Goods that qualify as originating will lose that status if they do not remain under Customs control or undergo any operation outside the NAFTA region, other than unloading, reloading, or any other operation necessary to preserve them in good condition or to transport the goods to Canada, Mexico or the United States.
Surgical instruments made in the United States (wholly of originating materials) and cotton gowns and bandages made in Mexico (from fibers and fabric wholly grown and produced in Mexico) are sent to the Dominican Republic where they are packaged together and then sterilized for use in operating rooms.
Upon their return to the United States, the medical sets are not eligible for preferential treatment under the NAFTA because they underwent operations in the Dominican Republic that were not necessary to preserve the goods in good condition or to transport them to the United States.
- Article 411 : Transshipment
- Appendix to 19 CFR 181, Section 16
- 19 CFR 181.23
- General Notes 12(L)
- General Notes 12(a)