|
|
|
|
|
|
|||||
      
|
Canada Gazette Notice
Customs Tariff - Proposals for NAFTA Rules of Origin Changes
Initiation of Domestic Consultations
The purpose of this Notice is to inform interested parties that the Government is seeking views regarding seven product-specific rules of origin proposals, which would amend certain rules of origin as provided for in the North American Free Trade Agreement (NAFTA). The Government is seeking advice on proposed changes to the rules of origin applicable to alcoholic beverages, petroleum/topped crude, esters of glycerol, pearl jewellery, headphones with microphones, chassis fitted with engines and photocopiers. These proposals would liberalize the current rules applicable to those products, resolve some technical problems and enhance trade.
The proposals, which are set out in the Schedule below, have been developed jointly by the Governments of Canada, Mexico and the United States, in consultation with industry representatives and associations in the three countries.
The purpose of this Notice is to seek further advice from industry and from other interested parties. Upon completion of these domestic consultations, the Governments of Canada, the U.S. and Mexico will review the public comments to determine whether the proposals will be implemented as changes to the rules of origin in the NAFTA. On July 31, 2001, a joint statement issued by Minister Pettigrew, United States Trade Representative Robert B. Zoellick and Mexican Secretary of Economy Luis Ernesto Derbez announced that it is intended that the rules of origin amendments under consideration would enter into force on January 1, 2002. (The proposal relating to photocopiers has been developed since that announcement.)
Background
The NAFTA rules of origin are used to determine when a good is eligible for NAFTA tariff preferences. These rules specify that goods originate in North America if they are wholly produced in one or more of the three NAFTA countries, using inputs wholly produced in one or more of the three countries.
However, goods containing non-regional materials can be considered to be North American if the non-regional materials are sufficiently transformed in the NAFTA region so as to undergo a specified change in tariff classification. In addition, some goods must also include a specified percentage of North American content if made from imported materials.
The three governments, in conjunction with industry representatives and associations, have developed these liberalizing proposals to resolve some technical problems that currently exist and enhance trade in the products affected.
The current NAFTA rules of origin are available on the Department of Foreign Affairs and International Trade Web site: Annex 401: Specific Rules of Origin, Section A – General Interpretative Note (Adobe Acrobat format).
Submissions from Interested Parties
All submissions must be received no later than October 1, 2001.
In developing comments, interested parties should focus on the impact that the proposed rules might have on products of interest to them.
Address for Submissions
Submissions must be received at the following address by October 1, 2001: Wesley Peters, Industrial Trade Policy, Industry Canada, 5th Floor, C.D. Howe Building, 235 Queen Street, Ottawa, Ontario, K1A 0H5.
SCHEDULE
Tentatively Agreed Rules of Origin Proposals
Alcoholic Beverages - Rules of origin for heading 22.03-22.09
Explanation: The proposal amends the current rules to allow certain goods produced by mixing small quantities of non-NAFTA alcoholic beverages with NAFTA originating alcoholic beverages to qualify for NAFTA preferences.
Proposal:
22.03-22.07 |
A change to heading 22.03 through 22.07 from any heading outside that group, except from tariff item 2106.90.ee or heading 22.08 through 22.09. |
|
2208.20 |
A change to subheading 2208.20 from any other heading, except from tariff item 2106.90.ee or heading 22.03 through 22.07 or 22.09. |
|
2208.30-2208.70 |
No required change in tariff classification to subheading 2208.30 through 2208.70, provided that the non-originating alcoholic ingredients constitute no more than 10 percent of the alcoholic content of the good by volume. |
|
2208.90 |
A change to subheading 2208.90 from any other heading, except from tariff item 2106.90.ee or heading 22.03 through 22.07 or 22.09. |
|
22.09 |
A change to heading 22.09 from any other heading, except from tariff item 2106.90.ee or heading 22.03 through 22.08. |
Petroleum/Topped Crude - Rules of origin for heading 27.10 and 27.11-27.15
Explanation: The proposal specifies the NAFTA origin conferring processes for goods of heading 27.10 in the rule, and provides definitions of those processes in a Chapter Note.
Proposal:
|
27.10 |
A change to heading 27.10 from any other heading, except from heading 27.11 through 27.15; or |
|
27.11-27.15 |
A change to heading 27.11 through 27.15 from any heading outside that group. |
Chapter Note for Chapter 27:
|
Note: |
For the purposes of heading 27.10, the following processes confer origin: |
|
(a) Atmospheric distillation - A separation process in which crude petroleum oils are converted, in a distillation tower, into fractions according to boiling point and the vapor then condensed into different liquefied fractions. Liquefied petroleum gas, naphtha, gasoline, kerosene, diesel/heating oil, light gas oils, and lubricating oil are produced from petroleum distillation; |
|
(b) Vacuum distillation - Distillation at a pressure below atmospheric but not so low that it would be classed as molecular distillation. Vacuum distillation is useful for distilling high-boiling and heat-sensitive materials such as heavy distillates in petroleum oils to produce light to heavy vacuum gas oils and residuum. In some refineries gas oils may be further processed into lubricating oils; |
|
(c) Catalytic Hydroprocessing (hydrocracking) - The cracking of petroleum or its products in the presence of hydrogen. Special catalysts are used, e.g., platinum on a solid base of mixed silica and alumina or zinc chloride. Usually those processes called hydrocracking operate on distilled feed, while those operating on residual materials are called hydroprocessing; |
|
(d) Reforming (catalytic reforming) - The rearrangement of molecules in a naphtha boiling range material to form higher octane aromatics (i.e., improved antiknock quality at the expense of gasoline yield). A main product is catalytic reformate, a blend component for gasoline. Hydrogen is another by-product; |
|
(e) Alkylation - A process whereby a high-octane blending component for gasolines is derived from catalytic combination of an isoparaffin and an olefin; |
|
|
(f) Cracking - A refining process involving decomposition and molecular recombination of organic compounds, especially hydrocarbons obtained by means of heat, to form molecules suitable for motor fuels, monomers, petrochemicals, etc.:
|
|
(g) Coking - A thermal cracking process for the conversion of heavy low grade products, such as reduced crude, straight run pitch, cracked tars, and shale oil into solid coke (carbon) and lower boiling hydrocarbon products which are suitable as feed for other refinery units for conversion into lighter products. |
Esters of Glycerol - Rule of origin for subheading 2905.11-2907.30
Explanation: The proposal eliminates the current requirement that esters of glycerol of subheading 2905.49 satisfy a regional value content requirement.
Proposal:
|
2905.11-2907.30 |
A change to subheading 2905.11 through 2907.30 from any other subheading, including another subheading within that group. |
Pearl Jewellery - Rule of origin for heading 71.13-71.18
Explanation: The proposal amends the current rules to allow pearl jewellery produced from third country temporarily strung graded pearls to qualify for NAFTA preferences
Proposal:
| 71.13-71.18 | A change to heading 71.13 through 71.18 from any heading outside that group. |
Headphones with Microphones - Rule of origin for subheading 8518.30
Explanation: The proposal amends the current rules to allow headphones, earphones and combined microphone/speaker sets produced from third country microphones or loud speakers to qualify for NAFTA preferences.
Proposal:
|
8518.30 |
A change to subheading 8518.30 from any other heading; or A change to subheading 8518.30 from subheading 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: (a) 60 percent where the transaction value method is used, or (b) 50 percent where the net cost method is used. |
Chassis Fitted with Engines - Rules of origin for heading 87.06
Explanation: The proposal amends the current rules to allow chassis fitted with engines produced from third country materials from other headings within Chapter 87, other than axles, to qualify for NAFTA preferences.
Proposal:
87.06
8706.00.aa
A change to tariff item 8706.00.aa from any other heading, except from subheading 8708.50 or 8708.60, provided there is a regional value content of not less than 50 percent under the net cost method.
8706.00.bb
A change to tariff item 8706.00.bb from any other heading, except from subheading 8708.50 or 8708.60, provided there is a regional value content of not less than 50 percent under the net cost method.
Parts and Accessories of Photocopiers - Rules of origin for subheading 9009.91-9009.99
Explanation: This proposal incorporates changes to the Harmonized System (HS) Nomenclature that pertain to parts and accessories of photocopiers and are scheduled to be introduced into the customs tariffs of all three NAFTA countries on January 1, 2002. It replaces the current rules for subheading 9009.90 and amends the scope of those rules to allow parts and accessories of photocopiers produced from third country automatic document feeders, paper feeders or sorters to qualify for NAFTA preferences. The relevant 2002 proposed amendments to the HS Nomenclature and amended tariff items have also been set out below for information purposes.
Proposal:
|
9009.91-9009.93 |
A change to subheading 9009.91 through 9009.93 from any subheading outside that group. |
9009.99
9009.99.aa
A change to tariff item 9009.99.aa from subheading 9009.91, 9009.92 or 9009.93, tariff item 9009.99.bb or any other heading, provided that at least one of the components of such assembly named in Note 3 to Chapter 90 is originating.
9009.99
A change to subheading 9009.99 from any other subheading.
[For information purposes -
Relevant 2002 amendments to HS Nomenclature:
|
- Parts and accessories |
|
|
9009.91 |
-- Automatic document feeders |
|
9009.92 |
-- Paper feeders |
|
9009.93 |
-- Sorters |
|
9009.99 |
-- Other |
relevant 2002 NAFTA tariff items:
|
9009.99.aa |
Parts of photocopying apparatus of subheading 9009.12 specified in Note 3 to Chapter 90 |
|
9009.99.bb |
Other] |
|
|
||||
| Last Updated: 2006-03-13 |
|
||||
