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Amendments to Annex 401
Specific Rules of Origin
NAFTA PARTNERS CONTINUE TO LIBERALIZE RULES OF ORIGIN
On July 1, 2006, Canada and the U.S. implemented measures to liberalize some
Rules of Origin. On July 5, 2006, Mexico
implemented these same measures. These rules are used to determine whether a
good is eligible for preferential treatment under the NAFTA.
The amendments liberalize the rules of origin applicable to cocoa preparations,
cranberry juice, ores, slag and ash, leather, cork, certain textile products1,
feathers, glass and glassware, copper and other metals, televisions and automatic
regulating or controlling instruments.
This action is the result of continuing work being carried out by the NAFTA
Working Group on Rules of Origin to liberalize the rules for the purpose of
further stimulating trade. The amendments have been developed by the Governments
of Canada, Mexico and the United States in consultation with industry representatives
in the three countries.
The complete NAFTA Annex 401 on Rules of Origin is available at the following address:
http://www.dfait-maeci.gc.ca/nafta-alena/ann-401-en.asp
Cocoa and Cocoa Preparations – 1806.31-1806.90
Explanation: Under the new rule, unfilled chocolate bars will be subject
to the same requirement applicable to filled chocolate bars and will be considered
as originating if made in the NAFTA territory from non-originating cocoa powder
or bulk forms of chocolate.
New rules of origin:
1806.31-1806.90 |
A change to subheading 1806.31 through 1806.90 from any other
subheading, including another subheading within that group. |
Cranberry Juice - 2009.90
Explanation: This change simplifies the administration of the rules
applicable to mixtures of cranberry juice by including a regional value content
requirement.
New rule of origin:
2009.90 |
A change to subheading 2009.90 from any other chapter;
A change to cranberry juice mixtures of subheading 2009.90 from any other
subheading within Chapter 20, except from subheading 2009.11 through 2009.39
or cranberry juice of subheading 2009.80, whether or not there is also
a change from any other chapter, provided there is a regional value content
of not less than:
- 60 percent where the transaction value method is used, or
- 50 percent where the net cost method is used; or
A change to any other good of subheading 2009.90 from any other subheading
within Chapter 20, whether or not there is also a change from any other
chapter, provided that a single juice ingredient, or juice ingredients
from a single non-Party, constitute in single strength form no more than
60 percent by volume of the good.
|
Ores, Slag and Ash – 26.01-26.21
Explanation: This change is a technical rectification and has no impact.
26.01-26.21 |
A change to heading 26.01 through 26.21 from
any other heading, including another heading within that group. |
Leather – 41.04, 4105.10, 4105.30, 4106.21, 4106.22, 4106.31, 4106.32,
4106.40, 4106.91, 4106.92, 41.07, 41.12, 41.13, 41.14, 4115.10-4115.20
Explanation: These changes simplify the rules applicable to leather
by removing unnecessary exceptions and allow the processing of reptile leather
from a wet to a dry state to confer origin.
41.04 |
A change to heading 41.04 from any other heading, except
from heading 41.07. |
4105.10 |
A change to subheading 4105.10 from heading 41.02 or any
other chapter. |
4105.30 |
A change to subheading 4105.30 from heading 41.02, subheading
4105.10 or any other chapter. |
4106.21 |
A change to subheading 4106.21 from subheading 4103.10 or
any other chapter. |
4106.22 |
A change to subheading 4106.22 from subheading 4103.10 or
4106.21 or any other chapter |
4106.31 |
A change to subheading 4106.31 from subheading 4103.30 or
any other chapter. |
4106.32 |
A change to subheading 4106.32 from subheading 4103.30 or
4106.31 or any other chapter |
4106.40 |
A change to tanned hides and skins in the wet state (including
wet-blue) of subheading 4106.40 from subheading 4103.20 or any other chapter;
or
A change to crust hides and skins of subheading 4106.40 from subheading
4103.20 or tanned hides and skins in the wet state (including wet-blue)
of subheading 4106.40 or any other chapter. |
4106.91 |
A change to subheading 4106.91 from subheading 4103.90 or
any other chapter. |
4106.92 |
A change to subheading 4106.92 from subheading
4103.90 or 4106.91 or any other chapter. |
41.07 |
A change to heading 41.07 from heading 41.01 or any other
chapter. |
41.12 |
A change to heading 41.12 from heading 41.02, subheading
4105.10 or any other chapter. |
41.13 |
A change to heading 41.13 from heading 41.03, subheading
4106.21 or 4106.31, tanned hides and skins in the wet state (including wet-blue)
of subheading 4106.40, subheading 4106.91 or any other chapter. |
41.14 |
A change to heading 41.14 from heading 41.01 through 41.03
or any other chapter, except from hides or skins of heading 41.01 through
41.03 which have undergone a tanning (including pre-tanning) process which
is reversible. |
4115.10-4115.20 |
A change to subheading 4115.10 through 4115.20 from heading
41.01 through 41.03 or any other chapter. |
Cork and Articles of Cork – 45.01-45.04
Explanation: The new rule allows for the preparation of industrial
cork products in the NAFTA territory from non-originating raw, natural cork
to confer origin.
New rule of origin:
45.01-45.04 |
A change to heading 45.01 through 45.04 from
any other heading, including another heading within that group. |
Filament Yarns of Viscose Rayon, Tri-lobal Rayon Staple
Fiber; Untextured Yarns of Nylon – 54.08, 56.01, 56.02-56.05, 56.06, 56.07-56.09
Explanation: These new rules allow the use of non-originating viscose
rayon, tri-lobal rayon staple fibre or untextured yarns of nylon in the production
of certain originating textile products.
New rule of origin:
54.08 |
A change to heading 54.08 from filament yarns of viscose
rayon of heading 54.03 or any other chapter, except from heading 51.06 through
51.10, 52.05 through 52.06 or 55.09 through 55.10. |
56.01 |
A change to sanitary towels or tampons of subheading
5601.10 from tri-lobal rayon staple fiber (38 mm, 3.3 decitex) of subheading
5504.10 or any other chapter, except from heading 51.06 through 51.13,
52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11 or Chapter
54 through 55; or
A change to any other good of heading 56.01 from any other chapter, except
from heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08
or 53.10 through 53.11 or Chapter 54 through 55. |
56.02-56.05 |
A change to heading 56.02 through 56.05 from any other chapter,
except from heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through
53.08 or 53.10 through 53.11 or Chapter 54 through 55. |
56.06 |
A change to heading 56.06 from flat yarns11 of subheading
5402.41 or any other chapter, except from heading 51.06 through 51.13, 52.04
through 52.12, 53.07 through 53.08 or 53.10 through 53.11, or Chapter 54
through 55. |
56.07-56.09 |
A change to heading 56.07 through 56.09 from any other chapter,
except from heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through
53.08 or 53.10 through 53.11 or Chapter 54 through 55. |
Prepared Feathers and Down and Articles Made of Feathers or of Down; Artificial
Flowers; Articles of Human Hair – 67.01, 67.02-67.04
Explanation: This change is a technical rectification and has no impact.
New rule of origin:
67.01 |
A change to heading 67.01 from any other heading;
or A change to a good of feather or down of heading 67.01 from within
that heading or any other heading.
|
67.02 - 67.04 |
A change to heading 67.02 through 67.04 from any other heading,
including another heading within that group. |
Glass and Glassware – 70.01, 7002.10, 7002.20, 7002.31, 7002.32-7002.39
Explanation: Under these new rules, glass balls and tubes made in the
NAFTA territory from non-originating scrap glass will meet the rules of origin.
New rule of origin:
70.01 |
A change to heading 70.01 from any other heading. |
7002.10 |
A change to subheading 7002.10 from any other heading. |
7002.20 |
A change to subheading 7002.20 from any other chapter. |
7002.31 |
A change to subheading 7002.31 from any other heading. |
7002.32 - 7002.39 |
A change to subheading 7002.32 through 7002.39 from any other
chapter. |
Copper – 74.01-74.03
Explanation: Under this rule, the refining of copper will confer origin.
New rule of origin:
74.01-74.03 |
A change to heading 74.01 through 74.03 from any other heading,
including another heading within that group, except from heading 74.04;
or
A change to heading 74.01 through 74.03 from heading 74.04, 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:
- 60 percent where the transaction value method is used, or
- 50 percent where the net cost method is used.
|
Base Metals and Articles of Base Metals (Nickel, Lead, Zinc, Tin, Other) –
78.03, 7804.11-7804.20, 78.05-78.06, 79.01-79.02, 7903.10, 7903.90, 79.04, 79.05,
79.06-79.07, 80.03, 80.04-80.07, 8101.10-8110.90, 81.11, 8112.12-8113.00
Explanation: Under these rules, the reduction by at least 50% of bars
into wire will confer origin. As well, in some cases, the regional value content
requirement has been eliminated.
New rule of origin:
Lead:
78.03 |
A change to heading 78.03 from any other heading; or A
change to wire of heading 78.03 from within that heading, whether or not
there is also a change from any other heading, provided that, if bar or
rod is used, the cross-sectional area of the bar or rod is reduced by
at least 50 percent. |
7804.11-7804.20 |
A change to subheading 7804.11 through 7804.20 from any other
subheading, including another subheading within that group; or A change
to foil of a thickness not exceeding 0.15 mm (excluding backing) of subheading
7804.11 from within that subheading, whether or not there is also a change
from any other subheading. |
78.05-78.06 |
A change to heading 78.05 through 78.06 from any other
heading, including another heading within that group. |
Zinc and Articles Thereof:
79.01-79.02 |
A change to heading 79.01 through 79.02 from any other chapter. |
7903.10 |
A change to subheading 7903.10 from any other chapter. |
7903.90 |
A change to subheading 7903.90 from any other heading. |
79.04 |
A change to heading 79.04 from any other heading; or
A change to wire of heading 79.04 from within that heading, whether or
not there is also a change from any other heading, provided that, if bar
or rod is used, the cross-sectional area of the bar or rod is reduced
by at least 50 percent. |
79.05 |
A change to heading 79.05 from any other heading; or
A change to foil of a thickness not exceeding 0.15 mm (excluding backing)
of heading 79.05 from within that heading, whether or not there is also
a change from any other heading. |
79.06-79.07 |
A change to heading 79.06 through 79.07 from any other heading,
including another heading within that group. |
Tin
80.03 |
A change to heading 80.03 from any other
heading; or
A change to wire of heading 80.03 from within that heading, whether or
not there is also a change from any other heading, provided that, if bar
or rod is used, the cross-sectional area of the bar or rod is reduced
by at least 50 percent. |
80.04-80.07 |
A change to heading 80.04 through 80.07 from
any other heading, including another heading within that group. |
Other Base Metals
8101.10-8110.90 |
A change to subheading 8101.10
through 8110.90 from any other subheading, including another subheading
within that group. |
81.11 |
A change to manganese powders or articles
of manganese of heading 81.11 from any other good of heading 81.11; or
A change to any other good of heading 81.11 from any other heading.
|
8112.12-8113.00 |
A change to subheading 8112.12 through 8113.00
from any other subheading, including another subheading within that group. |
Televisions – 8528.12, 8528.13, 8508.21, 8528.22, 8528.30
Explanation: Under these rules, restrictions on the use of non-originating
printed circuit assemblies are removed with respect to colour television receivers,
monitors and projectors with flat panel screens or black and white projectors
or monitors.
New rule of origin:
8528.12 |
A change to subheading 8528.12 from tariff
item 8528.12.gg or any other heading. |
8528.13 |
A change to subheading 8528.13 from any other
heading. |
8528.21 |
A change to subheading 8528.21 from tariff item
8528.21.gg or any other heading. |
8528.22 |
A change to subheading 8528.22 from any other
heading. |
8528.30 |
A change to subheading 8528.30 from tariff item
8528.30.gg or any other heading. |
Automatic Regulating or Controlling Instruments – 9032.20-9032.89
Explanation: Under this new rule, the regional value content requirement
has been lowered for automatic regulating or controlling instruments.
New rule of origin:
9032.20-9032.8966 |
A change to subheading 9032.20 through 9032.89
from any other heading; or A change to subheading 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 requirement
of not less than:
- 45 percent where the transaction value method is used, or
- 35 percent where the net cost method is used.
|
1. Amendments to the textiles and apparel rules of origin between Canada and
the U.S. were implemented on July 1, 2005. Mexico has agreed to these changes
and they will be effective trilaterally, along with the others, as of July 5,
2006.
11 “Flat yarns” means, for purposes of this rule, 7 denier/5 filament,
10 denier/7 filament or 12 denier/5 filament, all of nylon 66, untextured (flat)
semi-dull yarns, multifilament, untwisted or with a twist not exceeding 50 turns
per meter, of subheading 5402.41.
66 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.
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