of hard rubber goods in 2012.

The effect on U.S. production would likely be negligible because the net effect on total trade is expected to be 

negligible. 

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas.
3-203

TABLES FOR HTS CHAPTER 45

TABLE 3.114 Natural or waste cork, raw or simply prepared, crushed, granulated or ground cork

HTS no. Existing rule Proposed rule Probable effect advice

4501–

4502

Chapter 45. A change to 

headings 4501 through 4504 

from any other heading, 

including another heading 

within that group.

A change to heading 45.01 

through 45.02 from any other 

heading, including another 

heading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.114: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-204

CHAPTER 45

TABLE 3.115 Corks and stoppers

HTS no. Existing rule Proposed rule Probable effect advice

4503.10 Chapter 45. A change to 

headings 4501 through 4504 

from any other heading, 

including another heading 

within that group.

A change to a good of subheading 

4503.10 from any other good 

within that subheading or any 

other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.115: Modification and effect

Modification: The current NAFTA rule requires that one form of cork product be changed to another form of cork 

product (i.e., a change in heading) in the United States, Canada, or Mexico in order to be considered originating and 

thus qualify for NAFTA preferences. The proposed modification is liberalizing because it would allow corks and 

stoppers made of natural cork (classified in 4503.10) to be resized or otherwise modified from articles in any other 

subheading in the chapter. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production would not be affected by the proposed rule change.
3-205

CHAPTER 45

TABLE 3.116 Articles of natural cork, other than corks and stoppers

HTS no. Existing rule Proposed rule Probable effect advice

4503.90 Chapter 45. A change to 

headings 4501 through 4504 

from any other heading, 

including another heading 

within that group.

A change to subheading 4503.90 

from any other heading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.116: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-206

CHAPTER 45

TABLE 3.117 Natural or waste cork, raw or simply prepared

HTS no. Existing rule Proposed rule Probable effect advice

4504 Chapter 45. A change to 

headings 4501 through 4504 

from any other heading, 

including another heading 

within that group.

A change to heading 45.04 from 

any other heading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.117: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-207

TABLES FOR HTS CHAPTER 70

TABLE 3.118 Certain cast glass and rolled glass; certain drawn and blown glass; certain float glass and surface 

ground or polished glass; safety glass; and multiple-walled insulating units of glass

HTS no. Existing rule Proposed rule Probable effect advice

7003–

7008

2. A change to headings 7003 

through 7009 from any 

heading outside that group.

A change to heading 70.03 

through 70.08 from any heading 

outside that group, except from 

heading 70.09.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.118: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rules. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-208

CHAPTER 70

TABLE 3.119 Rear-view glass mirrors and unframed glass mirrors

HTS no. Existing rule Proposed rule Probable effect advice

7009.10–

7009.91

2. A change to headings 7003 

through 7009 from any 

heading outside that group.

A change to subheading 7009.10 

through 7009.91 from any other 

heading, except from heading 

70.03 through 70.08.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.119: Modification and effect

Modification: The proposed rule would make no substantive changes to the current rule for rear-view mirrors 

(subheading 7009.10) or unframed mirrors (subheading 7009.91).

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-209

CHAPTER 70

TABLE 3.120 Framed glass mirrors

HTS no. Existing rule Proposed rule Probable effect advice

7009.92 2. A change to headings 7003 

through 7009 from any other 

heading outside that group.

A change to subheading 7009.92 

from any other subheading

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.120: Modification and effect

Modification: The current rule for framed mirrors of subheading 7009.92 provides that non-originating inputs can be 

classified in any heading other than those for the basic forms of glass of headings 7003 through 7009. Under this 

rule, a non-originating frame, such as a wooden frame of heading 4414, can be used to make a framed mirror, but the 

glass used must be made in North America. 

The proposed modification is liberalizing because it would allow the production of framed mirrors of subheading 

7009.92 from non-originating inputs from any other subheading, including basic forms of glass and unframed glass 

mirrors classified in subheading 7009.91, to confer NAFTA origin. 

Effect: The proposed rule change would likely have a negligible effect on U.S. imports of framed mirrors under

NAFTA and on total U.S. imports. In 2012, 3 percent of U.S. imports of the subject products from NAFTA partners 

were dutiable, resulting in an effective tariff of less than 0.5 percent ad valorem. 

The proposed modification would likely have a negligible effect on U.S. exports of framed mirrors under NAFTA and 

on total U.S. exports. The Canadian MFN rate of duty on these goods is free. U.S. exports of framed glass mirrors to 

Canada accounted for 95 percent of U.S. exports to NAFTA partners in 2012. Even though the Mexican MFN rate of 

duty on framed glass mirrors is 15 percent ad valorem, it accounts for only 5 percent of U.S. exports to NAFTA 

partners in 2012.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 
3-210

CHAPTER 70

TABLE 3.121 Certain glass articles

HTS no. Existing rule Proposed rule Probable effect advice

7010–

7020

3. A change to heading 7010 

through 7020 from any other 

heading, except from 

headings 7007 through 7020.

A change to heading 70.10 

through 70.20 from any heading 

outside that group, except from 

heading 70.07 through 70.09.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.121: Modification and effect

Modification: The proposed rule covers a wide variety of finished glass articles, such as bottles (heading 7010), 

tableware (heading 7013), and glass fibers or fiberglass (heading 7019). The proposed modification would make no 

substantive change to the current NAFTA rule. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule. 
3-211

TABLES FOR HTS CHAPTER 74

TABLE 3.122 Copper waste and scrap

HTS no. Existing rule Proposed rule Probable effect advice

7404 3. No required change in tariff 

classification to heading 7404, 

provided the waste and scrap 

are wholly obtained or 

produced entirely in the 

territory of one or more of the 

NAFTA parties.

A change to a good of heading 

74.04 from any other good within 

that heading or any other heading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.122: Modification and effect

Modification: Under the current rule, collecting or producing copper waste and scrap of heading 7404 within the 

NAFTA partner countries confers NAFTA origin. However, such waste and scrap shipments may include material 

from other countries, and one type of copper waste and scrap cannot be converted readily into another type within 

that heading. The proposed modification is in part liberalizing, in that non-originating material classifiable in heading 

7404 may now qualify for NAFTA preferences, but also restricting, in that it now requires a change to a good of 

heading 7404.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, there would be no effect on U.S. production of copper waste and scrap.
3-212

CHAPTER 74

TABLE 3.123 Other articles of copper, not elsewhere specified

HTS no. Existing rule Proposed rule Probable effect advice

7419.99 16. (A) A change to cloth 

(including endless bands), 

grill, netting or expanded 

metal of subheading 7419.99 

from any other good of 

subheading 7419.99 or any 

other heading;

(B) A change to springs of 

subheading 7419.99 from any 

other good of subheading 

7419.99 or any other heading;

(C) A change to non-electric 

cooking or heating apparatus 

of a kind used for domestic 

purposes and parts thereof of 

subheading 7419.99 from any 

other good of subheading 

7419.99 or any other heading; 

or

(D) A change to any other 

good of subheading 7419.99 

from cloth (including endless 

bands), grill, netting, 

expanded metal, springs or 

non-electric cooking or 

heating apparatus of a kind 

used for domestic purposes 

and parts thereof of 

subheading 7419.99 or any 

other heading.

A change to a good of subheading 

7419.99 from any other good 

within that subheading or any 

other heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Significant 

increase

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.123: Modification and effect

Modification: Under subdivisions (A) through (C) of the current rule of origin, copper cloth (including endless bands), 

grill, netting, or expanded metal; copper springs; and copper non-electric cooking or heating apparatus of a kind 

used for domestic purposes, and parts thereof, can be made of non-originating articles from within subheading 

7419.99 or from inputs from any other heading. The proposed modification does not substantively change the rules of 

origin for subdivisions (A) through (C).

Subdivision (D) of the current rule covers other articles of copper within subheading 7419.99, including copper 

containers of a kind normally carried on the person, in the pocket, or in the handbag; copper items coated or plated 

with precious metal; brass plumbing goods not elsewhere specified; and many other goods. The current rule allows 

these items to be produced from non-originating articles in other headings and non-originating copper products 

named in subdivision (A) through (C). The proposed modification is liberalizing for the products of subdivision (D) 

because it would allow these copper articles to be made from any non-originating article within subheading 7419.99, 

including those articles outside of subdivisions (A) through (C), or any other heading. For example, under the 

proposed modification, a copper terminal for electrical cables classified in subheading 7419.99 could now use nonoriginating copper components classified in subheading 7419.99 and receive the NAFTA preferences.
3-213

TABLE 3.123: Modification and effect—Continued

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and U.S. total 

imports. Almost all these products (nearly 100 percent in 2012) already enter free of duty under NAFTA or at an NTR 

rate of free. Most of the goods that could be affected by the proposed modification are already free of duty on an NTR 

basis. In 2012, the effective tariff on U.S. imports of the subject products from NAFTA partners was less than 0.5 

percent ad valorem.

The proposed modification could result in a significant increase in U.S. exports to NAFTA partners, which totaled 

$126.4 million in 2012. Most U.S. exports to Canada of products covered by the rule (97 percent in 2012) are 

classified in tariff items that have MFN rates of duty of 3 or 9.5 percent ad valorem in Canada. Similarly, more than 

one-third of U.S. exports to Mexico of the subject products (36 percent in 2012) were in tariff items that have an MFN

rate of duty of 15 percent ad valorem in Mexico. Most U.S. exports to these countries are “other articles of copper,”

for which the proposed modification is liberalizing. Using the actual duties paid on U.S. exports to Canada and 

estimated duties on U.S. exports to Mexico, the effective tariff on U.S. exports of these goods to NAFTA partners in 

2012 was estimated at 1.8 percent ad valorem.1

The proposed modification would likely have a negligible effect on total U.S. exports. Based on 2012 U.S. export 

data, the effective tariff on total U.S. exports would be only 1.2 percent.2 U.S. exports to NAFTA partners accounted 

for 68 percent of total U.S. exports of the subject products in 2012. 

The proposed modification would likely result in a negligible effect on U.S. production because the net effect on total 

U.S. trade is expected to be negligible and the size of U.S. production is relatively large compared with any potential

changes in total U.S. trade.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX). 2 Calculated based on estimated duties collected on U.S. exports to NAFTA partners of products substantively affected by 

the proposed modification divided by total U.S. exports of all products covered by the proposed modification. Commission 

estimate based on Canadian import data from Statistics Canada, International Trade Division, Mexican import data from Global 

Trade Atlas, and U.S. export data from USITC DataWeb/USDOC. 
3-214

TABLES FOR HTS CHAPTER 75

TABLE 3.124 Nickel mattes, nickel oxide sinters, and other intermediate nickel products; unwrought nickel; nickel 

waste and scrap; and nickel powders and flakes

HTS no. Existing rule Proposed rule Probable effect advice

7501–

7504

1. A change to headings 7501 

through 7504 from any other 

chapter.

A change to heading 75.01 

through 75.04 from any other 

heading, including another 

heading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.124: Modification and effect

Modification: The current rule provides that certain intermediate nickel products (heading 7501), unwrought nickel 

(heading 7502), nickel waste and scrap (heading 7503), and nickel powder and flakes (heading 7504) can be made 

from non-originating inputs classified in other chapters. Chapter 75 covers all forms of nickel and nickel articles, but 

ores containing nickel are classified in heading 2604 and can be used as inputs under the current rule. 

The proposed modification is liberalizing because it would allow a heading-level tariff change to confer origin. Thus, 

any form of nickel or nickel article that is processed in a way that would cause a change of heading could be eligible 

for NAFTA benefits. For example, nickel powder made using non-originating unwrought nickel could receive the 

preferential rate of duty. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, there would be no effect on U.S. production of the covered products.
3-215

CHAPTER 75

TABLE 3.125 Nickel bars, rods, and profiles

HTS no. Existing rule Proposed rule Probable effect advice

7505.11–

7505.12

2. A change to heading 7505 

from any other heading.

A change to subheading 7505.11 

through 7505.12 from any other 

heading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.125: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-216

CHAPTR 75

TABLE 3.126 Nickel wire

HTS no. Existing rule Proposed rule Probable effect advice

7505.21–

7505.22

2. A change to heading 7505 

from any other heading.

A change to subheading 7505.21 

through 7505.22 from any other 

heading; or

A change to subheading 7505.21 

through 7505.22 from subheading

7505.11 through 7505.12, whether 

or not there is also a change from 

any other heading, provided that, if 

bar or rod is used, the crosssectional area of the bar or rod is 

reduced by at least 50 percent.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.126: Modification and effect

Modification: Under the current rule, a heading-level change is required for any non-originating inputs used to make 

nickel wire (subheadings 7505.21 and 7505.22) in order for the product to qualify for the NAFTA preferential rate. As 

a result, nickel wire may not be made with non-originating bars, rods, or profiles classified in heading 7505. 

The proposed modification is liberalizing because it would confer NAFTA origin on nickel wire produced from such 

non-originating inputs. To qualify as originating, however, there must be a reduction in cross-sectional area of at least 

50 percent if bar or rod is used.

Effect: The proposed modification is likely to have a negligible effect on U.S. imports from NAFTA partners and on 

total U.S. imports of these articles. The effective tariff for U.S. imports of products covered by the proposed rule from 

the NAFTA partners was less than 0.5 percent ad valorem in 2012, as 96 percent of these imports entered free of 

duty under NAFTA. In addition, these articles (nickel wire) are not normally produced from nickel bar or rod in the 

manner described in the proposed modification. 

The proposed modification would have no effect on U.S. exports to NAFTA partners and total U.S. exports because 

the MFN rate of duty imposed on these goods by Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-217

CHAPTER 75

TABLE 3.127 Nickel tubes, pipes, and tube or pipe fittings; nickel cloth, grill, and netting; and other articles of nickel

HTS no. Existing rule Proposed rule Probable effect advice

7507.11–

7508.90

6. A change to headings 7507 

through 7508 from any 

heading outside that group.

A change to subheading 7507.11 

through 7508.90 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.127: Modification and effect

Modification: The current rule provides that nickel tubes, pipes, or fittings (heading 7507) and other nickel articles 

(heading 7508) can receive the NAFTA preferential rate if made from non-originating inputs classified outside those

headings. For example, under the current rule, an originating pipe combined with non-originating fittings cannot 

receive the preferential rate of duty.

The proposed rule is liberalizing because it allows any subheading-level tariff change to confer origin. For example, a

NAFTA-originating nickel tube combined with non-originating nickel flanges, collars or rings could receive the 

preferential rate.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and total U.S. 

imports. The effective tariff for U.S. imports from NAFTA partners was less than 0.5 percent in 2012, as most of these 

imports entered free of duty under NAFTA. In addition, nickel pipe and tube is produced from flat-rolled nickel or 

nickel bar, not from articles within this group; other articles within the group, such as pipe fittings, grill, cloth, and 

netting, are also not produced from other articles within the group. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. All of the products covered by the proposed rule are free of duty on an MFN basis in Mexico, which 

accounted for 54 percent of U.S .exports of the subject products to NAFTA partners in 2012. Most of the products are 

also free of duty on an MFN basis in Canada, with the exception of nickel fasteners and some other nickel articles 

(Canadian tariff items 7508.90.90), which have an MFN rate of duty of 3 percent ad valorem. Such fasteners are 

typically produced from nickel bar stock, not from nickel pipe, pipe fittings, or other articles within this group. Using 

the figures for actual duties on exports to Canada and for total U.S. exports to NAFTA partners, the effective tariff for 

U.S. exports to NAFTA partners was less than 0.5 percent ad valorem in 2012.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-218

TABLE FOR HTS CHAPTER 78

TABLE 3.128 Bars, rods, profiles, and wire; tubes, pipes, and fittings thereof; and other articles, not elsewhere 

specified, all of lead

HTS no. Existing rule Proposed rule Probable effect advice

7806 4(A). A change to bars, rods, 

profiles or wire of heading 

7806 from any other good of 

heading 7806 or any other 

heading;

(B). A change to wire of 

heading 7806 from bars, rods 

or profiles of heading 7806, 

whether or not there is also a 

change from any other 

heading, provided that, if bar 

or rod is used, the crosssectional area of the bar or 

rod is reduced by at least 50 

percent;

(C). A change to tubes, pipes 

or tube or pipe fittings of 

heading 7806 from any other 

good of heading 7806 or any 

other heading; or

(D). A change to any other 

good of heading 7806 from 

bars, rods, profiles, wire, 

tubes, pipes or tube or pipe 

fittings of heading 7806 or any 

other heading.

A change to a good of heading 

78.06 from any other good within 

that heading or any other heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.128: Modification and effect

Modification: In 2007, the WCO deleted HS headings 7803 and 7805. These headings covered the goods now 

classified in the HTS in tariff items 7806.00.03 and 7806.00.05. The rules of origin were updated to allow previously 

recognized tariff changes to continue to confer origin.

Under subdivision (A) of the current rule, lead bars, rods, profiles, or wire can be made from non-originating articles 

from within heading 7806 or from inputs from other tariff headings. Subdivision (B) of the current rule provides that 

lead wire of heading 7806 can be made from non-originating lead bars or rods of heading 7806 if it meets certain 

processing requirements. To qualify, there must be a reduction in cross-sectional area of at least 50 percent if bar or 

rod is used. Subdivision (C) of the rule permits the production of pipes, fittings, and similar articles from inputs from 

other headings or from any article within heading 7806. Subdivision (D) allows any other article of lead classified in 

heading 7806 (effectively goods of HTS tariff item 7806.00.80) to be made from non-originating articles in other 

headings, but not from the lead products named in subdivisions (A) through (C). This group of non-enumerated 

articles encompasses lead nails, drapery weights, wall anchors, x-ray shields, and many other goods.

The proposed modification is liberalizing because it would eliminate the minimum processing requirements for wire 

produced from either bar or rod in existing subdivision (B). It would also allow the other non-enumerated lead articles 

classified in subdivision (D) to be made from any lead articles within the heading. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and total U.S. 

imports. Virtually all imports of the products covered by the proposed rule from Mexico and Canada entered free of 

duty under NAFTA, resulting in an effective tariff of less than 0.5 percent ad valorem in 2012. 
3-219

TABLE 3.128: Modification and effect—Continued

The proposed modification would have no effect on U.S. exports under NAFTA and U.S. total exports because all 

products under heading 7806 are free of duty on an MFN basis in Canada and Mexico.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-220

TABLE FOR HTS CHAPTER 79

TABLE 3.129 Articles for household, table, or kitchen use; toilet and sanitary wares; tubes, pipes, and fittings 

thereof; and other articles, not elsewhere specified, all of zinc

HTS no. Existing rule Proposed rule Probable effect advice

7907 6(A). A change to tubes, 

pipes or tube or pipe fittings of 

heading 7907 from any other 

good of heading 7907 or any 

other heading; or

(B). A change to any other 

good of heading 7907 from 

tubes, pipes or tube or pipe 

fittings of heading 7907 or any 

other heading.

A change to a good of heading 

79.07 from any other good within 

that heading or any other heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.129: Modification and effect

Modification: In 2007 changes to the HS, the WCO deleted heading 7906, which covered zinc tubes, pipes, and 

tube or pipe fittings, and transferred the products to heading 7907 (tariff item 7907.00.20). The rules of origin were 

updated to allow previously recognized tariff changes to continue to confer origin. The current rule allows tubes, 

pipes, and tube or pipe fittings of zinc (heading 7907) made from any other non-originating good from heading 7907 

or from any other heading to qualify for NAFTA preferences. The current rule also allows any other good of heading 

7907 made from non-originating tubes, pipes and tube or pipe fittings of heading 7907 or any other heading to qualify 

for these preferences. 

The proposed modification is liberalizing for articles of heading 7907 because it would allow any good classified in 

heading 7907 to be made from other goods of that heading, not just tubes, pipes, and tube or pipe fittings of zinc.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Virtually all trade in these goods (99 percent) entered the United States free of duty under NAFTA in 

2012, resulting in an effective tariff of less than 0.5 percent ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S.

exports. U.S. exports of these products enter Mexico at the MFN rate of free under heading 7907, but most (85 

percent in 2012) U.S. exports entering Canada are potentially subject to the MFN rate of 3 percent ad valorem under 

heading 7907. If MFN rates of duty are applied to all U.S. exports of goods covered by this rule to the NAFTA 

partners, the effective tariff was less than 0.5 percent ad valorem in 2012.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-221

TABLE FOR HTS CHAPTER 80

TABLE 3.130 Articles of tin not elsewhere specified

HTS no. Existing rule Proposed rule Probable effect advice

8007 3. (A) A change to plates, 

sheets or strip, of a thickness 

exceeding 0.2 mm, of heading 

8007 from any other good of 

heading 8007 or any other 

heading;

(B) A change to foil, of a 

thickness not exceeding 

0.2 mm, powders or flakes of 

heading 8007 from any other 

good of heading 8007 or any 

other heading;

(C) A change to tubes, pipes 

or tube or pipe fittings of 

heading 8007 from any other 

good of heading 8007 or any 

other heading; 

(D) A change to any other 

good of heading 8007 from 

plates, sheets or strip, of a 

thickness exceeding 0.2 mm, 

foil, of a thickness not 

exceeding 0.2mm, powders, 

flakes, tubes, pipes or tube or 

pipe fittings of heading 8007 

or any other heading.

A change to a good of heading

80.07 from any other good within

that heading or any other heading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.130: Modification and effect

Modification: The proposed modification simplifies the current rule language, but it would make no substantive 

change to the current NAFTA rule. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rules.
3-222

TABLES FOR HTS CHAPTER 81

TABLE 3.131 Articles of tungsten, except unwrought tungsten, wire, waste, and scrap

HTS no. Existing rule Proposed rule Probable effect advice

8101.99 1A. (A) A change to bars or 

rods, other than those 

obtained simply by sintering, 

profiles, plates, sheets, strip 

or foil of subheading 8101.99 

from any other good of 

subheading 8101.99 or any 

other subheading; or

(B) A change to any other

good of subheading 8101.99 

from bars or rods, other than 

those obtained simply by 

sintering, profiles, plates, 

sheets, strip or foil of 

subheading 8101.99 or any 

other subheading.

A change to a good of subheading

8101.99 from any other good

within that subheading or any 

other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.131: Modification and effect

Modification: The proposed modification simplifies the current rule language, which became more complex as a 

result of WCO changes to the HS in 2007, but would make no substantive changes to the current NAFTA rule. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rules.
3-223

CHAPTER 81

TABLE 3.132 Unwrought and other gallium, hafnium, indium, niobium, rhenium, germanium, and vanadium

HTS no. Existing rule Proposed rule Probable effect advice

8112.92–

8112.99

4. (A) A change to germanium 

of subheading 8112.92 from 

any other good of subheading 

8112.92 or any other 

subheading;

(B) A change to vanadium of 

subheading 8112.92 from any 

other good of subheading 

8112.92 or any other 

subheading;

(C) A change to any other 

good of subheading 8112.92 

from germanium or vanadium 

of subheading 8112.92 or any 

other subheading.

5. (A) A change to germanium 

of subheading 8112.99 from 

any other good of subheading 

8112.99 or any other 

subheading;

(B) A change to vanadium of 

subheading 8112.99 from any 

other good of subheading 

8112.99 or any other 

subheading;

(C) A change to any other 

good of subheading 8112.99 

from germanium or vanadium 

of subheading 8112.99 or any 

other subheading.

A change to a good of any of 

subheading 8112.92 through 

8112.99 from any other good 

within that subheading or any 

other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.132: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rules. The proposed rule 

streamlines the language and consolidates rules for two subheadings.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rules.
3-224

TABLES FOR HTS CHAPTER 84

TABLE 3.133 Steam turbines and other vapor turbines for marine propulsion

HTS no. Existing rule Proposed rule Probable effect advice

8406.10 11. A change to subheadings 

8406.10 through 8406.82 

from any subheading outside 

that group, except from tariff 

items 8406.90.20,

8406.90.40, 8406.90.50 or 

8406.90.70.

A change to subheading 8406.10 

from any other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.133: Modification and effect

Modification: The current NAFTA rule specifies that steam and other vapor turbines for marine propulsion in 

subheading 8406.10 that use non-originating parts of tariff items 8406.90.20, 8406.90.40, 8406.90.50, or 8406.90.70 

(blades and finished rotors) do not qualify for the NAFTA preferential rate of duty. The proposed modification is 

liberalizing because it removes the product exclusions. In addition, it allows any subheading-level tariff change, 

including a change from subheadings 8406.81 and 8406.82 (steam and other vapor turbines not for marine 

propulsion), to subheading 8406.10 (those for marine propulsion), which is not currently allowed.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on imports of these goods from Canada and Mexico was zero in 2012, as all U.S. 

imports from NAFTA partners entered under a tariff item that is free of duty on an NTR basis. The U.S. NTR rate of 

duty for steam turbines for marine propulsion is 6.7 percent ad valorem, while the NTR rate for other vapor turbines is 

free. U.S. imports of turbines from Canada and Mexico in subheading 8406.10 accounted for less than 1 percent of 

total U.S. imports in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on U.S. total 

exports. All of the tariff items covered by the rule for Canada are free of duty on an MFN basis. Mexico has one tariff 

item covered by the rule with an MFN rate of duty of 15 percent ad valorem; the remaining tariff items have an MFN 

rate of free. In 2012, there were no U.S. exports to Mexico under the dutiable tariff item. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Siemens Energy, a domestic producer of gas and steam turbines, expressed support for the proposed 

modifications for headings 8406 and 8411, stating that it believes the proposed modifications would contribute to the 

sustainability of its manufacturing facility in North Carolina.1

 1 Siemens Energy, written submission to the USITC, June 3, 2013, 1. See appendix D.
3-225

CHAPTER 84

TABLE 3.134 Steam turbines and other vapor turbines other than for marine propulsion

HTS no. Existing rule Proposed rule Probable effect advice

8406.81–

8406.82

11. A change to subheadings 

8406.10 through 8406.82 

from any subheading outside 

that group, except from tariff 

items 8406.90.20, 

8406.90.40, 8406.90.50 or 

8406.90.70.

A change to subheading 8406.81 

through 8406.82 from any

subheading outside that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.134: Modification and effect

Modification: The current NAFTA rule specifies that goods in subheadings 8406.81 and 8406.82 (steam and other 

vapor turbines) that use non-originating parts of tariff items 8406.90.20, 8406.90.40, 8406.90.50, or 8406.90.70

(blades and finished rotors) do not qualify for the NAFTA preferential rate of duty. The proposed modification is 

liberalizing because it removes the product exclusion. In addition, it allows a change from any subheading outside the 

group, including subheading 8406.10 (steam and other vapor turbines for marine propulsion) to subheading 8406.81 

or 8406.82 (those not for marine propulsion), which is not currently allowed.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports of the subject goods from Canada and Mexico in 2012 was zero, as 

all U.S. imports of these goods from the NAFTA partners entered under a tariff item that is free of duty on an NTR 

basis. The U.S. NTR rate of duty for imports of steam turbines is 6.7 percent ad valorem, while imports of other vapor 

turbines enter free of duty. U.S. imports under NAFTA accounted for less than 0.1 percent of total U.S. imports of 

these products in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico has one tariff item covered by the rule with an MFN rate of duty of 15 percent ad valorem; the 

remaining tariff items for Mexico, and all of the tariff items covered by the rule for Canada, are free of duty on an MFN 

basis. An estimated 97 percent of U.S. exports of these goods to NAFTA partners entered under tariff items that are 

free of duty. If MFN rates of duty are applied to such U.S. exports to the NAFTA partners, the estimated effective tariff 

on U.S exports to NAFTA partners of goods covered by this rule was less than 0.5 percent ad valorem in 2012.

1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Siemens Energy, a domestic producer of gas and steam turbines, expressed support for the proposed 

modifications for headings 8406 and 8411, stating that it believes the proposed modifications would contribute to the 

sustainability of its manufacturing facility in North Carolina.2

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 2 Siemens Energy, written submission to the USITC, June 3, 2013, 1. See appendix D.
3-226

CHAPTER 84

TABLE 3.135 Rotors, finished for final assembly, for steam or other vapor turbines

HTS no. Existing rule Proposed rule Probable effect advice

8406.90.aa

[8406.90.20, 

8406.90.50]

12. A change to tariff items 

8406.90.20 or 8406.90.50 

from tariff items 8406.90.30 

or 8406.90.60, or any other 

heading.

A change to tariff item 8406.90.aa 

[8406.90.20 or 8406.90.50] from 

tariff item 8406.90.cc [8406.90.30

or 8406.90.60] or any other 

heading; or

A change to tariff item 8406.90.aa 

[8406.90.20 or 8406.90.50] from 

any other good within subheading 

8406.90, whether or not there is 

also a change from tariff item 

8406.90.cc [8406.90.30 or 

8406.90.60] or any other heading, 

provided there is a regional value 

content of not less than:

(a) 60 percent where the 

transaction value method is used, 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.135: Modification and effect

Modification: Current NAFTA rules specify that steam and other vapor turbine rotors finished for final assembly (tariff 

items 8406.90.20 or 8406.90.50) qualify as originating if made from non-originating inputs of tariff items 8406.90.30 or 

8406.90.60 (rotors, not further advanced than cleaned or machined for removal of fins, gates, sprues, and risers, or to 

permit location in finishing machinery) or non-originating inputs from any heading other than 8406.90.

The proposed modification is liberalizing because it adds an alternative rule that would allow non-originating inputs 

from subheading 8406.90 to be used, provided that the finished rotors meet the regional value content requirement.

For example, a steam turbine rotor finished for final assembly (tariff items 8406.90.20) would qualify as originating if it 

used a rotor from tariff item 8406.90.45 (rotors or spindles and rotor or spindle assemblies), provided that it meets the 

regional value content requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports of these goods from Canada and Mexico was zero in 2012. All U.S. 

imports of the goods from NAFTA partners were either free of duty on an NTR basis or qualified for NAFTA 

preferential duty treatment under the current rules of origin. U.S. NTR rates of duty are 6.7 percent ad valorem for 

steam turbine rotors and parts (tariff item 8406.90.20) and free for other vapor turbine rotors and parts (tariff item 

8406.90.50). U.S. imports from NAFTA partners accounted for nearly 26 percent of total U.S. imports of these 

products.

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty imposed on these goods by Canada and Mexico is free; therefore, there would be no effect on U.S. 

exports under NAFTA or on total U.S. exports. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. Siemens Energy, a domestic producer of gas and steam turbines, expressed support for the 

proposed modifications for headings 8406 and 8411, stating that it believes the proposed modifications would 

contribute to the sustainability of its manufacturing facility in North Carolina.1

 1 Siemens Energy, written submission to the USITC, June 3, 2013, 1. See appendix D.
3-227 

TABLE 3.135: Modification and effect—Continued

Note: Tariff items 8406.90.aa and 8406.90.bb represent 8-digit tariff items that are not harmonized at the 

international level. The applicable 8-digit codes are as follows: Canada, 8406.90.22, 8406.90.33, 8406.90.34; Mexico, 

8406.90.01; and the United States, 8406.90.20 and 8406.90.50. 
3-228

CHAPTER 84

TABLE 3.136 Blades, rotating or stationary, for steam or other vapor turbines

HTS no. Existing rule Proposed rule Probable effect advice

8406.90.bb

[8406.90.40,

8406.90.70]

13. A change to tariff items 

8406.90.40 or 8406.90.70 

from any other tariff item.

A change to tariff item 8406.90.bb 

[8406.90.40 or 8406.90.70] from 

any other tariff item; or

No required change in tariff 

classification to tariff item 

8406.90.bb [8406.90.40 or 

8406.90.70], provided there is a 

regional value content of not less 

than:

(a) 60 percent where the

transaction value method is used, 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.136: Modification and effect

Modification: The current NAFTA rule specifies that blades for steam and other vapor turbine rotors (tariff items 

8406.90.40 or 8406.90.70) qualify as originating if the non-originating inputs are from any other tariff item. The 

proposed modification is liberalizing because of the addition of an alternative rule that would confer origin on nonoriginating blades (e.g., unfinished) classified in the same tariff item provided the final product meets the regional 

value content requirement. 

Effect: The proposed modification would have a negligible effect on U.S. imports from NAFTA partners and on total 

U.S. imports. Although the effective tariff on U.S. imports of the subject goods from Canada and Mexico was 3.8 

percent ad valorem in 2012, it is unlikely that U.S. imports would increase significantly. Most of the value added in 

blades typically occurs in the original country of manufacture and, therefore, products are unlikely to meet the 

regional value content requirements in the proposed rule.1

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty imposed on these goods by Canada and Mexico is free; therefore, there would be no effect on U.S. 

exports under NAFTA or on total U.S. exports. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. Siemens Energy, a domestic producer of gas and steam turbines, expressed support for the 

proposed modifications for headings 8406 and 8411, stating that it believes the proposed modifications would 

contribute to the sustainability of its manufacturing facility in North Carolina.2

Note: Tariff item 8406.90.bb represents 8-digit tariff items that are not harmonized at the international level. The 

applicable 8-digit codes are as follows: Canada, 8406.90.23, 8406.90.36, 8406.90.37; Mexico, 8406.90.02; and the 

United States, 8406.90.40 and 8406.90.70.

 1 Industry representative, e-mail message to USITC staff, June 21, 2013. 2 Siemens Energy, written submission to the USITC, June 3, 2013, 1. See appendix D.
3-229

CHAPTER 84

TABLE 3.137 Spark-ignition reciprocating or rotary internal combustion piston engines for aircraft, marine 

propulsion, and motor vehicles

HTS no. Existing rule Proposed rule Probable effect advice

8407.10–

8407.34

15. A change to headings 

8407 through 8408 from any 

other heading, including 

another heading within that 

group, provided there is a 

regional value content of not 

less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 8407.10 

through 8407.34 from any other 

heading, provided there is a 

regional value content of not less 

than:

(a) 60 percent where the

transaction value method is used, 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.137: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-230

CHAPTER 84

TABLE 3.138 Spark-ignition reciprocating or rotary internal combustion piston engines, other than those for use in 

aircraft, marine propulsion, and motor vehicles

HTS no. Existing rule Proposed rule Probable effect advice

8407.90 15. A change to headings 

8407 through 8408 from any 

other heading, including 

another heading within that 

group, provided there is a 

regional value content of not 

less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 8407.90 

from any other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.138: Modification and effect

Modification: The current rule allows certain spark-ignition reciprocating or rotary internal combustion piston engines 

(subheading 8407.90) made from non-originating inputs from any other heading, including another heading within the 

group (headings 8407 and 8408), to receive the preferential rate of duty provided that the final good meets the 

regional value content requirement. If the final product does not meet the regional value requirement, the inputs of 

headings 8407 and 8408, or inputs from any other heading, must be made in North America. The proposed rule is 

liberalizing because it eliminates the regional value content requirement for these engines and allows any 

subheading-level tariff change to confer origin.

For example, the proposed rule would allow a change to engines of subheading 8407.90 from other spark-ignition or 

rotary internal combustion engines classified in other subheadings of heading 8407. This liberalization would permit 

such engines to be converted or adapted for use in agricultural and horticultural equipment, or converted for use with 

natural or liquefied petroleum gas or other fuels or applications. Moreover, by eliminating the regional value content

requirement, a higher level of non-originating components could be used in the manufacture of these engines and still 

meet origin requirements, because parts for such engines are classified outside of subheading 8407.90 and would 

meet the tariff shift requirement.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these engines and motors would not be affected by the proposed rule change.
3-231

CHAPTER 84

TABLE 3.139 Diesel engines for marine propulsion

HTS no. Existing rule Proposed rule Probable effect advice

8408.10 15. A change to headings 

8407 through 8408 from any 

other heading, including 

another heading within that 

group, provided there is a 

regional value content of not 

less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 8408.10

from any other subheading.

U.S. trade under NAFTA:

 Imports: Significant 

increase

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.139: Modification and effect

Modification: The current rule specifies that diesel-powered marine engines (subheading 8408.10) qualify as 

originating if made from non-originating inputs of any other heading, including another heading within the group (i.e., 

heading 8407), provided that the final product meets the regional value content requirement. The proposed 

modification is liberalizing because it eliminates the regional value content requirement for these engines, thereby

allowing greater use of non-originating inputs, or conversion from diesel engines classified in any other subheadings 

within heading 8408. 

Effect: The proposed modification would likely result in a significant increase in U.S. imports from NAFTA partners, 

which totaled $16.2 million in 2012. The U.S. NTR rate of duty for these goods is 2.5 percent ad valorem, and the 

effective tariff was 1.9 percent ad valorem in 2012. In 2012, roughly 75 percent of U.S. imports from NAFTA partners 

were dutiable, with Mexico the source of nearly 99 percent of NAFTA imports of these engines. 

The proposed modification would likely have a negligible effect on total U.S. imports. U.S. imports of marine diesel 

engines from NAFTA partners accounted for less than 12 percent of total U.S. imports of these engines in 2012, 

resulting in an effective tariff of less than 0.5 percent ad valorem for total U.S. imports.

The proposed modification would likely have a negligible effect on U.S. exports of marine diesel engines under 

NAFTA and on total U.S. exports. U.S. exports of these engines to NAFTA partners accounted for less than 4 percent 

of total U.S. exports of these products. Nearly 90 percent of U.S. exports of these engines to Canada and Mexico 

enter under tariff items that are free of duty on an MFN basis. Canada’s MFN rate for these goods is free. Mexico 

applies a 5 percent ad valorem MFN duty on imports of marine diesel engines less than 600 horsepower, while 

imports of all other marine diesel engines enter Mexico free of duty under MFN rates. If MFN rates of duty are applied 

to all U.S. exports of these goods to the NAFTA partners, the estimated effective tariff on U.S exports to NAFTA 

partners in 2012 was 0.6 percent ad valorem.

1

The proposed modification would likely result in a negligible effect on U.S. production because the net effect on total 

U.S. trade is expected to be negligible and the size of U.S. production is believed to be relatively large compared with 

any potential changes in U.S. trade.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-232

CHAPTER 84

TABLE 3.140 Diesel engines for use in motor vehicles

HTS no. Existing rule Proposed rule Probable effect advice

8408.20 15. A change to headings 

8407 through 8408 from any 

other heading, including 

another heading within that 

group, provided there is a 

regional value content of not 

less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 8408.20

from any other heading, provided 

there is a regional value content of 

not less than:

(a) 60 percent where the 

transaction value method is used, 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.140: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-233

CHAPTER 84

TABLE 3.141 Miscellaneous diesel engines (other than those for use in marine propulsion and motor vehicles)

HTS no. Existing rule Proposed rule1 Probable effect advice

8408.90 15. A change to headings 

8407 through 8408 from any 

other heading, including 

another heading within that 

group, provided there is a 

regional value content of not 

less than:

(A) 60 percent where the 

transaction value method is 

used, or

(B) 50 percent where the net 

cost method is used.

A change to subheading 8408.90

from any other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.141: Modification and effect

Modification: The current rule specifies that miscellaneous diesel engines (subheading 8408.90) qualify as 

originating if made from non-originating inputs of any other heading, including another heading within the group (i.e., 

heading 8407), provided that the final product meets the regional value content requirement. The proposed 

modification is liberalizing because it eliminates the regional value content requirement for these miscellaneous 

engines and it allows a subheading-level tariff shift to confer origin. For example, the proposed rule would allow 

conversion from diesel engines classified in any other subheadings within heading 8408. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries, so the proposed rule modification 

would have no effect on U.S. imports under NAFTA or on total U.S. imports. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. More than 90 percent of U.S. exports of the subject goods enter NAFTA markets under tariff items that are 

free of duty on an MFN basis. If the MFN rates of duty apply to all U.S. exports of these products to NAFTA partners,

the effective tariff on U.S exports to NAFTA partners of goods covered by this rule in 2012 was less than 1 percent ad 

valorem.2 Canada accounted for 84 percent of U.S. exports of these goods to NAFTA countries in 2012, and U.S. 

exports of these goods enter Canada free of duty under MFN rates. All but one of Mexico’s MFN rates of duty on 

imports of miscellaneous diesel engines are free; the exception is a 5 percent ad valorem duty on imports of engines 

with 960 horsepower or less.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.

 1 Goods within this heading/subheading that are for use in motor vehicles of chapter 87 may be subject to the net 

cost method of determining regional value content that is specific to certain automotive goods, as described in Article 

403 of the NAFTA and HTS general note 12(d). 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-234 

 CHAPTER 84 

TABLE 3.142 Turbojets, turbopropellers, or other gas turbines

HTS no. Existing rule Proposed rule Probable effect advice 

8411.11–

8411.82 

21. (A) A change to 

subheadings 8411.11 through 

8411.82 from any other 

heading; or 

(B) A change to subheadings 

8411.11 through 8411.82 from 

subheadings 8411.91 through 

8411.99, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

A change to subheading 

8411.11 through 8411.82 

from any subheading outside 

that group. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.142: Modification and effect 

Modification: The current rule allows goods classified under subheadings 8411.11 through 8411.82 (turbojets, 

turbopropellers, or other gas turbines) made from non-originating inputs classified under any heading other than 8411 

to receive preferential duty treatment. The current rule also allows these goods to receive preferential duty treatment 

if made from non-originating inputs classified under subheadings 8411.91 (parts of turbojets or turbopropellers) or 

8411.99 (parts of other gas turbines), provided the imported goods meet the regional value content requirement. 

The proposed modification is liberalizing because it would eliminate the regional value content requirement and allow 

a subheading-level tariff shift to confer origin. Thus, non-originating inputs classified under subheadings 8411.91 

(parts of turbojets or turbopropellers) or 8411.99 (parts of gas turbines, e.g., castings, forgings, rotors, spindles, and 

rotor or spindle assemblies) could be used in producing originating gas turbines. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. Most U.S. tariff items for these goods are free of duty on an NTR basis; a 2.5 percent ad valorem NTR 

rate applies to certain gas turbines other than for aircraft (HTS tariff items 8411.81.80 and 8411.82.80). The effective 

tariff on U.S. imports of these goods from Canada and Mexico was less than 1 percent ad valorem in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. If the MFN rates of duty apply to all U.S. exports of these products to NAFTA partners, the effective tariff on 

U.S exports to NAFTA partners of goods covered by this rule in 2012 was less than 0.5 percent ad valorem.1

Canada’s MFN duty rates for tariff items within subheadings 8411.11–8411.82 are free, with the exception of one 

subheading with a tariff rate of 3.5 percent ad valorem, which accounted for only 6 percent of Canada’s imports from 

the United States in 2012.2

 Mexico’s MFN rates of duty for subheadings 8411.11-8411.82 are free. In 2012, U.S. 

exports to Canada accounted for 4 percent of total U.S. exports under the subheadings covered by the rule, and 

those to Mexico accounted for 8 percent. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

 

 1

 Commission estimate based on Canadian and Mexican import data obtained from Global Trade Atlas. 2

 Commission estimate based on Canadian import data obtained from Global Trade Atlas. 
3-235

TABLE 3.142: Modification and effect—Continued

Siemens Energy, a domestic producer of gas and steam turbines, estimates that the proposed modification will allow 

for its exports of U.S. manufactured gas turbines to qualify for NAFTA tariff preferences because it would then be 

able to use non-originating parts classified under 8411.99. The company estimates that its customers would likely 

save between $13 to $27 million in tariff and administrative costs on both gas and steam turbines exported to Canada 

and Mexico over the next five years.3

 3 Siemens Energy, Inc., written submission to the USITC, June 4, 2013, 3–8; see also proposed rule modifications for 

articles classed under heading 8406.
3-236

CHAPTER 84

TABLE 3.143 Parts of turbojets and turbopropellers

HTS no. Existing rule Proposed rule Probable effect advice

8411.91 22. A change to subheadings 

8411.91 through 8411.99 from 

any other heading.

A change to subheading 

8411.91 from any other 

heading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.143: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-237

CHAPTER 84

TABLE 3.144 Parts of other gas turbines

HTS no. Existing rule Proposed rule Probable effect advice

8411.99 22. A change to subheadings 

8411.91 through 8411.99 from 

any other heading.

A change to subheading 

8411.99 from any other 

heading; or

No required change in tariff 

classification to subheading 

8411.99, provided there is a 

regional value content of not 

less than:

(a) 60 percent where the 

transaction value method is 

used, or

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.144: Modification and effect

Modification: Under the current NAFTA rule, parts of other gas turbines classified under subheading 8411.99 that 

are made using non-originating products of the same heading (8411) cannot qualify for the NAFTA preferential rate of 

duty. The proposed modification is liberalizing because it adds a regional value content option that would allow a 

product classified under subheading 8411.99 to be made using any non-originating inputs, including those of the 

same subheading (8411.99), as long as the final part meets the regional value content requirement.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from the NAFTA countries for subheading 8411.99 was less than 0.5 

percent ad valorem in 2012. U.S. imports from Canada accounted for 6 percent of total U.S. imports under 

subheading 8411.99 and those from Mexico for 20 percent. In addition, a gas turbine producer stated that the 

potential beneficial effect of the proposed rule modification is limited because of a lack of parts producers located 

within NAFTA partner countries with the scale economies and the operational efficiency to manufacture gas turbine 

parts requiring high-precision engineering and fabrication.1

The proposed rule modification would have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty for subheading 8411.99 for Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.

 1 Siemens Energy, Inc., written submission to the USITC, June 4, 2013, 5.
3-238

CHAPTER 84

TABLE 3.145 Other engines and motors, including but not limited to reaction, hydraulic, and pneumatic engines and 

motors

HTS no. Existing rule Proposed rule Probable effect advice

8412.10–

8412.80

23.(A) A change to 

subheadings 8412.10 through 

8412.80 from any other 

heading; or

(B) A change to subheadings 

8412.10 through 8412.80 

from subheading 8412.90, 

whether or not there is also a

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8412.10 

through 8412.80 from any other

subheading, including another 

subheading within that group. 

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.145: Modification and effect

Modification: Under the current rule, reaction, pneumatic, hydraulic, and other miscellaneous engines and motors 

(subheadings 8412.10 through 8412.80) can be made from non-originating inputs classified in a heading other than 

heading 8412 and still be considered originating. Alternatively, if non-originating parts of engines and motors 

(subheading 8412.90) are used, the final product must meet the regional value content requirement.

The proposed rule is liberalizing because it removes the regional value content requirement and it would allow any 

subheading-level tariff shift to confer origin. Thus, it would allow other engines and motors of subheadings 8412.10 

through 8412.80 to be made from non-originating parts, such as hubs, nose cones, and rotors for wind turbines, 

certain fittings, and certain cables (classified within heading 8412) and parts of these engines (subheading 8412.90), 

as well as conversions of engines and motors within the subheading group.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these engines and motors would not be affected by the proposed rule change.
3-239

CHAPTER 84

TABLE 3.146 Mechanical appliances for projecting, dispersing, or spraying liquids or powders

HTS no. Existing rule Proposed rule Probable effect advice

8424.10–

8424.89

65. (A) A change to 

subheadings 8424.10 through 

8424.89 from any other 

heading; or

(B) A change to subheadings 

8424.10 through 8424.89 

from subheading 8424.90, 

whether or not there is also a

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

(A) A change to subheading 

8424.10 through 8424.89 from any 

other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.146: Modification and effect

Modification: The current NAFTA rule of origin for mechanical appliances for projecting, dispersing, or spraying 

liquids or powers (subheadings 8424.10–8424.89) requires that any non-originating inputs used in production be 

classified in another heading. Alternatively, if non-originating inputs classified in heading 8424 are used, the final 

product must meet the regional value content requirement to qualify for NAFTA preferences. 

The proposed modification is liberalizing because it eliminates the regional value content requirement and it would 

allow any subheading-level tariff change to confer origin. This means that if an appliance within one subheading can 

be converted to or combined with an appliance of another subheading, the appliance that is created would have 

NAFTA origin status if it still falls into subheadings 8424.10–8424.89.

Effect: The proposed modification would likely have a negligible effect on U.S. imports of these mechanical 

appliances under NAFTA and on total U.S. imports. The effective tariff on U.S. imports of these appliances from 

Canada and Mexico was less than 0.5 percent ad valorem in 2012. U.S. imports from NAFTA partners represented 

27 percent of total U.S. imports under subheadings 8424.10–8424.89 in 2012. 

The proposed rule would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. exports. More 

than 90 percent of U.S. exports of these goods to Canada and Mexico enter under tariff items with an MFN rate of 

free. Assuming MFN rates of duty apply to all U.S. exports of goods covered by the proposed rule to NAFTA partners, 

the effective tariff was less than 1 percent ad valorem in 2012.

1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Canadian and Mexican import data 

obtained from Global Trade Atlas.
3-240

CHAPTER 84

TABLE 3.147 Self-propelled non-electric work trucks

HTS no. Existing rule Proposed rule Probable effect advice

8427.20 70. (A) A change to tariff item 

8427.20.40 from any other 

heading, except from heading 

8407 or 8408 or subheading 

8431.20 or 8483.40; or

(B) A change to tariff item 

8427.20.40 from heading 

8407 or 8408 or subheading 

8431.20 or 8483.40, whether 

or not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used. 

 

71. (A) A change to 

subheading 8427.20 from any 

other heading, except from 

subheading 8431.20; or 

(B) A change to subheading 

8427.20 from subheading 

8431.20, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8427.20 

from any other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.147: Modification and effect

Modification: Under the current rule, non-electric rider-type counterbalanced fork-lift trucks (tariff item 8427.20.40) 

can be made from non-originating inputs from any other heading, except those classified in heading 8407 or 8408 

(each of which covers types of engines) or subheadings 8431.20 or 8433.40 (covering principal parts of such trucks), 

and still qualify for the NAFTA preferential rate of duty. If non-originating inputs from those two headings or two 

subheadings are used, the trucks must meet the regional value requirement. Other trucks of subheading 8427.20 

(other self-propelled trucks not powered by an electric motor) can incorporate non-originating inputs from any other 

heading, but not from subheading 8431.20; again, trucks incorporating such non-originating principal parts must meet 

regional value requirement. 

The proposed modification is liberalizing because it eliminates the regional value content requirement and it would 

allow all trucks of subheading 8472.20 to be made from non-originating inputs of any subheading (other than that 

covering the finished good). Accordingly, these finished goods could be manufactured with major components—

internal combustion piston engines (covered under headings 8407 and 8408), other principal parts of self-propelled 
3-241

TABLE 3.147: Modification and effect—Continued

work trucks (subheading 8431.20), and gears (subheading 8483.40)—that are imported from outside the NAFTA 

region and qualify for NAFTA origin without meeting a regional value content requirement.

Effect: The proposed modification would have no effect on U.S. imports under NAFTA and on total U.S. imports of 

non-electric self-propelled work trucks because the U.S. NTR rate of duty for these products is free.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada and Mexico are the two leading U.S. export markets for self-propelled non-electric work trucks, 

together accounting for just over half the value of total U.S. exports (57 percent or $1.1 billion) in 2012. Mexico has 

two tariff items covered by the rule with MFN rates of duty of 15 percent ad valorem, and one tariff item with an MFN 

rate of duty of 5 percent ad valorem; the remaining tariff items for Mexico and all of the tariff items covered by the rule 

for Canada are free of duty on an MFN basis. In 2012, U.S. exports to Mexico under the three dutiable tariff items 

accounted for 26 percent of U.S. exports to NAFTA partners of products covered by the proposed rule. If MFN rates 

of duty are applied to U.S. exports to NAFTA partners of goods covered by the rule, the effective tariff on U.S. exports 

to NAFTA partners in 2012 was 1.1 percent ad valorem.

1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. 

Although the proposed modification does not directly pertain to engines under headings 8407 and 8408 or to principal 

parts under subheading 8431.20, U.S. manufacturers of these goods may be adversely affected by the proposed rule 

change, which would allow these major components to be imported from outside the NAFTA region and assembled 

into a work truck of subheading 8427.20 that would then qualify for the NAFTA preferential rate of duty. Unlike this 

proposed rule for finished work trucks of subheading 8427.20, the proposed rules for major input components of 

headings 8407 and 8408 (engines) and subheading 8431.20 (principal parts) would require regional value content to 

qualify for NAFTA origin. U.S. manufacturers of principal parts classified under subheading 8483.40 would likely not 

be affected by this proposed rule for finished work trucks. Both the proposed rule for principal parts of subheading 

8483.40 and this proposed rule for finished work trucks allow a change from any other subheading and eliminate the 

regional value content requirement to qualify for NAFTA origin.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Mexican 

International Trade Integral Information System (SIICEX).

 
3-242

CHAPTER 84

TABLE 3.148 Heavy-duty lifting, self-propelled earth movers, and rock drilling equipment

HTS no. Existing rule Proposed rule Probable effect advice

8428.10–

8430.69

73. (A) A change to headings 

8428 through 8430 from any 

heading outside that group, 

except from heading 8431;

or

(B) A change to headings 

8428 through 8430 from 

heading 8431, whether or not 

there is also a change from 

any heading outside that 

group, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheadings 8428.10 

through 8430.69 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible 

TABLE 3.148: Modification and effect

Modification: Under the current rule, heavy-duty lifting or loading machinery (heading 8428), self-propelled earth 

movers (heading 8429), and rock drilling or other heavy machinery (heading 8430) can be made from non-originating 

inputs from any heading other than heading 8431, which covers principal parts of such machinery, and still receive 

the NAFTA preferential rate of duty. If such parts are used in producing the machinery, the machinery must meet the

regional value content requirement.

The proposed modification is liberalizing because it removes the regional value content requirement and would allow 

all such machinery to be made from non-originating inputs of any subheading (other than that covering the finished 

good), including parts covered under heading 8431 that are principally used for this finished product group. This 

change would also allow one type of machine to be made into another type of machine within subheadings 8428.10-

8430.69.

Effect: The proposed modification would have no effect on U.S. imports under NAFTA and on total U.S. imports of 

the covered products because the U.S. NTR rates of duty are free.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico has 27 tariff items covered by the rule with MFN rates of duty ranging from 5 to 15 percent ad 

valorem; the remaining tariff items for Mexico and all of the tariff items covered by the rule for Canada are free of duty 

on an MFN basis. In 2012, U.S. exports to Mexico under the 27 dutiable tariff items accounted for just 3.4 percent of 

U.S. exports to NAFTA partners of products covered by the proposed rule. If MFN rates of duty are applied to all U.S. 

exports of goods covered by this rule to the NAFTA partners, the the effective tariff was 0.5 percent ad valorem in 

2012.

1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-243

CHAPTER 84

TABLE 3.149 Parts suitable for use principally with heavy-duty lifting, self-propelled earth movers, and rock drilling 

equipment

HTS no. Existing rule Proposed rule Probable effect advice

8431.10–

8431.49

74. (A) A change to 

subheading 8431.10 from any 

other heading; or

(B) No required change in 

tariff classification to 

subheading 8431.10, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

 

75. A change to subheading 

8431.20 from any other 

heading.

76. (A) A change to 

subheading 8431.31 from any 

other heading; or

(B) No required change in 

tariff classification to 

subheading 8431.31, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

77. (A) A change to 

subheading 8431.39 from any 

other heading; or

(B) No required change in 

tariff classification to 

subheading 8431.39, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8431.10 

through 8431.49 from any other 

heading; or

No required change in tariff 

classification to any of subheading 

8431.10 through 8431.49, 

provided there is a regional value 

content of not less than:

(a) 60 percent where the

transaction value method is used, 

or

(b) 50 percent where the net cost

method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None
3-244

CHAPTER 84

TABLE 3.149—Continued

HTS no. Existing rule Proposed rule Probable effect advice

8431.10–

8431.49

78. A change to subheadings 

8431.41 through 8431.42 

from any other heading.

79. (A) A change to 

subheading 8431.43 from any 

other heading; or

(B) No required change in 

tariff classification to 

subheading 8431.43, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used.

80. (A) A change to 

subheading 8431.49 from any 

other heading; or

(B) No required change in 

tariff classification to 

subheading 8431.49, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

TABLE 3.149: Modification and effect

Modification: The current NAFTA rules of origin allow the use of non-originating inputs classified in other headings to 

make principal parts of heavy-duty lifting, self-propelled earth movers, and rock drilling equipment (subheadings 

8431.20, 8431.41, and 8431.42). The proposed modification is liberalizing because it would remove the requirement 

for a change in tariff classification, provided the final good meets the regional value content requirement. 

The proposed modification would make no substantive change to the current NAFTA rule for other principal parts of 

machinery covered under subheadings 8431.10, 8431.31, 8439.39, 8431.43, and 8431.49.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these parts would not be affected by the proposed rule change.
3-245

CHAPTER 84

TABLE 3.150 Agricultural, horticultural, or forestry machinery for soil preparation or cultivation and lawn or sports 

ground rollers

HTS no. Existing rule Proposed rule Probable effect advice

8432.10–

8432.80

81. (A) A change to 

subheadings 8432.10 through 

8432.80 from any other 

heading; or

(B) A change to subheadings 

8432.10 through 8432.80 

from subheading 8432.90, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8432.10 

through 8432.80 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.150: Modification and effect

Modification: The current rule imposes limitations on the types of non-originating inputs that may be used in making 

agricultural, horticultural, or forestry machinery of subheadings 8432.10–8432.80 for the final good to qualify for 

NAFTA preferences. Non-originating inputs classified in headings other than 8432 may be used, but if the covered 

machinery is made from any non-originating input classified in subheading 8432.90 (parts of the agricultural, 

horticultural, or forestry machinery), the final product is subject to a regional value content requirement.

The proposed modification is liberalizing because it removes the regional value content requirement and allows soil 

preparation machinery and other machinery of these subheadings to be made from non-originating inputs from any 

subheading (other than that covering the finished good). It would also allow one type of machine to be made into 

another type of machine within subheadings 8432.10–8432.80.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. As 

a result, U.S. production of this machinery would not be affected by the proposed rule change.
3-246

CHAPTER 84

TABLE 3.151 Harvesting or threshing machinery

HTS no. Existing rule Proposed rule Probable effect advice

8433.11–

8433.60

83. (A) A change to 

subheadings 8433.11 through 

8433.60 from any other 

heading; or

(B) A change to subheadings 

8433.11 through 8433.60 

from subheading 8433.90, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8433.11 

through 8433.60 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.151: Modification and effect

Modification: The current rule imposes limitations on the types of non-originating inputs that may be used in making 

harvesting or threshing machinery of subheadings 8433.11–8433.60 for the final good to qualify for NAFTA 

preferences. Non-originating inputs classified in headings other than 8433 may be used, but if the covered machinery 

is made from any non-originating input classified in subheading 8433.90 (parts of harvesting or threshing machinery), 

the final product is subject to a regional value content requirement.

The proposed modification is liberalizing because it removes the regional value content requirement and allows 

harvesting and threshing machinery to be made from non-originating inputs from any subheading (other than that 

covering the finished good). It would also allow one type of machine to be made into another type of machine within 

subheadings 8433.11–8433.60. 

Effect: The proposed modification would have no effect on U.S. imports under NAFTA and on total U.S. imports of 

harvesting or threshing machinery because the U.S. NTR rates of duty are free.

The proposed modification would likely result in a negligible increase in U.S. exports under NAFTA and on total U.S. 

exports. Although Mexico has two tariff items covered by the rule with MFN rates of duty of 15 percent ad valorem, 

the remaining tariff items for Mexico and all of the tariff items covered by the rule for Canada are free of duty on an 

MFN basis. In 2012, U.S. exports to Mexico under the two dutiable tariff items accounted for 1 percent of U.S. exports 

to NAFTA partners of products covered by the proposed rule. If MFN rates of duty are applied to U.S. exports of 

goods covered by this rule to the NAFTA partners, the effective tariff was less than 0.5 percent ad valorem in 2012.

1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-247

CHAPTER 84

TABLE 3.152 Presses, crushers, or similar machinery, used in the manufacture of wine, cider, fruit juices, or similar 

beverages

HTS no. Existing rule Proposed rule Probable effect advice

8435.10 87. (A) A change to 

subheading 8435.10 from any 

other heading; or

(B) A change to subheading 

8435.10 from subheading 

8435.90, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to a good of 

subheading 8435.10 from any 

other good within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.152: Modification and effect

Modification: Under the current NAFTA rule, non-originating inputs to presses, crushers, or similar machinery used 

in the manufacture of certain beverages must be classified under subheadings outside of heading 8435 for the final 

product to receive the NAFTA preferential rate of duty. Alternatively, presses and crushers classified under 

subheading 8435.10 made from non-originating inputs classified under subheading 8435.90 can receive the 

preferential rate of duty provided the finished machinery meets the regional value content requirement. The proposed 

modification is liberalizing because it eliminates the regional value content requirement for presses, crushers, or 

similar machinery made of non-originating parts classified under subheading 8435.90 (e.g., fabricated stainless steel 

hoppers for grapes, augers, and fabricated metal bases) and allows inputs or conversion of goods from within the 

subheading as well as from any other subheading.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. As 

a result, U.S. production of these presses, crushers, or similar machinery would not be affected by the proposed rule 

change.
3-248

CHAPTER 84

TABLE 3.153 Other agricultural, horticultural, forestry, poultry-keeping and beekeeping machinery

HTS no. Existing rule Proposed rule Probable effect advice

8436.10–

8436.80

89.(A) A change to 

subheadings 8436.10 through 

8436.80 from any other 

heading; or 

(B) A change to subheadings 

8436.10 through 8436.80 

from subheadings 8436.91 

through 8436.99, whether or 

not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8436.10 

through 8436.80 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.153: Modification and effect

Modification: Under the current rule, other agricultural, horticultural, forestry, poultry-keeping, and beekeeping 

machinery (subheadings 8436.10–8436.80) can be made from non-originating inputs from any heading other than 

heading 8436, which covers principal parts of such machinery, and still qualify to receive the NAFTA preferential rate 

of duty. If such parts are used in producing the machinery, the machinery must meet the regional value content 

requirement.

The proposed modification is liberalizing because it removes the regional value content requirement and would allow 

all such machinery to be made from non-originating inputs of any subheading (other than that covering the finished 

good), including parts covered under heading 8436 that are principally used for this finished product group. This 

change would also allow one type of machine to be made into another type of machine within subheadings 8436.10–

8436.80. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. As 

a result, U.S. production of this machinery would not be affected by the proposed rule change.
3-249

CHAPTER 84

TABLE 3.154 Printing machinery used for printing by means of plates, cylinders, and other printing components of 

heading 8442

HTS no. Existing rule Proposed rule Probable effect advice

8443.11–

8443.19

103. (A) A change to 

subheadings 8443.11 through 

8443.19 from any other 

heading; or

(B) A change to subheadings 

8443.11 through 8443.19 

from subheading 8443.91, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8443.11 

through 8443.19 from any other 

heading; or

A change to subheading 8443.11 

through 8443.19 from any other 

subheading within that group or 

subheading 8443.91, whether or 

not there is also a change from 

any other heading, provided there 

is a regional value content of not 

less than:

(a) 60 percent where the 

transaction value method is used; 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.154: Modification and effect

Modification: Under the current rule, printing machinery composed of plates, cylinders, and other printing 

components (subheadings 8443.11–8443.19) can be made from non-originating inputs or goods classified in a 

heading other than heading 8443 and still qualify to receive the NAFTA preferential rate of duty. Alternatively, when 

printing machinery parts (subheading 8443.91) are used as inputs, the finished printing machinery must meet the 

regional value content requirement. The proposed modification is liberalizing because it would allow the use of nonoriginating inputs from subheadings within the group (other than that covering the finished good) and allow equipment 

conversions for goods classified within subheadings 8443.11–8443.19 when a subheading-level change occurs and 

the finished good meets the regional value content requirement. 

Effect: The proposed modification would have no effect on U.S. imports under NAFTA or on total U.S. imports 

because the U.S. NTR rates of duty for the various printing machinery classified in subheadings 8443.11 through 

8443.19 are free. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. In 2012, more than 99 percent of U.S. exports of these products to NAFTA partners entered under tariff

items that were free of duty on an MFN basis. U.S. exports of these goods to Canada, where MFN duty rates for the 

goods are free, accounted for 46 percent of U.S. exports to NAFTA partners in 2012. MFN rates for these goods in 

Mexico are also free, except for those under subheading 8443.13 (other offset printing machinery), which are subject 

to a duty of 5 percent ad valorem. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.

 
3-250

CHAPTER 84

TABLE 3.155 Other printers, copying machines, and facsimile machines, whether or not combined

HTS no. Existing rule Proposed rule Probable effect advice

8443.31–

8443.39

104. (A) A change to machines, 

which perform the function of 

facsimile transmission/

reception, of subheading 

8443.31 from any other good of 

subheading 8443.31 or any 

other subheading, except from 

parts of facsimile machines 

specified in chapter rule 4 to 

chapter 84;

(B) A change to other machines, 

which perform the function of 

printing by means of laser 

technology and produce more 

than 20 pages per minute, of 

subheading 8443.31 from any 

other good of subheading 

8443.31 or any other

subheading, except from parts 

of printers of subheading 

8443.31 specified in chapter 

rule 3 to chapter 84, printed

circuit assemblies (PCAs) of 

subheading 8443.99 or 

subheading 8471.49;

(C) A change to other machines, 

which perform the function of 

printing by means of laser 

technology, of subheading

8443.31 from any other good of 

subheading 8443.31 or any 

other subheading, except from 

PCAs of subheading 8443.99 or 

subheading 8471.49;

(D) A change to other machines, 

which perform the function of 

printing by means of light bar 

type electronic technology, of

subheading 8443.31 from any 

other good of subheading 

8443.31 or any other 

subheading, except from parts 

of printers of subheading 

8443.31 specified in chapter 

rule 3 to chapter 84, PCAs of 

subheading 8443.99 or 

subheading 8471.49;

A change to a good of any of 

subheading 8443.31 through 

8443.39 from any other good 

within that subheading or any 

other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible
3-251

CHAPTER 84

TABLE 3.155—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(E) A change to other machines, 

which perform the function of 

printing by means of ink-jet 

technology, of subheading 

8443.31 from any other good of 

subheading 8443.31 or any 

other subheading, except from 

parts of printers of subheading 

8443.31 specified in chapter 

rule 3 to chapter 84 or 

subheading 8471.49;

(F) A change to other machines, 

which perform the function of 

printing by means of thermal 

transfer technology, of 

subheading 8443.31 from any 

other good of subheading 

8443.31 or any other 

subheading, except from parts 

of printers of subheading 

8443.31 specified in chapter 

rule 3 to chapter 84 or 

subheading 8471.49;

(G) A change to other 

machines, which perform the 

function of printing by means of 

ionographic technology, of 

subheading 8443.31 from any 

other good of subheading 

8443.31 or any other 

subheading, except from parts 

of printers of subheading 

8443.31 specified in chapter 

rule 3 to chapter 84 or 

subheading 8471.49; or

(H) A change to any other good 

of subheading 8443.31 from 

machines which perform the 

function of facsimile 

transmission/reception of 

subheading 8443.31 or any 

other subheading, except from 

subheadings 8471.49 or 

8471.60.

105. (A) A change to facsimile 

machines of subheading 

8443.32 from any other good of 

subheading 8443.32 or any 

other subheading, except from 

parts of facsimile machines 

specified in chapter rule 4 to 

chapter 84;
3-252

CHAPTER 84

TABLE 3.155—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(B) A change to laser printers 

capable of producing more than 

20 pages per minute of 

subheading 8443.32 from any 

other good of subheading 

8443.32 or any other 

subheading, except from parts 

of printers of subheading 

8443.32 specified in chapter 

rule 3 to chapter 84, printed 

circuit assemblies (PCAs) of 

subheading 8443.99 or 

subheading 8471.49;

(C) A change to other laser 

printers of subheading 8443.32 

from any other good of 

subheading 8443.32 or any 

other subheading, except from 

PCAs of subheading 8443.99 or 

subheading 8471.49;

(D) A change to light bar type 

electronic printers of 

subheading 8443.32 from any 

other good of subheading 

8443.32 or any other 

subheading, except from parts 

of printers of subheading 

8443.32 specified in chapter 

rule 3 of chapter 84, PCAs of 

subheading 8443.99 or 

subheading 8471.49;

(E) A change to ink-jet printers 

of subheading 8443.32 from any 

other good of subheading 

8443.32 or any other 

subheading, except from parts 

of printers of subheading 

8443.32 specified in chapter 

rule 3 to chapter 84 or 

subheading 8471.49;

(F) A change to thermal transfer 

printers of subheading 8443.32 

from any other good of 

subheading 8443.32 or any 

other subheading, except from 

parts of printers of subheading 

8443.32 specified in chapter 

rule 3 to chapter 84 or 

subheading 8471.49;
3-253

CHAPTER 84

TABLE 3.155—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(G) A change to ionographic

printers of subheading 8443.32 

from any other good of 

subheading 8443.32 or any 

other subheading, except from 

parts of printers of subheading 

8443.32 specified in chapter 

rule 3 to chapter 84 or 

subheading 8471.49;

(H) A change to teleprinters of 

subheading 8443.32 from any 

other good of subheading 

8443.32 or any other 

subheading, provided that, with 

respect to PCAs or parts 

incorporating PCAs of 

subheading 8443.99:

(1) except as provided in 

subparagraph (b), for each 

multiple of nine PCAs, or any 

portion thereof, that is contained 

in the good, only one PCA may 

be a non-originating PCA, and

(2) if the good contains less 

than three PCAs, all of the 

PCAs must be originating PCAs; 

or 

(I) A change to any other good 

of subheading 8443.32 from 

machines which perform the 

function of facsimile 

transmission/reception of 

subheading 8443.32, 

teleprinters of subheading 

8443.32 or any other 

subheading, except from 

subheadings 8471.49 or 

8471.60.

105A. (A) A change to direct 

process electrostatic 

photocopying apparatus of 

subheading 8443.39 from any 

other good of subheading 

8443.39 or any other 

subheading;

(B) A change to indirect process 

electrostatic photocopying 

apparatus of subheading 

8443.39 from any other good of 

subheading 8443.39 or any 

other subheading, except from
3-254 

CHAPTER 84 

TABLE 3.155—Continued 

HTS no. Existing rule Proposed rule Probable effect advice 

 parts of indirect electrostatic 

photocopying apparatus 

specified in chapter rule 5 to 

chapter 84; 

(C) A change to photocopying 

apparatus incorporating an 

optical system of subheading 

8443.39 from any other good of 

subheading 8443.39 or any 

other subheading; 

(D) A change to contact type 

photocopying apparatus of 

subheading 8443.39 from any 

other good of subheading 

8443.39 or any other 

subheading; 

(E) A change to thermo-copying 

apparatus of subheading 

8443.39 from any other good of 

subheading 8443.39 or any 

other subheading; 

(F) A change to stand-alone 

digital copiers of subheading 

8443.39 from any other 

heading, except from heading 

8473; or 

(G) A change to stand-alone 

digital copiers of subheading 

8443.39 from heading 8473, 

whether or not there is also a 

change from any other heading, 

provided there is a regional 

value content of not less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

 

TABLE 3.155: Modification and effect 

Modification: The proposed rule for headings 8443.31 thorough 8443.39 covers other printers, copying machines, 

and facsimile (fax) machines, whether or not combined. The complexity of the current rules result from the updating 

of NAFTA rules in effect before 2007, when heading 8443 was restructured and substantial changes occurred in the 

classification of printing machinery in the international nomenclature. These goods are currently covered by a number 

of rules that specify origin requirements for specific goods. Existing rules 104 (A) through (H) cover goods classified 

under subheading 8443.31, which are machines that perform two or more of the printing, copying, or facsimile 

transmission functions and are capable of connecting to an automatic data processing machine or a network. Existing 

rules 105 (A) through (I) cover other printers, copying machines, or facsimile machines capable of connecting to an 

automatic data processing machine or to a network (subheading 8443.32). Existing rules 105A (A) through (G) cover 

 
3-255 

TABLE 3.155: Modification and effect—Continued

goods classified under subheading 8443.39, described as printers, copying machines, or facsimile machines other 

than those capable of connecting to an automatic data processing machine or to a network. 

Existing rules 104 (A) through (H), 105 (A) through (G) and (I), and 105A (B) allow production inputs to include any 

other good from within the same subheading or any other subheading to confer origin, except certain parts as 

specified in each rule. Under these rules, the following parts must be produced in North America to confer origin: 

parts for goods of subheading 8443.31 or 8443.32 specified in chapter rule 3 to chapter 84; parts for facsimile 

machines specified in chapter rule 4 to chapter 84; parts of indirect electrostatic photocopying apparatus specified in 

chapter rule 5 to chapter 84; printed circuit assemblies (PCAs) of subheadings 8443.99 and 8471.49; and automatic 

data processing input/output units of subheading 8471.60. The proposed modification would combine all of the 

existing rules into one rule and would liberalize origin criteria for rules 104 (A) through (H), 105 (A) through (G) and 

(I), and 105A (B) by dropping the exception for the specified parts. 

Existing rule 105 (H) for teleprinters allows a limited number of PCA inputs of subheading 8443.99 to confer origin. 

The proposed modification is liberalizing because it would drop the restriction on the number of non-originating PCA 

inputs of subheading 8443.99 allowed in the manufacture of teleprinters. 

Finally, existing rule 105A (F) and (G) for stand-alone digital copiers requires production inputs to be classified under 

a different heading, except parts and accessories of heading 8473, which may be non-originating provided a regional 

value content requirement for the stand-alone digital copier is met. The proposed modification is liberalizing because 

it would allow manufacturing inputs classified under the same subheading or any other subheading, including the 

parts and accessories of heading 8473, to confer origin, and drop the regional value content requirement applied 

when using parts and accessories of heading 8473.The proposed modification would not change existing rule 105A 

for (A) direct-process electrostatic photocopying apparatus, (C) photocopying apparatus, (D) contact-type 

photocopying apparatus, or (E) thermocopying apparatus, because the existing and proposed rule language is the 

same for each of these goods. 

Effect: The proposed modification would have no effect on U.S imports under NAFTA or on total U.S. imports 

because the U.S. NTR rates of duty are free for the various printers, copying machines, and facsimile machines 

(whether or not combined) classified in subheadings 8443.31 through 8443.39. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. More than 99 percent of U.S. exports of these goods to NAFTA countries entered under tariff items that were 

free of duty on an MFN basis. MFN duty rates in Canada for these goods are free, and MFN rates for these goods in 

Mexico range from free to 15 percent ad valorem. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. 
3-256

CHAPTER 84

TABLE 3.156 Parts and accessories of printing machinery used for printing by means of plates, cylinders, and other 

printing components of heading 8442

HTS no. Existing rule Proposed rule Probable effect advice

8443.91 105B. (A) A change to 

accessories for uses ancillary 

to printing of subheading 

8443.91 from subheading 

8443.99 or any other heading; 

or

(B) A change to accessories 

for uses ancillary to printing of 

subheading 8443.91 from 

parts of subheading 8443.91, 

whether or not there is also a 

change from subheading 

8443.99 or any other heading, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

(C) A change to parts of 

subheading 8443.91 from 

subheading 8443.99 or any 

other heading. 

A change to subheading 8443.91 

from any other subheading; or

A change to a good of subheading 

8443.91 from any other good 

within that subheading, whether or 

not there is also a change from 

any other subheading, provided 

there is a regional value content of 

not less than:

(a) 60 percent where the 

transaction value method is used; 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.156: Modification and effect

Modification: Before 2007, the goods now classified in subheading 8443.91 were provided for in subheadings 

8443.60 (machines for uses ancillary to printing) and 8443.90 (parts). The rules of origin were updated to reflect 

WCO changes to the HS in 2007 and to ensure that tariff changes available under the old subheadings were still 

recognized. Under the current rule, subdivisions (A) and (C) require non-originating inputs for parts or accessories 

used to produce printing machinery (using plates, cylinders and other printing components (heading 8442)) to be 

classified under subheading 8443.99 or any other heading for the printing machinery to receive the NAFTA 

preferential rate of duty. Alternatively, subdivision (B) allows non-originating inputs for ancillary accessories to printing 

to be considered originating if they are parts from the same subheading and a regional value content requirement is 

met; this option is not extended to other goods of subheading 8443.91. All of the goods covered by the subheading 

could use either rule, depending on the situation. The proposed modification is liberalizing because it would allow the 

use of non-originating inputs from any other subheading, and it would retain the option to allow the use of nonoriginating inputs from within the same subheading for all goods of subheading 8443.91, provided the final product 

meets the regional value content requirement. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. 

As a result, U.S. production of these goods would not be affected by the proposed rule change.
3-257

CHAPTER 84

TABLE 3.157 Parts and accessories of other printers, copying machines, and facsimile machines, whether or not 

combined

HTS no. Existing rule Proposed rule Probable effect advice

8443.99 105C. (A) A change to 

accessories for uses ancillary to 

printing of subheading 8443.99 

from any other heading; or

(B) A change to accessories for 

uses ancillary to printing of 

subheading 8443.99 from parts 

of subheading 8443.99, whether 

or not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less

than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used;

(C) A change to printed circuit 

assemblies (PCAs) of 

subheading 8443.99 from any 

other good of subheading 

8443.99 or any other 

subheading;

(D) A change to parts or 

accessories, including face 

plates and lock latches, of PCAs 

of subheading 8443.99 from any

other good of subheading 

8443.99 or any other 

subheading;

(E) A change to other parts for 

goods of subheading 8443.31 or 

8443.32 specified in chapter 

rule 3 to chapter 84 of

subheading 8443.99 from any 

other good of subheading 

8443.99 or any other 

subheading;

(F) A change to parts or 

accessories of subheading 

8443.99 for goods, other than 

facsimile machines, of 

subheadings 8443.31 through 

8443.32, from any other good of 

subheading 8443.99 or any 

other heading;

A change to a good of 

subheading 8443.99 from any 

other good within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None
3-258

CHAPTER 84

TABLE 3.157—Continued

HTS no. Existing rule Proposed rule Probable effect advice

(G) No required change in tariff 

classification to other parts or 

accessories of subheading 

8443.99 for machines, which 

perform the function of printing, 

of subheading 8443.31 or 

printers of subheading 8443.32, 

provided there is a

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used; or

(2) 50 percent where the net 

cost method is used;

(H) A change to parts for 

facsimile machines specified in 

chapter rule 4 to chapter 84 of 

subheading 8443.99 from any 

other good of subheading 

8443.99 or any other 

subheading;

(I) A change to parts 

incorporating PCAs for 

teleprinters of subheading 

8443.99 from any other good of 

subheading 8443.99 or any 

other subheading, provided that, 

with respect to PCAs or parts 

incorporating PCAs of 

subheading

8443.99:

(1) except as provided in 

subparagraph (b), for each 

multiple of nine PCAs, or any 

portion thereof, that is contained 

in the good, only one PCA may 

be a non-originating PCA, and

(2) if the good contains less 

than three PCAs, all of the 

PCAs must be originating PCAs;

(J) A change to automatic 

document feeders, paper 

feeders or sorters for 

photocopying apparatus 

incorporating an optical system, 

contact type photocopying 

apparatus or thermo-copying 

apparatus of subheading 

8443.99 from any other good of 

subheading 8443.99, except 

from parts other than those 
3-259

CHAPTER 84

TABLE 3.157—Continued

HTS no. Existing rule Proposed rule Probable effect advice

specified in chapter rule 5 to 

chapter 84;

(K) A change to parts of 

photocopying apparatus 

specified in chapter rule 5 to 

chapter 84 of subheading 

8443.99 from any other good of 

subheading 8443.99 or any 

other heading, provided that at 

least one of the components of 

such assembly named in 

chapter rule 5 to chapter 84 is 

originating;

(L) A change to other parts and 

accessories for photocopying 

apparatus incorporating an 

optical system, contact type 

photocopying apparatus or 

thermo-copying apparatus of 

subheading 8443.99 from any 

other subheading;

(M) A change to other parts for 

facsimile machines or 

teleprinters of subheading 

8443.99 from any other 

heading; or

(N) No required change in tariff 

classification to other parts for 

facsimile machines or 

teleprinters of subheading 

8443.99, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

TABLE 3.157: Modification and effect

Modification: In 2007, the WCO restructured HS heading 8443, and many goods were reclassified into the heading 

from other headings and chapters. Before 2007 the products of current subheading 8443.99 were classified in 

numerous other subheadings, including subheadings 8473.30, 8473.90, 8517.90, 9009.91, 9009.92, and many more. 

As a result, the rules of origin were updated to permit the tariff changes previously recognized under former tariff 

provisions. Existing rule subdivisions (A) through (N) for parts and accessories of other printers, copying machines, 

and facsimile machines, whether or not combined, of subheading 8443.99 specify origin criteria for their particular 

corresponding good(s). Parts incorporating printed circuit assemblies (PCAs) present additional complexity in the 

existing rules. Most of them require non-originating inputs to be classified in a different heading or subheading, and/or 

to meet certain other conditions, such as regional value content requirements, for the product to be considered 

originating.
3-260

TABLE 3.157: Modification and effect—Continued

Existing rule subdivisions (A) and (M) allow non-originating inputs from any other heading to be used. Subdivisions 

(B), (F), (I), (J), and (K) allow non-originating inputs to be from any other good of subheading 8443.99 but include 

conditional provisions to confer origin, including a regional value content requirement, limits on the number of such 

inputs, and/or specific exceptions to such inputs. Subdivision (L) requires specified non-originating inputs to be 

classified in a different subheading to confer NAFTA origin. The proposed modification is liberalizing for the products 

covered by these rule subdivisions because it would allow these goods to be made with non-originating inputs from 

any subheading, it would allow a change to a good within subheading 8443.99, and it would also eliminate the 

conditional provisions. 

Subdivisions (G) and (N) allow non-originating inputs from within the same subheading, but the final product must 

meet a regional value content requirement. For these two subdivisions, the proposed modification may or may not be 

liberalizing, depending on the manufacturing operation, because the modification would require a change from within 

the subheading or from any other subheading but would drop the regional value content requirement. 

 

The proposed modification would make no substantive change to the origin standards in existing subdivisions (C) for 

PCAs; (D) for parts or accessories, including face plates and lock latches of PCAs; (E) for parts for goods of 

subheading 8443.31 or 8443.32 specified in chapter rule 3 to chapter 84; and (H) for parts for facsimile machines 

specified in chapter rule 4 to chapter 84.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. 

As a result, U.S. production of these goods would not be affected by the proposed rule change.
3-261

CHAPTER 84

TABLE 3.158 Hydraulic presses

HTS no. Existing rule Proposed rule Probable effect advice

8462.91 175. A change to tariff item 

8462.91.40 from any other 

heading, except from more 

than one of the following:

(A) subheadings 8413.50 

through 8413.60,

(B) tariff items 8466.94.20, 

8466.94.55 or 8466.94.65,

(C) tariff item 8483.50.60,

(D) subheadings 8501.32 or 

8501.52,

(E) subheading 8537.10.

176. A change to subheading 

8462.91 from any other 

heading, except from tariff 

items 8466.94.20, 8466.94.55, 

8466.94.65 or 8483.50.60.

A change to subheading 

8462.91 from any other 

heading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.158: Modification and effect

Modification: The current NAFTA rule allows numerically controlled (NC) hydraulic presses classified under tariff 

item 8462.91.40 to be considered originating when they are made from non-originating parts from other headings,

with the exception of parts of subheadings 8413.50-8413.60, 8501.32, 8501.52, and 8537.10, and tariff items 

8466.94.20, 8466.94.55, 8466.94.65; and 8483.50.60, all of which must be made in North America. For all other 

hydraulic presses classified under subheading 8462.91, the use of non-originating parts classified in any other 

heading is allowed, except for those classified in certain tariff items of heading 8466 (e.g., rough cast-iron castings, 

and fabrications for the base, frame, and chambers) and bearings classified under tariff item 8483.50.60.

The proposed modification is liberalizing because it would allow the use of previously excluded parts, accessories, 

and bearings to confer origin; the currently excluded subheadings and tariff items cover the major essential parts 

used in these presses.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports of these goods from NAFTA partners for subheading 8462.91 was

less than 0.5 percent ad valorem in 2012. In that year, U.S. imports of these good from NAFTA partners accounted 

for almost 7 percent of total U.S. imports under subheading 8462.91, and those from Canada accounted for virtually 

all such imports. Approximately 97 percent of such imports from Canada were entered under NAFTA preferential duty 

rates.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Canada’s MFN duty rates for tariff items within subheading 8462.91 are free. Mexico’s MFN duty rates within 

subheading 8462.91 are free with the exception of one tariff item with a rate of 15 percent ad valorem, which 

accounted for 41 percent of Mexico’s imports from the United States in 2012. Using estimated duties paid on U.S. 

exports of the subject goods to Mexico and total U.S. exports of these goods to NAFTA partners, the effective tariff on 

U.S. exports of these products to NAFTA partners was 1.4 percent ad valorem in 2012.1

The effect on U.S. production is negligible because the net effect on U.S. trade is expected to be negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Mexican 

International Trade Integral Information System (SIICEX).
3-262

CHAPTER 84

TABLE 3.159 Portable automatic data processing machines that weigh not more than 10 kg and consist of at least a 

central processing unit, a keyboard, and a display (e.g., laptops, notebook computers, and personal digital assistants)

HTS no. Existing rule Proposed rule Probable effect advice

8471.30 190. (A) A change to 

analogue or hybrid automatic 

data processing machines of 

subheading 8471.30 from any 

other heading, except from 

heading 8473;

(B) A change to analogue or 

hybrid automatic data 

processing machines of 

subheading 8471.30 from 

heading 8473, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

(C) A change to any other 

good of subheading 8471.30 

from analogue or hybrid 

automatic data processing 

machines of subheading 

8471.30 or any other

subheading, except from 

subheadings 8471.41 through 

8471.50.

A change to a good of subheading 

8471.30 from any other good 

within that subheading or any 

other subheading, except from 

subheading 8471.41 through 

8471.50.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.159: Modification and effect

Modification: In 2007, the WCO modified the HS by deleting subheading 8471.10, which covered analogue or hybrid 

automatic data processing (ADP) machines, and by reclassifying such goods into subheading 8471.30. The rules of 

origin were modified after this change to permit previously recognized tariff changes to continue to confer origin. The 

current rule for ADP machines (subheading 8471.30) impose limitations on the use of non-originating parts (heading 

8473) in the manufacture of these machines. Specifically, ADP machines made with parts of heading 8473 must meet 

a regional value requirement in order to qualify for NAFTA preferences. The current rule also permits a change from 

analogue or hybrid ADP machines of subheading 8471.30 or from goods of any other subheading, with certain 

exceptions, to other goods of subheading 8471.30. 

The proposed modification is liberalizing because it eliminates the regional value content requirement for the use of 

non-originating parts classified in heading 8473 in analogue or hybrid ADP machines. It also allows the use of nonoriginating inputs from all subheadings to manufacture analogue or hybrid ADP machines of subheading 8471.30, as 

well as all other machines of that subheading. The proposed modification would continue to exclude non-originating 

inputs from other ADP machines (subheadings 8471.41 and 8471.49) and processing units other than those of 

subheading 8471.41 or 8471.49 (subheading 8471.50). In addition, the proposed modification would allow possible 

machinery conversions involving the creation of any good within subheading 8471.30 from any other good within 

subheading 8471.30, including analogue or hybrid ADP machines made from any other good within the same 

subheading. 
3-263

TABLE 3.159: Modification and effect—Continued

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. As 

a result, U.S. production of these goods would not be affected by the proposed rule change.
3-264 

 CHAPTER 84 

TABLE 3.160 Other automatic data processing machines that comprise at least a central processing unit and an 

input and output unit within the same housing

HTS no. Existing rule Proposed rule Probable effect advice 

8471.41 191. (A) A change to 

analogue or hybrid automatic 

data processing machines of 

subheading 8471.41 from any 

other heading, except from 

heading 8473; 

(B) A change to analogue or 

hybrid automatic data 

processing machines of 

subheading 8471.41 from 

heading 8473, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used; or 

(C) A change to any other 

good of subheading 8471.41 

from analogue or hybrid 

automatic data processing 

machines of subheading 

8471.41 or any other 

subheading, except from 

subheading 8471.30, 8471.49 

or 8471.50. 

A change to a good of subheading 

8471.41 from any other good 

within that subheading or any 

other subheading, except from 

subheading 8471.30 or 8471.49 

through 8471.50. 

U.S. trade under NAFTA: 

 Imports: None 

 Exports: None 

U.S. total trade: 

 Imports: None 

 Exports: None 

U.S. production: None 

TABLE 3.160: Modification and effect 

Modification: In 2007, the WCO modified the HS by deleting subheading 8471.10, which covered analogue or hybrid 

automatic data processing (ADP) machines, and by reclassifying some goods of this subheading into subheading 

8471.41. The rules of origin were modified after this change so as to permit previously recognized tariff changes to 

continue to confer origin. The current rule for ADP machines of subheading 8471.41 impose limitations on the use of 

non-originating parts (heading 8473) in the manufacture of these machines, so that such parts either cannot be used 

(and must therefore originate in North America) or can be used only if a regional value content requirement is met for 

the finished ADP machines. The current rule also permits a change from analogue or hybrid ADP machines to other 

goods of subheading 8471.41, with certain exceptions. The exceptions largely mirror exclusions not allowed under 

the pre-2007 rules or tariff changes that were not allowed, and are part of an overall structure of rules that prevent 

one type of ADP machine from being converted to another in very simple ways, such as by combining component 

machines to make a system or disassembling a system into such components. 

The proposed modification is liberalizing because it would allow the use of non-originating parts classified in heading 

8473 with no limitations by eliminating the regional value content requirement in the manufacture of analogue or 

hybrid ADP machines, as well as the other machines of subheading 8471.41. It would allow non-originating material 

 
3-265

TABLE 3.160: Modification and effect—Continued

inputs from all subheadings to be used in the manufacture of analogue or hybrid ADP machines of subheading 

8471.41,1 as well as all other machines of that subheading, with the exception of inputs from portable ADP machines 

(subheading 8471.30), other ADP machines in the form of systems (subheading 8471.49), and certain processing 

units classified in subheading 8471.50. Finally, the new rule would allow possible machinery conversions to any good 

within subheading 8471.41 from any other good within subheading 8471.41, including analogue or hybrid ADP 

machines from any other good within the same subheading.2

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. 

As a result, U.S. production of these goods would not be affected by the proposed rule change.

 1 An analogue computer processes data by a continuous physical variable, such as electric current, compared with a digital 

computer, which processes data by discrete, localized physical signals such as the presence or absence of an electric current. A 

hybrid computer is the combination of an analogue and digital computer. Webster’s New World Dictionary. Third College 

Edition, Editors in Chief Victoria Neufeldt and David B. Guralnik, New York, NY: Simon & Schuster, Inc., 1988, 48 and 385 

and Access Science. “Analog Computer,” McGraw Hill Education, 2, http://www.accessscience.com (accessed May 8, 2013). 2 Although the proposed rule allows changes of goods from any other good within subheading 8471.41, there are no tariff 

item breakouts for goods classified under subheading 8471.41 but there are statistical suffix breakouts.
3-266

CHAPTER 84

TABLE 3.161 Machines and mechanical appliances having individual functions not elsewhere specified in 

chapter 84

HTS no. Existing rule Proposed rule Probable effect advice

8479.10–

8479.82

229. (A) A change to 

subheadings 8479.10 through 

8479.82 from any other 

heading; or

(B) A change to subheadings 

8479.10 through 8479.82 

from subheading 8479.90, 

whether or not there is also a 

change from any other 

heading, provided there is a

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8479.10 

through 8479.82 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.161: Modification and effect

Modification: The current rule for machines and mechanical appliances having individual functions not elsewhere 

specified in chapter 84 requires that all non-originating inputs used for the manufacture of these goods be classified 

under a different heading for the machine or appliance to receive the NAFTA preferential rate of duty. Alternatively, 

non-originating parts classified under subheading 8479.90 may be used, provided the finished good satisfies the 

regional value content requirement. 

The proposed modification is liberalizing because it allows the use of non-originating inputs from all subheadings 

(other than that covering the finished good), and it eliminates the regional value content requirement for these 

machines and appliances when made from non-originating inputs classified in subheading 8479.90.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, 99 percent of U.S. imports of the subject goods from Canada and Mexico entered free of duty. 

The United States has two tariff items—industrial robots not elsewhere specified (subheading 8479.50) and 

evaporative air coolers (subheading 8479.60)—covered by the rule with NTR rates of 2.5 and 2.8 percent ad valorem, 

respectively; the remaining tariff items are free of duty on an NTR basis. The effective tariff on U.S. imports from 

Canada and Mexico of goods covered by the proposed rule was less than 0.5 percent ad valorem in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico has 11 tariff items covered by the rule with MFN rates of duty of 5 or 15 percent ad valorem; the 

remaining tariff items for Mexico, and all of the tariff items covered by the rule for Canada, are free of duty on an MFN 

basis. In 2012, U.S. exports to Mexico under the 11 dutiable tariff items accounted for less than 10 percent of U.S. 

exports to NAFTA partners of goods covered by the proposed rule. If MFN rates of duty are applied to U.S. exports to 

NAFTA partners, the effective tariff on U.S. exports to NAFTA partners of goods covered by this rule was 1.3 percent

in 2012.

1 Canada and Mexico together account for 30 percent of U.S. total exports in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-267 

 CHAPTER 84 

TABLE 3.162 Trash compactors and other machines and mechanical appliances having individual functions not 

elsewhere specified in chapter 84

HTS no. Existing rule Proposed rule Probable effect advice 

8479.89 231. A change to tariff item 

8479.89.55 from any other 

tariff item, except from tariff 

item 8479.90.45, 8479.90.55, 

8479.90.65 or 8479.90.75, or 

combinations thereof. 

232. (A) A change to 

subheading 8479.89 from any 

other heading; or 

 

(B) A change to subheading 

8479.89 from subheading 

8479.90, whether or not 

there is also a change from 

any other heading, provided 

there is a regional value 

content of not less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

A change to trash compactors of 

subheading 8479.89 from any 

other good within that subheading 

or any other subheading; or 

A change to any other good of 

subheading 8479.89 from any 

other subheading. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.162: Modification and effect 

Modification: The current rule allows trash compactors (tariff item 8479.89.55) to be made from non-originating 

inputs from any other tariff item, except for parts for trash compactors (tariff items 8479.90.45, 8479.90.55, 

8479.90.65, and 8479.90.75), which must be made in North America in order for the trash compactor to receive the 

NAFTA preferential rate of duty. The proposed modification is liberalizing because it would allow non-originating 

inputs from any other tariff item to be used, including the parts for trash compactors. 

The current rule also allows other electromechanical appliances with self-contained electric motors (other than trash 

compactors), carpet sweepers, and other machines and mechanical appliances to be made from non-originating 

inputs classified in a different heading. Alternatively, non-originating parts of subheading 8479.90 may be used, 

provided the finished good meets the regional value content requirement. 

The proposed modification is liberalizing because it would allow non-originating inputs from all subheadings (other 

than that covering the finished good) to be used in the manufacture of these products, and it would eliminate the 

regional value content requirement. 

 

Effect: The proposed modification would have a negligible effect on U.S. imports under NAFTA and on U.S. total 

imports. The United States has three tariff items—trash compactors (tariff item 8479.89.55) and two basket 

categories (tariff items 8479.89.65 and 8479.89.98)—covered by the rule with NTR rates of 2.8 or 2.5 percent ad 

valorem; the remaining tariff items are free of duty on an NTR basis. In 2012, 85 percent of U.S. imports of goods 

covered by the proposed rule from Canada and Mexico entered free of duty. The effective tariff on imports from 

Canada and Mexico of these goods was less than 0.5 percent ad valorem in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico has 15 tariff items covered by the rule with MFN rates of duty of 5 or 15 percent ad valorem, and 

Canada has five tariff items covered by the rule with MFN rates of 7.5 percent ad valorem; the remaining tariff items 

for Mexico and Canada are free of duty on an MFN basis. In 2012, U.S. exports to Canada and Mexico under the 

dutiable tariff items accounted for 7 percent of U.S. exports to NAFTA partners of goods covered by the proposed 

 
3-268 

TABLE 3.162: Modification and effect—Continued

rule. If MFN rates of duty are applied to U.S. exports to NAFTA partners, the effective tariff on U.S. exports to NAFTA 

partners of goods covered by this rule was 0.7 percent ad valorem in 2012.1

 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

 1 Commission estimate based on Canadian and Mexican import data obtained from Global Trade Atlas. 
3-269

CHAPTER 84

TABLE 3.163 Pressure-reducing valves, valves for pneumatic or other transmissions, and check (return) valves

HTS no. Existing rule Proposed rule1 Probable effect advice

8481.10–

8481.30

239. (A) A change to 

subheadings 8481.10 through 

8481.80 from any other 

heading; or

(B) A change to subheadings 

8481.10 through 8481.80 

from subheading 8481.90, 

whether or not there is also a

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8481.10 

through 8481.30 from any other 

heading; or

A change to subheading 8481.10 

through 8481.30 from subheading 

8481.90, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not less 

than:

(a) 60 percent where the 

transaction value method is used, 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.163: Modification and effect

Modification: The proposed rules would make no substantive change to the current NAFTA rules for these 

subheadings.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rules are substantively the same as the current NAFTA rules.

 1 If the good provided for in subheading 8481.20 or 8481.30 is for use in a motor vehicle of Chapter 87, the provisions of 

Article 403 may apply.
3-270 

 CHAPTER 84 

TABLE 3.164 Taps, cocks, valves, and similar appliances (not including parts)

HTS no. Existing rule Proposed rule1 Probable effect advice 

8481.40–

8481.80 

239. (A) A change to 

subheadings 8481.10 through 

8481.80 from any other 

heading; or 

(B) A change to subheadings 

8481.10 through 8481.80 

from subheading 8481.90, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

A change to subheading 8481.40 

through 8481.80 from any other 

heading; or 

A change to subheading 8481.40 

through 8481.80 from subheading 

8481.90, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not less 

than: 

(a) 45 percent where the 

transaction value method is used, 

or 

(b) 35 percent where the net cost 

method is used. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.164: Modification and effect

Modification: The current NAFTA rule allows taps, cocks, valves, and similar appliances of subheadings 8481.40–

8481.80 to be made from non-originating inputs from headings other than heading 8481, or from non-originating parts 

of subheading 8481.90, provided that the final product meets the regional value content requirement. 

The proposed modification is liberalizing because it lowers the regional value content requirement for taps, cocks, 

valves, and similar appliances made from non-originating inputs classified in subheading 8481.90. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports, as the effective tariff on U.S. imports of these goods from NAFTA partners was 0.6 percent ad valorem 

in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. All of the tariff items covered by this rule for Canada are free of duty, while Mexico has seven tariff items 

covered by this rule with MFN rates ranging from 5 to 15 percent ad valorem. Using the estimated duties paid on U.S. 

exports to Mexico and total U.S. exports to NAFTA partners, the effective tariff on U.S. exports to NAFTA partners in 

2012 was 0.9 percent ad valorem.2

 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1

 If the good provided for in subheading 8481.80 is for use in a motor vehicle of chapter 87, the provisions of Article 403 

may apply. 2

 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Mexican 

International Trade Integral Information System (SIICEX). 
3-271 

 CHAPTER 84 

TABLE 3.165 Gears and gearing; ball or roller screws; gear boxes and other speed changers; flywheels and pulleys; 

clutches and shaft couplings; toothed wheels, chain sprockets and other transmission elements presented separately; 

and other parts

HTS no. Existing rule Proposed rule1 Probable effect advice 

8483.40–

8483.90 

246. (A) A change to 

subheadings 8483.40 through 

8483.60 from any subheading 

outside that group, except 

from subheadings 8482.10 

through 8482.80, tariff items 

8482.99.05, 8482.99.15 or 

8482.99.25, or subheading 

8483.90; or 

(B) A change to subheadings 

8483.40 through 8483.60 

from subheadings 8482.10 

through 8482.80, tariff items 

8482.99.05, 8482.99.15 or 

8482.99.25, or subheading 

8483.90, whether or not there 

is also a change from any 

subheading outside that 

group, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

247. A change to subheading 

8483.90 from any other 

heading. 

A change to subheading 8483.40 

through 8483.90 from any other 

subheading, including another 

subheading within that group. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.165: Modification and effect

Modification: Under the current rule, the transmission and gear products classified in subheadings 8483.40 through 

8483.60 cannot receive the preferential rate of duty if they incorporate non-originating bearings of subheadings 

8482.10 through 8482.80 or parts of bearings of tariff items 8482.99.05, 8482.99.15 or 8482.99.25, or parts of 

transmission and gear products of subheading 8483.90, unless the final good meets the regional value content 

requirement. For parts of subheading 8483.90, the rule requires any non-originating inputs to these products to be 

classified in any heading other than heading 8483. 

The proposed modification is liberalizing because it would allow these transmission and gear products to be made 

from non-originating inputs from any subheading (other than that covering the finished good) and eliminate the 

regional value content requirement. It would also allow the conversion from a transmission or gearing product within 

another subheading. 

 

 1

 Goods within this heading/subheading that are for use in motor vehicles of Chapter 87 may be subject to the net cost 

method of determining regional value content that is specific to certain automotive goods, as described in Article 403 of the 

NAFTA and HTS general note 12(d). 
3-272

TABLE 3.165: Modification and effect—Continued

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from NAFTA partners was 0.7 percent ad valorem in 2012. The U.S. 

NTR rates of duty range from free to 5.7 percent ad valorem. Tariff item 8483.40.70 has a compound rate of 25 cents 

per unit plus 3.9 percent ad valorem. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The MFN rate of duty imposed on these goods by Canada is free and Mexico’s rate of duty is free for all 

covered products excepted for two of the three tariff items in subheading 8483.60, which have rates of 10 percent 

and 15 percent ad valorem. More than 95 percent of U.S. exports to NAFTA partners enter under tariff items that are 

free of duty on an MFN basis. The effective tariff on all U.S exports to NAFTA partners of goods covered by this rule

was less than 0.5 percent ad valorem in 2012.

2

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-273

CHAPTER 84

TABLE 3.166 Machines and apparatus, and their parts and accessories, used for the manufacture of semiconductor 

wafers, semiconductor devices, electronic integrated circuits, or flat panel displays

HTS no. Existing rule Proposed rule Probable effect advice

8486.10–

8486.90

See appendix G. A change to a good of any 

subheading 8486.10 through 

8486.90 from any other good 

within that subheading or any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.166: Modification and effect

Modification: Goods within this range of subheadings are covered by the WTO’s Information Technology Agreement

(ITA), Attachment A, Section 2, for semiconductor manufacturing and testing equipment and parts thereof. The WCO 

revised the HS in 2007 and created a new heading 8486, which includes all machines and apparatus, and their parts 

and accessories, for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic 

integrated circuits, or flat panel displays. The creation of this separate heading pulled in goods from many other 

headings of the tariff schedule and necessitated the creation of complex rules that recognized all previously available 

tariff shifts as conferring origin. 

The current rules for subheadings 8486.10 through 8486.90 use 118 subrules to specify every type of machine and/or 

apparatus that the HS revision reclassified under heading 8486 from other headings. For instance, centrifuges for 

semiconductor manufacture are classified under heading 8486; all other centrifuges are classified under heading 

8421. As a result, the current rules for subheadings 8486.10 through 8486.90 do not allow a tariff shift from heading 

8421 to confer origin, though all other heading shifts do confer origin. This exclusion ensures that centrifuges from 

8421 would not gain origin simply through re-classification under 8486. The current rules apply this same method to 

many of the 8486 subheadings. The current rules frequently couple the exclusions with regional value content 

requirements to gain originating status.

The proposed modification for subheadings 8486.10 through 8486.90 would greatly simplify the rules by eliminating 

all the specifications and exceptions to allow a generic subheading-level tariff shift to confer origin. The proposed 

modification also would eliminate regional value content requirements. Thus, the proposed modification is liberalizing 

because it would allow the use of non-originating inputs from within a subheading, any other subheading within that 

group, and all other subheadings.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. As 

a result, U.S. production of this machinery would not be affected by the proposed rule change.
3-274

TABLES FOR HTS CHAPTER 85

TABLE 3.167 Electromechanical domestic appliances with self-contained electric motor (other than food grinders, 

processors, or mixers, or fruit or vegetable juice extractors)

HTS no. Existing rule Proposed rule Probable effect advice

8509.80 18. (A) A change to floor 

polishers or kitchen waste 

disposers of subheading 

8509.80 from any other good 

of subheading 8509.80 or any 

other subheading, except 

from heading 8501 or 

housings of subheading 

8509.90; 

(B) A change to floor 

polishers or kitchen waste 

disposers of subheading 

8509.80 from heading 8501 or 

housings of subheading 

8509.90, whether or not there 

is also a change from any 

other good of subheading 

8509.80 or any other 

subheading, provided there is 

a regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

(C) A change to any other 

good of subheading 8509.80 

from floor polishers or kitchen 

waste disposers of 

subheading 8509.80 or any 

other subheading.

(A) A change to a good of 

subheading 8509.80 from any 

other good within that subheading 

or any other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.167: Modification and effect 

Modification: The WCO restructured heading 8509 in 2007, when certain low-trade subheadings were combined into 

the residual subheading 8509.80 resulting in the complexity of the current NAFTA rule for that subheading. This rule

allows floor polishers (U.S. tariff item 8509.80.10) and kitchen waste disposers (U.S. tariff item 8509.80.20) made 

from non-originating electric motors and generators (heading 8501) and housings (subheading 8509.90, covering 

principal parts of goods of this heading) to receive the preferential rate of duty provided they meet the regional value 

content requirement. If the finished product does not meet the regional value content requirement, the electric motors 

and generators and housings must be made in North America. Non-originating inputs from other headings may be 

used in producing these goods. The current rule allows for other appliances, not including floor polishers or kitchen 

waste disposals, such as can openers, electric toothbrushes, and humidifiers (U.S. tariff item 8509.80.50), to be 

made from non-originating inputs of any other subheading or from floor polishers (U.S. tariff item 8509.80.10) or 

kitchen waste disposers (U.S. tariff item 8509.80.20). The principal inputs for these appliances would likely come 

from subheading 8509.80 or from another heading, as it is unlikely that floor polishers or kitchen waste disposers

would be converted into other appliances.

The proposed modification is liberalizing because it would remove all product-specific references and the regional 

value content requirement, and it would allow changes to any article within the subheading from any other article, 

regardless of classification.
3-275

TABLE 3.167: Modification and effect —Continued

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The NTR rates of duty on U.S. imports of the subject products range from free to 4.2 percent ad 

valorem. In 2012, the effective tariff on U.S. imports from NAFTA partners under this rule was less than 0.5 percent 

ad valorem.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Approximately 97 percent of U.S. exports to Canada and Mexico classified in subheading 8509.80 enter 

under tariff items with an MFN rate of free. If MFN rates of duty are applied to U.S. exports of goods covered by this 

rule to the NAFTA partners, the effective tariff on all U.S exports to NAFTA partners of these goods was less than 0.5 

percent ad valorem in 2012.

1

 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Canadian and Mexican import data 

obtained from Global Trade Atlas.
3-276

CHAPTER 85

TABLE 3.168 Electrical ignition and starting equipment

HTS no. Existing rule Proposed rule1 Probable effect advice

8511.10–

8511.80

22. (A) A change to 

subheadings 8511.10 through 

8511.80 from any other 

heading; or

(B) A change to subheadings 

8511.10 through 8511.80 

from subheading 8511.90, 

whether or not there is also a

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8511.10 

through 8511.80 from any other 

subheading, including another 

subheading within that group. 

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.168: Modification and effects

Modification: The current rule allows electrical ignition and starting equipment (subheadings 8511.10–8511.80) to be 

made from non-originating inputs from any heading other than heading 8511 to qualify for NAFTA preferential 

treatment. Alternatively, non-originating parts classified in subheading 8511.90 (parts, such as starter cables and 

rotors) may be used provided that the finished good meets the regional value content requirement. 

The proposed modification is liberalizing because it would allow any subheading-level tariff shift to confer origin, and 

it would eliminate the regional value content requirement. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

imports. The NTR rates of duty for U.S. imports of the subject products range from free to 2.5 percent ad valorem. In 

2012, the effective tariff was less than 0.5 percent ad valorem for U.S. imports of the subject goods from Canada and 

Mexico. Mexico accounted for 97 percent of U.S. NAFTA imports of these goods in 2012. U.S. imports from NAFTA 

partners represented nearly 41 percent of total U.S. imports of the goods in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. U.S. exports of electrical ignition and starting equipment were evenly split between NAFTA partners Canada 

and Mexico, and accounted for 68 percent of total U.S. exports of these goods in 2012. If MFN rates of duty are 

applied to U.S. exports to the NAFTA partners, the effective tariff on all U.S exports to NAFTA partners of goods 

covered by this rule was less than 0.5 percent ad valorem in 2012.

2 Canada imposes no duty on these goods from 

MFN countries. All but one of Mexico’s tariff items are also free of duty for MFN countries. Imports of certain types of 

spark plugs (Mexican tariff item 8511.10.03) are assessed a 5 percent ad valorem MFN rate of duty, and U.S. exports 

to Mexico of these goods represented less than 1 percent of U.S. exports of this equipment. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Goods within this heading/subheading that are for use in motor vehicles of chapter 87 may be subject to the net 

cost method of determining regional value content that is specific to certain automotive goods, as described in Article 

403 of the NAFTA and HTS general note 12(d). 2 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-277

CHAPTER 85

TABLE 3.169 Industrial or laboratory electric furnaces and ovens (not including parts)

HTS no. Existing rule Proposed rule Probable effect advice

8514.10–

8514.30

28. (A) A change to 

subheadings 8514.10 through 

8514.40 from any other 

heading; or

(B) A change to subheadings 

8514.10 through 8514.40 

from subheading 8514.90, 

whether or not there is also a

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net

cost method is used.

A change to subheading 8514.10 

through 8514.30 from any other 

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.169: Modification and effect

Modification: The proposed rule covers resistance-heated furnaces and ovens (subheading 8514.10); those 

functioning by induction or dielectric loss, such as microwaves (subheading 8514.20); and other furnaces and ovens, 

such as metal casting furnaces (subheading 8514.30). The current NAFTA rule allows covered goods to retain their 

originating status even when they use non-originating materials or components from other headings, or when they 

use non-originating principal parts of subheading 8514.90 provided the regional value content requirement is met for 

the finished goods. Among the principal parts classified in HTS subheading 8514.90 are crucibles, heating elements, 

housings, and other parts of furnaces and ovens, whereas parts of general use are provided for in other headings. 

For example, electric heating resistors fall in heading 8516 or 8545, according to the HS Explanatory Notes.

The proposed modification is liberalizing because it would remove the regional value content requirement and it 

would allow the use of non-originating inputs from other subheadings within the group covered by the rule 

(subheadings 8514.10 through 8514.30), as well as parts classified in subheading 8514.90. The proposed 

modification would allow the assembly of principal parts into complete furnaces or ovens or the conversion of one 

furnace or oven to another, to the extent that such conversion is possible.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The NTR duty rate one the goods covered by the proposed modification range from free to 4 percent ad 

valorem. The effective tariff on U.S. imports of the subject goods from NAFTA partners under this rule was less than 

0.5 percent ad valorem in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. All of the tariff items covered by this rule for Canada are free of duty, but Mexico has six tariff items covered 

by this rule with MFN rates ranging from 10 to 15 percent ad valorem. Using the estimated duties paid on U.S. 

exports of these goods to Mexico and total U.S. exports of these goods to NAFTA partners, the effective tariff on U.S. 

exports of the good to NAFTA partners in 2012 was 0.9 percent ad valorem.1

 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Mexican 

International Trade Integral Information System (SIICEX).
3-278

CHAPTER 85

TABLE 3.170 Industrial or laboratory electric furnaces and ovens (not including parts)

HTS no. Existing rule Proposed rule Probable effect advice

8514.40 28. (A) A change to 

subheadings 8514.10 through 

8514.40 from any other 

heading; or

(B) A change to subheadings 

8514.10 through 8514.40 

from subheading 8514.90, 

whether or not there is also a

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 8514.40 

from any other heading; or

A change to subheading 8514.40 

from subheading 8514.90, 

whether or not there is also a 

change from any other heading,

provided there is a regional value 

content of not less than: 

(a) 60 percent where the 

transaction value method is used, 

or

(b) 50 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.170: Modification and effect

Modification: The proposed rules would make no substantive changes to the current NAFTA rules.

Effect: The proposed modifications would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rules are substantively the same as the current NAFTA rules.
3-279

CHAPTER 85

TABLE 3.171 Telephones for cellular or other wireless networks, other telephone sets, and base stations

HTS no. Existing rule Proposed rule Probable effect advice

8517.12–

8517.61

51. A change to subheading 

8517.12 from any other 

subheading, except from 

subheadings 8517.61 or 

8517.62.

52. A change to subheading 

8517.18 from any other 

subheading, except from 

subheading 8517.69.

53. A change to subheading 

8517.61 from any other 

subheading, except from 

subheading 8517.12 or 

8517.62.

A change to subheading 

8517.12 through 8517.61 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.171: Modification and effect

Modification: The proposed rule covers cellphones, other telephones, and base stations, sometimes shipped in 

combination with each other and with other wireless network equipment as a set or system. Due to rapidly changing 

technology, classifications of such combinations would be determined case by case. 

The current rule for wireless phones (subheading 8517.12) requires that base stations (subheading 8517.61) and 

network equipment such as routers, switches, and modems (subheading 8517.62) be made in North America in order 

for the product to qualify for preferences under NAFTA. Similarly, the current rule for videophones and certain other 

telephones and telephone sets (subheading 8517.18) requires that inputs classified in subheading 8517.69 (other 

apparatus for transmission or reception) be made in North America in order to claim originating status. The current 

rule for base stations (subheading 8517.61) requires that cell phones or other wireless telephones (subheading 

8517.12) and network equipment such as routers, switches, or modems (subheading 8517.62) be made in North 

America in order for base stations to receive NAFTA preferences. 

The proposed modification is liberalizing because it would allow inputs (or elements of a system) that previously had 

to be made in North America to be non-originating and still qualify for NAFTA preferences.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The MFN rate of duty imposed on these goods by Canada is free. The MFN rate of duty in Mexico is free for 

subheadings 8517.12 and 8517.61, which constitute the bulk of trade in this group. Mexico imposes a duty of 15 

percent ad valorem on two of three tariff lines within subheading 8517.18 (other telephone sets); however, U.S. 

exports to Mexico under these lines represented less than 2 percent of U.S. exports to NAFTA of products within the 

group affected by the proposed rule.1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas
3-280

CHAPTER 85

TABLE 3.172 Apparatus for transmission or reception of voice, images, or other data, including apparatus for 

communication in a wired or wireless network (such as a local or wide area network) and parts

HTS no. Existing rule Proposed rule Probable effect advice

8517.62–

8517.70

54. (A) A change to apparatus 

for carrier-current line systems 

or for digital line systems of 

subheading 8517.62 from any 

other good of subheading 

8517.62 or any other 

subheading, except from 

subheading 8517.61;

(B) A change to control or 

adapter units of subheading 

8517.62 from any other good of 

subheading 8517.62 or any 

other subheading, except from 

subheading 8471.49;

(C) A change to any other good 

of subheading 8517.62 from any 

other good of subheading 

8517.62 or any other 

subheading, except from 

subheading 8471.49. 

55. A change to subheading 

8517.69 from any other good of 

subheading 8517.69 or any 

other subheading, except from 

subheadings 8517.18 or 

8517.62.

56. (A) A change to subheading 

8517.70 from any other 

subheading; or

(B) No required change in tariff 

classification to subheading 

8517.70, provided there is a 

regional value content of not 

less than: 

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used. 

A change to a good of any of 

subheading 8517.62 through 

8517.70 from any other good 

within that subheading or any 

other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible
3-281 

TABLE 3.172: Modification and effects—Continued

Modification: The proposed rule covers various wired and wireless communications network equipment and their 

parts, which may be shipped in combination with other products such as phones, base stations, or computers, as a 

set or system. Due to rapidly changing technology, classification of such combinations would be determined case by 

case. 

The current rule for carrier-line or digital-line systems (subheading 8517.62) requires that base stations (subheading 

8517.61) be made in North America for the product to qualify for NAFTA duty preferences. The current rule for control 

or adapter units and all other goods classified within subheading 8517.62 (except carrier-line and digital-line systems) 

requires that automatic data processing machines in the form of systems (subheading 8471.49) be made in North 

America. In addition, the current rule for other apparatus for transmission or reception of voice, images, or other data 

(subheading 8517.69) requires that non-wireless telephone sets (subheading 8517.18) or machines for reception, 

conversion, and transmission or regeneration of voice, images, or other data (subheading 8517.62) used as inputs be 

made in North America to confer origin. The proposed modification is liberalizing for these products because it would 

allow inputs that previously had to be made in North America to be non-originating and still qualify for NAFTA 

preferences. 

The current rule for subheading 8517.70 (i.e., parts of telephone sets and apparatus for transmission or reception of 

voice, images, or other data) requires that inputs come from any other subheading to confer origin. Alternatively, a 

non-originating input may come from within subheading 8517.70, as long as it meets the regional value content 

requirement. The proposed modification eliminates both of these restrictions. 

The proposed modification is also liberalizing because it would allow any non-originating inputs of any subheading to 

be used in the manufacture of these transmission or reception apparatus, including non-originating inputs that are 

different goods classified within the same subheading. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The Canadian and Mexican MFN rate of duty is free for subheadings 8517.62 and 8517.70, which account 

for 96 percent of U.S. exports to these countries. The duties imposed by Canada and Mexico on the products 

classified within subheading 8517.69 range from free to 15 percent ad valorem; the value of U.S exports to Canada 

and Mexico entered under this subheading in 2012 accounted for less than 1 percent of total U.S. exports to NAFTA 

partners of the products affected by the proposed rule.1

 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. 

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Canadian and Mexican import data 

obtained from Global Trade Atlas. 
3-282

CHAPTER 85

TABLE 3.173 Microphones and their stands; loudspeakers; and headphones and earphones

HTS no. Existing rule Proposed rule Probable effect advice

8518.10–

8518.30

65. (A) A change to 

subheadings 8518.10 through 

8518.29 from any other 

heading; or

(B) A change to any of 

subheadings 8518.10 through 

8518.29 from within that 

subheading or any other 

subheading within heading 

8518, whether or not there is 

also a change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 30 percent where the 

transaction value method is 

used, or

(2) 25 percent where the net 

cost method is used.

[TCRs 66 and 67 deleted.]

68. A change to tariff item 

8518.30.10 from any other 

tariff item.

69. (A) A change to 

subheading 8518.30 from any 

other heading; or 

(B) A change to subheading 

8518.30 from subheadings 

8518.10, 8518.29 or 8518.90, 

whether or not there is also a 

change from any other 

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to a good of any of 

subheading 8518.10 through 

8518.30 from any other good 

within that subheading or any 

other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Significant 

increase1

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all 

U.S. exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent 

that U.S. exports to Mexico currently receive the NAFTA preferential rate of duty. 
3-283

TABLE 3.173: Modification and effect—Continued

Modification: The current rule for goods of subheadings 8518.10 (microphones and their stands), 8518.21 (single 

loudspeakers), 8518.22 (multiple loudspeakers), and 8518.29 (other loudspeakers) allows these goods to be made 

from non-originating inputs from outside heading 8518 and be eligible for NAFTA preferential treatment. Alternatively, 

non-originating inputs from subheadings within heading 8518 (including subheadings 8518.10, 8518.21, 8518.22, and 

8518.29) can be used, provided the final good meets the regional value content requirement. The proposed rule is 

liberalizing because it would require only that goods undergo a change from one good or article of commerce to 

another, regardless of heading or subheading. 

The current rule for tariff item 8518.30.10 (handsets for line telephones) allows these goods to be made from nonoriginating inputs from any other tariff item. The proposed modification is liberalizing because it would allow inputs of 

any other good from any subheading. To the extent that different kinds of line telephone handsets within tariff item 

8518.30.10 are considered different goods or articles of commerce, the proposed modification would liberalize origin. 

The current rule for subheading 8518.30 (headphones and earphones) allows these goods to be made from nonoriginating inputs from any other heading other than heading 8518. Alternatively, non-originating inputs from 

subheadings 8518.10 (microphones and their stands), 8518.29 (other loudspeakers), or 8518.90 (parts) can be used 

provided the final good meets the regional value content requirement. The proposed modification is liberalizing

because it would eliminate the regional value content requirement and confer origin if the non-originating input is a 

different good, even for those goods within this same subheading. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports of the products in this group from Canada and Mexico was 0.8 

percent in 2012. The NTR tariff rates for U.S. imports under tariff items in this group range from free to 4.9 percent ad 

valorem. 

The proposed modification could potentially result in a significant increase in U.S. exports to NAFTA partners, which 

totaled $236.7 million in 2012. Mexico has five tariff items covered by the rule with MFN rates of duty of 15 percent ad 

valorem. Canada has four tariff items covered by the rule with MFN rates of duty of 6.5 percent ad valorem and one 

tariff item with an MFN rate of duty of 4.5 percent ad valorem. Imports of microphones and their stands (subheading 

8518.10) enter free of duty for both countries. Using the actual duties paid on U.S. exports to Canada and assuming 

the MFN rates apply to U.S. exports to Mexico, the effective tariff on U.S. exports to NAFTA partners of the covered 

goods in 2012 was 1.5 percent ad valorem.

2

The proposed modification would likely result in a negligible effect on total U.S. exports. The share of U.S. exports of 

these goods to NAFTA partners accounted for only 15 percent of total U.S. exports in 2012. Using the actual duties 

paid on U.S. exports to Canada and assuming the MFN rates apply to U.S. exports to Mexico, the effective tariff on 

total U.S. exports of products covered by the rule was less than 0.5 percent ad valorem in 2012.3 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. DEI Holdings, Inc., a domestic producer of consumer electronics, expressed support for the proposed 

modification for headings 8518.10–8518.30, stating that “it would allow [DEI Holdings] to expand audio speaker 

production in North America and more fully capitalize on the benefits of the North American Free Trade Agreement.”4

Note: Tariff item 8518.30.10, listed in the current rule, is the U.S. 8-digit tariff item that is not harmonized at the 

international level. The corresponding 8-digit tariff item for Canada is 8518.30.10, and for Mexico it is 8518.30.03. 

 2 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas. 3 Calculated based on actual duties paid on U.S. exports to Canada and assuming the MFN rates apply to U.S. exports to 

Mexico of products covered by the proposed modification divided by total U.S. exports of all products covered by the proposed 

modification. Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, 

Mexican import data from Global Trade Atlas, and U.S. export data from USITC DataWeb/USDOC. 4 DEI Holdings, Inc., written submission to the USITC, May 31, 2013, 1. See appendix D.
3-284 

 CHAPTER 85 

TABLE 3.174 Sound recording and reproducing apparatus (jukeboxes, record players, CD recorders and players, 

tape recorders and players, telephone answering devices, etc.) 

HTS no. Existing rule Proposed rule Probable effect advice 

8519.20–

8519.89 

72. A change to subheadings 

8519.20 through 8519.89 from 

any other subheading, 

including another subheading 

within that group, except from 

printed circuit assemblies 

(PCAs) of subheading 

8522.90. 

A change to a good of any of 

subheading 8519.20 through 

8519.89 from any other good 

within that subheading or any 

other subheading, including 

another subheading within 

that group. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Significant 

 increase1

 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.174: Modification and effect

Modification: The current rule reflects the complexity that resulted from WCO changes to the 2007 HS for various 

sound recording and reproducing apparatus. The current rule requires that non-originating inputs to any sound 

recording or reproducing apparatus in subheadings 8519.20 through 8519.89 must come from another subheading in 

order to qualify for preferential treatment under NAFTA. Any non-originating printed circuit assemblies (PCAs) of 

subheading 8522.90 must be made in North America. The proposed modification is liberalizing because it eliminates 

the requirement that PCAs incorporated into these goods be made in North America, and it allows a good of any of 

these subheadings to contain inputs from the same subheading. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports of these products from NAFTA partners was less than 0.5 percent ad 

valorem in 2012. U.S. imports from NAFTA countries accounted for only 4 percent of total U.S. imports of the goods 

under these subheadings.

The proposed modification could potentially result in a significant increase in U.S. exports to NAFTA partners, which 

totaled $59.3 million in 2012. Mexico has MFN rates of duty ranging from free to 15 percent ad valorem. Canada’s 

MFN rates of duty range from free to 5 percent ad valorem. The majority (69 percent) of U.S. exports went to Mexico 

in 2012. Using the actual duties paid on U.S. exports to Canada and assuming the MFN rates apply to U.S. exports to 

Mexico, the effective tariff on U.S. exports of the subject goods to NAFTA partners in 2012 was 2 percent ad 

valorem.2

 

The proposed modification would likely have a negligible effect on total U.S. exports. The share of U.S. exports to 

NAFTA partners accounted for a relatively small share of total U.S. exports (2 percent) of these goods in 2012. U.S. 

exports are likely used equipment, since there is little to no U.S. production of these goods. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. In addition, as noted above, it is likely the exports are used equipment as there is little or no production of 

these goods.

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all 

U.S. exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent 

that U.S. exports to Mexico currently receive the NAFTA preferential rate of duty. 2

 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas. 
3-285

CHAPTER 85

TABLE 3.175 Blank and prerecorded media (e.g., tapes, CDs, DVDs, videocassettes, audiocassettes), and 

smartcards

HTS no. Existing rule Proposed rule Probable effect advice

8523.21–

8523.51

76. (A) A change to prepared 

unrecorded cards incorporating 

a magnetic stripe of

subheading 8523.21 from any 

other good of subheading 

8523.21 or any other 

subheading; or

(B) A change to recorded cards 

incorporating a magnetic stripe 

of subheading 8523.21 from 

any other good of subheading 

8523.21 or any other 

subheading.

76A. (A) A change to prepared 

unrecorded magnetic tapes or 

discs of subheading 8523.29 

from any other good of 

subheading 8523.29 or any 

other subheading; or

(B) A change to recorded 

magnetic tapes or discs of 

subheading 8523.29 from any 

other good of subheading 

8523.29 or any other 

subheading.

76B. (A) A change to prepared 

unrecorded optical media of 

subheading 8523.40 from any 

other good of subheading

8523.40 or any other 

subheading; or

(B) A change to recorded 

optical media of subheading 

8523.40 from any other good 

of subheading 8523.40 or any 

other subheading.

76C. (A) A change to prepared 

unrecorded semiconductor 

media of subheading 8523.51 

from any other good of 

subheading 8523.51 or any 

other subheading; or

(B) A change to recorded 

semiconductor media of 

subheading 8523.51 from any 

other good of subheading 

8523.51 or any other 

subheading.

A change to a good of any of 

subheading 8523.21 through 

8523.51 from any other good 

within that subheading or any 

other subheading, including 

another subheading within 

that group. 

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None
3-286

TABLE 3.175: Modification and effect—Continued 

Modification: The proposed modification would make no substantive change to the current NAFTA rules. The 

proposed modification streamlines the language and consolidates rules for four subheadings. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-287 

CHAPTER 85 

TABLE 3.176 Other blank or prerecorded media, including records 

HTS no. Existing rule Proposed rule Probable effect advice 

8523.59–

8523.80 

76E. (A) A change to prepared 

unrecorded semiconductor 

media of subheading 8523.59 

from any other good of 

subheading 8523.59 or any 

other subheading; or 

(B) A change to recorded 

semiconductor media of 

subheading 8523.59 from any 

other good of subheading 

8523.59 or any other 

subheading. 

76F. (A) A change to prepared 

unrecorded media of 

subheading 8523.80 from any 

other good of subheading 

8523.80 or any other 

subheading; or 

(B) A change to recorded 

media of subheading 8523.80 

from any other good of 

subheading 8523.80 or any 

other subheading. 

A change to a good of any of 

subheading 8523.59 through 

8523.80 from any other good 

within that subheading or any 

other subheading, including 

another subheading within 

that group. 

U.S. trade under NAFTA: 

 Imports: None 

 Exports: None 

U.S. total trade: 

 Imports: None 

 Exports: None 

U.S. production: None 

TABLE 3.176: Modification and effect 

Modification: The proposed modification would make no substantive change to the current NAFTA rules. The 

proposed modification streamlines the language and consolidates rules for two subheadings. 

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule. 
3-288

CHAPTER 85

TABLE 3.177 Computer monitors with cathode-ray tubes

HTS no. Existing rule Proposed rule Probable effect advice

8528.41 84. (A) A change to color 

cathode-ray tube monitors of 

subheading 8528.41 from any 

other subheading, except from

subheadings 8471.49 or 

8540.40 or front panel 

assemblies of subheading 

8540.91; or

(B) A change to any other 

monitors of subheading 

8528.41 from any other 

subheading, except from 

subheading 8471.49.

A change to subheading 

8528.41 from any other 

subheading, except from 

subheading 8471.49. 

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.177: Modification and effect

Modification: The current rule allows computer monitors with cathode-ray tubes to qualify for NAFTA preferences 

when they are made from non-originating inputs from most other subheadings, except for monitors merely separated 

from automatic data processing systems (subheading 8471.49), cathode-ray tubes (CRTs) (subheading 8540.40),

and front panel assemblies for CRTs (subheading 8540.91), which must be made in North America.

The proposed modification is liberalizing because it would allow the use of non-originating CRTs of subheading 

8540.40 and front panel assemblies for CRTs of subheading 8540.91 in the production of computer monitors with 

CRTs. The proposed modification would continue to exclude monitors merely separated from automatic data 

processing systems. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these computer monitors would not be affected by the proposed rule change.
3-289

CHAPTER 85

TABLE 3.178 Burglar or fire alarms

HTS no. Existing rule Proposed rule Probable effect advice

8531.10 104. A change to subheadings 

8531.10 through 8531.20 from 

any other subheading, 

including another subheading 

within that group.

A change to subheading 

8531.10 from any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.178: Modification and effect 

Modification: The proposed rule would make no substantive change to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-290

CHAPTER 85

TABLE 3.179 Indicator panels incorporating liquid crystal devices (LCDs) or light-emitting diodes (LEDs)

HTS no. Existing rule Proposed rule Probable effect advice

8531.20 104. A change to subheadings 

8531.10 through 8531.20 from 

any other subheading, 

including another subheading 

within that group.

A change to a good of 

subheading 8531.20 from any 

other good within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.179: Modification and effect

Modification: The current NAFTA rule allows indicator panels of subheadings 8531.10–8531.20 made from nonoriginating inputs from any other subheading, including from another subheading within that group (other than that 

covering the finished good), to receive the NAFTA preferential rate of duty. 

The proposed modification is liberalizing because it allows final goods classified under subheading 8531.20 (indicator 

panels incorporating either LCDs or LEDs) made from non-originating inputs also classified under subheading 

8531.20 to qualify for the NAFTA preferential rate of duty. For example, an indicator panel used in an alarm might 

have an LCD that provides text messages describing certain conditions, and the panel might also incorporate LED 

lights that indicate whether the alarm is armed or other conditions, both of which are classified in subheading 

8531.20.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these indicator panels would not be affected by the proposed rule change.
3-291

CHAPTER 85

TABLE 3.180 Parts of burglar or fire alarms, indicator panels incorporating liquid crystal devices (LCDs) or lightemitting diodes (LEDs), or certain other electric sound or visual signaling apparatus

HTS no. Existing rule Proposed rule Probable effect advice

8531.90 108. (A) A change to 

subheading 8531.90 from any 

other heading; or

(B) No required change in tariff 

classification to subheading 

8531.90, provided there is a 

regional value content of not

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to a good of 

subheading 8531.90 from any 

other good within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.180: Modification and effect

Modification: Under the current NAFTA rule, parts of burglar and fire alarms, indicator panels, and electric sound or 

visual signaling apparatus classified under subheading 8531.90 must use inputs classified in headings other than 

heading 8531 to be eligible for preferential treatment under NAFTA. Alternatively, if the parts classified under 

subheading 8531.90 are manufactured from other parts that are also classified under subheading 8531.90, the final 

part product must meet a regional value content requirement. 

The proposed modification is liberalizing because it allows non-originating goods classified in subheading 8531.90 to 

be used as inputs for parts classified in the same subheading or for originating and non-originating parts to be 

combined into subassemblies, composite goods, or kits. The proposed modification would also allow non-originating 

goods from any other subheading to be used as inputs in the manufacture of these products. Further, the regional 

value content requirement is eliminated for parts that are classified under subheading 8531.90. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports of the subject goods from NAFTA partners for subheading 8531.90

was less than 0.5 percent ad valorem in 2012. Mexico accounted for 79 percent of U.S. imports of these goods from 

NAFTA partners in 2012, with U.S. imports of these goods from NAFTA partners representing approximately 37 

percent of total U.S. imports of the goods. 

The MFN rate of duty imposed on these goods by Canada and Mexico is free; therefore, there would be no effect on 

U.S. exports under NAFTA or on total U.S. exports. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.
3-292

CHAPTER 85

TABLE 3.181 Electrical capacitors and parts

HTS no. Existing rule Proposed rule Probable effect advice

8532.10–

8532.90

109. (A) A change to 

subheading 8532.10 from any 

other heading; or

(B) A change to subheading 

8532.10 from subheading 

8532.90, whether or not there 

is also a change from any 

other heading, provided there 

is a regional value content of 

not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

110. A change to 

subheadings 8532.21 through 

8532.30 from any other 

subheading, including another 

subheading within that group.

111. (A) A change to 

subheading 8532.90 from any 

other heading; or

(B) No required change in 

tariff classification to 

subheading 8532.90, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to a good of any of 

subheadings 8532.10 through 

8532.90 from any other good 

within that subheading or any 

other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.181: Modification and effect

Modification: The proposed rule covers fixed and variable capacitors, and parts of capacitors. The current rule for 

certain fixed capacitors (subheading 8532.10) allows these products to be made from non-originating inputs from 

outside heading 8532 to qualify for the NAFTA preferential rate of duty. Alternatively, non-originating inputs from 

subheading 8532.90 (parts of capacitors) can be used provided the final good meets the regional value content 

requirement. The proposed modification is liberalizing because it would eliminate the regional value content 

requirement and confer origin if the non-originating input is a different good, even for those goods within this same 

subheading. For instance, the proposed modification would allow all goods within subheading 8532.10 to receive the 

NAFTA preferential rate of duty if a non-originating input is a different good from the same subheading as the finished 

good or a non-originating input from subheading 8532.90 (parts of capacitors).

The current rule for other fixed capacitors (subheadings 8532.21–8532.30) allows these products to be made from 

non-originating inputs from any other subheading. The proposed modification is liberalizing because it would confer 

origin if the non-originating input is a different good, even for those goods within this same subheading.
3-293

TABLE 3.181: Modification and effect—Continued

The current rule for parts of capacitors (subheading 8532.90) allows these products to be made from non-originating 

inputs from outside heading 8532. Alternatively, non-originating inputs from with the same subheading can be used 

provided that the final product meets the regional value content requirement. The proposed modification is liberalizing 

because it would eliminate the regional value content requirement and allow non-originating inputs to come from any 

subheading. It would also confer origin if the non-originating input is a different good from within the same 

subheading.

Effect: The U.S. NTR rate of duty is free for these goods, so the proposed modification would have no effect on U.S. 

imports under NAFTA and on total U.S. imports.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico was the destination of 84 percent of U.S. exports to NAFTA partners of goods classified under these 

subheadings in 2012. Mexico applies a 5 percent ad valorem duty on imports under Mexican tariff lines 8532.10.01 

and 8532.25.02, and U.S. exports under these two tariff lines accounted for 1.5 percent of U.S. exports under 

heading 8532 to Mexico in 2012. All other tariff lines of heading 8532 enter Mexico free of duty. U.S. exports to 

Canada enter free of duty under the MFN rate. If MFN rates of duty are applied to U.S. exports of goods covered by 

this rule to the NAFTA partners, the effective tariff on all U.S exports of these goods to NAFTA partners was less than 

0.5 percent ad valorem in 2012.

1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas.
3-294

CHAPTER 85

TABLE 3.182 Parts of electrical resistors

HTS no. Existing rule Proposed rule Probable effect advice

8533.90 114. (A) A change to 

subheading 8533.90 from any 

other heading; or

(B) No required change in 

tariff classification to 

subheading 8533.90, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to a good of subheading 

8533.90 from any other good 

within that subheading or any 

other subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.182: Modification and effect

Modification: The proposed rule covers parts of electrical resistors (subheading 8533.90), which includes cases, 

levers, gaskets, or other parts that are dedicated for use with electrical resistors, rheostats, or potentiometers. The 

current NAFTA rule requires that these products be made from non-originating materials or components from any 

heading other than heading 8533 to qualify for the NAFTA preferential rate of duty. Alternatively, finished goods made 

from non-originating inputs from subheading 8533.90 must meet the regional value content requirement. 

The proposed modification is liberalizing because it would allow production of parts of electric resistors from one or 

more other parts of subheading 8533.90 (a change from a good within the same subheading) or from any other 

subheading without a regional value content requirement.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. As 

a result, U.S. production of these goods would not be affected by the proposed rule change.
3-295

CHAPTER 85

TABLE 3.183 Carbon electrodes, carbon brushes, lamp carbons, battery carbons, and other carbon articles used for 

electrical purposes

HTS no. Existing rule Proposed rule Probable effect advice

8545.11–

8545.90

149. A change to headings 

8545 through 8547 from any 

other heading, including 

another heading within that 

group.

A change to subheading 8545.11 

through 8545.90 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.183: Modification and effect

Modification: The current rule for carbon electrodes, carbon brushes, lamp carbons, battery carbons, and other 

carbon articles used for electrical purposes (subheadings 8545.11–8545.90) requires that non-originating inputs 

come from any other heading for the finished product to qualify for the NAFTA preferential rate of duty. The proposed 

modification is liberalizing because it would allow these products to be made from non-originating inputs from any 

other subheading, including subheadings within heading 8545. For example, the current rule requires that a carbon 

electrode used in a furnace (subheading 8545.11) must be made using a carbon connecting pin (subheading 

8545.90) that is made in North America. Under the proposed modification, a carbon electrode may be made with a 

non-originating connecting pin and qualify for NAFTA preferences.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or on total U.S. exports. As 

a result, U.S. production of these carbon products would not be affected by the proposed rule change.
3-296

CHAPTER 85

TABLE 3.184 Electrical insulators of any material

HTS no. Existing rule Proposed rule Probable effect advice

8546 149. A change to headings 

8545 through 8547 from any 

other heading, including 

another heading within that 

group.

A change to heading 85.46 from 

any other heading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.184: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-297

CHAPTER 85

TABLE 3.185 Insulating fittings for electrical machines, appliances, or equipment; electrical conduit tubing and joints 

therefor, of base metal lined with insulating material

HTS no. Existing rule Proposed rule Probable effect advice

8547.10–

8547.90

149. A change to headings 

8545 through 8547 from any 

other heading, including 

another heading within that 

group.

A change to subheading 8547.10 

through 8547.90 from any other

subheading, including another 

subheading within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.185: Modification and effect

Modification: The current NAFTA rule requires that non-originating inputs used in the production of insulating fittings 

and electrical conduit tubing and joints (subheadings 8547.10–8547.90) must come from any heading other than 

heading 8547 for the finished product to qualify for the NAFTA preferential rate of duty. The proposed modification is 

liberalizing because it would allow non-originating inputs from any other subheading, including those within heading 

8547. However, many of the articles classified in 8547.19 through 8547.90 would not be made from other products 

classified within that same group of subheadings.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The U.S. NTR rates of duty are 3 percent ad valorem for insulated fitting of ceramics (subheading 

8547.10); free for insulated fittings of plastic (subheading 8547.20); and 4.6 percent ad valorem for other covered 

products (subheading 8547.90). The effective tariff on U.S. imports of goods covered by this rule from NAFTA 

partners was less than 0.5 percent ad valorem in 2012. U.S. imports from Canada and Mexico accounted for 

23 percent of total U.S. imports of the covered goods in 2012.

The proposed modification would have no effect on U.S. exports under NAFTA and on total U.S. exports. The MFN 

rate of duty imposed on these goods by Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.
3-298 

TABLE FOR HTS CHAPTER 86 

TABLE 3.186 Rail locomotives

HTS no. Existing rule Proposed rule Probable effect advice 

8601–

8602 

1. A change to headings 8601 

through 8602 from any other 

heading. 

A change to heading 86.01 

through 86.02 from any other 

heading, including another 

heading within that group. 

U.S. trade under NAFTA: 

 Imports: None 

 Exports: Negligible 

U.S. total trade: 

 Imports: None 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.186: Modification and effect 

Modification: The proposed rule covers rail locomotives powered by an external source of electricity or batteries 

(heading 8601), as well as other locomotives (such as diesel locomotives) and locomotive tenders (vehicles used with 

steam locomotives to carry water and fuel) (heading 8602). Heading 8607 covers the principal parts of such 

locomotives and tenders, but other parts and materials are provided for in other chapters. 

Under the current rule, non-originating locomotives classified in heading 8601 may not be made into locomotives or 

locomotive tenders of heading 8602 to qualify for NAFTA preferences, and vice-versa. The proposed modification is 

liberalizing because it would remove this restriction and allow non-originating locomotives classified in one heading to 

be made into locomotives classified under the heading. 

Effect: The proposed modification would have no effect on U.S. imports under NAFTA and on total U.S. imports 

because the U.S. NTR rate of duty is free. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. No producer currently modifies or has plans to modify locomotives so that they would meet the proposed rule 

change.1

 The MFN rate of duty in Mexico for goods of headings 8601 and 8602 is free, but the MFN rate of duty in 

Canada is 9.5 percent ad valorem. However, all U.S. exports under headings 8601 and 8602 entered free of duty 

under NAFTA in 2012.2 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. 

                                                             1

 Industry representative, telephone interview with USITC staff, May 3, 2013. 2

 Based on Canadian import data from Statistics Canada, International Trade Division. 
3-299 

TABLES FOR HTS CHAPTER 87 

TABLE 3.187 Parts of trailers and semitrailers

HTS no. Existing rule Proposed rule Probable effect advice 

8716.90 46. A change to subheading 

8716.90 from any other 

heading. 

A change to subheading 8716.90 

from any other heading; or 

No required change in tariff 

classification to subheading 

8716.90, provided there is a 

regional value content of not less 

than: 

(a) 60 percent where the 

transaction value method is used, 

or 

(b) 50 percent where the net cost 

method is used. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.187: Modification and effect 

Modification: The current rule allows parts of trailers and semitrailers to qualify for the NAFTA preferential rate of duty 

when made from non-originating inputs from any heading except inputs classified under heading 8716, which must be 

made in North America. The proposed modification is liberalizing because it would now allow non-originating parts 

classified under subheading 8716.90 to be used in the production of a larger part or assembly of parts also classified 

under subheading 8716.90, provided the final product meets the regional value content requirement. 

 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total U.S. 

imports. The U.S. NTR duty rates for these goods range from free (for parts for wagons) to 5.7 percent ad valorem (for 

castors). The effective tariff on U.S. imports from NAFTA partners was less than 0.5 percent ad valorem in 2012, as 

most imports of these goods from Canada and Mexico entered free of duty under NAFTA. Dutiable imports from 

Canada and Mexico accounted for 4 percent of U.S. imports of parts for trailers and semitrailers from Canada and 

Mexico in 2012. 

The proposed modification would likely have a negligible effect on total U.S. exports under NAFTA and on total U.S. 

exports. The Mexican MFN rate for trailer shells is 5 percent ad valorem; however, the rate for all other tariff items 

under subheading 8716.90 is free. All U.S. exports of these goods to Mexico entered under tariff items that were free of 

duty, while Canada’s MFN duty rates range from free to 6.5 percent ad valorem. However, most U.S. exports to 

Canada entered free of duty under NAFTA, leading to an effective tariff of less than 0.5 percent ad valorem for U.S. 

exports to NAFTA partners in 2012.1

 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

 1

 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas. 
3-300

TABLES FOR HTS CHAPTER 90

TABLE 3.188 Frames and mountings for spectacles, goggles, or the like made from plastics or other materials

HTS no. Existing rule Proposed rule Probable effect advice

9003.11–

9003.19

4. (A) A change to 

subheadings 9003.11 through 

9003.19 from any other 

heading; or 

(B) A change to subheadings 

9003.11 through 9003.19 from 

subheading 9003.90, whether 

or not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

9003.11 through 9003.19 

from any other subheading, 

including another subheading 

within that group, except from 

subheading 9003.90; or 

A change to subheading 

9003.11 through 9003.19 

from subheading 9003.90 

whether or not there is also a 

change from any other 

subheading, including 

another subheading within 

that group, provided there is 

a regional value content of 

not less than:

(a) 60 percent where the 

transaction value method is 

used, or

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.188: Modification and effect

Modification: The current NAFTA rule allows frames and mountings for spectacles, goggles, or the like of plastics 

and other materials made from non-originating parts of spectacles, goggles and the like (subheading 9003.90) to 

receive the preferential rate of duty under NAFTA provided they meet the regional value content rule. The current 

NAFTA rule also allows frames and mountings for spectacles made from non-originating inputs classified outside 

heading 9003 to receive NAFTA benefits. 

The proposed modification is liberalizing because it would allow non-originating frames or mountings of plastics 

(subheading 9003.11) to be combined with those made of other materials (subheading 9003.19). Similarly, if nonoriginating parts of subheading 9003.90 are combined with such “combined material” frames or mountings, provided 

that the regional value content is met, the resulting product would also be an originating good. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff rate for U.S. imports of goods covered by the proposed modification from NAFTA 

countries was less than 1 percent ad valorem in 2012. U.S. imports from NAFTA partners totaled only $667,000, less 

than 1 percent of total U.S. imports in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico’s MFN rate of duty for these goods is free. U.S. exports to Mexico of these goods represented more 

than 98 percent of the value of U.S. exports to NAFTA partners in 2012. All but one of the Canadian MFN duty rates 

for these goods are free; one tariff item is subject to a 2.5 percent ad valorem rate of duty. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-301 

CHAPTER 90 

TABLE 3.189 Sunglasses

TABLE 3.189: Modification and effect 

Modification: The current NAFTA rule of origin excludes sunglasses made from non-originating inputs from chapter 

90, unless the regional value content requirement is met. The proposed modification is liberalizing in that it would 

remove the regional value requirement for non-originating inputs classified in chapter 90 and would allow any 

subheading-level tariff change to confer origin. For example, sunglasses could be made from non-originating lenses of 

heading 9001. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total U.S. 

imports. The effective tariff for U.S. imports from Canada and Mexico was 1.4 percent ad valorem in 2012. U.S. imports 

from NAFTA partners represented less than 1 percent of total U.S. imports of sunglasses in 2012. 

The proposed modification would likely result in a significant increase in U.S. exports to NAFTA partners, which totaled 

$61.2 million in 2012. Mexico’s MFN rate of duty for imports of sunglasses is 10 percent ad valorem and Canada 

imposes a 5 percent ad valorem MFN rate of duty. Nearly two-thirds of U.S. exports to Canada and Mexico paid the 

MFN rates of duty in 2012. Based on actual duties collected for Canada and estimated duties collected for Mexico, the 

effective tariff on U.S. exports of the subject products to NAFTA partners was 3.8 percent ad valorem in 2012.1

 

The proposed modification would likely have a negligible effect on total U.S. exports. U.S. exports of these goods to 

NAFTA partners accounted for a small share (25 percent) of total U.S. exports of the goods in 2012. Based on 2012 

U.S. export data, the effective tariff for total U.S. exports was less than 1 percent.2

 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible and the size of U.S. production relatively large compared with any potential changes in total U.S. trade. 

                                                             1

 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX). 2

 Calculated based on estimated duties collected on U.S. exports to NAFTA partners of products covered by the proposed 

modification divided by total U.S. exports of all products covered by the proposed modification. Commission estimate based on 

Canadian import data from Statistics Canada, International Trade Division, Mexican import data from Global Trade Atlas, and 

U.S. export data from USITC DataWeb/USDOC. 

HTS no. Existing rule Proposed rule Probable effect advice 

9004.10 6. (A) A change to heading 

9004 from any other chapter; 

or 

(B) A change to heading 9004 

from any other heading within 

chapter 90, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than: 

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used. 

A change to subheading 

9004.10 from any other 

subheading. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Significant 

 increase 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 
3-302

CHAPTER 90

TABLE 3.190 Spectacles, goggles, and the like (except sunglasses), corrective, prescription, or other

HTS no. Existing rule Proposed rule Probable effect advice

9004.90 6. (A) A change to heading 

9004 from any other chapter; 

or

(B) A change to heading 9004 

from any other heading within 

chapter 90, whether or not 

there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or 

(2) 50 percent where the net 

cost method is used.

A change to subheading 

9004.90 from any other 

chapter; or 

A change to subheading 

9004.90 from any other 

heading within Chapter 90, 

whether or not there is also a 

change from any other 

chapter, provided there is a 

regional value content of not 

less than:

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.190: Modification and effect

Modification: The proposed rule would make no substantive change to the current NAFTA rule; it preserves the 

chapter exclusion that exists under the current rule.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, on total U.S. trade, or on U.S. 

production because the proposed rule is substantively the same as the current NAFTA rule.
3-303 

 CHAPTER 90 

TABLE 3.191 Devices for therapeutic and/or testing purposes; parts and accessories thereof

HTS no. Existing rule Proposed rule Probable effect advice 

9019.10–

9019.20 

47. A change to headings 9019 

through 9021 from any heading 

outside that group. 

A change to subheading 

9019.10 through 9019.20 

from any other subheading, 

including another subheading 

within that group; or 

No required change in tariff 

classification to any of 

subheadings 9019.10 through 

9019.20, provided there is a 

regional value content of not 

less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used. 

U.S. trade under NAFTA: 

 Imports: None 

 Exports: Negligible 

U.S. total trade: 

 Imports: None 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.191: Modification and effect 

Modification: Because the current rule relates to tariff provisions covering both finished goods of the three headings 

and their principal parts and accessories, it effectively requires production of the parts or accessories and/or 

assembly of the finished devices to occur within North America for the finished products to qualify for the NAFTA 

preferential rate of duty. For example, mechano-therapy appliances and similar apparatus of subheading 9019.10 

cannot be made from non-originating principal parts classified in the same subheading. Similarly, oxygen therapy 

apparatus of subheading 9019.20 cannot be made from non-originating principal parts or include non-originating 

accessories from the same subheading. 

The proposed modification is liberalizing because it would allow devices for therapeutic and testing purposes to be 

made with non-originating inputs classified in any other subheading, including subheadings 9019.10 through 9019.20. 

Alternatively, the proposed modification would confer origin with no change in classification if the regional value 

content requirement is met. The latter provision would allow, for example, massage apparatus classified in 

subheading 9019.10 to use non-originating parts of massage apparatuses classified in the same subheading, 

provided that the regional value content requirement is met. 

Effect: The proposed modification would have no effect on U.S. imports under NAFTA and total U.S. imports 

because the U.S. NTR rate of duty is free. 

The proposed modification would have a negligible effect on U.S. exports under NAFTA and on total U.S. exports. 

Over 95 percent of U.S. exports of the subject goods to NAFTA partners currently entered under tariff items that are 

free of duty on an MFN basis. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. 
3-304 

 CHAPTER 90 

TABLE 3.192 Breathing appliances and masks; parts and accessories thereof

HTS no. Existing rule Proposed rule Probable effect advice 

9020 47. A change to headings 9019 

through 9021 from any heading 

outside that group. 

A change to heading 90.20 

from any other heading.

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: Negligible 

U.S. total trade: 

 Imports: Negligible 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.192: Modification and effect 

Modification: The proposed rule covers breathing appliances such as gas masks, aqualungs or divers’ helmets, antiradiation protective suits, masks for administering anesthetics or protecting against dust, and similar goods, together 

with their parts and accessories (heading 9020). The current rule for breathing appliances of heading 9020 requires 

that in order to claim originating status, they must be produced in North America from originating principal parts 

and/or that non-originating parts and accessories of such appliances must be classified in headings other than 9019 

through 9021. The proposed modification is liberalizing because it allows breathing appliances to be made from nonoriginating inputs from other headings, including headings 9019 and 9021. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The NTR rates of duty range from free to 2.5 percent ad valorem and the effective tariff on U.S. imports 

from NAFTA partners was less than 0.5 percent ad valorem in 2012. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Over 80 percent of U.S. exports of these goods to NAFTA markets are under tariff items that free of duty on 

an MFN basis. The MFN rate of duty in Canada on these goods is free, whereas Mexico imposes duties ranging from 

free to 10 percent ad valorem on them. If MFN rates of duty are applied to U.S. exports of goods covered by this rule 

to the NAFTA partners, the effective tariff was 1 percent ad valorem in 2012.1

 U.S. exports to NAFTA members 

accounted for 29 percent of total U.S. exports of these goods. 

The effect on U.S. production would likely be negligible because the effect on total U.S. trade is expected to be 

negligible. Additionally, the principal modification of the proposed rule, which allows various massage therapy devices 

(heading 9019) and orthopedic devices (heading 9021) to be used in the production of breathing appliances (heading 

9020), is not likely to be commercially practical. 

 1

 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 
3-305 

 CHAPTER 90 

TABLE 3.193 Orthopedic appliances, hearing aids, implantable devices, and similar goods; parts and accessories 

thereof

HTS no. Existing rule Proposed rule Probable effect advice 

9021.10–

9021.90 

47. A change to headings 9019 

through 9021 from any heading 

outside that group. 

A change to subheading 

9021.10 through 9021.90 

from any other subheading, 

including another subheading 

within that group; or 

No required change in tariff 

classification to any of 

subheading 9021.10 through 

9021.90, provided there is a 

regional value content of not 

less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used. 

 

U.S. trade under NAFTA: 

 Imports: None 

 Exports: Negligible 

U.S. total trade: 

 Imports: None 

 Exports: Negligible 

U.S. production: Negligible 

TABLE 3.193: Modification and effect 

Modification: The current NAFTA rule for any of the goods covered by heading 9021, such as artificial joints, their 

parts, and accessories (subheading 9021.31), requires that, the finished goods be produced in North America from 

originating parts and accessories and that these principal parts or accessories be made in the NAFTA region in order 

to claim originating status. 

The proposed modification is liberalizing because it would allow the goods of subheadings 9021.10 through 9021.90 

to be made with non-originating inputs classified in any other subheading, including subheadings 9021.10 through 

9021.90. Alternatively, the proposed modification would confer origin with no change in classification provided that 

the final product meets the regional value content requirement. Under the latter provision, an artificial joint classified 

in subheading 9021.31 may be made from non-originating parts of artificial joints, provided the regional value content 

requirement is met. 

Effect: The proposed modification would have no effect on U.S. imports under NAFTA or on total U.S. imports 

because the U.S. NTR rate for the various implantable medical devices classified in subheadings 9021.10 through 

9021.90 is free. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. U.S. exports to Canada, where the MFN rate of duty for these goods is free, accounted for 80 percent of 

U.S. exports to NAFTA markets in 2012. MFN rates for these goods in Mexico are low, ranging from free to 5 percent 

ad valorem. If MFN rates of duty are applied to U.S. exports to the NAFTA partners, the effective tariff on all U.S 

exports to NAFTA partners of goods covered by this rule was 1 percent ad valorem in 2012.1

 U.S. exports to NAFTA 

countries accounted for 10 percent of total U.S. exports of these goods in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. 

 1

 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Global 

Trade Atlas. 
3-306 

 CHAPTER 90 

TABLE 3.194 Radiation therapy devices, including computed tomography (CT) devices and x-ray tubes

HTS no. Existing rule Proposed rule Probable effect advice 

9022.12–

9022.30 

48. A change to subheadings 

9022.12 through 9022.14 from 

any subheading outside that 

group, except from tariff item 

9022.90.05. 

49. A change to subheading 

9022.19 from any other 

subheading, except from 

subheading 9022.30 or tariff 

item 9022.90.05. 

50. A change to subheading 

9022.21 from any other 

subheading, except from tariff 

item 9022.90.15. 

51. (A) A change to 

subheadings 9022.29 through 

9022.30 from any other 

heading; or 

(B) A change to subheadings 

9022.29 through 9022.30 from 

subheading 9022.90, whether 

or not there is also a change 

from any other heading, 

provided there is a regional 

value content of not less than: 

 

(1) 60 percent where the 

transaction value method is 

used, or 

 

(2) 50 percent where the net 

cost method is used. 

 

A change to subheading 

9022.12 through 9022.30 

from any other subheading, 

including another subheading 

within that group; or 

No required change in tariff 

classification to any of 

subheading 9022.12 through 

9022.30, provided there is a 

regional value content of not 

less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used. 

U.S. trade under NAFTA: 

 Imports: Negligible 

 Exports: None 

U.S. total trade: 

 Imports: Negligible 

 Exports: None 

U.S. production: Negligible 

TABLE 3.194: Modification and effect 

Modification: The proposed rule covers various radiation therapy apparatus, including those that use x-rays or other 

forms of radiation, computed tomography (CT) devices, and x-ray tubes. Parts and accessories of such apparatus are 

classified in subheading 9022.90. The current NAFTA rule applies to apparatus based on the use of x-rays 

(subheadings 9022.12 through 9022.19); apparatus based on the use of other radiations for various medical, dental, 

or veterinary uses (subheading 9022.21); radiation-based apparatus for non-medical uses (subheading 9022.29), and 

x-ray tubes (subheading 9022.30). The current rule allows covered goods to retain their originating status even when 

they use non-originating inputs classified in most other headings, but it requires that the principal parts or 

accessories( especially the component that generates the particular radiation) that are used to make the finished 

apparatus be made in the NAFTA region. Alternatively, under the current rule, goods of subheadings 9022.29 or 

9022.30 may be made from non-originating parts or accessories classified in subheading 9022.90 provided the 

regional value content requirement is met. 

The proposed modification is liberalizing because it would allow goods of subheadings 9022.12 through 9022.30 to 

be made with non-originating inputs classified in any other subheading, including subheadings 9022.12 through 

9022.30, as well as parts and accessories classified in subheading 9022.90. Alternatively, the proposed modification 

would confer origin with no change in classification provided the regional value content requirement is met. 
3-307

TABLE 3.194: Modification and effect—Continued

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The U.S. NTR duty rates on these products are low, ranging from free to 1.2 percent ad valorem, and 

more than 95 percent of U.S. imports of these goods entered under subheadings that were free of duty on an NTR 

basis in 2012. The effective tariff on U.S. imports of these goods from NAFTA partners was less than 1 percent ad 

valorem in 2012. 

The proposed modification would have no effect on U.S. exports under NAFTA and on total U.S. exports because the 

MFN duty rates in Canada and Mexico are free for subheadings 9022.12 through 9022.30.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible.
3-308

CHAPTER 90

TABLE 3.195 Instruments or apparatus for physical or chemical analysis

HTS no. Existing rule Proposed rule Probable effect advice

9027.10–

9027.50

61. (A) A change to 

subheadings 9027.10 through 

9027.50 from any other 

heading; or

(B) A change to subheadings 

9027.10 through 9027.50 from 

subheading 9027.90, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value content 

of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

9027.10 through 9027.50 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.195: Modification and effect

Modification: The current rule requires that in order to claim originating status, the non-originating inputs of physical 

or chemical analysis instruments or apparatus must be classified under a different heading, thereby excluding the use 

of non-originating principal parts for these instruments or apparatus, which are classified in subheading 9027.90. 

Alternatively, non-originating parts and accessories of subheading 9027.90 may be used to produce physical or 

chemical analysis instruments or apparatus provided that a regional value content requirement for the apparatus is 

met. 

The proposed modification is liberalizing because it removes the regional value content requirement for nonoriginating parts and accessories classified in subheading 9027.90 and it would allow the use of non-originating 

inputs classified under any other subheading from that of the finished good, including a subheading within the group.

This change means that physical or chemical apparatus made with non-originating parts and accessories classified 

under subheading 9027.90 would now qualify for NAFTA preferences.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from the NAFTA countries for subheadings 9027.10 through 9027.50 

in 2012 was less than 0.5 percent ad valorem. In 2012, U.S. imports from Canada accounted for 5 percent of total 

U.S. imports under subheadings 9027.10 through 9027.50; U.S. imports from Mexico accounted for 2 percent. 

The proposed modification would have no effect on U.S. exports under NAFTA and on total U.S. exports. The MFN 

rates of duty for subheadings 9027.10 through 9027.50 for Canada and Mexico are free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-309

CHAPTER 90

TABLE 3.196 Other instruments and apparatus for physical or chemical analysis not using optical radiations

HTS no. Existing rule Proposed rule Probable effect advice

9027.80 62. (A) A change to exposure 

meters of subheading 9027.80 

from any other good of 

subheading 9027.80 or any 

other heading;

(B) A change to exposure 

meters of subheading 9027.80 

from subheading 9027.90, 

whether or not there is also a

change from any other good of 

subheading 9027.80 or any 

other heading, provided there is 

a regional value

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used; or

(C) A change to any other good 

of subheading 9027.80 from 

exposure meters of subheading 

9027.80 or any other

subheading.

A change to a good of 

subheading 9027.80 from any 

other good within that 

subheading or any other

subheading.

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.196: Modification and effect

Modification: The proposed rule covers a range of instruments and apparatus for physical or chemical analysis that 

are not more specifically enumerated in subheadings 9027.10 through 9027.50. Subdivision (B) of the current rule 

describes the specific requirements for conferring origin to exposure meters and indicates that they are classified in 

subheading 9027.80; however, exposure meters are not covered by subheading 9027.80 but are provided for in 

subheading 9027.50 because they use optical radiations (as stated in in tariff item 9027.50.10). The interpretation of 

the existing rule by Customs is not known. However, because of the misclassification, this analysis will ignore the 

treatment of exposure meters and consider only goods known to be classified in subheading 9027.80.

The proposed modification would simplify and liberalize the current rule for goods covered in subheading 9027.80 by 

allowing any subheading-level tariff change to confer origin with no regional value requirement, and it would eliminate 

the incorrect references to exposure meters.

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. The MFN rate of duty imposed on these goods by Canada 

and Mexico is also free; therefore, there would be no effect on U.S. exports under NAFTA or total U.S. exports. As a 

result, U.S. production of these instruments and apparatus would not be affected by the proposed rule change.
3-310

CHAPTER 90

TABLE 3.197 Instruments and apparatus for measuring or detecting ionizing radiation

HTS no. Existing rule Proposed rule Probable effect advice

9030.10 69. (A) A change to subheading 

9030.10 from any other 

heading; or

(B) A change to subheading 

9030.10 from subheading 

9030.90, whether or not there is 

also a change from any other

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

9030.10 from any other 

subheading. 

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.197: Modification and effect

Modification: The current rule requires that in order to claim originating status, non-originating parts used to make

instruments and apparatus for measuring or detecting ionizing radiation must come from another heading. 

Alternatively, non-originating parts from subheading 9030.90 can be used, provided the finished goods meet the 

regional value content requirement.

The proposed modification is liberalizing because it removes the regional value content requirement and it would 

allow any subheading-level tariff change to confer origin. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, the effective tariff on U.S. imports from the NAFTA countries for subheading 9030.10 was less 

than 0.5 percent ad valorem. U.S. imports from Canada accounted for almost 12 percent of total U.S. imports under 

subheading 9030.10 and those from Mexico for less than 0.5 percent in 2012. 

The proposed modification would have no effect on U.S. exports under NAFTA and on total U.S. exports. The MFN 

rate of duty for subheading 9030.10 for Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-311

CHAPTER 90

TABLE 3.198 Oscilloscopes and oscillographs

HTS no. Existing rule Proposed rule Probable effect advice

9030.20 70. (A) A change to cathoderay oscilloscopes or cathode-ray 

oscillographs of subheading 

9030.20 from any other good of

subheading 9030.20 or any 

other subheading, except from 

printed circuit assemblies 

(PCAs) of subheading 9030.90;

(B) A change to any other good 

of subheading 9030.20 from any 

other heading; or

(C) A change to any other good 

of subheading 9030.20 from 

subheading 9030.90, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value content 

of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to cathode-ray 

oscilloscopes or cathode-ray 

oscillographs of subheading 

9030.20 from any other good 

within that subheading or any 

other subheading; or 

A change to any other good of 

subheading 9030.20 from any 

other subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.198: Modification and effect

Modification: Subdivision (A) of the current rule allows cathode-ray oscilloscopes or oscillographs of subheading 

9030.20 to claim origin if they include inputs from any other good in subheading 9030.20 or from any other 

subheading, but not from printed circuit assemblies (PCAs) of subheading 9030.90. This subdivision allows a 

conversion from liquid crystal displays (LCDs) to cathode-ray tube (CRT) displays to confer origin; however, because 

the trend is toward LCDs in most goods that formerly used CRTs, this standard has little practical impact, given that 

few such conversions are likely to occur.

Subdivision (B) of the current rule allows oscilloscopes or oscillographs that use a different display technology to 

incorporate non-originating inputs from another heading. Subdivision (C) provides that, if parts from subheading 

9030.90 are used, the finished good must meet a regional value content requirement.

The proposed modification is liberalizing because it would eliminate the restriction on the use of PCAs of subheading 

9030.90 for producing CRT oscilloscopes and oscillographs. The proposed rule would also eliminate the regional 

value requirement for non-CRT oscilloscopes and oscillographs incorporating any non-originating parts from 

subheading 9030.90. The proposed rule would continue to allow CRT oscilloscopes and oscillographs to be given 

origin if they are made from other non-CRT oscilloscopes or oscillographs.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, the effective tariff on U.S. imports from the NAFTA countries for subheading 9030.20 was less

than 0.8 percent ad valorem. U.S. imports from Canada and Mexico together accounted for less than 0.5 percent of 

total U.S. imports under subheading 9030.20 in 2012. 

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty for subheading 9030.20 for Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-312

CHAPTER 90

TABLE 3.199 Multimeters without a recording device

HTS no. Existing rule Proposed rule Probable effect advice

9030.31 71. A change to subheading 

9030.31 from any other 

subheading, except from printed 

circuit assemblies (PCAs) of

subheading 9030.90.

A change to subheading 

9030.31 from any other 

subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.199: Modification and effect

Modification: The current rule does not allow origin to be conferred on multimeters without a recording device if they 

use non-originating printed circuit assemblies (PCAs) from subheading 9030.90. It allows other non-originating inputs 

from any other subheading to be used in producing such multimeters.

The proposed modification is liberalizing because it would eliminate the restriction on the use of PCAs in the 

production of multimeters without a recording device.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, the effective tariff on U.S. imports from the NAFTA countries for subheading 9030.31 was less 

than 0.5 percent ad valorem. U.S. imports from Canada and Mexico together accounted for less than 0.5 percent of 

total U.S. imports under subheading 9030.31 in 2012. 

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty for subheading 9030.31 for Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-313

CHAPTER 90

TABLE 3.200 Other apparatus for measuring or checking voltage, current, resistance, or power

HTS no. Existing rule Proposed rule Probable effect advice

9030.39 71C. (A) A change to 

subheadings 9030.39 through 

9030.89 from any other 

heading; or

(B) A change to subheadings 

9030.39 through 9030.89 from 

subheading 9030.90, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value content 

of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

9030.39 from any other 

subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.200: Modification and effect

Modification: The proposed rule, which applies only to subheading 9030.39, covers a variety of measuring or 

checking instruments or apparatus that do not incorporate a recording device. The current rule covers subheadings 

9030.39 through 9030.89 and allows goods of such subheadings to claim origin when they incorporate nonoriginating inputs from another heading. Alternatively, parts or accessories of subheading 9030.90 can be used

provided the finished good meets the regional value content requirement. 

The proposed modification covering subheading 9030.39 is liberalizing because it would allow any subheading-level 

tariff change to confer origin instead of requiring a heading change, and would eliminate the regional value content 

requirement in situations where parts or accessories of subheading 9030.90 are used. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. In 2012, the effective tariff on U.S. imports from the NAFTA countries for subheading 9030.39 was less 

than 0.5 percent ad valorem. The U.S. NTR rate of duty is 1.7 percent ad valorem. 

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty for subheading 9030.39 for Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-314

CHAPTER 90

TABLE 3.201 Other instruments and apparatus specially designed for telecommunications, and other instruments 

and apparatus for measuring or checking semiconductor wafers or devices

HTS no. Existing rule Proposed rule Probable effect advice

9030.40–

9030.82

71C. (A) A change to 

subheadings 9030.39 through 

9030.89 from any other 

heading; or

(B) A change to subheadings 

9030.39 through 9030.89 from 

subheading 9030.90, whether or 

not there is also a

change from any other heading, 

provided there is a regional 

value content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used

A change to subheading 

9030.40 through 9030.82 from 

any other heading; or 

A change to subheading 

9030.40 through 9030.82 from 

subheading 9030.90, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value content 

of not less than: 

(a) 60 percent where the 

transaction value method is 

used, or 

(b) 50 percent where the net 

cost method is used. 

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None 

 Exports: None

U.S. production: None

TABLE 3.201: Modification and effect

Modification: The proposed rule, which applies to subheadings 9030.40 through 9030.82, covers a variety of 

instruments and apparatus specially designed for telecommunications. The proposed rule would make no substantive 

change to the current NAFTA rules for these subheadings.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, total U.S. trade, or U.S. 

production because the proposed rule would make no substantive change to the current NAFTA rule.
3-315

CHAPTER 90

TABLE 3.202 Other measuring or checking instruments and apparatus

HTS no. Existing rule Proposed rule Probable effect advice

9030.84–

9030.89

71C. (A) A change to 

subheadings 9030.39 through 

9030.89 from any other 

heading; or

(B) A change to subheadings 

9030.39 through 9030.89 from 

subheading 9030.90, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value content 

of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used

A change to subheading 

9030.84 through 9030.89 from 

any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.202: Modification and effect

Modification: The proposed rule, which applies to subheadings 9030.84 and 9030.89, covers miscellaneous 

instruments and apparatus used in scientific research or for industrial purposes, whether or not they incorporate a 

recording device.

The current rule allows goods of subheadings 9030.39 through 9030.89 to claim origin when they use non-originating 

inputs of another heading. Alternatively, goods of subheadings 9030.39 through 9030.89 can be made from nonoriginating principal parts of subheading 9030.90 provided that the finished good meets the regional value content 

requirement. 

The proposed modification is liberalizing because it would allow any subheading-level tariff change to confer origin 

and would eliminate the regional value content requirement. In addition, a good classified in subheading 9030.84 

could be made from or converted to a good of subheading 9030.89, and vice versa, potentially by adding or removing 

a recording device.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from the NAFTA countries for subheadings 9030.84 through 9030.89 

was 0.8 percent ad valorem in 2012. The U.S. NTR rate of duty is 1.7 percent ad valorem.

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rates of duty for subheadings 9030.84 through 9030.89 for Canada and Mexico are free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-316

CHAPTER 90

TABLE 3.203 Machines for balancing mechanical parts; test benches

HTS no. Existing rule Proposed rule Probable effect advice

9031.10–

9031.20

73. (A) A change to 

subheadings 9031.10 through 

9031.20 from any other 

heading; or

(B) A change to subheadings 

9031.10 through 9031.20 from 

subheading 9031.90, whether or 

not there is also a change from

any other heading, provided 

there is a regional value content 

of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

9031.10 through 9031.20 from 

any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.203: Modification and effect

Modification: The proposed rule covers machines for balancing mechanical parts and test benches. The current rule 

requires that for the finished product to claim origin, non-originating inputs used in making the goods covered in 

subheadings 9031.10 and 9031.20 must come from another heading. Alternatively, non-originating parts from 

subheading 9031.90 can be used provided the resulting finished good meets the regional value content requirement.

The proposed modification is liberalizing because it would replace the requirement for a change of heading with a 

requirement for a change from any other subheading. It would also eliminate the regional value content requirement. 

It would allow the machines of subheading 9031.10 to be combined with test benches of subheading 9031.20, or for 

goods of one of the covered subheadings to be converted to goods of one of the other subheadings in the group 

(assuming that is possible).

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from the NAFTA countries for subheadings 9031.10 through 9031.20 

was less than 0.5 percent ad valorem in 2012. The U.S. NTR rate of duty is 1.7 percent ad valorem. 

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rates of duty for subheadings 9031.10 through 9031.20 for Canada and Mexico are free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-317

CHAPTER 90

TABLE 3.204 Other optical instruments and appliances

HTS no. Existing rule Proposed rule Probable effect advice

9031.49 75A. (A) A change to 

subheading 9031.49 from any 

other heading; or

(B) A change to subheading 

9031.49 from subheading 

9031.90, whether or not there is 

also a change from any other

heading, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

9031.49 from any other 

subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.204: Modification and effect

Modification: The proposed rule covers a range of optical measuring or checking instruments, other than those for 

inspecting semiconductor wafers or photomasks. 

The current rule allows covered goods to retain their originating status when they are produced using non-originating 

inputs from any other heading. Alternatively, non-originating parts from subheading 9031.90, along with inputs from 

other headings, may be used provided the regional value content requirement is met for the finished instruments. 

The proposed rule is liberalizing because it would eliminate both the requirement for a change of heading and the 

regional value content requirement, allowing non-originating principal parts classified in subheading 9031.90 to be 

used.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from the NAFTA countries is less than 0.5 percent ad valorem in 

2012. The U.S. NTR rates of duty range from free to 3.5 percent ad valorem. 

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty for subheading 9031.49 for Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 
3-318

CHAPTER 90

TABLE 3.205 Coordinate-measuring machines

HTS no. Existing rule Proposed rule Probable effect advice

9031.49.aa 

[9031.49.40]

75. A change to tariff item 

9031.49.40 from any other 

tariff item, except from 

subheading 8537.10 or tariff 

item 9031.90.45.

A change to tariff item 

9031.49.aa [9031.49.40] from 

any other tariff item.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.205: Modification and effect

Modification: The current rule allows coordinate-measuring machines to claim originating status when they are 

produced using non-originating inputs from any other tariff item, but not when they are produced using boards, 

panels, and other bases for electrical distribution or control (subheading 8537.10) or bases and frames of coordinatemeasuring machines (tariff item 9031.90.45).

The proposed modification is liberalizing because it would eliminate the exclusions in the current rule and allow a 

change to coordinate-measuring machines from any other tariff item. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from the NAFTA countries for tariff line 9031.49.40 was 0.9 percent 

ad valorem in 2012. The U.S. NTR rate of duty is 3.5 percent ad valorem. In 2012, U.S. imports from Canada and 

Mexico together accounted for 10 percent of total U.S. imports under tariff line 9031.49.40.

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty for tariff item 9031.49.aa for Canada and Mexico is free. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. 

Note: Tariff item 9031.49.aa represents an 8-digit tariff item that is not harmonized at the international level. The 

applicable 8-digit codes are as follows: Canada, 9031.49.10; Mexico, 9031.49.01; and the United States, 9031.49.40.
3-319

CHAPTER 90

TABLE 2.206 Parts and accessories of measuring or checking instruments, appliances, and machines

HTS no. Existing rule Proposed rule Probable effect advice

9031.90 77. A change to subheading 

9031.90 from any other 

heading.

A change to a good of 9031.90 

from any other good within that 

subheading or any other 

subheading.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: None

U.S. total trade:

 Imports: Negligible

 Exports: None

U.S. production: Negligible

TABLE 3.206: Modification and effect

Modification: The current rule requires that for the finished goods to claim origin, non-originating inputs used to 

produce parts and accessories covered in subheading 9031.90 must be classified in other headings. 

The proposed modification is liberalizing because it would allow the parts and accessories of subheading 9031.90 to 

be made from non-originating inputs or components from another subheading or from within subheading 9031.90 

itself. Individual goods classifiable in that subheading could then be joined together to make subassemblies or 

complete goods classified in this subheading.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from the NAFTA countries for subheading 9031.90 was less than 0.5 

percent ad valorem in 2012. U.S. NTR rates of duty range from free to 3.5 percent ad valorem.

The proposed modification would likely have no effect on U.S. exports under NAFTA and on total U.S. exports. The 

MFN rate of duty for subheading 9031.90 for Canada and Mexico is free.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-320

CHAPTER 90

TABLE 3.207 Automatic regulating or controlling instruments and apparatus 

HTS no. Existing rule Proposed rule Probable effect advice

9032.20–

9032.81

78A.(A) A change to 

subheadings 9032.20 through 

9032.89 from any other 

heading; or

(B) A change to subheadings 

9032.20 through 9032.89 from 

subheading 9032.90, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value content 

of not less than:

(1) 45 percent where the 

transaction value method is 

used, or

(2) 35 percent where the net 

cost method is used.

A change to subheading 

9032.20 through 9032.81 from 

any other subheading, 

including another subheading 

within that group.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.207: Modification and effect

Modification: The proposed rule would cover manostats of subheading 9032.20 and hydraulic and pneumatic 

instruments of subheading 9032.81.

The current rule provides that such instruments and apparatus can claim origin even when made using nonoriginating inputs from another heading. Alternatively, such goods can incorporate non-originating principal parts and 

accessories of subheading 9032.90, provided that the finished good meets the regional value content requirement.

The proposed modification is liberalizing because it allows instruments to incorporate non-originating inputs from any 

other tariff subheading, and it eliminates the regional value content requirement. In addition, the proposed rule would 

allow an instrument of subheading 9032.81 to be converted to or combined with an instrument of subheading 

9032.20, and vice versa, to the extent that operation can occur.

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports. The effective tariff on U.S. imports from the NAFTA countries for subheadings 9032.20 through 9032.81 

was less than 0.5 percent ad valorem in 2012. U.S. NTR rates of duty range from 1.6 percent to 1.7 percent ad 

valorem. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. The MFN rate for Canada is free; however, the MFN rates for Mexico range from free to 15 percent ad 

valorem. Using estimated duties paid on U.S. exports to Mexico and total U.S. exports to NAFTA partners, the 

effective tariff on U.S. exports to the NAFTA partners in 2012 was 1.1 percent ad valorem.

1 U.S. exports to NAFTA 

account for only 17 percent of total U.S. exports in 2012. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on U.S. export data from USITC DataWeb/USDOC and Mexican import data from Mexican 

International Trade Integral Information System (SIICEX).
3-321

CHAPTER 90

TABLE 3.208 Automatic regulating or controlling instruments and apparatus other than thermostats, manostats, or 

hydraulic or pneumatic devices

HTS no. Existing rule Proposed rule1 Probable effect advice

9032.89 78A. (A) A change to 

subheadings 9032.20 through 

9032.89 from any other 

heading; or

(B) A change to subheadings 

9032.20 through 9032.89 from 

subheading 9032.90, whether or 

not there is also a change from 

any other heading, provided 

there is a regional value content 

of not less than:

(1) 45 percent where the 

transaction value method is 

used, or

(2) 35 percent where the net 

cost method is used.

A change to subheading 

9032.89 from any other 

heading; or

A change to subheading 

9032.89 from subheading

9032.90, whether or not there is 

a change from any other 

heading, provided there is a 

regional content value of not 

less than:

(a) 45 percent where the 

transaction value method is 

used, or

(b) 35 percent where the net 

cost method is used. 

U.S. trade under NAFTA:

 Imports: None

 Exports: None

U.S. total trade:

 Imports: None

 Exports: None

U.S. production: None

TABLE 3.208: Modification and effect

Modification: The proposed rule covers a variety of automatic regulating or controlling instruments and apparatus 

(not including thermostats, monostats, or hydraulic or pneumatic devices). The proposed rule would make no 

substantive change to the current NAFTA rule for subheading 9032.89.

Effect: The proposed modification would have no effect on U.S. trade under NAFTA, total U.S. trade, or U.S. 

production because the proposed rule would make no substantive change to the current NAFTA rule.

 1 If the good provided for in subheading 9032.89 is for use in a motor vehicle of Chapter 87, the provisions of Article 403 

may apply.
3-322

TABLE FOR HTS CHAPTER 94

TABLE 3.209 Medical, surgical, dental, or veterinary furniture; barber’s chairs and similar chairs; and parts

HTS no. Existing rule Proposed rule Probable effect advice

9402.10–

9402.90

3. A change to heading 9402 

from any other chapter.

A change to subheading 

9402.10 through 9402.90 from 

any other subheading, including 

another subheading within that 

group.

U.S. trade under NAFTA:

 Imports: None

 Exports: Negligible 

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.209: Modification and effect

Modification: The current rule allows medical, surgical, dental, or veterinary furniture; barber’s chairs and similar 

chairs; and parts to be made from non-originating inputs from outside chapter 94 without losing the finished goods’ 

eligibility for NAFTA preferential treatment.

The proposed modification would be liberalizing to the extent that furniture of one subheading could be turned into 

furniture of another subheading, or inputs from other headings of chapter 94 could be used to make goods of this 

heading. Under the proposed rule, non-originating inputs could come from any other subheading to confer origin.

However, parts of this furniture are classified along with their respective end product in subheadings 9402.10 and 

9402.90. The proposed rule still requires inputs produced in non-NAFTA countries to come from outside the 

subheading, meaning in practical terms that few products will likely qualify under the new rule. 

Effect: U.S. imports of these goods are already free of duty for all NTR countries; therefore, there would be no effect 

on U.S. imports under NAFTA or on total U.S. imports. 

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Although Mexico imposes duties ranging from 10 to 15 percent ad valorem on these products (Canada is 

free on an MFN basis), it is unlikely that many additional products would qualify under the proposed rules, as 

discussed above. 

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.
3-323

TABLE FOR HTS CHAPTER 95

TABLE 3.210 Various toys and games, including wheeled toys, dolls, and puzzles

HTS no. Existing rule Proposed rule Probable effect advice

9503.00–

9505.90

1. (A) A change to 

subheadings 9503.00 through 

9505.90 from any other 

chapter; or

(B) A change to a good of any 

of subheadings 9503.00 

through 9505.90 from within 

that subheading or any other 

subheading within chapter 95, 

including another subheading 

within that group, whether or 

not there is also a change from 

any other chapter, provided 

there is a regional value 

content of not less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 

9503.00 through 9505.90 

from any other subheading, 

including another subheading 

within that group; or 

No required change in tariff 

classification to any of 

subheading 9503.00 through 

9505.90, provided there is a 

regional value content of not 

less than:

(a) 45 percent where the 

transaction value method is 

used, or

(b) 35 percent where the net 

cost method is used.

U.S. trade under NAFTA:

 Imports: None

 Exports: Significant 

increase1

U.S. total trade:

 Imports: None

 Exports: Negligible

U.S. production: Negligible

TABLE 3.210: Modification and effect

Modification: In 2007, HS headings 9501 and 9502 were deleted and the goods formerly classified in them were 

transferred to heading 9503. The rules of origin were updated to allow previously recognized tariff changes to 

continue to confer origin. Under the current NAFTA rule, the use of non-originating inputs classified in chapter 95 in 

the manufacture of various toys and games, such as wheeled toys, dolls, and puzzles (subheadings 9503.00 through 

9505.90) does not confer origin, unless the final good meets the regional value content requirement. 

The proposed modification is liberalizing because it would allow the goods of subheading 9503.00 through 9505.90 to 

be made with non-originating inputs classified in any other subheading, including subheadings 9503.00 through 

9505.90, and still claim origin, without meeting the regional value content requirement. Alternatively, the proposed 

modification would confer origin with no change in classification provided the regional value content requirement is 

met. 

Effect: The proposed modification would have no effect on U.S. imports under NAFTA and on total U.S. imports of 

various toys and games (subheadings 9503.00 through 9505.90). The NTR rate of duty for these products is free.

The proposed modification could potentially result in a significant increase in U.S. exports to NAFTA partners, which 

totaled $985.6 million in 2012. Canada’s and Mexico’s MFN rates of duty for the goods in subheadings 9503.00 

through 9505.90 range from free to 15 percent ad valorem. Using the actual duties paid on U.S. exports to Canada 

and assuming the MFN rates apply to U.S. exports to Mexico, the effective tariff on U.S. exports of the subject goods 

to NAFTA partners in 2012 was 2.5 percent ad valorem.

2

 1 Results for this proposed modification are likely overstated because the analysis was based on the assumption that all U.S. 

exports to Mexico paid the MFN rate of duty. The effect on U.S. exports to NAFTA partners will be reduced to the extent that 

U.S. exports to Mexico currently receive the NAFTA preferential rate of duty. 2 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas.
3-324

TABLE 3.210: Modification and effect—Continued

The proposed modification would likely have a negligible effect on total U.S. exports. The effective tariff on total U.S. 

exports of products covered by the rule was less than 1 percent ad valorem in 2012.3 U.S. exports to NAFTA partners 

accounted for 38 percent of total U.S. exports in 2012.

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

none or negligible. In addition, the size of U.S. production is relatively large compared with any potential changes in 

U.S. trade with NAFTA partners.

 3 Calculated based on actual duties paid on U.S. exports to Canada and assuming the MFN rates apply to U.S. exports to 

Mexico of products covered by the proposed modification divided by total U.S. exports of all products covered by the proposed 

modification. Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, 

Mexican import data from Global Trade Atlas, and U.S. export data from USITC DataWeb/USDOC. 
3-325

TABLES FOR HTS CHAPTER 96

TABLE 3.211 Lighters

HTS no. Existing rule Proposed rule Probable effect advice

9613.10–

9613.80

10. (A) A change to 

subheadings 9613.10 through 

9613.80 from any other 

chapter; or

(B) A change to subheadings 

9613.10 through 9613.80 

from subheading 9613.90, 

whether or not there is also a

change from any other 

chapter, provided there is a 

regional value content of not 

less than:

(1) 60 percent where the 

transaction value method is 

used, or

(2) 50 percent where the net 

cost method is used.

A change to subheading 9613.10 

through 9613.80 from any other 

chapter; or

A change to subheading 9613.10 

through 9613.80 from subheading 

9613.90, whether or not there is 

also a change from any other 

chapter, provided there is a 

regional value content of not less 

than:

(a) 45 percent where the 

transaction value method is used, 

or

(b) 35 percent where the net cost 

method is used.

U.S. trade under NAFTA:

 Imports: Negligible

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.211: Modification and effect

Modification: Under the current rule, lighters (subheadings 9613.10-9613.80) can claim origin if they are made from 

non-originating inputs from any chapter other than chapter 96. Alternatively, if non-originating inputs from subheading 

9613.90 are used in the production of these lighters, whether or not there are non-originating inputs from any other 

chapter, the final product must meet the regional value content requirement.

The proposed modification is liberalizing because it would lower the regional value content to 45 percent from 

60 percent under the current rule where the transaction value method is used, and 35 percent from 50 percent where 

the net cost method is used. 

Effect: The proposed modification would likely have a negligible effect on U.S. imports under NAFTA and on total 

U.S. imports of subheadings 9613.10 through 9613.80. The effective tariff on U.S. imports from Canada and Mexico 

was less than 0.5 percent ad valorem in 2012. The U.S. NTR duty rate ranges from 3.6 percent ad valorem for “other 

lighters of precious metal” to 9 percent ad valorem for pocket lighters that are both refillable and gas-fueled. Dutiable 

U.S. imports from NAFTA partners accounted for 9 percent of U.S. imports of lighters from NAFTA partners and less 

than 1 percent of total U.S. imports of lighters.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico, which accounted for only 7 percent of U.S. exports to NAFTA partners, has three tariff items covered 

by the rule with MFN rates of duty of 15 percent ad valorem. Canada has four tariff items covered by the rule, with 

MFN rates of duty ranging from 6.5 to 9.5 percent ad valorem. Based on actual duties collected by Canada and 

estimated duties collected by Mexico, the estimated effective tariff on U.S. exports of the subject products to NAFTA 

was less than 0.5 percent ad valorem in 2012.1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division and Mexican 

import data from Mexican International Trade Integral Information System (SIICEX).
3-326

CHAPTER 96

TABLE 3.212 Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof

HTS no. Existing rule Proposed rule Probable effect advice

9614 12. (A) A change to roughly 

shaped blocks of wood or root 

for the manufacture of pipes 

of heading 9614 from any 

other chapter;

(B) A change to pipes or pipe 

bowls of heading 9614 from 

roughly shaped blocks of 

wood or root for the 

manufacture of pipes of 

heading 9614 or any other 

heading; or

(C) A change to any other 

good of heading 9614 from 

any other heading.

A change to a good of heading 

96.14 from any other good within 

that heading or any other heading.

U.S. trade under NAFTA:

 Imports: Significant 

increase

 Exports: Negligible

U.S. total trade:

 Imports: Negligible

 Exports: Negligible

U.S. production: Negligible

TABLE 3.212: Modification and effect

Modification: In 2007 the WCO restructured HS heading 9614 and deleted subheadings, one of which had provided 

for the goods named in parts (A) and (B) of the existing rule. The rule of origin for the heading was updated to allow 

previous tariff shifts to continue, resulting in more complex requirements. Under the current rule, if non-originating 

smoking pipes and bowls, cigarette holders, or parts of such articles that are classified in heading 9614 are used to 

make another article in heading 9614, that article generally cannot claim origin. Non-originating inputs are required to 

come from any chapter other than chapter 96 (part A) or from any heading other than heading 9614 (part C) to receive 

the NAFTA preferential rate of duty. The one exception is found in rule 12(B), which allows a pipe or bowl to be made 

from non-originating blocks of wood or root that have been roughly shaped. 

The proposed modification is liberalizing because it would allow smoking pipes and bowls, cigar and cigarette holders, 

and their parts to be made from a non-originating good classified in heading 9614 or any other heading.

Effect: The proposed modification would likely result in a significant increase in U.S. imports under NAFTA, albeit from 

a small base. The U.S. NTR duty rates for goods under heading 9614 range from free to 7.2 percent ad valorem. In 

2012, the effective tariff on U.S. imports of these goods from NAFTA partners was 2.5 percent ad valorem. However, 

U.S. imports from NAFTA partners of goods under heading 9614 totaled only $10,340 in 2012. 

The proposed modification would likely have a negligible effect on total U.S. imports. U.S. imports from NAFTA 

partners of goods covered by the proposed modification accounted for less than 0.5 percent of total U.S. imports of 

such goods in 2012.

The proposed modification would likely have a negligible effect on U.S. exports under NAFTA and on total U.S. 

exports. Mexico has two tariff items covered by the rule with an MFN rate of 15 percent ad valorem. Canada has three 

tariff items covered by the rule with MFN rates of duty ranging from free to 7 percent ad valorem. Exports to Canada 

accounted for 93 percent of U.S. exports under heading 9614 to NAFTA partners in 2012. Using the actual duties paid 

on U.S. exports to Canada and assuming the MFN rates apply to U.S. exports to Mexico, the effective tariff on U.S. 

exports to NAFTA partners in 2012 was 1.3 percent ad valorem.1

The effect on U.S. production would likely be negligible because the net effect on total U.S. trade is expected to be 

negligible. Also, any expected change in U.S. imports from NAFTA partners is likely small compared with U.S. 

production.

 1 Commission estimate based on Canadian import data from Statistics Canada, International Trade Division, and Mexican 

import data from Global Trade Atlas.
Bibliography 

Arkema, Inc. Written submissions to the U.S. International Trade Commission in connection with inv. no. 

103-027, Probable Economic Effect of Certain Modifications to the North American Free Trade 

Agreement Rules of Origin, July 22, 2013, and September 20, 2013.

Clorox Company. Written submission to the U.S. International Trade Commission in connection with inv. 

no. 103-027, Probable Economic Effect of Certain Modifications to the North American Free 

Trade Agreement Rules of Origin, June 4, 2013.

DEI Holdings, Inc. Written submission to the U.S. International Trade Commission in connection with 

inv. no. 103-027, Probable Economic Effect of Certain Modifications to the North American Free 

Trade Agreement Rules of Origin, May 31, 2013.

Eastman Chemical Company. Written submission to the U.S. International Trade Commission in 

connection with inv. no. 103-027, Probable Economic Effect of Certain Modifications to the 

North American Free Trade Agreement Rules of Origin, June 4, 2013.

Global Trade Information Service, Inc. (GTIS). Global Trade Atlas database (accessed May–July 2013).

Holst, Per A. “Analog Computer.” Access Science. McGraw Hill Education, 2012. 

http://www.accessscience.com.

IHS Chemical. Directory of Chemical Producers. 

http://www.ihs.com/products/chemical/companies/producers.aspx (accessed September 13, 

2013).

Siemens Energy, Inc. Written submission to the U.S. International Trade Commission in connection with 

inv. no. 103-027, Probable Economic Effect of Certain Modifications to the North American Free 

Trade Agreement Rules of Origin, June 4, 2013.

U.S. Department of Commerce (USDOC). U.S. Bureau of the Census (Census). Annual Survey of 

Manufacturers, 2011. http://www.census.gov/manufacturing/asm/.

U.S. Environmental Protection Agency (EPA). “Overview of Requirements for Pesticide Registration and 

Registrant Obligations.” Chapter 1 in Pesticide Registration Manual (Blue Book). 

http://www.epa.gov/pesticides/bluebook/chapter1.html#types (accessed May 28, 2013).

U.S. International Trade Commission (USITC). Interactive Tariff and Trade DataWeb (DataWeb)/U.S. 

Department of Commerce (USDOC). http://dataweb.usitc.gov (accessed April–June 2013).

–––––. Pharmaceutical Products and Chemical Intermediates, Fourth Review: Advice Concerning the 

Addition of Certain Products to the Pharmaceutical Appendix to the HTS. USITC Publication 

4181. Washington, DC: USITC, 2010. http://www.usitc.gov/publications/332/pub4181.pdf.

–––––. Probable Economic Effect of Certain Modifications to the United States–Chile Free Trade 

Agreement Rules of Origin. USITC Publication 4042. Washington, DC: USITC, 2008.

http://www.usitc.gov/publications/docs/pubs/103/pub4042.pdf.

Biblio-1
World Customs Organization website, Correlation Tables 2002–2007. http://www.wcoomd.org/en/topics/

nomenclature/instrument-and-tools/hs_nomenclature_older_edition/correlation_table_2007.aspx.

Biblio-2
APPENDIX A

Request Letter from USTR with attached

Proposed Modifications to the Rules of 

Origin, and Clarification to the Request 

Letter

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Ms. Lyn M. Schlitt 

Director, Office of External Relations

U. S. International Trade Commission 

500 E. Street, SW 

Washington, D.C. 20436 

Dear Ms. Schlitt:

Acting United States Trade Representative Demetrios Marantis has directed me to inform the 

United States International Trade Commission (“the Commission”) of certain clarifications to the 

list in the document attached to Ambassador Kirk’s letter request of March 11, 2013. 

Certain rules of origin in the attachment to Ambassador Kirk’s letter use the codes “.aa,” “.bb” 

etc., to designate tariff numbers beyond the six-digit level. For those proposed changes that use 

such designations, the Commission is requested to use the attached correlation table to identify 

the relevant tariff lines for Canada and Mexico.

The Commission’s assistance in this matter is greatly appreciated.

 Sincerely,

 John Melle 

 Assistant U.S. Trade Representative 

for the Western Hemisphere

A-41
NORTH AMERICAN FREE TRADE AGREEMENT

Impact of 2007 Harmonized System Amendments on Rules of Origin

Technical Rectifications to Tariff Items for NAFTA (Annex 401)

TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

1806.10.aa 1806.10.10 1806.10.43

1806.10.45

1806.10.55

1806.10.65

1806.10.75

1806.10.01 Containing 90 percent or more by 

weight of sugar

1901.10.aa 1901.10.20 1901.10.05

1901.10.15

1901.10.30

1901.10.35

1901.10.40

1901.10.45

1901.10.01 Containing over 10 percent by weight 

of milk solids

1901.20.aa 1901.20.11

1901.20.12

1901.20.21

1901.20.22

1901.20.02

1901.20.05

1901.20.15

1901.20.20

1901.20.25

1901.20.30

1901.20.35

1901.20.40

1901.20.01

1901.20.02

Containing over 25 percent by weight 

of butterfat, not put up for retail sale

1901.90.aa 1901.90.31

1901.90.32

1901.90.33

1901.90.34

1901.90.39

1901.90.51

1901.90.52

1901.90.53

1901.90.54

1901.90.59

1901.90.32

1901.90.33

1901.90.34

1901.90.36

1901.90.38

1901.90.42

1901.90.43

1901.90.03

1901.90.04

1901.90.05

Dairy preparations containing over 10 

percent by weight of milk solids

2008.11.aa 2008.11.20 2008.11.22

2008.11.25

2008.11.35

2008.11.01 Peanuts, blanched 

A-42
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

2101.11.aa 2101.11.10 2101.11.21 2101.11.01 Instant coffee, not flavoured

2103.20.aa 2103.20.10 2103.20.20 2103.20.01 Ketchup

2106.90.bb

2106.90.cc

2106.90.dd

2106.90.ee

2106.90.91

2106.90.92

2106.90.31

2106.90.32

2106.90.33

2106.90.34

2106.90.35

2106.90.93

2106.90.94

2106.90.95

2106.90.96

2106.90.48

2106.90.52

2106.90.54

2106.90.03

2106.90.06

2106.90.09

2106.90.22

2106.90.24

2106.90.26

2106.90.28

2106.90.62

2106.90.64

2106.90.66

2106.90.68

2106.90.72

2106.90.74

2106.90.76

2106.90.78

2106.90.80

2106.90.82

2106.90.12

2106.90.15

2106.90.18

2106.90.06

2106.90.07

2106.90.08

2106.90.10

2106.90.11

Concentrated fruit or vegetable juices, 

fortified with minerals or vitamins:

Of any single fruit or vegetable

Of mixtures of fruit or vegetable 

juices

Containing over 10 percent by weight 

of milk solids

Compound preparations, with an 

alcoholic strength exceeding 0.5 percent 

by volume, of a kind used in the 

manufacture of beverages

2202.90.aa

2202.90.bb

2202.90.cc

2202.90.31

2202.90.32

2202.90.41

2202.90.42

2202.90.43

2202.90.49

2202.90.30

2202.90.35

2202.90.36

2202.90.37

2202.90.10

2202.90.22

2202.90.24

2202.90.28

2202.90.02

2202.90.03

2202.90.04

Fruit or vegetable juices, fortified with 

minerals or vitamins:

Of any single fruit or vegetable

Of mixtures of fruit or 

vegetable juices

Beverages containing milk

A-43
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

2309.90.aa 2309.90.31

2309.90.32

2309.90.33

2309.90.35

2309.90.36

2309.90.22

2309.90.24

2309.90.28

2309.90.10

2309.90.11

Containing over 10 percent by weight 

of milk solids

2401.10.aa 2401.10.10 2401.10.21 2401.10.01 Wrapper tobacco

2401.20.aa 2401.20.10 2401.20.14 2401.20.02 Wrapper tobacco

2403.91.aa 2403.91.10 2403.91.20 2403.91.01 Of a kind used as wrapper tobacco

2905.49.aa 2905.49.10 2905.49.20 2905.49.02 Esters of glycerol formed with acids of 

heading 29.04

4008.19.aa 4008.19.10 4008.19.20

4008.19.60

4008.19.01 Profile shapes

4008.29.aa 4008.29.10 4008.29.20 4008.29.01 Profile shapes

4010.39.aa 4010.39.10 4010.39.10

4020.39.20

4010.39.01 Endless transmission belts (V-belts)

4012.20.aa 4012.20.20 4012.20.15

4012.20.60

4012.20.01 Of a kind used on vehicles, including 

tractors, for the on-highway transport of 

passengers or goods, or on vehicles of 

heading 87.05

4016.93.aa 4016.93.10 4016.93.10 4016.93.01

4016.93.02

4016.93.04

Of a kind for use in automotive goods 

of Chapter 87

4016.99.aa 4016.99.30 4016.99.30

4016.99.55

4016.99.10 Vibration control goods of a kind used 

in the vehicles of heading 87.01 through 

87.05

4105.10.aa 4105.10.21

4105.10.29

4105.10.10 4105.10.03 Wet blue

A-44
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

4106.21.aa 4106.21.21

4106.21.29

4106.21.10 4106.21.03 Wet blue

4106.31.aa 4106.31.10 4106.31.10 4106.31.01 Wet blue

5402.47.aa ex. 

5402.47.00

5402.43.10 5402.47.01 Wholly of polyester, measuring not less 

than 75 decitex but not more than 80 

decitex, and having 24 filaments per 

yarn

5402.52.aa 5402.52.10 5402.52.10 5402.52.02 Wholly of polyester, measuring not less 

than 75 decitex but not more than 80 

decitex, and having 24 filaments per 

yarn

5407.61.aa 5407.61.11

5407.61.19

5407.61.11

5407.61.21

5407.61.91

5407.61.01 Wholly of polyester, of single yarns 

measuring not less than 75 decitex but 

not more than 80 decitex, having 24 

filaments per yarn and with a twist of 

900 or more turns per meter

5408.22.aa 5408.22.11

ex. 

5408.22.23

5408.22.29

5408.22.10 5408.22.04 Of cuprammonium rayon

5408.23.aa 5408.23.11

5408.23.19

5408.23.11

5408.23.21

5408.23.05 Of cuprammonium rayon

5408.24.aa 5408.24.12

5408.24.19

5408.24.10 5408.24.01 Of cuprammonium rayon

5903.10.aa 5903.10.21

5903.10.29

5903.10.15

5903.10.18

5903.10.20

5903.10.25

5903.10.01 Of man-made fibers

5903.20.aa 5903.20.21

5903.20.22

5903.20.23

5903.20.29

5903.20.15

5903.20.18

5903.20.20

5903.20.25

5903.20.01 Of man-made fibers

A-45
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

5903.90.aa 5903.90.21

5903.90.29

5903.90.15

5903.90.18

5903.90.20

5903.90.25

5903.90.02 Of man-made fibers

5906.99.aa 5906.99.21

5906.99.22

5906.99.24

5906.99.29

5906.99.20

5906.99.25

5906.99.03 Of man-made fibers

5907.00.aa 5907.00.12

5907.00.17

5907.00.19

5907.00.05

5907.00.15

5907.00.60

5907.00.06 Of man-made fibers

6006.21.aa 6006.21.10 6006.21.10 6006.21.01 Circular knit, wholly of cotton yarns 

exceeding 100 metric number per single 

yarn

6006.22.aa 6006.22.10 6006.22.10 6006.22.01 Circular knit, wholly of cotton yarns 

exceeding 100 metric number per single 

yarn

6006.23.aa 6006.23.21

6006.23.29

6006.23.10 6006.23.01 Circular knit, wholly of cotton yarns 

exceeding 100 metric number per single 

yarn

6006.24.aa 6006.24.10 6006.24.10 6006.24.01 Circular knit, wholly of cotton yarns 

exceeding 100 metric number per single 

yarn

6103.39.aa 6103.39.90 6103.39.40

6103.39.80

6103.39.02

6103.39.99

Of other than artificial fibers

6104.39.aa 6104.39.90 6104.39.20 6104.39.02

6104.39.99

Of other than artificial fibers

6104.59.aa 6104.59.90 6104.59.40

6104.59.80

6104.59.02

6104.59.99

Of other than artificial fibers

6203.19.aa 6203.19.90 6203.19.50

6203.19.90

6203.19.02

6203.19.99

Of other than cotton or artificial fibers

A-46
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

6203.39.aa 6203.39.90 6203.39.50

6203.39.90

6203.39.02

6203.39.03

6203.39.99

Of other than artificial fibers

6204.19.aa 6204.19.90 6204.19.40

6204.19.80

6204.19.02

6204.19.03

6204.19.99

Of other than artificial fibers

6204.39.aa 6204.39.90 6204.39.60

6204.39.80

6204.39.02

6204.39.03

6204.39.99

Of other than artificial fibers

6204.59.aa 6204.59.90 6204.59.40 6204.59.02

6204.59.04

6204.59.05

6204.59.99

Of other than artificial fibers

6303.92.aa 6303.92.10 6303.92.10 6303.92.01 Made up from fabrics described in tariff 

item 5407.61.aa

6701.00.aa 6701.00.10 6701.00.30 6701.00.01 Articles of feathers or down

7011.20.aa 7011.20.10 7011.20.10 7011.20.02

7011.20.03

Cones

7101.10.aa 7101.10.10 7101.10.30 7101.10.01 Graded and temporarily strung for 

convenience of transport

7101.22.aa 7101.22.10 7101.22.30 7101.22.01 Graded and temporarily strung for 

convenience of transport

7304.41.aa 7304.41.11

7304.41.19

7304.41.30 7304.41.02 Of an external diameter of less than 

19 mm

7321.11.aa 7321.11.10 7321.11.30 7321.11.01

7321.11.02

Stoves or ranges (other than portable)

A-47
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

7321.90.aa

7321.90.bb

7321.90.cc

7321.90.21

7321.90.22

7321.90.23

7321.90.10

7321.90.20

7321.90.40

7321.90.05

7321.90.06

7321.90.07

Parts:

Of stoves or ranges (other than 

portable):

Cooking chambers, whether 

or not assembled 

Top surface panels with or 

without burners or control

Door assemblies, 

incorporating more than one 

of the following: inner panel, 

outer panel, window, 

insulation

7404.00.aa 7404.00.10

7404.00.20

7404.00.91

7404.00.30 7404.00.02 Spent anodes; waste and scrap with a 

copper content of less than 94 percent 

by weight

7407.10.aa 7407.10.11

7407.10.12

7407.10.15 7407.10.02 Hollow profiles

7407.21.aa 7407.21.21

7407.21.22

7407.21.15 7407.21.02 Hollow profiles

7407.29.aa ex. 

7407.29.21

ex.

7407.29.29 

7407.29.90

7407.29.16 7407.29.02

7407.29.03

Hollow profiles

7408.11.aa 7408.11.11

7408.11.12

7408.11.60 7408.11.01 With a maximum cross-sectional 

dimension not exceeding 9.5 mm

7506.10.aa 7506.10.10 7506.10.45 7506.10.01 Foil, not exceeding 0.15 mm in 

thickness

7506.20.aa 7506.20.10 7506.20.45 7506.20.01 Foil, not exceeding 0.15 mm in 

thickness

8102.95.aa 8102.95.10 8102.95.30 8102.95.01 Bars and rods

A-48
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8111.00.aa 8111.00.21

8111.00.22

8111.00.40

8111.00.60 8111.00.01 Manganese powders and articles of 

manganese

8406.90.aa

8406.90.bb

8406.90.cc

8406.90.22

8406.90.33

8406.90.34

8406.90.23

8406.90.36

8406.90.37

8406.90.21

8406.90.31

8406.90.32

8406.90.20

8406.90.50

8406.90.40

8406.90.70

8406.90.30

8406.90.60

8406.90.01

8406.90.02

8406.90.03

Rotors, finished for final assembly

Blades, rotating or stationary

Rotors, not further advanced than 

cleaned or machined for removal of 

fins, gates, sprues, and risers, or to 

permit location in finishing machinery

8407.34.aa

8407.34.bb

8407.34.10

8407.34.21

8407.34.29

8407.34.05

8407.34.14

8407.34.18

8407.34.25

8407.34.35

8407.34.44

8407.34.48

8407.34.55

8407.34.02

8407.34.99

Engines of a cylinder capacity 

exceeding 1000 cc but not exceeding 

2000 cc

Engines of a cylinder capacity 

exceeding 2000 cc

8414.59.aa see 

8414.80.aa

8414.59.30 see 

8414.80.aa

Turbochargers and superchargers for 

motor vehicles, where not provided for 

under subheading 8414.80

8414.80.aa 8414.80.10 8414.80.05 8414.80.14 Turbochargers and superchargers for 

motor vehicles, where not provided for 

under subheading 8414.59

8414.90.aa 8414.90.10 8414.90.30 8414.90.04 Stators and rotors of goods of 

subheading 8414.30

8415.90.aa 8415.90.11

8415.90.21

8415.90.22

8415.90.40 8415.90.01 Chassis, chassis bases and outer 

cabinets

A-49
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8418.99.aa 8418.99.10 8418.99.40 8418.99.04 Door assemblies incorporating more 

than one of the following: inner panel; 

outer panel; insulation; hinges; handles

8421.39.aa 8421.39.20 8421.39.40 8421.39.08 Catalytic converters

8421.91.aa

8421.91.bb

8421.91.10

8421.91.20

8421.91.20

8421.91.40

8421.91.02

8421.91.03

Drying chambers for the goods of 

subheading 8421.12 and other parts of 

clothes-dryers incorporating drying 

chambers

Furniture designed to receive the goods 

of subheading 8421.12

8422.90.aa

8422.90.bb

8422.90.10

 

8422.90.20

8422.90.02

8422.90.04

8422.90.03

8422.90.04

Water containment chambers for the 

goods of subheading 8422.11 and other 

parts of dishwashing machines of the 

household type incorporating water 

containment chambers

Door assemblies for the goods of 

subheading 8422.11

8427.10.aa 8427.10.10 8427.10.40 8427.10.01

8427.10.02

Rider-type, counterbalanced fork-lift 

trucks

8427.20.aa 8427.20.11

8427.20.19

8427.20.40 8427.20.04

8427.20.05

Rider-type, counterbalanced fork-lift 

trucks

8450.90.aa

8450.90.bb

8450.90.10

 

8450.90.20

 

8450.90.20

8450.90.40

8450.90.01

8450.90.02

Tubs and tub assemblies

Furniture designed to receive the goods 

of subheading 8450.11 through 8450.20

8451.90.aa

8451.90.bb

8451.90.10

 

8451.90.20

8451.90.30

8451.90.60

8451.90.01

8451.90.02

Drying chambers for the goods of 

subheading 8451.21 or 8451.29 and 

other parts of drying machines 

incorporating drying chambers

Furniture designed to receive the goods 

of subheading 8451.21 or 8451.29

A-50
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8455.90.aa 8455.90.10 8455.90.40 8455.90.01 Castings or weldments, individually 

weighing less than 90 tons, for the 

machines of heading 84.55

8459.70.aa 8459.70.10 8459.70.40 8459.70.02 Numerically controlled

8460.40.aa 8460.40.10 8460.40.40 8460.40.02 Numerically controlled

8460.90.aa 8460.90.10 8460.90.40 8460.90.01 Numerically controlled

8461.20.aa 8461.20.10 8461.20.40 8461.20.01 Numerically controlled

8461.30.aa 8461.30.10 8461.30.40 8461.30.01 Numerically controlled

8461.50.aa 8461.50.11

8461.50.19

8461.50.40 8461.50.01 Numerically controlled

8461.90.aa 8461.90.10 8461.90.30 8461.90.02 Numerically controlled

8462.91.aa 8462.91.10 8462.91.40 8462.91.01 Numerically controlled

8462.99.aa 8462.99.11

8462.99.19

8462.99.40 8462.99.01 Numerically controlled

8466.93.aa 8466.93.10

 

8466.93.15

8466.93.30

8466.93.53

8466.93.04 Bed, base, table, head, tail, saddle, 

cradle, cross slide, column, arm, saw 

arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support, and Cframe castings, weldments or 

fabrications

8466.94.aa 8466.94.10

 

8466.94.20

8466.94.65

8466.94.01 Bed, base, table, column, cradle, frame, 

bolster, crown, slide, rod, tailstock and 

headstock castings, weldments or 

fabrications

A-51
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8471.49.aa

8471.49.bb

8471.49.cc

8471.49.dd

8471.49.ee

8471.49.ff

8471.49.gg

8471.49.hh

8471.49.ii

8471.49.jj

8471.49.kk

8471.49.ll

8471.49.mm

8471.49.nn

8471.49.oo

8471.49.pp

8471.49.qq

8471.49.00 8471.49.00 

for all 

brought in as 

a system. 

The 

individual 

units are 

covered by 

the changes 

for 8471.60 

etc.

See Note 2 

to Chapter 

84 and Note 

to 8471.49

Digital processing units other than those 

of subheadings 8471.41 and 8471.50, 

whether or not containing in the same 

housing one or two of the following 

types of unit: storage units, input units, 

output units

Color cathode-ray tube monitors

Printer units:

Laser printers capable of producing 

more than 20 pages per minute

Other laser printers

Light bar type electronic

Ink jet

Thermal transfer

Ionographic

Combined input/output units

Display units with monochrome 

cathode-ray tubes; display units with 

flat panels exceeding 30.5 cm; other 

display units excluding display units 

with color cathode-ray tubes

Display units without a cathode-ray 

tube having a display diagonal not 

exceeding 30.5 cm

Optical scanners and magnetic ink 

recognition devices

Other input or output units

Storage units

Other control or adapter units

Other units suitable for physical 

incorporation into automatic data 

processing machines or units thereof

Separately housed power supplies

A-52
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8471.80.aa

8471.80.cc

8471.80.10

8471.80.91

8471.80.10

8471.80.40

8471.80.03

8471.80.01

Control or adapter units

Other units suitable for physical 

incorporation into automatic data 

processing machines or units thereof

8473.10.aa

8473.10.bb

8473.10.00 8473.10.20

8473.10.40

8473.10.60 

8473.10.01

8473.10.99

Parts for word processing machines of 

heading 84.69

Parts of other machines of heading 

84.69

8473.30.aa

8473.30.bb

8473.30.20

 

8473.30.30

8473.30.10

8473.30.20

8473.30.02

8473.30.03

Printed circuit assemblies

Parts and accessories, including face 

plates and lock latches, of printed 

circuit assemblies

8473.50.aa

8473.50.bb

8473.50.10

8473.50.20

8473.50.30

8473.50.60

8473.50.01

8473.50.02

Printed circuit assemblies

Parts and accessories, including face 

plates and lock latches, of printed 

circuit assemblies

8477.90.aa

8477.90.bb

8477.90.cc

8477.90.10

8477.90.20

 

8477.90.30

 

8477.90.25

8477.90.45

8477.90.65

8477.90.01

8477.90.02

8477.90.03

Base, bed, platen, clamp cylinder, ram 

and injection castings, weldments, and 

fabrications

Barrel screws

Hydraulic assemblies incorporating 

more than one of the following: 

manifold, valves, pump, oil cooler

8479.89.aa 8479.89.41

8479.89.49

8479.89.55 8479.89.25 Trash compactors

A-53
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8479.90.aa

8479.90.bb

8479.90.cc

8479.90.dd

8479.90.11

8479.90.12

8479.90.13

8479.90.14

8479.90.45

8479.90.55

8479.90.65

8479.90.75

8479.90.17

8479.90.15

8479.90.07

8479.90.04

Frame assemblies incorporating more 

than one of the following: baseplate, 

side frames, power screws, front plates

Ram assemblies incorporating a ram 

wrapper and/or ram cover

Container assemblies incorporating 

more than one of the following: 

container bottom, container wrapper, 

slide track, container front

Cabinet or cases

8482.99.aa 8482.99.11

8482.99.19

8482.99.05

8482.99.15

8482.99.25

8482.99.01

8482.99.02

8482.99.03

Inner or outer rings or races

8483.50.aa 8483.50.20 8483.50.60 8483.50.02 Fly wheels

8501.32.aa 8501.32.20 8501.32.45 8501.32.06 Electric motors that provide primary 

source for electric powered vehicles of 

subheading 8703.90

8503.00.aa 8503.00.10 8503.00.35

8503.00.45

8503.00.65

8503.00.01

8503.00.03

8503.00.05

Stators and rotors for the goods of 

heading 85.01.

8504.40.aa

8504.40.bb

8504.40.30

8504.40.40

8504.40.60

8504.40.70

8504.40.40

8504.40.10

8504.40.12

8504.40.14

8504.40.13

Power supplies for the automatic data 

processing machines of heading 84.71 

Speed drive controllers for electric 

motors

A-54
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8504.90.aa

8504.90.bb

8504.90.10

8504.90.20

8504.90.65

8504.90.75

8504.90.40

8504.90.02

8504.90.07

8504.90.08

Printed circuit assemblies for the goods 

of subheadings 8504.40 and 8504.90

Other parts of power supplies for 

automatic data processing machines of 

heading 84.71

8507.20.aa 8507.20.10 8507.20.40 8507.20.03 Batteries that provide primary source 

for electric cars.

8507.30.aa 8507.30.20 8507.30.40 8507.30.01.

aa

Batteries that provide primary source 

for electric cars

8507.40.aa 8507.40.10 8507.40.40 8507.40.01.

aa

Batteries that provide primary source 

for electric cars

8507.80.aa 8507.80.20 8507.80.40 8507.80.01.

aa

Batteries that provide primary source 

for electric cars

8509.90.aa 8509.90.20

8509.90.90

8509.90.25

8509.90.45

8509.90.02 Housings

8516.60.aa 8516.60.20 8516.60.40 8516.60.02

8516.60.03

Ovens, cooking stoves and ranges

A-55
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8516.90.aa

8516.90.bb

8516.90.cc

8516.90.dd

8516.90.ee

8516.90.ff

8516.90.gg

8516.90.hh

8516.90.10

8516.90.20

8516.90.30

8516.90.40

8516.90.50

8516.90.60

8516.90.70

8516.90.81

8516.90.82

8516.90.15

8516.90.25

8516.90.35

8516.90.45

8516.90.55

8516.90.65

8516.90.75

8516.90.85

8516.90.05

8516.90.02

8516.90.06

8516.90.07

8516.90.08

8516.90.09

8516.90.10

8516.90.01

Housings for the goods of subheading 

8516.33

Housings and steel bases for the goods 

of subheading 8516.40

Assemblies for the goods of subheading 

8516.50, incorporating more than one 

of the following: cooking chamber; 

structural supporting chassis; door; 

outer 

case

Printed circuit assemblies for the goods 

of subheading 8516.50

For the goods of tariff item 8516.60.aa:

Cooking chambers whether or not 

assembled

Top surface panels with or without 

heating elements or controls

Door assemblies incorporating 

more than one of the following: 

inner panel; outer panel; window; 

insulation

Housings for toasters

8518.30.aa 8518.30.10 8518.30.10 8518.30.03 Telephone handsets

8522.90.aa 8522.90.10 8522.90.25

8522.90.45

8522.90.65

8522.90.07 Printed circuit assemblies for the 

apparatus provided for in headings 

85.19 and 85.21

A-56
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8529.90.aa

8529.90.bb

8529.90.cc

8529.90.dd

8529.90.ee

8529.90.ff

8529.90.gg

8529.90.11

8529.90.12

8529.90.19

 

8529.90.20

8529.90.39

8529.90.31

8529.90.40

8529.90.50

8529.90.61

8529.90.69

8529.90.01

8529.90.03

8529.90.06

8529.90.09

8529.90.13

8529.90.16

8529.90.19

8529.90.23

8529.90.26

8529.90.29

8529.90.33

8529.90.36

8529.90.39

8529.90.43

8529.90.46

8529.90.49

8529.90.53

8529.90.63

8529.90.69

8529.90.73

8529.90.75

8529.90.76

8529.90.78

8529.90.81

8529.90.83

8529.90.85

8529.90.86

8529.90.06

8529.90.07

8529.90.08

8529.90.18

8529.90.09

8529.90.19

8529.90.10

8529.90.11

8529.90.12

Printed circuit assemblies for goods 

classified under heading 85.25 through 

85.28

Transceiver assemblies for the 

apparatus of subheading 8526.10, not 

elsewhere specified

Parts specified in Note 3 to Chapter 85, 

other than printed circuit assemblies 

classified under tariff item 8529.90.aa

Combinations of parts specified in Note 

3 to Chapter 85

Flat panel screen assemblies for 

reception apparatus for television, video 

monitors or video projectors of heading 

85.28 

Parts, including face plates and lock 

latches, of printed circuit assemblies

Other parts of goods of headings 85.25 

and 85.27 (except parts of cellular 

telephones)

8531.90.aa 8531.90.10 8531.90.15

8531.90.30

8531.90.02 Printed circuit assemblies

8533.40.aa 8533.40.10 8533.40.40 8533.40.05 Metal oxide varistors

A-57
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8533.90.aa 8533.90.10 8533.90.40 8533.90.02 For the goods of subheading 8533.40, 

of ceramic or metallic materials, 

electrically or mechanically reactive to 

changes in temperature

8535.90.aa 8535.90.30 8535.90.40 8535.90.08

8535.90.20

Motor starters and motor overload 

protectors

8536.30.aa 8536.30.10

8536.30.20

8536.30.40 8536.30.05 Motor overload protectors

8536.50.aa 8536.50.11

8536.50.12

8536.50.19

8536.50.40 8536.50.13

8536.50.14

Motor starters

8537.10.aa

8537.10.bb

8537.10.11

8537.10.91 

8537.10.21

8537.10.29

8537.10.30

8537.10.60

8537.10.05

8537.10.06

Assembled with outer housing or 

supports, for the goods of heading 

84.21, 84.22, 84.50 or 85.16

Motor control centers

8538.90.aa

8538.90.bb

8538.90.cc

8538.90.10

8538.90.20

8538.90.31

8538.90.39

8538.90.40

8538.90.10

8538.90.30

8538.90.60

8538.90.04

8538.90.05

8538.90.01

For the goods of tariff item 8535.90.aa, 

8536.30.aa or 8536.50.aa, of ceramic or 

metallic materials, electrically or 

mechanically reactive to changes in 

temperature

Printed circuit assemblies

Moulded parts

A-58
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8540.11.aa

8540.11.bb

8540.11.cc

8540.11.dd

8540.11.22

8540.11.21

8540.11.12

8540.11.11

8540.11.10

8540.11.24

8540.11.28

8540.11.30

8540.11.44

8540.11.48

8540.11.03

8540.11.05

8540.11.04

8540.11.01

8540.11.05

8540.11.02

Non-high definition, non-projection, 

having a video display diagonal 

exceeding 14 inches (35.56 cm)

Non-high definition, non-projection, 

having a video display diagonal not 

exceeding 14 inches (35.56 cm)

High definition, having a video display 

diagonal exceeding 14 inches 

(35.56 cm)

High definition, having a video display 

diagonal not exceeding 14 inches 

(35.56 cm)

8540.12.aa

8540.12.bb

8540.12.91

8540.12.99

8540.12.11

8540.12.19

8540.12.10

8540.12.50

8540.12.20

8540.12.70

8540.12.99

8540.12.01

Non-high definition

High definition

8540.91.aa 8540.91.10 8540.91.15 8540.91.01 Front panel assemblies

8540.99.aa 8540.99.10 8540.99.40 8540.99.03 Electron guns; radio frequency (RF) 

interaction structures for microwave 

tubes of subheading 8540.71 through 

8540.79

8548.10.aa 8548.10.10 8548.10.05

8548.10.15

8548.10.01 Spent primary cells, spent primary 

batteries and spent electric

accumulators

A-59
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8607.19.aa

8607.19.bb

8607.19.cc

8607.19.dd

8607.19.11

8607.19.19

8607.19.30

8607.19.21

8607.19.29

8607.19.30

8607.19.40

8607.19.03

8607.19.06

8607.19.12

8607.19.15

8607.19.01

8607.19.99

8607.19.06

8607.19.02

8607.19.03

8607.19.04

8607.19.05

8607.19.06

Axles

Parts of axles

Wheels, whether or not fitted with axles

Parts of wheels

8702.10.aa

8702.10.bb

8702.10.10

8702.10.20

8702.10.30

8702.10.60

8702.10.03

8702.10.04

8702.10.01

8702.10.02

Designed for the transport of 16 or more 

persons, including the driver

Other

8702.90.aa

8702.90.bb

8702.90.10

8702.90.20

8702.90.30

8702.90.60

8702.90.04

8702.90.05

8702.90.01

8702.90.02

8702.90.03

Designed for the transport of 16 or more 

persons, including the driver

Other

8706.00.aa

8706.00.bb

8706.00.20

8706.00.10

8706.00.90

8706.00.03

8706.00.15

8706.00.05

8706.00.25

8706.00.30

8706.00.50

8706.00.01

8706.00.02

8706.00.99

Chassis of vehicles of heading 87.03 

and subheadings 8704.21 and 8704.31

Chassis for other vehicles

8708.10.aa 8708.10.10 8708.10.30 8708.10.03 Bumpers, but not parts thereof

8708.29.aa

8708.29.cc

8708.29.11

8708.29.19

8708.29.20

8708.29.20

8708.29.15

8708.29.20

8708.29.19

Body stampings

Door assemblies

8708.70.aa 8708.70.11

8708.70.19

8708.70.05

8708.70.25

8708.70.45

8708.70.03

8708.70.04

Road wheels, but not parts or 

accessories thereof

A-60
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

8708.93.aa 8708.93.11

8708.93.19

8708.93.15

8708.93.60

8708.93.04 Clutches, but not parts thereof

8708.99.aa

8708.99.bb

8708.99.ee

8708.99.41

8708.99.49

8708.99.51

8708.99.59

8708.99.14

8708.99.15

8708.99.19

8708.99.03

8708.99.27

8708.99.55

8708.99.06

8708.99.31

8708.99.58

8708.99.15

8708.99.16

8708.99.40

8708.99.41

8708.99.67

8708.99.68

8708.99.11

8708.99.10

8708.99.99.

aa

Vibration control goods containing 

rubber

Doubled flanged wheel hub units 

incorporating ball bearings

Other parts for powertrains

8708.99.hh 8708.99.91

8708.99.99

8708.99.23

8708.99.24

8708.99.48

8708.99.49

8708.99.80

8708.99.81

8708.99.01

8708.99.02

8708.99.03

8708.99.04

8708.99.05

8708.99.06

8708.99.07

8708.99.08

8708.99.09

8708.99.12

8708.99.13

8708.99.14

8708.99.99

Other parts and accessories not 

elsewhere classified under subheading 

8708.99

9005.90.aa 9005.90.11

9005.90.91

9005.90.40 9005.90.01 Incorporating goods of heading 90.01 or 

90.02

9007.19.aa 9007.19.11

9007.19.19

9007.19.40 9007.19.01 Gyrostabilized

9018.11.aa

9018.11.bb

9018.11.10

9018.11.91

9018.11.30

9018.11.60

9018.11.01

9018.11.02

Electrocardiographs

Printed circuit assemblies

A-61
TARIFF

ITEM CANADA USA MEXICO DESCRIPTION

9018.19.aa

9018.19.bb

9018.19.10

9018.19.20

9018.19.55

9018.19.75

9018.19.05

9018.19.10

Patient monitoring systems

Printed circuit assemblies for parameter 

acquisition modules

9018.90.aa

9018.90.bb

9018.90.10

9018.90.20

9018.90.64

9018.90.68

9018.90.18

9018.90.24

Defibrillators

Printed circuit assemblies for the goods 

of tariff item 9018.90.aa

9022.90.aa

9022.90.bb

9022.90.10

9022.90.20

9022.90.05

9022.90.15

9022.90.01

9022.90.02

Radiation generator units

Radiation beam delivery units

9027.80.aa 9027.80.20 9027.80.25 9027.80.02 Nuclear magnetic resonance 

instruments

9027.90.aa 9027.90.20 9027.90.45 9027.90.03 Printed circuit assemblies for the goods 

of subheading 9027.80

9030.90.aa 9030.90.00 9030.90.25

9030.90.64

9030.90.68

9030.90.02 Printed circuit assemblies

9031.49.aa 9031.49.10 9031.49.40 9031.49.01 Coordinate-measuring machines

9031.90.aa 9031.90.10 9031.90.45 9031.90.02 Bases and frames for the goods of tariff 

item 9031.49.aa

A-62
APPENDIX B

Federal Register Notice

Federal Register / Vol. 78, No. 64 / Wednesday, April 3, 2013 / Notices 20137 

1Electronic Document Information System 

(EDIS): http://edis.usitc.gov. 

2United States International Trade Commission 

(USITC): http://edis.usitc.gov. 

3Electronic Document Information System 

(EDIS): http://edis.usitc.gov. 

4Handbook for Electronic Filing Procedures: 

http://www.usitc.gov/secretary/fed_reg_notices/ 

rules/handbook_on_electronic_filing.pdf. 

5Electronic Document Information System 

(EDIS): http://edis.usitc.gov. 

1850–1960 MPS) 121 S. Connor St., 

Sheridan, 13000212 

[FR Doc. 2013–07676 Filed 4–2–13; 8:45 am] 

BILLING CODE 4312–51–P 

INTERNATIONAL TRADE 

COMMISSION 

[Docket No. 2948] 

Certain Sleep-Disordered Breathing 

Treatment Systems and Components 

Thereof; Notice of Receipt of 

Complaint; Solicitation of Comments 

Relating to the Public Interest 

AGENCY: U.S. International Trade 

Commission. 

ACTION: Notice. 

SUMMARY: Notice is hereby given that 

the U.S. International Trade 

Commission has received a complaint 

entitled Certain Sleep-Disordered 

Breathing Treatment Systems and 

Components Thereof, DN 2948; the 

Commission is soliciting comments on 

any public interest issues raised by the 

complaint or complainant’s filing under 

section 210.8(b) of the Commission’s 

Rules of Practice and Procedure (19 CFR 

210.8(b)). 

FOR FURTHER INFORMATION CONTACT: Lisa 

R. Barton, Acting Secretary to the 

Commission, U.S. International Trade 

Commission, 500 E Street, SW., 

Washington, DC 20436, telephone (202) 

205–2000. The public version of the 

complaint can be accessed on the 

Commission’s Electronic Document 

Information System (EDIS) at EDIS 1, 

and will be available for inspection 

during official business hours (8:45 a.m. 

to 5:15 p.m.) in the Office of the 

Secretary, U.S. International Trade 

Commission, 500 E Street SW., 

Washington, DC 20436, telephone (202) 

205–2000. 

General information concerning the 

Commission may also be obtained by 

accessing its Internet server at United 

States International Trade Commission 

(USITC) at USITC 2. The public record 

for this investigation may be viewed on 

the Commission’s Electronic Document 

Information System (EDIS) at EDIS 3. 

Hearing-impaired persons are advised 

that information on this matter can be 

obtained by contacting the 

Commission’s TDD terminal on (202) 

205–1810. 

SUPPLEMENTARY INFORMATION: The 

Commission has received a complaint 

and a submission pursuant to section 

210.8(b) of the Commission’s Rules of 

Practice and Procedure filed on behalf 

of ResMed Corp., ResMed Inc. and 

ResMed Ltd. on March 28, 2013. The 

complaint alleges violations of section 

337 of the Tariff Act of 1930 (19 U.S.C. 

1337) in the importation into the United 

States, the sale for importation, and the 

sale within the United States after 

importation of certain sleep-disordered 

breathing treatment systems and 

components thereof. The complaint 

names as respondents Apex Medical 

Corp. of Taiwan; Apex Medical USA 

Corp. of CA; and Medical Depot Inc. (d/ 

b/a Drive Medical Design & 

Manufacturing) of NY. 

Proposed respondents, other 

interested parties, and members of the 

public are invited to file comments, not 

to exceed five (5) pages in length, 

inclusive of attachments, on any public 

interest issues raised by the complaint 

or section 210.8(b) filing. Comments 

should address whether issuance of the 

relief specifically requested by the 

complainant in this investigation would 

affect the public health and welfare in 

the United States, competitive 

conditions in the United States 

economy, the production of like or 

directly competitive articles in the 

United States, or United States 

consumers. 

In particular, the Commission is 

interested in comments that: 

(i) Explain how the articles 

potentially subject to the requested 

remedial orders are used in the United 

States; 

(ii) identify any public health, safety, 

or welfare concerns in the United States 

relating to the requested remedial 

orders; 

(iii) identify like or directly 

competitive articles that complainant, 

its licensees, or third parties make in the 

United States which could replace the 

subject articles if they were to be 

excluded; 

(iv) indicate whether complainant, 

complainant’s licensees, and/or third 

party suppliers have the capacity to 

replace the volume of articles 

potentially subject to the requested 

exclusion order and/or a cease and 

desist order within a commercially 

reasonable time; and 

(v) explain how the requested 

remedial orders would impact United 

States consumers. 

Written submissions must be filed no 

later than by close of business, eight 

calendar days after the date of 

publication of this notice in the Federal 

Register. There will be further 

opportunities for comment on the 

public interest after the issuance of any 

final initial determination in this 

investigation. 

Persons filing written submissions 

must file the original document 

electronically on or before the deadlines 

stated above and submit 8 true paper 

copies to the Office of the Secretary by 

noon the next day pursuant to section 

210.4(f) of the Commission’s Rules of 

Practice and Procedure (19 CFR 

210.4(f)). Submissions should refer to 

the docket number (‘‘Docket No. 2948’’) 

in a prominent place on the cover page 

and/or the first page. (See Handbook for 

Electronic Filing Procedures, Electronic 

Filing Procedures 4). Persons with 

questions regarding filing should 

contact the Secretary (202–205–2000). 

Any person desiring to submit a 

document to the Commission in 

confidence must request confidential 

treatment. All such requests should be 

directed to the Secretary to the 

Commission and must include a full 

statement of the reasons why the 

Commission should grant such 

treatment. See 19 CFR 201.6. Documents 

for which confidential treatment by the 

Commission is properly sought will be 

treated accordingly. All nonconfidential 

written submissions will be available for 

public inspection at the Office of the 

Secretary and on EDIS 5. 

This action is taken under the 

authority of section 337 of the Tariff Act 

of 1930, as amended (19 U.S.C. 1337), 

and of sections 201.10 and 210.8(c) of 

the Commission’s Rules of Practice and 

Procedure (19 CFR 201.10, 210.8(c)). 

Issued: March 29, 2013. 

By order of the Commission. 

Lisa R. Barton, 

Acting Secretary to the Commission. 

[FR Doc. 2013–07699 Filed 4–2–13; 8:45 am] 

BILLING CODE 7020–02–P 

INTERNATIONAL TRADE 

COMMISSION 

[Investigation No. TA–103–027] 

Probable Economic Effect of Certain 

Modifications to the North American 

Free Trade Agreement Rules of Origin 

AGENCY: United States International 

Trade Commission. 

ACTION: Institution of investigation and 

notice of opportunity to provide written 

comments. 

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B-3
20138 Federal Register / Vol. 78, No. 64 / Wednesday, April 3, 2013 / Notices 

SUMMARY: Following receipt of a request 

dated March 11, 2013 from the U.S. 

Trade Representative (USTR), under 

authority delegated by the President and 

pursuant to section 103 of the North 

American Free Trade Agreement 

(NAFTA) Implementation Act (19 U.S.C. 

3313), the Commission instituted 

investigation No. TA–103–027, Probable 

Economic Effect of Certain 

Modifications to the North American 

Free Trade Agreement Rules of Origin. 

DATES:

June 4, 2013: Deadline for filing 

written submissions. 

November 12, 2013: Transmittal of 

report to USTR. 

ADDRESSES: All Commission offices, 

including the Commission’s hearing 

rooms, are located in the United States 

International Trade Commission 

Building, 500 E Street SW., Washington, 

DC. All written submissions should be 

addressed to the Secretary, United 

States International Trade Commission, 

500 E Street SW., Washington, DC 

20436. The public record for this 

investigation may be viewed on the 

Commission’s electronic docket (EDIS) 

at http://www.usitc.gov/secretary/ 

edis.htm. 

FOR FURTHER INFORMATION CONTACT: 

Project Leader Kimberlie Freund (202– 

708–5402 or 

Kimberlie.freund@usitc.gov) or Deputy 

Project Leader Philip Stone (202–205– 

3424 or philip.stone@usitc.gov) for 

information specific to this 

investigation. For information on the 

legal aspects of this investigation, 

contact William Gearhart of the 

Commission’s Office of the General 

Counsel (202–205–3091 or 

william.gearhart@usitc.gov). The media 

should contact Margaret O’Laughlin, 

Office of External Relations (202–205– 

1819 or margaret.olaughlin@usitc.gov). 

Hearing-impaired individuals may 

obtain information on this matter by 

contacting the Commission’s TDD 

terminal at 202–205–1810. General 

information concerning the Commission 

may also be obtained by accessing its 

Internet server (http://www.usitc.gov). 

Persons with mobility impairments who 

will need special assistance in gaining 

access to the Commission should 

contact the Office of the Secretary at 

202–205–2000. 

Background: In his request letter 

(dated March 11, 2013), the USTR stated 

that U.S. negotiators have recently 

reached agreement in principle with 

representatives of the governments of 

Canada and Mexico on proposed 

modifications to Annex 401 of the 

NAFTA. Chapter 4 and Annexes 401 

and 403 of the NAFTA set forth the 

rules of origin for applying the tariff 

provisions of the NAFTA to trade in 

goods. Section 202(q) of the NAFTA 

Implementation Act (the Act) authorizes 

the President, subject to the 

consultation and layover requirements 

of section 103 of the Act, to proclaim 

such modifications to rules of origin as 

may from time to time be agreed to by 

the NAFTA countries. One of the 

requirements set out in section 103 of 

the Act is that the President obtain 

advice from the United States 

International Trade Commission. 

In the request letter, the USTR asked 

that the Commission provide advice on 

the probable economic effect of the 

proposed modifications on U.S. trade 

under the NAFTA, on total U.S. trade, 

and on domestic industries. The 

investigation covers a wide variety of 

articles, including edible preparations; 

mineral fuels; chemical products; 

plastics; rubber articles; cork; glass and 

glassware; copper, nickel, and other 

base metals; machinery and parts; rail 

locomotives; trailers; optical and 

medical instruments; furniture; toys and 

games; lighters; and smoking pipes. The 

USTR attached to the request letter a list 

of the proposed modifications to the 

NAFTA Rules of Origin. On March 19, 

2013, USTR provided the Commission 

with an additional document making 

certain clarifications to the list of 

modifications in the attachment to the 

March 11, 2013, letter in the form of a 

correlation table for certain tariff lines 

for Canada and Mexico. The request 

letter, the complete list of proposed 

modifications, and the clarifying 

correlation table are available on the 

Commission’s Web site at http:// 

www.usitc.gov/research_and_analysis/ 

What_We_Are_Working_On.htm. As 

requested, the Commission will provide 

its advice to USTR by November 12, 

2013. 

Written Submissions: No public 

hearing is planned. However, interested 

parties are invited to file written 

submissions and other information 

concerning the matters to be addressed 

in this investigation. All written 

submissions should be addressed to the 

Secretary. To be assured of 

consideration by the Commission, 

written submissions relating to the 

Commission’s advice should be 

submitted at the earliest possible date, 

and should be received not later than 

5:15 p.m. June 4, 2013. All written 

submissions must conform to the 

provisions of section 201.8 of the 

Commission’s Rules of Practice and 

Procedure (19 CFR 201.8). Section 201.8 

and the Commission’s Handbook on 

Filing Procedures require that interested 

parties file documents electronically on 

or before the filing deadline and submit 

eight (8) true paper copies by 12:00 p.m. 

eastern time on the next business day. 

In the event that confidential treatment 

of a document is requested, interested 

parties must file, at the same time as the 

eight paper copies, at least four (4) 

additional true paper copies in which 

the confidential information must be 

deleted (see the following paragraph for 

further information regarding 

confidential business information). 

Persons with questions regarding 

electronic filing should contact the 

Secretary (202–205–2000). 

Any submissions that contain 

confidential business information must 

also conform to the requirements of 

section 201.6 of the Commission’s Rules 

of Practice and Procedure (19 CFR 

201.6). Section 201.6 of the rules 

requires that the cover of the document 

and the individual pages be clearly 

marked as to whether they are the 

‘‘confidential’’ or ‘‘non-confidential’’ 

version, and that the confidential 

business information is clearly 

identified by means of brackets. All 

written submissions, except for 

confidential business information, will 

be made available for inspection by 

interested parties. 

The Commission may include some or 

all of the confidential business 

information submitted in the course of 

this investigation in the report it sends 

to the USTR and the President. As 

requested, the Commission will issue a 

public version of its report, with any 

confidential business information 

deleted, shortly after it transmits its 

report. 

Issued: March 28, 2013. 

By order of the Commission. 

Lisa R. Barton, 

Acting Secretary to the Commission. 

[FR Doc. 2013–07652 Filed 4–2–13; 8:45 am] 

BILLING CODE 7020–02–P 

DEPARTMENT OF JUSTICE 

[OMB Number 1125–0005] 

Agency Information Collection 

Activities; Proposed Collection; 

Comments Requested: Notice of Entry 

of Appearance as Attorney or 

Representative; Before the Board of 

Immigration Appeals (Form EOIR–27) 

ACTION: 60-Day Notice. 

The Department of Justice (DOJ), 

Executive Office for Immigration 

Review (EOIR) will be submitting the 

following information collection request 

to the Office of Management and Budget 

(OMB) for review and approval in 

mstockstill on DSK4VPTVN1PROD with NOTICES


B-4
APPENDIX C

Organizations Contacted

ORGANIZATIONS CONTACTED

The Commission solicited comments on the proposed rule modifications by issuing a public 

notice that appeared in the Federal Register (appendix B). The organizations listed below were 

contacted directly for information and views on the proposed rule modifications. 

3M Company

AA-Gear

Abbott Laboratories

Agilent Technologies

Air Products and Chemicals, Inc.

Akzo Nobel

Albaugh Inc.

Alcoa, Inc.

Allegheny Technologies, Inc.

Alstom

American Association of Exporters and 

Importers

American Chemistry Council

American Gear Manufacturers Association

American Gear, Inc.

American Petroleum Institute

American Precision Gear Co.

American Wire Producers Association

Amgen Inc.

Arkema Inc.

Ashland Inc.

Association for Manufacturing Technology 

Association of Equipment Manufacturers

Association of Home Appliance Manufacturers

BASF Corporation

Baxter International Inc.

Bayer CropScience, LP

Bayer HealthCare

Bayer MaterialScience LLC

Bozarth Tire Industry Consultants LLC

Bristol-Myers Squibb Company 

Cardinal Health

Celanese Corporation

Clariant International Ltd.

Clorox Services Company

ColorChem International Corp.

Computer and Communications Industry 

Association

Consolidated Precision Products Corp.

Consumer Electronics Association

Cork Institute of America

Cork Quality Council

Covidien

CropLife America

Cummins, Inc.

Deere & Company

Delphi Corporation

Dixie Chemical Company, Inc.

Dow Chemical Company 

Dresser-Rand

Drexel Chemical Co.

DSM North America

Dynamic Precision Group

DyStar L.P.

E. I. du Pont de Nemours and Company 

(DuPont)

Eastman Chemical Co.

Electronic Components Industry Association 

(ECIA)

Eli Lilly and Company

Elliott Group

Emerald Performance Materials

Evonik Industries AG

ExxonMobil

Fanwood Chemical Inc.

Fertilizer Institute 

Fire Equipment Manufacturers’ Association

Flexographic Technical Association and 

Converting Technology

FMC Corporation

Gardner Denver, Inc. 

General Electric Company

Goodyear Tire & Rubber Co.

Gowan Group

Griffin Gear

Honeywell International, Inc.

Industrial Heating Equipment Association

International Institute of Synthetic Rubber 

Producers, Inc. 

C-3
Johnson & Johnson

Kemira Oyj

LANXESS Corporation

LG Electronics

Lonza Inc.

Mallinckrodt Pharmaceuticals

Merck & Co., Inc.

Milliken & Company

Milwaukee Gear Company

Monsanto Company

Nation Ford Chemical Co.

National Association for Printing Leadership

National Association for Suppliers of Printing 

and Publishing Machinery

National Association of Printing Ink 

Manufacturers 

National Instruments Corporation

National Marine Manufacturers Association

National Petrochemicals and Refiners 

Association

Natural Gas Association

Newspaper Corp.

Nissan USA

Norac Pharma

Novartis Corporation

Oakley, Inc.

Oerlikon Fairfield

Orthopedic Device Forum

Panasonic Corporation

PCC Airfoils, a subsidiary of Precision 

Castparts Corp.

Pfizer Inc.

Philips Electronics North America Corporation

Photo Marketing Association

PPG Industries, Inc.

Rhodia Inc.

Robert Bosch LLC

Rolls Royce Energy Systems, Inc.

Rubber Manufacturers Association

Samsung Electronics America, Inc.

Sanofi US

Schafer Gear Works

Semiconductor Equipment Industry 

Association (SEMI) 

Semiconductor Industry Association (SIA) 

Sensient Technologies Corporation

Sensormatic Retail Solutions, a subsidiary of 

Tyco International

Siemens Corporation

SimplexGrinnell, a subsidiary of Tyco

International

Society of Chemical Manufacturers and 

Affiliates

Society of the Plastics Industry

Software and Information Industry Association

Solar Turbines, Inc., a subsidiary of 

Caterpillar, Inc.

Solvay Chemicals Inc.

Sony Corporation

Specialty Steel Industry of North America

Sun Chemical Corporation

Symrise Inc.

Syngenta Crop Protection, Inc.

Takeda Global Research & Development 

Center, Inc.

Tech America

Tessenderlo Kerley, Inc.

Tire Industry Association

Tire Retread & Repair Information Bureau 

United Color Manufacturing, Inc.

United Initiators, Inc.

United Technologies Corp.

Valent U.S.A. Corporation

Valve Manufacturers Association of America

Wacker Chemical Corporation 

C-4
APPENDIX D

Written Submissions to the Commission

D-3
D-4
D-5
D-6
D-7
D-8
D-9
June 4th, 2013 

United States International Trade Commission 

500 E Street SW 

Washington, DC 20436 

Re: Proposed Modifications to the NAFTA Rules of Origin – Docket 2948 

Dear Sir/Madam: 

After reviewing the proposed changes against our product lines, we believe that the modifications to the current NAFTA Rules of Origin 

proposed by the US Trade Representative will be beneficial for our company. 

 

The changes allow for tariff shifts that will simplify the analysis for many of our products. Currently we spend much time soliciting suppliers for 

the required details to comply under the existing rules of origin. Under the proposed changes, time spent on such requests will significantly 

diminish. 

 

There are many times where our suppliers cannot provide the details in time to compliantly claim NAFTA. We know that the goods are eligible, 

but we do not have the documents to support the claim. In those situations, we pay the duty and then once we have the information, request the 

benefit under a post entry adjustment. This is not only inefficient, but results in additional charges. 

 

We appreciate you reaching out to us for our comments on this matter. 

 

Thanks and Best Regards, 

Annette Smith 

The Clorox Company 

7200 Johnson Drive, C2-200P 

Pleasanton, CA 94588 

annette.smith@clorox.com

(925)368-8495 (direct telephone) 

D-10
May31,2013

CUSIUMSL NINU-AUTOMAIIUN

Secretary

U.S. lntemational Trade Commission Via Fed Ex

500 E. Street S.W.

Washington D.C. 20436

Re: Modifications to the North American Free Trade Agreement

Investigation No. TA-103-027

Dear Madam Secretary:

On behalf of our client DEI Holdings, Inc., located at One Viper Way in Vista California Weare

pleased to comment on the proposed modifications to the North American Free Trade

Agreement. We are specifically commenting on the proposed changes to Annex 401 of the North

American Free Trade Agreement NAFTA Rules of Origin in Chapter 85, Heading 8518.10

through 8518.30.

The following changes are proposed:

8518.10-8518.29, 8518.30, 85l8.30aa: Delete subheading 8518.10-8518.29, 8518.30 and

tariff item 8518.30aa and the rules of origin applicable thereto and replace with the

following:

8518.10-8518.30 A change to a good of any ofsubheading 8518.10 through 8518.30

from any other good within that subheading or any other subheading, including another

subheading within that group.

DEI Holdings, Inc.

Is the parent company of some of the most respected brands in the consumer electronics industry.

DEI Holdings is the largest designer and marketer in North America of premium audio (sold

Suite 1

9355 Airway Road

San Diego, Califomia 92154

tel 619.671.0376

solutions@zissergroup.com

wwW.zisscrgrnup.com

International Trade

Consu/ring and Management

D-11
U.S. International Trade Commission -2- May 31, 2013

under the Polk Audio, Definitive Technology and BOOM brand names) and consumer-branded

vehicle security and remote start systems (sold under Viper, Clifford, Python, AutoStart and

other brand names). The company currently employees over 186 people at its facility in Vista,

CA.

Polk Audio

Polk Audio is based in Baltimore, Maryland. The company was founded in 1972. Polk is one of

the nation’s leading audio speaker brands. The company designs, manufactures and distributes

high quality home audio products under the Polk Audio brand name. Polk audio currently

employees over 60 people at its facility in Baltimore, MD.

Definitive Technology

Definitive Technology is based in Owings Mills, Maryland. The company was founded in l99O.

Definitive Technology is one of the bestselling brands of audiophile grade loudspeakers in the

United States. The company is known for its superior materials, precise workmanship and

uncompromising sound quality. Definitive Technology currently employees over 19 people at its

facility in Owings Mills, MD.

As one of the nation’s leading audio speaker companies, DEI Holdings, Inc., strongly

recommends and supports the proposed changes to the NAFTA rules of origin as related to audio

speakers. Under the modified NAFTA rules of origin our client will greatly benefit from the

opportunity to expand audio speaker production in North America and more fully capitalize on

the benefits of the North American Free Trade Agreement. Under the modified NAFTA rules of

origin our client can expand production, reduce costs and become more cost competitive.

We recommend and encourage the U.S. Intemational Trade Commission to complete its

investigation and issue its final report recommending to the President of the United States that he

approve and accept the modifications to the NAFTA rules of origin as they relate to audio

D-12
U.S. International Trade Commission -3- May 31, 2013

speakers under Subheadings 8518.10 to 8518.30. We also encourage and support immediate

implementation of the modified NAFTA rules of origin as soon as possible.

We appreciate the opportunity to present these comments and recommendations and we look

forward to your favorable report recommending the proposed modifications to the NAFTA rules

of origin. Should the Commission require any additional information or have any questions

related to these comments please let us know.

Respectfully submitt ,

ll<..i@.tiil;t

Steven B. Zisser

Attomey for DEI Holdings, Inc.

SBZ:ss

D-13
D-14
D-15
D-16
D-17
D-18
D-19
D-20
D-21
D-22
D-23
May 9, 2013 

The Honorable Lisa R. Barton 

Acting Secretary 

United States International Trade Commission 

500 E Street SW 

Washington, DC 20436 

Regarding Investigation No.103-027- Probable Economic Effect of Certain Modifications to the North 

American Free Trade Agreement (NAFTA) Rules of Origin. 

Dear Acting Secretary Barton,

Thank you for the opportunity to comment on the probable effect to modifications to the NAFTA rules of 

origin. SOCMA strongly supports the changes that have been negotiated to the NAFTA rules of origin for the 

chemicals sector. At present, the rules of origin for our sector have proven to be very problematic. This became 

evident within a few years of NAFTA’s passage. We have been advocating for modifications, along the lines of 

what has been proposed, for many years. 

These recently negotiated changes in NAFTA go a long way towards meeting our objectives, that the rules of 

origin for our sector be harmonized as much as possible for all free trade agreements and eventually across all 

trade preference programs. This is especially important in this instance since Canada and Mexico have joined 

the Trans Pacific Partnership (TPP) negotiations. Movement towards harmonization helps members to 

streamline processes through convergence of paperwork, resulting in cost reduction. It also allows additional 

clarity in cases where multiple trade agreements exist among TPP member countries and more than one could 

be invoked. 

Please relay our appreciation to those that participated in accomplishing this important objective on our behalf. 

Kind regards, 

William E. Allmond, IV 

Vice President of Government and Public Relations 

D-24
APPENDIX E

Compilation of Applicable Non-Preference 

Tariff Rates for the United States, Canada, 

and Mexico

TABLE E.1 Compilation of applicable non-preference tariff rates for the United States, Canada, and Mexico

Harmonized System code U.S. NTR rate Canada MFN rate Mexico MFN rate

2103.90 Free–11.7%* 8–11% 20

2711.11 Free Free Free

2711.12–2711.14 Free Free–12.5% Free

2711.21 Free Free Free

2713.20 Free Free Free

2801.10–2804.90 Free–5.5% Free Free–7%

2805.19 Free–5.5% Free Free

2806.10–2810.00 Free–4.2% Free Free–7%

2811.11–2814.20 Free–4.2% Free Free–7%

2815.11–2815.30 Free–3.7% Free Free–5%

2816.10–2850.00 Free–5.5% Free–2% Free–7%

28.52–28.53 Free–3% Free–6.5% Free 

29 Free–6.5% Free–3% Free–15%

2901.10–2902.90 Free Free Free

2903.11–2903.15 2.3–5.5% Free Free

2903.19 Free–5.5% Free Free

2903.21–2903.69 Free–5.5% Free Free

2904.10–2904.90 Free–5.5% Free Free–7%

2905.11–2905.17 Free–5.5% Free–2% Free

2905.19 3.7–5.5% Free Free–7%

2905.22–2905.59 Free–5.5% Free–3% Free–15%

2906.11–2906.13 Free–5.5% Free Free

2906.19 Free–5.5% Free Free

2906.21–2906.29 Free–5.5% Free Free–7%

2907.11–2907.15 Free–5.5% Free–2% Free

2907.19 Free–5.5% Free Free

2907.21–2907.23 5.5% Free Free–7%

2907.29 Free–5.5% Free Free

2908.11–2911.00 Free–5.5% Free Free–7%

2912.11–2912.12 2.8–5.5% Free Free–7%

2912.19 3.7–5.5% Free Free–7%

2912.21–2912.60 Free–5.5% Free Free

2913.00–2914.70 Free–5.5% Free Free–7%

2915.11–2915.24 1.8–5.5% Free Free–10%

2915.29 Free–4.2% Free Free

2915.31–2915.36 3.7–5.5% Free Free–10%

2915.39 Free–5.5% Free Free–10%

2915.40–2915.70 1.8–5.5% Free Free–10%

E-3
TABLE E.1—Continued

Harmonized System code U.S. NTR rate Canada MFN rate Mexico MFN rate

2915.90 3.8–5.5% Free Free–10%

2916.11–2916.31 Free–6.5% Free Free–10%

2916.32 6.5% Free Free

2916.34–2916.39 Free–6.5% Free Free

2917.11–2917.33 Free–6.5% Free–3% Free–10%

2917.34 6.5% Free Free–7%

2917.35–2917.39 Free–6.5% Free Free–10%

2918.11–2918.18 Free–6.5% Free Free–5%

2918.19 Free–6.5% Free Free–5%

2918.21–2918.23 6.5% Free Free–5%

2918.29–2918.30 Free–6.5% Free Free–5%

2918.91–2918.99 Free–6.5% Free Free–10%

2919.10–2920.90 Free–6.5% Free Free–10%

2921.11 3.7% Free Free–10%

2921.19 Free–6.5% Free Free–5%

2921.21–2921.59 Free–6.5% Free Free–7%

2922.11–2922.21 Free–6.5% Free Free–10%

2922.29 Free–6.5% Free Free

2922.31–2922.50 Free–6.5% Free Free–10%

2923.10–2923.90 Free–6.2% Free Free–10%

2924.11–2924.21 Free–6.5% Free Free–10%

2924.23 6.5% Free Free

2924.24–2924.29 Free–6.5% Free Free–5%

2925.11–2929.90 Free–6.5% Free Free–10%

2930.20–2930.50 Free–6.5% Free Free–5%

2930.90 Free–6.5% Free Free–5%

2931.00–2933.99 Free–6.5% Free Free–7%

2934.10–2934.30 Free–6.5% Free Free–5%

2934.91–2934.99 Free–6.5% Free Free–5%

2935.00 Free–6.5% Free Free–5%

2937.11–2942.00 Free–6.5% Free Free–15%

3001.20 Free Free Free–5%

3002.10–3002.90 Free Free Free–15%

3006.10–3006.50 Free Free Free–15%

3006.60 Free Free 15%

3006.92 Free Free 15%

3102.10–3105.90 Free Free Free

32 Free–6.5% Free–6.5% Free–15%

3201.10–3203.00 Free–6.5% Free Free–15%

3204.11–3204.17 Free–6.5% Free–2% Free–10%

E-4
TABLE E.1—Continued

Harmonized System code U.S. NTR rate Canada MFN rate Mexico MFN rate

3204.19 Free–6.5% Free Free–5%

3204.20–3204.90 Free–6.5% Free Free–10%

32.05 Free–6.5% Free Free–5%

3206.11–3206.42 1.5–6.5% Free–6% Free–10%

3206.50 6.5% Free Free–5%

3304.10–3305.90 Free Free–6% 10%–15%

3402.11–3403.99 Free–6.5% Free–6.5% Free–15%

3404.20 Free Free–6.5% 10%

3404.90 Free Free–6.5% Free–10%

3506.10–3506.99 2.1–6.5% Free–6.5% 10%–15%

37.01–37.02 Free–4.9% Free–6.5% Free–10%

37.03–37.06 Free–3.7% Free–6.5% Free–15%

3707.10–3707.90 Free–6.5% Free–6.5% Free

38 Free–6.5%* Free–15.5% Free–15%

38.17–38.19 6.5% Free–6.5% Free–15%

3824.10–3824.83 Free–6.5% Free Free–10%

3824.90 Free–6.5% Free Free–10%

39–40 Free–14% Free–15.5% Free–15%

39.01–39.14 Free–6.5% Free–3% Free–10%

39.15–39.19 Free–6.5% Free–6.5% Free–15%

3920.10–3920.20 4.2% Free Free

3920.30–3920.51 3.1–6.5% Free Free

3920.59–3920.99 Free–6.5% Free Free

3921.11–3921.12 4.2–6.5% Free–2% Free–10%

3921.13 4.2–6.5% Free–2% Free

4001.10–4002.99 Free Free Free–10%

40.03–40.04 Free Free Free–15%

40.05–40.06 Free–2.9% Free Free–15%

4012.11–4012.19 Free–4% Free 15%

4012.20–4012.90 Free–4.2% Free–6.5% Free–15%

40.13–40.15 Free–14% Free–15.5% Free–15%

4016.10–4016.95 Free–4.2% Free–9.5% Free–15%

4016.99 Free–4.3% Free–6.5% Free–10%

4016.99.aa1 Free–2.5% 6.5% Free

40.17 2.7% Free–6.5% Free–5%

45.01–45.02 Free Free Free

4503.10 Free Free Free

1 The applicable 8-digit codes are as follows: Canada, 4016.99.30; Mexico, 4016.99.10; and the United States, 4016.99.30 

and 4016.99.55. 

E-5

 
TABLE E.1—Continued

Harmonized System code U.S. NTR rate Canada MFN rate Mexico MFN rate

4503.90 Free–14% Free Free

45.04 Free Free Free–15%

70.03–70.08 Free–8.8%* Free Free–15%

7009.10–7009.91 3.9–7.8% Free Free–15%

7009.92 6.5–7.8% Free 15%

70.10–70.20 Free–38% Free–6.5% 5%–15%

74.04 Free Free Free

7419.99 Free–3% Free–9.5% Free–15%

75.01–75.04 Free Free Free

7505.11–7505.12 2.5–3% Free Free

7505.21–7505.22 2.6–3% Free Free

7507.11–7508.90 2–3% Free–3% Free

78.06 1.2–3% Free Free

79.07 3% Free–3% Free

80.07 2.1–3% Free–3% Free–15%

8101.99 3.7–6.5% Free Free

8112.92– 8112.99 Free–4.9% Free Free

8406.10 Free–6.7% Free Free–15%

8406.81–8406.82 Free–6.7% Free Free–15%

8406.90.aa2 Free–6.7% Free Free

8406.90.bb3 Free–6.7% Free Free

8407.10–8407.34 Free–2.5% Free–6% Free–5%

8407.90 Free Free Free

8408.10 2.5% Free Free–5%

8408.20 Free–2.5% Free Free

8408.90 Free Free Free–5%

8411.11–8411.82 Free–2.5% Free–3.5% Free

8411.91 Free Free Free

8411.99 Free–2.4% Free Free

8412.10–8412.80 Free Free Free–15%

8424.10–8424.89 Free–2.9% Free–6.5% Free–15%

8427.20 Free Free Free–15%

8428.10–8430.69 Free Free Free–15%

8431.10–8431.49 Free Free Free

8432.10–8432.80 Free Free Free

8433.11–8433.60 Free Free Free–15%

2 The applicable 8-digit codes are as follows: Canada, 8406.90.22, 8406.90.33, 8406.90.34; Mexico, 8406.90.01; and the 

United States, 8406.90.20 and 8406.90.50. 3 The applicable 8-digit codes are as follows: Canada, 8406.90.23, 8406.90.36, 8406.90.37; Mexico, 8406.90.02; and the 

United States, 8406.90.40 and 8406.90.70. 

E-6

 
TABLE E.1—Continued

Harmonized System code U.S. NTR rate Canada MFN rate Mexico MFN rate

8435.10 Free Free Free

8436.10–8436.80 Free Free Free

8443.11–8443.19 Free–3.3% Free Free–5%

8443.31–8431.39 Free–3.3% Free Free–15%

8443.91 Free–2.6% Free Free

8443.99 Free Free Free

8462.91 4.4% Free Free–15%

8471.30 Free Free Free

8471.41 Free Free Free

8479.10–8479.82 Free–2.8% Free Free–15%

8479.89 Free–2.8% Free–7.5% Free–15%

8481.10–8481.30 2–5% Free Free–5%

8481.40–8481.80 2–5.6% Free Free–15%

8483.40–8483.90 3–5.7% Free Free–15%

8486.10–8486.90 Free Free Free

8509.80 Free–4.2% Free–8% Free–15%

8511.10–8511.80 Free–2.5% Free Free–15%

8514.10–8514.30 Free–4.2% Free Free–15%

8514.40 Free Free 10–15%

8517.12–8517.61 Free Free Free–15%

8517.62–8517.70 Free Free–6% Free–15%

8518.10–8518.30 Free–4.9% Free–6.5% Free–15%

8519.20–8519.89 Free–3.9% Free–5% Free–15%

8523.21–8523.51 Free–2.7%* Free–8.5% Free–10%

8523.59–8523.80 Free–1.8% Free–6% Free

8528.41 Free Free Free

8531.10 1.3% Free–6.5% Free–15%

8531.20 Free Free Free4

8531.90 Free–1.3% Free Free

8532.10–8532.90 Free Free Free–5%

8533.90 Free Free Free 

8545.11–8545.90 Free Free Free

85.46 Free–3% Free Free–5%

8547.10–8547.90 Free–4.6% Free Free

86.01–86.02 Free 9.5% Free

8716.90 Free–5.7% Free–6.5% Free–5%

4 The rate of duty shown in the WTO tables is 15 percent, but it was changed to free as of January 24, 2012. 

http://www.siicex–caaarem.org.mx/ (accessed June 3, 2013). 

E-7

 
TABLE E.1—Continued

Harmonized System code U.S. NTR rate Canada MFN rate Mexico MFN rate

9003.11–9003.19 Free–2.5% Free–2.5% Free

9004.10 2% 5% 10%

9004.90 2.5% Free–5% 10%

9019.10–9019.20 Free Free 5–10%

90.20 Free–2.5% Free Free–10%

9021.10–9021.90 Free Free Free–5%

9022.12–9022.30 Free–1.4% Free Free

9027.10–9027.50 Free–3.5% Free Free

9027.80 Free Free Free

9030.10 1.6% Free Free

9030.20 Free–1.7% Free Free

9030.31 1.7% Free Free

9030.39 1.7% Free Free

9030.40–9030.82 Free Free Free

9030.84–9030.89 1.7% Free Free

9031.10–9031.20 1.7% Free Free

9031.49 Free–3.5% Free Free

9031.49.aa5 3.5% Free Free

9031.90 Free–3.5% Free Free

9032.20–9032.81 1.6–1.7% Free Free–15%

9032.89 1.1–1.7% Free Free–15%

9402.10–9404.90 Free–12.8% Free–15.5% 10–15%

9503.00–9505.90 Free Free–8% Free–15%

9613.10–9613.80 3.6–9% 6.5–9.5% 15%

96.14 Free–7.2%* Free–7% Free–15%

Source: For the United States, Harmonized Tariff Schedule of the United States (2013); for Canada, Customs Tariff: 

Departmental Consolidation 2013, http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2013/menu-eng.html

(accessed February 12, 2013); and for Mexico, the WTO Integrated Database, 

(http://www.wto.org/english/tratop_e/schedules_e/goods_schedules_table_e.htm), accessed April 15, 2013, and June 

17, 2013. 

Note: The tariff rates for individual 8-digit subheadings are available for Canada at http://www.cbsa-asfc.gc.ca/tradecommerce/tariff-tarif/2013/menu-eng.html; for Mexico at http://www.siicex–caaarem.org.mx/; and for the United 

States at http://www.usitc.gov/tata/hts/index.htm.

* Contains products having specific and/or compound duty rates for which the 2012 calculated AVE is within the 

range shown.

5 The applicable 8-digit codes are as follows: Canada, 9031.49.10; Mexico, 9031.49.01; and the United States, 9031.49.40. 

E-8

 
APPENDIX F

Existing Rule for 8486.10, 8486.20, 8486.30, 

8486.40, and 8486.90

APPENDIX F Existing rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90

249. 

(A) A change to centrifuges of subheading 8486.10 from any other good of subheading 8486.10 or any other heading, 

except from heading 8421;

(B) A change to centrifuges of subheading 8486.10 from subheading 8486.90, whether or not there is also a change 

from any other good of subheading 8486.10 or any other heading, except from heading 8421, provided there is a 

regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(C) A change to machine-tools for working any material by removal of material by laser or other light or photon beam 

process of subheading 8486.10 from any other good of subheading 8486.10 or any other heading, except from 

heading 8456 or more than one of the following:

(1) bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support and C-frame castings, weldments or fabrications of subheading 8486.90,

(2) subheading 8537.10,

(3) subheading 9013.20;

(D) A change to machine-tools for working any material by removal of material by electro-chemical, electron beam, 

ionic-beam or plasma arc processes of subheading 8486.10 from any other good of subheading 8486.10 or any other 

heading, except from heading 8456 or more than one of the following:

(1) bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support and C-frame castings, weldments or fabrications of subheading 8486.90,

(2) subheadings 8413.50 through 8413.60,

(3) subheading 8501.32 or 8501.52,

(4) subheading 8537.10;

(E) A change to machine-tools for working stone, ceramics, concrete, asbestos-ceramic or like mineral materials or 

for cold-working glass of subheading 8486.10 from any other good of subheading 8486.10 or any other heading, 

except from heading 8464;

(F) A change to machine-tools for working stone, ceramics, concrete, asbestos-ceramic or like mineral materials or 

for cold-working glass of subheading 8486.10 from subheading 8486.90, whether or not there is also a change from 

any other good of subheading 8486.10 or any other heading, except from heading 8464, provided there is a regional 

value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(G) A change to furnaces and ovens of subheading 8486.10 from any other good of subheading 8486.10 or any other 

heading, except from heading 8514;

(H) A change to furnaces and ovens of subheading 8486.10 from subheading 8486.90, whether or not there is also a 

change from any other good of subheading 8486.10 or any other heading, except from heading 8514, provided there 

is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

F-3
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90

249.—Continued

(I) A change to other machines and mechanical appliances of subheading 8486.10 from any other good of 

subheading 8486.10 or any other heading, except from heading 8479;

(J) A change to other machines and mechanical appliances of subheading 8486.10 from subheading 8486.90, 

whether or not there is also a change from any other good of subheading 8486.10 or any other heading, except from 

heading 8479, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(K) A change to sawing machines of subheading 8486.10 from any other good of subheading 8486.10 or any other 

heading, except from heading 8464;

(L) A change to sawing machines of subheading 8486.10 from subheading 8486.90, whether or not there is also a 

change from any other good of subheading 8486.10 or any other heading, except from heading 8464, provided there 

is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(M) A change to other electrical machinery and apparatus having individual functions of subheading 8486.10 from 

any other good of subheading 8486.10 or any other heading, except from heading 8543;

(N) A change to other electrical machinery and apparatus having individual functions of subheading 8486.10 from 

subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.10 or any other 

heading, except from heading 8543, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(O) A change to microwave amplifiers of subheading 8486.10 from any other good of subheading 8486.10 or any 

other heading, except from subheading 8504.40, printed circuit assemblies of subheading 8543.90 or any other good 

of heading 8543;

(P) A change to microwave amplifiers of subheading 8486.10 from subheading 8486.90, 8504.40 or printed circuit assemblies of 

subheading 8486.90 or 8543.90, whether or not there is also a change from any other good of subheading 8486.10 or any other 

heading, except from any other good of heading 8543, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(Q) A change to any other good of subheading 8486.10 from any other good within subheading 8486.10 or any other heading, 

except from heading 8419;

(R) A change to any other good of subheading 8486.10 from subheading 8486.90, whether or not there is also a change from any 

other good within subheading 8486.10 or any other heading, except from heading 8419, provided there is a regional value content of 

not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used.

F-4
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

250.

(A) A change to spin dryers for semiconductor wafer processing of subheading 8486.20 from any other good of 

subheading 8486.20 or any other heading, except from heading 8421;

(B) A change to spin dryers for semiconductor wafer processing of subheading 8486.20 from subheading 8486.90, 

whether or not there is also a change from any other good of subheading 8486.20 or any other heading, except from 

heading 8421, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or 

(2) 50 percent where the net cost method is used;

(C) A change to mechanical appliances of subheading 8486.20 from any other good of subheading 8486.20 or any 

other heading, except from heading 8424;

(D) A change to mechanical appliances of subheading 8486.20 from subheading 8486.90, whether or not there is 

also a change from any other good of subheading 8486.20 or any other heading, except from heading 8424, provided 

there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(E) A change to machine-tools for working any material by removal of material by laser or other light or photon beam 

process of subheading 8486.20 from any other good of subheading 8486.20 or any other heading, except from 

heading 8456 or more than one of the following:

(1) bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support, and C-frame castings, weldments or fabrications of subheading 8486.90,

(2) subheading 8537.10,

(3) subheading 9013.20;

(F) A change to machine-tools for working any material by removal of material by electro-chemical, electron beam, 

ionic-beam or plasma arc processes for dry-etching patterns on semiconductor materials of subheading 8486.20 from 

any other good of subheading 8486.20 or any other heading, except from heading 8456 or more than one of the 

following:

(1) bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support and C-frame castings, weldments or fabrications of subheading 8486.90,

(2) subheadings 8413.50 through 8413.60,

(3) subheading 8501.32 or 8501.52,

(4) subheading 8537.10;

(G) A change to numerically controlled machine-tools (including presses) for working metal by bending, folding, 

straightening or flattening of subheading 8486.20 from any other good of subheading 8486.20 or any other heading, 

except from heading 8462 or more than one of the following:

(1) subheadings 8413.50 through 8413.60, 

(2) flywheels of subheading 8483.50,

(3) bed, base, table, column, cradle, frame, bolster, crown, slide, rod, tailstock and headstock castings, weldments or 

fabrications of subheading 8486.90,

(4) subheadings 8501.32 or 8501.52,

F-5
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

250.—Continued

(5) subheading 8537.10;

(H) A change to machine tools (including presses) not numerically controlled for working metal by bending, folding, 

straightening or flattening of subheading 8486.20 from any other good of subheading 8486.20 or any other heading, 

except from heading 84.62 or the following:

(1) bed, base, table, column, cradle, frame, bolster, crown, slide, rod, tailstock and headstock castings, weldments or 

fabrications of subheading 8486.90, or

(2) flywheels of subheading 8483.50;

(I) A change to machine-tools for working stone, ceramics, concrete, asbestos-ceramic or like mineral materials or for 

cold-working glass of subheading 8486.20 from any other good of subheading 8486.20 or any other heading, except 

from heading 8464;

(J) A change to machine-tools for working stone, ceramics, concrete, asbestos-ceramic or like mineral materials or for 

cold-working glass of subheading 8486.20 from subheading 8486.90, whether or not there is also a change from any 

other good of subheading 8486.20 or any other heading, except from heading 8464, provided there is a regional 

value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(K) A change to other machine-tools (including machines for nailing, stapling, glueing or otherwise assembling) for 

working hard rubber, hard plastics or similar hard material of subheading 8486.20 from any other good of subheading 

8486.20 or any other heading, except from heading 8465 or subheading 8466.91;

(L) A change to other machine-tools (including machines for nailing, stapling, glueing or otherwise assembling) for 

working hard rubber, hard plastics or similar hard material of subheading 8486.20 from subheading 8466.91 or 

8486.90, whether or not there is also a change from any other good of subheading 8486.20 or any other heading, 

except from heading 8465, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or (2) 50 percent where the net cost method is used;

(M) A change to extruders of subheading 8486.20 from any other good of subheading 8486.20 or any other 

subheading, except from base, bed, platen, clamp cylinder, ram or injection castings, weldments or fabrications of 

subheading 8477.90 or 8486.90 or more than one of the following:

(1) barrel screws of subheading 8477.90,

(2) subheading 8537.10;

(N) A change to blow molding machines of subheading 8486.20 from any other good of subheading 8486.20 or any 

other subheading, except from base, bed, platen, clamp cylinder, ram or injection castings, weldments or fabrications 

of subheading 8477.90 or 8486.90 or more than one of the following:

(1) hydraulic assemblies incorporating more than one of the following: manifold, valves, pump, oil cooler of 

subheading 8477.90,

(2) subheading 8537.10;

(O) A change to other machinery for working rubber or plastics or for the manufacture of products from these 

materials of subheading 8486.20 from any other good of subheading 8486.20 or any other heading, except from 

heading 8477 or blow molding machines of subheading 8486.20; (P) A change to other machinery for working rubber 

or plastics or for the manufacture of products from these materials of subheading 8486.20 from subheading 8486.90, 

whether or not there is also a change from any other good of subheading 8486.20 or any other heading, except from 

heading 8477 or blow molding machines of subheading 8486.20, provided there is a regional value content of not 

less than:

F-6
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

250.—Continued

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(Q) A change to other machines and mechanical appliances of subheading 8486.20 from any other good of 

subheading 8486.20 or any other heading, except from heading 8479;

(R) A change to other machines and mechanical appliances of subheading 8486.20 from subheading 8486.90, 

whether or not there is also a change from any other good of subheading 8486.20 or any other heading, except from 

heading 8479, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(S) A change to furnaces and ovens of subheading 8486.20 from any other good of subheading 8486.20 or any other 

heading, except from heading 8514;

(T) A change to furnaces and ovens of subheading 8486.20 from subheading 8486.90, whether or not there is also a 

change from any other good of subheading 8486.20 or any other heading, except from heading 8514, provided there 

is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(U) A change to other electric (including electrically heated gas) machines and apparatus of subheading 8486.20 

from any other good of subheading 8486.20 or any other heading, except from heading 8515;

(V) A change to other electric (including electrically heated gas) machines and apparatus of subheading 8486.20 from 

subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.20 or any other 

heading, except from heading 8515, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(W) A change to ion implanters for doping semiconductor materials of subheading 8486.20 from any other good of 

subheading 8486.20 or any other heading, except from other electrical machinery and apparatus having individual 

functions of subheading 8486.20 or heading 8543;

(X) A change to ion implanters for doping semiconductor materials of subheading 8486.20 from subheading 8486.90, 

whether or not there is also a change from any other good of subheading 8486.20 or any other heading, except from 

other electrical machinery and apparatus having individual functions of subheading 8486.20 or heading 8543, 

provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(Y) A change to other electrical machinery and apparatus having individual functions of subheading 8486.20 from any 

other good of subheading 8486.20 or any other heading, except from ion implanters for doping semiconductor 

materials of subheading 8486.20 or heading 8543;

F-7
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

250.—Continued

(Z) A change to other electrical machinery and apparatus having individual functions of subheading 8486.20 from 

subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.20 or any other 

heading, except from ion implanters for doping semiconductor materials of subheading 8486.20 or heading 8543, 

provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(AA) A change to apparatus for the projection or drawing of circuit patterns on sensitized semiconductor materials of 

subheading 8486.20 from any other good of subheading 8486.20 or any other heading, except from heading 9010;

(BB) A change to apparatus for the projection or drawing of circuit patterns on sensitized semiconductor materials of 

subheading 8486.20 from subheading 8486.90, whether or not there is also a change from any other good of 

subheading 8486.20 or any other heading, except from heading 9010, provided there is a regional value content of 

not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(CC) A change to any other good of subheading 8486.20 from any other good within subheading 8486.20 or any 

other heading, except from heading 8419; or

(DD) A change to any other good of subheading 8486.20 from subheading 8486.90, whether or not there is also a 

change from any other good within subheading 8486.20 or any other heading, except from heading 8419, provided 

there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used.

251.

(A) A change to machine-tools for working any material by removal of material by electro-chemical, electron beam, 

ionic-beam, electro-discharge or plasma arc processes of subheading 8486.30 from any other good of subheading 

8486.30 or any other heading, except from heading 84.56 or more than one of the following:

(1) bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support and C-frame castings, weldments or fabrications of subheading 8486.90,

(2) subheadings 8413.50 through 8413.60,

(3) subheadings 8501.32 or 8501.52,

(4) subheading 8537.10;

(B) A change to machine-tools for working stone, ceramics, concrete, asbestos-ceramic or like mineral materials or 

for cold-working glass of subheading 8486.30 from any other good of subheading 8486.30 or any other heading, 

except from heading 8464 or subheading 8466.91;

(C) A change to machine-tools for working stone, ceramics, concrete, asbestos-ceramic or like mineral materials or 

for cold-working glass of subheading 8486.30 from subheading 8466.91or 8486.90, whether or not there is also a 

change from any other good of subheading 8486.30 or any other heading, except from heading 8464, provided there 

is a regional value content of not less than:

F-8
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

251.—Continued

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(D) A change to mechanical appliances (whether or not hand-operated) other than agricultural or horticultural 

appliances for projecting, dispersing or spraying liquids or powders of subheading 8486.30 from any other good of 

subheading 8486.30 or any other heading, except from heading 8424; or

(E) A change to mechanical appliances (whether or not hand-operated) other than agricultural or horticultural 

appliances for projecting, dispersing or spraying liquids or powders of subheading 8486.30 from subheading 8486.90, 

whether or not there is also a change from any other good of subheading 8486.30 or any other heading, except from 

heading 8424, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(F) A change to centrifuges of subheading 8486.30 from any other good of subheading 8486.30 or any other heading, 

except from heading 8421;

(G) A change to centrifuges of subheading 8486.30 from subheadings 8421.91 through 8421.99, whether or not there 

is also a change from any other good of subheading 8486.30 or any other heading, except from subheadings 8421.11 

through 8421.39, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or 

(2) 50 percent where the net cost method is used;

(H) A change to machine tools operated by laser or other light or photon beam processes of subheading 8486.30 

from any other good of subheading 8486.30 or any other heading, except from heading 8456 or more than one of the 

following:

(1) bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support and C-frame castings, weldments or fabrications of subheading 8486.90,

(2) subheading 8537.10,

(3) subheading 9013.20;

(I) A change to machine tools operated by ultrasonic processes of subheading 8486.30 from any other good of 

subheading 8486.30 or any other heading, except from heading 8456 or more than one of the following:

(1) bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support and C-frame castings, weldments or fabrications of subheading 8486.90,

(2) subheadings 8413.50 through 8413.60,

(3) subheadings 8501.32 or 8501.52,

(4) subheading 8537.10;

(J) A change to sawing machines of subheading 8486.30 from any other good of subheading 8486.30 or any other 

heading, except from heading 8464 or subheading 8486.90;

F-9
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

251.—Continued

(K) A change to sawing machines of subheading 8486.30 from subheading 8486.90, whether or not there is also a 

change from any other good of subheading 8486.30 or any other heading, except from heading 8464, provided there 

is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(L) A change to industrial robots of subheading 8486.30 from any other good of subheading 8486.30 or any other 

heading, except from heading 8479;

(M) A change to industrial robots of subheading 8486.30 from subheading 8486.90, whether or not there is also a 

change from any other good of subheading 8486.30 or any other heading, except from heading 8479, provided there 

is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(N) A change to apparatus or equipment for photographic laboratories, negatoscopes or projection screens of 

subheading 8486.30 from any other good of subheading 8486.30 or any other heading, except from heading 9010;

(O) A change to apparatus or equipment for photographic laboratories, negatoscopes or projection screens of 

subheading 8486.30 from subheading 8486.90, whether or not there is also a change from any other good of 

subheading 8486.30 or any other heading, except from heading 9010, provided there is a regional value content of 

not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(P) A change to other electrical machinery and apparatus having individual functions of subheading 8486.30 from any 

other good of subheading 8486.30 or any other heading, except from heading 8543;

(Q) A change to other electrical machinery and apparatus having individual functions of subheading 8486.30 from 

subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.30 or any other 

heading, except from heading 8543, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(R) A change to microwave amplifiers of subheading 8486.30 from any other good of subheading 8486.30 or any 

other heading, except from subheading 8504.40, printed circuit assemblies (PCAs) of subheading 8543.90 or any 

other good of heading 8543;

(S) A change to microwave amplifiers of subheading 8486.30 from subheading 8486.90, 8504.40 or PCAs of 

subheading 8543.90, whether or not there is also a change from any other good of subheading 8486.30 or any other 

heading, except from any other good of heading 8543, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

F-10
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

251.—Continued

(T) A change to any other good of subheading 8486.30 from any other good within subheading 8486.30 or any other 

heading, except from heading 8479 or industrial robots of subheading 8486.30; or

(U) A change to any other good of subheading 8486.30 from subheading 8486.90, whether or not there is also a 

change from any other good within subheading 8486.30 or any other heading, except from heading 8479 or industrial 

robots of subheading 8486.30, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used.

252.

(A) A change to vacuum molding machines and other thermoforming machines of subheading 8486.40 from any 

other good of subheading 8486.40 or any other heading, except from heading 8477 or other molding or otherwise 

forming machinery for working rubber or plastics of subheading 8486.40;

(B) A change to vacuum molding machines and other thermoforming machines of subheading 8486.40 from 

subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.40 or any other 

heading, except from heading 8477 or other molding or otherwise forming machinery for working rubber or plastics of 

subheading 8486.40, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(C) A change to injection or compression type moulds for working rubber or plastics of subheading 8486.40 from any 

other good of heading 8486 or any other heading, except from heading 8480;

(D) A change to other molding or otherwise forming machinery for working rubber or plastics of subheading 8486.40 

from any other good of subheading 8486.40 or any other heading, except from vacuum molding machines and other 

thermoforming machines of subheading 8486.40 or heading 8477;

(E) A change to other molding or otherwise forming machinery for working rubber or plastics of subheading 8486.40 

from subheading 8477.90 or 8486.90, whether or not there is also a change from any other good of subheading 

8486.40 or any other heading, except from vacuum molding machines and other thermoforming machines of 

subheading 8486.40 or subheadings 8477.10 through 8477.80, provided there is a regional value content of not less 

than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(F) A change to machine-tools (including machines for nailing, stapling, glueing or otherwise assembling) for working 

wood or cork of subheading 8486.40 from any other good of subheading 8486.40 or any other heading, except from 

heading 8465 or subheading 8466.92;

(G) A change to machine-tools (including machines for nailing, stapling, glueing or otherwise assembling) for working 

wood or cork of subheading 8486.40 from subheading 8466.92 or 8486.90, whether or not there is also a change 

from any other good of subheading 8486.40 or any other heading, except from heading 8465, provided there is a 

regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

F-11
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

252.—Continued

(H) A change to mechanical machinery for lifting, handling, loading or unloading or continuous-action elevators and 

conveyors, for goods or materials of subheading 8486.40 from any other good of subheading 8486.40 or any other 

heading, except from headings 8428 through 8431;

(I) A change to mechanical machinery for lifting, handling, loading or unloading or continuous-action elevators and 

conveyors, for goods or materials of subheading 8486.40 from heading 8431 or subheading 8486.90, whether or not 

there is also a change from any other good of subheading 8486.40 or any other heading, except from headings 8428 

through 8430, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(J) A change to electric (including electrically heated gas) brazing or soldering machines and apparatus, other than 

soldering irons and guns or other electric machines and apparatus for resistance welding of metal, of subheading 

8486.40 from any other good of subheading 8486.40 or any other heading, except from heading 8515;

(K) A change to electric (including electrically heated gas) brazing or soldering machines and apparatus, other than 

soldering irons and guns or other electric machines and apparatus for resistance welding of metal, of subheading 

8486.40 from subheadings 8486.90 or 8515.90, whether or not there is also a change from any other good of 

subheading 8486.40 or any other heading, except from subheadings 8515.11 through 8515.80, provided there is a 

regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(L) A change to drawing, marking-out or mathematical calculating instruments of subheading 8486.40 from any other 

good of subheading 8486.40 or any other heading, except from heading 9017;

(M) A change to drawing, marking-out or mathematical calculating instruments of subheading 8486.40 from 

subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.40 or any other 

heading, except from heading 9017, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used; (N) A change to other machinery for lifting, handling, loading or 

unloading of subheading 8486.40 from any other good of subheading 8486.40 or any other heading, except from 

headings 8428 through 8431;

(O) A change to other machinery for lifting, handling, loading or unloading of subheading 8486.40 from heading 8431 

or subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.40 or any 

other heading, except from headings 8428 through 8430, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(P) A change to machine-tools for working any material by removal of material, by electro-chemical, electron beam, 

ionic-beam or plasma arc processes of subheading 8486.40 from any other good of subheading 8486.40 or any other 

heading, except from heading 8456 or more than one of the following:

(1) bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, 

ram, frame, work-arbor support and C-frame castings, weldments or fabrications of subheading 8486.90, (2) 

subheadings 8413.50 through 8413.60,

F-12
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

252.—Continued

(3) subheadings 8501.32 or 8501.52,

(4) subheading 8537.10;

(Q) A change to injection molding machines of subheading 8486.40 from any other good of subheading 8486.40 or 

any other subheading, except from base, bed, platen, clamp cylinder, ram and injection castings, weldments or 

fabrications of subheading 8486.90 or more than one of the following:

(1) barrel screws of subheading 8486.90,

(2) subheading 8537.10;

(R) A change to optical microscopes of subheading 8486.40 from any other good of subheading 8486.40 or any other 

heading, except from heading 9011;

(S) A change to optical microscopes of subheading 8486.40 from subheading 8486.90, whether or not there is also a 

change from any other good of subheading 8486.40 or any other heading, except from heading 9011, provided there 

is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(T) A change to microscopes, other than optical microscopes, of subheading 8486.40 from any other good of 

subheading 8486.40 or any other heading, except from heading 9012;

(U) A change to microscopes, other than optical microscopes, of subheading 8486.40 from subheading 8486.90, 

whether or not there is also a change from any other good of heading 8486.40 or any other heading, except from 

heading 9012, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or (2) 50 percent where the net cost method is used;

(V) A change to other electrical machinery and apparatus having individual functions of subheading 8486.40 from any 

other good of subheading 8486.40 or any other heading, except from heading 8543;

(W) A change to other electrical machinery and apparatus having individual functions of subheading 8486.40 from 

subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.40 or any other 

heading, except from heading 8543, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(X) A change to microwave amplifiers of subheading 8486.40 from any other good of subheading 8486.40 or any 

other heading, except from subheading 8504.40, printed circuit assemblies (PCAs) of subheading 8543.90 or any 

other good of heading 8543; 

(Y) A change to microwave amplifiers of subheading 8486.40 from subheading 8486.90, 8504.40 or PCAs of 

subheading 8543.90, whether or not there is also a change from any other good of subheading 8486.40 or any other 

heading, except from any other good of heading 8543, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

F-13
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

252.—Continued

(Z) A change to machines and mechanical appliances having individual functions of subheading 8486.40 from any 

other good of subheading 8486.40 or any other heading, except from heading 8479;

(AA) A change to machines and mechanical appliances having individual functions of subheading 8486.40 from 

subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.40 or any other 

heading, except from heading 8479, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or 

(2) 50 percent where the net cost method is used;

(BB) A change to any other good of subheading 8486.40 from any other good within subheading 8486.40 or any 

other heading, except from heading 8515; or

(CC) A change to any other good of subheading 8486.40 from subheading 8486.90, whether or not there is also a 

change from any other good within subheading 8486.40 or any other heading, except from heading 8515, provided 

there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used.

253.

(A) A change to parts of centrifuges of subheading 8486.90 from any other heading, except from heading 8421;

(B) A change to parts of mechanical appliances (whether or not hand-operated) other than agricultural or horticultural 

appliances for projecting, dispersing or spraying liquids or powders of subheading 8486.90 from any other heading, 

except from heading 8424;

(C) A change to tool holders and self-opening dieheads, work holders or dividing heads and other special 

attachments for machine-tools of subheading 8486.90 from any other good of heading 8486 or any other heading, 

except from heading 8466;

(D) A change to parts of machine-tools of subheading 8486.90 from any other heading, except from heading 8466;

(E) A change to parts of machinery for working rubber or plastics or for the manufacture of products from these 

materials of subheading 8486.90 from any other heading, except from heading 8477;

(F) A change to parts of lifting, handling, loading or unloading machinery of subheading 8486.90 from any other 

heading, except from heading 8431;

(G) No required change in tariff classification to parts of lifting, handling, loading or unloading machinery of 

subheading 8486.90, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(H) A change to parts of machines and mechanical appliances of subheading 8486.90 from any other heading, 

except from heading 8479;

(I) A change to parts of industrial or laboratory electric furnaces and ovens of subheading 8486.90 from any other 

heading, except from heading 8514;

F-14
APPENDIX F Exisiting rule for 8486.10, 8486.20, 8486.30, 8486.40, and 8486.90—Continued

253.—Continued

(J) No required change in tariff classification to parts of industrial or laboratory electric furnaces and ovens of 

subheading 8486.90, provided there is a regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(K) A change to parts of electric (including electrically heated gas) machines and apparatus of subheading 8486.90 

from any other heading, except from heading 8515;

(L) A change to parts of ion implanters for doping semiconductor materials or other electrical machinery and parts of 

apparatus having individual functions of subheading 8486.90 from any other good of subheading 8486.90 or any 

other heading, except from heading 8543;

(M) No required change in tariff classification to parts of ion implanters for doping semiconductor materials or other 

electrical machinery and parts of apparatus having individual functions of subheading 8486.90, provided there is a 

regional value content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(N) A change to parts and accessories of apparatus and equipment for photographic laboratories, negatoscopes or 

projection screens of subheading 8486.90 from any other heading, except from heading 9010;

(O) No required change in tariff classification to parts and accessories of apparatus and equipment for photographic 

laboratories, negatoscopes or projection screens of subheading 8486.90, provided there is a regional value content of 

not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used;

(P) A change to parts of drawing, marking-out or mathematical calculating instruments of subheading 8486.90 from 

any other heading, except from heading 9017;

(Q) A change to parts of optical microscopes of subheading 8486.90 from any other good of subheading 8486.90 or 

any other heading, except from heading 9011;

(R) A change to parts of microscopes, other than optical microscopes, of subheading 8486.90 from any other good of

subheading 8486.90 or any other heading, except from heading 9012;

(S) A change to other parts of subheading 8486.90 from any other heading, except from heading 8419; or

(T) No required change in tariff classification to other parts of subheading 8486.90, provided there is a regional value

content of not less than:

(1) 60 percent where the transaction value method is used, or

(2) 50 percent where the net cost method is used.

F-15