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Vol. 143, No. 14 — July 8, 2009
Registration
SOR/2009-189 June 18, 2009
CUSTOMS TARIFF
Regulations Amending the NAFTA Rules of Origin Regulations (Track III)
P.C. 2009-995 June 18, 2009
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 16(4) (see footnote a) of the Customs Tariff (see footnote b), hereby makes the annexed Regulations Amending the NAFTA Rules of Origin Regulations (Track III).
REGULATIONS AMENDING THE NAFTA RULES OF ORIGIN REGULATIONS (TRACK III)
AMENDMENTS
1. Headings 07.01 through 07.14 and the rule applicable to them in Chapter 7 of Section II of Schedule I to the NAFTA Rules of Origin Regulations (see footnote 1) are replaced by the following:
| heading number | description |
|---|---|
|
07.01-07.11 |
A change to headings 07.01 through 07.11 from any other chapter. |
|
0712.20-0712.39 |
A change to subheadings 0712.20 through 0712.39 from any other chapter. |
|
0712.90 |
(1) A change to savory, crushed or ground, of subheading 0712.90 from savory, neither crushed nor ground, of subheading 0712.90 or any other chapter; or (2) A change to any other good of subheading 0712.90 from any other chapter. |
|
07.13-07.14 |
A change to headings 07.13 through 07.14 from any other chapter. |
2. The rule applicable to subheading 0904.20 in Chapter 9 of Section II of Schedule I to the Regulations is replaced by the following:
| heading number | description |
|---|---|
|
(1) A change to allspice, crushed or ground, of subheading 0904.20 from allspice, neither crushed nor ground, of subheading 0904.20 or any other chapter; or (2) A change to any other good of subheading 0904.20 from any other chapter. |
3. Subheading 0910.99 in Chapter 9 of Section II of Schedule I to the Regulations is amended by adding the following before the first rule and by renumbering rules (1), (2) and (3) as rules (2), (3) and (4), respectively:
| heading number | description |
|---|---|
|
(1) A change to bay leaves, crushed or ground, of subheading 0910.99 from bay leaves, neither crushed nor ground, of subheading 0910.99 or any other chapter; |
4. Headings 12.08 through 12.14, the Note and the rule applicable to them in Chapter 12 of Section II of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
12.08 |
A change to heading 12.08 from any other chapter. |
|
1209.10-1209.30 |
Note: Notwithstanding paragraph 5(4)(l) of these Regulations, subsection 5(1) applies to non-originating timothy grass seed when used in the production of mixtures of subheading 1209.29. A change to subheadings 1209.10 through 1209.30 from any other chapter. |
|
1209.91 |
(1) A change to celery seeds, crushed or ground, of subheading 1209.91 from celery seeds, neither crushed nor ground, of subheading 1209.91 or any other chapter; or (2) A change to any other good of subheading 1209.91 from any other chapter. |
|
1209.99 |
A change to subheading 1209.99 from any other chapter. |
|
12.10-12.14 |
A change to headings 12.10 through 12.14 from any other chapter. |
5. Chapter 27 of Section V of Schedule I to the Regulations is amended by numbering the Note as Note 2 and by adding the following before it:
Note 1: For purposes of heading 27.07, 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 processes are not considered to be chemical reactions for the 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.
6. Chapter 27 of Section V of Schedule I to the Regulations is amended by adding the following before the rule applicable to headings 27.01 through 27.03:
Note 3: For purposes of heading 27.10, “direct blending” is defined as a refinery process whereby various petroleum streams from processing units and petroleum components from holding or storage tanks combine to create a finished product, with pre-determined parameters, of heading 27.10, provided that the non-originating material constitutes no more than 25 per cent by volume of the good.
7. Headings 27.05 through 27.09, 27.10, 27.11 through 27.15 and the rules applicable to them in Chapter 27 of Section V of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
27.05-27.06 |
A change to headings 27.05 through 27.06 from any other heading, including another heading within that group. |
|
2707.10-2707.91 |
(1) A change to subheadings 2707.10 through 2707.91 from any other heading; or (2) A change to subheadings 2707.10 through 2707.91 from any other subheading within heading 27.07, whether or not there is also a change from any other heading, provided that the good resulting from such change is the product of a chemical reaction. |
|
2707.99 |
(1) A change to subheading 2707.99 from any other heading; (2) A change to phenols of subheading 2707.99 from within that subheading or any other subheading within heading 27.07, whether or not there is also a change from any other heading, provided that the good resulting from such a change is the product of a chemical reaction; or (3) A change to any other good of subheading 2707.99 from phenols of that subheading or any other subheading within heading 27.07, whether or not there is also a change from any other heading, provided that the good resulting from such a change is the product of a chemical reaction. |
|
27.08-27.09 |
A change to headings 27.08 through 27.09 from any other heading, including another heading within that group. |
|
27.10 |
(1) A change to heading 27.10 from any other heading, except from headings 27.11 through 27.15; (2) Production of any good of heading 27.10 as the result of atmospheric distillation, vacuum distillation, catalytic hydroprocessing, catalytic reforming, alkylation, catalytic cracking, thermal cracking, coking or isomerization; or (3) Production of any good of heading 27.10 as the result of direct blending, provided that (1) the non-originating material is classified in Chapter 27, (2) no component of that non-originating material is classified under heading 22.07, and (3) the non-originating material constitutes no more than 25 per cent by volume of the good. |
|
2711.11 |
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 per cent by volume of the good. |
|
2711.12-2711.14 |
A change to a good of subheadings 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 constitutes no more than 49 per cent by volume of the good. |
|
2711.19 |
A change to subheading 2711.19 from any other subheading, except from subheading 2711.29. |
|
2711.21 |
A change to subheading 2711.21 from any other subheading, except from subheading 2711.11. |
|
2711.29 |
A change to subheading 2711.29 from any other subheading, except from subheadings 2711.12 through 2711.21. |
|
27.12 |
A change to heading 27.12 from any other heading. |
|
2713.11-2713.12 |
A change to subheadings 2713.11 through 2713.12 from any other heading. |
|
2713.20 |
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 per cent by volume of the good. |
|
2713.90 |
A change to subheading 2713.90 from any other heading, except from headings 27.10 through 27.12, subheadings 2713.11 through 2713.20 or headings 27.14 through 27.15. |
|
27.14 |
A change to heading 27.14 from any other heading. |
|
27.15 |
A change to heading 27.15 from any other heading, except from subheading 2713.20 or heading 27.14. |
8. The rule applicable to heading 41.14 in Chapter 41 of Section VIII of Schedule I to the Regulations is replaced by the following:
| heading number | description |
|---|---|
|
A change to heading 41.14 from headings 41.01 through 41.03, subheading 4105.10, 4106.21, 4106.31 or 4106.91 or any other chapter. |
9. Headings 56.01, 56.02 through 56.05 and the rules applicable to them in Chapter 56 of Section XI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
5601.10 |
A change to subheading 5601.10 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, headings 55.01 through 55.03, subheading 5504.90 or headings 55.05 through 55.16. |
|
5601.21-5601.30 |
A change to subheadings 5601.21 through 5601.30 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11 or Chapters 54 through 55. |
|
56.02 |
A change to heading 56.02 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11 or Chapters 54 through 55. |
|
5603.11-5603.14 |
A change to subheadings 5603.11 through 5603.14 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11 or Chapters 54 through 55. |
|
5603.91-5603.94 |
(1) A change to non-woven wipes of subheadings 5603.91 through 5603.94 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, headings 55.01 through 55.03, subheading 5504.90 or headings 55.05 through 55.16; or (2) A change to any other good of subheadings 5603.91 through 5603.94 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11 or Chapters 54 through 55. |
|
56.04-56.05 |
A change to headings 56.04 through 56.05 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11 or Chapters 54 through 55. |
10. Headings 62.06 through 62.10 and the rules applicable to them in Chapter 62 of Section XI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
62.06 |
A change to heading 62.06 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54 or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA countries. |
|
6207.11 Note: |
Men’s or boys’ boxer shorts of cotton shall be considered to originate if they are both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA countries and if the plain weave fabric of the outer shell, exclusive of waistbands, is wholly of one or more of the following: (a) Fabrics of subheading 5208.41, yarn-dyed, with a fibre content of 100 per cent cotton, 95 to 100 grams per square metre, of average yarn number 37 to 42 metric; (b) Fabrics of subheading 5208.42, yarn-dyed, with a fibre content of 100 per cent cotton, weighing not more than 105 grams per square metre, of average yarn number 47 to 53 metric; (c) Fabrics of subheading 5208.51, printed, with a fibre content of 100 per cent cotton, 93 to 97 grams per square metre, of average yarn number 38 to 42 metric; (d) Fabrics of subheading 5208.52, printed, with a fibre content of 100 per cent cotton, 112 to 118 grams per square metre, of average yarn number 38 to 42 metric; (e) Fabrics of subheading 5210.11, greige, with a fibre content of 51 to 60 per cent cotton, 49 to 40 per cent polyester, 100 to 112 grams per square metre, of average yarn number 55 to 65 metric; (f) Fabrics of subheading 5210.41, yarn-dyed, with a fibre content of 51 to 60 per cent cotton, 49 to 40 per cent polyester, 77 to 82 grams per square metre, of average yarn number 43 to 48 metric; (g) Fabrics of subheading 5210.41, yarn-dyed, with a fibre content of 51 to 60 per cent cotton, 49 to 40 per cent polyester, 85 to 90 grams per square metre, of average yarn number 69 to 75 metric; (h) Fabrics of subheading 5210.51, printed, with a fibre content of 51 to 60 per cent cotton, 49 to 40 per cent polyester, 107 to 113 grams per square metre, of average yarn number 33 to 37 metric; (i) Fabrics of subheading 5210.51, printed, with a fibre content of 51 to 60 per cent cotton, 49 to 40 per cent polyester, 92 to 98 grams per square metre, of average yarn number 43 to 48 metric; or (j) Fabrics of subheading 5210.51, printed, with a fibre content of 51 to 60 per cent cotton, 49 to 40 per cent polyester, 105 to 112 grams per square metre, of average yarn number 50 to 60 metric. A change to subheading 6207.11 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54 or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA countries. |
|
6207.19-6207.99 |
A change to subheadings 6207.19 through 6207.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54 or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA countries. |
|
62.08-62.10 |
A change to headings 62.08 through 62.10 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54 or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA countries. |
11. Headings 76.01 through 76.03 and 76.04 through 76.06 and the rules applicable to them in Chapter 76 of Section XV of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
76.01 |
A change to heading 76.01 from any other chapter. |
|
76.02 |
A change to heading 76.02 from any other heading. |
|
76.03 |
A change to heading 76.03 from any other chapter. |
|
76.04 |
A change to heading 76.04 from any other heading. |
|
76.05 |
A change to heading 76.05 from any other heading, except from heading 76.04 or 76.06. |
|
76.06 |
A change to heading 76.06 from any other heading. |
12. Subheadings 8504.10 through 8504.34 and the rules applicable to them in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
8504.10 |
A change to subheading 8504.10 from any other subheading. |
|
8504.21-8504.34 |
(1) A change to subheadings 8504.21 through 8504.34 from any other heading; or (2) A change to subheadings 8504.21 through 8504.34 from subheading 8504.90, 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 per cent where the transaction value method is used, or (b) 50 per cent where the net cost method is used. |
13. Subheadings 8506.10 through 8506.80, 8506.90 and the rules applicable to them in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
8506.10-8506.40 |
A change to subheadings 8506.10 through 8506.40 from any other subheading, including another subheading within that group. |
|
8506.50-8506.80 |
A change to subheadings 8506.50 through 8506.80 from any subheading outside that group. |
|
8506.90 |
A change to a good of subheading 8506.90 from within that subheading or any other subheading. |
14. Subheadings 8517.11, 8517.12, 8517.18, 8517.61, 8517.62, 8517.69, 8517.70 and the rules applicable to them in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
8517.11 |
A change to subheading 8517.11 from any other subheading. |
|
8517.12 |
A change to subheading 8517.12 from any other subheading, except from subheadings 8517.61 through 8517.62. |
|
8517.18 |
A change to subheading 8517.18 from any other subheading, except from subheading 8517.69. |
|
8517.61 |
A change to subheading 8517.61 from any other subheading, except from subheading 8517.12 or 8517.62. |
|
8517.62 |
(1) 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; (2) 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; or (3) A change to any other good of subheading 8517.62 from any other good of subheading 8517.62 or any other subheading. |
|
8517.69 |
A change to subheading 8517.69 from any other subheading, except from subheading 8517.18 or 8517.62. |
|
8517.70 |
(1) A change to subheading 8517.70 from any other subheading; or (2) No required change in tariff classification to subheading 8517.70, provided there is a regional value content of not less than: (a) 60 per cent where the transaction value method is used, or (b) 50 per cent where the net cost method is used. |
15. Rules (2) and (3) applicable to subheading 8525.80 in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
(2) A change to other television cameras of subheading 8525.80 from any other good of subheading 8525.80 or any other subheading, except from gyrostabilized television cameras of subheading 8525.80; or (3) A change to any other good of subheading 8525.80 from television cameras of subheading 8525.80 or any other subheading. |
16. Subheadings 8526.10, 8526.91 through 8526.92 and the rules applicable to them in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
8526.10-8526.92 |
A change to subheadings 8526.10 through 8526.92 from any other subheading, including another subheading within that group. |
17. Rules (5) to (8) applicable to subheading 8528.49 in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
(5) A change to high definition non-projection type colour monitors, with cathode-ray tube, of subheading 8528.49 from incomplete or unfinished colour monitors (including assemblies for monitors consisting of the parts specified in paragraphs (a), (b), (c), and (e) in Note 3 to Chapter 85 plus a power supply), not incorporating a cathode-ray tube, of subheading 8528.49 or any other heading, except from tariff item No. 8540.11.11, 8540.11.12 or 8540.91.10; |
|
|
(6) A change to high definition projection type colour monitors, with cathode-ray tube, of subheading 8528.49 from incomplete or unfinished colour monitors (including assemblies for monitors consisting of the parts specified in paragraphs (a), (b), (c), and (e) in Note 3 to Chapter 85 plus a power supply), not incorporating a cathode-ray tube, of subheading 8528.49 or any other heading, except from tariff item No. 8540.12.11, 8540.12.19 or 8540.91.10; |
18. Rules (9), (10) and (11) applicable to subheading 8528.49 in Chapter 85 of Section XVI of Schedule I to the Regulations are renumbered as rules (7), (8) and (9) respectively.
19. Rules (3) and (4) applicable to subheading 8528.69 in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
(3) A change to high definition projectors, with cathode-ray tube, of subheading 8528.69 from incomplete or unfinished projectors (including assemblies for projectors consisting of the parts specified in paragraphs (a), (b), (c), and (e) in Note 3 to Chapter 85 plus a power supply), not incorporating a cathode-ray tube, of subheading 8528.69 or any other heading, except from tariff item 8540.12.11, 8540.12.19 or 8540.91.10; |
20. Rules (5) and (6) applicable to subheading 8528.69 in Chapter 85 of Section XVI of Schedule I to the Regulations are renumbered as rules (4) and (5) respectively.
21. Rules (5) to (8) applicable to subheading 8528.72 in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
(5) A change to high definition non-projection type reception apparatus for television, with cathode-ray tube, of subheading 8528.72 from incomplete or unfinished reception apparatus for television (including assemblies for reception apparatus consisting of all the parts specified in Note 3 to Chapter 85 plus a power supply), not incorporating a cathode-ray tube, of subheading 8528.72 or any other heading, except from tariff item No. 8540.11.11, 8540.11.12 or 8540.91.10; |
|
|
(6) A change to high definition projection type reception apparatus for television, with cathode-ray tube, of subheading 8528.72 from incomplete or unfinished reception apparatus for television (including assemblies for reception apparatus consisting of all the parts specified in Note 3 to Chapter 85 plus a power supply), not incorporating a cathode-ray tube, of subheading 8528.72 or any other heading, except from tariff item No. 8540.12.10, 8540.12.19 or 8540.91.10; |
22. Rules (9) and (10) applicable to subheading 8528.72 in Chapter 85 of Section XVI of Schedule I to the Regulations are renumbered as rules (7) and (8) respectively.
23. Subheadings 8531.10, 8531.20, 8531.80 and the rules applicable to them in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
8531.10-8531.20 |
A change to subheadings 8531.10 through 8531.20 from any other subheading, including another subheading within that group. |
|
8531.80 |
A change to subheading 8531.80 from any other subheading. |
24. Subheadings 8540.40 through 8540.60, 8540.71 through 8540.79 and 8540.81 through 8540.89 and the rules applicable to them in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
8540.40-8540.60 |
A change to subheadings 8540.40 through 8540.60 from any subheading outside that group. |
|
8540.71-8540.89 |
A change to subheadings 8540.71 through 8540.89 from any other subheading, including another subheading within that group. |
25. Subheadings 8543.10 through 8543.30, 8543.70 and the rules applicable to them in Chapter 85 of Section XVI of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
8543.10 |
A change to subheading 8543.10 from any other subheading, except from subheading 8486.20. |
|
8543.20-8543.30 |
A change to subheadings 8543.20 through 8543.30 from any other subheading, including another subheading within that group. |
|
8543.70 |
A change to subheading 8543.70 from any other subheading, except from “smart cards”, other than those containing a single integrated circuit, of subheading 8523.59. |
26. Headings 86.01 through 86.06, subheadings 8607.11 through 8607.12 and the rules applicable to them in Chapter 86 of Section XVII of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
86.01-86.02 |
A change to headings 86.01 through 86.02 from any other heading. |
|
86.03-86.06 |
(1) A change to headings 86.03 through 86.06 from any other heading, including another heading within that group, except from heading 86.07; or (2) A change to headings 86.03 through 86.06 from heading 86.07, 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) 60 per cent where the transaction value method is used, or (b) 50 per cent where the net cost method is used. |
|
8607.11-8607.12 |
A change to subheadings 8607.11 through 8607.12 from any subheading outside that group. |
27. The rule applicable to subheadings 8607.21 through 8607.99 in Chapter 86 of Section XVII of Schedule I to the Regulations is replaced by the following:
| heading number | description |
|---|---|
|
(1) A change to subheadings 8607.21 through 8607.99 from any other heading; or (2) No required change in tariff classification to any of subheadings 8607.21 through 8607.99, provided there is a regional value content of not less than: (a) 60 per cent where the transaction value method is used, or (b) 50 per cent where the net cost method is used. |
28. Paragraphs (a) and (b) of Rule (2) applicable to subheadings 9025.11 through 9025.80 in Chapter 90 of Section XVIII of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
(a) 45 per cent where the transaction value method is used, or (b) 35 per cent where the net cost method is used. |
29. Tariff item No. 9027.80.20, subheading 9027.80 and the rules applicable to them in Chapter 90 of Section XVIII of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
9027.80 |
(1) A change to exposure meters of subheading 9027.80 from any other good of subheading 9027.80 or any other heading; (2) 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: (a) 60 per cent where the transaction value method is used, or (b) 50 per cent where the net cost method is used; or (3) A change to any other good of subheading 9027.80 from exposure meters of subheading 9027.80 or any other subheading. |
30. Paragraphs (a) and (b) of Rule (2) applicable to subheading 9032.10 in Chapter 90 of Section XVIII of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
(a) 45 per cent where the transaction value method is used, or |
|
|
(b) 35 per cent where the net cost method is used. |
31. Headings 91.01 through 91.07 and the rules applicable to them in Chapter 91 of Section XVIII of Schedule I to the Regulations are replaced by the following:
| heading number | description |
|---|---|
|
91.01-91.06 |
(1) A change to headings 91.01 through 91.06 from any other chapter; or (2) A change to headings 91.01 through 91.06 from heading 91.14, 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 per cent where the transaction value method is used, or (b) 50 per cent where the net cost method is used. |
|
91.07 |
(1) A change to heading 91.07 from any other chapter; or (2) A change to heading 91.07 from heading 91.14, 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 per cent where the transaction value method is used, or (b) 35 per cent where the net cost method is used. |
COMING INTO FORCE
32. These Regulations come into force on September 1, 2009, but if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT
ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Executive summary
Issue: These Regulations amend the NAFTA Rules of Origin Regulations which are used to determine when goods are eligible for NAFTA tariff preferences.
Description: The Regulations liberalize the rules of origin applicable to herbs and spices, petroleum, leather, certain textiles and apparel, aluminium, diesel engines, gas turbines and parts, valves, electric transformers, primary cells and batteries, telephonics, televisions, locomotives and parts, medical appliances and parts and other instruments.
Cost-benefit statement: The amendments will result in duty savings to Canadian industry of over $1 million and involve additional savings to Canadian industry by increasing access to duty-free treatment under the NAFTA for their exports to the U.S. and Mexican markets.
Business and consumer impacts: The amendments liberalize the rules of origin in areas of export interest for a number of Canadian industry stakeholders and will enhance access to NAFTA markets.
Domestic and international coordination and cooperation: The amendments meet or comply with international trade agreements or obligations and foreign relations. They were announced as part of NAFTA Free Trade Commission priorities and ongoing NAFTA work program in a Ministerial statement of August 2007. They will constitute the third set of rules of origin amendments under the continuous process of NAFTA rules of origin liberalization.
Issue
These Regulations amend the NAFTA Rules of Origin Regulations which are used to determine when goods are eligible for NAFTA tariff preferences.
Objectives
The rules of origin amendments have been developed by the Governments of Canada, Mexico and the United States in response to specific industry requests and to correspond to developments made in free trade agreements negotiated subsequent to the NAFTA. These amendments liberalize the rules of origin in areas of export interest for a certain number of Canadian industry stakeholders and will enhance access to NAFTA markets.
Description
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 Regulations liberalize the rules of origin applicable to herbs and spices, petroleum, leather, certain textiles and apparel, aluminium, diesel engines, gas turbines and parts, valves, electric transformers, primary cells and batteries, telephonics, televisions, locomotives and parts, medical appliances and parts and other instruments.
Regulatory and non-regulatory options considered
There are no practical alternative means to implement these changes other than through regulations under subsection 16(2) of the Customs Tariff.
Benefits and costs
The amendments will result in a duty savings to Canadian industry of over $1 million and involve additional savings to Canadian industry by increasing access to duty-free treatment under the NAFTA for their exports to the U.S. and Mexican markets. While the amendments cover $100 billion in trilateral trade, a large majority is already being traded on a duty-free basis. The amendments will enable additional imports to qualify for duty-free treatment under the NAFTA and will result in a simplification of the administrative requirements for businesses.
The amendments will enhance the Canadian industry’s benefits under the NAFTA and have the potential to increase the level of access for Canadian exports to the United States and Mexico on a duty-free basis.
Rationale
These amendments meet or comply with international trade agreements or obligations and foreign relations. The rules of origin amendments are the result of interdepartmental, intergovernmental and public consultations. They have been developed by the Governments of Canada, Mexico and the United States in response to specific industry requests and to correspond to developments made in free trade agreements negotiated subsequent to the NAFTA. These amendments liberalize the rules of origin in areas of export interest for a number of Canadian industry stakeholders and will enhance access to NAFTA markets. They were announced as part of NAFTA Free Trade Commission priorities and ongoing NAFTA work program in a Ministerial statement of August 2007. They will constitute the third set of rules of origin amendments under the continuous process of NAFTA rules of origin liberalization.
Consultation
Throughout development and negotiation of the proposed rules of origin amendments, consultations were carried out with other government departments and Canadian industry to ensure that the proposed amendments reflected their interests. Consultations were also carried out with the U.S. and Mexican governments.
Once a trilaterally agreed set of proposed rules of origin amendments was developed, a notice to consult Canadians on the proposed amendments was published in Part I of the Canada Gazette on July 8, 2006. No opposition was received.
Implementation, enforcement and service standards
Compliance with the terms and conditions of these Regulations will be monitored by the Canada Border Services Agency in the normal course of their administration of customs and tariff-related legislation and regulations. The Canada Border Services Agency will incorporate the amendments into its D-memorandum containing a departmental consolidation of Schedule I to the NAFTA Rules of Origin Regulations.
Contact
Colleen Brock
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: 613-996-5470
Footnote a
S.C. 2001, c. 28, s. 34(3)
Footnote b
S.C. 1997, c. 36
Footnote 1
SOR/94-14; SOR/95-382
NOTICE:
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