Entry into force of sewing thread, narrow elastic and pocket fabric requirement for apparel goods
This notice replaces the Message to Industry: Entry into force of sewing thread, narrow elastic and pocket fabric requirement for apparel goods of February 18, 2022 to inform Tariff Preference Level (TPL) clients of changes which entered into force effective July 1, 2021 regarding sewing thread requirements and effective January 1, 2022 regarding narrow elastics and pocket lining requirements for apparel goods.
The Canada-United States-Mexico Agreement (CUSMA) provides that, in order to qualify as originating, apparel must, in addition to other requirements, be produced using originating sewing thread, narrow elastics and pocket lining. These requirements are provided for in chapter notes 2, 3, or 4 of Chapter 61 and chapter notes 3,4,5, of Chapter 62 of Annex 4-B (Product-Specific Rules of Origin). The originating sewing thread rule became effective on July 1, 2021, and the narrow elastics and pocket lining rules on January 1, 2022. The recent Free Trade Commission decision published on the Government of Canada website clarifies that goods of Chapter 61 and 62 that are produced in a CUSMA party using non-originating sewing thread, pocket lining or narrow elastic may nonetheless be eligible for duty-free treatment when imported into Canada, the United States or Mexico under the applicable CUSMA TPL, regardless of the origin of the yarn or fabric used.
How to apply for a permit
In order to process applications for import permits and export certificates of eligibility in the New Export Import Controls System under these new rules, customs brokers are to indicate the country of origin of the sewing thread, narrow elastic or pocket lining under Country of Origin – Raw Material - 'Fibre/Thread/Lining/Elastic' (box 30 on the application form). If there are multiple countries of origin, '3C' (3C = third country) may be used. A comment specific to the originating status is not required in the Comment Box.
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