North American Free Trade Agreement (NAFTA)
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 productsFootnote 1 , 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.
Complete NAFTA Annex 401 on Rules of Origin
Cocoa and Cocoa Preparations 1806.31-1806.90Explanation: 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.
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 yarnsFootnote 11 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:
9032.20-9032.89 Footnote 66
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.
- Date modified: