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  3. Liberalization of Certain NAFTA Rules of Origin for Goods of Canada, "Track One"

Liberalization of Certain NAFTA Rules of Origin for Goods of Canada, "Track One"

On February 24, 2005, the Executive Director, Trade Compliance and Facilitation, Office of Field Operations, CBP, issued memorandum titled "Presidential Proclamation 7870 Liberalizing Certain North American Free Trade Agreement (NAFTA) Specific Rules of Origin TCF FY05-0834."  The content of that memorandum, with updated links and modified for web format, is as follows:

Presidential Proclamation 7870 liberalizing NAFTA rules of origin on certain goods was published in the Federal Register notice dated February 14, 2005 (70 FR 7611).  This action was taken in accordance with section 202(q) of the NAFTA Implementation Act authorizing the President, subject to the consultation and layover requirements of section 103 of the same, to proclaim modifications to the rules of origin.

The modifications made by the Annex to the Proclamation shall be effective with respect to goods of Canada that are entered, or withdrawn from warehouse for consumption, on or after January 1, 2005, and with respect to goods of Mexico on or after a date that the United States Trade Representative (USTR) announces in the Federal Register. Importers may avail themselves of 19 USC 1520(d) to make post-importation claims within one year from the date of importation.

The modifications affect goods in the following chapters to the Harmonized Tariff Schedule of the United States (HTS):

  • 9 Spices, etc.
  • 12 Oil Seeds, oleaginous fruits, etc.
  • 13 Gums, resins and other vegetable saps and extracts, etc.
  • 21 Miscellaneous edible preparations,
  • 71 Jewelry, etc.
  • 85 Electrical machinery, etc.
  • 90 Measuring devices and instruments, etc.
  • 95 Toys, etc.

For a more comprehensive understanding of the commodities affected by this liberalization and the significance of the rule of origin changes you may refer to NAFTA Investigation No. 103-6, The Probable Effect of Certain Proposed Modifications to the Rules of Origin Contained in the North American Free Trade Agreement, published by the North American Free Trade Commission and available on the website of the United States International Trade Commission (USITC) through EDIS (free registration may be required).

Be advised that all of the rule of origin changes in Presidential Proclamation 7870 are liberalizations and in no case do they entail further subdividing of the HTS.

Producers and exporters wishing to certify effected goods as originating for export to Mexico must continue to comply with the previous, stricter rules of origin, while originating exports to Canada need comply only with the new, more liberal rules herein.  These asymmetric rules of origin will remain in effect until such time as announced by the members of the trade community including producers, importers and brokers of the goods classified in the Annex to Presidential Proclamation 7870 should make themselves aware of these rule of origin changes.

Please direct questions concerning this memorandum to Seth Mazze, Trade Agreements Branch, at 202-863-6567.

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