NAFTA - Amendments to Appendix 6, Annex 300-B

Rules of Origin Short Supply Goods

On July 1, 2009, Canada and the United States implemented measures to liberalize the NAFTA rules of origin applicable to certain textile goods which are made from acrylic staple fibres, that are not available from domestic producers in commercial quantities – the so-called “short-supply” goods.

Section 7, Annex 300-B of the NAFTA allows any two Parties to agree to different rules of origin for particular textile products made from inputs that are unavailable from domestic production in the NAFTA territory.

The proposals were developed jointly in consultation with industry and government representatives based on specific industry requests.

This new rule of origin will allow for the use of non-originating acrylic or modacrylic synthetic staple fibres of subheading 5503.30 in the production of a good of subheading 5801.36.

Rule Applicable to Chenille Fabric Containing Acrylic Staple Fibres

For purposes of trade between Canada and the United States, a good of either Party of subheading 5801.36 shall be treated as if it were an originating good only if any of the following changes in tariff classification is satisfied within the territory of one or both of the Parties:

• a change to subheading 5801.36 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, Chapter 54, heading 55.01 through 55.02, subheading 5503.10 through 5503.20 or 5503.40 through 5503.90 or heading 55.04 through 55.16.

The amendments also include a technical rectification to an earlier bilateral Canada-United States short supply modification to Appendix 6 of NAFTA Annex 300-B, Textile and Apparel Goods, implemented by Canada and the United States in July 2005, which is required to align one of the referenced exceptions in the earlier modification with that referenced in the rules of origin applicable to similar fabrics.

Rule Applicable to Pile Fabric Containing Dry Spun Acrylic Fibre

In the last line of the bilaterally agreed rule applicable to pile fabric containing dry spun acrylic fibre, replace “55.15” with “55.16”, as follows:

For purposes of trade between Canada and the United States, a good of either Party of subheading 5801.35 shall be treated as if it were an originating good only if any of the following changes in tariff classification is satisfied within the territory of one or both of the Parties:

• a change to woven-warp pile fabric, cut, of subheading 5801.35, with pile of dry-spun acrylic staple fibres of subheading 5503.30, which fabric has been dyed in the piece to a single uniform color, 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, Chapter 54, heading 55.01 through 55.02, subheading 5503.10 through 5503.20 or 5503.40 through 5503.90 or heading 55.04 through 55.16.

The rules of origin changes are effective between Canada and the United States as of July 1, 2009.