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Title:NAFTA Preamble -- 1993
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:2175
PREAMBLE
The Government of Canada, the Government of the United Mexican
States and the Government of the United States of America,
resolved to:
STRENGTHEN the special bonds of friendship and cooperation
among their nations;
CONTRIBUTE to the harmonious development and expansion of
world trade and provide a catalyst to broader
international cooperation;
CREATE an expanded and secure market for the goods and
services produced in their territories;
REDUCE distortions to trade;
ESTABLISH clear and mutually advantageous rules governing
their trade;
ENSURE a predictable commercial framework for business
planning and investment;
BUILD on their respective rights and obligations under the
General Agreement on Tariffs and Trade and other
multilateral and bilateral instruments of cooperation;
ENHANCE the competitiveness of their firms in global
markets;
FOSTER creativity and innovation, and promote trade in
goods and services that are the subject of intellectual
property rights;
CREATE new employment opportunities and improve working
conditions and living standards in their respective
territories;
UNDERTAKE each of the preceding in a manner consistent
with environmental protection and conservation;
PRESERVE their flexibility to safeguard the public
welfare;
PROMOTE sustainable development;
STRENGTHEN the development and enforcement of
environmental laws and regulations; and
PROTECT, enhance and enforce basic workers' rights;
HAVE AGREED as follows:
Title:General Part -- Chapter 1,
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
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PART ONE
GENERAL PART
Chapter One
Objectives
Article 101: Establishment of the Free Trade Area
The Parties to this Agreement, consistent with Article
XXIV of the General Agreement on Tariffs and Trade, hereby
establish a free trade area.
Article 102: Objectives
1. The objectives of this Agreement, as elaborated more
specifically through its principles and rules, including
national treatment, most-favored-nation treatment and
transparency, are to:
(a) eliminate barriers to trade in, and facilitate the
cross-border movement of, goods and services between
the territories of the Parties;
(b) promote conditions of fair competition in the free
trade area;
(c) increase substantially investment opportunities in
the territories of the Parties;
(d) provide adequate and effective protection and
enforcement of intellectual property rights in each
Party's territory;
(e) create effective procedures for the implementation
and application of this Agreement, for its joint
administration and for the resolution of disputes;
and
(f) establish a framework for further trilateral,
regional and multilateral cooperation to expand and
enhance the benefits of this Agreement.
2. The Parties shall interpret and apply the provisions of
this Agreement in the light of its objectives set out in
paragraph 1 and in accordance with applicable rules of
international law.
Article 103: Relation to Other Agreements
1. The Parties affirm their existing rights and obligations
with respect to each other under the General Agreement on
Tariffs and Trade and other agreements to which such Parties
are party.
2. In the event of any inconsistency between this Agreement
and such other agreements, this Agreement shall prevail to the
extent of the inconsistency, except as otherwise provided in
this Agreement.
Article 104: Relation to Environmental and Conservation
Agreements
1. In the event of any inconsistency between this Agreement
and the specific trade obligations set out in:
(a) the Convention on International Trade in Endangered
Species of Wild Fauna and Flora, done at Washington,
March 3, 1973, as amended June 22, 1979,
(b) the Montreal Protocol on Substances that Deplete the
Ozone Layer, done at Montreal, September 16, 1987, as
amended June 29, 1990,
(c) the Basel Convention on the Control of Transboundary
Movements of Hazardous Wastes and Their Disposal,
done at Basel, March 22, 1989, on its entry into
force for Canada, Mexico and the United States, or
(d) the agreements set out in Annex 104.1,
such obligations shall prevail to the extent of the
inconsistency, provided that where a Party has a choice among
equally effective and reasonably available means of complying
with such obligations, the Party chooses the alternative that
is the least inconsistent with the other provisions of this
Agreement.
2. The Parties may agree in writing to modify Annex 104.1 to
include any amendment to an agreement referred to in paragraph
1, and any other environmental or conservation agreement.
Article 105: Extent of Obligations
The Parties shall ensure that all necessary measures are
taken in order to give effect to the provisions of this
Agreement, including their observance, except as otherwise
provided in this Agreement, by state and provincial
governments.
Annex 104.1
Bilateral and Other Environmental and Conservation Agreements
1. The Agreement Between the Government of Canada and the
Government of the United States of America Concerning the
Transboundary Movement of Hazardous Waste, signed at Ottawa,
October 28, 1986.
2. The Agreement Between the United States of America and the
United Mexican States on Cooperation for the Protection and
Improvement of the Environment in the Border Area, signed at
La Paz, Baja California Sur, August 14, 1983.
Title:General Definitions -- Chapter 2
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
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Chapter Two
General Definitions
Article 201: Definitions of General Application
1. For purposes of this Agreement, unless otherwise
specified:
Commission means the Free Trade Commission established under
Article 2001(1) (The Free Trade Commission);
Customs Valuation Code means the Agreement on Implementation of
Article VII of the General Agreement on Tariffs and Trade,
including its interpretative notes;
days means calendar days, including weekends and holidays;
enterprise means any entity constituted or organized under
applicable law, whether or not for profit, and whether
privately-owned or governmentally-owned, including any
corporation, trust, partnership, sole proprietorship, joint
venture or other association;
enterprise of a Party means an enterprise constituted or
organized under the law of a Party;
existing means in effect on the date of entry into force of
this Agreement;
Generally Accepted Accounting Principles means the recognized
consensus or substantial authoritative support in the territory
of a Party with respect to the recording of revenues, expenses,
costs, assets and liabilities, disclosure of information and
preparation of financial statements. These standards may be
broad guidelines of general application as well as detailed
standards, practices and procedures;
goods of a Party means domestic products as these are
understood in the General Agreement on Tariffs and Trade or
such goods as the Parties may agree, and includes originating
goods of that Party;
Harmonized System (HS) means the Harmonized Commodity
Description and Coding System, and its legal notes, as adopted
and implemented by the Parties in their respective tariff laws;
measure includes any law, regulation, procedure, requirement or
practice;
national means a natural person who is a citizen or permanent
resident of a Party and any other natural person referred to in
Annex 201.1;
originating means qualifying under the rules of origin set out
in Chapter Four (Rules of Origin);
person means a natural person or an enterprise;
person of a Party means a national, or an enterprise of a
Party;
Secretariat means the Secretariat established under Article
2002(1) (The Secretariat);
state enterprise means an enterprise that is owned, or
controlled through ownership interests, by a Party; and
territory means for a Party the territory of that Party as set
out in Annex 201.1.
2. For purposes of this Agreement, unless otherwise
specified, a reference to a state or province includes local
governments of that state or province.
Annex 201.1
Country-Specific Definitions
For purposes of this Agreement, unless otherwise specified:
national also includes:
(a) with respect to Mexico, a national or a citizen
according to Articles 30 and 34, respectively, of the
Mexican Constitution; and
(b) with respect to the United States, "national of the
United States" as defined in the existing provisions
of the Immigration and Nationality Act;
territory means:
(a) with respect to Canada, the territory to which its
customs laws apply, including any areas beyond the
territorial seas of Canada within which, in
accordance with international law and its domestic
law, Canada may exercise rights with respect to the
seabed and subsoil and their natural resources;
(b) with respect to Mexico,
(i) the states of the Federation and the Federal
District,
(ii) the islands, including the reefs and keys, in
adjacent seas,
(iii) the islands of Guadalupe and Revillagigedo
situated in the Pacific Ocean,
(iv) the continental shelf and the submarine shelf of
such islands, keys and reefs,
(v) the waters of the territorial seas, in
accordance with international law, and its
interior maritime waters,
(vi) the space located above the national territory,
in accordance with international law, and
Annex 201.1
(vii) any areas beyond the territorial seas of
Mexico within which, in accordance with
international law, including the United
Nations Convention on the Law of the Sea,
and its domestic law, Mexico may exercise
rights with respect to the seabed and
subsoil and their natural resources; and
(c) with respect to the United States,
(i) the customs territory of the United States,
which includes the 50 states, the District of
Columbia and Puerto Rico,
(ii) the foreign trade zones located in the United
States and Puerto Rico, and
(iii) any areas beyond the territorial seas of
the United States within which, in
accordance with international law and its
domestic law, the United States may
exercise rights with respect to the seabed
and subsoil and their natural resources.
Title:Part Two Trade In Goods -- Chapter 3
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:151278
PART TWO
TRADE IN GOODS
Chapter Three
National Treatment and Market Access for Goods
Article 300: Scope and Coverage
This Chapter applies to trade in goods of a Party,
including:
(a) goods covered by Annex 300-A (Trade and Investment in
the Automotive Sector),
(b) goods covered by Annex 300-B (Textile and Apparel
Goods), and
(c) goods covered by another Chapter in this Part,
except as provided in such Annex or Chapter.
Section A - National Treatment
Article 301: National Treatment
1. Each Party shall accord national treatment to the goods of
another Party in accordance with Article III of the General
Agreement on Tariffs and Trade (GATT), including its
interpretative notes, and to this end Article III of the GATT
and its interpretative notes, or any equivalent provision of a
successor agreement to which all Parties are party, are
incorporated into and made part of this Agreement.
2. The provisions of paragraph 1 regarding national treatment
shall mean, with respect to a state or province, treatment no
less favorable than the most favorable treatment accorded by
such state or province to any like, directly competitive or
substitutable goods, as the case may be, of the Party of which
it forms a part.
3. Paragraphs 1 and 2 do not apply to the measures set out in
Annex 301.3.
Section B - Tariffs
Article 302: Tariff Elimination
1. Except as otherwise provided in this Agreement, no Party
may increase any existing customs duty, or adopt any customs
duty, on an originating good.
2. Except as otherwise provided in this Agreement, each Party
shall progressively eliminate its customs duties on originating
goods in accordance with its Schedule to Annex 302.2.
3. On the request of any Party, the Parties shall consult to
consider accelerating the elimination of customs duties set out
in their Schedules. An agreement between two or more Parties
to accelerate the elimination of a customs duty on a good shall
supersede any duty rate or staging category determined pursuant
to their Schedules for such good when approved by each such
Party in accordance with its applicable legal procedures.
4. Each Party may adopt or maintain import measures to
allocate in-quota imports made pursuant to a tariff rate quota
set out in Annex 302.2, provided that such measures do not have
trade restrictive effects on imports additional to those caused
by the imposition of the tariff rate quota.
5. On written request of any Party, a Party applying or
intending to apply measures pursuant to paragraph 4 shall
consult to review the administration of those measures.
Article 303: Restriction on Drawback and Duty Deferral
Programs
1. Except as otherwise provided in this Article, no Party may
refund the amount of customs duties paid, or waive or reduce
the amount of customs duties owed, on a good imported into its
territory, on condition that the good is:
(a) subsequently exported to the territory of another
Party,
(b) used as a material in the production of another good
that is subsequently exported to the territory of
another Party, or
(c) substituted by an identical or similar good used as a
material in the production of another good that is
subsequently exported to the territory of another
Party,
in an amount that exceeds the lesser of the total amount of
customs duties paid or owed on the good on importation into its
territory and the total amount of customs duties paid to
another Party on the good that has been subsequently exported
to the territory of that other Party.
2. No Party may, on condition of export, refund, waive or
reduce:
(a) an antidumping or countervailing duty that is applied
pursuant to a Party's domestic law and that is not
applied inconsistently with Chapter Nineteen (Review
and Dispute Settlement in Antidumping and
Countervailing Duty Matters);
(b) a premium offered or collected on an imported good
arising out of any tendering system in respect of the
administration of quantitative import restrictions,
tariff rate quotas or tariff preference levels;
(c) a fee applied pursuant to section 22 of the U.S.
Agricultural Adjustment Act, subject to Chapter Seven
(Agriculture and Sanitary and Phytosanitary
Measures); or
(d) customs duties paid or owed on a good imported into
its territory and substituted by an identical or
similar good that is subsequently exported to the
territory of another Party.
3. Where a good is imported into the territory of a Party
pursuant to a duty deferral program and is subsequently
exported to the territory of another Party, or is used as a
material in the production of another good that is subsequently
exported to the territory of another Party, or is substituted
by an identical or similar good used as a material in the
production of another good that is subsequently exported to the
territory of another Party, the Party from whose territory the
good is exported:
(a) shall assess the customs duties as if the exported
good had been withdrawn for domestic consumption; and
(b) may waive or reduce such customs duties to the extent
permitted under paragraph 1.
4. In determining the amount of customs duties that may be
refunded, waived or reduced pursuant to paragraph 1 on a good
imported into its territory, each Party shall require
presentation of satisfactory evidence of the amount of customs
duties paid to another Party on the good that has been
subsequently exported to the territory of that other Party.
5. Where satisfactory evidence of the customs duties paid to
the Party to which a good is subsequently exported under a duty
deferral program described in paragraph 3 is not presented
within 60 days after the date of exportation, the Party from
whose territory the good was exported:
(a) shall collect customs duties as if the exported good
had been withdrawn for domestic consumption; and
(b) may refund such customs duties to the extent
permitted under paragraph 1 on the timely
presentation of such evidence under its laws and
regulations.
6. This Article does not apply to:
(a) a good entered under bond for transportation and
exportation to the territory of another Party;
(b) a good exported to the territory of another Party in
the same condition as when imported into the
territory of the Party from which the good was
exported (processes such as testing, cleaning,
repacking or inspecting the good, or preserving it in
its same condition, shall not be considered to change
a good's condition). Except as provided in Annex
703.2, Section A, paragraph 12, where such a good has
been commingled with fungible goods and exported in
the same condition, its origin for purposes of this
subparagraph, may be determined on the basis of the
inventory methods provided for in the Uniform
Regulations established under Article 511 (Uniform
Regulations);
(c) a good imported into the territory of a Party that is
deemed to be exported from its territory, or used as
a material in the production of another good that is
deemed to be exported to the territory of another
Party, or is substituted by an identical or similar
good used as a material in the production of another
good that is deemed to be exported to the territory
of another Party, by reason of
(i) delivery to a duty-free shop,
(ii) delivery for ship's stores or supplies for ships
or aircraft, or
(iii) delivery for use in joint undertakings of
two or more of the Parties and that will
subsequently become the property of the
Party into whose territory the good was
imported;
(d) a refund of customs duties by a Party on a particular
good imported into its territory and subsequently
exported to the territory of another Party, where
that refund is granted by reason of the failure of
such good to conform to sample or specification, or
by reason of the shipment of such good without the
consent of the consignee;
(e) an originating good that is imported into the
territory of a Party and is subsequently exported to
the territory of another Party, or used as a material
in the production of another good that is
subsequently exported to the territory of another
Party, or is substituted by an identical or similar
good used as a material in the production of another
good that is subsequently exported to the territory
of another Party; or
(f) a good set out in Annex 303.6.
7. Except for paragraph 2(d), this Article shall apply as of
the date set out in each Party's Section of Annex 303.7.
8. Notwithstanding any other provision of this Article and
except as specifically provided in Annex 303.8, no Party may
refund the amount of customs duties paid, or waive or reduce
the amount of customs duties owed, on a non-originating good
provided for in item 8540.11.aa (color cathode-ray television
picture tubes, including video monitor tubes, with a diagonal
exceeding 14 inches) or 8540.11.cc (color cathode-ray
television picture tubes for high definition television, with a
diagonal exceeding 14 inches) that is imported into the Party's
territory and subsequently exported to the territory of another
Party, or is used as a material in the production of another
good that is subsequently exported to the territory of another
Party, or is substituted by an identical or similar good used
as a material in the production of another good that is
subsequently exported to the territory of another Party.
9. For purposes of this Article:
customs duties are the customs duties that would be applicable
to a good entered for consumption in the customs territory of a
Party if the good were not exported to the territory of another
party;
identical or similar goods means "identical or similar goods"
as defined in Article 415 (Rules of Origin - Definitions);
material means "material" as defined in Article 415;
used means "used" as defined in Article 415; and
where a good referred to by a tariff item number in this
Article is described in parentheses following the tariff item
number, the description is provided for purposes of reference
only.
Article 304: Waiver of Customs Duties
1. Except as set out in Annex 304.1, no Party may adopt any
new waiver of customs duties, or expand with respect to
existing recipients or extend to any new recipient the
application of an existing waiver of customs duties, where the
waiver is conditioned, explicitly or implicitly, on the
fulfillment of a performance requirement.
2. Except as set out in Annex 304.2, no Party may, explicitly
or implicitly, condition on the fulfillment of a performance
requirement the continuation of any existing waiver of customs
duties.
3. If a waiver or a combination of waivers of customs duties
granted by a Party with respect to goods for commercial use by
a designated person can be shown by another Party to have an
adverse impact on the commercial interests of a person of that
Party, or of a person owned or controlled by a person of that
Party that is located in the territory of the Party granting
the waiver, or on the other Party's economy, the Party granting
the waiver shall either cease to grant it or make it generally
available to any importer.
4. This Article shall not apply to measures subject to
Article 303.
Article 305: Temporary Admission of Goods
1. Each Party shall grant duty-free temporary admission for:
(a) professional equipment necessary for carrying out the
business activity, trade or profession of a business
person who qualifies for temporary entry pursuant to
Chapter Sixteen (Temporary Entry for Business
Persons),
(b) equipment for the press or for sound or television
broadcasting and cinematographic equipment,
(c) goods imported for sports purposes and goods intended
for display or demonstration, and
(d) commercial samples and advertising films,
imported from the territory of another Party, regardless of
their origin and regardless of whether like, directly
competitive or substitutable goods are available in the
territory of the Party.
2. Except as otherwise provided in this Agreement, no Party
may condition the duty-free temporary admission of a good
referred to in paragraph 1(a), (b) or (c), other than to
require that such good:
(a) be imported by a national or resident of another
Party who seeks temporary entry;
(b) be used solely by or under the personal supervision
of such person in the exercise of the business
activity, trade or profession of that person;
(c) not be sold or leased while in its territory;
(d) be accompanied by a bond in an amount no greater than
110 percent of the charges that would otherwise be
owed on entry or final importation, or by another
form of security, releasable on exportation of the
good, except that a bond for customs duties shall not
be required for an originating good;
(e) be capable of identification when exported;
(f) be exported on the departure of that person or within
such other period of time as is reasonably related to
the purpose of the temporary admission; and
(g) be imported in no greater quantity than is reasonable
for its intended use.
3. Except as otherwise provided in this Agreement, no Party
may condition the duty-free temporary admission of a good
referred to in paragraph 1(d), other than to require that such
good:
(a) be imported solely for the solicitation of orders for
goods, or services provided from the territory, of
another Party or non-Party;
(b) not be sold, leased or put to any use other than
exhibition or demonstration while in its territory;
(c) be capable of identification when exported;
(d) be exported within such period as is reasonably
related to the purpose of the temporary admission;
and
(e) be imported in no greater quantity than is reasonable
for its intended use.
4. A Party may impose the customs duty and any other charge
on a good temporarily admitted duty-free under paragraph 1 that
would be owed on entry or final importation of such good if any
condition that the Party imposes under paragraph 2 or 3 has not
been fulfilled.
5. Subject to Chapters Eleven (Investment) and Twelve (Cross-
Border Trade in Services):
(a) each Party shall allow a vehicle or container used in
international traffic that enters its territory from
the territory of another Party to exit its territory
on any route that is reasonably related to the
economic and prompt departure of such vehicle or
container;
(b) no Party may require any bond or impose any penalty
or charge solely by reason of any difference between
the port of entry and the port of departure of a
vehicle or container;
(c) no Party may condition the release of any obligation,
including any bond, that it imposes in respect of the
entry of a vehicle or container into its territory on
its exit through any particular port of departure;
and
(d) no Party may require that the vehicle or carrier
bringing a container from the territory of another
Party into its territory be the same vehicle or
carrier that takes such container to the territory of
another Party.
6. For purposes of paragraph 5, "vehicle" means a truck, a
truck tractor, tractor, trailer unit or trailer, a locomotive,
or a railway car or other railroad equipment.
Article 306: Duty-Free Entry of Certain Commercial Samples
and Printed Advertising Materials
Each Party shall grant duty-free entry to commercial
samples of negligible value, and to printed advertising
materials, imported from the territory of another Party,
regardless of their origin, but may require that:
(a) such samples be imported solely for the solicitation
of orders for goods, or services provided from the
territory, of another Party or non-Party; or
(b) such advertising materials be imported in packets
that each contain no more than one copy of each such
material and that neither such materials nor packets
form part of a larger consignment.
Article 307: Goods Re-Entered after Repair or Alteration
1. Except as set out in Annex 307.1, no Party may apply a
customs duty to a good, regardless of its origin, that re-
enters its territory after that good has been exported from its
territory to the territory of another Party for repair or
alteration, regardless of whether such repair or alteration
could be performed in its territory.
2. Notwithstanding Article 303, no Party may apply a customs
duty to a good, regardless of its origin, imported temporarily
from the territory of another Party for repair or alteration.
3. Annex 307.3 applies to the Parties specified in that Annex
respecting the repair and rebuilding of vessels.
Article 308: Most-Favored-Nation Rates of Duty on Certain
Goods
1. Annex 308.1 applies to certain automatic data processing
goods and their parts.
2. Annex 308.2 applies to certain color television tubes.
3. Each Party shall accord most-favored-nation duty-free
treatment to any local area network apparatus imported into its
territory, and shall consult in accordance with Annex 308.3.
Section C - Non-Tariff Measures
Article 309: Import and Export Restrictions
1. Except as otherwise provided in this Agreement, no Party
may adopt or maintain any prohibition or restriction on the
importation of any good of another Party or on the exportation
or sale for export of any good destined for the territory of
another Party, except in accordance with Article XI of the
GATT, including its interpretative notes, and to this end
Article XI of the GATT and its interpretative notes, or any
equivalent provision of a successor agreement to which all
Parties are party, are incorporated into and made a part of
this Agreement.
2. The Parties understand that the GATT rights and
obligations incorporated by paragraph 1 prohibit, in any
circumstances in which any other form of restriction is
prohibited, export price requirements and, except as permitted
in enforcement of countervailing and antidumping orders and
undertakings, import price requirements.
3. In the event that a Party adopts or maintains a
prohibition or restriction on the importation from or
exportation to a non-Party of a good, nothing in this Agreement
shall be construed to prevent the Party from:
(a) limiting or prohibiting the importation from the
territory of another Party of such good of that non-
Party; or
(b) requiring as a condition of export of such good of
the Party to the territory of another Party, that the
good not be re-exported to the non-Party, directly or
indirectly, without being consumed in the territory
of the other Party.
4. In the event that a Party adopts or maintains a
prohibition or restriction on the importation of a good from a
non-Party, the Parties, on request of any Party, shall consult
with a view to avoiding undue interference with or distortion
of pricing, marketing and distribution arrangements in another
Party.
5. Paragraphs 1 through 4 shall not apply to the measures set
out in Annex 301.3.
Article 310: Customs User Fees
1. No Party may adopt any customs user fee of the type
referred to in Annex 310.1 for originating goods.
2. The Parties specified in Annex 310.1 may maintain existing
such fees in accordance with that Annex.
Article 311: Country of Origin Marking
Annex 311 applies to measures relating to country of
origin marking.
Article 312: Wine and Distilled Spirits
1. No Party may adopt or maintain any measure requiring that
distilled spirits imported from the territory of another Party
for bottling be blended with any distilled spirits of the
Party.
2. Annex 312.2 applies to other measures relating to wine and
distilled spirits.
Article 313: Distinctive Products
Annex 313 applies to standards and labelling of the
distinctive products set out in that Annex.
Article 314: Export Taxes
Except as set out in Annex 314, no Party may adopt or
maintain any duty, tax or other charge on the export of any
good to the territory of another Party, unless such duty, tax
or charge is adopted or maintained on:
(a) exports of any such good to the territory of all
other Parties; and
(b) any such good when destined for domestic consumption.
Article 315: Other Export Measures
1. Except as set out in Annex 315, a Party may adopt or
maintain a restriction otherwise justified under Articles
XI:2(a) or XX(g), (i) or (j) of the GATT with respect to the
export of a good of the Party to the territory of another
Party, only if:
(a) the restriction does not reduce the proportion of the
total export shipments of the specific good made
available to that other Party relative to the total
supply of that good of the Party maintaining the
restriction as compared to the proportion prevailing
in the most recent 36-month period for which data are
available prior to the imposition of the measure, or
in such other representative period on which the
Parties may agree;
(b) the Party does not impose a higher price for exports
of a good to that other Party than the price charged
for such good when consumed domestically, by means of
any measure, such as licenses, fees, taxation and
minimum price requirements. The foregoing provision
does not apply to a higher price that may result from
a measure taken pursuant to subparagraph (a) that
only restricts the volume of exports; and
(c) the restriction does not require the disruption of
normal channels of supply to that other Party or
normal proportions among specific goods or categories
of goods supplied to that other Party.
2. The Parties shall cooperate in the maintenance and
development of effective controls on the export of each other's
goods to a non-Party in implementing this Article.
Section D - Consultations
Article 316: Consultations and Committee on Trade in Goods
1. The Parties hereby establish a Committee on Trade in
Goods, comprising representatives of each Party.
2. The Committee shall meet on the request of any Party or
the Commission to consider any matter arising under this
Chapter.
3. The Parties shall convene at least once each year a
meeting of their officials responsible for customs,
immigration, inspection of food and agricultural products,
border inspection facilities, and regulation of transportation
for the purpose of addressing issues related to movement of
goods through the Parties' ports of entry.
Article 317: Third-Country Dumping
1. The Parties affirm the importance of cooperation with
respect to actions under Article 12 of the Agreement on
Implementation of Article VI of the General Agreement on
Tariffs and Trade.
2. Where a Party presents an application to another Party
requesting antidumping action on its behalf, those Parties
shall consult within 30 days respecting the factual basis of
the request, and the requested Party shall give full
consideration to the request.
Section E - Definitions
Article 318: Definitions
For purposes of this Chapter:
advertising films means recorded visual media, with or without
sound-tracks, consisting essentially of images showing the
nature or operation of goods or services offered for sale or
lease by a person established or resident in the territory of
any Party, provided that the films are of a kind suitable for
exhibition to prospective customers but not for broadcast to
the general public, and provided that they are imported in
packets that each contain no more than one copy of each film
and that do not form part of a larger consignment;
commercial samples of negligible value means commercial samples
having a value, individually or in the aggregate as shipped, of
not more than one U.S. dollar, or the equivalent amount in the
currency of another Party, or so marked, torn, perforated or
otherwise treated that they are unsuitable for sale or for use
except as commercial samples;
consumed means:
(a) actually consumed; or
(b) further processed or manufactured so as to result in
a substantial change in value, form or use of the
good or in the production of another good;
customs duty includes any customs or import duty and a charge
of any kind imposed in connection with the importation of a
good, including any form of surtax or surcharge in connection
with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed
consistently with Article III:2 of the GATT, or any
equivalent provision of a successor agreement to
which all Parties are party, in respect of like,
directly competitive or substitutable goods of the
Party, or in respect of goods from which the imported
good has been manufactured or produced in whole or in
part;
(b) antidumping or countervailing duty that is applied
pursuant to a Party's domestic law and not applied
inconsistently with Chapter Nineteen (Review and
Dispute Settlement in Antidumping and Countervailing
Duty Matters);
(c) fee or other charge in connection with importation
commensurate with the cost of services rendered;
(d) premium offered or collected on an imported good
arising out of any tendering system in respect of the
administration of quantitative import restrictions,
tariff rate quotas or tariff preference levels; and
(e) fee applied pursuant to section 22 of the U.S.
Agricultural Adjustment Act, subject to Chapter Seven
(Agriculture and Sanitary and Phytosanitary
Measures);
distilled spirits include distilled spirits and distilled
spirit-containing beverages;
duty deferral program includes measures such as those governing
foreign-trade zones, temporary importations under bond, bonded
warehouses, "maquiladoras", and inward processing programs;
duty-free means free of customs duty;
goods imported for sports purposes means sports requisites for
use in sports contests, demonstrations or training in the
territory of the Party into whose territory such goods are
imported;
goods intended for display or demonstration includes their
component parts, ancillary apparatus and accessories;
item means a tariff classification item at the eight- or 10-
digit level set out in a Party's tariff schedule;
local area network apparatus means a good dedicated for use
solely or principally to permit the interconnection of
automatic data processing machines and units thereof for a
network that is used primarily for the sharing of resources
such as central processor units, data storage devices and input
or output units, including in-line repeaters, converters,
concentrators, bridges and routers, and printed circuit
assemblies for physical incorporation into automatic data
processing machines and units thereof suitable for use solely
or principally with a private network, and providing for the
transmission, receipt, error-checking, control, signal
conversion or correction functions for non-voice data to move
through a local area network;
performance requirement means a requirement that:
(a) a given level or percentage of goods or services be
exported;
(b) domestic goods or services of the Party granting a
waiver of customs duties be substituted for imported
goods or services;
(c) a person benefitting from a waiver of customs duties
purchase other goods or services in the territory of
the Party granting the waiver or accord a preference
to domestically produced goods or services;
(d) a person benefitting from a waiver of customs duties
produce goods or provide services, in the territory
of the Party granting the waiver, with a given level
or percentage of domestic content; or
(e) relates in any way the volume or value of imports to
the volume or value of exports or to the amount of
foreign exchange inflows;
printed advertising materials means those goods classified in
Chapter 49 of the Harmonized System, including brochures,
pamphlets, leaflets, trade catalogues, yearbooks published by
trade associations, tourist promotional materials and posters,
that are used to promote, publicize or advertise a good or
service, are essentially intended to advertise a good or
service, and are supplied free of charge;
repair or alteration does not include an operation or process
that either destroys the essential characteristics of a good or
creates a new or commercially different good;
satisfactory evidence means:
(a) a receipt, or a copy of a receipt, evidencing payment
of customs duties on a particular entry;
(b) a copy of the entry document with evidence that it
was received by a customs administration;
(c) a copy of a final customs duty determination by a
customs administration respecting the relevant entry;
or
(d) any other evidence of payment of customs duties
acceptable under the Uniform Regulations established
in accordance with Chapter Five (Customs Procedures);
total export shipments means all shipments from total supply to
users located in the territory of another Party;
total supply means all shipments, whether intended for domestic
or foreign users, from:
(a) domestic production;
(b) domestic inventory; and
(c) other imports as appropriate; and
waiver of customs duties means a measure that waives otherwise
applicable customs duties on any good imported from any
country, including the territory of another Party.
Annex 301.3
Exceptions to Articles 301 and 309
Section A - Canadian Measures
1. Articles 301 and 309 shall not apply to controls by Canada
on the export of logs of all species.
2. Articles 301 and 309 shall not apply to controls by Canada
on the export of unprocessed fish pursuant to the following
existing statutes, as amended as of August 12, 1992:
(a) New Brunswick Fish Processing Act, R.S.N.B. c. F-
18.01 (1982), and Fisheries Development Act, S.N.B.
c. F-15.1 (1977);
(b) Newfoundland Fish Inspection Act, R.S.N. 1990, c. F-
12;
(c) Nova Scotia Fisheries Act, S.N.S. 1977, c. 9;
(d) Prince Edward Island Fish Inspection Act, R.S.P.E.I.
1988, c. F-13; and
(e) Quebec Marine Products Processing Act, No. 38, S.Q.
1987, c. 51.
3. Articles 301 and 309 shall not apply to:
(a) except as provided in Annex 300-A, Appendix 300-A.1,
paragraph 4, measures by Canada respecting the
importation of any goods enumerated or referred to in
Schedule VII of the Customs Tariff, R.S.C. 1985, c.
41 (3rd Supp.), as amended,
(b) measures by Canada respecting the exportation of
liquor for delivery into any country into which the
importation of liquor is prohibited by law under the
existing provisions of the Export Act, R.S.C. 1985,
c. E-18, as amended,
(c) measures by Canada respecting preferential rates for
certain freight traffic under the existing provisions
of the Maritime Freight Rate Act, R.S.C. 1985, c. M-
1, as amended,
Annex 301.3
(d) Canadian excise taxes on absolute alcohol used in
manufacturing under the existing provisions of the
Excise Tax Act, R.S.C. 1985, c. E-15, as amended, and
(e) measures by Canada prohibiting the use of foreign or
non-duty paid ships in the coasting trade of Canada
unless granted a license under the Coasting Trade
Act, S.C. 1992, c. 31,
to the extent that such provisions were mandatory legislation
at the time of Canada's accession to the GATT and have not been
amended so as to decrease their conformity with the GATT.
4. Articles 301 and 309 shall not apply to quantitative
import restrictions on goods that originate in the territory of
the United States, considering operations performed in, or
materials obtained from, Mexico as if they were performed in,
or obtained from, a non-Party, and that are indicated by
asterisks in Chapter 89 in Annex 401.2 (Tariff Schedule of
Canada) of the Canada - United States Free Trade Agreement for
as long as the measures taken under the Merchant Marine Act of
1920, 46 App. U.S.C. 883, and the Merchant Marine Act of
1936, 46 App. U.S.C. 1171, 1176, 1241 and 1241o, apply with
quantitative effect to comparable Canadian origin goods sold or
offered for sale into the U.S. market.
5. Articles 301 and 309 shall not apply to:
(a) the continuation or prompt renewal of a non-
conforming provision of any statute referred to in
paragraph 2 or 3; and
(b) the amendment to a non-conforming provision of any
statute referred to in paragraph 2 or 3 to the extent
that the amendment does not decrease the conformity
of the provision with Articles 301 and 309.
Annex 301.3
Section B - Mexican Measures
1. Articles 301 and 309 shall not apply to controls by Mexico
on the export of logs of all species.
2. Articles 301 and 309 shall not apply to:
(a) measures under the existing provisions of Articles
192 through 194 of the General Ways of Communication
Act ("Ley de Vias Generales de Comunicaci n")
reserving exclusively to Mexican vessels all services
and operations not authorized for foreign vessels and
empowering the Mexican Ministry of Communications and
Transportation to deny foreign vessels the right to
perform authorized services if their country of
origin does not grant reciprocal rights to Mexican
vessels; and
(b) export permit measures applied to goods for
exportation to another Party that are subject to
quantitative restrictions or tariff rate quotas
adopted or maintained by that other Party.
3. Articles 301 and 309 shall not apply to:
(a) the continuation or prompt renewal of a non-
conforming provision of the statute referred to in
paragraph 2(a); and
(b) the amendment to a non-conforming provision of the
statute referred to in paragraph 2(a) to the extent
that the amendment does not decrease the conformity
of the provision with Articles 301 and 309.
4. (a) Notwithstanding Article 309, for the first 10 years
after the date of entry into force of this Agreement,
Mexico may adopt or maintain prohibitions or
restrictions on the importation of used goods
provided for in the items, as of August 12, 1992, in
the Tariff Schedule of the General Import Duty Act
(Tarifa de la "Ley del Impuesto General de
Importaci n") set out below:
(For purposes of reference only, descriptions are provided
next to the corresponding item.)
Annex 301.3
Item Description
8407.34.99 Gasoline engines of more than 1,000 cm3,
except for motorcycles.
8413.11.01 Distributors fitted with a measuring device
even if it includes a totalizing mechanism.
8413.40.01 Trailer type, from 36 up to 60 m3/hr
capacity; without hydraulic elevator for
the discharge hose.
8426.12.01 Mobile portals on tires and straddle
carriers.
8426.19.01 Other (overhead travelling cranes, bridge
cranes and straddle carriers).
8426.30.01 Portal cranes.
8426.41.01 Cranes with structural iron jib (lattice)
with mechanical working, self-propelled,
with unit weight up to 55 tons.
8426.41.02 Cranes with hydraulically actuated rigid
jib, self-propelled with maximum capacity
above 9.9 tons and not exceeding 30 tons.
8426.41.99 Other (machinery and apparatus, self
propelled, on tires.)
8426.49.01 Cranes with structural iron jib (lattice)
with mechanical working, with unit weight
up to 55 tons.
8426.49.02 Cranes with hydraulically actuated rigid
jib, self-propelled, with load capacity
above 9.9 tons and not exceeding 30 tons.
8426.91.01 Cranes, other than those provided for in
items 8426.91.02, 8426.91.03 and
8426.91.04.
8426.91.02 Cranes with hydraulic working, with
articulated or rigid booms, with capacity
up to 9.9 tons at 1 meter radius.
Annex 301.3
8426.91.03 Isolated elevating cranes, basket type,
with carrying capacity equal to or less
than 1 ton and up to 15 meters lift.
8426.91.99 Other (machinery and apparatus; designed
for mounting on road vehicles).
8426.99.01 Cranes, other than those provided for in
items 8426.91.02
8426.99.02 Swivel cranes.
8426.99.99 Other (cranes and air cables ("blondines");
overhead travelling cranes, handling or
unloading frames, bridge cranes, straddle
carriers and straddle cranes).
8427.10.01 With load capacity up to 3,500 kilograms,
measured at 620 millimeters from the
frontal surface of the forks, without
battery or loader.
8427.20.01 With explosion or internal combustion
engine, with carrying capacity up to 7,000
kilograms, measured at 620 millimeters from
the frontal surface of the forks.
8428.40.99 Other (escalators and moving walkways).
8428.90.99 Other (machinery and apparatus for lifting,
loading, unloading or handling).
8429.11.01 Caterpillar type.
8429.19.01 Other (bulldozers and angledozers).
8429.20.01 Graders.
8429.30.01 Scrapers.
8429.40.01 Tamping machines.
8429.51.02 Front-end loader with hydraulic working,
wheel-type, with capacity equal or less
than 335 HP.
8429.51.03 Mechanical shovels, other than those
provided for in item 8429.51.01.
Annex 301.3
8429.51.99 Other (mechanical shovels, excavators,
loaders and front-end shovel loaders).
8429.52.02 Draglines or excavators, other than those
provided for in item 8429.52.01.
8429.52.99 Other (machinery with a 360 revolving
superstructure).
8429.59.01 Trenchers.
8429.59.02 Draglines, with dragging load capacity up
to 4,000 kilograms.
8429.59.03 Draglines or excavators, other than those
provided for in item 8429.59.04.
8429.59.99 Other (self-propelled bulldozers,
angledozers, graders, scrapers, mechanical
shovels, excavators, loaders, shovel
loaders, tamping machines and road
rollers).
8430.31.01 Rotation and/or percussion perforators.
8430.31.99 Other (self-propelled cutters, pullers or
wrenchers and machines to open tunnels or
galleries).
8430.39.01 Boring shields.
8430.39.99 Other (not self-propelled cutters, pullers
or wrenchers and machines to open tunnels
or galleries).
8430.41.01 Boring or sinking machinery, other than
those provided for in item 8430.41.02.
8430.41.99 Other (self-propelled probing or boring
machinery).
8430.49.99 Other (not self-propelled probing or boring
machinery).
8430.50.01 Excavators, frontal carriers with hydraulic
mechanism, with capacity equal to or less
than 335 h.p.
Annex 301.3
8430.50.02 Scrapers.
8430.50.99 Other (self-propelled machinery and
apparatus).
8430.61.01 Graders (pushers).
8430.61.02 Tamping or compacting rollers.
8430.61.99 Other (machinery and apparatus, not self-
propelled).
8430.62.01 Scarification machine (ripping machine).
8430.69.01 Scrapers, not self-propelled.
8430.69.02 Trencher machine, other than those provided
for in item 8430.69.03.
8430.69.99 Other (trenchers, other than those provided
for in items 8430.69.01, 8430.69.02 and
8430.69.03).
8452.10.01 Sewing machines of the household type.
8452.21.04 Industrial machines, other than those
provided for in items 8452.21.02,
8452.21.03 and 8452.21.05.
8452.21.99 Other (automatic sewing machines).
8452.29.05 Machines or heads for industrial use, with
straight seams, straight needle and a
rotating and oscillating thread linking
device, double backstitching, flat bed and
transportation only.
8452.29.06 Industrial machines, other than those
provided for in items 8452.29.01,
8452.29.03 and 8452.29.05.
8452.29.99 Other (non-automatic sewing machines).
8452.90.99 Other (parts of sewing machines).
8471.10.01 Analogue or hybrid automatic data
processing machines.
Annex 301.3
8471.20.01 Digital or numerical automatic data
processing machines, containing in the same
housing at least a central processing unit
and an input and output unit.
8471.91.01 Numerical or digital processing units, even
if presented with the rest of the system,
including one or two of the following types
of units contained in the same housing:
storage units, input units, output unit.
8471.92.99 Other (input or output units whether or not
entered with the rest of a system and
whether or not containing storage units in
the same housing).
8471.93.01 Storage units, including the rest of the
system.
8471.99.01 Other (automatic data processing machines
and units thereof).
8474.20.01 Crushing and grinding with two or more
cylinders.
8474.20.02 Crushing jawbone and grinding millstone.
8474.20.03 Blade crushing machines.
8474.20.04 Crushing machines of balls or bars.
8474.20.05 Drawer cone crushing, with diameter no more
than 1200 millimeters.
8474.20.06 Grinding hammer percussion.
8474.20.99 Other (machines and apparatus to break,
crush or grind or pulverize dirt, stones
and other solid mineral materials).
8474.39.99 Other (mixing machines).
8474.80.99 Other (machines and apparatus to classify,
sieve, separate, break, crush, grind, mix,
or knead dirt, stones and other mineral
materials).
8475.10.01 Machines for assembling lamps.
Annex 301.3
8477.10.01 Injection-molding machines for
thermoplastic materials, up to 5 kg
capacity for one molding model.
8701.30.01 Caterpillar tractors with an engine power
at the flywheel equal to or above 105 h.p.,
but less than 380 h.p. measured at 1,900
rpm, including pushing blade.
8701.90.02 Railroad tractors, on tires with mechanical
mechanism for pavement.
8711.10.01 Motorcycles fitted with an auxiliary motor
with reciprocating piston engine not
exceeding 50 cm3.
8711.20.01 Motorcycles fitted with an auxiliary motor
with reciprocating piston engine over 50
cm3 but not over 250 cm3.
8711.30.01 Motorcycles fitted with an auxiliary motor
with reciprocating piston engine over 250
cm3 but not over 500 cm3.
8711.40.01 Motorcycles fitted with an auxiliary motor
with reciprocating piston engine over 500
cm3 but less than 550 cm3.
8711.90.99 Other (motorcycles, cycles fitted with an
auxiliary motor and sidecars without a
reciprocating piston engine, and that are
not sidecars for motorcycles and
velocipedes of any kind presented
separately).
8712.00.02 Bicycles, other than of the type for
racing.
8712.00.99 Other (cycles, not motorized, except
bicycles, and tricycles for the transport
of merchandise).
8716.10.01 Trailers and semi-trailers for housing and
camping, of the caravan type.
8716.31.02 Steel-tank type tankers, including
cryogenic or hoppers.
Annex 301.3
8716.31.99 Other (tankers except of the steel-tank
type, and of the thermal type for the
transportation of milk).
8716.39.01 Trailers or semi-trailers of the platform
type, with or without stakes, including
those accepted for the transport of boxes
or metal baskets for cans and bottles or
container carriers, or low beds, except
those with hydraulic or pneumatic
suspension and collapsible goose-neck.
8716.39.02 Trailers or semi-trailers for the transport
of vehicles.
8716.39.04 Trailers of the modular-platform type with
directional axis, including transporter
bridge section, hydraulic couplings or
goose-neck or motor for hydraulic
conditioning of the equipment.
8716.39.05 Semi-trailers of the low-bed type, with
pneumatic or hydraulic suspension and
collapsible goose-neck.
8716.39.06 Trailers and semi-trailers of the
closed-box type, including refrigerated.
8716.39.07 Trailers and semi-trailers of the steel-
tank type, including cryogenic and hoppers.
8716.39.99 Other (trailers and semi-trailers for the
transportation of goods, other than those
provided for in items 8716.39.01,
8716.39.02, 8716.39.04, 8716.39.05,
8716.39.06 and 8716.39.07, and that are not
vehicles for the transport of goods, with
solid rubber wheels, nor double-decker
trailers or semitrailers of the type
recognized as used exclusively for hauling
cattle.
8716.40.01 Other trailers and semi-trailers not used
for transporting goods.
8716.80.99 Other (non-automotive vehicles except
trailers or semi-trailers, wheel barrows
Annex 301.3
and hand-carts, or wheel barrows of
hydraulic operation).
(b) Notwithstanding subparagraph (a), Mexico shall not
prohibit or restrict the importation, on a temporary
basis, of used goods provided for in the items set
out in subparagraph (c) for the provision of a cross-
border service subject to Chapter Twelve (Cross-
Border Trade in Services) or the performance of a
contract subject to Chapter Ten (Government
Procurement), provided that the imported goods
(i) are necessary to the provision of the cross-
border service or the performance of the
contract awarded to a supplier of another Party,
(ii) are used solely by or under the supervision of
the service provider or the supplier performing
the contract,
(iii) are not sold, leased or loaned while in the
territory of Mexico,
(iv) are imported in no greater quantity than is
necessary for the provision of the service or
the performance of the contract,
(v) are re-exported promptly on completion of the
service or the contract, and
(vi) comply with other applicable requirements on the
importation of such goods to the extent they are
not inconsistent with this Agreement.
(c) Subparagraph (b) applies to used goods provided for
in the following items:
Item Description
8413.11.01 Distributors fitted with a measuring device
even if it includes a totalizing mechanism.
8413.40.01 Concrete pumps for liquids, not fitted with
a measuring device from 36 up to 60 m3/hr
capacity.
Annex 301.3
8426.12.01 Mobile portals on tires and straddle
carriers.
8426.19.01 Other (overhead travelling cranes, bridge
cranes and straddle carriers).
8426.30.01 Portal cranes.
8426.41.01 Cranes with hydraulically actuated rigid
jib, self-propelled with maximum capacity
above 9.9 tons and not exceeding 30 tons.
8426.41.02 Cranes with structural iron jib (lattice)
with mechanical working, self-propelled,
with unit weight up to 55 tons.
8426.41.99 Other (machinery and apparatus, self
propelled, on tires.)
8426.49.01 Cranes with structural iron jib (lattice)
with mechanical working, with unit weight
up to 55 tons.
8426.49.02 Cranes with hydraulically actuated rigid
jib, self-propelled, with load capacity
above 9.9 tons and not exceeding 30 tons.
8426.91.01 Cranes, other than those provided for in
items 8426.91.02, 8426.91.03 and
8426.91.04.
8426.99.01 Cranes, other than those provided for in
items 8426.91.02
8426.99.02 Swivel cranes.
8426.99.99 Other (cranes and air cables ("blondines");
overhead travelling cranes, handling or
unloading frames, bridge cranes, straddle
carriers and straddle cranes).
8427.10.01 With load capacity up to 3,500 kilograms,
measured at 620 millimeters from the
frontal surface of the forks, without
battery or loader.
8428.40.99 Other (escalators and moving walkways).
Annex 301.3
8428.90.99 Other (machinery and apparatus for lifting,
loading, unloading or handling).
8429.11.01 Caterpillar type.
8429.19.01 Other (bulldozers and angledozers).
8429.30.01 Scrapers.
8429.40.01 Tamping machines.
8429.51.02 Front-end loader with hydraulic working,
wheel-type, with capacity equal or less
than 335 HP.
8429.51.03 Mechanical shovels, other than those
provided for in item 8429.51.01.
8429.51.99 Other (mechanical shovels, excavators,
loaders and front-end shovel loaders).
8429.52.02 Draglines or excavators, other than those
provided for in item 8429.52.01.
8429.52.99 Other (machinery with a 360 revolving
superstructure).
8429.59.01 Trenchers.
8429.59.02 Draglines, with dragging load capacity up
to 4,000 kilograms.
8429.59.03 Draglines or excavators, other than those
provided for in item 8429.59.04.
8429.59.99 Other (self-propelled bulldozers,
angledozers, graders, scrapers, mechanical
shovels, excavators, loaders, shovel
loaders, tamping machines and road
rollers).
8430.31.01 Rotation and/or percussion perforators.
8430.31.99 Other (self-propelled cutters, pullers or
wrenchers and machines to open tunnels or
galleries).
8430.39.01 Boring shields.
Annex 301.3
8430.39.99 Other (not self-propelled cutters, pullers
or wrenchers and machines to open tunnels
or galleries).
8430.41.01 Boring or sinking machinery, other than
those provided for in item 8430.41.02.
8430.41.99 Other (self-propelled probing or boring
machinery).
8430.49.99 Other (not self-propelled probing or boring
machinery).
8430.50.01 Excavators, frontal loaders with hydraulic
mechanism, with capacity equal to or less
than 335 h.p.
8430.50.02 Scrapers.
8430.50.99 Other (self-propelled machinery and
apparatus).
8430.61.01 Graders (pushers).
8430.61.02 Tamping or compacting rollers.
8430.62.01 Scarification machine (ripping machine).
8430.69.01 Scrapers, not self-propelled.
8430.69.02 Trencher machine, other than those provided
for in item 8430.69.03.
8430.69.99 Other (trenchers, other than those provided
for in items 8430.69.01, 8430.69.02 and
8430.69.03).
8452.10.01 Sewing machines of the household type.
8452.21.04 Industrial machines, other than those
provided for in items 8452.21.02,
8452.21.03 and 8452.21.05.
8452.21.99 Other (automatic sewing machines).
8452.29.06 Industrial machines, other than those
provided for in items 8452.29.01,
8452.29.03 and 8452.29.05.
Annex 301.3
8452.29.99 Other (non-automatic sewing machines).
8452.90.99 Other (parts of sewing machines).
8471.10.01 Analogue or hybrid automatic data
processing machines.
8474.20.01 Crushing and grinding with two or more
cylinders.
8474.20.03 Blade crushing machines.
8474.20.04 Crushing machines of balls or bars.
8474.20.99 Other (machines and apparatus to break,
crush or grind or pulverize dirt, stones
and other solid mineral materials).
8474.39.99 Other (mixing machines).
8474.80.99 Other (machines and apparatus to classify,
sieve, separate, break, crush, grind, mix,
or knead dirt, stones and other mineral
materials).
8477.10.01 Injection-molding machines for
thermoplastic materials, up to 5 kg
capacity for one molding model.
8701.30.01 Caterpillar tractors with an engine power
at the flywheel equal to or above 105 h.p.,
but less than 380 h.p. measured at 1,900
rpm, including pushing blade.
Annex 301.3
Section C - U.S. Measures
1. Articles 301 and 309 shall not apply to controls by the
United States on the export of logs of all species.
2. Articles 301 and 309 shall not apply to:
(a) taxes on imported perfume containing distilled
spirits under existing provisions of section
5001(a)(3) and 5007(b)(2) of the Internal Revenue
Code of 1986, 26 U.S.C. 5001(a)(3), 5007(b)(2),
and
(b) measures under existing provisions of the Merchant
Marine Act of 1920, 46 App. U.S.C. 883; the
Passenger Vessel Act, 46 App. U.S.C. 289, 292, and
316; and 46 U.S.C. 12108,
to the extent that such measures were mandatory legislation at
the time of the United States' accession to the GATT and have
not been amended so as to decrease their conformity with the
GATT.
3. Articles 301 and 309 shall not apply to:
(a) the continuation or prompt renewal of a non-
conforming provision of any statute referred to in
paragraph 2; and
(b) the amendment to a non-conforming provision of any
statute referred to in paragraph 2 to the extent that
the amendment does not decrease the conformity of the
provision with Articles 301 and 309.
Annex 302.2
Tariff Elimination
1. Except as otherwise provided in a Party's Schedule
attached to this Annex, the following staging categories apply
to the elimination of customs duties by each Party pursuant to
Article 302(2):
(a) duties on goods provided for in the items in staging
category A in a Party's Schedule shall be eliminated
entirely and such goods shall be duty-free, effective
January 1, 1994;
(b) duties on goods provided for in the items in staging
category B in a Party's Schedule shall be removed in
five equal annual stages beginning on January 1,
1994, and such goods shall be duty-free, effective
January 1, 1998;
(c) duties on goods provided for in the items in staging
category C in a Party's Schedule shall be removed in
10 equal annual stages beginning on January 1, 1994,
and such goods shall be duty-free, effective January
1, 2003;
(d) duties on goods provided for in the items in staging
category C+ in a Party's Schedule shall be removed in
15 equal annual stages beginning on January 1, 1994,
and such goods shall be duty-free, effective January
1, 2008; and
(e) goods provided for in the items in staging category D
in a Party's Schedule shall continue to receive duty-
free treatment.
2. The base rate of customs duty and staging category for
determining the interim rate of customs duty at each stage of
reduction for an item are indicated for the item in each
Party's Schedule attached to this Annex. These rates generally
reflect the rate of duty in effect on July 1, 1991, including
rates under the U.S. Generalized System of Preferences and the
General Preferential Tariff of Canada.
3. For the purpose of the elimination of customs duties in
accordance with Article 302, interim staged rates shall be
rounded down, except as set out in each Party's Schedule
Annex 302.2
attached to this Annex, at least to the nearest tenth of a
percentage point or, if the rate of duty is expressed in
monetary units, at least to the nearest .001 of the official
monetary unit of the Party.
4. Canada shall apply a rate of customs duty no higher than
the rate applicable under the staging category set out for an
item in Annex 401.2, as amended, of the Canada - United States
Free Trade Agreement which Annex is hereby incorporated into
and made a part of this Agreement, to an originating good
provided that:
(a) notwithstanding any provision in Chapter Four, in
determining whether such good is an originating good,
operations performed in or materials obtained from
Mexico are considered as if they were performed in or
obtained from a non-Party; and
(b) any processing that occurs in Mexico after the good
would qualify as an originating good in accordance
with subparagraph (a) does not increase the
transaction value of the good by greater than seven
percent.
5. Canada shall apply a rate of customs duty no higher than
the rate applicable under the staging category set out for an
item in Column I of its Schedule to this Annex to an
originating good provided that:
(a) notwithstanding any provision in Chapter Four, in
determining whether such good is an originating good,
operations performed in or materials obtained from
the United States are considered as if they were
performed in or obtained from a non-Party; and
(b) any processing that occurs in the United States after
the good would qualify as an originating good in
accordance with subparagraph (a) does not increase
the transaction value of the good by greater than
seven percent.
6. Canada shall apply to an originating good to which neither
paragraph 4 nor 5 applies a rate of customs duty no higher than
the rate indicated for its corresponding item in Column II of
its Schedule to this Annex. The rate of customs duty in Column
II for such good shall be:
Annex 302.2
(a) in each year of the staging category indicated in
Column I, the higher of
(i) the rate of customs duty under the staging
category set out for the item in Annex 401.2, as
amended, of the Canada - United States Free
Trade Agreement, and
(ii) the General Preferential Tariff rate of customs
duty for the item applied on July 1, 1991,
reduced in accordance with the applicable
staging category set out for the item in Column
I of its Schedule to this Annex; or
(b) where specified in Column II of its Schedule to this
Annex, the most-favored-nation rate of customs duty
for the item applied on July 1, 1991, reduced in
accordance with the applicable staging category set
out for the item in Column I of its Schedule to this
Annex, or reduced in accordance with the applicable
staging category otherwise indicated.
7. Paragraphs 4 through 6 and 10 through 13 shall not apply
to textile and apparel goods identified in Appendix 1.1 of
Annex 300-B (Textiles and Apparel Goods).
8. Paragraphs 4, 5 and 6 shall not apply to agricultural
goods as defined in Article 708. For these goods, Canada shall
apply the rate applicable under the staging category set out
for an item in Annex 401.2, as amended, of the Canada - United
States Free Trade Agreement to an originating good when the
good qualifies to be marked as a good of the United States
pursuant to Annex 311, without regard to whether the good is
marked. When an originating good qualifies to be marked as a
good of Mexico, pursuant to Annex 311, whether or not the good
is marked, Canada shall apply the rate applicable under the
staging category set out for an item in Column I of its
Schedule to this Annex.
9. As between the United States and Canada, Articles 401(7)
and 401(8) of the Canada - United States Free Trade Agreement
are hereby incorporated and made a part of this Annex. The
term "goods originating in the territory of the United States
of America" in Article 401(7) of that agreement shall be
determined in accordance with paragraph 4 of this Annex. The
term "goods originating in the territory of Canada" in Article
401(8) of that agreement shall be determined in accordance with
paragraph 12 of this Annex.
Annex 302.2
10. Mexico shall apply a rate of customs duty no higher than
the rate applicable under the staging category set out for an
item in Column I of its Schedule to this Annex to an
originating good when the good qualifies to be marked as a good
of the United States, pursuant to Annex 311, without regard to
whether the good is marked.
11. Mexico shall apply a rate of customs duty no higher than
the rate applicable under the staging category set out for an
item in Column II of its Schedule to this Annex to an
originating good when the good qualifies to be marked as a good
of Canada, pursuant to Annex 311, without regard to whether the
good is marked.
12. The United States shall apply a rate of customs duty no
higher than the rate applicable under the staging category set
out for an item in Annex 401.2, as amended, of the Canada -
United States Free Trade Agreement to an originating good when
the good qualifies to be marked as a good of Canada pursuant to
Annex 311, without regard to whether the good is marked.
13. The United States shall apply a rate of customs duty no
higher than the rate applicable under the staging category set
out for an item in its Schedule to this Annex to an originating
good when the good qualifies to be marked as a good of Mexico
pursuant to Annex 311, whether or not the good is marked.
Annex 302.2
Schedule of Canada
(TARIFF SCHEDULE TO BE ATTACHED)
Schedule of Mexico
(TARIFF SCHEDULE TO BE ATTACHED)
Schedule of the United States
(TARIFF SCHEDULE TO BE ATTACHED)
Annex 303.6
Goods Not Subject to Article 303
1. For exports from the territory of the United States to the
territory of Canada or Mexico, a good provided for in U.S.
tariff item 1701.11.02 that is imported into the territory of
the United States and used as a material in the production of,
or substituted by an identical or similar good used as a
material in the production of, a good provided for in Canadian
tariff item 1701.99.00 or Mexican tariff items 1701.99.01 and
1701.99.99 (refined sugar).
2. For trade between Canada and the United States:
(a) imported citrus products;
(b) an imported good used as a material in the production
of, or substituted by an identical or similar good
used as a material in the production of, a good
provided for in U.S. items 5811.00.20 (quilted cotton
piece goods), 5811.00.30 (quilted man-made piece
goods) or 6307.90.99 (furniture moving pads), or
Canadian items 5811.00.10 (quilted cotton piece
goods), 5811.00.20 (quilted man-made piece goods) or
6307.90.30 (furniture moving pads), that are subject
to the most-favored-nation rate of duty when exported
to the territory of the other Party; and
(c) an imported good used as a material in the production
of, or substituted by an identical or similar good
used as a material in the production of, apparel that
is subject to the most-favored-nation rate of duty
when exported to the territory of the other Party.
Annex 303.7
Effective Dates for the Application of Article 303
Section A - Canada
For Canada, Article 303 shall apply to a good imported into the
territory of Canada that is:
(a) subsequently exported to the territory of the United
States on or after January 1, 1996, or subsequently
exported to the territory of Mexico on or after
January 1, 2001;
(b) used as a material in the production of another good
that is subsequently exported to the territory of the
United States on or after January 1, 1996, or used as
a material in the production of another good that is
subsequently exported to the territory of Mexico on
or after January 1, 2001; or
(c) substituted by an identical or similar good used as a
material in the production of another good that is
subsequently exported to the territory of the United
States on or after January 1, 1996, or substituted by
an identical or similar good used as a material in
the production of another good that is subsequently
exported to the territory of Mexico on or after
January 1, 2001.
Section B - Mexico
For Mexico, Article 303 shall apply to a good imported into the
territory of Mexico that is:
(a) subsequently exported to the territory of another
Party on or after January 1, 2001;
(b) used as a material in the production of another good
that is subsequently exported to the territory of
another Party on or after January 1, 2001; or
(c) substituted by an identical or similar good used as a
material in the production of another good that is
subsequently exported to the territory of another
Party on or after January 1, 2001.
Annex 303.7
Section C - United States
For the United States, Article 303 shall apply to a good
imported into the territory of the United States that is:
(a) subsequently exported to the territory of Canada on
or after January 1, 1996, or subsequently exported to
the territory of Mexico on or after January 1, 2001;
(b) used as a material in the production of another good
that is subsequently exported to the territory of
Canada on or after January 1, 1996, or used as a
material in the production of another good that is
subsequently exported to the territory of Mexico on
or after January 1, 2001; or
(c) substituted by an identical or similar good used as a
material in the production of another good
subsequently exported to the territory of Canada on
or after January 1, 1996, or substituted by an
identical or similar good used as a material in the
production of another good subsequently exported to
the territory of Mexico on or after January 1, 2001.
Annex 303.8
Exception to Article 303(8)
for Certain Color Cathode-Ray Television Picture Tubes
Mexico
Mexico may refund customs duties paid, or waive or reduce the
amount of customs duties owed, on a good provided for in item
8540.11.aa (color cathode-ray television picture tubes,
including video monitor cathode-ray tubes, with a diagonal
exceeding 14 inches) or 8540.11.cc (color cathode-ray
television picture tubes for high definition television, with a
diagonal exceeding 14 inches) for a person who, during the
period July 1, 1991 through June 30, 1992, imported into its
territory no fewer than 20,000 units of such good that would
not have been considered to be an originating good had this
Agreement been in force during that period, where the good is:
(a) subsequently exported from the territory of Mexico to
the territory of the United States, or is used as a
material in the production of another good that is
subsequently exported from the territory of Mexico to
the territory of the United States, or is substituted
by an identical or similar good used as a material in
the production of another good that is subsequently
exported to the territory of the United States, in an
amount, for all such persons combined, no greater
than
(i) 1,200,000 units in 1994,
(ii) 1,000,000 units in 1995,
(iii) 800,000 units in 1996,
(iv) 600,000 units in 1997,
(v) 400,000 units in 1998,
(vi) 200,000 units in 1999, and
(vii) zero units in 2000 and thereafter,
provided that the number of units of the good on
which such customs duties may be refunded, waived or
reduced in any year shall be reduced, with respect to
Annex 303.8
that year, by the number of units of such good that
qualifies as an originating good during the year
immediately preceding that year, considering
operations performed in, or materials obtained from,
the territories of Canada and the United States as if
they were performed in, or obtained from, a non-
Party; or
(b) subsequently exported from the territory of Mexico to
the territory of Canada, or is used as a material in
the production of another good that is subsequently
exported from the territory of Mexico to the
territory of Canada, or is substituted by an
identical or similar good used as a material in the
production of another good that is subsequently
exported to the territory of Canada, for all such
persons combined, in an amount no greater than
(i) 75,000 units in 1994,
(ii) 50,000 units in 1995, and
(iii) zero units in 1996 and thereafter.
Annex 304.1
Exceptions for Existing Waiver Measures
Article 304(1) shall not apply in respect of existing
Mexican waivers of customs duties, except that Mexico shall
not:
(a) increase the ratio of customs duties waived to
customs duties owed relative to the performance
required under any such waiver; or
(b) add any type of imported good to those qualifying on
July 1, 1991, in respect of any waiver of customs
duties in effect on that date.
Annex 304.2
Continuation of Existing Waivers of Customs Duties
For purposes of Article 304(2):
(a) as between Canada and Mexico, Canada may condition on
the fulfillment of a performance requirement the
waiver of customs duties under any measure in effect
on or before January 1, 1989, on any goods entered or
withdrawn from warehouse for consumption before
January 1, 1998;
(b) as between Canada and the United States, Article 405
of the Canada - United States Free Trade Agreement is
hereby incorporated and made a part of this Annex
solely with respect to measures adopted by Canada or
the United States prior to the date of entry into
force of this Agreement;
(c) Mexico may condition on the fulfillment of a
performance requirement the waiver of customs duties
under any measure in effect on July 1, 1991, on any
goods entered or withdrawn from warehouse for
consumption before January 1, 2001; and
(d) Canada may grant waivers of customs duties as set out
in Annex 300-A (Trade and Investment in the
Automotive Sector).
Annex 307.1
Goods Re-Entered after Repair or Alteration
Section A - Canada
Canada may impose customs duties on goods, regardless of
their origin, that re-enter its territory after such goods have
been exported from its territory to the territory of another
Party for repair or alteration as follows:
(a) for goods set out in Section D that re-enter its
territory from the territory of Mexico, Canada shall
apply to the value of the repair or alteration of
such goods the rate of customs duty for such goods
applicable under its Schedule to Annex 302.2;
(b) for goods other than those set out in Section D that
re-enter its territory from the territory of the
United States or Mexico, other than goods repaired or
altered pursuant to a warranty, Canada shall apply to
the value of the repair or alteration of such goods
the rate of customs duty for such goods applicable
under the Tariff Schedule of Canada attached to Annex
401.2 of the Canada - United States Free Trade
Agreement, as incorporated into Annex 302.2 of this
Agreement; and
(c) for goods set out in Section D that re-enter its
territory from the territory of the United States,
Canada shall apply to the value of the repair or
alteration of such goods the rate of customs duty for
such goods applicable under its Schedule attached to
Annex 401.2 of the Canada - United States Free Trade
Agreement, as incorporated into Annex 302.2 of this
Agreement.
Section B - Mexico
Mexico may impose customs duties on goods set out in
Section D, regardless of their origin, that re-enter its
territory after such goods have been exported from its
territory to the territory of another Party for repair or
alteration, by applying to the value of the repair or
alteration of those goods the rate of customs duty for such
Annex 307.1
goods that would apply if such goods were included in staging
category B in Mexico's Schedule to Annex 302.2.
Section C - United States
1. The United States may impose customs duties on:
(a) goods set out in Section D, or
(b) goods that are not set out in Section D and that are
not repaired or altered pursuant to a warranty,
regardless of their origin, that re-enter its territory after
such goods have been exported from its territory to the
territory of Canada for repair or alteration, by applying to
the value of the repair or alteration of such goods the rate of
customs duty applicable under the Canada - United States Free
Trade Agreement, as incorporated into Annex 302.2 of this
Agreement.
2. The United States may impose customs duties on goods set
out in Section D, regardless of their origin, that re-enter its
territory after such goods have been exported from its
territory to the territory of Mexico for repair or alteration,
by applying to the value of the repair or alteration of such
goods a rate of customs duty of 50 percent reduced in five
equal annual stages beginning on January 1, 1994, and the value
of such repair or alteration shall be duty-free on January 1,
1998.
Section D - List of Goods
Any vessel, including the following goods, documented by a
Party under its law to engage in foreign or coastwise trade, or
a vessel intended to be employed in such trade:
(a) cruise ships, excursion boats, ferry-boats, cargo
ships, barges and similar vessels for the transport
of persons or goods, including
(i) tankers,
(ii) refrigerated vessels, other than tankers, and
Annex 307.1
(iii) other vessels for the transport of goods
and other vessels for the transport of both
persons and goods, including open vessels;
(b) fishing vessels, including factory ships and other
vessels for processing or preserving fishery products
of a registered length not exceeding 30.5m;
(c) light-vessels, fire-floats, dredgers, floating
cranes, and other vessels the navigability of which
is subsidiary to their main function, floating docks,
floating or submersible drilling or production
platforms; and drilling ships, drilling barges and
floating drilling rigs; and
(d) tugboats.
Annex 307.3
Repair and Rebuilding of Vessels
United States
For the purpose of increasing transparency regarding the
types of repairs that may be performed in shipyards outside the
territory of the United States that do not result in any loss
of privileges for such vessel to:
(a) remain eligible to engage in coastwise trade or to
access U.S. fisheries,
(b) transport U.S. government cargo, or
(c) participate in U.S. assistance programs, including
the "operating difference subsidy,"
the United States shall,
(d) provide written clarification no later than July 1,
1993, to the other Parties of current U.S. Customs
and Coast Guard practices that constitute, and
differentiate between, the repair and the rebuilding
of vessels, including clarifications with respect to
"jumboizing", vessel conversions and casualty
repairs, and
(e) begin a process, no later than the date of entry into
force of this Agreement, to define the terms
"repairs" and "rebuilding" under U.S. maritime law,
including the Merchant Marine Act of 1920, 46 App.
U.S.C. 883, and the Merchant Marine Act of 1936, 46
App. U.S.C. 1171, 1176, 1241 and 1241(o).
Annex 308.1
Most-Favored-Nation Rates of Duty on
Certain Automatic Data Processing Goods and Their Parts
Section A - General Provisions
1. Each Party shall reduce its most-favored-nation rate of
duty applicable to a good provided for under the tariff
provisions set out in Tables 308.1.1 and 308.1.2 in Section B
to the rate set out therein, to the lowest rate agreed by any
Party in the Uruguay Round of Multilateral Trade Negotiations,
or to such reduced rate as the Parties may agree, in accordance
with the schedule set out in Section B, or with such
accelerated schedule as the Parties may agree.
2. Notwithstanding Chapter Four (Rules of Origin), when the
most-favored-nation rate of duty applicable to a good provided
for under the tariff provisions set out in Table 308.1.1 in
Section B conforms with the rate established under paragraph 1,
each Party shall consider the good, when imported into its
territory from the territory of another Party, to be an
originating good.
3. A Party may reduce in advance of the schedule set out in
Table 308.1.1 or Table 308.1.2 in Section B, or of such
accelerated schedule as the Parties may agree, its most-
favored-nation rate of duty applicable to any good provided for
under the tariff provisions set out therein, to the lowest rate
agreed by any Party in the Uruguay Round of Multilateral Trade
Negotiations, or the rate set out in Table 308.1.1 or 308.1.2,
or to such reduced rate as the Parties may agree.
4. For greater certainty, most-favored-nation rate of duty
does not include any other concessionary rate of duty.
Annex 308.1
___________
Section B - Rates of Duty and Schedule for Reduction
Table 308.1.1
Tariff Rate
Sch
edu
le1
Automatic Data Processing
Machines (ADP):
8471.10 3.9% S
8471.20 3.9% S
Digital Processing Units:
8471.91 3.9% S
Input or Output Units:
Combined Input/Output Units:
____________________________
Canada:
8471.92.10 3.7% S
Mexico:
8471.92.09 3.7% S
United States:
8471.92.10 3.7% S
Display Units: ______________
Canada:
8471.92.32 3.7% S
____________________
1 R on the date of entry into force of this Agreement
S in five equal annual stages commencing January 1, 1999.
Annex 308.1
___________
8471.92.33 Free S
8471.92.34 3.7% S
8471.92.39 3.7% S
Mexico:
8471.92.10 3.7% S
8471.92.11 Free S
United States:
8471.92.30 Free S
8471.92.40.75 3.7% S
8471.92.40.85 3.7% S
Other Input or Output Units:
____________________________
Canada:
8471.92.40 3.7% S
8471.92.50 Free S
8471.92.90 Free S
Mexico:
8471.92.12 3.7% S
8471.92.99 Free S
United States:
8471.92.20 Free S
8471.92.80 Free S
8471.92.90.20 Free S
8471.92.90.40 3.7% S
8471.92.90.60 Free S
8471.92.90.80 Free S
Storage Units
8471.93 Free S
Other Units of Automatic Data Processing
Machines
8471.99 Free S
Annex 308.1
___________
Parts of Computers
8473.30 Free R
Computer Power Supplies
Canada:
8504.40.40 Free S
8504.90.80 Free S
Mexico:
8504.40.12 Free S
8504.90.08 Free S
United States:
8504.40.00A Free S
8504.40.00B Free S
8504.90.00B Free S
Annex 308.1
Table 308.1.2
Tariff Rate
Schedule2
Metal Oxide Varistors:
Canada:
8533.40.10 Free R
Mexico:
8533.40.07 Free R
United States:
8533.40.00A Free R
Diodes, Transistors and Similar
Semiconductor Devices; Photosensitive
Semiconductor Devices; Light Emitting
Diodes; Mounted Piezo-electric Crystals
8541.10 Free R
8541.21 Free R
8541.29 Free R
8541.30 Free R
8541.50 Free R
8541.60 Free R
8541.90 Free R
Canada:
8541.40 Free R
Mexico:
8541.40 Free R
____________________
2 R on the date of entry of this Agreement
S in five equal annual stages commencing January 1, 1999.
Annex 308.1
United States:
8541.40.20 Free S
8541.40.60 Free R
8541.40.70 Free R
8541.40.80 Free R
8541.40.95 Free R
Electronic Integrated Circuits
and Microassemblies
8542 Free R
Annex 308.2
Most-Favored-Nation Rates of Duty
on Certain Color Cathode-Ray Television Picture Tubes
1. Any Party considering the reduction of its most-favored-
nation rate of customs duty for goods provided for in item
8540.11.aa (color cathode-ray television picture tubes,
including video monitor cathode-ray tubes, with a diagonal
exceeding 14 inches) or 8540.11.cc (color cathode-ray
television picture tubes for high definition television, with a
diagonal exceeding 14 inches) during the first 10 years after
the date of entry into force of this Agreement shall consult
with the other Parties in advance of such reduction.
2. If any other Party objects in writing to such reduction,
other than a reduction in the Uruguay Round of Multilateral
Trade Negotiations, and the Party proceeds with the reduction,
any objecting Party may raise its applicable rate of duty on
originating goods provided for in the corresponding tariff item
set out in its Schedule to Annex 302.2, up to the applicable
rate of duty as if such good had been placed in staging
category C for purpose of tariff elimination.
Annex 308.3
Most-Favored-Nation Duty-Free
Treatment of Local Area Network Apparatus
To facilitate the operation of Article 308(3), the Parties
shall consult regarding the tariff classification of local area
network apparatus and shall endeavor to agree, no later than
January 1, 1994, on the classification of such goods in each
Party's tariff schedule.
Annex 310.1
Existing Customs User Fees
Section A - Mexico
Mexico shall not increase its customs processing fee
("derechos de tr mite aduanero") on originating goods, and
shall eliminate such fee on originating goods by June 30, 1999.
Section B - United States
1. The United States shall not increase its merchandise
processing fee and shall eliminate such fee according to the
schedule set out in Article 403 of the Canada - United States
Free Trade Agreement on originating goods where those goods
qualify to be marked as goods of Canada pursuant to Annex 311,
without regard to whether the goods are marked.
2. The United States shall not increase its merchandise
processing fee and shall eliminate such fee by June 30, 1999,
on originating goods where those goods qualify to be marked as
goods of Mexico pursuant to Annex 311, without regard to
whether the goods are marked.
Annex 311
Country of Origin Marking
1. The Parties shall establish by January 1, 1994, rules for
determining whether a good is a good of a Party ("Marking
Rules") for purposes of this Annex, Annex 300-B and Annex
302.2, and for such other purposes as the Parties may agree.
2. Each Party may require that a good of another Party, as
determined in accordance with the Marking Rules, bear a country
of origin marking, when imported into its territory, that
indicates to the ultimate purchaser of that good the name of
its country of origin.
3. Each Party shall permit the country of origin marking of a
good of another Party to be indicated in English, French or
Spanish, except that a Party may, as part of its general
consumer information measures, require that an imported good be
marked with its country of origin in the same manner as
prescribed for goods of that Party.
4. Each Party shall, in adopting, maintaining and applying
any measure relating to country of origin marking, minimize the
difficulties, costs and inconveniences that the measure may
cause to the commerce and industry of the other Parties.
5. Each Party shall:
(a) accept any reasonable method of marking of a good of
another Party, including the use of stickers, labels,
tags or paint, that ensures that the marking is
conspicuous, legible and sufficiently permanent;
(b) exempt from a country of origin marking requirement a
good of another Party that
(i) is incapable of being marked,
(ii) cannot be marked prior to exportation to the
territory of another Party without causing
injury to the goods,
(iii) cannot be marked except at a cost that is
substantial in relation to its customs
value so as to discourage its exportation
to the territory of the Party,
Annex 311
(iv) cannot be marked without materially impairing
its function or substantially detracting from
its appearance,
(v) is in a container that is marked in a manner
that will reasonably indicate the good's origin
to the ultimate purchaser,
(vi) is a crude substance,
(vii) is imported for use by the importer and is
not intended for sale in the form in which
it was imported,
(viii) is to undergo production in the territory
of the importing Party by the importer, or
on its behalf, in a manner that would
result in the good becoming a good of the
importing Party under the Marking Rules,
(ix) by reason of its character, or the circumstances
of its importation, the ultimate purchaser would
reasonably know its country of origin even
though it is not marked,
(x) was produced more than 20 years prior to its
importation,
(xi) was imported without the required marking and
cannot be marked after its importation except at
a cost that would be substantial in relation to
its customs value, provided that the failure to
mark the good before importation was not for the
purpose of avoiding compliance with the
requirement,
(xii) for purposes of temporary duty-free
admission, is in transit or in bond or
otherwise under customs administration
control,
(xiii) is an original work of art, or
(xiv) is provided for in subheading 6904.10, or
heading 8541 or 8542.
6. Except for a good described in subparagraphs 5(b)(vi),
(vii), (viii), (ix), (x), (xii), (xiii) and (xiv), a Party may
Annex 311
provide that, wherever a good is exempted under subparagraph
5(b), its outermost usual container shall be marked so as to
indicate the country of origin of the good it contains.
7. Each Party shall provide that:
(a) a usual container imported empty, whether or not
disposable, shall not be required to be marked with
its own country of origin, but the container in which
it is imported may be required to be marked with the
country of origin of its contents; and
(b) a usual container imported filled, whether or not
disposable,
(i) shall not be required to be marked with its own
country of origin, but
(ii) may be required to be marked with the country of
origin of its contents, unless the contents are
marked with their country of origin and the
container can be readily opened for inspection
of the contents, or the marking of the contents
is clearly visible through the container.
8. Each Party shall, wherever administratively practicable,
permit an importer to mark a good of a Party subsequent to
importation but prior to release of the good from customs
control or custody, unless there have been repeated violations
of the country of origin marking requirements of the Party by
the same importer and that importer has been previously
notified in writing that such good is required to be marked
prior to importation.
9. Each Party shall provide that, except with respect to
importers that have been notified under paragraph 8, no special
duty or penalty shall be imposed for failure to comply with
country of origin marking requirements of that Party, unless
the good is removed from customs custody or control without
being properly marked, or a deceptive marking has been used.
10. The Parties shall cooperate and consult on matters related
to this Annex, including additional exemptions from a country
of origin marking requirement, in accordance with Article 513
(Customs Procedures - Working Group and Customs Subgroup).
11. For purposes of this Annex:
Annex 311
conspicuous means capable of being easily seen with normal
handling of the good or container;
customs value means the value of a good for purposes of levying
duties of customs on an imported good;
legible means capable of being easily read;
sufficiently permanent means capable of remaining in place
until the good reaches the ultimate purchaser, unless
deliberately removed;
the form in which it was imported means the condition of the
good before it has undergone one of the changes in tariff
classification described in the Marking Rules;
ultimate purchaser means the last person in the territory of an
importing Party that purchases the good in the form in which it
was imported; such purchaser need not be the last person that
will use the good; and
usual container means the container in which a good will
ordinarily reach its ultimate purchaser.
Annex 312.2
Wine and Distilled Spirits
Section A - Canada and the United States
As between Canada and the United States, any measure
related to the internal sale and distribution of wine and
distilled spirits, other than a measure covered by Article
312(1) or 313, shall be governed under this Agreement
exclusively in accordance with the relevant provisions of the
Canada - United States Free Trade Agreement, which for this
purpose are hereby incorporated into and made a part of this
Agreement.
Section B - Canada and Mexico
As between Canada and Mexico:
1. Except as provided in paragraphs 3 through 6, in respect
of any measure related to the internal sale and distribution of
wine and distilled spirits, Article 301 shall not apply to:
(a) a non-conforming provision of any existing measure;
(b) the continuation or prompt renewal of a non-
conforming provision of any existing measure; or
(c) an amendment to a non-conforming provision of any
existing measure to the extent that the amendment
does not decrease its conformity with Article 301.
2. The Party asserting that paragraph 1 applies to one of its
measures shall have the burden of establishing the validity of
such assertion.
3. (a) Any measure related to the listing of wine and
distilled spirits of the other Party shall:
(i) conform with Article 301,
(ii) be transparent, non-discriminatory and provide
for prompt decision on any listing application,
prompt written notification of such decision to
the applicant and, in the case of a negative
Annex 312.2
decision, provide for a statement of the reason
for refusal,
(iii) establish administrative appeal procedures
for listing decisions that provide for
prompt, fair and objective rulings,
(iv) be based on normal commercial considerations,
(v) not create disguised barriers to trade, and
(vi) be published and made generally available to
persons of the other Party.
(b) Notwithstanding paragraph 3(a) and Article 301, and
provided that listing measures of British Columbia
otherwise conform with paragraph 3(a) and Article
301, automatic listing measures in the province of
British Columbia may be maintained provided they
apply only to existing estate wineries producing less
than 30,000 gallons of wine annually and meeting the
existing content rule.
4. (a) Where the distributor is a public entity, the entity
may charge the actual cost-of-service differential
between wine or distilled spirits of the other Party
and domestic wine or distilled spirits. Any such
differential shall not exceed the actual amount by
which the audited cost of service for the wine or
distilled spirits of the exporting Party exceeds the
audited cost of service for the wine or distilled
spirits of the importing Party.
(b) Notwithstanding Article 301, Article I (Definitions)
except for the definition of "distilled spirits",
Article IV.3 (Wine), and Annexes A, B, and C, of the
Agreement between Canada and the European Economic
Community concerning Trade and Commerce in Alcoholic
Beverages, dated February 28, 1989, shall apply with
such changes as the circumstances may require.
(c) All discriminatory mark-ups on distilled spirits
shall be eliminated immediately on the date of entry
into force of this Agreement. Cost-of-service
differential mark-ups as described in subparagraph
(a) shall be permitted.
Annex 312.2
(d) Any other discriminatory pricing measure shall be
eliminated on the date of entry into force of this
Agreement.
5. (a) Any measure related to distribution of wine or
distilled spirits of the other Party shall conform
with Article 301.
(b) Notwithstanding subparagraph (a), and provided that
distribution measures otherwise ensure conformity
with Article 301, a Party may
(i) maintain or introduce a measure limiting on-
premise sales by a winery or distillery to those
wines or distilled spirits produced on its
premises, and
(ii) maintain a measure requiring existing private
wine store outlets in the provinces of Ontario
and British Columbia to discriminate in favor of
wine of those provinces to a degree no greater
than the discrimination required by such
existing measure.
(c) Nothing in this Agreement shall prohibit the Province
of Quebec from requiring that any wine sold in
grocery stores in Quebec be bottled in Quebec,
provided that alternative outlets are provided in
Quebec for the sale of wine of the other Party,
whether or not such wine is bottled in Quebec.
6. Unless otherwise specifically provided in this Annex, the
Parties retain their rights and obligations under the GATT and
agreements negotiated under the GATT.
7. For purposes of this Annex:
wine includes wine and wine-containing beverages.
Annex 313
Distinctive Products
1. Canada and Mexico shall recognize Bourbon Whiskey and
Tennessee Whiskey, which is a straight Bourbon Whiskey
authorized to be produced only in the State of Tennessee, as
distinctive products of the United States. Accordingly, Canada
and Mexico shall not permit the sale of any product as Bourbon
Whiskey or Tennessee Whiskey, unless it has been manufactured
in the United States in accordance with the laws and
regulations of the United States governing the manufacture of
Bourbon Whiskey and Tennessee Whiskey.
2. Mexico and the United States shall recognize Canadian
Whisky as a distinctive product of Canada. Accordingly, Mexico
and the United States shall not permit the sale of any product
as Canadian Whisky, unless it has been manufactured in Canada
in accordance with the laws and regulations of Canada governing
the manufacture of Canadian Whisky for consumption in Canada.
3. Canada and the United States shall recognize Tequila and
Mezcal as distinctive products of Mexico. Accordingly, Canada
and the United States shall not permit the sale of any product
as Tequila or Mezcal, unless it has been manufactured in Mexico
in accordance with the laws and regulations of Mexico governing
the manufacture of Tequila and Mezcal. This provision shall
apply to Mezcal, either on the date of entry into force of this
Agreement, or 90 days after the date when the official standard
for this product is made obligatory by the Government of
Mexico, whichever is later.
Annex 314
Export Taxes
Mexico
1. Mexico may adopt or maintain a duty, tax or other charge
on the export of those basic foodstuffs set out in paragraph 4,
on their ingredients or on the goods from which such foodstuffs
are derived, if such duty, tax or other charge is adopted or
maintained on the export of such goods to the territory of all
other Parties, and is used:
(a) to limit to domestic consumers the benefits of a
domestic food assistance program with respect to such
foodstuff; or
(b) to ensure the availability of sufficient quantities
of such foodstuff to domestic consumers or of
sufficient quantities of its ingredients, or of the
goods from which such foodstuffs are derived, to a
domestic processing industry, when the domestic price
of such foodstuff is held below the world price as
part of a governmental stabilization plan, provided
that such duty, tax, or other charge
(i) does not operate to increase the protection
afforded to such domestic industry, and
(ii) is maintained only for such period of time as is
necessary to maintain the integrity of the
stabilization plan.
2. Notwithstanding paragraph 1, Mexico may adopt or maintain
a duty, tax or other charge on the export of any foodstuff to
the territory of another Party if such duty, tax or other
charge is temporarily applied to relieve critical shortages of
that foodstuff. For purposes of this paragraph, "temporarily"
means up to one year, or such longer period as the Parties may
agree.
3. Mexico may maintain its existing tax on the export of
goods provided for under tariff item 4001.30.02 of the Tariff
Schedule of the General Export Duty Act ("Tarifa de la Ley del
Impuesto General de Exportaci n") for up to 10 years after the
date of entry into force of this Agreement.
Annex 314
4. For purposes of paragraph 1, "basic foodstuffs" means:
Beans
Beef steak or pulp Ground beef
Beef liver Instant coffee
Beef remnants and bones Low-priced cookies ("galletas
("retazo con hueso") dulces populares")
Beer Margarine
Bread Oat flakes
Brown sugar Pasteurized milk
Canned sardines Powdered chocolate
Canned tuna Powdered milk for children
Canned peppers Powdered milk
Chicken broth Rice
Condensed milk Roasted coffee
Cooked ham Salt
Corn tortillas Soft drinks
Corn flour Soup paste
Corn dough Tomato puree
Crackers Vegetable oil
Eggs Vegetable fat
Evaporated milk Wheat flour
French rolls ("pan blanco") White sugar
Gelatine
Annex 315
Other Export Measures
Article 315 shall not apply as between Mexico and the
other Parties.
Title:Annex 300-A -- Trade and Investment in the Automotive Sector
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:61047
Annex 300-A
Trade and Investment in the Automotive Sector
1. Each Party shall accord to all existing producers of
vehicles in its territory treatment no less favorable than it
accords to any new producer of vehicles in its territory under
the measures referred to in this Annex, except that this
obligation shall not be construed to apply to any differences
in treatment specifically provided for in the Appendices to
this Annex.
2. The Parties shall review, no later than December 31, 2003,
the status of the North American automotive sector and the
effectiveness of the measures referred to in this Annex to
determine actions that could be taken to strengthen the
integration and global competitiveness of the sector.
3. Appendices 300-A.1, 300-A.2 and 300-A.3 apply to the
Parties specified therein respecting trade and investment in
the automotive sector.
4. For purposes of this Annex, unless otherwise specified in
the Appendices:
existing producer of vehicles means a producer that was
producing vehicles in the territory of the relevant Party prior
to model year 1992;
new producer of vehicles means a producer that began producing
vehicles in the territory of the relevant Party after model
year 1991;
used vehicle means a vehicle that:
(a) has been sold, leased or loaned;
(b) has been driven for more than
(i) 1,000 kilometers if the vehicle has a gross
weight of less than five metric tons, or
(ii) 5,000 kilometers if the vehicle has a gross
weight of five metric tons or more; or
(c) was manufactured prior to the current year and at
least 90 days have elapsed since the date of
manufacture; and
vehicle means an automobile, a truck, a bus or a special
purpose motor vehicle, not including a motorcycle.
Annex 300-A
Appendix 300-A.1
Canada
Existing Measures
1. Canada and the United States may maintain the Agreement
Concerning Automotive Products between the Government of Canada
and the Government of the United States of America, signed at
Johnson City, Texas, January 16, 1965 and entered into force on
September 16, 1966, in accordance with Article 1001, and
Article 1002(1) and (4) (as they refer to Annex 1002.1, Part
One), Article 1005(1) and (3), and Annex 1002.1, Part One
(Waivers of Customs Duties) of the Canada - United States Free
Trade Agreement, which provisions are hereby incorporated into
and made a part of this Agreement for such purpose, except that
for purposes of Article 1005(1) of that agreement, Chapter Four
(Rules of Origin) of this Agreement shall be applied in the
place of Chapter Three of the Canada - United States Free Trade
Agreement.
2. Canada may maintain the measures referred to in Article
1002(1) and (4) (as they refer to Annex 1002.1, Parts Two and
Three), Article 1002(2) and (3), Article 1003 and Parts Two
(Export-Based Waivers of Customs Duties) and Three (Production-
Based Waivers of Customs Duties) of Annex 1002.1 of the
Canada - United States Free Trade Agreement. Canada shall
eliminate those measures in accordance with the terms set out
in that agreement.
3. For greater certainty, the differences in treatment
pursuant to paragraphs 1 and 2 shall not be considered to be
inconsistent with Article 1103 (Investment - Most-Favored-
Nation Treatment).
Used Vehicles
4. Canada may adopt or maintain prohibitions or restrictions
on imports of used vehicles from the territory of Mexico,
except as follows:
(a) beginning January 1, 2009, Canada may not adopt or
maintain a prohibition or restriction on imports from
the territory of Mexico of originating used vehicles
that are at least 10 years old;
(b) beginning January 1, 2011, Canada may not adopt or
maintain a prohibition or restriction on imports from
the territory of Mexico of originating used vehicles
Annex 300-A
that are at least eight years old;
(c) beginning January 1, 2013, Canada may not adopt or
maintain a prohibition or restriction on imports from
the territory of Mexico of originating used vehicles
that are at least six years old;
(d) beginning January 1, 2015, Canada may not adopt or
maintain a prohibition or restriction on imports from
the territory of Mexico of originating used vehicles
that are at least four years old;
(e) beginning January 1, 2017, Canada may not adopt or
maintain a prohibition or restriction on imports from
the territory of Mexico of originating used vehicles
that are at least two years old; and
(f) beginning January 1, 2019, Canada may not adopt or
maintain a prohibition or restriction on imports from
the territory of Mexico of originating used vehicles.
5. Paragraph 4 shall not be construed to allow Canada to
derogate from its obligations in respect of land transportation
services under Chapter Twelve (Cross-Border Trade in Services),
including its Schedule to Annex I.
Annex 300-A
Appendix 300-A.2
Mexico
Auto Decree and Auto Decree Implementing Regulations
1. Until January 1, 2004, Mexico may maintain the provisions
of the Decree for Development and Modernization of the
Automotive Industry ("Decreto para el Fomento y Modernizaci n
de la Industria Automotriz"), December 11, 1989, (the "Auto
Decree") and the Resolution that Establishes Rules for the
Implementation of the Auto Decree ("Acuerdo que Determina
Reglas para la Aplicaci n para el Fomento y Modernizaci n de la
Industria Automotriz"), November 30, 1990, (the "Auto Decree
Implementing Regulations") that would otherwise be inconsistent
with this Agreement, subject to the conditions set out in
paragraphs 2 through 18. No later than January 1, 2004, Mexico
shall bring any inconsistent provision of the Auto Decree and
the Auto Decree Implementing Regulations into conformity with
the other provisions of this Agreement.
Autoparts Industry, National Suppliers and Independent
Maquiladoras
2. Mexico may not require that an enterprise attain a level
of national value added in excess of 20 percent of its total
sales as one of the conditions to qualify as a national
supplier or enterprise of the autoparts industry.
3. Mexico may require that a national supplier or an
enterprise of the autoparts industry, in calculating its
national value added solely for purposes of paragraph 2,
include customs duties in the value of imports incorporated
into the autoparts produced by such supplier or enterprise.
4. Mexico shall grant national supplier status to an
independent maquiladora that requests such status and meets the
requirements for that status set out in the existing Auto
Decree, as modified by paragraphs 2 and 3. Mexico shall
continue to grant to all independent maquiladoras that request
national supplier status all existing rights and privileges
accorded to independent maquiladoras under the existing Decree
for the Promotion and Operation of the Maquiladora Export
Industry ("Decreto para el Fomento y Operaci n de la Industria
Maquiladora de Exportaci n"), December 22, 1989 (the
"Maquiladora Decree").
Annex 300-A
National Value Added
5. Mexico shall provide that a manufacturer ("empresa de la
industria terminal") calculate its required national value
added from suppliers (VANp) as a percentage of:
(a) the manufacturer's reference value as set out in
paragraph 8; or
(b) the manufacturer's total national value added (VANt),
whichever is greater, except that Mexico shall provide that a
manufacturer beginning production of motor vehicles in Mexico
after model year 1991 calculate its required national value
added from suppliers (VANp) as a percentage of its total
national value added (VANt).
6. Mexico may not require that the percentage referred to in
paragraph 5 be greater than:
(a) 34 percent for each of the first five years beginning
January 1, 1994;
(b) 33 percent for 1999;
(c) 32 percent for 2000;
(d) 31 percent for 2001;
(e) 30 percent for 2002; and
(f) 29 percent for 2003.
7. Notwithstanding paragraph 6, Mexico shall allow a
manufacturer that produced motor vehicles in Mexico before
model year 1992 to use as its percentage referred to in
paragraph 5 the ratio of actual national value added from
suppliers (VANp) to total national value added (VANt) that the
manufacturer attained in model year 1992, for so long as that
ratio is lower than the applicable percentage specified under
paragraph 6. In determining such ratio for model year 1992,
purchases that the manufacturer made from independent
maquiladoras that would have been eligible to receive national
supplier status had paragraphs 2, 3 and 4 of this Appendix been
in effect at that time, shall be included in the calculation of
the manufacturer's national value added from suppliers (VANp),
in the same manner as autoparts from any other national
supplier or enterprise of the autoparts industry.
Annex 300-A
8. The annual reference value for a manufacturer ("reference
value") shall be:
(a) for each of the years 1994 through 1997, the base
value for the manufacturer, plus no more than 65
percent of the difference between the manufacturer's
total sales in Mexico in that year and its base
value;
(b) for each of the years 1998 through 2000, the base
value for the manufacturer, plus no more than 60
percent of the difference between the manufacturer's
total sales in Mexico in that year and its base
value; and
(c) for each of the years 2001 through 2003, the base
value for the manufacturer, plus no more than 50
percent of the difference between the manufacturer's
total sales in Mexico in that year and its base
value.
9. Mexico shall provide that where a manufacturer's total
sales in Mexico in a year are lower than its base value, the
reference value for the manufacturer for that year shall be
equal to the manufacturer's total sales in Mexico for the year.
10. In the event an abnormal production disruption affects a
manufacturer's production capability, Mexico shall allow the
manufacturer to seek a reduction in its reference value before
the Intersecretariat Automotive Industry Commission,
established under Chapter V of the Auto Decree. If the
Commission finds that the production capability of the
manufacturer has been impaired by such an abnormal production
disruption, the Commission shall reduce the manufacturer's
reference value in an amount commensurate to the event.
11. If, on the request of a manufacturer, the Intersecretariat
Automotive Industry Commission finds that the production
capability of the manufacturer has been significantly disrupted
as a result of a major retooling or plant conversion in the
facilities of the manufacturer, the Commission shall reduce the
manufacturer's reference value for that year in an amount
commensurate with the disruption, provided that any reduction
in that manufacturer's required national value added from
suppliers (VANp) that may result from the Commission's
determination to reduce the manufacturer's reference value
shall be fully made up by the manufacturer over the 24 months
after the date on which the retooling or plant conversion is
completed.
Annex 300-A
Trade Balance
12. Mexico may not require a manufacturer to include in the
calculation of its trade balance (S) a percentage of the value
of direct and indirect imports of autoparts that the
manufacturer incorporated into that manufacturer's production
in Mexico for sale in Mexico (VTVd) in the corresponding year,
greater than the following:
(a) 80 percent for 1994;
(b) 77.2 percent for 1995;
(c) 74.4 percent for 1996;
(d) 71.6 percent for 1997;
(e) 68.9 percent for 1998;
(f) 66.1 percent for 1999;
(g) 63.3 percent for 2000;
(h) 60.5 percent for 2001;
(i) 57.7 percent for 2002; and
(j) 55.0 percent for 2003.
13. Mexico shall provide that, for purposes of determining a
manufacturer's total national value added (VANt), paragraph 12
shall not apply to the calculation of the manufacturer's trade
balance (S).
14. Mexico shall allow a manufacturer with a surplus in its
extended trade balance to divide its extended trade balance by
the applicable percentages in paragraph 12 to determine the
total value of new motor vehicles that it may import.
15. Mexico shall provide that a manufacturer's adjustment
factor (Y), included in the calculation of such manufacturer's
extended trade balance, shall be equal to:
(a) for a manufacturer that produced motor vehicles prior
to model year 1992
(i) the greater of the manufacturer's reference
value or the manufacturer's total national value
added (VANt), minus
Annex 300-A
(ii) the manufacturer's actual national value added
from suppliers (VANp) divided by the appropriate
percentage specified under paragraph 6 or 7 as
appropriate;
(b) for all other manufacturers
(i) the manufacturer's total national value added
(VANt), minus
(ii) the manufacturer's actual national value added
from suppliers (VANp) divided by the appropriate
percentage specified under paragraph 6,
except that the adjustment factor (Y) shall be zero if the
amount resulting from subtracting (ii) from (i), under (a) or
(b), is negative.
16. In determining the annual amount that a manufacturer may
apply to its extended trade balance from unused surpluses
earned prior to model year 1991, Mexico shall in any year allow
the manufacturer to elect:
(a) to use the procedures of the existing Auto Decree
Implementing Regulations; or
(b) to apply up to the Mexican peso equivalent of US$150
million, adjusted annually for cumulative inflation,
from the date of entry into force of this Agreement,
based on the implicit price deflator for U.S. Gross
Domestic Product (GDP) or any successor index
published by the Council of Economic Advisers in its
"Economic Indicators" (hereinafter "U.S. GDP price
deflator"). To adjust the US$150 million ceiling for
cumulative inflation up to a certain month of a year
following 1994, the $150 million shall be multiplied
by the ratio of
(i) the U.S. GDP price deflator current as of the
month of that year, to
(ii) the U.S. GDP price deflator current as of the
date of entry into force of this Agreement,
provided that the price deflators under subparagraphs
(i) and (ii) have the same base year.
The resulting adjusted amount shall be rounded to the
nearest million dollars.
Annex 300-A
Other Restrictions in the Auto Decree
17. Mexico shall eliminate any restriction that limits the
number of motor vehicles that a manufacturer may import into
Mexico in relation to the total number of motor vehicles that
such manufacturer sells in Mexico.
18. For greater certainty, the differences in treatment
required under paragraphs 5, 7 and 15 shall not be considered
to be inconsistent with Article 1103 (Investment - Most-
Favored-Nation Treatment).
Other Restrictions
19. For the first 10 years after the date of entry into force
of this Agreement, Mexico may maintain prohibitions or
restrictions on the importation of new automotive products
provided for in existing items 8407.34.99 (gasoline engines of
more than 1000cm3, except for motorcycles) and 8703.10.99
(other special vehicles) in the Tariff Schedule of the General
Import Duty Act ("Tarifa de la Ley del Impuesto General de
Importaci n"), except that Mexico may not prohibit or restrict
the importation of automotive products provided for in item
8407.34.99 by manufacturers that comply with the Auto Decree
and the Auto Decree Implementing Regulations, as modified by
this Appendix.
Autotransportation Decree and Autotransportation Implementing
Regulations
20. Mexico shall eliminate the Mexican Decree for Development
and Modernization of the Autotransportation Vehicle
Manufacturing Industry, ("Decreto para el Fomento y
Modernizaci n de la Industria Manufacturera de Vehiculos de
Autotransporte"), December 1989, and the Resolution that
Establishes Rules for the Implementation of the
Autotransportation Decree ("Acuerdo que Establece Reglas de
Aplicaci n del Decreto para el Fomento y Modernizaci n de la
Industria Manufacturera de Veh culos de Autotransporte"),
November 1990. Mexico may adopt or maintain any measure
respecting autotransportation vehicles, autotransportation
parts or manufacturers of autotransportation vehicles provided
that the measure is not inconsistent with this Agreement.
Importation of Autotransportation Vehicles
21. Mexico may adopt or maintain a prohibition or restriction
on the importation of autotransportation vehicles of another
Party until January 1, 1999, except with respect to the
Annex 300-A
importation of autotransportation vehicles pursuant to
paragraphs 22 and 23.
22. For each of the years 1994 through 1998, Mexico shall
allow any manufacturer of autotransportation vehicles to
import, for each type of autotransportation vehicle, a quantity
of originating autotransportation vehicles equal to at least 50
percent of the number of vehicles of such type that the
manufacturer produced in Mexico in that year.
23. For each of the years 1994 through 1998, Mexico shall
allow persons other than manufacturers of autotransportation
vehicles to import, in a quantity to be allocated among such
persons, originating autotransportation vehicles of each type
as follows:
(a) for each of the years 1994 and 1995, no less than 15
percent of the total number of vehicles of each type
of autotransportation vehicle produced in Mexico;
(b) for 1996, no less than 20 percent of the total number
of vehicles of each type of autotransportation
vehicle produced in Mexico; and
(c) for each of the years 1997 and 1998, no less than 30
percent of the total number of vehicles of each type
of autotransportation vehicle produced in Mexico.
Mexico shall allocate such quantity through a
non-discriminatory auction.
Used Vehicles
24. Mexico may adopt or maintain prohibitions or restrictions
on imports of used vehicles from the territory of another
Party, except as follows:
(a) beginning January 1, 2009, Mexico may not adopt or
maintain a prohibition or restriction on imports from
the territories of Canada or the United States of
originating used vehicles that are at least 10 years
old;
(b) beginning January 1, 2011, Mexico may not adopt or
maintain a prohibition or restriction on imports from
the territories of Canada or the United States of
originating used vehicles that are at least eight
years old;
Annex 300-A
(c) beginning January 1, 2013, Mexico may not adopt or
maintain a prohibition or restriction on imports from
the territories of Canada or the United States of
originating used vehicles that are at least six years
old;
(d) beginning January 1, 2015, Mexico may not adopt or
maintain a prohibition or restriction on imports from
the territories of Canada or the United States of
originating used vehicles that are at least four
years old;
(e) beginning January 1, 2017, Mexico may not adopt or
maintain a prohibition or restriction on imports from
the territories of Canada or the United States of
originating used vehicles that are at least two years
old; and
(f) beginning January 1, 2019, Mexico may not adopt or
maintain a prohibition or restriction on imports from
the territories of Canada or the United States of
originating used vehicles.
25. (a) Paragraph 24 shall not apply to the importation on a
temporary basis of a used vehicle provided for in
item 8705.20.01 (mobile drilling derricks),
8705.20.99 (other mobile drilling derricks) or
8705.90.01 (street sweepers) of the Tariff Schedule
of the General Import Duty Act. Such importation
shall be subject to the conditions set out in
paragraph 4(b) of Annex 301.3-B for such time as
Mexico may adopt or maintain a prohibition or
restriction on the importation of the vehicle under
paragraph 24.
(b) Paragraph 24 shall not be construed to allow Mexico
to derogate from its obligations in respect of land
transportation services under Chapter Twelve (Cross-
Border Trade in Services), including its Schedule to
Annex I.
Import Licensing Measures
26. Mexico may adopt or maintain import licensing measures to
the extent necessary to administer restrictions pursuant to:
(a) the Auto Decree and the Auto Decree Implementing
Regulations, as modified by this Appendix, on the
importation of motor vehicles;
Annex 300-A
(b) paragraph 19 of this Appendix on the importation of
new automotive products provided for in item
8407.34.99 (gasoline engines of more than 1000cm3,
except for motorcycles) or 8703.10.99 (other special
vehicles) in the Tariff Schedule of the General
Import Duty Act;
(c) paragraphs 22 and 23 of this Appendix on the
importation of autotransportation vehicles; and
(d) paragraph 24 (a) through (f) of this Appendix on the
importation of used vehicles that are motor vehicles
or autotransportation vehicles or of other used
vehicles provided for in existing items 8702.90.01
(trolley buses), 8705.10.01 (mobile cranes),
8705.20.99 (other mobile drilling derricks),
8705.90.01 (street sweepers) or 8705.90.99 (other
special purpose vehicles, nes) in the Tariff Schedule
of the General Import Duty Act;
provided that such measures shall not have trade restrictive
effects on the importation of such goods additional to those
due to restrictions imposed in accordance with this Appendix,
and that a license shall be granted to any person that fulfills
Mexico's legal requirements for the importation of the goods.
Definitions
27. For purposes of this Appendix:
abnormal production disruption means a disruption in a
manufacturer's production capability resulting from a natural
disaster, fire, explosion or other unforeseen event beyond the
manufacturer's control;
automotive products (referred to as "productos automotrices" in
rule 1, paragraph III of the Auto Decree Implementing
Regulations) means motor vehicles and autoparts;
autoparts (referred to as "partes y componentes automotrices"
in article 2, paragraph X of the Auto Decree) means parts and
components intended for use in a motor vehicle;
autotransportation parts means parts and components intended
for use in an autotransportation vehicle;
autotransportation vehicle means a vehicle of one of the
following types:
Annex 300-A
(a) a vehicle without a chassis and with an integrated
body, intended for the transport of more than 10
persons, with a gross vehicle weight of more than
8,864 kilograms, provided for in items 8702.10.02,
8702.10.03, 8702.90.03, 8702.90.04, 8705.20.01 or
8705.40.01 of the Tariff Schedule of the General
Import Duty Act;
(b) a vehicle with a chassis, intended for the transport
of goods or more than 10 persons, with a gross
vehicle weight of more than 8,864 kilograms, provided
for in items 8702.10.01, 8702.10.03, 8702.90.02,
8702.90.04, 8704.22.99, 8704.23.99, 8704.32.99,
8705.20.01, 8705.40.01 or 8706.00.99 of the Tariff
Schedule of the General Import Duty Act; or
(c) a vehicle with two or three axles, either with
integrated equipment or intended for the transport of
goods by hauling a trailer, or semi-trailer, provided
for in items 8701.20.01, 8705.20.01, 8705.40.01 or
8706.00.99 of the Tariff Schedule of the General
Import Duty Act;
base value means the average for model years 1991 and 1992 of a
manufacturer's production in Mexico for sale in Mexico (VTVd),
adjusted annually for cumulative inflation, based on the
Mexican National Producer Price Index of Vehicles, Autoparts,
and other Transportation Goods ("Indice Nacional de Precios al
Productor de veh culos, refacciones y otros materiales de
transporte"), or any successor index, published by the Bank of
Mexico ("Banco de Mexico") in its "Economic Indicators"
("Indicadores Economicos") (hereinafter "Mexican NPPI"). To
adjust the base value for cumulative inflation up to 1994 or a
subsequent year, the average for model years 1991 and 1992 of
the manufacturer's VTVd shall be multiplied by the ratio of:
(a) the Mexican NPPI for that year, to
(b) the Mexican NPPI for 1992,
provided that the price indices set out in subparagraphs (a)
and (b) have the same base year;
enterprise of the autoparts industry (referred to as "empresa
de la industria de autopartes" in article 2, paragraph V, and
articles 6 and 7 of the Auto Decree) means an enterprise
constituted or organized under the law of, and operating in,
Mexico that produces autoparts and:
Annex 300-A
(a) whose annual invoice value of sales of autoparts to
manufacturers, for use as original equipment by the
manufacturer in its production of automotive products
for sale in Mexico, constitutes more than 60 percent
of the enterprise's annual total invoice value of
sales, calculating its annual invoice value of sales
of autoparts to manufacturers in accordance with rule
20 of the Auto Decree Implementing Regulations as of
August 12, 1992, or any other measure adopted by
Mexico that is no more restrictive than such rule;
(b) complies with the national value added requirements
pursuant to paragraphs 2 and 3 of this Appendix;
(c) complies with the capital structure required under
the Law to Promote Mexican Investment and Regulate
Foreign Investment ("Ley para Promover la Inversi n
Mexicana y Regular la Inversi n Extranjera"), March
9, 1973, and the Regulations of the Law to Promote
Mexican Investment and to Regulate Foreign Investment
("Reglamento de la Ley para Promover la Invers on
Mexicana y Regular la Invers on Extranjera"), May 16,
1989, as applied consistently with Mexico's
commitments set out in its Schedule to Annex I of
Part Five (Investment, Services and Related Matters);
and
(d) that, on the fulfillment of the requirements under
(a), (b) and (c), is registered with the Ministry of
Trade and Industrial Development ("Secretar a de
Comercio y Fomento Industrial") ("SECOFI") as an
enterprise of the autoparts industry, except that
SECOFI may grant registration to an enterprise that
complies with subparagraphs (b) and (c) but does not
comply with subparagraph (a);
extended trade balance for a manufacturer is equal to S + T + W
+ 0.3I + SFt - Y, where:
(a) S denotes the manufacturer's trade balance;
(b) T denotes the transfer of
(i) trade balance surpluses between the manufacturer
and other manufacturers, and
(ii) foreign exchange to the manufacturer that an
enterprise of the autoparts industry has earned
from exports of autoparts, excluding the value
Annex 300-A
of import content in such exports, and excluding
foreign exchange that the enterprise has earned
from exports of autoparts that were promoted by
the manufacturer,
applied in accordance with rule 8 of the Auto Decree
Implementing Regulations as of August 12, 1992, or
any other measure adopted by Mexico that is no more
restrictive than such rule;
(c) W denotes the transfer to the manufacturer of foreign
exchange that a maquiladora has earned from the
export of automotive products, excluding the value of
the import content in such exports, provided that the
maquiladora is not a national supplier, and one or
more of the following conditions is met
(i) the manufacturer is, directly or indirectly, a
majority shareholder of the maquiladora,
(ii) the manufacturer and the maquiladora have a
majority shareholder in common, or
(iii) the manufacturer is a promoter of the
automotive goods exported by such
maquiladora,
calculated in accordance with article 9 of the Auto
Decree and rule 8 of the Auto Decree Implementing
Regulations as of August 12, 1992, or any other
measure adopted by Mexico that is no more restrictive
than that article or rule;
(d) I denotes the value of the manufacturer's investments
in fixed assets of Mexican origin destined for
permanent use in Mexico, excluding machinery and
equipment purchased in Mexico but not produced in
Mexico, that the manufacturer may transfer to its
extended trade balance, applied in accordance with
article 11 of the Auto Decree and rule 8 of the Auto
Decree Implementing Regulations as of August 12,
1992, or any other measure adopted by Mexico that is
no more restrictive than the article or rule;
(e) SFt denotes the manufacturer's trade balance
surpluses unused in prior years and transferred to
the current year, calculated in accordance with rules
17 and 19 of the Auto Decree Implementing Regulations
as of August 12, 1992, as modified by paragraph 16 of
Annex 300-A
this Appendix, or any other measure adopted by Mexico
that is no more restrictive than such rules; and
(f) Y denotes the adjustment factor calculated in
accordance with paragraph 15;
independent maquiladora means an enterprise registered as an
export maquiladora enterprise under the existing Maquiladora
Decree, that has no majority shareholder in common with any
manufacturer, and in which no manufacturer is directly or
indirectly a majority shareholder;
manufacturer (referred to as "empresa de la industria terminal"
in article 2, paragraph IV, and articles 3, 4 and 5 of the Auto
Decree) means an enterprise constituted or organized under the
law of, and operating in, Mexico, that is:
(a) registered with SECOFI; and
(b) engaged in Mexico in the manufacture or final
assembly of motor vehicles;
manufacturer of autotransportation vehicles means an enterprise
constituted or organized under the law of, and operating in,
Mexico:
(a) that is registered with SECOFI;
(b) that manufactures autotransportation vehicles in
Mexico; and
(c) where the enterprise's
(i) total invoice value of sales of
autotransportation vehicles and
autotransportation parts that it produces in
Mexico, minus
(ii) total invoice value of autotransportation parts
that the enterprise imports directly, plus the
value of the import content of
autotransportation parts that it purchases in
Mexico,
is equal to at least 40 percent of its total invoice
value of sales of autotransportation vehicles and
autotransportation parts that the enterprise produces
in Mexico;
Annex 300-A
manufacturer's production in Mexico for sale in Mexico (VTVd)
means the total invoice value of a manufacturer's sales in
Mexico of motor vehicles and autoparts it produced in Mexico,
excluding the manufacturer's sales of imported motor vehicles;
manufacturer's total sales in Mexico means the manufacturer's
total invoice value of sales of motor vehicles it produced in
Mexico for sale in Mexico plus the total invoice value of its
sales of imported motor vehicles;
model year (referred to as "a o-modelo" in article 2, paragraph
IX of the Auto Decree) means a 12-month period beginning
November 1;
motor vehicle (referred to as "veh culos automotores" in
article 2, paragraph IV of the Auto Decree) means an
automobile, a compact automobile of popular use, a commercial
truck, a light duty truck or a medium duty truck, where:
(a) automobile means a vehicle intended for the transport
of up to 10 persons, provided for in items 8703.21
through 8703.33, 8703.90.99, 8706.00.01, 8706.00.02
or 8706.00.99 of the Tariff Schedule of the General
Import Duty Act;
(b) compact automobile of popular use means a vehicle
that complies with the characteristics set out in the
existing Decree that Establishes Exemptions for
Compact Automobiles of Popular Use ("Decreto que
Otorga Exenciones a los Autom viles Compactos de
Consumo Popular"), August 2, 1989, provided for in
items 8703.21 through 8703.33, 8703.90.99,
8706.00.01, 8706.00.02 or 8706.00.99 of the Tariff
Schedule of the General Import Duty Act;
(c) commercial truck means a vehicle with or without a
chassis, intended for the transport of goods or more
than 10 persons, with a gross vehicle weight of up to
2,727 kilograms provided for in items 8702.10,
8702.90.02, 8702.90.03, 8703.21 through 8703.33,
8703.90.99, 8704.21.99, 8704.31.99, 8705.20.01,
8705.40.01, 8706.00.01, 8706.00.02 or 8706.00.99 of
the Tariff Schedule of the General Import Duty Act;
(d) light duty truck means a vehicle with or without a
chassis, intended for the transport of goods or more
than 10 persons, with a gross vehicle weight of more
than 2,727 but no more than 7,272 kilograms provided
for in items 8702.10, 8702.90.02, 8702.90.03,
Annex 300-A
8704.21.99, 8704.22.99, 8704.31.99, 8704.32.99,
8705.20.01, 8705.40.01, 8706.00.01, 8706.00.02 or
8706.00.99 of the Tariff Schedule of the General
Import Duty Act; and
(e) medium duty truck means a vehicle with or without a
chassis, intended for the transport of goods or more
than 10 persons, with a gross vehicle weight of more
than 7,272 but no more than 8,864 kilograms provided
for in items 8702.10, 8702.90.02, 8702.90.03,
8704.22.99, 8704.32.99, 8705.20.01, 8705.40.01,
8706.00.01, 8706.00.02 or 8706.00.99 of the Tariff
Schedule of the General Import Duty Act;
national supplier (referred to as "proveedor nacional" in
article 2, paragraph VII of the Auto Decree) means an
enterprise constituted or organized under the law of, and
operating in, Mexico:
(a) that supplies to manufacturers autoparts classified
in categories 26, 40, 41, 42, 43 and 57 of the
input-output matrix of the National Institute of
Statistics, Geography and Informatics ("Instituto
Nacional de Estad stica, Geograf a e Inform tica"),
published in 1980;
(b) that is registered with SECOFI;
(c) in which no manufacturer, directly or indirectly, is
a majority shareholder;
(d) that has no majority shareholders that are also
majority shareholders of any manufacturer; and
(e) that complies with the national value added
requirements pursuant to paragraphs 2 and 3;
national value added from suppliers (VANp) (referred to as
"VANp" in rule 18 of the Auto Decree Implementing Regulations)
means, for a manufacturer, the sum of:
(a) the national value added contained in the autoparts
that the manufacturer purchases from national
suppliers and from enterprises of the autoparts
industry, excluding purchases of autoparts from such
suppliers and enterprises destined for the
aftermarket, and
(b) the foreign exchange attributable to the value of
Annex 300-A
exports of autoparts, excluding the value of import
content in the exports, produced by national
suppliers and enterprises of the autoparts industry,
where the export of the autoparts was promoted by the
manufacturer,
calculated in accordance with formula 7 of rule 18 in the Auto
Decree Implementing Regulations as of August 12, 1992, or any
other measure adopted by Mexico that is no more restrictive
than such formula;
national value added means, for an enterprise of the autoparts
industry or a national supplier, the total value of sales of
such enterprise or supplier minus the value of its total
imports, direct and indirect, excluding those imports
incorporated in autoparts destined for the aftermarket, as
modified by paragraphs 2 and 3;
total national value added (VANt) (referred to as "valor
agregado nacional de la empresa de la industria terminal" in
rule 18 of the Auto Decree Implementing Regulations) means, for
a manufacturer, either:
(a) the sum of the manufacturer's production in Mexico
for sale in Mexico (VTVd) plus the manufacturer's
trade balance (S), where the trade balance (S) is
greater than zero; or
(b) the manufacturer's production in Mexico for sale in
Mexico (VTVd), where the manufacturer's trade balance
(S) is negative;
total sales means, for a national supplier or an enterprise of
the autoparts industry, the sum of:
(a) the invoice value of sales of autoparts by that
supplier or enterprise to a manufacturer that are
intended for use as original equipment in the motor
vehicles or autoparts that the manufacturer produces,
excluding autoparts destined for the aftermarket; and
(b) the value of autoparts that the supplier or
enterprise exports, either directly or through a
manufacturer, less the value of the imported content
of such autoparts; and
trade balance (S) (referred to as "saldo en balanza comercial"
in rule 9 of the Auto Decree Implementing Regulations), for a
manufacturer, is equal to X + TP - ID - IP, where:
Annex 300-A
(a) X denotes the value of the manufacturer's direct
exports of motor vehicles and autoparts that it
produces,
(b) TP denotes the foreign exchange attributable to the
value of exports of autoparts, excluding the value of
import content in the exports, produced by national
suppliers and enterprises of the autoparts industry,
where the exportation of such autoparts was promoted
by the manufacturer,
(c) ID denotes the value of the manufacturer's direct
imports, excluding duties and domestic taxes, and
whether the imports are for domestic consumption
("definitivas") or for re-export ("temporales"),
incorporated in the motor vehicles and autoparts
produced by the manufacturer, excluding autoparts
destined for the aftermarket, and
(d) IP denotes the value of import content in the
autoparts purchased by the manufacturer from an
enterprise of the autoparts industry or a national
supplier that are incorporated in the motor vehicles
and autoparts produced by the manufacturer, excluding
the import content of autoparts destined for the
aftermarket, calculated in accordance with rules 10,
12, 13, 14, and 15 of the Auto Decree Implementing
Regulations as of August 12, 1992, or any other
measure adopted by Mexico that is no more restrictive
than such rules,
provided that, for purposes of subparagraphs (c) and (d), the
value of imports for domestic consumption ("definitivas") shall
be discounted in accordance with paragraph 12.
Annex 300-A
Appendix 300-A.3
United States - Corporate Average Fuel Economy
1. In accordance with the schedule set out in paragraph 2,
for purposes of the Energy Policy and Conservation Act of 1975,
42 U.S.C. 6201 et seq. ("the CAFE Act"), the United States
shall consider an automobile to be domestically manufactured in
any model year if at least 75 percent of the cost to the
manufacturer of such automobile is attributable to value added
in Canada, Mexico or the United States, unless the assembly of
the automobile is completed in Canada or Mexico and such
automobile is not imported into the United States prior to the
expiration of the 30 days following the end of the model year.
2. Paragraph 1 shall apply to all automobiles produced by a
manufacturer and sold in the United States, wherever produced
and irrespective of car line or truck line, in accordance with
the following schedule:
(a) with respect to a manufacturer that initiated the
production of automobiles in Mexico before model year
1992, the enterprise subject to the fuel economy
requirements for those automobiles under the CAFE Act
may make a one-time election at any time between
January 1, 1997 and
January 1, 2004, to have paragraph 1 applied
beginning with the next model year after its
election;
(b) with respect to a manufacturer initiating the
production of automobiles in Mexico after model year
1991, paragraph 1 shall apply beginning with the next
model year after either January 1, 1994 or the date
that the manufacturer initiates the production of
automobiles in Mexico, whichever is later;
(c) with respect to any other manufacturer producing
automobiles in the territory of a Party, the
enterprise subject to the fuel economy requirements
for those automobiles under the CAFE Act may make a
one-time election at any time between January 1, 1997
and January 1, 2004, to have paragraph 1 applied
beginning with the next model year after its
election. If such a manufacturer initiates the
production of automobiles in Mexico, it shall be
subject to subparagraph (b) on the date it initiates
such production;
Annex 300-A
(d) with respect to all manufacturers of automobiles not
producing automobiles in the territory of a Party,
paragraph 1 shall apply beginning with the next model
year after January 1, 1994; and
(e) with respect to a manufacturer of automobiles covered
by subparagraph (a) or (c), paragraph 1 shall apply
beginning with the next model year after January 1,
2004, where the enterprise subject to the fuel
economy requirements for those automobiles under the
CAFE Act, has not made an election under subparagraph
(a) or (c).
3. The United States shall ensure that any measure it adopts
pertaining to the definition of domestic production in the CAFE
Act or its implementing regulations shall apply equally to
value added in Canada or Mexico.
4. Nothing in this Appendix shall be construed to require the
United States to make any changes in its fuel economy
requirements for automobiles, or to prevent the United States
from making any changes in its fuel economy requirements for
automobiles that are otherwise consistent with this Appendix.
5. For greater certainty, the differences in treatment
pursuant to paragraphs 1 through 3 shall not be considered to
be inconsistent with Article 1103 (Investment - Most-Favored-
Nation Treatment).
6. For purposes of this Appendix:
automobile means "automobile" as defined in the CAFE Act and
its implementing regulations;
manufacturer means "manufacturer" as defined in the CAFE Act
and its implementing regulations; and
model year means "model year" as defined in the CAFE Act and
its implementing regulations.
Title:Annex 300-B -- Textile and Apparel Goods
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:260651
Annex 300-B
Textile and Apparel Goods
Section 1: Scope and Coverage
1. This Annex applies to the textile and apparel goods set
out in Appendix 1.1.
2. In the event of any inconsistency between this Agreement
and the Arrangement Regarding International Trade in Textiles
(Multifiber Arrangement), as amended and extended, including
any amendment or extension after January 1, 1994, or any other
existing or future agreement applicable to trade in textile or
apparel goods, this Agreement shall prevail to the extent of
the inconsistency, unless the Parties agree otherwise.
Section 2: Tariff Elimination
1. Except as otherwise provided in this Agreement, each Party
shall progressively eliminate its customs duties on originating
textile and apparel goods in accordance with its Schedule to
Annex 302.2 (Tariff Elimination), and as set out for ease of
reference in Appendix 2.1.
2. For purposes of this Annex:
(a) a textile or apparel good shall be considered an
originating good if the applicable change in tariff
classification set out in Chapter Four (Rules of
Origin) has been satisfied in the territory of one or
more of the Parties in accordance with Article 404
(Accumulation); and
(b) for purposes of determining which rate of customs
duty and staging category is applicable to an
originating textile or apparel good, a good shall be
considered a good of a Party
(i) as determined by each importing Party's
regulations, practices or procedures, except
that
Annex 300-B
(ii) in the event of an agreement between the Parties
pursuant to Annex 311(1) (Country of Origin
Marking), as determined by such agreement.
3. An importing Party and an exporting Party may identify at
any time particular textile and apparel goods that they
mutually agree fall within:
(a) hand-loomed fabrics of a cottage industry;
(b) hand-made cottage industry goods made of such hand-
loomed fabrics; or
(c) traditional folklore handicraft goods.
The importing Party shall grant duty-free treatment to goods so
identified, if certified by the competent authority of the
exporting Party.
4. Appendix 2.4 applies to the Parties specified in that
Appendix respecting the elimination of tariffs on certain
textile and apparel goods.
Section 3: Import and Export Prohibitions, Restrictions and
Consultation Levels
1. Each Party may maintain a prohibition, restriction or
consultation level only in accordance with Appendix 3.1 or as
otherwise provided in this Annex.
2. Each Party shall eliminate any prohibition, restriction or
consultation level on a textile or apparel good that otherwise
would be permitted under this Annex if that Party is required
to eliminate such measure as a result of having integrated that
good into the GATT as a result of commitments undertaken by
that Party under any successor agreement to the Multifiber
Arrangement.
Section 4: Bilateral Emergency Actions (Tariff Actions)
1. Subject to paragraphs 2 through 5 and during the
transition period only, if, as a result of the reduction or
elimination of a duty provided for in this Agreement, a textile
or apparel good originating in the territory of a Party, or a
good that has been integrated into the GATT pursuant to a
commitment undertaken by a Party under any successor agreement
Annex 300-B
to the Multifiber Arrangement and entered under a tariff
preference level set out in Appendix 6, is being imported into
the territory of another Party in such increased quantities, in
absolute terms or relative to the domestic market for that
good, and under such conditions as to cause serious damage, or
actual threat thereof, to a domestic industry producing a like
or directly competitive good, the importing Party may, to the
minimum extent necessary to remedy the damage or actual threat
thereof:
(a) suspend the further reduction of any rate of duty
provided for under this Agreement on the good; or
(b) increase the rate of duty on the good to a level not
to exceed the lesser of
(i) the most-favored-nation (MFN) applied rate of
duty in effect at the time the action is taken,
and
(ii) the MFN applied rate of duty in effect on
December 31, 1993.
2. In determining serious damage, or actual threat thereof,
the Party:
(a) shall examine the effect of increased imports on the
particular industry, as reflected in changes in such
relevant economic variables as output, productivity,
utilization of capacity, inventories, market share,
exports, wages, employment, domestic prices, profits
and investment, none of which is necessarily
decisive; and
(b) shall not consider changes in technology or consumer
preference as factors supporting a determination of
serious damage or actual threat thereof.
3. A Party shall deliver without delay to any Party that may
be affected by an emergency action taken under this Section
written notice of its intent to take such action, and on
request shall enter into consultations with that Party.
4. The following conditions and limitations apply to any
emergency action taken under this Section:
(a) no action may be maintained for a period exceeding
three years or, except with the consent of the Party
Annex 300-B
against whose good the action is taken, have effect
beyond the expiration of the transition period;
(b) no action may be taken by a Party against any
particular good originating in the territory of
another Party more than once during the transition
period; and
(c) on termination of the action, the rate of duty shall
be the rate that, according to the Schedule for the
staged elimination of the tariff, would have been in
effect one year after the initiation of the action,
and beginning January 1 of the year following the
termination of the action, at the option of the Party
that has taken the action
(i) the rate of duty shall conform to the applicable
rate set out in that Party's Schedule to Annex
302.2, or
(ii) the tariff shall be eliminated in equal annual
stages ending on the date set out in that
Party's Schedule to Annex 302.2 for the
elimination of the tariff.
5. The Party taking an action under this Section shall
provide to the Party against whose good the action is taken
mutually agreed trade liberalizing compensation in the form of
concessions having substantially equivalent trade effects or
equivalent to the value of the additional duties expected to
result from the action. Such concessions shall be limited to
the textile and apparel goods set out in Appendix 1.1, unless
the Parties otherwise agree. If the Parties concerned are
unable to agree on compensation, the exporting Party may take
tariff action having trade effects substantially equivalent to
the action taken under this Section against any goods imported
from the Party that initiated the action under this Section.
The Party taking the tariff action shall only apply the action
for the minimum period necessary to achieve the substantially
equivalent effects.
6. For purposes of this Section, a good originating in the
territory of a Party shall be determined in accordance with
Section 2.2.
7. Paragraphs 1 through 5 shall also apply to textile and
apparel goods described in Appendix 2.4.
Annex 300-B
Section 5: Bilateral Emergency Actions (Quantitative
Restrictions)
1. Subject to Appendix 5.1, a Party may take bilateral
emergency action against non-originating textile or apparel
goods of another Party in accordance with this Section and
Appendix 3.1.
2. If a Party considers that a non-originating textile or
apparel good, including a good entered under a tariff
preference level set out in Appendix 6, is being imported into
its territory from a Party in such increased quantities, in
absolute terms or relative to the domestic market for that
good, under such conditions as to cause serious damage, or
actual threat thereof, to a domestic industry producing a like
or directly competitive good in the importing Party, the
importing Party may request consultations with the other Party
with a view to eliminating the serious damage or actual threat
thereof.
3. The Party requesting consultations shall include in its
request for consultations the reasons that it considers
demonstrate that such serious damage or actual threat thereof
to its domestic industry is resulting from the imports of the
other Party, including the latest data concerning such damage
or threat.
4. In determining serious damage, or actual threat thereof,
the Party shall apply Section 4(2).
5. The Parties concerned shall begin consultations within 60
days of the request for consultations and shall endeavor to
agree on a mutually satisfactory level of restraint on exports
of the particular good within 90 days of the request, unless
the consulting Parties agree to extend this period. In
reaching a mutually satisfactory level of export restraint, the
consulting Parties shall:
(a) consider the situation in the market in the importing
Party;
(b) consider the history of trade in textile and apparel
goods between the consulting Parties, including
previous levels of trade; and
(c) seek to ensure that the textile and apparel goods
imported from the territory of the exporting Party
are accorded equitable treatment as compared with
Annex 300-B
treatment accorded like textile and apparel goods
from non-Party suppliers.
6. If the consulting Parties do not agree on a mutually
satisfactory level of export restraint, the Party requesting
consultations may impose annual quantitative restrictions on
imports of the good from the territory of the other Party,
subject to paragraphs 7 through 13.
7. Any quantitative restriction imposed under paragraph 6
shall be no less than the sum of:
(a) the quantity of the good imported into the territory
of the Party requesting consultations from the Party
that would be affected by the restriction, as
reported in general import statistics of the
importing Party, during the first 12 of the most
recent 14 months preceding the month in which the
request for consultations was made; and
(b) 20 percent of such quantity for cotton, man-made
fiber and other non-cotton vegetable fiber good
categories, and six percent for wool good categories.
8. The first period of any quantitative restriction imposed
under paragraph 6 shall begin on the day after the date on
which the request for consultations was made and terminate at
the end of the calendar year in which the quantitative
restriction is imposed. Any quantitative restriction that is
imposed for a first period of less than 12 months shall be
prorated to correspond to the time remaining in the calendar
year in which the restriction is imposed, and the prorated
amount may be adjusted in accordance with the flexibility
provisions set out in paragraphs 8(b) and (c) of Appendix 3.1.
9. For each successive calendar year that the quantitative
restriction imposed under paragraph 6 remains in effect, the
Party imposing it shall:
(a) increase it by six percent for cotton, man-made fiber
and non-cotton vegetable fiber textile and apparel
goods, and by two percent for wool textile and
apparel goods, and
(b) accelerate the growth rate for quantitative
restrictions on cotton, man-made fiber and non-cotton
vegetable fiber textile and apparel goods if required
Annex 300-B
by any successor agreement to the Multifiber
Arrangement,
and the flexibility provisions set out in paragraphs 8(b) and
(c) of Appendix 3.1 apply.
10. A quantitative restriction imposed under paragraph 6
before July 1 in any calendar year may remain in effect for the
remainder of that year, plus two additional calendar years.
Such a restriction imposed on or after July 1 in any calendar
year may remain in effect for the remainder of that year, plus
three additional calendar years. No such restriction may
remain in effect beyond the transition period.
11. No Party may take an emergency action under this Section
with respect to any particular textile or apparel non-
originating good against which a quantitative restriction is in
effect.
12. No Party may adopt or maintain a quantitative restriction
under this Section on a particular textile or apparel good that
otherwise would be permitted under this Annex, if that Party is
required to eliminate such measure as a result of having
integrated that good into the GATT as a result of commitments
undertaken by that Party pursuant to any successor agreement to
the Multifiber Arrangement.
13. No Party may take a bilateral emergency action after the
expiration of the transition period with respect to cases of
serious damage, or actual threat thereof, to domestic industry
arising from the operation of this Agreement except with the
consent of the Party against whose good the action would be
taken.
Section 6: Special Provisions
Appendix 6 sets out special provisions applicable to
certain textile and apparel goods.
Section 7: Review and Revision of Rules of Origin
1. (a) The Parties shall monitor the effects of the
application of the rule of origin set out in Annex
401 applicable to goods of subheading 6212.10 of the
Harmonized System (HS). No earlier than April 1,
1995, a Party may request consultations with the
Annex 300-B
other Parties to seek a mutually satisfactory
solution to any difficulties that it considers result
from the application of that rule of origin.
(b) If the consulting Parties fail to reach a mutually
satisfactory solution within 90 days of a request for
consultations, on request of any Party the rule of
origin applicable to subheading 6212.10 shall change
to the rule of origin set out in Annex 401 applicable
to headings 62.06 through 62.11 with respect to trade
between the requesting Party and the other Parties.
Any such change shall be effective 180 days after the
request. The Parties shall take measures to ease any
resulting administrative burden on producers.
(c) Unless the Parties agree otherwise, at any time after
the completion of consultations held under
subparagraph (a) and during the transition period
only, a Party that has requested such consultations
may make one additional request for consultations
under subparagraph (a) and take action under
subparagraph (b).
2. (a) On request of any Party, the Parties shall consult to
consider whether particular goods should be subject
to different rules of origin to address issues of
availability of supply of fibers, yarns or fabrics in
the free trade area.
(b) In the consultations, each Party shall consider all
data presented by a Party showing substantial
production in its territory of the particular good.
The consulting Parties shall consider that
substantial production has been shown if that Party
demonstrates that its domestic producers are capable
of supplying commercial quantities of the good in a
timely manner.
(c) The Parties shall endeavor to conclude consultations
within 60 days of the request. An agreement between
two or more Parties resulting from the consultations
shall supersede any prior rule of origin for such
good when approved by each such Party in accordance
with Article 2202(2) (Amendments). If no agreement
is reached, a Party may have recourse to paragraph
B.8 of Appendix 6.
Annex 300-B
(d) Further to subparagraph (a), on request of any Party,
the Parties shall consult to consider whether the
rules of origin set out in Annex 401 applicable to
the following provisions should be amended in view of
increasing availability of supply of relevant yarns
or fabrics within the free trade area:
(i) Canadian tariff item 5407.60.10, Mexican tariff
item 5407.60.02 and U.S. tariff item 5407.60.22,
(ii) provisions (a) through (i) of the rule of origin
for subheadings 6205.20 through 6205.30,
(iii) goods of subheadings 6107.21, 6108.21 and
6108.31, wholly of fabric of Canadian
tariff item 6002.92.10, Mexican tariff item
6002.92.01, and U.S. tariff item
6002.92.10, and exclusive of collar, cuffs,
waistband, elastic or lace;
(iv) note 2 to Chapter 62 of Annex 401, and
(v) Canadian tariff item 6303.92.10, Mexican tariff
item 6303.92.01 and U.S. tariff item 6303.92.aa.
3. The Parties shall review the rules of origin applicable to
textile and apparel goods within five years of the date of
entry into force of this Agreement to take into account the
effect of increasing global competition on textile and apparel
goods and the implications of any integration into the GATT of
textile and apparel goods pursuant to any successor agreement
to the Multifiber Arrangement. The Parties shall give
particular consideration to operative rules in other economic
association or integration agreements and developments relating
to textile and apparel production and trade.
Section 8: Labelling Requirements
The Subcommittee on Labelling of Textile and Apparel Goods
established under Article 913(5) shall perform the functions
set out in Annex 913.5.a-4.
Section 9: Trade in Worn Clothing and Other Worn Articles
Annex 300-B
1. The Parties hereby establish a Committee on Trade in Worn
Clothing, comprising representatives of each Party. The
Committee shall:
(a) include or consult with a broadly representative
group drawn from the manufacturing and retailing
sectors in each Party; and
(b) act in a transparent manner and, if no member of the
Committee formally objects, make recommendations to
the Commission.
2. The Committee shall assess the potential benefits and
risks that may result from the elimination of existing
restrictions on trade between the Parties in worn clothing and
other worn articles, as defined in heading 63.09 of the HS,
including the effects on business and employment opportunities,
and on the market for textile and apparel goods in each Party.
3. A Party may maintain restrictions in effect on the date of
entry into force of this Agreement on the importation of worn
clothing and other worn articles classified under heading
63.09 of the HS, unless the Parties agree otherwise on the
basis of the recommendations presented to the Commission by the
Committee on Trade in Worn Clothing.
Section 10: Definitions
For purposes of this Annex:
average yarn number, as applied to woven fabrics of cotton or
man-made fibers, means the average yarn number of the yarns
contained therein. In computing the average yarn number, the
length of the yarn is considered to be equal to the distance
covered by it in the fabric, with all clipped yarn being
measured as if continuous and with the count being taken of the
total single yarns in the fabric including the single yarns in
any multiple (folded) or cabled yarns. The weight shall be
taken after any excessive sizing is removed by boiling or other
suitable process. Any one of the following formulas can be
used to determine the average yarn number:
N = BYT , 100T , BT or ST
1,000 Z' Z 10
when:
Annex 300-B
N is the average yarn number,
B is the breadth (width) of the fabric in
centimeters,
Y is the meters (linear) of the fabric per
kilogram,
T is the total single yarns per square centimeter,
S is the square meters of fabric per kilogram,
Z is the grams per linear meter of fabric, and
Z' is the grams per square meter of fabric.
Fractions in the resulting "average yarn number" shall be
disregarded.
category means a grouping of textile or apparel goods, and as
set out in Appendix 10.1 for the Parties specified in that
Appendix;
consultation level means a level of exports for a particular
textile or apparel good that may be adjusted in accordance with
paragraph 7 of Appendix 3.1 and includes a designated
consultation level, but does not include a specific limit;
exporting Party means the Party from whose territory a textile
or apparel good is exported;
flexibility provisions means the provisions set out in
paragraphs 8(b) and (c) of Appendix 3.1;
importing Party means the Party into whose territory a textile
or apparel good is imported;
integrated into the GATT means subject to the obligations of
the General Agreement on Tariffs and Trade, an agreement under
the GATT or any successor agreements;
specific limit means a level of exports for a particular
textile or apparel good that may be adjusted in accordance with
paragraph 8 of Appendix 3.1;
square meters equivalent (SME) means that unit of measurement
that results from the application of the conversion factors set
out in Schedule 3.1.3 to a primary unit of measure such as
unit, dozen or kilogram;
tariff preference level means a mechanism that provides for the
application of a customs duty at a preferential rate to imports
of a particular good up to a specified quantity, and at a
Annex 300-B
different rate to imports of that good that exceed that
quantity;
transition period means the 10-year period beginning on January
1, 1994; and
wool apparel means:
(a) apparel in chief weight of wool;
(b) woven apparel in chief weight of man-made fibers
containing 36 percent or more by weight of wool;
and
(c) knitted or crocheted apparel in chief weight of
man-made fibers containing 23 percent or more by
weight of wool.
Annex 300-B
Appendix 1.1
List of Goods Covered by Annex 300-B
The descriptions listed in this Appendix are provided for ease
of reference only. For legal purposes, coverage shall be
determined according to the terms of the Harmonized System.
HS No. Description
Chapter 30 Pharmaceutical Products
3005 90 Wadding, gauze, bandages and the like
Chapter 39 Plastics and articles thereof
ex 3921 12 (Woven, knitted or non-woven fabric coated, covered
or laminated with plastics)
ex 3921 13
ex 3921 90
Chapter 42 Articles of leather; saddlery and harness; travel
goods, handbags and similar containers
ex 4202 12 (Luggage, handbags and flatgoods with an outer
surface predominantly of textile materials)
ex 4202 22
ex 4202 32
ex 4202 92
Chapter 50 Silk
5004 00 Silk yarn (other than yarn spun from silk waste)
not for retail sale
5005 00 Yarn spun from silk waste, not for retail sale
5006 00 Silk yarn and yarn spun from silk waste, for retail
sale; silk-worm gut
5007 10 Woven fabric of noil silk
5007 20 Woven fabric of silk or silk waste, other than noil
silk, 85% or more of such fibers
5007 90 Woven fabric of silk, nes
Chapter 51 Wool, fine or coarse animal hair, horsehair yarn
and fabric
5105 10 Carded wool
5105 21 Combed wool in fragments
Annex 300-B
5105 29 Wool tops and other combed wool, other than combed
wool in fragments
5105 30 Fine animal hair, carded or combed
5106 10 Yarn of carded wool, 85% wool, not for retail sale
5106 20 Yarn of carded, wool, <85% wool, not for retail
sale
5107 10 Yarn of combed wool, 85% wool, not for retail sale
5107 20 Yarn of combed wool, <85% wool, not for retail sale
5108 10 Yarn of carded fine animal hair, not for retail
sale
5108 20 Yarn of combed fine animal hair, not for retail
sale
5109 10 Yarn of wool or of fine animal hair, 85% wool and
fine animal hair, for retail sale
5109 90 Yarn of wool/of fine animal hair, <85% wool and
fine animal hair, for retail sale
5110 00 Yarn of coarse animal hair or of horsehair
5111 11 Woven fabric of carded wool or fine animal hair,
85% wool and fine animal hair, 300 g/m2
5111 19 Woven fabric of carded wool or fine animal hair,
85% wool or fine animal hair, >300 g/m2
5111 20 Woven fabric of carded wool or fine animal hair,
<85% wool or fine animal hair, with man-made fibers
5111 30 Woven fabric of carded wool or fine animal hair,
<85% wool or fine animal hair, with man-made fibers
5111 90 Woven fabric of carded wool or fine animal hair,
<85% wool or fine animal hair, nes
5112 11 Woven fabric of combed wool or fine animal hair,
85% wool or fine animal hair, 200 g/m2
5112 19 Woven fabric of combed wool or fine animal hair,
85% wool or fine animal hair, >200 g/m2
5112 20 Woven fabric of combed wool or fine animal hair,
<85% wool or fine animal hair, with man-made
filament
5112 30 Woven fabric of combed wool or fine animal hair,
<85% wool or fine animal hair, with man-made fibers
5112 90 Woven fabric of combed wool or fine animal hair,
<85% wool or fine animal hair, nes
5113 00 Woven fabric of coarse animal hair or of horsehair
Chapter 52 Cotton
5203 00 Cotton, carded or combed
5204 11 Cotton sewing thread 85% cotton, not for retail
sale
5204 19 Cotton sewing thread, <85% cotton, not for retail
sale
5204 20 Cotton sewing thread, for retail sale
Annex 300-B
HS No. Description HS No. Description
5205 11 Cotton yarn, 85% cotton, single, uncombed, 714.29
decitex, not for retail sale
5205 12 Cotton yarn, 85% cotton, single, uncombed, 714.29
>decitex 232.56, not for retail sale
5205 13 Cotton yarn, 85% cotton, single, uncombed,
232.56>decitex 192.31, not for retail sale
5205 14 Cotton yarn, 85% cotton, single, uncombed, 192.31
>decitex 125, not for retail sale
5205 15 Cotton yarn, 85% cotton, single, uncombed, <125
decitex, not for retail sale
5205 21 Cotton yarn, 85% cotton, single, combed, 714.29,
not for retail sale
5205 22 Cotton yarn, 85% cotton, single, combed, 714.29
>decitex 232.56, not for retail sale
5205 23 Cotton yarn, 85% cotton, single, combed, 232.56
>decitex 192.31, not for retail sale
5205 24 Cotton yarn, 85% cotton, single, combed, 192.31
>decitex 125, not for retail sale
5205 25 Cotton yarn, 85% cotton, single, combed, <125
decitex, not for retail sale
5205 31 Cotton yarn, 85% cotton, multiple, uncombed,
714.29 decitex, not for retail sale, nes
5205 32 Cotton yarn, 85% cotton, multiple, uncombed,
714.29 >decitex 232.56, not for retail sale, nes
5205 33 Cotton yarn, 85% cotton, multiple, uncombed,
232.56 >decitex 192.31, not for retail sale, nes
5205 34 Cotton yarn, 85% cotton, multiple, uncombed,
192.31 >decitex 125, not for retail sale, nes
5205 35 Cotton yarn, 85% cotton, multiple, uncombed, <125
decitex, not for retail sale, nes
5205 41 Cotton yarn, 85% cotton, multiple, combed, 714.29
decitex, not for retail sale, nes
5205 42 Cotton yarn, 85% cotton, multiple, combed, 714.29
>decitex 232.56, not for retail sale, nes
5205 43 Cotton yarn, 85% cotton, multiple, combed, 232.56
>decitex 192.31, not for retail sale, nes
5205 44 Cotton yarn, 85% cotton, multiple, combed, 192.31
>decitex 125, not for retail sale, nes
5205 45 Cotton yarn, 85% cotton, multiple, combed, <125
decitex, not for retail sale, nes
5206 11 Cotton yarn, <85% cotton, single, uncombed,
714.29, not for retail sale
5206 12 Cotton yarn, <85% cotton, single, uncombed, 714.29
>decitex 232.56, not for retail sale
5206 13 Cotton yarn, <85% cotton, single, uncombed, 232.56
>decitex 192.31, not for retail sale
Annex 300-B
HS No. Description HS No. Description
5206 14 Cotton yarn, <85% cotton, single, uncombed, 192.31
>decitex 125, not for retail sale
5206 15 Cotton yarn, <85% cotton, single, uncombed, <125
decitex, not for retail sale
5206 21 Cotton yarn, <85% cotton, single, combed, 714.29
decitex, not for retail sale
5206 22 Cotton yarn, <85% cotton, single, combed, 714.29
>decitex 232.56, not for retail sale
5206 23 Cotton yarn, <85% cotton, single, combed, 232.56
>decitex 192.31, not for retail sale
5206 24 Cotton yarn, <85% cotton, single, combed, 192.31
>decitex 125, not for retail sale
5206 25 Cotton yarn, <85% cotton, single, combed, <125
decitex, not for retail sale
5206 31 Cotton yarn, <85% cotton, multiple, uncombed,
714.29, not for retail sale, nes
5206 32 Cotton yarn, <85% cotton, multiple, uncombed,
714.29 >decitex 232.56, not for retail sale, nes
5206 33 Cotton yarn, <85% cotton, multiple, uncombed,
232.56 >decitex 192.31, not for retail sale, nes
5206 34 Cotton yarn, <85% cotton, multiple, uncombed,
192.31 >decitex 125, not for retail sale, nes
5206 35 Cotton yarn, <85% cotton, multiple, uncombed, <125
decitex, not for retail sale, nes
5206 41 Cotton yarn, <85% cotton, multiple, combed,
714.29, not for retail sale, nes
5206 42 Cotton yarn, <85% cotton, multiple, combed, 714.29
>decitex 232.56, not for retail sale, nes
5206 43 Cotton yarn, <85% cotton, multiple, combed, 232.56
>decitex 192.31, not for retail sale, nes
5206 44 Cotton yarn, <85% cotton, multiple, combed, 192.31
>decitex 125, not for retail sale, nes
5206 45 Cotton yarn, <85% cotton, multiple, combed, <125
decitex, not for retail sale, nes
5207 10 Cotton yarn (other than sewing thread) 85% cotton,
for retail sale
5207 90 Cotton yarn (other than sewing thread) <85% cotton,
for retail sale
5208 11 Plain weave cotton fabric, 85% cotton, 100g/m2,
unbleached
5208 12 Plain weave cotton fabric, 85% cotton, >100g/m2,
200g/m2, unbleached
5208 13 Twill weave cotton fabric, 85% cotton, 200g/m2,
unbleached
5208 19 Woven fabric of cotton, 85% cotton, 200g/m2,
unbleached, nes
Annex 300-B
HS No. Description HS No. Description
5208 21 Plain weave cotton fabric, 85% cotton, 100g/m2,
bleached
5208 22 Plain weave cotton fabric, 85% cotton, >100g/m2,
200g/m2, bleached
5208 23 Twill weave cotton fabric, 85% cotton, 200g/m2,
bleached
5208 29 Woven fabric of cotton, 85% cotton, 200g/m2,
bleached, nes
5208 31 Plain weave cotton fabric, 85% cotton, 100g/m2,
dyed
5208 32 Plain weave cotton fabric, 85% cotton, >100g/m2,
200g/m2, dyed
5208 33 Twill weave cotton fabric, 85% cotton, 200g/m2,
dyed
5208 39 Woven fabric of cotton, 85% cotton, 200g/m2,
dyed, nes
5208 41 Plain weave cotton fabric, 85% cotton, 100g/m2,
yarn dyed
5208 42 Plain weave cotton fabric, 85% cotton, >100g/m2,
200 g/m2, yarn dyed
5208 43 Twill weave cotton fabric, 85% cotton, 200g/m2,
yarn dyed
5208 49 Woven fabric of cotton, 85% cotton, 200g/m2, yarn
dyed, nes
5208 51 Plain weave cotton fabric, 85% cotton, 100g/m2,
printed
5208 52 Plain weave cotton fabric, 85% cotton, >100g/m2,
200 g/m2, printed
5208 53 Twill weave cotton fabric, 85% cotton, 200g/m2,
printed
5208 59 Woven fabric of cotton, 85% cotton, 200g/m2,
printed, nes
5209 11 Plain weave cotton fabric, 85% cotton, >200g/m2,
unbleached
5209 12 Twill weave cotton fabric, 85% cotton, >200g/m2,
unbleached
5209 19 Woven fabric of cotton, 85% cotton, >200g/m2,
unbleached, nes
5209 21 Plain weave cotton fabric, 85% cotton, >200g/m2,
bleached
5209 22 Twill weave cotton fabric, 85% cotton, >200g/m2,
bleached
5209 29 Woven fabric of cotton, 85% cotton, >200g/m2,
bleached, nes
5209 31 Plain weave cotton fabric, 85% cotton, >200g/m2,
dyed
Annex 300-B
HS No. Description HS No. Description
5209 32 Twill weave cotton fabric, 85% cotton, >200g/m2,
dyed
5209 39 Woven fabric of cotton, 85% cotton, >200g/m2,
dyed, nes
5209 41 Plain weave cotton fabric, 85% cotton, >200g/m2,
yarn dyed
5209 42 Blue denim fabric of cotton, 85% cotton, >200g/m2
5209 43 Twill weave cotton fabric, other than denim, 85%
cotton, >200g/m2, yarn dyed
5209 49 Woven fabric of cotton, 85% cotton, >200g/m2, yarn
dyed, nes
5209 51 Plain weave cotton fabric, 85% cotton, >200g/m2,
printed
5209 52 Twill weave cotton fabric, 85% cotton, >200g/m2,
printed
5209 59 Woven fabric of cotton, 85% cotton, >200g/m2,
printed, nes
5210 11 Plain weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, unbleached
5210 12 Twill weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, unbleached
5210 19 Woven fabric of cotton, <85% cotton, with man-made
fiber, 200g/m2, unbleached, nes
5210 21 Plain weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, bleached
5210 22 Twill weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, bleached
5210 29 Woven fabric of cotton, <85% cotton, with man-made
fiber, 200g/m2, bleached, nes
5210 31 Plain weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, dyed
5210 32 Twill weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, dyed
5210 39 Woven fabric of cotton, <85% cotton, with man-made
fiber, 200g/m2, dyed, nes
5210 41 Plain weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, yarn dyed
5210 42 Twill weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, yarn dyed
5210 49 Woven fabric of cotton, <85% cotton, with man-made
fiber, 200g/m2, yarn dyed, nes
5210 51 Plain weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, printed
5210 52 Twill weave cotton fabric, <85% cotton, with man-
made fiber, 200g/m2, printed
5210 59 Woven fabric of cotton, <85% cotton, with man-made
fiber, 200g/m2, printed, nes
Annex 300-B
HS No. Description HS No. Description
5211 11 Plain weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, unbleached
5211 12 Twill weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, unbleached
5211 19 Woven fabric of cotton, <85% cotton, with man-made
fiber, >200g/m2, unbleached, nes
5211 21 Plain weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, bleached
5211 22 Twill weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, bleached
5211 29 Woven fabric of cotton, <85% cotton, with man-made
fiber, >200g/m2, bleached, nes
5211 31 Plain weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, dyed
5211 32 Twill weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, dyed
5211 39 Woven fabric of cotton, <85% cotton, with man-made
fiber, >200g/m2, dyed, nes
5211 41 Plain weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, yarn dyed
5211 42 Blue denim fabric of cotton, <85% cotton, with man-
made fiber, >200g/m2
5211 43 Twill weave cotton fabric, other than denim, <85%
cotton, with man-made fiber, >200g/m2, yarn dyed
5211 49 Woven fabric of cotton, <85% cotton, with man-made
fiber, >200g/m2, yarn dyed, nes
5211 51 Plain weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, printed
5211 52 Twill weave cotton fabric, <85% cotton, with man-
made fiber, >200g/m2, printed
5211 59 Woven fabric of cotton, <85% cotton, with man-made
fiber, >200g/m2, printed, nes
5212 11 Woven fabric of cotton, weighing 200g/m2,
unbleached, nes
5212 12 Woven fabric of cotton, weighing 200g/m2,
bleached, nes
5212 13 Woven fabric of cotton, weighing 200g/m2, dyed,
nes
5212 14 Woven fabric of cotton, 200g/m2, of yarns of
different colors, nes
5212 15 Woven fabric of cotton, weighing 200g/m2, printed,
nes
5212 21 Woven fabric of cotton, weighing >200g/m2,
unbleached, nes
5212 22 Woven fabric of cotton, weighing >200g/m2,
bleached, nes
Annex 300-B
HS No. Description HS No. Description
5212 23 Woven fabric of cotton, weighing >200g/m2, dyed,
nes
5212 24 Woven fabric of cotton, >200g/m2, of yarns of
different colors, nes
5212 25 Woven fabric of cotton, weighing >200g/m2, printed,
nes
Chapter 53 Other vegetable textile fibers; paper yarn and
woven fabric of paper yarn
5306 10 Flax yarn, single
5306 20 Flax yarn, multiple
5307 10 Yarn of jute or of other textile bast fibers,
single
5307 20 Yarn of jute or other textile bast fibers, multiple
5308 20 True hemp yarn
5308 90 Yarn of other vegetable textile fibers
5309 11 Woven fabric, 85% flax, unbleached or bleached
5309 19 Woven fabric, 85% flax, other than unbleached or
bleached
5309 21 Woven fabric of flax, <85% flax, unbleached or
bleached
5309 29 Woven fabric of flax, <85% flax, other than
unbleached or bleached
5310 10 Woven fabric of jute or of other textile bast
fibers, unbleached
5310 90 Woven fabric of jute or of other textile bast
fibers, other than unbleached
5311 00 Woven fabric of other vegetable textile fibers;
woven fabric of paper yarn
Chapter 54 Man-made filaments
5401 10 Sewing thread of synthetic filaments
5401 20 Sewing thread of artificial filaments
5402 10 High tenacity yarn (other than sewing thread),
nylon or other polyamide fiber, not for retail sale
5402 20 High tenacity yarn (other than sewing thread), of
polyester filaments, not for retail sale
5402 31 Textured yarn nes, of nylon or other polyamide
fiber, 50 tex/single yarn, not for retail sale
5402 32 Textured yarn nes, of nylon or other polyamide
fiber,>50 tex/single yarn, not for retail sale
5402 33 Textured yarn nes, of polyester filaments, not for
retail sale
Annex 300-B
HS No. Description HS No. Description
5402 39 Textured yarn of synthetic filaments, nes, not for
retail sale
5402 41 Yarn of nylon or other polyamide fiber, single,
untwisted, nes, not for retail sale
5402 42 Yarn of polyester filaments, partially oriented,
single, nes, not for retail sale
5402 43 Yarn of polyester filaments, single, untwisted,
nes, not for retail sale
5402 49 Yarn of synthetic filaments, single, untwisted,
nes, not for retail sale
5402 51 Yarn of nylon or other polyamide fiber, single, >50
turns per meter, not for retail sale
5402 52 Yarn of polyester filaments, single, >50 turns per
meter, not for retail sale
5402 59 Yarn of synthetic filaments, single, >50 turns per
meter, nes, not for retail sale
5402 61 Yarn of nylon or other polyamide fiber, multiple,
nes, not for retail sale
5402 62 Yarn of polyester filaments, multiple, nes, not for
retail sale
5402 69 Yarn of synthetic filaments, multiple, nes, not for
retail sale
5403 10 High tenacity yarn (other than sewing thread), of
viscose rayon filaments, not for retail sale
5403 20 Textured yarn nes, of artificial filaments, not for
retail sale
5403 31 Yarn of viscose rayon filaments, single, untwisted,
nes, not for retail sale
5403 32 Yarn of viscose rayon filaments, single, >120 turns
per meter, nes, not for retail sale
5403 33 Yarn of cellulose acetate filaments, single, nes,
not for retail sale
5403 39 Yarn of artificial filaments, single, nes, not for
retail sale
5403 41 Yarn of viscose rayon filaments, multiple, nes, not
for retail sale
5403 42 Yarn of cellulose acetate filaments, multiple, nes,
not for retail sale
5403 49 Yarn of artificial filaments, multiple, nes, not
for retail sale
5404 10 Synthetic monofilament, 67 decitex, no cross
sectional dimension >1 mm
5404 90 Strip and the like of synthetic textile material of
an apparent width 5mm
5405 00 Artificial monofil, 67 decitex, cross sectional
dimension >1mm; strip of art. tex. mat. width 5mm
Annex 300-B
HS No. Description HS No. Description
5406 10 Yarn of synthetic filaments (other than sewing
thread), for retail sale
5406 20 Yarn of artificial filaments (other than sewing
thread), for retail sale
5407 10 Woven fabric of high tenacity filament yarn of
nylon or other polyamides, or polyester
5407 20 Woven fabric obtained from strip or the like of
synthetic textile materials
5407 30 Fabric specified in Note 9 Section XI (layers of
parallel synthetic textile yarn)
5407 41 Woven fabric, 85% nylon or other polyamide
filaments, unbleached or bleached, nes
5407 42 Woven fabric, 85% nylon or other polyamide
filaments, dyed, nes
5407 43 Woven fabric, 85% nylon or other polyamide
filaments, yarn dyed, nes
5407 44 Woven fabric, 85% nylon or other polyamide
filaments, printed, nes
5407 51 Woven fabric, 85% textured polyester filaments,
unbleached or bleached, nes
5407 52 Woven fabric, 85% textured polyester filaments,
dyed, nes
5407 53 Woven fabric, 85% textured polyester filaments,
yarn dyed, nes
5407 54 Woven fabric, 85% textured polyester filaments,
printed, nes
5407 60 Woven fabric, 85% non-textured polyester
filaments, nes
5407 71 Woven fabric, 85% synthetic filaments, unbleached
or bleached, nes
5407 72 Woven fabric, 85% synthetic filaments, dyed, nes
5407 73 Woven fabric, 85% synthetic filaments, yarn dyed,
nes
5407 74 Woven fabric, 85% synthetic filaments, printed,
nes
5407 81 Woven fabric of synthetic filaments, <85% syn.
filaments, with cotton, unbl or bl, nes
5407 82 Woven fabric of synthetic filaments, <85% with
cotton, dyed, nes
5407 83 Woven fabric of synthetic filaments, <85% with
cotton, yarn dyed, nes
5407 84 Woven fabric of synthetic filaments, <85% with
cotton, printed, nes
5407 91 Woven fabric of synthetic filaments, unbleached or
bleached, nes
5407 92 Woven fabric of synthetic filaments, dyed, nes
5407 93 Woven fabric of synthetic filaments, yarn dyed, nes
Annex 300-B
HS No. Description HS No. Description
5407 94 Woven fabric of synthetic filaments, printed, nes
5408 10 Woven fabric of high tenacity filament yarn of
viscose rayon
5408 21 Woven fabric, 85% artificial filament or strip,
unbleached or bleached, nes
5408 22 Woven fabric, 85% artificial filament or strip,
dyed, nes
5408 23 Woven fabric, 85% artificial filament or strip,
yarn dyed, nes
5408 24 Woven fabric, 85% artificial filament or strip,
printed, nes
5408 31 Woven fabric of artificial filaments, unbleached or
bleached, nes
5408 32 Woven fabric of artificial filaments, dyed, nes
5408 33 Woven fabric of artificial filaments, yarn dyed,
nes
5408 34 Woven fabric of artificial filaments, printed, nes
Chapter 55 Man-made staple fibers
5501 10 Filament tow of nylon or other polyamides
5501 20 Filament tow of polyesters
5501 30 Filament tow of acrylic or modacrylic
5501 90 Synthetic filament tow, nes
5502 00 Artificial filament tow
5503 10 Staple fibers of nylon or other polyamides, not
carded or combed
5503 20 Staple fibers of polyesters, not carded or combed
5503 30 Staple fibers of acrylic or modacrylic, not carded
or combed
5503 40 Staple fibers of polypropylene, not carded or
combed
5503 90 Synthetic staple fibers, not carded or combed, nes
5504 10 Staple fibers of viscose, not carded or combed
5504 90 Artificial staple fibers, other than viscose, not
carded or combed
5505 10 Waste of synthetic fibers
5505 20 Waste of artificial fibers
5506 10 Staple fibers of nylon or other polyamides, carded
or combed
5506 20 Staple fibers of polyesters, carded or combed
5506 30 Staple fibers of acrylic or modacrylic, carded or
combed
5506 90 Synthetic staple fibers, carded or combed, nes
5507 00 Artificial staple fibers, carded or combed
5508 10 Sewing thread of synthetic staple fibers
5508 20 Sewing thread of artificial staple fibers
Annex 300-B
HS No. Description HS No. Description
5509 11 Yarn, 85% nylon or other polyamide staple fibers,
single, not for retail sale
5509 12 Yarn, 85% nylon or other polyamide staple fibers,
multiple, not for retail sale, nes
5509 21 Yarn, 85% of polyester staple fibers, single, not
for retail sale
5509 22 Yarn, 85% of polyester staple fibers, multiple,
not for retail sale, nes
5509 31 Yarn, 85% of acrylic or modacrylic staple fibers,
single, not for retail sale
5509 32 Yarn, 85% acrylic/modacrylic staple fibers,
multiple, not for retail sale, nes
5509 41 Yarn, 85% of other synthetic staple fibers,
single, not for retail sale
5509 42 Yarn, 85% of other synthetic staple fibers,
multiple, not for retail sale, nes
5509 51 Yarn of polyester staple fibers mixed with
artificial staple fiber, not for retail sale, nes
5509 52 Yarn of polyester staple fiber mixed with wool or
fine animal hair, not for retail sale, nes
5509 53 Yarn of polyester staple fibers mixed with cotton,
not for retail sale, nes
5509 59 Yarn of polyester staple fibers, not for retail
sale, nes
5509 61 Yarn of acrylic staple fiber mixed with wool or
fine animal hair, not for retail sale, nes
5509 62 Yarn of acrylic staple fibers mixed with cotton,
not for retail sale, nes
5509 69 Yarn of acrylic staple fibers, not for retail sale,
nes
5509 91 Yarn of other synthetic staple fibers mixed with
wool or fine animal hair, not for retail sale, nes
5509 92 Yarn of other synthetic staple fibers mixed with
cotton, not for retail sale, nes
5509 99 Yarn of other synthetic staple fibers, not for
retail sale, nes
5510 11 Yarn, 85% of artificial staple fibers, single, not
for retail sale
5510 12 Yarn, 85% of artificial staple fibers, multiple,
not for retail sale, nes
5510 20 Yarn of artificial staple fiber mixed with
wool/fine animal hair, not for retail sale, nes
5510 30 Yarn of artificial staple fibers mixed with cotton,
not for retail sale, nes
5510 90 Yarn of artificial staple fibers, not for retail
sale, nes
Annex 300-B
HS No. Description HS No. Description
5511 10 Yarn, 85% of synthetic staple fibers, other than
sewing thread, for retail sale
5511 20 Yarn, <85% of synthetic staple fibers, for retail
sale, nes
5511 30 Yarn of artificial fibers (other than sewing
thread), for retail sale
5512 11 Woven fabric, 85% of polyester staple fibers,
unbleached or bleached
5512 19 Woven fabric, 85% of polyester staple fibers,
other than unbleached or bleached
5512 21 Woven fabric, 85% of acrylic staple fibers,
unbleached or bleached
5512 29 Woven fabric, 85% of acrylic staple fibers, other
than unbleached or bleached
5512 91 Woven fabric, 85% of other synthetic staple
fibers, unbleached or bleached
5512 99 Woven fabric, 85% of other synthetic staple
fibers, other than unbleached or bleached
5513 11 Plain weave polyester fabric, <85% syn stple fiber,
with cot, 170g/m2, unbl or bl
5513 12 Twill weave polyester staple fiber fabric, <85%
syn. staple fiber, with cotton, 170g/m2, unbl or
bl
5513 13 Woven polyester fabric, <85% synthetic stple fiber,
with cotton, 170g/m2, unbl or bl, nes
5513 19 Woven fabric of other synthetic staple fiber, <85%
syn. stpl fib, with cotton, 170g/m2, unbl or bl
5513 21 Plain weave polyester staple fiber fabric,<85%
synthetic staple fiber, with cotton, 170g/m2, dyed
5513 22 Twill weave polyester staple fiber fabric,<85%
synthetic staple fiber, with cotton, 170g/m2, dyed
5513 23 Woven fabric of polyester staple fiber, <85% syn.
staple fiber, with cotton, 170g/m2, dyed, nes
5513 29 Woven fabric of other synthetic staple fiber, <85%
syn. staple fiber, with cotton, 170g/m2, dyed
5513 31 Plain weave polyester staple fiber fabric, <85%
syn. staple fiber, with cotton, 170g/m2, yarn dyed
5513 32 Twill weave polyester staple fiber fabric, <85%
syn. staple fiber, with cotton, 170g/m2, yarn dyed
5513 33 Woven fabric of polyester staple fiber, <85% syn.
staple fiber, with cotton, 170g/m2, dyed nes
5513 39 Woven fabric of other synthetic staple fiber, <85%
syn. staple fiber, with cotton, 170g/m2, yarn dyed
5513 41 Plain weave polyester staple fiber fabric, <85%
syn. stpl fiber, with cotton, 170g/m2, printed
5513 42 Twill weave polyester staple fiber fabric, <85%
syn. staple fiber, with cotton, <=/170g/m2, printed
Annex 300-B
HS No. Description HS No. Description
5513 43 Woven fabric of polyester staple fiber, <85% syn
staple fiber, with cotton, 170g/m2, printed, nes
5513 49 Woven fabric of other synthetic staple fiber, <85%
syn. staple fiber, with cotton, 170g/m2, printed
5514 11 Plain weave polyester staple fiber fabric, <85%
syn. staple fiber, with cotton, >170g/m2, unbl or
bl
5514 12 Twill weave polyester staple fiber fabric, <85%
syn. staple fiber, with cotton, >170g/m2, unbl or
bl
5514 13 Woven fabric of polyester staple fiber, <85% syn.
stpl fiber, with cotton, >170g/m2, unbl or bl, nes
5514 19 Woven fabric of other synthetic staple fiber, <85%
syn stpl. fib, with cotton, >170g/m2, unbl or bl
5514 21 Plain weave polyester staple fiber fabric, <85% syn
staple fiber, with cotton, >170g/m2, dyed
5514 22 Twill weave polyester staple fiber fabric, <85%
synthetic staple fiber, with cotton, >170g/m2, dyed
5514 23 Woven fabric of polyester staple fiber, <85%
synthetic staple fiber, with cotton, >170g/m2, dyed
5514 29 Woven fabric of other synthetic staple fiber, <85%
synthetic staple fiber, with cotton, >170g/m2, dyed
5514 31 Plain weave polyester staple fiber fabric, <85%
syn. staple fiber, with cotton, >170g/m2, yarn dyed
5514 32 Twill weave polyester staple fiber fabric, <85%
mixed with cotton, >170g/m2, yarn dyed
5514 33 Woven fabric of polyester staple fiber, <85% syn.
staple fiber, with cotton, >170g/m2, yarn dyed nes
5514 39 Woven fabric of other synthetic staple fiber, <85%
syn. stpl fiber, with cotton, >170g/m2, yarn dyed
5514 41 Plain weave polyester staple fiber fabric, <85%
synthetic staple fiber, with cotton, >170g/m2,
printed
5514 42 Twill weave polyester staple fiber fabric, <85%
synthetic staple fiber, with cotton, >170g/m2,
printed
5514 43 Woven fabric of polyester staple fibers <85% syn.
staple fiber, with cotton, >170g/m2, printed, nes
5514 49 Woven fabric of other synthetic staple fiber, <85%
syn. staple fiber, with cotton, >170g/m2, printed
5515 11 Woven fabric of polyester staple fiber, with
viscose rayon staple fiber, nes
5515 12 Woven fabric of polyester staple fiber, with man-
made filaments, nes
5515 13 Woven fabric of polyester staple fiber, with wool
or fine animal hair, nes
5515 19 Woven fabric of polyester staple fiber, nes
Annex 300-B
HS No. Description HS No. Description
5515 21 Woven fabric of acrylic staple fiber, with man-made
filaments, nes
5515 22 Woven fabric of acrylic staple fiber, with wool or
fine animal hair, nes
5515 29 Woven fabric of acrylic or modacrylic staple
fibers, nes
5515 91 Woven fabric of other synthetic staple fiber, with
man-made filaments, nes
5515 92 Woven fabric of other synthetic staple fiber, with
wool or fine animal hair, nes
5515 99 Woven fabric of synthetic staple fibers, nes
5516 11 Woven fabric, 85% artificial staple fiber,
unbleached or bleached
5516 12 Woven fabric, 85% artificial staple fiber, dyed
5516 13 Woven fabric, 85% artificial staple fiber, yarn
dyed
5516 14 Woven fabric, 85% artificial staple fiber, printed
5516 21 Woven fabric of artificial staple fiber, <85%
artificial staple fiber, with man-made fib, unbl or
bl
5516 22 Woven fabric of artificial staple fiber, <85%
artificial staple fiber, with man-made fib, dyed
5516 23 Woven fabric of artificial staple fiber, <85%
artificial staple fiber, with man-made fib, yarn
dyed
5516 24 Woven fabric of artificial staple fiber, <85%
artificial staple fiber, with man-made fib, printed
5516 31 Woven fabric of artificial staple fiber, <85% art
stpl fiber, with wool/fine animal hair, unbl or bl
5516 32 Woven fabric of artificial staple fiber, <85% art
staple fiber, with wool/fine animal hair, dyed
5516 33 Woven fabric of artificial staple fiber, <85% art
staple fiber, with wool/fine animal hair, yarn dyed
5516 34 Woven fabric of artificial staple fiber, <85% art
staple fiber, with wool/fine animal hair, printed
5516 41 Woven fabric of artificial staple fiber, <85%
artificial staple fiber, with cotton, unbl or bl
5516 42 Woven fabric of artificial staple fiber, <85%
artificial staple fiber, with cotton, dyed
5516 43 Woven fabric of artificial staple fiber, <85%
artificial staple fiber, with cotton, yarn dyed
5516 44 Woven fabric of artificial staple fiber, <85%
artificial staple fiber, with cotton, printed
5516 91 Woven fabric of artificial staple fiber, unbleached
or bleached, nes
5516 92 Woven fabric of artificial staple fiber, dyed, nes
Annex 300-B
HS No. Description HS No. Description
5516 93 Woven fabric of artificial staple fiber, yarn dyed,
nes
5516 94 Woven fabric of artificial staple fiber, printed,
nes
Chapter 56 Wadding, felt and nonwovens; special yarns, twine,
cordage, ropes and cables and articles thereof
5601 10 Sanitary articles of wadding of textile materials,
including sanitary towels, tampons, and diapers
5601 21 Wadding of cotton and articles thereof, other than
sanitary articles
5601 22 Wadding of man-made fibers and articles thereof,
other than sanitary articles
5601 29 Wedge of other textile materials and articles
thereof, other than sanitary articles
5601 30 Textile flock and dust and mill neps
5602 10 Needleloom felt and stitch-bonded fiber fabric
5602 21 Felt other than needleloom, of wool or fine animal
hair, not impregnated, coated, covered or laminated
5602 29 Felt other than needleloom, of other textile
materials, not impregnated, coated, covered or
laminated
5602 90 Felt of textile materials, nes
5603 00 Nonwovens, whether or not impregnated, coated,
covered or laminated
5604 10 Rubber thread and cord, textile covered
5604 20 High tenacity yarn of polyester, nylon other
polyamide, viscose rayon, impregnated or coated
5604 90 Textile yarn, strip, impregnated, coated, covered
or sheathed with rubber or plastics nes
5605 00 Metalized yarn, being textile yarn combined with
metal thread, strip, or powder
5606 00 Gimped yarn nes; chenille yarn; loop wale-yarn
5607 10 Twine, cordage, ropes and cables, of jute or other
textile bast fibers
5607 21 Binder or baler twine, of sisal or other textile
fibers of the genus Agave
5607 29 Twine nes, cordage, ropes and cables, of sisal
textile fibers
5607 30 Twine, cordage, ropes and cables, of abaca or other
hard (leaf) fibers
5607 41 Binder or baler twine, of polyethylene or
polypropylene
5607 49 Twine nes, cordage, ropes and cables, of
polyethylene or polypropylene
Annex 300-B
HS No. Description HS No. Description
5607 50 Twine, cordage, ropes and cables, of other
synthetic fibers
5607 90 Twine, cordage, ropes and cables, of other
materials
5608 11 Made up fishing nets, of man-made textile materials
5608 19 Knotted netting of twine, cordage, or rope, and
other made up nets of man-made textile materials
5608 90 Knotted netting of twine, cordage, or rope, nes,
and made up nets of other textile materials
5609 00 Articles of yarn, strip, twine, cordage, rope and
cables, nes
Chapter 57 Carpets and other textile floor coverings
5701 10 Carpets of wool or fine animal hair, knotted
5701 90 Carpets of other textile materials, knotted
5702 10 Kelem, Schumacks, Karamanie and similar textile
hand-woven rugs
5702 20 Floor coverings of coconut fibers (coir)
5702 31 Carpets of wool or fine animal hair, of woven pile
construction, not made up, nes
5702 32 Carpets of man-made textile materials, of woven
pile construction, not made up, nes
5702 39 Carpets of other textile materials, of woven pile
construction, not made up, nes
5702 41 Carpets of wool or fine animal hair, of woven pile
construction, made up, nes
5702 42 Carpets of man-made textile materials, of woven
pile construction, made up, nes
5702 49 Carpets of other textile materials, of woven pile
construction, made up, nes
5702 51 Carpets of wool or fine animal hair, woven, not
made up, nes
5702 52 Carpets of man-made textile materials, woven, not
made up, nes
5702 59 Carpets of other textile materials, woven, not made
up, nes
5702 91 Carpets of wool or fine animal hair, woven, made
up, nes
5702 92 Carpets of man-made textile materials, woven, made
up, nes
5702 99 Carpets of other textile materials, woven, made up,
nes
5703 10 Carpets of wool or fine animal hair, tufted
5703 20 Carpets of nylon or other polyamide, tufted
5703 30 Carpets of other man-made textile materials, tufted
5703 90 Carpets of other textile materials, tufted
Annex 300-B
HS No. Description HS No. Description
5704 10 Tiles of felt of textile materials, having a
maximum surface area of 0.3 m2
5704 90 Carpets of felt of textile materials, nes
5705 00 Carpets and other textile floor coverings, nes
Chapter 58 Special woven fabrics; tufted textile fabrics;
lace; tapestries; trimmings; embroidery
5801 10 Woven pile fabric of wool or fine animal hair,
other than terry and narrow fabric
5801 21 Woven uncut weft pile fabric of cotton, other than
terry and narrow fabric
5801 22 Cut corduroy fabric of cotton, other than narrow
fabric
5801 23 Woven weft pile fabric of cotton, nes
5801 24 Woven warp pile fabric of cotton, epingle (uncut),
other than terry and narrow fabric
5801 25 Woven warp pile fabric of cotton, cut, other than
terry and narrow fabric
5801 26 Chenille fabric of cotton, other than narrow fabric
5801 31 Woven uncut weft pile fabric of manmade fibers,
other than terry and narrow fabric
5801 32 Cut corduroy fabric of man-made fibers, other than
narrow fabric
5801 33 Woven weft pile fabric of man-made fibers, nes
5801 34 Woven warp pile fabric of man-made fiber, epingle
(uncut),other than terry and narrow fabric
5801 35 Woven warp pile fabric of man-made fiber, cut,
other than terry and narrow fabric
5801 36 Chenille fabric of man-made fibers, other than
narrow fabric
5801 90 Woven pile fabric and chenille fabric of other
textile materials, other than terry and narrow
fabric
5802 11 Terry toweling and similar woven terry fabric of
cotton, other than narrow fabric, unbleached
5802 19 Terry toweling and similar woven terry fabric of
cotton, other than unbleached or narrow fabric
5802 20 Terry toweling and similar woven terry fabric of
other textile materials, other than narrow fabric
5802 30 Tufted textile fabric, other than products of
heading No 57.03
5803 10 Gauze of cotton, other than narrow fabric
5803 90 Gauze of other textile material, other than narrow
fabric
5804 10 Tulles and other net fabric, not including woven,
knitted or crocheted fabric
Annex 300-B
HS No. Description HS No. Description
5804 21 Mechanically made lace of man-made fiber, in the
piece, in strips or motifs
5804 29 Mechanically made lace of other textile materials,
in the piece, in strips or in motifs
5804 30 Hand-made lace, in the piece, in strips or in
motifs
5805 00 Hand-woven tapestries and needle-worked tapestries,
whether or not made up
5806 10 Narrow woven pile fabric and narrow chenille fabric
5806 20 Narrow woven fabric, containing 5% elastomeric
yarn or rubber thread, nes
5806 31 Narrow woven fabric of cotton, nes
5806 32 Narrow woven fabric of man-made fibers, nes
5806 39 Narrow woven fabric of other textile materials, nes
5806 40 Fabric consisting of warp without weft, assembled
by means of an adhesive
5807 10 Labels, badges and similar woven articles of
textile materials
5807 90 Labels, badges and similar articles, not woven, of
textile materials, nes
5808 10 Braids in the piece
5808 90 Ornamental trimmings in the piece, other than knit;
tassels, pompons and similar articles
5809 00 Woven fabric of metal thread or metalized yarn, for
apparel, and homefurnishings, nes
5810 10 Embroidery without visible ground, in the piece, in
strips or in motifs
5810 91 Embroidery of cotton, in the piece, in strips or in
motifs, nes
5810 92 Embroidery of man-made fibers, in the piece, in
strips or in motifs, nes
5810 99 Embroidery of other textile materials, in the
piece, in strips or motifs, nes
5811 00 Quilted textile products in the piece
Chapter 59 Impregnated, coated, covered, laminated textile
fabric; textile articles suitable for industrial use
5901 10 Textile fabric coated with gum, of a kind used for
outer covers of books or the like
5901 90 Tracing cloth; prepared painting canvas; stiffened
textile fabric for hats, nes
5902 10 Tire cord fabric of high tenacity nylon or other
polyamide yarn
5902 20 Tire cord fabric of high tenacity polyester yarn
5902 90 Tire cord fabric made of high tenacity viscose
rayon yarn
Annex 300-B
HS No. Description HS No. Description
5903 10 Textile fabric impregnated, coated, covered, or
laminated with polyvinyl chloride, nes
5903 20 Textile fabric impregnated, coated, covered, or
laminated with polyurethane, nes
5903 90 Textile fabric impregnated, coated, covered, or
laminated with plastics, nes
5904 10 Linoleum, whether or not cut to shape
5904 91 Floor coverings, other than linoleum, with a base
of needleloom felt or nonwovens
5904 92 Floor coverings, other than linoleum, with other
textile base
5905 00 Textile wall coverings
5906 10 Rubberized textile adhesive tape of a width not
exceeding 20 cm
5906 91 Rubberized textile knitted or crocheted fabric, nes
5906 99 Rubberized textile fabric, nes
5907 00 Textile fabric impregnated, coated, covered, nes;
painted canvas for theater use, backdrops, etc.
5908 00 Textile wicks for lamps, stoves, candles or the
like; gas mantles and knitted gas mantle fabric
5909 00 Textile hosepiping and similar textile tubing
5910 00 Transmission or conveyor belts or belting of
textile material whether or not reinforced
5911 10 Felt and felt-lined woven fabric combined with
rubber, leather, or other material, for technical
uses
5911 20 Textile bolting cloth, whether or not made up
5911 31 Textile fabric, endless or linked, for paper-making
or similar machines, weighing <650 g/m2
5911 32 Textile fabric, endless or linked, for paper-making
or similar machines, weighing 650 g/m2
5911 40 Textile straining cloth used in oil presses or the
like, including of human hair
5911 90 Textile products and articles for technical uses,
nes
Chapter 60 Knitted or crocheted fabrics
6001 10 Long pile knitted or crocheted textile fabric
6001 21 Looped pile knitted or crocheted fabric, of cotton
6001 22 Looped pile knitted or crocheted fabric, of man-
made fibers
6001 29 Looped pile knitted or crocheted fabric, of other
textile materials
6001 91 Pile knitted or crocheted fabric, of cotton, nes
6001 92 Pile knitted or crocheted fabric, of man-made
fiber, nes
Annex 300-B
HS No. Description HS No. Description
6001 99 Pile knitted or crocheted fabric, of other textile
materials, nes
6002 10 Knitted or crocheted textile fabric, w 30 cm, 5% of
elastomeric yarn or rubber thread, nes
6002 20 Knitted or crocheted textile fabric, width not
exceeding 30 cm, nes
6002 30 Knitted or crocheted textile fabric, width > 30 cm,
5% of elastomeric yarn or rubber thread, nes
6002 41 Warp knitted fabric, of wool or fine animal hair,
nes
6002 42 Warp knitted fabric, of cotton, nes
6002 43 Warp knitted fabric, of man-made fibers, nes
6002 49 Warp knitted fabric, of other materials, nes
6002 91 Knitted or crocheted fabric, of wool or of fine
animal hair, nes
6002 92 Knitted or crocheted fabric, of cotton, nes
6002 93 Knitted or crocheted fabric, of manmade fibers, nes
6002 99 Knitted or crocheted fabric, of other materials,
nes
Chapter 61 Articles of apparel and clothing accessories,
knitted or crocheted
6101 10 Men's or boys' overcoats, anoraks, and sim
articles, of wool or fine animal hair, knitted or
crocheted
6101 20 Men's or boys' overcoats, anoraks, and similar
articles, of cotton, knitted or crocheted
6101 30 Men's or boys' overcoats, anoraks, and similar
articles, of man-made fibers, knitted or crocheted
6101 90 Men's or boys' overcoats, anoraks, and sim
articles, of other textile materials, knitted or
crocheted
6102 10 Women's or girls' overcoats, anoraks and sim art,
of wool or fine animal hair, knitted or crocheted
6102 20 Women's or girls' overcoats, anoraks and similar
articles, of cotton, knitted or crocheted
6102 30 Women's or girls' overcoats, anoraks and similar
articles, of man-made fibers, knitted or crocheted
6102 90 Women's or girls' overcoats, anoraks and sim art,
of other textile materials, knitted or crocheted
6103 11 Men's or boys' suits, of wool or fine animal hair,
knitted or crocheted
6103 12 Men's or boys' suits, of synthetic fibers, knitted
or crocheted
6103 19 Men's or boys' suits, of other textile materials,
knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6103 21 Men's or boys' ensembles, of wool or fine animal
hair, knitted or crocheted
6103 22 Men's or boys' ensembles, of cotton, knitted or
crocheted
6103 23 Men's or boys' ensembles, of synthetic fibers,
knitted or crocheted
6103 29 Men's or boys' ensembles, of other textile
materials, knitted or crocheted
6103 31 Men's or boys' jackets and blazers, of wool or fine
animal hair, knitted or crocheted
6103 32 Men's or boys' jackets and blazers, of cotton,
knitted or crocheted
6103 33 Men's or boys' jackets and blazers, of synthetic
fibers, knitted or crocheted
6103 39 Men's or boys' jackets and blazers, of other
textile materials, knitted or crocheted
6103 41 Men's or boys' trousers and shorts, of wool or fine
animal hair, knitted or crocheted
6103 42 Men's or boys' trousers and shorts, of cotton,
knitted or crocheted
6103 43 Men's or boys' trousers and shorts, of synthetic
fibers, knitted or crocheted
6103 49 Men's or boys' trousers and shorts, of other
textile materials, knitted or crocheted
6104 11 Women's or girls' suits, of wool or fine animal
hair, knitted or crocheted
6104 12 Women's or girls' suits, of cotton, knitted or
crocheted
6104 13 Women's or girls' suits, of synthetic fibers,
knitted or crocheted
6104 19 Women's or girls' suits, of other textile
materials, knitted or crocheted
6104 21 Women's or girls' ensembles, of wool or fine animal
hair, knitted or crocheted
6104 22 Women's or girls' ensembles, of cotton, knitted or
crocheted
6104 23 Women's or girls' ensembles, of synthetic fibers,
knitted or crocheted
6104 29 Women's or girls' ensembles, of other textile
materials, knitted or crocheted
6104 31 Women's or girls' jackets, of wool or fine animal
hair, knitted or crocheted
6104 32 Women's or girls' jackets, of cotton, knitted or
crocheted
6104 33 Women's or girls' jackets, of synthetic fibers,
knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6104 39 Women's or girls' jackets, of other textile
materials, knitted or crocheted
6104 41 Women's or girls' dresses, of wool or fine animal
hair, knitted or crocheted
6104 42 Women's or girls' dresses, of cotton, knitted or
crocheted
6104 43 Women's or girls' dresses, of synthetic fibers,
knitted or crocheted
6104 44 Women's or girls' dresses, of artificial fibers,
knitted or crocheted
6104 49 Women's or girls' dresses, of other textile
materials, knitted or crocheted
6104 51 Women's or girls' skirts, of wool or fine animal
hair, knitted or crocheted
6104 52 Women's or girls' skirts, of cotton, knitted or
crocheted
6104 53 Women's or girls' skirts, of synthetic fibers,
knitted or crocheted
6104 59 Women's or girls' skirts, of other textile
materials, knitted or crocheted
6104 61 Women's or girls' trousers and shorts, of wool or
fine animal hair, knitted or crocheted
6104 62 Women's or girls' trousers and shorts, of cotton,
knitted or crocheted
6104 63 Women's or girls' trousers and shorts, of synthetic
fibers, knitted or crocheted
6104 69 Women's or girls' trousers and shorts, of other
textile materials, knitted or crocheted
6105 10 Men's or boys' shirts, of cotton, knitted or
crocheted
6105 20 Men's or boys' shirts, of man-made fibers, knitted
or crocheted
6105 90 Men's or boys' shirts, of other textile materials,
knitted or crocheted
6106 10 Women's or girls' blouses and shirts, of cotton,
knitted or crocheted
6106 20 Women's or girls' blouses and shirts, of man-made
fibers, knitted or crocheted
6106 90 Women's or girls' blouses and shirts, of other
materials, knitted or crocheted
6107 11 Men's or boys' underpants and briefs, of cotton,
knitted or crocheted
6107 12 Men's or boys' underpants and briefs, of man-made
fibers, knitted or crocheted
6107 19 Men's or boys' underpants and briefs, of other
textile materials, knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6107 21 Men's or boys' nightshirts and pajamas, of cotton,
knitted or crocheted
6107 22 Men's or boys' nightshirts and pajamas, of man-made
fibers, knitted or crocheted
6107 29 Men's or boys' nightshirts and pajamas, of other
textile materials, knitted or crocheted
6107 91 Men's or boys' underpants, briefs, robes, and
similar articles of cotton, knitted or crocheted
6107 92 Men's or boys' underpants, briefs, robes, and sim
articles of man-made fibers, knitted or crocheted
6107 99 Men's or boys' underwear, briefs, robes, and sim
art of other textile materials, knitted or
crocheted
6108 11 Women's or girls' slips and petticoats, of man-made
fibers, knitted or crocheted
6108 19 Women's or girls' slips and petticoats, of other
textile materials, knitted or crocheted
6108 21 Women's or girls' briefs and panties, of cotton,
knitted or crocheted
6108 22 Women's or girls' briefs and panties, of man-made
fibers, knitted or crocheted
6108 29 Women's or girls' briefs and panties, of other
textile materials, knitted or crocheted
6108 31 Women's or girls' nightdresses and pajamas, of
cotton, knitted or crocheted
6108 32 Women's or girls' nightdresses and pajamas, of man-
made fibers, knitted or crocheted
6108 39 Women's or girls' nightdresses and pajamas, of
other textile materials, knitted or crocheted
6108 91 Women's or girls' robes, dressing gowns, and
similar articles of cotton, nes, knitted or
crocheted
6108 92 Women's or girls' robes, dressing gowns, and sim
art of man-made fibers, nes, knitted or crocheted
6108 99 Women's or girls' robes, dressing gowns, and sim
art of other tex materials, nes, knitted or
crocheted
6109 10 T-shirts, singlets, tank tops, and similar
garments, of cotton, knitted or crocheted
6109 90 T-shirts, singlets, tank tops, and similar
garments, of other textile materials, knitted or
crocheted
6110 10 Sweaters, pullovers, sweatshirts, and sim articles
of wool or fine animal hair, knitted or crocheted
6110 20 Sweaters, pullovers, sweatshirts, and similar
articles of cotton, knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6110 30 Sweaters, pullovers, sweatshirts, and similar
articles of man-made fibers, knitted or crocheted
6110 90 Sweaters, pullovers, sweatshirts, and sim articles
of other textile materials, knitted or crocheted
6111 10 Babies' garments and clothing accessories of wool
or fine animal hair, knitted or crocheted
6111 20 Babies' garments and clothing accessories of
cotton, knitted or crocheted
6111 30 Babies' garments and clothing accessories of
synthetic fibers, knitted or crocheted
6111 90 Babies' garments and clothing accessories of other
textile materials, knitted or crocheted
6112 11 Track suits, of cotton, knitted or crocheted
6112 12 Track suits, of synthetic fibers, knitted or
crocheted
6112 19 Track suits, of other textile materials, knitted or
crocheted
6112 20 Ski suits, of textile materials, knitted or
crocheted
6112 31 Men's or boys' swimwear, of synthetic fibers,
knitted or crocheted
6112 39 Men's or boys' swimwear, of other textile
materials, knitted or crocheted
6112 41 Women's or girls' swimwear, of synthetic fibers,
knitted or crocheted
6112 49 Women's or girls' swimwear, of other textile
materials, knitted or crocheted
6113 00 Garments made up of impregnated, coated, covered or
laminated textile knitted or crocheted fabric
6114 10 Garments of wool or fine animal hair, knitted or
crocheted, nes
6114 20 Garments of cotton, knitted or crocheted, nes
6114 30 Garments of man-made fibers, knitted or crocheted,
nes
6114 90 Garments of other textile materials, knitted or
crocheted, nes
6115 11 Panty hose and tights, of synthetic fiber yarn, <67
decitex/single yarn, knitted or crocheted
6115 12 Panty hose and tights, of synthetic fiber yarn, 67
decitex/single yarn, knitted or crocheted
6115 19 Panty hose and tights, of other textile materials,
knitted or crocheted
6115 20 Women full or knee length hosiery, of textile yarn,
<67 decitex/single yarn, knitted or crocheted
6115 91 Hosiery nes, of wool or fine animal hair, knitted
or crocheted
6115 92 Hosiery nes, of cotton, knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6115 93 Hosiery nes, of synthetic fibers, knitted or
crocheted
6115 99 Hosiery nes, of other textile materials, knitted or
crocheted
6116 10 Gloves or mittens, impregnated, coated or covered
with plastics or rubber, knitted or crocheted
6116 91 Gloves or mittens, nes, of wool or fine animal
hair, knitted or crocheted
6116 92 Gloves or mittens, nes, of cotton, knitted or
crocheted
6116 93 Gloves or mittens, nes, of synthetic fibers,
knitted or crocheted
6116 99 Gloves or mittens, nes, of other textile materials,
knitted or crocheted
6117 10 Shawls, scarves, veils and the like, of textile
materials, knitted or crocheted
6117 20 Ties, bow ties and cravats, of textile materials,
knitted or crocheted
6117 80 Clothing accessories nes, of textile materials,
knitted or crocheted
6117 90 Parts of garments or clothing accessories, of
textile materials, knitted or crocheted
Chapter 62 Articles of apparel and clothing accessories, not
knitted or crocheted
6201 11 Men's or boys' overcoats, and similar articles of
wool or fine animal hair, not knit
6201 12 Men's or boys' overcoats, and similar articles of
cotton, not knitted or crocheted
6201 13 Men's or boys' overcoats, and similar articles of
man-made fibers, not knitted or crocheted
6201 19 Men's or boys' overcoats, and similar articles of
other textile materials, not knitted or crocheted
6201 91 Men's or boys' anoraks and similar articles, of
wool or fine animal hair, not knitted or crocheted
6201 92 Men's or boys' anoraks and similar articles, of
cotton, not knitted or crocheted
6201 93 Men's or boys' anoraks and similar articles, of
man-made fibers, not knitted or crocheted
6201 99 Men's or boys' anoraks and similar articles, of
other textile materials, not knitted or crocheted
6202 11 Women's or girls' overcoats and similar articles of
wool or fine animal hair not knit
6202 12 Women's or girls' overcoats and similar articles of
cotton, not knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6202 13 Women's or girls' overcoats and similar articles of
man-made fibers, not knitted or crocheted
6202 19 Women's or girls' overcoats and similar articles of
other textile mat, not knit
6202 91 Women's or girls' anoraks and similar article of
wool or fine animal hair, not knit
6202 92 Women's or girls' anoraks and similar article of
cotton, not knitted or crocheted
6202 93 Women's or girls' anoraks and similar article of
man-made fibers, not knitted or crocheted
6202 99 Women's or girls' anoraks and similar article of
other textile materials, not knit
6203 11 Men's or boys' suits, of wool or fine animal hair,
not knitted or crocheted
6203 12 Men's or boys' suits, of synthetic fibers, not
knitted or crocheted
6203 19 Men's or boys' suits, of other textile materials,
not knitted or crocheted
6203 21 Men's or boys' ensembles, of wool or fine animal
hair, not knitted or crocheted
6203 22 Men's or boys' ensembles, of cotton, not knitted or
crocheted
6203 23 Men's or boys' ensembles, of synthetic fibers, not
knitted or crocheted
6203 29 Men's or boys' ensembles, of other textile
materials, not knitted or crocheted
6203 31 Men's or boys' jackets and blazers, of wool or fine
animal hair, not knitted or crocheted
6203 32 Men's or boys' jackets and blazers, of cotton, not
knitted or crocheted
6203 33 Men's or boys' jackets and blazers, of synthetic
fibers, not knitted or crocheted
6203 39 Men's or boys' jackets and blazers, of other
textile materials, not knitted or crocheted
6203 41 Men's or boys' trousers and shorts, of wool or fine
animal hair, not knitted or crocheted
6203 42 Men's or boys' trousers and shorts, of cotton, not
knitted or crocheted
6203 43 Men's or boys' trousers and shorts, of synthetic
fibers, not knitted or crocheted
6203 49 Men's or boys' trousers and shorts, of other
textile materials, not knitted or crocheted
6204 11 Women's or girls' suits, of wool or fine animal
hair, not knitted or crocheted
6204 12 Women's or girls' suits, of cotton, not knitted or
crocheted
Annex 300-B
HS No. Description HS No. Description
6204 13 Women's or girls' suits, of synthetic fibers, not
knitted or crocheted
6204 19 Women's or girls' suits, of other textile
materials, not knitted or crocheted
6204 21 Women's or girls' ensembles, of wool or fine animal
hair, not knitted or crocheted
6204 22 Women's or girls' ensembles, of cotton, not knitted
or crocheted
6204 23 Women's or girls' ensembles, of synthetic fibers,
not knitted or crocheted
6204 29 Women's or girls' ensembles, of other textile
materials, not knitted or crocheted
6204 31 Women's or girls' jackets, of wool or fine animal
hair, not knitted or crocheted
6204 32 Women's or girls' jackets, of cotton, not knitted
or crocheted
6204 33 Women's or girls' jackets, of synthetic fibers, not
knitted or crocheted
6204 39 Women's or girls' jackets, of other textile
materials, not knitted or crocheted
6204 41 Women's or girls' dresses, of wool or fine animal
hair, not knitted or crocheted
6204 42 Women's or girls' dresses, of cotton, not knitted
or crocheted
6204 43 Women's or girls' dresses, of synthetic fibers, not
knitted or crocheted
6204 44 Women's or girls' dresses, of artificial fibers,
not knitted or crocheted
6204 49 Women's or girls' dresses, of other textile
materials, not knitted or crocheted
6204 51 Women's or girls' skirts, of wool or fine animal
hair, not knitted or crocheted
6204 52 Women's or girls' skirts, of cotton, not knitted or
crocheted
6204 53 Women's or girls' skirts, of synthetic fibers, not
knitted or crocheted
6204 59 Women's or girls' skirts, of other textile
materials, not knitted or crocheted
6204 61 Women's or girls' trousers and shorts, of wool or
fine animal hair, not knitted or crocheted
6204 62 Women's or girls' trousers and shorts, of cotton,
not knitted or crocheted
6204 63 Women's or girls' trousers and shorts, of synthetic
fibers, not knitted or crocheted
6204 69 Women's or girls' trousers and shorts, of other
textile materials, not knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6205 10 Men's or boys' shirts, of wool or fine animal hair,
not knitted or crocheted
6205 20 Men's or boys' shirts, of cotton, not knitted or
crocheted
6205 30 Men's or boys' shirts, of man-made fibers, not
knitted or crocheted
6205 90 Men's or boys' shirts, of other textile materials,
not knitted or crocheted
6206 10 Women's or girls' blouses and shirts, of silk or
silk waste, not knitted or crocheted
6206 20 Women's or girls' blouses and shirts, of wool or
fine animal hair, not knitted or crocheted
6206 30 Women's or girls' blouses and shirts, of cotton,
not knitted or crocheted
6206 40 Women's or girls' blouses and shirts, of man-made
fibers, not knitted or crocheted
6206 90 Women's or girls' blouses and shirts, of other
textile materials, not knitted or crocheted
6207 11 Men's or boys' underpants and briefs, of cotton,
not knitted or crocheted
6207 19 Men's or boys' underpants and briefs, of other
textile materials, not knitted or crocheted
6207 21 Men's or boys' nightshirts and pajamas, of cotton,
not knitted or crocheted
6207 22 Men's or boys' nightshirts and pajamas, of man-made
fibers, not knitted or crocheted
6207 29 Men's or boys' nightshirts and pajamas, of other
textile materials, not knitted or crocheted
6207 91 Men's or boys' robes, dressing gowns, and similar
articles of cotton, not knitted or crocheted
6207 92 Men's or boys' robes, dressing gowns, and sim art
of man-made fibers, not knitted or crocheted
6207 99 Men's or boys' robes, dressing gowns, and similar
articles of other textile materials, not knit
6208 11 Women's or girls' slips and petticoats, of man-made
fibers, not knitted or crocheted
6208 19 Women's or girls' slips and petticoats, of other
textile materials, not knitted or crocheted
6208 21 Women's or girls' nightdresses and pajamas, of
cotton, not knitted or crocheted
6208 22 Women's or girls' nightdresses and pajamas, of man-
made fibers, not knitted or crocheted
6208 29 Women's or girls' nightdresses and pajamas, of
other textile materials, not knitted or crocheted
6208 91 Women's or girls' panties, robes, and similar
articles of cotton, not knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6208 92 Women's or girls' panties, robes, and similar
articles of man-made fibers, not knitted or
crocheted
6208 99 Women's or girls' panties, robes, and sim art of
other textile materials, not knitted or crocheted
6209 10 Babies' garments and clothing accessories of wool
or fine animal hair, not knitted or crocheted
6209 20 Babies' garments and clothing accessories of
cotton, not knitted or crocheted
6209 30 Babies' garments and clothing accessories of
synthetic fibers, not knitted or crocheted
6209 90 Babies' garments and clothing accessories of other
textile materials, not knitted or crocheted
6210 10 Garments made up of textile felts and of nonwoven
textile fabric
6210 20 Men's or boys' overcoats and similar articles of
impreg, coated, covered etc, textile fabric
6210 30 Women's or girls' overcoats and sim art, of
impregnated, coated, covered, or laminated woven
fabric
6210 40 Men's or boys' garments nes, made up of
impregnated, coated, covered, or laminated woven
fabric
6210 50 Women's or girls' garments nes, of impregnated,
coated, covered, or laminated woven fabric
6211 11 Men's or boys' swimwear, of textile materials not
knitted or crocheted
6211 12 Women's or girls' swimwear, of textile materials,
not knitted or crocheted
6211 20 Ski suits, of textile materials, not knitted or
crocheted
6211 31 Men's or boys' garments nes, of wool or fine animal
hair, not knitted or crocheted
6211 32 Men's or boys' garments nes, of cotton, not knitted
or crocheted
6211 33 Men's or boys' garments nes, of man-made fibers,
not knitted or crocheted
6211 39 Men's or boys' garments nes, of other textile
materials, not knitted or crocheted
6211 41 Women's or girls' garments nes, of wool or fine
animal hair, not knitted or crocheted
6211 42 Women's or girls' garments nes, of cotton, not
knitted or crocheted
6211 43 Women's or girls' garments nes, of man-made fibers,
not knitted or crocheted
6211 49 Women's or girls' garments nes, of other textile
materials, not knitted or crocheted
Annex 300-B
HS No. Description HS No. Description
6212 10 Brassieres and parts thereof, of textile materials,
whether or not knitted or crocheted
6212 20 Girdles, panty girdles and parts thereof, of
textile materials, whether or not crocheted
6212 30 Corselettes and parts thereof, of textile
materials, whether or not knitted or crocheted
6212 90 Corsets, braces and sim articles and parts, of
textile materials, whether or not knitted or
crocheted
6213 10 Handkerchiefs, of silk or silk waste, not knitted
or crocheted
6213 20 Handkerchiefs, of cotton, not knitted or crocheted
6213 90 Handkerchiefs, of other textile materials, not
knitted or crocheted
6214 10 Shawls, scarves, veils and the like, of silk or
silk waste, not knitted or crocheted
6214 20 Shawls, scarves, veils and the like, of wool or
fine animal hair, not knitted or crocheted
6214 30 Shawls, scarves, veils and the like, of synthetic
fibers, not knitted or crocheted
6214 40 Shawls, scarves, veils and the like, of artificial
fibers, not knitted or crocheted
6214 90 Shawls, scarves, veils and the like, of other
textile materials, not knitted or crocheted
6215 10 Ties, bow ties and cravats, of silk or silk waste,
not knitted or crocheted
6215 20 Ties, bow ties and cravats, of man-made fibers, not
knitted or crocheted
6215 90 Ties, bow ties and cravats, of other textile
materials, not knitted or crocheted
6216 00 Gloves, mittens and mitts, of textile materials,
not knitted or crocheted
6217 10 Clothing accessories of textile materials, not
knitted or crocheted, nes
6217 90 Parts of garments or of clothing accessories of
textile materials, not knitted or crocheted, nes
Chapter 63 Other made up textile articles; needlecraft sets;
worn clothing and worn textile articles; rags
6301 10 Electric blankets, of textile materials
6301 20 Blankets (other than electric) and traveling rugs,
of wool or fine animal hair
6301 30 Blankets (other than electric) and traveling rugs,
of cotton
6301 40 Blankets (other than electric) and traveling rugs,
of synthetic fibers
Annex 300-B
HS No. Description HS No. Description
6301 90 Blankets (other than electric) and traveling rugs,
of other textile materials
6302 10 Bed linen, of textile knitted or crocheted or
crocheted materials
6302 21 Bed linen, of cotton, printed, not knitted or
crocheted
6302 22 Bed linen, of man-made fibers, printed, not knitted
or crocheted
6302 29 Bed linen, of other textile materials, printed, not
knitted or crocheted
6302 31 Bed linen, of cotton, nes
6302 32 Bed linen, of man-made fibers, nes
6302 39 Bed linen, of other textile materials, nes
6302 40 Table linen, of textile knitted or crocheted
materials
6302 51 Table linen, of cotton, not knitted or crocheted
6302 52 Table linen, of flax, not knitted or crocheted
6302 53 Table linen, of man-made fibers, not knitted or
crocheted
6302 59 Table linen, of other textile materials, not
knitted or crocheted
6302 60 Toilet and kitchen linen, of terry toweling or
similar terry fabric, of cotton
6302 91 Toilet and kitchen linen, of cotton, nes
6302 92 Toilet and kitchen linen, of flax
6302 93 Toilet and kitchen linen, of man-made fibers
6302 99 Toilet and kitchen linen, of other textile
materials
6303 11 Curtains, interior blinds and curtain or bed
valances, of cotton, knitted or crocheted
6303 12 Curtains, interior blinds and curtain or bed
valances, of synthetic fiber, knitted or crocheted
6303 19 Curtains, interior blinds and curtain or bed
valances, other textile materials, knitted or
crocheted
6303 91 Curtains, interior blinds and curtain or bed
valances, of cotton, not knitted or crocheted
6303 92 Curtains, interior blinds and curtain or bed
valances, of synthetic fiber, not knitted or
crocheted
6303 99 Curtains, interior blinds and curtain or bed
valances, of other tex mat, not knitted or
crocheted
6304 11 Bedspreads of textile materials, nes, knitted or
crocheted
6304 19 Bedspreads of textile materials, nes, not knitted
or crocheted
Annex 300-B
HS No. Description HS No. Description
6304 91 Furnishing articles nes, of textile materials,
knitted or crocheted
6304 92 Furnishing articles nes, of cotton, not knitted or
crocheted
6304 93 Furnishing articles nes, of synthetic fibers, not
knitted or crocheted
6304 99 Furnishing articles nes, of other textile
materials, not knitted or crocheted
6305 10 Sacks and bags of jute or of other textile bast
fibers
6305 20 Sacks and bags of cotton
6305 31 Sacks and bags polyethylene or polypropylene strips
6305 39 Sacks and bags of other man-made textile materials
6305 90 Sacks and bags of other textile materials
6306 11 Tarpaulins, awnings and sunblinds, of cotton
6306 12 Tarpaulins, awnings and sunblinds, of synthetic
fibers
6306 19 Tarpaulins, awnings and sunblinds, of other textile
materials
6306 21 Tents, of cotton
6306 22 Tents, of synthetic fibers
6306 29 Tents, of other textile materials
6306 31 Sails, of synthetic fibers
6306 39 Sails, of other textile materials
6306 41 Pneumatic mattresses, of cotton
6306 49 Pneumatic mattresses, of other textile materials
6306 91 Camping goods nes, of cotton
6306 99 Camping goods nes, of other textile materials
6307 10 Floor-cloths, dish-cloths, dusters and similar
cleaning cloths, of textile materials
6307 20 Life jackets and life belts, of textile materials
6307 90 Made up articles, of textile materials, nes,
including dress patterns
6308 00 Sets of woven fabric and yarn, for rugs,
tapestries, and similar textile articles, for
retail sale
6309 00 Worn clothing and other worn articles
Chapter 64 Footwear, gaiters, and the like; parts of such
articles
ex 6405 20 Footwear with soles and uppers of wool felt
ex 6406 10 Footwear uppers of which the external surface is
50% textile material
ex 6406 99 Leg warmers and gaiters of textile materials
Chapter 65 Headgear and parts thereof
Annex 300-B
HS No. Description HS No. Description
6501 00 Hat-forms, hat bodies and hoods of felt; plateaux
and manchons of felt
6502 00 Hat-shapes, plaited or made by assembling strips of
any material
6503 00 Felt hats and other felt headgear
6504 00 Hats and other headgear, plaited or made by
assembling strips of any material
6505 90 Hats and other headgear, knitted or made up from
lace, or other textile materials
Chapter 66 Umbrellas, sun umbrellas, walking sticks,
seatsticks, whips, riding-crops and parts thereof
6601 10 Umbrellas and sun umbrellas, garden type
6601 91 Other umbrella types, telescopic shaft
6601 99 Other umbrellas
Chapter 70 Glass and glassware
ex 7019 10 Yarn of fiber glass
7019 20 Woven fabric of fiber glass
Chapter 87 Vehicles other than railway or tramway rolling
stock, and parts and accessories thereof
8708 21 Safety seat belts for motor vehicles
Chapter 88 Aircraft, spacecraft, and parts thereof
8804 00 Parachutes; their parts and accessories
Chapter 91 Clocks and watches and parts thereof
9113 90 Watch straps, bands and bracelets of textile
materials
Chapter 94 Furniture; bedding, mattresses, mattress supports,
cushions and similar stuffed furnishings
ex 9404 90 Pillow and cushions of cotton; quilts; eiderdowns;
comforters and sim articles of textile materials
Chapter 95 Toys, games and sports requisites; parts and
accessories thereof
9502 91 Garments for dolls
Annex 300-B
HS No. Description HS No. Description
Chapter 96 Miscellaneous manufactured articles
ex 9612 10 Woven ribbons, of man-made fibers, other than those
<30 mm wide and permanently in cartridges
Annex 300-B
Appendix 2.1
Tariff Elimination
For purposes of this Appendix, each Party shall apply Section
2(2) to determine whether a textile or apparel good is an
originating good of a particular Party.
A. Trade between Canada and the United States
As required by Article 302, Canada and the United States
each shall progressively eliminate its respective customs
duties on originating textile and apparel goods of the other
Party in accordance with Annex 401.2, as amended, of the Canada
- United States Free Trade Agreement, as incorporated into
Annex 302.2 and as set out in each Party's Schedule to that
Annex.
B. Trade between Mexico and the United States
Except as provided in Schedule 2.1.B, and as required by
Article 302, Mexico and the United States each shall
progressively eliminate its respective customs duties on
originating textile and apparel goods of the other Party, in
accordance with its respective Schedule to Annex 302.2, as
follows:
(a) duties on textile and apparel goods provided for in
the items in staging category A in a Party's
Schedule shall be eliminated entirely and such
goods shall be duty-free, effective January 1,
1994;
(b) duties on textile and apparel goods provided for in
the items in staging category B6 in a Party's
Schedule shall be reduced on January 1, 1994, by an
amount equal, in percentage terms, to the base
rates. Thereafter, duties shall be removed in five
equal annual stages beginning on January 1, 1995,
and such goods shall be duty-free, effective
January 1, 1999;
(c) duties on textile and apparel goods provided for in
the items in staging category C in a Party's
Schedule shall be removed in 10 equal annual stages
Annex 300-B
beginning on January 1, 1994, and such goods shall
be duty-free, effective January 1, 2003; and
(d) if the application of a formula provided in
subparagraph (b) or (c) for staging category B6 or
C results in a duty that exceeds 20 percent ad
valorem during any annual stage, the rate of duty
during that stage shall be 20 percent ad valorem
instead of the rate that otherwise would have
applied.
C. Trade between Canada and Mexico
As required by Article 302, Canada and Mexico each shall
progressively eliminate its respective customs duties on
originating textile and apparel goods of the other Party, in
accordance with its respective Schedule to Annex 302.2, as
follows:
(a) duties on textile and apparel goods provided for in
the items in staging category A in a Party's
Schedule shall be eliminated entirely and such
goods shall be duty-free, effective January 1,
1994;
(b) duties on textile and apparel goods provided for in
the items in staging category Bl in a Party's
Schedule shall be removed in six equal annual
stages beginning on January 1, 1994, and such goods
shall be duty-free, effective January 1, 1999;
(c) duties on textile and apparel goods provided for in
the items in staging category B+ in a Party's
Schedule shall be reduced by the following
percentages of the base rates, beginning on January
1, 1994, and such goods shall be duty-free,
effective January 1, 2001
(i) January 1, 1994, 20 percent
(ii) January 1, 1995, 0 percent
(iii) January 1, 1996, 10 percent
(iv) January 1, 1997, 10 percent
(v) January 1, 1998, 10 percent
(vi) January 1, 1999, 10 percent
(vii) January 1, 2000, 10 percent
(viii) January 1, 2001, 30 percent and
Annex 300-B
(d) duties on textile and apparel goods provided for in
the items in staging category C in a Party's
Schedule shall be removed in 10 equal annual stages
beginning on January 1, 1994, and such goods shall
be duty-free, effective January 1, 2003.
D. Trade between All Parties
Originating textile and apparel goods provided for in the
items in staging category D in a Party's Schedule to Annex
302.2 shall continue to receive duty-free treatment.
Schedule 2.1.B
Exceptions to Tariff Phase-out Formula
Specified in Appendix 2.1
1. The United States shall apply the following rates of duty
on tariff items 5111.11.70, 5111.19.60, 5112.11.20 and
5112.19.90 during the transition period:
1994 25.0%
1995 24.1%
1996 18.0%
1997 12.0%
1998 6.0%
1999 and thereafter 0.0%
2. Mexico shall apply the following rates of duty on tariff
items 5111.11.01, 5111.19.99, 5112.11.01 and 5112.19.99, as
modified to correspond to the U.S. tariff items identified in
paragraph 1, during the transition period:
1994 15.0%
1995 14.5%
1996 10.8%
1997 7.2%
1998 3.6%
1999 and thereafter 0.0%
Annex 300-B
3. The United States shall apply the following rates of duty
on tariff items 5111.20.90, 5111.30.90, 5112.20.30, 5112.30.30,
5407.91.05, 5407.92.05, 5407.93.05, 5407.94.05, 5408.31.05,
5408.32.05, 5408.33.05, 5408.34.05, 5515.13.05, 5515.22.05,
5515.92.05, 5516.31.05, 5516.32.05, 5516.33.05 and 5516.34.05
during the transition period:
1994 25.0%
1995 25.0%
1996 20.0%
1997 13.3%
1998 6.7%
1999 and thereafter 0.0%
4. Mexico shall apply the following rates of duty on tariff
items 5111.20.99, 5111.30.99, 5112.20.01, 5112.30.01,
5407.91.99, 5407.92.99, 5407.93.99, 5407.94.99, 5408.31.99,
5408.32.99, 5408.33.99, 5408.34.99, 5515.13.01, 5515.22.01,
5515.92.01, 5516.31.01, 5516.32.01, 5516.33.01 and 5516.34.01,
as modified to correspond to the U.S. tariff items identified
in paragraph 3, during the transition period:
1994 15.0%
1995 15.0%
1996 12.0%
1997 8.0%
1998 4.0%
1999 and thereafter 0.0%
5. Mexico shall apply the following rates of duty on goods of
subheadings 5703.20 and 5703.30 measuring not more than 5.25
square meters in area, other than nylon hand-hooked, during the
transition period:
1994 20.0%
1995 20.0%
1996 10.0%
1997 6.6%
1998 3.3%
1999 and thereafter 0.0%
Annex 300-B
Appendix 2.4
Tariff Elimination on Certain Textile and Apparel Goods
On January 1, 1994, the United States shall eliminate
customs duties on textile and apparel goods that are assembled
in Mexico from fabrics wholly formed and cut in the United
States and exported from and reimported into the United States
under:
(a) U.S. tariff item 9802.00.80.10; or
(b) Chapter 61, 62 or 63 if, after such assembly, those
goods that would have qualified for treatment under
9802.00.80.10 have been subject to bleaching,
garment dyeing, stone-washing, acid-washing or
perma-pressing.
Thereafter, the United States shall not adopt or maintain any
customs duty on textile and apparel goods of Mexico that
satisfy the requirements of subparagraph (a) or (b) or the
requirements of any successor provision to U.S. tariff item
9802.00.80.10.
Appendix 3.1
Administration of Import and Export Prohibitions,
Restrictions and Consultation Levels
A. Trade between Canada and Mexico and between Mexico and the
United States
1. This Appendix applies to prohibitions, restrictions and
consultation levels on non-originating textile and apparel
goods.
2. An exporting Party whose textile or apparel good is
subject to a prohibition, restriction or consultation level
shall limit its annual exports to the specified limits or
levels, and the importing Party may assist the exporting Party
in implementing the prohibition, restriction or consultation
level by controlling its imports.
Annex 300-B
3. Each Party shall count exports of textile and apparel
goods subject to a restriction or consultation level against
the limit or level:
(a) applicable to the calendar year in which the good
was exported; or
(b) authorized for the following year if such exports
exceed the authorized limit or level for the
calendar year in which the good was exported, if
allowed entry into the territory of the importing
Party.
4. Each exporting Party whose goods are subject to a
restriction or consultation level shall endeavor to space
exports of such goods to the territory of the importing Party
evenly throughout each calendar year, taking into consideration
normal seasonal factors.
5. On written request of an exporting Party whose goods are
subject to a prohibition, restriction or consultation level,
that Party and the importing Party shall consult within 30 days
of receipt of the request on any matter arising from the
implementation of this Appendix.
6. On written request of an exporting Party that considers
the application of a prohibition, restriction or consultation
level under this Annex has placed it in an inequitable position
in relation to another Party or a non-Party, the exporting
Party and importing Party shall consult within 60 days of
receipt of the request to seek a mutually beneficial solution.
7. An importing Party and an exporting Party, at any time by
mutual agreement, may adjust annual Designated Consultation
Levels (DCLs) as follows:
(a) if the exporting Party whose goods are subject to a
DCL wishes to export goods in any category in
excess of the applicable DCL in any calendar year,
that Party may present to the importing Party a
formal written request for an increase in the DCL;
and
(b) the importing Party shall respond, in writing,
within 30 days of the receipt of the request. If
the response is negative, the Parties concerned
shall consult no later than 15 days after the
receipt of the response or as soon thereafter as
Annex 300-B
mutually convenient, and shall endeavor to reach a
mutually satisfactory solution. The Parties
concerned shall confirm any agreement reached on a
new DCL by an exchange of letters.
8. Adjustments to annual specific limits (SLs), including
those set out in Schedule 3.1.2, may be made as follows:
(a) an exporting Party wishing to adjust an SL shall
deliver a notice to the importing Party of its
intent to make an adjustment;
(b) the exporting Party may increase the SL for a
calendar year by no more than six percent
("swing"); and
(c) in addition to any increase of its SL under
subparagraph (b), the exporting Party may increase
its unadjusted SL for that year by no more than 11
percent by allocating to such SL for that calendar
year (the "receiving year") an unused portion
("shortfall") of the corresponding SL for the
previous calendar year ("carryover") or a portion
of the corresponding SL for the following calendar
year ("carryforward"), as follows:
(i) subject to subparagraph (iii), the
exporting Party may utilize carryover, as
available, up to 11 percent of the
unadjusted SL for the receiving year,
(ii) the exporting Party may utilize
carryforward charged against the
corresponding SL for the following calendar
year, up to six percent of the unadjusted
SL for the receiving year,
(iii) the combination of the exporting Party's
carryover and carryforward shall not exceed
11 percent of the unadjusted SL in the
receiving year, and
(iv) carryover may be utilized only following
confirmation by the importing Party that
sufficient shortfall exists. If the
importing Party does not consider that
sufficient shortfall exists, it shall
promptly provide data to the exporting
Annex 300-B
Party to support that view. Where
substantial statistical differences exist
between the import and export data on which
the shortfall is computed, the Parties
concerned shall seek to resolve these
differences promptly.
B. Trade between Mexico and the United States
9. During the transition period, non-originating textile and
apparel goods of Mexico exported to the United States shall be
subject to the restrictions and consultation levels specified
in Schedule 3.1.2, in accordance with this Appendix and its
Schedules. Such restrictions and consultation levels shall be
progressively eliminated as follows:
(a) restrictions or consultation levels on items
contained in the categories of textile and apparel
goods in staging category 1 in Schedule 3.1.1 shall
be eliminated on January 1, 1994;
(b) restrictions or consultation levels on items
contained in the categories of textile and apparel
goods in staging category 2 in Schedule 3.1.1 shall
be eliminated on January 1, 2001; and
(c) restrictions or consultation levels on items
contained in the categories of textile and apparel
goods in staging category 3 in Schedule 3.1.1 shall
be eliminated on January 1, 2004.
10. In addition, on January 1, 1994, the United States shall
eliminate restrictions or consultation levels on textile and
apparel goods that are assembled in Mexico from fabrics wholly
formed and cut in the United States and exported from and
reimported into the United States under:
(a) U.S. tariff item 9802.00.80.10; or
(b) Chapter 61, 62 or 63 if, after such assembly, those
goods that would have qualified for treatment under
9802.00.80.10 have been subject to bleaching,
garment dyeing, stone-washing, acid-washing or
perma-pressing.
Thereafter, notwithstanding Section 5, the United States shall
not adopt or maintain prohibitions, restrictions or
Annex 300-B
consultation levels on textile and apparel goods of Mexico that
satisfy the requirements of subparagraph (a) or (b) or the
requirements of any successor provision to U.S. tariff item
9802.00.80.10.
11. Mexico and the United States may identify at any time
particular textile and apparel goods that they mutually agree
fall within:
(a) hand-loomed fabrics of a cottage industry;
(b) hand-made cottage industry goods made of such hand-
loomed fabrics; or
(c) traditional folklore handicraft goods.
The importing Party shall exempt from restrictions and
consultation levels goods so identified, if certified by the
competent authority of the exporting Party.
12. The Bilateral Textile Agreement Between the United States
of America and the United Mexican States, signed at Mazatl n,
February 13, 1988, as amended and extended (the Bilateral
Agreement), shall terminate on the date of entry into force of
this Agreement.
13. On request of either Party, the Parties shall consult to
consider accelerating the elimination of restrictions or
consultation levels set out in Schedule 3.1.2 on specific
textile and apparel goods. An agreement between the Parties to
accelerate the elimination of a restriction or consultation
level shall supersede Schedule 3.1.1 when approved by each such
Party in accordance with Article 2202(2) (Amendments).
14. During 1994, Mexico may carry over any unused portion of
the 1993 limit specified in the Bilateral Agreement, or apply
against the 1994 limit specified in this Appendix any exports
made during 1993 in excess of the applicable limit under the
Bilateral Agreement, in accordance with the flexibility
provisions set forth in paragraph 8.
15. All exports of textile and apparel goods from the
territory of Mexico to the territory of the United States
covered by restrictions or consultation levels under this
Appendix shall be accompanied by an export visa issued by the
competent authority of Mexico, pursuant to any bilateral visa
arrangement in effect between the Parties.
Annex 300-B
16. On written request of either Party, both Parties shall
consult within 30 days of receipt of the request on any matter
arising from the implementation of this Appendix. In addition,
on written request of either Party, both Parties shall conduct
a review of this Appendix by January 1, 1999.
17. For purposes of applying prohibitions, restrictions or
consultation levels, each Party shall consider a good as being
of:
(a) man-made fibers if the good is in chief weight of
man-made fibers, unless
(i) the good is knitted or crocheted apparel in
which wool equals or exceeds 23 percent by
weight of all fibers, in which case it
shall be of wool,
(ii) the good is apparel, not knitted or
crocheted, in which wool equals or exceeds
36 percent by weight of all fibers, in
which case it shall be of wool, or
(iii) the good is a woven fabric in which wool
equals or exceeds 36 percent by weight of
all fibers, in which case it shall be of
wool;
(b) cotton, if not covered by subparagraph (a) and if
the good is in chief weight of cotton, unless the
good is a woven fabric in which wool equals or
exceeds 36 percent by weight of all fibers, in
which case it shall be of wool;
(c) wool, if not covered by subparagraph (a) or (b),
and the good is in chief weight of wool; and
(d) non-cotton vegetable fiber, if not covered by
subparagraph (a), (b) or (c), and the good is in
chief weight of non-cotton vegetable fiber, unless
(i) cotton with wool and/or man-made fibers in
the aggregate equal or exceed 50 percent by
weight of the component fibers thereof and
the cotton component equals or exceeds the
weight of each of the total wool and/or
man-made fiber components, in which case it
shall be of cotton,
Annex 300-B
(ii) if not covered by subparagraph (i) and wool
exceeds 17 percent by weight of all
component fibers, in which case it shall be
of wool, or
(iii) if not covered by subparagraph (i) or (ii)
and man-made fibers in combination with
cotton and/or wool in the aggregate equal
or exceed 50 percent by weight of the
component fibers thereof and the man-made
fiber component exceeds the weight of the
total wool and/or total cotton component,
in which case it shall be of man-made
fibers.
For purposes of this paragraph, only the textile fibers in the
component of the good that determines the tariff classification
of the good are to be considered.
C. Schedules
To determine which HS provisions are contained in a U.S.
category listed in the Schedules to this Appendix, the Parties
shall refer to the Correlation: Textile and Apparel Categories
with the Harmonized Tariff Schedule of the United States, 1992
(or successor document), U.S. Department of Commerce,
International Trade Administration, Office of Textiles and
Apparel, Trade and Data Division, Washington, D.C. The
descriptions listed in these Schedules are provided for ease of
reference only. For legal purposes, coverage of a category
shall be determined according to the Correlation.
Schedule 3.1.1
Schedule for the Elimination of Restrictions
and Consultation Levels on Exports from Mexico to the United
States
A. Special Regime (SR) Goods
Category Description Staging
Category
335 SR C W&G Coats, Special Regime 1
336/636 SR C/MMF Dresses, Special Regime 1
Annex 300-B
338/339/638/639 SR C/MMF Knit Shirts, Special Regime 1
340/640 SR C/MMF Woven Shirts, Special Regime 1
341/641 SR C/MMF Blouses, Special Regime 1
342/642 SR C/MMF Skirts, Special Regime 1
347/348/647/648 SR C/MMF Trousers, Special Regime 1
351/651 SR C/MMF Pyjamas, etc. Special Regime 1
352/652 SR C/MMF Underwear, Special Regime 1
359-C/659-C SR C/MMF Coveralls, Special Regime 1
633 SR MMF Suit Coats, Special Regime 1
635 SR MMF Coats, Special Regime 1
B. Non-originating Goods
Category Description Staging
Category
Broadwoven Fabric
Group C/MMF 1
218 C/MMF Fabrics/Yarns of Different Colors 1
219 C/MMF Duck Fabric 2
220 C/MMF Fabric of Special Weave 1
225 C/MMF Denim Fabric 1
226 C/MMF Cheesecloth, Batistes 1
227 C/MMF Oxford Cloth 1
300/301/607-Y C Combed/Carded Yarn; etc. 1
313 C Sheeting Fabric 2
314 C Poplin and Broadcloth Fabric 2
315 C Printcloth Fabric 2
Category Description Staging
Category
317 C Twill Fabric 2
326 C Sateen Fabric 1
334/634 C/MMF Men's and Boys' Coats 1
335 NR C Coats, Women's and Girls' 1
336/636 NR C/MMF Dresses 1
338/339/638/639 NR C/MMF Knit Shirts and Blouses 2
340/640 NR C/MMF Woven Shirts 2
341/641 NR C/MMF Woven Blouses 1
342/642 C/MMF Skirts 1
347/348/647/648 NR C/MMF Trousers and Pants 2
351/651 C/MMF Pyjamas and Nightwear 1
352/652 NR C/MMF Underwear 1
359-C/659-C NR C/MMF Coveralls 1
363 C Terry and Pile towels 1
410 Woven Wool Fabric 3
Annex 300-B
433 W Men's and Boys' Suit-type Coats 3
435 W Women's and Girls' Coats 1
443 W Men's and Boys' Suits 3
604-A Acrylic Spun Yarn 1
604-O/607-O Staple Fiber Yarn 1
611 Artificial Staple Fiber Woven Fabric 3
613 MMF Sheeting Fabric 1
614 MMF Poplin & Broadcloth Fabric 1
615 MMF Printcloth Fabric 1
617 MMF Twill & Sateen Fabric 1
625 MMF Poplin/Broadcloth Staple/Filament 1
626 MMF Printcloth Staple/Filament 1
627 MMF Sheeting Staple/Filament 1
628 MMF Twill/Sateen Staple/Filament 1
629 MMF Other Staple/Filament Fabric 1
633 NR MMF Suit-Type Coats, M&B 2
635 Women's and Girls' MMF Coats 1
643 MMF Suits for Men and Boys 2
669-B Polypropylene Bags 1
670 MMF Luggage, Flat Goods Etc. 1
For purposes of this Schedule:
C means cotton;
M&B means men's and boys';
MMF means man-made fiber;
NR means normal regime;
W means wool; and
W&G means women's and girls'.
Schedule 3.1.2
Restrictions and Consultation Levels
on Exports from Mexico to the United States
Unit of
Category Form Measure 1994
1995
1996
219 DCL SM 9,438,000 9,438,000 9,438,000
313 DCL SM 16,854,00016,854,00016,854,000
314 DCL SM 6,966,904 6,966,904 6,966,904
315 DCL SM 6,966,904 6,966,904 6,966,904
317 DCL SM 8,427,000 8,427,000 8,427,000
611 DCL SM 1,267,710 1,267,710 1,267,710
410 DCL SM 397,160 397,160 397,160
Unit of
Category Form Measure 1994
1995
1996
338/339/
638/639 DCL DZ 650,000 650,000 650,000
340/640 SL DZ 120,439 128,822
137,788
347/348/
647/648 DCL DZ 650,000 650,000 650,000
433 DCL DZ 11,000 11,000 11,000
443 SL NO 150,000 156,000
162,240
633 DCL DZ 10,000 10,000 10,000
643 DCL NO 155,556 155,556 155,556
Category 1997 1998 1999 2000
219 9,438,000 9,438,000 9,438,000 9,438,000
313 16,854,000 16,854,00016,854,00016,854,000
314 6,966,904 6,966,904 6,966,904 6,966,904
315 6,966,904 6,966,904 6,966,904 6,966,904
317 8,427,000 8,427,000 8,427,000 8,427,000
611 1,267,710 1,267,710 1,267,710 1,267,710
410 397,160 397,160 397,160 397,160
338/339/
638/639 650,000 650,000 650,000 650,000
340/640 147,378 160,200 174,137 189,287
347/348/
647/648 650,000 650,000 650,000 650,000
433 11,000 11,000 11,000 11,000
443 168,730 175,479 182,498 189,798
633 10,000 10,000 10,000 10,000
643 155,556 155,556 155,556 155,556
Category 2001 2002 2003
611 1,267,710 1,267,710 1,267,710
410 397,160 397,160 397,160
433 11,000 11,000 11,000
Annex 300-B
443 197,390 205,286 213,496
Schedule 3.1.3
Conversion Factors
1. This Schedule applies to restrictions and consultation
levels applied pursuant to Section 5 and paragraph 9 of
Appendix 3.1, and to tariff preference levels applied pursuant
to Section 6 and Appendix 6.
2. Unless otherwise provided in this Annex, or as may be
mutually agreed between any two Parties with respect to trade
between them, the rates of conversion into SME set out in
paragraphs 3 through 6 shall apply.
3. The following conversion factors shall apply to the goods
covered by the following U.S. categories:
Primary
U.S. Conversion Description Unit of
Category Factor Measure
200 6.60 YARN FOR RETAIL SALE, SEWING THREAD
KG
201 6.50 SPECIALTY YARNS KG
218 1.00 FABRIC OF YARNS OF DIFFERENT COLORS
SM
219 1.00 DUCK FABRIC SM
220 1.00 FABRIC OF SPECIAL WEAVE SM
222 6.00 KNIT FABRIC KG
223 14.00 NON-WOVEN FABRIC KG
224 1.00 PILE & TUFTED FABRIC SM
225 1.00 BLUE DENIM FABRIC SM
226 1.00 CHEESECLOTH, BATISTE, LAWN & VOILESM
227 1.00 OXFORD CLOTH SM
229 13.60 SPECIAL PURPOSE FABRIC KG
237 19.20 PLAYSUITS, SUNSUITS, ETC DZ
239 6.30 BABIES' GARMENTS & CLOTHING ACCESS.
KG
300 8.50 CARDED COTTON YARN KG
301 8.50 COMBED COTTON YARN KG
313 1.00 COTTON SHEETING FABRIC SM
314 1.00 COTTON POPLIN & BROADCLOTH FABRIC SM
315 1.00 COTTON PRINTCLOTH FABRIC SM
317 1.00 COTTON TWILL FABRIC SM
326 1.00 COTTON SATEEN FABRIC SM
330 1.40 COTTON HANDKERCHIEFS DZ
331 2.90 COTTON GLOVES AND MITTENS DPR
332 3.80 COTTON HOSIERY DPR
Annex 300-B
333 30.30 M&B SUIT-TYPE COATS, COTTON DZ
334 34.50 OTHER M&B COATS, COTTON DZ
335 34.50 W&G COTTON COATS DZ
336 37.90 COTTON DRESSES DZ
338 6.00 M&B COTTON KNIT SHIRTS DZ
339 6.00 W&G COTTON KNIT SHIRTS/BLOUSES DZ
340 20.10 M&B COTTON SHIRTS, NOT KNIT DZ
341 12.10 W&G COTTON SHIRTS/BLOUSES,NOT KNITDZ
342 14.90 COTTON SKIRTS DZ
345 30.80 COTTON SWEATERS DZ
347 14.90 M&B COTTON TROUSERS/BREECHES/SHORTS DZ
348 14.90 W&G COTTON TROUSERS/BREECHES/SHORTS
DZ
349 4.00 BRASSIERES, OTHER BODY SUPPORT
GARMENTS DZ
350 42.60 COTTON DRESSING GOWNS, ROBES ETC. DZ
351 43.50 COTTON NIGHTWEAR/PAJAMAS DZ
352 9.20 COTTON UNDERWEAR DZ
353 34.50 M&B COTTON DOWN-FILLED COATS DZ
354 34.50 W&G COTTON DOWN-FILLED COATS DZ
359 8.50 OTHER COTTON APPAREL KG
360 0.90 COTTON PILLOWCASES NO
361 5.20 COTTON SHEETS NO
362 5.80 OTHER COTTON BEDDING NO
363 0.40 COTTON TERRY & OTHER PILE TOWELS NO
369 8.50 OTHER COTTON MANUFACTURES KG
400 3.70 WOOL YARN KG
410 1.00 WOOL WOVEN FABRIC SM
414 2.80 OTHER WOOL FABRIC KG
431 1.80 WOOL GLOVES/MITTENS DPR
432 2.30 WOOL HOSIERY DPR
433 30.10 M&B WOOL SUIT-TYPE COATS DZ
434 45.10 OTHER M&B WOOL COATS DZ
435 45.10 W&G WOOL COATS DZ
436 41.10 WOOL DRESSES DZ
438 12.50 WOOL KNIT SHIRTS/BLOUSES DZ
439 6.30 BABIES' WOOL GARM/CLOTHING ACCESS.KG
440 20.10 WOOL SHIRTS/BLOUSES, NOT-KNIT DZ
442 15.00 WOOL SKIRTS DZ
443 3.76 M&B WOOL SUITS NO
444 3.76 W&G WOOL SUITS NO
445 12.40 M&B WOOL SWEATERS DZ
446 12.40 W&G WOOL SWEATERS DZ
447 15.00 M&B WOOL TROUSERS/BREECHES/SHORTS DZ
448 15.00 W&G WOOL TROUSERS/BREECHES/SHORTS DZ
459 3.70 OTHER WOOL APPAREL KG
464 2.40 WOOL BLANKETS KG
465 1.00 WOOL FLOOR COVERINGS SM
469 3.70 OTHER WOOL MANUFACTURES KG
Annex 300-B
Primary
Primary
U.S. Conversion Description Unit of
U.S. Conversion Description Unit of
Category Factor Measure
Category Factor Measure
600 6.50 TEXTURED FILAMENT YARN KG
603 6.30 YARN 85% ARTIFICIAL STAPLE FIBER KG
604 7.60 YARN 85% SYNTHETIC STAPLE FIBER KG
606 20.10 NON-TEXTURED FILAMENT YARN KG
607 6.50 OTHER STAPLE FIBER YARN KG
611 1.00 WOVEN FABRIC 85% ARTIFICIAL STAPLE
SM
613 1.00 MMF SHEETING FABRIC SM
614 1.00 MMF POPLIN & BROADCLOTH FABRIC SM
615 1.00 MMF PRINTCLOTH FABRIC SM
617 1.00 MMF TWILL AND SATEEN FABRIC SM
618 1.00 WOVEN ARTIFICIAL FILAMENT FABRIC SM
619 1.00 POLYESTER FILAMENT FABRIC SM
620 1.00 OTHER SYNTHETIC FILAMENT FABRIC SM
621 14.40 IMPRESSION FABRIC KG
622 1.00 GLASS FIBER FABRIC SM
624 1.00 WOVEN MMF FABRIC, 15% TO 36% WOOL SM
625 1.00 MMF STAPLE/FILAMENT POPLIN &
BROADCLOTH FABRIC SM
626 1.00 MMF STAPLE/FILAMENT PRINTCLOTH
FABRIC SM
627 1.00 MMF STAPLE/FILAMENT SHEETING FABRIC
SM
628 1.00 MMF STAPLE/FILAMENT TWILL/SATEEN
FABRIC SM
629 1.00 OTHER MMF STAPLE/FILAMENT FABRIC SM
630 1.40 MMF HANDKERCHIEFS DZ
631 2.90 MMF GLOVES AND MITTENS DPR
632 3.80 MMF HOSIERY DPR
633 30.30 M&B MMF SUIT-TYPE COATS DZ
634 34.50 OTHER M&B MMF COATS DZ
635 34.50 W&G MMF COATS DZ
636 37.90 MMF DRESSES DZ
638 15.00 M&B MMF KNIT SHIRTS DZ
639 12.50 W&G MMF KNIT SHIRTS & BLOUSES DZ
640 20.10 M&B NOT-KNIT MMF SHIRTS DZ
641 12.10 W&G NOT-KNIT MMF SHIRTS & BLOUSES DZ
642 14.90 MMF SKIRTS DZ
643 3.76 M&B MMF SUITS NO
644 3.76 W&G MMF SUITS NO
645 30.80 M&B MMF SWEATERS DZ
646 30.80 W&G MMF SWEATERS DZ
647 14.90 M&B MMF TROUSERS/BREECHES/SHORTS DZ
648 14.90 W&G MMF TROUSERS/BREECHES/SHORTS DZ
Annex 300-B
Primary
Primary
U.S. Conversion Description Unit of
U.S. Conversion Description Unit of
Category Factor Measure
Category Factor Measure
649 4.00 MMF BRAS & OTHER BODY SUPPORT
GARMENTS DZ
650 42.60 MMF ROBES, DRESSING GOWNS, ETC. DZ
651 43.50 MMF NIGHTWEAR & PAJAMAS DZ
652 13.40 MMF UNDERWEAR DZ
653 34.50 M&B MMF DOWN-FILLED COATS DZ
654 34.50 W&G MMF DOWN-FILLED COATS DZ
659 14.40 OTHER MMF APPAREL KG
665 1.00 MMF FLOOR COVERINGS SM
666 14.40 OTHER MMF FURNISHINGS KG
669 14.40 OTHER MMF MANUFACTURES KG
670 3.70 MMF FLAT GOODS, HANDBAGS, LUGGAGE KG
800 8.50 YARN, SILK BLENDS/VEGETABLE FIBER KG
810 1.00 WOVEN FABRIC, SILK BLENDS/VEGETABLE
FIBER SM
831 2.90 GLOVES & MITTENS, SILK
BLENDS/VEGETABLE FIBER DPR
832 3.80 HOSIERY, SILK BLENDS/VEGETABLE
FIBER DPR
833 30.30 M&B SUIT-TYPE COATS, SILK
BLENDS/VEGETABLE FIBER DZ
834 34.50 OTHER M&B COATS, SILK
BLENDS/VEGETABLE FIBER DZ
835 34.50 W&G COATS, SILK BLENDS/VEGETABLE
FIBER DZ
836 37.90 DRESSES, SILK BLENDS/VEGETABLE
FIBER DZ
838 11.70 KNIT SHIRTS & BLOUSES, SILK
BLENDS/VEGETABLE FIBER DZ
839 6.30 BABIES' GARM & CLOTHING
ACCESSORIES, SILK/VEG FIBER KG
840 16.70 NOT-KNIT SHIRTS & BLOUSES, SILK
BLENDS/ DZ
VEGETABLE FIBER
842 14.90 SKIRTS, SILK BLENDS/VEGETABLE
FIBERS DZ
843 3.76 M&B SUITS, SILK BLENDS/VEGETABLE
FIBER NO
844 3.76 W&G SUITS, SILK BLENDS/VEGETABLE
FIBER NO
845 30.80 SWEATERS, NON-COTTON VEGETABLE
FIBERS DZ
846 30.80 SWEATERS, SILK BLENDS DZ
Annex 300-B
Primary
Primary
U.S. Conversion Description Unit of
U.S. Conversion Description Unit of
Category Factor Measure
Category Factor Measure
847 14.90 TROUSERS/BREECHES/SHORTS, SILK
BLENDS/ DZ
VEGETABLE FIBER
850 42.60 ROBES, DRESSING GOWNS, ETC, SILK
BLENDS/ DZ
VEGETABLE FIBER
851 43.50 NIGHTWEAR & PYJAMAS, SILK
BLENDS/VEGETABLE FIBER DZ
852 11.30 UNDERWEAR, SILK BLENDS/VEGETABLE
FIBER DZ
858 6.60 NECKWEAR, SILK BLENDS/VEGETABLE
FIBER KG
859 12.50 OTHER SILK BLEND/VEGETABLE FIBER
APPAREL KG
863 0.40 TOWELS, SILK BLENDS/VEGETABLE
FIBERS NO
870 3.70 LUGGAGE, SILK BLENDS/VEGETABLE
FIBERS KG
871 3.70 HANDBAGS & FLATGOODS, SILK
BLENDS/VEGETABLE FIBER KG
899 11.10 OTHER SILK BLENDS/VEGETABLE FIBER
MANUFACTURES KG
Annex 300-B
4. The following conversion factors shall apply to the
following goods not covered by a U.S. category:
U.S.
Harmonized
System Primary
Statistical Conversion Unit of
Provision Factor Measure Description
5208.31.2000 1.00 SM WOVEN FABRIC, 85%>
COTTON, <100G/M2
CERTIFIED HAND-LOOM
FABRIC, DYED
5208.32.1000 1.00 SM WOVEN FABRIC, 85%>
COTTON, 100-200G/M2
CERTIFIED HAND-LOOM
FABRIC, DYED
5208.41.2000 1.00 SM WOVEN FABRIC, 85%
COTTON 100G/M2
CERTIFIED HAND-LOOM,
YARNS OF DIFFERENT
COLORS
5208.42.1000 1.00 SM WOVEN FABRIC, 85%
COTTON 100-200G/M2
CERTIFIED HAND-LOOM,
YARNS OF DIFFERENT
COLORS
5208.51.2000 1.00 SM WOVEN FABRIC, 85%>
COTTON 100G/M2 PLAIN
WEAVE, CERTIFIED HAND-
LOOM, PRINTED
5208.52.1000 1.00 SM WOVEN FABRIC, 85%
COTTON 100-200G/M2
PLAIN WEAVE, CERTIFIED
HAND-LOOM, PRINTED
5209.31.3000 1.00 SM WOVEN FABRIC, 85%>
COTTON >200G/M2 PLAIN
WEAVE, CERTIFIED HAND-
LOOM, DYED
5209.41.3000 1.00 SM WOVEN FABRIC, 85%>
COTTON >200G/M2, PLAIN
WEAVE, YARNS OF
DIFFERENT COLOR
5209.51.3000 1.00 SM WOVEN FABRIC, >85%
COTTON >200G/M2, PLAIN
WEAVE, CERTIFIED HAND-
LOOM, PRINTED
Annex 300-B
5307.10.0000 8.50 KG YARN, JUTE OR OTHER
TEXTILE BAST FIBER
(EXCLUDING
FLAX/HEMP/RAMIE),
SINGLE
5307.20.0000 8.50 KG YARN, JUTE OR OTHER
TEXTILE BAST FIBER (EX.
FLAX/HEMP/RAMIE),
MULTIPLE/CABLE
5308.10.0000 8.50 KG YARN, COIR
5308.30.0000 8.50 KG YARN, PAPER
5310.10.0020 1.00 SM WOVEN FABRIC, JUTE OR
OTHER TEXTILE BAST
FIBER (EX
FLAX/HEMP/RAMIE),
130CM WIDE, UNBLEACHED
5310.10.0040 1.00 SM WOVEN FABRIC, JUTE OR
OTHER TEXTILE BAST
FIBER (EX
FLAX/HEMP/RAMIE) >130
TO 250 CM WIDE,
UNBLEACHED
5310.10.0060 1.00 SM WOVEN FABRIC, JUTE OR
OTHER TEXTILE BAST
FIBER (EX
FLAX/HEMP/RAMIE), >250
CM WIDE, UNBLEACHED
5310.90.0000 1.00 SM WOVEN FABRIC, JUTE OR
OTHER TEXTILE BAST
FIBER (EXCLUDING
FLAX/HEMP/RAMIE), NES
5311.00.6000 1.00 SM WOVEN FABRIC OF PAPER
YARN
5402.10.3020 20.10 KG NYLON HIGH TENACITY
YARN, <5 TURNS PER
METER, NOT FOR RETAIL
SALE
5402.20.3020 20.10 KG POLYESTER HIGH TENACITY
YARN, <5 TURNS PER
METER, NOT FOR RETAIL
SALE
5402.41.0010 20.10 KG NYLON MULTIFILAMENT
YARN, PARTIALLY
ORIENTED, UNTWIST/TWIST
<5 TURNS/METER, NOT FOR
RETAIL SALE
5402.41.0020 20.10 KG NYLON MONO/MULTFILAMENT
YARN, UNTWIST/TWIST <5
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
TURNS/METER, NOT FOR
RETAIL SALE, NES
5402.41.0030 20.10 KG NYLON
MONO/MULTIFILAMENT
YARN, UNTWIST/TWIST <5
TURNS/METER, NOT FOR
RETAIL SALE
5402.42.0000 20.10 KG POLYESTER YARN,
PARTIALLY ORIENTED,
UNTWIST/TWIST 50
TURNS/METER, NOT FOR
RETAIL SALE
5402.43.0020 20.10 KG POLYESTER YARN,
MONOFILAMENT,
UNTWIST/TWIST 5
TURNS/METER, NOT FOR
RETAIL SALE
5402.49.0010 20.10 KG POLYETHYLENE/POLYPROPYL
ENE FILAMENT YARN,
UNTWIST/TWIST <5
TURNS/METER, NOT FOR
RETAIL SALE
5402.49.0050 20.10 KG SYNTHETIC FILAMENT
YARN, UNTWIST/TWIST <5
TURNS/METER, NOT FOR
RETAIL SALE, NES
5403.10.3020 20.10 KG VISCOSE RAYON HIGH
TENACITY FILAMENT YARN,
UNTWIST/TWIST <5
TURNS/METER, NOT FOR
RETAIL SALE
5403.31.0020 20.10 KG VISCOSE RAYON FILAMENT
YARN, SINGLE,
UNTWIST/TWIST <5
TURNS/METER, NOT FOR
RETAIL SALE
5403.33.0020 20.10 KG CELLULOSE ACETATE
FILAMENT YARN, SINGLE,
UNTWIST/TWIST <5
TURNS/METER, NOT FOR
RETAIL SALE
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
5403.39.0020 20.10 KG ARTIFICIAL FILAMENT
YARN, UNTWIST/TWIST <5
TURNS/METER, NOT FOR
RETAIL SALE, NES
5404.10.1000 20.10 KG SYNTHETIC MONOFILAMENT
RACKET STRINGS, 67
DECITEX, CROSS-SECT.
DIMEMSION >1MM
5404.10.2020 20.10 KG NYLON MONFILAMENT, 67
DECITEX,
CROSS-SECTIONAL
DIMENSION >1MM,
5404.10.2040 20.10 KG POLYESTER MONFILAMENT,
>67 DECITEX, CROSS-
SECTIONAL DIMENSION
>1MM
5404.10.2090 20.10 KG SYNTHETIC MONFILAMENT
67 DECITEX, CROSS-
SECTIONAL DIMENSION
>1MM, NES
5404.90.0000 20.10 KG SYNTHETIC STRIP WIDTH
5MM
5405.00.3000 20.10 KG ARTIFICIAL
MONOFILAMENT, 67
DECITEX, CROSS-
SECTIONAL DIMENSION
1MM
5405.00.6000 20.10 KG ARTIFICIAL STRIP AND
THE LIKE, WIDTH 5MM
5407.30.1000 1.00 SM WOVEN SYNTHETIC
FILAMENT FABRIC WITH
YARN AT ACUTE/RIGHT
ANGLES, >60% PLASTIC
5501.10.0000 7.60 KG NYLON/OTHER POLYAMIDE
FILAMENT TOW
5501.20.0000 7.60 KG POLYESTER FILAMENT TOW
5501.30.0000 7.60 KG ACRYLIC OR MODACRYLIC
FILAMENT TOW
5501.90.0000 7.60 KG SYNTHETIC FILAMENT TOW,
NES
5502.00.0000 6.30 KG ARTIFICIAL FILAMENT TOW
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
5503.10.0000 7.60 KG NYLON/OTHER POLAMIDE
STAPLE FIBERS NOT
CARDED/COMBED OR
OTHERWISE PROCESSED
5503.20.0000 7.60 KG POLYESTER STAPLE FIBERS
NOT CARDED/COMBED, OR
OTHERWISE PROCESSED
5503.30.0000 7.60 KG ACRYLIC/MODOACRYLIC
STAPLE FIBERS, NOT
CARDED/COMBED OR
OTHERWISE PROCESSED
5503.40.0000 7.60 KG POLYPROPYLENE STAPLE
FIBERS NOT
CARDED/COMBED OR
OTHERWISE PROCESSED
5503.90.0000 7.60 KG SYNTHETIC STAPLE FIBER
NOT CARDED/COMBED, OR
OTHERWIDE PROCESSED,
NES
5504.10.0000 6.30 KG VISCOSE RAYON STAPLE
FIBERS NOT
CARDED/COMBED OR
OTHERWISE PROCESSED
5504.90.0000 6.30 KG ARTIFICIAL STAPLE
FIBERS NOT
CARDED/COMBED OR
OTHERWISE PROCESSED,
NES
5505.10.0020 7.60 KG WASTE, NYLON AND OTHER
POLYAMIDES
5505.10.0040 7.60 KG WASTE, POLYESTER
5505.10.0060 7.60 KG WASTE, MMF SYNTHETIC
FIBERS, NES
5505.20.0000 6.30 KG WASTE, MMF ARTIFICIAL
FIBERS
5506.10.0000 7.60 KG NYLON/OTHER POLYAMIDES
FIBERS, CARDED/COMBED
OR OTHERWISE PROCESSED
5506.20.0000 7.60 KG POLYESTER STAPLE FIBER,
CARDED/COMBED, OR
OTHERWISE PROCESSED
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
5506.30.0000 7.60 KG ACRYLIC/MODOACRYLIC
STAPLE FIBER,
CARDED/COMBED OR
OTHERWISE PROCESSED
5506.90.0000 7.60 KG SYNTHETIC STAPLE FIBER
CARDED/COMBED OR
OTHERWISE PROCESSED,
NES
5507.00.0000 6.30 KG ARTIFICIAL STAPLE
FIBERS, CARDED/COMBED,
OR OTHERWISE PROCESSED
5801.90.2010 1.00 SM WOVEN PILE FABRIC, >85%
SILK OR SILK WASTE
5802.20.0010 1.00 SM TERRY TOWELING FABRIC,
>85% SILK OR SILK WASTE
5802.30.0010 1.00 SM TUFTED TEXTILE FABRIC,
>85% SILK OR SILK WASTE
5803.90.4010 1.00 SM GAUZE, >85% SILK OR
SILK WASTE
5804.10.0010 11.10 KG TULLES & OTHER NETTING
FABRIC, KNIT OR
CROCHETED, >85% SILK OR
SILK WASTE
5804.29.0010 11.10 KG LACE IN THE
PIECE/STRIP/MOTIF, >85%
SILK OR SILK WASTE
5804.30.0010 11.10 KG HAND-MADE LACE IN
PIECE/STRIP/MOTIF, >85%
SILK OR SILK WASTE
5805.00.1000 1.00 SM HAND-WOVEN TAPESTRIES
FOR WALLHANGINGS,
VALUED AT >$215\SM
5805.00.2000 1.00 SM HAND-WOVEN TAPESTRIES,
NES, WOOL, CERTIFIED
HAND-LOOMED
5805.00.4090 1.00 SM HAND-WOVEN TAPESTRIES,
NES
5806.10.3010 11.10 KG NARROW WOVEN PILE &
CHENILLE FABRIC, >85%
SILK OR SILK WASTE
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
5806.39.3010 11.10 KG NARROW WOVEN FABRIC,
NOT PILE, >85% SILK OR
SILK WASTE
5806.40.0000 13.60 KG NARROW FABRIC, WARP
WITHOUT WEFT WITH AN
ADHESIVE (BOLDUCS)
5807.10.1090 11.10 KG WOVEN LABELS, TEXTILE
MATERIALS, NOT
EMBROIDERED, NOT COTTON
OR MMF
5807.10.2010 8.50 KG WOVEN BADGES AND
SIMILAR ARTICLES,
COTTON, NOT EMBROIDERED
5807.10.2020 14.40 KG WOVEN BADGES/SIMILAR
ARTICLES, MMF, NOT
EMBROIDERED
5807.10.2090 11.10 KG WOVEN BADGES/SIMILAR
ARTCLES, TEXTILE
MATERIALS, NOT
EMBROIDERED, NOT
COTTON/MMF
5807.90.1090 11.10 KG NOT-WOVEN LABELS OF
TEXTILE MATERIALS, NOT
EMBROIDERED, NOT
COTTON/MMF
5807.90.2010 8.50 KG NOT-WOVEN
BADGES/SIMILAR
ARTICLES, COTTON, NOT
EMBROIDERED
5807.90.2020 14.40 KG NOT-WOVEN
BADGES/SIMILAR
ARTICLES, MMF, NOT
EMBROIDERED
5807.90.2090 11.10 KG NOT-WOVEN
BADGES/SIMILAR
ARTICLES, TEX
MATERIALS, NOT
EMBROIDERED, NOT
COTTON/MMF
5808.10.2090 11.10 KG BRAIDS IN PIECE FOR
HEADWEAR, OTHER TEXTILE
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
MATERIALS, NES, NOT
KNIT OR EMBROIDERED
5808.10.3090 11.10 KG BRAID IN PIECE, NES,
NES
5808.90.0090 11.10 KG ORNAMENTAL TRIMMING IN
PIECE, TEXTILE
MATERIALS, NOT KNIT OR
EMBROIDERED, NOT
COTTON/MMF
5810.92.0040 14.40 KG EMBROIDERED
BADGES/EMBLEMS/MOTIFS
WITH VISIBLE GROUND,
MMF
5810.99.0090 11.10 KG EMBROIDERY
PIECES/STRIPS/MOTIFS
WITH VISIBLE GROUND,
TEXTILE MATERIALS, NES
5811.00.4000 1.00 SM QUILTED PIECES, 1
LAYER TEXTILE
MATERIALS, TEXTILE
MATERIALS, NES
6001.99.0010 1.00 SM KNIT OR CROCHETED PILE
FABRIC 85% SILK OR
SILK WASTE
6002.99.0010 11.10 KG KNIT OR CROCHETED
FABRIC, NES 85% SILK
OR SILK WASTE
6301.90.0020 11.10 NO BLANKET/TRAVELING RUGS,
>85% SILK OR SILK WASTE
6302.29.0010 11.10 NO BED LINEN, PRINTED >85%
SILK OR SILK WASTE
6302.39.0020 11.10 NO BED LINEN, NES, >85%
SILK OR SILK WASTE
6302.99.1000 11.10 NO LINEN, NES, >85% SILK
OR SILK WASTE
6303.99.0030 11.10 NO CURTAINS, INTERIOR
BLINDS, NOT KNIT OR
CROCHETED, >85% SILK OR
SILK WASTE
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
6304.19.3030 11.10 NO BEDSPREADS, NOT KNIT OR
CROCHETED, >85% SILK OR
SILK WASTE
6304.91.0060 11.10 NO FURNISHING ARTICLES,
NES, KNIT OR CROCHETED
>85% SILK OR SILK WASTE
6304.99.1000 1.00 SM WALL HANGINGS, WOOL OR
FINE ANIMAL HAIR,
CERTIFIED HAND-
LOOMED/FOLKLORE, NOT
KNIT
6304.99.2500 11.10 KG WALL HANGINGS, JUTE,
NOT KNIT
6304.99.4000 3.70 KG PILLOW COVERS, WOOL OR
FINE ANIMAL HAIR,
CERTIFIED HAND-
LOOMED/FOLKLORE
6304.99.6030 11.10 KG OTHER FURNISHING
ARTICLES, NOT KNIT, NES
>85% SILK OR SILK WASTE
6305.10.0000 11.10 KG SACKS & BAGS, JUTE/BAST
FIBERS
6306.21.0000 8.50 KG TENTS OF COTTON
6306.22.1000 14.40 NO BACKPACK TENTS,
SYNTHETIC FIBERS
6306.22.9010 14.40 KG SCREEN HOUSES,
SYNTHETIC FIBERS
6306.29.0000 14.40 KG TENTS, TEXTILE
MATERIALS NES
6306.31.0000 14.40 KG SAILS, SYNTHETIC FIBERS
6306.39.0000 8.50 KG SAILS, TEXTILE
MATERIALS NES
6306.41.0000 8.50 KG PNEUMATIC MATTRESSES,
COTTON
6306.49.0000 14.40 KG PNEUMATIC MATTRESSES,
TEXTILE MATERIALS NES
6306.91.0000 8.50 KG CAMPING GOODS NES,
COTTON
6306.99.0000 14.40 KG CAMPING GOODS, TEXTILE
MATERIALS NES
6307.10.2030 8.50 KG CLEANING CLOTHS NES
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
6307.20.0000 11.40 KG LIFEJACKETS AND
LIFEBELTS
6307.90.6010 8.50 KG PERINEAL TOWELS, FABRIC
WITH PAPER BASE
6307.90.6090 8.50 KG OTHER SURGICAL DRAPES,
FABRIC WITH PAPER BASE
6307.90.7010 14.40 KG SURGICAL DRAPES,
DISPOSAL & NONWOVEN MMF
6307.90.7020 8.50 KG SURGICAL DRAPES NES
6307.90.7500 8.50 NO TOYS FOR PETS, TEXTILE
MATERIALS
6307.90.8500 8.50 KG WALL BANNERS, MANMADE
FIBERS
6307.90.9425 14.50 NO NATIONAL FLAGS OF THE
UNITED STATES
6307.90.9435 14.50 NO NATIONAL FLAGS OF
NATIONS OTHER THAN THE
UNITED STATES
6307.90.9490 14.50 KG OTHER MADE-UP ARTICLES
NES
6309.00.0010 8.50 KG WORN CLOTHING & OTHER
WORN ARTICLES
6309.00.0020 8.50 KG WORN CLOTHING & OTHER
WORN ARTICLES, NES
6310.10.1000 3.70 KG RAGS/SCRAP/TWINE/CORDAG
E/ROPE/CABLES, SORTED,
WOOL OR FINE ANIMAL
HAIR
6310.10.2010 8.50 KG RAGS/SCRAP/TWINE/CORDAG
E/ROPE/CABLES, SORTED,
COTTON
6310.10.2020 14.40 KG RAGS/SCRAP/TWINE/CORDAG
E/ROPE/CABLES, SORTED,
MMF
6310.10.2030 11.10 KG RAGS/SCRAP/TWINE/CORDAG
E/ROPE/CABLES, SORTED,
NOT COTTON/MMF
6310.90.1000 3.70 KG RAGS/SCRAP/TWINE/CORDAG
E/ROPE/CABLES, NOT
SORTED, WOOL OR FINE
ANIMAL HAIR
Annex 300-B
U.S. U.S.
Harmonized Harmonized
System Primary System
Primary
Statistical Conversion Unit of Statistical
Conversion Unit of
Provision Factor Measure Description
Provision Factor Measure Description
6310.90.2000 8.50 KG RAGS/SCRAP/TWINE/CORDAG
E/ROPE/CABLES, NOT
SORTED, NOT WOOL
6501.00.30 4.4 DZ HAT FORMS/BODIES, NOT
BLOCKED, NO BRIMS, FUR,
MEN'S AND BOYS'
6501.00.60 4.4 DZ HAT FORMS/BODIES, NOT
BLOCKED, NO BRIMS, FUR,
WOMEN'S AND GIRLS'
6502.00.20 18.7 DZ HAT SHAPES, ASSEMBLED FROM
STRIPS, VEGETABLE FIBER,
SEWED
6502.00.40 18.7 DZ HAT SHAPES, PLAITED OR
ASSEMBLED FROM STRIPS,
VEGETABLE FIBER, NOT-SEWED,
NOT BLEACHED/COLORED
6502.00.60 18.7 DZ HAT SHAPES, PLAITED OR
ASSEMBLED FROM STRIPS,
VEGETABLE FIBER, NOT-SEWED,
BLEACHED/COLORED
6503.00.30 5.8 DZ FELT HATS AND OTHER
HEADGEAR, MEN'S AND BOYS'
6503.00.60 5.8 DZ FELT HATS AND OTHER
HEADGEAR, NES
6504.00.30 7.5 DZ HATS AND OTHER HEADGEAR,
ASSEMBLED FROM STRIPS,
VEGETABLE FIBER, SEWED
6504.00.60 7.5 DZ HATS AND OTHER HEADGEAR,
ASSEMBLED FROM STRIPS
6601.10.00 17.9 DZ GARDEN OR SIMILAR UMBRELLAS
6601.91.00 17.8 DZ OTHER UMBRELLAS, TELESCOPIC
SHAFT
6601.99.00 11.2 DZ OTHER UMBRELLAS, NES
8708.21.00 2.72 KG SAFETY SEAT BELTS
5. (a) The primary unit of measure for the following
tariff items in U.S. category 666 shall be NO and
shall be converted into SME by a factor of 5.5:
6301.10.0000 ELECTRIC BLANKETS
6301.40.0010 BLANKETS (NOT ELECTRIC) & TRAVEL RUGS OF
SYNTHETIC FIBER, WOVEN
6301.40.0020 BLANKETS (NOT ELECTRIC) & TRAVEL RUGS OF
SYNTHETIC FIBER, NES
Annex 300-B
6301.90.0010 BLANKETS AND TRAVELING RUGS OF ARTIFICIAL FIBER
6302.10.0020 BED LINEN, KNITTED OR CROCHETED FABRIC,
EXCLUDING COTTON
6302.22.1030 SHEETS WITH TRIM, NAPPED, PRINTED, MANMADE FIBER
6302.22.1040 SHEETS WITH TRIM, NOT NAPPED, PRINTED, MANMADE
FIBER
6302.22.1050 BOLSTER CASES WITH TRIM, PRINTED, MANMADE FIBER
6302.22.1060 BED LINEN WITH TRIM, PRINTED, MANMADE FIBER, NES
6302.22.2020 SHEETS, NOT TRIMMED, PRINTED, MANMADE FIBER
6302.22.2030 BED LINEN, NOT TRIMMED, PRINTED, MANMADE FIBER,
NES
6302.32.1030 SHEETS WITH TRIM, NAPPED, MANMADE FIBER
6302.32.1040 SHEETS WITH TRIM, NOT NAPPED, MANMADE FIBER
6302.32.1050 BOLSTER CASES WITH TRIM, MANMADE FIBER
6302.32.1060 BED LINEN WITH TRIM, MANMADE FIBER, NES
6302.32.2030 SHEETS, NOT TRIMMED, NAPPED, MANMADE FIBER
6302.32.2040 SHEETS NOT TRIMMED, NOT NAPPED, MANMADE FIBER
6302.32.2050 BOLSTER CASES, NOT TRIMMED, MANMADE FIBER
6302.32.2060 BED LINEN NES, MANMADE FIBER
6304.11.2000 BEDSPREADS, KNIT/CROCHETED, MANMADE FIBER
6304.19.1500 BEDSPREADS WITH TRIM, MANMADE FIBER, NES
6304.19.2000 BEDSPREADS, MANMADE FIBER, NES
(b) The primary unit of measure for the following
tariff items in U.S. category 666 shall be NO and
shall be converted into SME by a factor of 0.9:
6302.22.1010 PILLOWCASES WITH TRIM, PRINTED, NAPPED, MANMADE
FIBER
6302.22.1020 PILLOWCASES WITH TRIM, PRINTED, NOT NAPPED,
MANMADE FIBER
6302.22.2010 PILLOWCASES, NOT TRIMMED, PRINTED, MANMADE FIBER
6302.32.1010 PILLOWCASES WITH TRIM, NAPPED, MANMADE FIBER
6302.32.1020 PILLOWCASES WITH TRIM, NOT NAPPED, MANMADE FIBER
6302.32.2010 PILLOWCASES, NOT TRIMMED, NAPPED, MANMADE FIBER
6302.32.2020 PILLOWCASES NOT TRIMMED, NOT NAPPED, MANMADE
FIBER
6. The primary unit of measure for garment parts of
subheadings 6117.90 and 6217.90 shall be KG and shall be
converted into SME by applying the following factors:
Cotton apparel 8.50
Wool apparel 3.70
Man-made fiber apparel 14.40
Other non-cotton vegetable fiber apparel 12.50
Annex 300-B
7. For the purposes of this Schedule:
DPR means dozen pair;
DZ means dozen;
KG means kilogram;
NO means number; and
SM means square meter.
Appendix 5.1
Bilateral Emergency Actions
(Quantitative Restrictions)
As between Canada and the United States, actions otherwise
permitted under Section 5 shall be governed by Article 407 of
the Canada - United States Free Trade Agreement, which is
hereby incorporated into and made a part of this Agreement
solely for that purpose.
Appendix 6
Special Provisions
A. Rules Applicable to Certain Carpets and Sweaters
For purposes of trade between Mexico and the United
States, a good of either Party of HS Chapter 57, subheading
6110.30, 6103.23 or 6104.23 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 more
of the Parties:
(a) a change to subheading 5703.20 or 5703.30 or
heading 57.04 from any heading outside Chapter 57
other than headings 51.06 through 51.13, 52.04
through 52.12, 53.08, 53.11 or any headings of
Chapter 54 or 55; or a change to any other heading
or subheading of Chapter 57 from any heading
outside that chapter other than headings 51.06
through 51.13, 52.04 through 52.12, 53.08, 53.11,
any heading of Chapter 54 or 55.08 through 55.16;
and
Annex 300-B
(b) a change to U.S. tariff item 6110.30.10.10,
6110.30.10.20, 6110.30.15.10, 6110.30.15.20,
6110.30.20.10, 6110.30.20.20, 6110.30.30.10,
6110.30.30.15, 6110.30.30.20, or 6110.30.30.25 or
Mexican tariff item 6110.30.01, or a good of those
tariff items that is classified as part of an
ensemble in subheading 6103.23 or 6104.23, from any
heading outside Chapter 61 other than headings
51.06 through 51.13, 52.04 through 52.12, 53.07
through 53.08, 53.10 through 53.11, any heading of
Chapter 54 or 55, 60.01 or 60.02, provided that the
good is both cut (or knit to shape) and sewn or
otherwise assembled in the territory of one or more
of the Parties; or a change to any other tariff
item of subheading 6110.30 from any heading outside
Chapter 61 other than headings 51.06 through 51.13,
52.04 through 52.12, 53.07 through 53.08, 53.10
through 53.11, any heading of Chapter 54, 55.08
through 55.16, 60.01 or 60.02, provided, that the
good is both cut (or knit to shape) and sewn or
otherwise assembled in the territory of one or more
of the Parties.
B. Preferential Tariff Treatment for Non-Originating Goods of
Another Party
Apparel and Made-Up Goods
1. (a) Each Party shall apply the rate of duty applicable
to originating goods set out in its Schedule to
Annex 302.2, and in accordance with Appendix 2.1,
up to the annual quantities specified in Schedule
6.B.1, in SME, to apparel goods provided for in
Chapters 61 and 62 that are both cut (or knit to
shape) and sewn or otherwise assembled in the
territory of a Party from fabric or yarn produced
or obtained outside the free trade area, and that
meet other applicable conditions for preferred
tariff treatment under this Agreement. The SME
shall be determined in accordance with the
conversion factors set out in Schedule 3.1.3.
(b) The annual tariff preference levels (TPLs) of
imports from Canada into the United States shall be
adjusted annually for five consecutive years
commencing on January 1, 1995, by the following
growth factors:
Annex 300-B
(i) for cotton or man-made fiber apparel, 2
percent,
(ii) for cotton or man-made fiber apparel made
from fabrics woven or knit in a non-Party,
1 percent, and
(iii) for wool apparel, 1 percent.
2. The United States shall apply the rate of duty applicable
to originating goods set out in its Schedule to Annex 302.2,
and in accordance with Appendix 2.1, up to the annual quantity
specified in Schedule 6.B.1, to textile or apparel goods
provided for in Chapters 61, 62 and 63 that are sewn or
otherwise assembled in Mexico as provided for in U.S. tariff
item 9802.00.80.60 from fabric which is knit or woven outside
the territory of the United States or Mexico, when exported to
the United States. This paragraph shall not apply after
quantitative restrictions established pursuant to the
Multifiber Arrangement or any successor agreement are
terminated.
Exceptions
3. As between Mexico and the United States:
(a) apparel goods provided for in Chapters 61 and 62 of
the HS, in which the fabric that determines the
tariff classification of the good is classified in
one of the following tariff provisions, are
ineligible for preferential tariff treatment
provided for under the levels established in
Schedule 6.B.1
(i) blue denim: subheadings 5209.42 and
5211.42, U.S. tariff items 5212.24.60.20,
and 5514.32.00.10 or Mexican tariff items
5212.24.xx and 5514.32.xx; and
(ii) fabric woven as plain weave where two or
more warp ends are woven as one (oxford
cloth) of average yarn number less than 135
metric number: 5208.19, 5208.29, 5208.39,
5208.49, 5208.59, 5210.19, 5210.29,
5210.39, 5210.49, 5210.59, 5512.11,
5512.19, 5513.13, 5513.23, 5513.33, and
5513.43;
Annex 300-B
(b) apparel goods provided for in U.S. tariff items
6107.11.00, 6107.12.00, 6109.10.00 and 6109.90.00
or Mexican tariff items 6107.11.01, 6107.12.01,
6109.10.01 and 6109.90.01 are ineligible for
preferential tariff treatment provided for under
the levels established in Schedule 6.B.1 if they
are composed chiefly of circular knit fabric of
yarn number equal to or less than 100 metric
number. Apparel goods provided for in subheadings
6108.21 and 6108.22 are ineligible for preferential
tariff treatment provided for under the levels
established in parts 2(a), 2(b), 3(a) and 3(b) in
Schedule 6.B.1 if they are composed chiefly of
circular knit fabric of yarn number equal to or
less than 100 metric number; and
(c) apparel goods provided for in U.S. tariff items
6110.30.10.10, 6110.30.10.20, 6110.30.15.10,
6110.30.15.20, 6110.30.20.10, 6110.30.20.20,
6110.30.30.10, 6110.30.30.15, 6110.30.30.20,
6110.30.30.25 and items of those tariff items that
are classified as parts of ensembles in U.S. tariff
items 6103.23.00.30, 6103.23.00.70, 6104.23.00.22
and 6104.23.00.40 or Mexican tariff item 6110.30.01
or goods of that tariff item that are classified as
parts of ensembles in subheading 6103.23 or 6104.23
are ineligible for preferential tariff treatment
provided for under the levels established in
Schedule 6.B.1.
Fabric and Made-Up Goods
4. (a) Each Party shall apply the rate of duty applicable
to originating goods set out in its Schedule to
Annex 302.2, and in accordance with Appendix 2.1,
up to the annual quantities specified in Schedule
6.B.2, in SME, to cotton or man-made fiber fabric
and cotton or man-made fiber made-up textile goods
provided for in Chapters 52 through 55, 58, 60, and
63 that are woven or knit in a Party from yarn
produced or obtained outside the free trade area,
or knit in a Party from yarn spun in a Party from
fiber produced or obtained outside the free trade
area, and to goods of subheading 9404.90 that are
finished and cut and sewn or otherwise assembled
from fabrics of subheadings 5208.11 through
5208.29, 5209.11 through 5209.29, 5210.11 through
5210.29, 5211.11 through 5211.29, 5212.11, 5212.12,
Annex 300-B
5212.21, 5212.22, 5407.41, 5407.51, 5407.71,
5407.81, 5407.91, 5408.21, 5408.31, 5512.11,
5512.21, 5512.91, 5513.11 through 5513.19, 5514.11
through 5514.19, 5516.11, 5516.21, 5516.31,
5516.41, 5516.91 produced or obtained outside the
free trade area, and that meet other applicable
conditions for preferred tariff treatment under
this Agreement. The SME shall be determined in
accordance with the conversion factors set out in
Schedule 3.1.3.
(b) The annual TPL and sub-levels on imports from
Canada into the United States shall be adjusted by
an annual growth factor of two percent for five
consecutive years commencing on January 1, 1995.
5. For purposes of paragraph 4, the number of SME that will
be counted against the TPLs applied as between Canada and the
United States shall be:
(a) for textile goods that are not originating because
certain non-originating textile materials do not
undergo the applicable change in tariff
classification set out in Annex 401 for that good,
but where such materials are 50 percent or less by
weight of the materials of that good, only 50
percent of the SME for that good, determined in
accordance with the conversion factors set out in
Schedule 3.1.3; and
(b) for textile goods that are not originating because
certain non-originating textile materials do not
undergo the applicable change in tariff
classification set out in Annex 401 for that good,
but where such materials are more than 50 percent
by weight of the materials of that good, 100
percent of the SME for that good, determined in
accordance with the conversion factors set out in
Schedule 3.1.3.
Spun Yarn
6. (a) Each Party shall apply the rate of duty applicable
to originating goods set out in its Schedule to
Annex 302.2, and in accordance with Appendix 2.1,
up to the annual quantities specified in Schedule
6.B.3, in kilograms (kg), to cotton or man-made
fiber yarns provided for in headings 52.05 through
Annex 300-B
52.07 or 55.09 through 55.11 that are spun in a
Party from fiber of headings 52.01 through 52.03 or
55.01 through 55.07, produced or obtained outside
the free trade area and that meet other applicable
conditions for preferred tariff treatment under
this Agreement.
(b) The annual TPL on imports from Canada into the
United States shall be adjusted by an annual growth
factor of two percent for five consecutive years
commencing on January 1, 1995.
7. Textile or apparel goods that enter the territory of a
Party under paragraph 1, 2, 4 or 6 shall not be considered to
be originating goods.
Review and Consultations
8. (a) Trade in the goods referred to in paragraphs 1, 2,
4 and 6 shall be monitored by the Parties. On
request of any Party wishing to adjust any annual
TPL for imports into Canada from Mexico or the
United States, imports into Mexico from Canada or
the United States, or imports into the United
States from Mexico, based on the ability to obtain
supplies of particular fibers, yarns and fabrics,
as appropriate, that can be used to produce
originating goods, the Parties shall consult with a
view to adjusting such level. Any adjustment in
the TPL requires the mutual consent of the Parties
concerned.
(b) Canada and the United States shall decide, in the
review referred to in Section 7(3), whether to
continue to apply annual growth factors to the
specified TPLs after the five consecutive years.
If a growth factor for a TPL is not continued as a
result of the review, subparagraph (a) shall also
apply to imports from Canada into the United States
of goods covered by the TPL.
Annex 300-B
Schedule 6.B.1
Preferential Tariff Treatment for Non-Originating
Apparel and Made-Up Goods
1. Imports into Canada: from Mexico from United
States
(a) Cotton or Man-made 6,000,000 SME
fiber apparel 9,000,000 SME
250,000 SME
(b) Wool apparel 919,740 SME
2. Imports into Mexico: from Canada from United
States
(a) Cotton or Man-made 6,000,000 SME
fiber apparel 12,000,000 SME
250,000 SME
(b) Wool apparel 1,000,000 SME
3. Imports into United from Canada from Mexico
States:
80,000,000 SME1 45,000,000 SME
(a) Cotton or Man-made
fiber apparel 5,066,948 SME2 1,500,000 SME
(b) Wool apparel
n/a 25,000,000 SME
(c) Goods imported under
U.S. tariff item
9802.00.80.60
____________________________
1 Of the 80,000,000 SME annual quantity of cotton or man-
made fiber apparel imports from Canada into the United States,
no more than 60,000,000 SME shall be made from fabrics which
are knit or woven in a non-Party.
2 Of the 5,066,948 SME annual quantity of wool apparel
imports from Canada into the United States, no more than
5,016,780 SME shall be men's or boys' wool suits of U.S.
category 443.
Annex 300-B
Schedule 6.B.2
Preferential Tariff Treatment for Non-Originating
Cotton or Man-made Fiber Fabrics and Made-Up Goods
Imports into Canada from Mexico from United States
7,000,000 SME 2,000,000 SME1
Imports into Mexico from Canada from United States
7,000,000 SME 2,000,000 SME
Imports into United from Canada from Mexico
States
65,000,000 SME2 24,000,000 SME3
____________________________
1 The 2,000,000 SME annual quantity of imports from the
United States into Canada shall be limited to goods of chapter
60 of the HS.
2 Of the 65,000,000 SME annual quantity of imports from
Canada into the United States, no more than 35,000,000 SME may
be in goods of chapters 52 through 55, 58 and 63 (other than
subheading 6302.10, 6302.40, 6303.11, 6303.12, 6303.19, 6304.11
or 6304.91) of the HS; and no more than 35,000,000 SME may be
in goods of chapter 60 and subheading 6302.10, 6302.40,
6303.11, 6303.12, 6303.19, 6304.11 or 6304.91 of the HS.
3 Of the 24,000,000 SME annual quantity of imports from
Mexico into the United States, no more than 18,000,000 SME may
be in goods of chapter 60 and subheading 6302.10, 6302.40,
6303.11, 6303.12, 6303.19, 6304.11 or 6304.91 of the HS; and no
more than 6,000,000 SME may be in goods of chapters 52 through
55, 58 and 63 (other than subheading 6302.10, 6302.40, 6303.11,
6303.12, 6303.19, 6304.11 or 6304.91) of the HS.
Annex 300-B
Schedule 6.B.3
Preferential Tariff Treatment for Non-Originating
Cotton or Man-made Fiber Spun Yarn
Imports into Canada from Mexico from United States
1,000,000 kg 1,000,000 kg
Imports into Mexico from Canada from United States
1,000,000 kg 1,000,000 kg
Imports into United from Canada from Mexico
States
10,700,000 kg 1,000,000 kg
Annex 300-B
Appendix 10.1
Country-Specific Definitions
Definitions Specific to Canada
general import statistics means statistics issued by Statistics
Canada or, where available, import permit data provided by the
Export and Import Permits Bureau of the Department of External
Affairs and International Trade, or their successors.
Definitions Specific to Mexico
general import statistics means the statistics of the "Sistema
de Informacion Comercial" (Trade Information System) or its
successor.
Definitions Specific to the United States
category means a grouping of textile or apparel goods defined
in the Correlation: Textile and Apparel Categories with the
Harmonized Tariff Schedule of the United States, 1992 (or
successor publication), published by the United States
Department of Commerce, International Trade Administration,
Office of Textiles and Apparel, Trade and Data Division,
Washington, D.C.; and
general import statistics means statistics of the U.S. Bureau
of the Census or its successor.
Title:Rules of Origin -- Chapter Four
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:70725
Chapter Four
Rules of Origin
Article 401: Originating Goods
Except as otherwise provided in this Chapter, a good shall
originate in the territory of a Party where:
(a) the good is wholly obtained or produced entirely in
the territory of one or more of the Parties, as
defined in Article 415;
(b) each of the non-originating materials used in the
production of the good undergoes an applicable change
in tariff classification set out in Annex 401 as a
result of production occurring entirely in the
territory of one or more of the Parties, or the good
otherwise satisfies the applicable requirements of
that Annex where no change in tariff classification
is required, and the good satisfies all other
applicable requirements of this Chapter;
(c) the good is produced entirely in the territory of one
or more of the Parties exclusively from originating
materials; or
(d) except for a good provided for in Chapters 61 through
63 of the Harmonized System, the good is produced
entirely in the territory of one or more of the
Parties but one or more of the non-originating
materials provided for as parts under the Harmonized
System that are used in the production of the good
does not undergo a change in tariff classification
because
(i) the good was imported into the territory of a
Party in an unassembled or a disassembled form
but was classified as an assembled good pursuant
to General Rule of Interpretation 2(a) of the
Harmonized System, or
(ii) the heading for the good provides for and
specifically describes both the good itself and
its parts and is not further subdivided into
subheadings, or the subheading for the good
provides for and specifically describes both the
good itself and its parts,
provided that the regional value content of the good,
determined in accordance with Article 402, is not
less than 60 percent where the transaction value
method is used, or is not less than 50 percent where
the net cost method is used, and that the good
satisfies all other applicable requirements of this
Chapter.
Article 402: Regional Value Content
1. Except as provided in paragraph 5, each Party shall
provide that the regional value content of a good shall be
calculated, at the choice of the exporter or producer of the
good, on the basis of either the transaction value method set
out in paragraph 2 or the net cost method set out in paragraph
3.
2. Each Party shall provide that an exporter or producer may
calculate the regional value content of a good on the basis of
the following transaction value method:
TV - VNM
RVC = -------------- x 100
TV
where
RVC is the regional value content,
expressed as a percentage;
TV is the transaction value of the good
adjusted to a F.O.B. basis; and
VNM is the value of non-originating materials
used by the producer in the production of
the good.
3. Each Party shall provide that an exporter or producer may
calculate the regional value content of a good on the basis of
the following net cost method:
NC - VNM
RVC = -------------- x 100
NC
where
RVC is the regional value content,
expressed as a percentage;
NC is the net cost of the good; and
VNM is the value of non-originating
materials used by the producer in the
production of the good.
4. Except as provided in Article 403(1) and (2)(a)(i), the
value of non-originating materials used by the producer in the
production of a good shall not, for purposes of calculating the
regional value content of the good under paragraph 2 or 3,
include the value of non-originating materials used to produce
originating materials that are subsequently used in the
production of the good.
5. Each Party shall provide that an exporter or producer
shall calculate the regional value content of a good solely on
the basis of the net cost method set out in paragraph 3 where:
(a) there is no transaction value for the good;
(b) the transaction value of the good is unacceptable
under Article 1 of the Customs Valuation Code;
(c) the good is sold by the producer to a related person
and the volume, by units of quantity, of sales of
identical or similar goods to related persons during
the six-month period immediately preceding the month
in which the good is sold exceeds 85 percent of the
producer's total sales of such goods during that
period;
(d) the good is
(i) a motor vehicle provided for in heading 87.01 or
87.02, subheading 8703.21 through 8703.90, or
heading 87.04, 87.05 or 87.06,
(ii) identified in Annex 403.1 or 403.2 and is for
use in a motor vehicle provided for in heading
87.01 or 87.02, subheading 8703.21 through
8703.90, or heading 87.04, 87.05 or 87.06,
(iii) provided for in subheading 6401.10 through
6406.10, or
(iv) provided for in tariff item 8469.10.aa (word
processing machines);
(e) the exporter or producer chooses to accumulate the
regional value content of the good in accordance with
Article 404; or
(f) the good is designated as an intermediate material
under paragraph 10 and is subject to a regional
value-content requirement.
6. If an exporter or producer of a good calculates the
regional value content of the good on the basis of the
transaction value method set out in paragraph 2 and a Party
subsequently notifies the exporter or producer, during the
course of a verification pursuant to Chapter Five (Customs
Procedures), that the transaction value of the good, or the
value of any material used in the production of the good, is
required to be adjusted or is unacceptable under Article 1 of
the Customs Valuation Code, the exporter or producer may then
also calculate the regional value content of the good on the
basis of the net cost method set out in paragraph 3.
7. Nothing in paragraph 6 shall be construed to prevent any
review or appeal available under Article 510 (Review and
Appeal) of an adjustment to or a rejection of:
(a) the transaction value of a good; or
(b) the value of any material used in the production of a
good.
8. For purposes of calculating the net cost of a good under
paragraph 3, the producer of the good may:
(a) calculate the total cost incurred with respect to all
goods produced by that producer, subtract any sales
promotion, marketing and after-sales service costs,
royalties, shipping and packing costs, and non-
allowable interest costs that are included in the
total cost of all such goods, and then reasonably
allocate the resulting net cost of those goods to the
good,
(b) calculate the total cost incurred with respect to all
goods produced by that producer, reasonably allocate
the total cost to the good, and then subtract any
sales promotion, marketing and after-sales service
costs, royalties, shipping and packing costs and non-
allowable interest costs that are included in the
portion of the total cost allocated to the good, or
(c) reasonably allocate each cost that forms part of the
total cost incurred with respect to the good so that
the aggregate of these costs does not include any
sales promotion, marketing and after-sales service
costs, royalties, shipping and packing costs, and
non-allowable interest costs,
provided that the allocation of all such costs is consistent
with the provisions regarding the reasonable allocation of
costs set out in the Uniform Regulations, established under
Article 511 (Customs Procedures - Uniform Regulations).
9. Except as provided in paragraph 11, the value of a
material used in the production of a good shall:
(a) be the transaction value of the material determined
in accordance with Article 1 of the Customs Valuation
Code; or
(b) in the event that there is no transaction value or
the transaction value of the material is unacceptable
under Article 1 of the Customs Valuation Code, be
determined in accordance with Articles 2 through 7 of
the Customs Valuation Code; and
(c) where not included under subparagraph (a) or (b),
include
(i) freight, insurance, packing and all other costs
incurred in transporting the material to the
location of the producer,
(ii) duties, taxes and customs brokerage fees on the
material paid in the territory of one or more of
the Parties, and
(iii) the cost of waste and spoilage resulting
from the use of the material in the
production of the good, less the value of
renewable scrap or by-product.
10. Except as provided in Article 403(1) and for a component
identified in Annex 403.2, the producer of a good may, for
purposes of calculating the regional value content of the good
under paragraph 2 or 3, designate any self-produced material
used in the production of the good as an intermediate material,
provided that where the intermediate material is subject to a
regional value-content requirement, no other self-produced
material subject to a regional value-content requirement used
in the production of that intermediate material may itself be
designated by the producer as an intermediate material.
11. The value of an intermediate material shall be:
(a) the total cost incurred with respect to all goods
produced by the producer of the good that can be
reasonably allocated to that intermediate material;
or
(b) the aggregate of each cost that forms part of the
total cost incurred with respect to that intermediate
material that can be reasonably allocated to that
intermediate material.
12. The value of an indirect material shall be based on the
Generally Accepted Accounting Principles applicable in the
territory of the Party in which the good is produced.
Article 403: Automotive Goods
1. For purposes of calculating the regional value content
under the net cost method set out in Article 402(3) for:
(a) a good that is a motor vehicle provided for in tariff
item 8702.10.bb or 8702.90.bb (vehicles for the
transport of 15 or fewer persons), or subheading
8703.21 through 8703.90, 8704.21 or 8704.31, or
(b) a good provided for in the tariff provisions listed
in Annex 403.1 where the good is subject to a
regional value-content requirement and is for use as
original equipment in the production of a good
provided for in tariff item 8702.10.bb or 8702.90.bb
(vehicles for the transport of 15 or fewer persons),
or subheading 8702.xx, 8703.21 through 8703.90,
8704.21 or 8704.31,
the value of non-originating materials used by the producer in
the production of the good shall be the sum of the values of
non-originating materials, determined in accordance with
Article 402(9) at the time the non-originating materials are
received by the first person in the territory of a Party who
takes title to them, that are imported from outside the
territories of the Parties under the tariff provisions listed
in Annex 403.1 and that are used in the production of the good
or that are used in the production of any material used in the
production of the good.
2. For purposes of calculating the regional value content
under the net cost method set out in Article 402(3) for a good
that is a motor vehicle provided for in heading 87.01, tariff
item 8702.10.aa or 8702.90.aa (vehicles for the transport of 16
or more persons), subheading 8704.10, 8704.22, 8704.23, 8704.32
or 8704.90, or heading 87.05 or 87.06, or for a component
identified in Annex 403.2 for use as original equipment in the
production of the motor vehicle, the value of non-originating
materials used by the producer in the production of the good
shall be the sum of:
(a) for each material used by the producer listed in
Annex 403.2, whether or not produced by the producer,
at the choice of the producer and determined in
accordance with Article 402, either
(i) the value of such material that is non-
originating, or
(ii) the value of non-originating materials used in
the production of such material; and
(b) the value of any other non-originating material used
by the producer that is not listed in Annex 403.2,
determined in accordance with Article 402.
3. For purposes of calculating the regional value content of
a motor vehicle identified in paragraph 1 or 2, the producer
may average its calculation over its fiscal year, using any one
of the following categories, on the basis of either all motor
vehicles in the category or only those motor vehicles in the
category that are exported to the territory of one or more of
the other Parties:
(a) the same model line of motor vehicles in the same
class of vehicles produced in the same plant in the
territory of a Party;
(b) the same class of motor vehicles produced in the same
plant in the territory of a Party;
(c) the same model line of motor vehicles produced in the
territory of a Party; or
(d) if applicable, the basis set out in Annex 403.3.
4. For purposes of calculating the regional value content for
any or all goods provided for in a tariff provision listed in
Annex 403.1, or a component or material identified in Annex
403.2, produced in the same plant, the producer of the good
may:
(a) average its calculation
(i) over the fiscal year of the motor vehicle
producer to whom the good is sold,
(ii) over any quarter or month, or
(iii) over its fiscal year, if the good is sold
as an aftermarket part;
(b) calculate the average referred to in subparagraph (a)
separately for any or all goods sold to one or more
motor vehicle producers; or
(c) with respect to any calculation under this paragraph,
calculate separately those goods that are exported to
the territory of one or more of the Parties.
5. Notwithstanding Annex 401, and except as provided in
paragraph 6, the regional value-content requirement shall be:
(a) for a producer's fiscal year beginning on the day
closest to January 1, 1998 and thereafter, 56 percent
under the net cost method, and for a producer's
fiscal year beginning on the day closest to January
1, 2002 and thereafter, 62.5 percent under the net
cost method, for
(i) a good that is a motor vehicle provided for in
tariff item 8702.10.bb or 8702.90.bb (vehicles
for the transport of 15 or fewer persons), or
subheading 8703.21 through 8703.90, 8704.21 or
8704.31, and
(ii) a good provided for in heading 84.07 or 84.08,
or subheading 8708.40, that is for use in a
motor vehicle identified in subparagraph (a)(i);
and
(b) for a producer's fiscal year beginning on the day
closest to January 1, 1998 and thereafter, 55 percent
under the net cost method, and for a producer's
fiscal year beginning on the day closest to January
1, 2002 and thereafter, 60 percent under the net cost
method, for
(i) a good that is a motor vehicle provided for in
heading 87.01, subheading 8702.yy (vehicles for
the transport of 16 or more persons), 8704.10,
8704.22, 8704.23, 8704.32 or 8704.90, or heading
87.05 or 87.06,
(ii) a good provided for in heading 84.07 or 84.08 or
subheading 8708.40 that is for use in a motor
vehicle identified in subparagraph (b)(i), and
(iii) except for a good identified in
subparagraph (a)(ii) or provided for in
subheading 8482.10 through 8482.80, 8483.20
or 8483.30, a good identified in Annex
403.1 that is subject to a regional value
content requirement and that is for use in
a motor vehicle identified in subparagraphs
(a)(i) or (b)(i).
6. The regional value-content requirement for a motor vehicle
identified in Article 403(1) or 403(2) shall be:
(a) 50 percent for five years after the date on which the
first motor vehicle prototype is produced in a plant
by a motor vehicle assembler, if
(i) it is a motor vehicle of a class, or marque, or,
except for a motor vehicle identified in Article
403(2), size category and underbody, not
previously produced by the motor vehicle
assembler in the territory of any of the
Parties,
(ii) the plant consists of a new building in which
the motor vehicle is assembled, and
(iii) the plant contains substantially all new
machinery that is used in the assembly of
the motor vehicle; or
(b) 50 percent for two years after the date on which the
first motor vehicle prototype is produced at a plant
following a refit, if it is a different motor vehicle
of a class, or marque, or, except for a motor vehicle
identified in Article 403(2), size category and
underbody, than was assembled by the motor vehicle
assembler in the plant before the refit.
Article 404: Accumulation
1. For purposes of determining whether a good is an
originating good, the production of the good in the territory
of one or more of the Parties by one or more producers shall,
at the choice of the exporter or producer of the good for which
preferential tariff treatment is claimed, be considered to have
been performed in the territory of any of the Parties by that
exporter or producer, provided that:
(a) all non-originating materials used in the production
of the good undergo an applicable tariff
classification change set out in Annex 401, and the
good satisfies any applicable regional value-content
requirement, entirely in the territory of one or more
of the Parties; and
(b) the good satisfies all other applicable requirements
of this Chapter.
2. For purposes of Article 402(10), the production of a
producer that chooses to accumulate its production with that of
other producers under paragraph 1 shall be considered to be the
production of a single producer.
Article 405: De Minimis
1. Except as provided in paragraphs 3 through 6, a good shall
be considered to be an originating good if the value of all
non-originating materials used in the production of the good
that do not undergo an applicable change in tariff
classification set out in Annex 401 is not more than seven
percent of the transaction value of the good, adjusted to a
F.O.B. basis, or, if the transaction value of the good is
unacceptable under Article 1 of the Customs Valuation Code, the
value of all such non-originating materials is not more than
seven percent of the total cost of the good, provided that:
(a) if the good is subject to a regional value-content
requirement, the value of such non-originating
materials shall be taken into account in calculating
the regional value content of the good; and
(b) the good satisfies all other applicable requirements
of this Chapter.
2. A good that is otherwise subject to a regional value-
content requirement shall not be required to satisfy such
requirement if the value of all non-originating materials used
in the production of the good is not more than seven percent of
the transaction value of the good, adjusted to a F.O.B. basis,
or, if the transaction value of the good is unacceptable under
Article 1 of the Customs Valuation Code, the value of all non-
originating materials is not more than seven percent of the
total cost of the good, provided that the good satisfies all
other applicable requirements of this Chapter.
3. Paragraph 1 does not apply to:
(a) a non-originating material provided for in Chapter 4
of the Harmonized System or tariff item 1901.90.aa
(dairy preparations containing over 10 percent by
weight of milk solids) that is used in the production
of a good provided for in Chapter 4 of the Harmonized
System;
(b) a non-originating material provided for in Chapter 4
of the Harmonized System or tariff item 1901.90.aa
(dairy preparations containing over 10 percent by
weight of milk solids) that is used in the production
of a good provided for in tariff item 1901.10.aa
(infant preparations containing over 10 percent by
weight of milk solids), 1901.20.aa (mixes and doughs,
containing over 25 percent by weight of butterfat,
not put up for retail sale), 1901.90.aa (dairy
preparations containing over 10 percent by weight of
milk solids), heading 21.05, or tariff item
2106.90.dd (preparations containing over 10 percent
by weight of milk solids), 2202.90.cc (beverages
containing milk) or 2309.90.aa (animal feeds
containing over 10 percent by weight of milk solids
and less than 6 percent by weight of grain or grain
products);
(c) a non-originating material provided for in heading
08.05 or subheading 2009.11 through 2009.30 that is
used in the production of a good provided for in
subheading 2009.11 through 2009.30 or tariff item
2106.90.bb (concentrated fruit or vegetable juice of
any single fruit or vegetable, fortified with
minerals or vitamins) or 2202.90.aa (fruit or
vegetable juice of any single fruit or vegetable,
fortified with minerals or vitamins);
(d) a non-originating material provided for in Chapter 9
of the Harmonized System that is used in the
production of a good provided for in tariff item
2101.10.aa (instant coffee, not flavored);
(e) a non-originating material provided for in Chapter 15
of the Harmonized System that is used in the
production of a good provided for in heading 15.01
through 15.08, 15.12, 15.14 or 15.15;
(f) a non-originating material provided for in heading
17.01 that is used in the production of a good
provided for in heading 17.01 through 17.03;
(g) a non-originating material provided for in Chapter 17
of the Harmonized System or heading 18.05 that is
used in the production of a good provided for in
subheading 1806.10;
(h) a non-originating material provided for in heading
22.03 through 22.08 that is used in the production of
a good provided for in heading 22.07 through 22.08;
(i) a non-originating material used in the production of
a good provided for in tariff item 7321.11.aa (gas
stove or range), subheading 8415.10, 8415.81 through
8415.83, 8418.10 through 8418.21, 8418.29 through
8418.40, 8421.12, 8422.11, 8450.11 through 8450.20 or
8451.21 through 8451.29, Mexican tariff item
8479.82.aa (trash compactors) or Canadian or U.S.
tariff item 8479.89.aa (trash compactors), or tariff
item 8516.60.aa (electric stove or range); and
(j) a printed circuit assembly that is a non-originating
material used in the production of a good where the
applicable change in tariff classification for the
good, as set out in Annex 401, places restrictions on
the use of such non-originating material.
4. Paragraph 1 does not apply to a non-originating single
juice ingredient provided for in heading 20.09 that is used in
the production of a good provided for in subheading 2009.90, or
tariff item 2106.90.cc (concentrated mixtures of fruit or
vegetable juice, fortified with minerals or vitamins) or
2202.90.bb (mixtures of fruit or vegetable juices, fortified
with minerals or vitamins).
5. Paragraph 1 does not apply to a non-originating material
used in the production of a good provided for in Chapter 1
through 27 of the Harmonized System unless the non-originating
material is provided for in a different subheading than the
good for which origin is being determined under this Article.
6. A good provided for in Chapter 50 through 63 of the
Harmonized System that does not originate because certain
fibers or yarns used in the production of the component of the
good that determines the tariff classification of the good do
not undergo an applicable change in tariff classification set
out in Annex 401, shall nonetheless be considered to originate
if the total weight of all such fibers or yarns in that
component is not more than seven percent of the total weight of
that component.
Article 406: Fungible Goods and Materials
For purposes of determining whether a good is an
originating good:
(a) where originating and non-originating fungible
materials are used in the production of a good, the
determination of whether the materials are
originating need not be made through the
identification of any specific fungible material,
but may be determined on the basis of any of the
inventory management methods set out in the Uniform
Regulations; and
(b) where originating and non-originating fungible goods
are commingled and exported in the same form, the
determination may be made on the basis of any of the
inventory management methods set out in the Uniform
Regulations.
Article 407: Accessories, Spare Parts and Tools
Accessories, spare parts or tools delivered with the good
that form part of the good's standard accessories, spare parts,
or tools, shall be considered as originating if the good
originates and shall be disregarded in determining whether all
the non-originating materials used in the production of the
good undergo the applicable change in tariff classification set
out in Annex 401, provided that:
(a) the accessories, spare parts or tools are not
invoiced separately from the good;
(b) the quantities and value of the accessories, spare
parts or tools are customary for the good; and
(c) if the good is subject to a regional value-content
requirement, the value of the accessories, spare
parts or tools shall be taken into account as
originating or non-originating materials, as the case
may be, in calculating the regional value content of
the good.
Article 408: Indirect Materials
An indirect material shall be considered to be an
originating material without regard to where it is produced.
Article 409: Packaging Materials and Containers for Retail
Sale
Packaging materials and containers in which a good is
packaged for retail sale shall, if classified with the good, be
disregarded in determining whether all the non-originating
materials used in the production of the good undergo the
applicable change in tariff classification set out in Annex
401, and, if the good is subject to a regional value-content
requirement, the value of such packaging materials and
containers shall be taken into account as originating or non-
originating materials, as the case may be, in calculating the
regional value content of the good.
Article 410: Packing Materials and Containers for Shipment
Packing materials and containers in which the good is
packed for shipment shall be disregarded in determining
whether:
(a) the non-originating materials used in the production
of the good undergo an applicable change in tariff
classification set out in Annex 401; and
(b) the good satisfies a regional value-content
requirement.
Article 411: Transshipment
A good shall not be considered to be an originating good
by reason of having undergone production that satisfies the
requirements of Article 401 if, subsequent to that production,
the good undergoes further production or any other operation
outside the territories of the Parties, other than unloading,
reloading or any other operation necessary to preserve it in
good condition or to transport the good to the territory of a
Party.
Article 412: Non-Qualifying Operations
A good shall not be considered to be an originating good
merely by reason of:
(a) mere dilution with water or another substance that
does not materially alter the characteristics of the
good; or
(b) any production or pricing practice in respect of
which it may be demonstrated, on the basis of a
preponderance of evidence, that the object was to
circumvent this Chapter.
Article 413: Interpretation and Application
For purposes of this Chapter:
(a) the basis for tariff classification in this Chapter
is the Harmonized System;
(b) where a good referred to by a tariff item number is
described in parentheses following the tariff item
number, the description is provided for purposes of
reference only;
(c) where applying Article 401(d), the determination of
whether a heading or subheading under the Harmonized
System provides for and specifically describes both a
good and its parts shall be made on the basis of the
nomenclature of the heading or subheading, or the
General Rules of Interpretation, the Chapter Notes or
the Section Notes of the Harmonized System;
(d) in applying the Customs Valuation Code under this
Chapter,
(i) the principles of the Customs Valuation Code
shall apply to domestic transactions, with such
modifications as may be required by the
circumstances, as would apply to international
transactions,
(ii) the provisions of this Chapter shall take
precedence over the Customs Valuation Code to
the extent of any difference, and
(iii) the definitions in Article 415 shall take
precedence over the definitions in the
Customs Valuation Code to the extent of any
difference; and
(e) all costs referred to in this Chapter shall be
recorded and maintained in accordance with the
Generally Accepted Accounting Principles applicable
in the territory of the Party in which the good is
produced.
Article 414: Consultation and Modifications
1. The Parties shall consult regularly to ensure that this
Chapter is administered effectively, uniformly and consistently
with the spirit and objectives of this Agreement, and shall
cooperate in the administration of this Chapter in accordance
with Chapter Five.
2. Any Party that considers that this Chapter requires
modification to take into account developments in production
processes or other matters may submit a proposed modification
along with supporting rationale and any studies to the other
Parties for consideration and any appropriate action under
Chapter Five.
Article 415: Definitions
For purposes of this Chapter:
class of motor vehicles means any one of the following
categories of motor vehicles:
(a) motor vehicles provided for in subheading 8701.20,
tariff item 8702.10.aa or 8702.90.aa (vehicles for
the transport of 16 or more persons), subheading
8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or
heading 87.05 and 87.06;
(b) motor vehicles provided for in subheading 8701.10 or
8701.30 through 8701.90;
(c) motor vehicles provided for in tariff item 8702.10.bb
or 8702.90.bb (vehicles for the transport of 15 or
fewer persons), or subheading 8704.21 and 8704.31; or
(d) motor vehicles provided for in subheading 8703.21
through 8703.90;
F.O.B. means free on board, regardless of the mode of
transportation, at the point of direct shipment by the seller
to the buyer;
fungible goods or fungible materials means goods or materials
that are interchangeable for commercial purposes and whose
properties are essentially identical;
goods wholly obtained or produced entirely in the territory of
one or more of the Parties means:
(a) mineral goods extracted in the territory of one or
more of the Parties;
(b) vegetable goods, as such goods are defined in the
Harmonized System, harvested in the territory of one
or more of the Parties;
(c) live animals born and raised in the territory of one
or more of the Parties;
(d) goods obtained from hunting, trapping or fishing in
the territory of one or more of the Parties;
(e) goods (fish, shellfish and other marine life) taken
from the sea by vessels registered or recorded with a
Party and flying its flag;
(f) goods produced on board factory ships from the goods
referred to in subparagraph (e) provided such factory
ships are registered or recorded with that Party and
fly its flag;
(g) goods taken by a Party or a person of a Party from
the seabed or beneath the seabed outside territorial
waters, provided that a Party has rights to exploit
such seabed;
(h) goods taken from outer space, provided they are
obtained by a Party or a person of a Party and not
processed in a non-Party;
(i) waste and scrap derived from
(i) production in the territory of one or more of
the Parties, or
(ii) used goods collected in the territory of one or
more of the Parties, provided such goods are fit
only for the recovery of raw materials; and
(j) goods produced in the territory of one or more of the
Parties exclusively from goods referred to in
subparagraphs (a) through (i), or from their
derivatives, at any stage of production;
identical or similar goods means "identical goods" and "similar
goods", respectively, as defined in the Customs Valuation Code;
indirect material means a good used in the production, testing
or inspection of a good but not physically incorporated into
the good, or a good used in the maintenance of buildings or the
operation of equipment associated with the production of a
good, including:
(a) fuel and energy;
(b) tools, dies and molds;
(c) spare parts and materials used in the maintenance of
equipment and buildings;
(d) lubricants, greases, compounding materials and other
materials used in production or used to operate
equipment and buildings;
(e) gloves, glasses, footwear, clothing, safety equipment
and supplies;
(f) equipment, devices, and supplies used for testing or
inspecting the goods;
(g) catalysts and solvents; and
(h) any other goods that are not incorporated into the
good but whose use in the production of the good can
reasonably be demonstrated to be a part of that
production;
intermediate material means a material that is self-produced
and used in the production of a good, and designated pursuant
to Article 402(10);
marque means the trade name used by a separate marketing
division of a motor vehicle assembler;
material means a good that is used in the production of another
good, and includes a part or an ingredient;
model line means a group of motor vehicles having the same
platform or model name;
motor vehicle assembler means a producer of motor vehicles and
any related persons or joint ventures in which the producer
participates;
new building means a new construction, including at least the
pouring or construction of new foundation and floor, the
erection of a new structure and roof, and installation of new
plumbing, electrical and other utilities to house a complete
vehicle assembly process;
net cost means total cost minus sales promotion, marketing and
after-sales service costs, royalties, shipping and packing
costs, and non-allowable interest costs that are included in
the total cost;
net cost of a good means the net cost that can be reasonably
allocated to a good using one of the methods set out in Article
402(8);
non-allowable interest costs means interest costs incurred by a
producer that exceed 700 basis points above the applicable
federal government interest rate identified in the Uniform
Regulations for comparable maturities;
non-originating good or non-originating material means a good
or material that does not qualify as originating under this
Chapter;
producer means a person who grows, mines, harvests, fishes,
traps, hunts, manufactures, processes or assembles a good;
production means growing, mining, harvesting, fishing,
trapping, hunting, manufacturing, processing or assembling a
good;
reasonably allocate means to apportion in a manner appropriate
to the circumstances;
refit means a plant closure, for purposes of plant conversion
or retooling, that lasts at least three months;
related person means a person related to another person on the
basis that:
(a) they are officers or directors of one another's
businesses;
(b) they are legally recognized partners in business;
(c) they are employer and employee;
(d) any person directly or indirectly owns, controls or
holds 25 percent or more of the outstanding voting
stock or shares of each of them;
(e) one of them directly or indirectly controls the
other;
(f) both of them are directly or indirectly controlled by
a third person; or
(g) they are members of the same family (members of the
same family are natural or adoptive children,
brothers, sisters, parents, grandparents, or
spouses);
royalties means payments of any kind, including payments under
technical assistance or similar agreements, made as
consideration for the use or right to use any copyright,
literary, artistic, or scientific work, patent, trademark,
design, model, plan, secret formula or process, excluding those
payments under technical assistance or similar agreements that
can be related to specific services such as:
(a) personnel training, without regard to where
performed; and
(b) if performed in the territory of one or more of the
Parties, engineering, tooling, die-setting, software
design and similar computer services, or other
services;
sales promotion, marketing and after-sales service costs means
the following costs related to sales promotion, marketing and
after-sales service:
(a) sales and marketing promotion; media advertising;
advertising and market research; promotional and
demonstration materials, exhibits; sales conferences,
trade shows and conventions; banners; marketing
displays; free samples; sales, marketing and after-
sales service literature (product brochures,
catalogs, technical literature, price lists, service
manuals, sales aid information); establishment and
protection of logos and trademarks; sponsorships;
wholesale and retail restocking charges;
entertainment;
(b) sales and marketing incentives; consumer, retailer or
wholesaler rebates; merchandise incentives;
(c) salaries and wages, sales commissions, bonuses,
benefits (for example, medical, insurance, pension),
travelling and living expenses, membership and
professional fees, for sales promotion, marketing and
after-sales service personnel;
(d) recruiting and training of sales promotion, marketing
and after-sales service personnel, and after-sales
training of customers' employees, where such costs
are identified separately for sales promotion,
marketing and after-sales service of goods on the
financial statements or cost accounts of the
producer;
(e) product liability insurance;
(f) office supplies for sales promotion, marketing and
after-sales service of goods, where such costs are
identified separately for sales promotion, marketing
and after-sales service of goods on the financial
statements or cost accounts of the producer;
(g) telephone, mail and other communications, where such
costs are identified separately for sales promotion,
marketing and after-sales service of goods on the
financial statements or cost accounts of the
producer;
(h) rent and depreciation of sales promotion, marketing
and after-sales service offices and distribution
centers;
(i) property insurance premiums, taxes, cost of
utilities, and repair and maintenance of sales
promotion, marketing and after-sales service offices
and distribution centers, where such costs are
identified separately for sales promotion, marketing
and after-sales service of goods on the financial
statements or cost accounts of the producer; and
(j) payments by the producer to other persons for
warranty repairs;
self-produced material means a material that is produced by the
producer of a good and used in the production of that good;
shipping and packing costs means the costs incurred in packing
a good for shipment and shipping the good from the point of
direct shipment to the buyer, excluding costs of preparing and
packaging the good for retail sale;
size category means for a motor vehicle identified in Article
403(1)(a):
(i) 85 or less cubic feet of passenger and luggage
interior volume,
(ii) between 85 and 100 cubic feet of passenger and
luggage interior volume,
(iii) 100 to 110 cubic feet of passenger and
luggage interior volume,
(iv) between 110 and 120 cubic feet of passenger and
luggage interior volume, and
(v) 120 and more cubic feet of passenger and luggage
interior volume;
total cost means all product costs, period costs and other
costs incurred in the territory of one or more of the Parties;
transaction value means the price actually paid or payable for
a good or material with respect to a transaction of, except for
the application of Article 403(1) or 403(2)(a), the producer of
the good, adjusted in accordance with the principles of
paragraphs 1, 3 and 4 of Article 8 of the Customs Valuation
Code, regardless of whether the good or material is sold for
export;
used means used or consumed in the production of goods; and
underbody means the floor pan of a motor vehicle.
Annex 403.1
List of Tariff Provisions for Article 403(1)
Note: For purposes of reference only, descriptions are
provided next to the corresponding tariff provision.
40.09 (tubes, pipes and hoses)
4010.10 (rubber belts)
40.11 (tires)
4016.93.aa (rubber, gaskets, washers and other seals for
automotive goods)
4016.99.aa (vibration control goods)
7007.11 and 7007.21 (laminated safety glass)
7009.10 (rear-view mirrors)
8301.20 (locks for the kind used on motor vehicles)
8407.31 (engines of a cylinder capacity not exceeding 50cc)
8407.32 (engines of a cylinder capacity exceeding 50cc but not
exceeding 250cc)
8407.33 (engines of a cylinder capacity exceeding 250cc but not
exceeding 1000cc)
8407.34.aa (engines of a cylinder capacity exceeding 1000cc but
not exceeding 2000cc);
8407.34.bb (engines of a cylinder capacity exceeding 2000cc)
8408.20 (diesel engines for vehicles of Chapter 87)
84.09 (parts of engines)
8413.30 (pumps)
8414.80.22 (turbochargers and superchargers for motor vehicles,
where not provided for under subheading
8414.59)
8414.59.aa (turbochargers and superchargers for motor vehicles,
where not provided for under subheading
8414.80)
8415.81 through 8415.83 (air conditioners)
8421.39.aa (catalytic convertors)
8481.20, 8481.30 and 8481.80 (valves)
8482.10 through 8482.80 (ball bearings)
8483.10 through 8483.40 (transmission shafts and housed ball
bearings)
8483.50 (flywheels)
8501.10 (electric motors)
8501.20 (electric motors)
8501.31 (electric motors)
8501.32.aa (electric motors that provide primary source for
electric powered vehicles of subheading
8703.90)
Annex 403.1
8507.20.aa, 8507.30.aa, 8507.40.aa and 8507.80.aa (batteries
that provide primary source for electric cars)
8511.30 (distributors)
8511.40 (starter motors)
8511.50 (other generators)
8512.20 (other lighting or visual signalling equipment)
8512.40 (windscreen wipers, defrosters)
8519.91 (cassette decks)
8527.21 (radios combined with cassette players)
8527.29 (radios)
8536.50 (switches)
8536.90 (junction boxes)
8537.10.aa (motor control centers)
8539.10 (seal beamed headlamps)
8539.21 (tungsten halogen headlamps)
8544.30 (wire harnesses)
87.06 (chassis)
87.07 (bodies)
8708.10.aa (bumpers but not parts thereof)
8708.21 (safety seat belts)
8708.29.aa (body stampings)
8708.29.bb (inflators and modules for airbags)
8708.29.cc (door assemblies)
8708.29.dd (airbags for use in motor vehicles, where not
provided for under subheading 8708.99)
8708.39 (brakes and servo-brakes, and parts thereof)
8708.40 (gear boxes, transmissions)
8708.50 (drive axles with differential, whether or not provided
with other transmission components)
8708.60 (non-driving axles, and parts thereof)
8708.70.aa (road wheels, but not parts or accessories thereof)
8708.80 (suspension shock-absorbers)
8708.91 (radiators)
8708.92 (silencers (mufflers) and exhaust pipes)
8708.93.aa (clutches, but not parts thereof)
8708.94 (steering wheels, steering columns and steering boxes)
8708.99.aa (vibration control goods containing rubber)
8708.99.bb (double flanged wheel hub units)
8708.99.cc (airbags for use in motor vehicles, where not
provided for under subheading 8708.29)
8708.99.dd (half-shafts and drive shafts)
8708.99.ee (other parts for powertrains)
8708.99.ff (parts for suspension systems)
8708.99.gg (parts for steering systems)
8708.99.hh (other parts and accessories not provided for
elsewhere in subheading 8708.99)
9031.80 (monitoring devices)
9032.89 (automatic regulating instruments)
Annex 403.1
9401.20 (seats)
Annex 403.2
List of Components and Materials
1. Component: Engines provided for in heading 84.07 or 84.08
Materials: cast block, cast head, fuel nozzle, fuel
injector pumps, glow plugs, turbochargers and
superchargers, electronic engine controls, intake
manifold, exhaust manifold, intake/exhaust valves,
crankshaft/camshaft, alternator, starter, air cleaner
assembly, pistons, connecting rods and assemblies made
therefrom (or rotor assemblies for rotary engines),
flywheel (for manual transmissions), flexplate (for
automatic transmissions), oil pan, oil pump and pressure
regulator, water pump, crankshaft and camshaft gears, and
radiator assemblies or charge-air coolers.
2. Component: Gear boxes (transmissions) provided for in
subheading 8708.40
Materials: (a) for manual transmissions - transmission
case and clutch housing; clutch; internal shifting
mechanism; gear sets, synchronizers and shafts; and (b)
for torque convertor type transmissions - transmission
case and convertor housing; torque convertor assembly;
gear sets and clutches; and electronic transmission
controls.
Annex 403.3
Regional Value-Content Calculation for CAMI
1. For purposes of Article 403, in determining whether motor
vehicles produced by CAMI Automotive, Inc. ("CAMI") in the
territory of Canada and imported into the territory of the
United States qualify as originating goods, CAMI may average
its calculation of the regional value content of a class of
motor vehicles or a model line of motor vehicles produced in a
fiscal year in the territory of Canada by CAMI for sale in the
territory of one or more of the Parties with the calculation of
the regional value content of the corresponding class of motor
vehicles or model line of motor vehicles produced in the
territory of Canada by General Motors of Canada Limited in the
fiscal year that corresponds most closely to CAMI's fiscal
year, provided that:
(a) at the beginning of CAMI's fiscal year General Motors
of Canada Limited owns 50 percent or more of the
voting common stock of CAMI; and
(b) General Motors of Canada Limited, General Motors
Corporation, General Motors de Mexico, S.A. de C.V.,
and any subsidiary directly or indirectly owned by
any of them, or by any combination thereof, ("GM")
acquires 75 percent or more by unit of quantity of
the class of motor vehicles or model line of motor
vehicles, as the case may be, that CAMI has produced
in the territory of Canada in CAMI's fiscal year for
sale in the territory of one or more of the Parties.
2. If GM acquires less than 75 percent by unit of quantity of
the class of motor vehicles or model line of motor vehicles, as
the case may be, that CAMI has produced in the territory of
Canada in CAMI's fiscal year for sale in the territory of one
or more of the Parties, CAMI may average in the manner set out
in paragraph 1 only those motor vehicles that are acquired by
GM for distribution under the GEO marque or other GM marque.
3. In calculating the regional value content of motor
vehicles produced by CAMI in the territory of Canada, CAMI may
choose to average the calculation in paragraph 1 or 2 over a
period of two fiscal years in the event that any motor vehicle
assembly plant operated by CAMI or any motor vehicle assembly
plant operated by General Motors of Canada Limited with which
Annex 403.3
CAMI is averaging its regional value content is closed for more
than two consecutive months:
(a) for the purpose of re-tooling for a model change, or
(b) as the result of any event or circumstance (other
than the imposition of antidumping and countervailing
duties, or an interruption of operations resulting
from a labor strike, lock-out, labor dispute,
picketing or boycott of or by employees of CAMI or
GM), that CAMI or GM could not reasonably have been
expected to avert by corrective action or by exercise
of due care and diligence, including a shortage of
materials, failure of utilities, or inability to
obtain or delay in obtaining raw materials, parts,
fuel or utilities.
The averaging may be for CAMI's fiscal year in which a CAMI or
any General Motors of Canada Limited plant with which CAMI is
averaging is closed and either the previous or subsequent
fiscal year. In the event that the period of closure spans two
fiscal years, the averaging may be only for those two fiscal
years.
4. For purposes of this Article, where as a result of an
amalgamation, reorganization, division or similar transaction:
(a) a motor vehicle producer (the "successor producer")
acquires all or substantially all of the assets used
by GM, and
(b) the successor producer, directly or indirectly
controls, or is controlled by, GM, or both the
successor producer and GM are controlled by the same
person,
the successor producer shall be deemed to be GM.
Title:Customs Procedures -- Chapter Five
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:46776
Chapter Five
Customs Procedures
Section A - Certification of Origin
Article 501: Certificate of Origin
1. The Parties shall establish by January 1, 1994 a
Certificate of Origin for the purpose of certifying that a good
being exported from the territory of a Party into the territory
of another Party qualifies as an originating good, and may
thereafter revise the Certificate by agreement.
2. Each Party may require that a Certificate of Origin for a
good imported into its territory be completed in a language
required under its law.
3. Each Party shall:
(a) require an exporter in its territory to complete and
sign a Certificate of Origin for any exportation of a
good for which an importer may claim preferential
tariff treatment on importation of the good into the
territory of another Party; and
(b) provide that where an exporter in its territory is
not the producer of the good, the exporter may
complete and sign a Certificate on the basis of
(i) its knowledge of whether the good qualifies as
an originating good,
(ii) its reasonable reliance on the producer's
written representation that the good qualifies
as an originating good, or
(iii) a completed and signed Certificate for the
good voluntarily provided to the exporter
by the producer.
4. Nothing in paragraph 3 shall be construed to require a
producer to provide a Certificate of Origin to an exporter.
5. Each Party shall provide that a Certificate of Origin that
has been completed and signed by an exporter or a producer in
the territory of another Party that is applicable to:
(a) a single importation of a good into the Party's
territory, or
(b) multiple importations of identical goods into the
Party's territory that occur within a specified
period, not exceeding 12 months, set out therein by
the exporter or producer,
shall be accepted by its customs administration for four years
after the date on which the Certificate was signed.
Article 502: Obligations Regarding Importations
1. Except as otherwise provided in this Chapter, each Party
shall require an importer in its territory that claims
preferential tariff treatment for a good imported into its
territory from the territory of another Party to:
(a) make a written declaration, based on a valid
Certificate of Origin, that the good qualifies as an
originating good;
(b) have the Certificate in its possession at the time
the declaration is made;
(c) provide, on the request of that Party's customs
administration, a copy of the Certificate; and
(d) promptly make a corrected declaration and pay any
duties owing where the importer has reason to believe
that a Certificate on which a declaration was based
contains information that is not correct.
2. Each Party shall provide that, where an importer in its
territory claims preferential tariff treatment for a good
imported into its territory from the territory of another
Party:
(a) the Party may deny preferential tariff treatment to
the good if the importer fails to comply with any
requirement under this Chapter; and
(b) the importer shall not be subject to penalties for
the making of an incorrect declaration, if it
voluntarily makes a corrected declaration pursuant to
paragraph 1(d).
3. Each Party shall provide that, where a good would have
qualified as an originating good when it was imported into the
territory of that Party but no claim for preferential tariff
treatment was made at that time, the importer of the good may,
no later than one year after the date on which the good was
imported, apply for a refund of any excess duties paid as the
result of the good not having been accorded preferential tariff
treatment, on presentation of:
(a) a written declaration that the good qualified as an
originating good at the time of importation;
(b) a copy of the Certificate of Origin; and
(c) such other documentation relating to the importation
of the good as that Party may require.
Article 503: Exceptions
Each Party shall provide that a Certificate of Origin
shall not be required for:
(a) a commercial importation of a good whose value does
not exceed US$1,000 or its equivalent amount in the
Party's currency, or such higher amount as it may
establish, except that it may require that the
invoice accompanying the importation include a
statement certifying that the good qualifies as an
originating good,
(b) a non-commercial importation of a good whose value
does not exceed US$1,000 or its equivalent amount in
the Party's currency, or such higher amount as it may
establish, or
(c) an importation of a good for which the Party into
whose territory the good is imported has waived the
requirement for a Certificate of Origin,
provided that the importation does not form part of a series of
importations that may reasonably be considered to have been
undertaken or arranged for the purpose of avoiding the
certification requirements of Articles 501 and 502.
Article 504: Obligations Regarding Exportations
1. Each Party shall provide that:
(a) an exporter in its territory, or a producer in its
territory that has provided a copy of a Certificate
of Origin to that exporter pursuant to Article
501(3)(b)(iii), shall provide a copy of the
Certificate to its customs administration on request;
and
(b) an exporter or a producer in its territory that has
completed and signed a Certificate of Origin, and
that has reason to believe that the Certificate
contains information that is not correct, shall
promptly notify in writing all persons to whom the
Certificate was given by the exporter or producer of
any change that could affect the accuracy or validity
of the Certificate.
2. Each Party:
(a) shall provide that a false certification by an
exporter or a producer in its territory that a good
to be exported to the territory of another Party
qualifies as an originating good shall have the same
legal consequences, with appropriate modifications,
as would apply to an importer in its territory for a
contravention of its customs laws and regulations
regarding the making of a false statement or
representation; and
(b) may apply such measures as the circumstances may
warrant where an exporter or a producer in its
territory fails to comply with any requirement of
this Chapter.
3. No Party may impose penalties on an exporter or a producer
in its territory that voluntarily provides written notification
pursuant to paragraph (1)(b) with respect to the making of an
incorrect certification.
Section B - Administration and Enforcement
Article 505: Records
Each Party shall provide that:
(a) an exporter or a producer in its territory that
completes and signs a Certificate of Origin shall
maintain in its territory, for five years after the
date on which the Certificate was signed or for such
longer period as the Party may specify, all records
relating to the origin of a good for which
preferential tariff treatment was claimed in the
territory of another Party, including records
associated with
(i) the purchase of, cost of, value of, and payment
for, the good that is exported from its
territory,
(ii) the purchase of, cost of, value of, and payment
for, all materials, including indirect
materials, used in the production of the good
that is exported from its territory, and
(iii) the production of the good in the form in
which the good is exported from its
territory; and
(b) an importer claiming preferential tariff treatment
for a good imported into the Party's territory shall
maintain in that territory, for five years after the
date of importation of the good or for such longer
period as the Party may specify, such documentation,
including a copy of the Certificate, as the Party may
require relating to the importation of the good.
Article 506: Origin Verifications
1. For purposes of determining whether a good imported into
its territory from the territory of another Party qualifies as
an originating good, a Party may, through its customs
administration, conduct a verification solely by means of:
(a) written questionnaires to an exporter or a producer
in the territory of another Party;
(b) visits to the premises of an exporter or a producer
in the territory of another Party to review the
records referred to in Article 505(a) and observe the
facilities used in the production of the good; or
(c) such other procedure as the Parties may agree.
2. Prior to conducting a verification visit pursuant to
paragraph (1)(b), a Party shall, through its customs
administration:
(a) deliver a written notification of its intention to
conduct the visit to
(i) the exporter or producer whose premises are to
be visited,
(ii) the customs administration of the Party in whose
territory the visit is to occur, and
(iii) if requested by the Party in whose
territory the visit is to occur, the
embassy of that Party in the territory of
the Party proposing to conduct the visit;
and
(b) obtain the written consent of the exporter or
producer whose premises are to be visited.
3. The notification referred to in paragraph 2 shall include:
(a) the identity of the customs administration issuing
the notification;
(b) the name of the exporter or producer whose premises
are to be visited;
(c) the date and place of the proposed verification
visit;
(d) the object and scope of the proposed verification
visit, including specific reference to the good that
is the subject of the verification;
(e) the names and titles of the officials performing the
verification visit; and
(f) the legal authority for the verification visit.
4. Where an exporter or a producer has not given its written
consent to a proposed verification visit within 30 days of
receipt of notification pursuant to paragraph 2, the notifying
Party may deny preferential tariff treatment to the good that
would have been the subject of the visit.
5. Each Party shall provide that, where its customs
administration receives notification pursuant to paragraph 2,
the customs administration may, within 15 days of receipt of
the notification, postpone the proposed verification visit for
a period not exceeding 60 days from the date of such receipt,
or for such longer period as the Parties may agree.
6. A Party shall not deny preferential tariff treatment to a
good based solely on the postponement of a verification visit
pursuant to paragraph 5.
7. Each Party shall permit an exporter or a producer whose
good is the subject of a verification visit by another Party to
designate two observers to be present during the visit,
provided that:
(a) the observers do not participate in a manner other
than as observers; and
(b) the failure of the exporter or producer to designate
observers shall not result in the postponement of the
visit.
8. Each Party shall, through its customs administration,
conduct a verification of a regional value-content requirement
in accordance with the Generally Accepted Accounting Principles
applied in the territory of the Party from which the good was
exported.
9. The Party conducting a verification shall provide the
exporter or producer whose good is the subject of the
verification with a written determination of whether the good
qualifies as an originating good, including findings of fact
and the legal basis for the determination.
10. Where verifications by a Party indicate a pattern of
conduct by an exporter or a producer of false or unsupported
representations that a good imported into its territory
qualifies as an originating good, the Party may withhold
preferential tariff treatment to identical goods exported or
produced by such person until that person establishes
compliance with Chapter Four (Rules of Origin).
11. Each Party shall provide that where it determines that a
certain good imported into its territory does not qualify as an
originating good based on a tariff classification or a value
applied by the Party to one or more materials used in the
production of the good, which differs from the tariff
classification or value applied to the materials by the Party
from whose territory the good was exported, the Party's
determination shall not become effective until it notifies in
writing both the importer of the good and the person that
completed and signed the Certificate of Origin for the good of
its determination.
12. A Party shall not apply a determination made under
paragraph 11 to an importation made before the effective date
of the determination where:
(a) the customs administration of the Party from whose
territory the good was exported has issued an advance
ruling on the tariff classification or on the value
of such materials, or has given consistent treatment
to the entry of the materials under the tariff
classification or value at issue, on which a person
is entitled to rely; and
(b) the advance ruling or consistent treatment was given
prior to notification of the determination.
13. If a Party denies preferential tariff treatment to a good
pursuant to a determination made under paragraph 11, it shall
postpone the effective date of the denial for a period not
exceeding 90 days where the importer of the good, or the person
who completed and signed the Certificate of Origin for the
good, demonstrates that it has relied in good faith to its
detriment on the tariff classification or value applied to such
materials by the customs administration of the Party from whose
territory the good was exported.
Article 507: Confidentiality
1. Each Party shall maintain, in accordance with its law, the
confidentiality of confidential business information collected
pursuant to this Chapter and shall protect that information
from disclosure that could prejudice the competitive position
of the persons providing the information.
2. The confidential business information collected pursuant
to this Chapter may only be disclosed to those authorities
responsible for the administration and enforcement of
determinations of origin, and of customs and revenue matters.
Article 508: Penalties
1. Each Party shall maintain measures imposing criminal,
civil or administrative penalties for violations of its laws
and regulations relating to this Chapter.
2. Nothing in Articles 502(2), 504(3) or 506(6) shall be
construed to prevent a Party from applying such measures as the
circumstances may warrant.
Section C - Advance Rulings
Articles 509: Advance Rulings
1. Each Party shall, through its customs administration,
provide for the expeditious issuance of written advance
rulings, prior to the importation of a good into its territory,
to an importer in its territory or an exporter or a producer in
the territory of another Party, on the basis of the facts and
circumstances presented by such importer, exporter or producer
of the good, concerning:
(a) whether materials imported from a non-Party used in
the production of a good undergo an applicable change
in tariff classification set out in Annex 401 as a
result of production occurring entirely in the
territory of one or more of the Parties;
(b) whether a good satisfies a regional value-content
requirement under either the transaction value method
or the net cost method set out in Chapter Four;
(c) for the purpose of determining whether a good
satisfies a regional value-content requirement under
Chapter Four, the appropriate basis or method for
value to be applied by an exporter or a producer in
the territory of another Party, in accordance with
the principles of the Customs Valuation Code, for
calculating the transaction value of the good or of
the materials used in the production of the good;
(d) for the purpose of determining whether a good
satisfies a regional value-content requirement under
Chapter Four, the appropriate basis or method for
reasonably allocating costs, in accordance with the
allocation methods set out in the Uniform
Regulations, for calculating the net cost of the good
or the value of an intermediate material;
(e) whether a good qualifies as an originating good under
Chapter Four;
(f) whether a good that re-enters its territory after the
good has been exported from its territory to the
territory of another Party for repair or alteration
qualifies for duty-free treatment in accordance with
Article 307 (Goods Re-Entered after Repair or
Alteration);
(g) whether the proposed or actual marking of a good
satisfies country of origin marking requirements
under Article 311 (Country of Origin Marking);
(h) whether an originating good qualifies as a good of a
Party under Annex 300-B (Textile and Apparel Goods),
Annex 302.2 (Tariff Elimination) or Chapter Seven
(Agriculture and Sanitary and Phytosanitary
Measures);
(i) whether a good is a qualifying good under Chapter
Seven; or
(j) such other matters as the Parties may agree.
2. Each Party shall adopt or maintain procedures for the
issuance of advance rulings, including a detailed description
of the information reasonably required to process an
application for a ruling.
3. Each Party shall provide that its customs administration:
(a) may, at any time during the course of an evaluation
of an application for an advance ruling, request
supplemental information from the person requesting
the ruling;
(b) shall, after it has obtained all necessary
information from the person requesting an advance
ruling, issue the ruling within the periods specified
in the Uniform Regulations; and
(c) shall, where the advance ruling is unfavorable to the
person requesting it, provide to that person a full
explanation of the reasons for the ruling.
4. Subject to paragraph 6, each Party shall apply an advance
ruling to importations into its territory of the good for which
the ruling was requested, beginning on the date of its issuance
or such later date as may be specified in the ruling.
5. Each Party shall provide to any person requesting an
advance ruling the same treatment, including the same
interpretation and application of provisions of Chapter Four
regarding a determination of origin, as it provided to any
other person to whom it issued an advance ruling, provided that
the facts and circumstances are identical in all material
respects.
6. The issuing Party may modify or revoke an advance ruling:
(a) if the ruling is based on an error
(i) of fact,
(ii) in the tariff classification of a good or a
material that is the subject of the ruling,
(iii) in the application of a regional value-
content requirement under Chapter Four,
(iv) in the application of the rules for determining
whether a good qualifies as a good of a Party
under Annex 300-B, 302.2 or Chapter Seven,
(v) in the application of the rules for determining
whether a good is a qualifying good under
Chapter Seven, or
(vi) in the application of the rules for determining
whether a good that re-enters its territory
after the good has been exported from its
territory to the territory of another Party for
repair or alteration qualifies for duty-free
treatment under Article 307;
(b) if the ruling is not in accordance with an
interpretation agreed by the Parties regarding
Chapter Three (National Treatment and Market Access
for Goods) or Chapter Four;
(c) if there is a change in the material facts or
circumstances on which the ruling is based;
(d) to conform with a modification of Chapter Three,
Chapter Four, this Chapter, Chapter Seven, the
Marking Rules or the Uniform Regulations; or
(e) to conform with a judicial decision or a change in
its domestic law.
7. Each Party shall provide that any modification or
revocation of an advance ruling shall be effective on the date
on which the modification or revocation is issued, or on such
later date as may be specified therein, and shall not be
applied to importations of a good that have occurred prior to
that date, unless the person to whom the advance ruling was
issued has not acted in accordance with its terms and
conditions.
8. Notwithstanding paragraph 7, the issuing Party shall
postpone the effective date of such modification or revocation
for a period not exceeding 90 days where the person to whom the
advance ruling was issued has relied in good faith to its
detriment on that ruling.
9. Each Party shall provide that where its customs
administration examines the regional value content of a good
for which it has issued an advance ruling pursuant to
subparagraph 1(c), (d) or (f), it shall evaluate whether:
(a) the exporter or producer has complied with the terms
and conditions of the advance ruling;
(b) the exporter's or producer's operations are
consistent with the material facts and circumstances
on which the advance ruling is based; and
(c) the supporting data and computations used in applying
the basis or method for calculating value or
allocating cost were correct in all material
respects.
10. Each Party shall provide that where its customs
administration determines that any requirement in paragraph 9
has not been satisfied, it may modify or revoke the advance
ruling as the circumstances may warrant.
11. Each Party shall provide that, where the person to whom an
advance ruling was issued demonstrates that it used reasonable
care and acted in good faith in presenting the facts and
circumstances on which the ruling was based, and where the
customs administration of a Party determines that the ruling
was based on incorrect information, the person to whom the
ruling was issued shall not be subject to penalties.
12. Each Party shall provide that where it issues an advance
ruling to a person that has misrepresented or omitted material
facts or circumstances on which the ruling is based or has
failed to act in accordance with the terms and conditions of
the ruling, the Party may apply such measures as the
circumstances may warrant.
Section D - Review and Appeal of Origin Determinations and
Advance Rulings
Article 510: Review and Appeal
1. Each Party shall grant substantially the same rights of
review and appeal of determinations of origin and advance
rulings by its customs administration as it provides to
importers in its territory to any person:
(a) who completes and signs a Certificate of Origin for a
good that has been the subject of a determination of
origin;
(b) whose good has been the subject of a country of
origin marking determination pursuant to Article 311
(Country of Origin Marking); or
(c) who has received an advance ruling pursuant to
Article 509(1).
2. Further to Articles 1804 (Administrative Proceedings) and
1805 (Review and Appeal), each Party shall provide that the
rights of review and appeal referred to in paragraph 1 shall
include access to:
(a) at least one level of administrative review
independent of the official or office responsible for
the determination under review; and
(b) in accordance with its domestic law, judicial or
quasi-judicial review of the determination or
decision taken at the final level of administrative
review.
Section E - Uniform Regulations
Article 511: Uniform Regulations
1. The Parties shall establish, and implement through their
respective laws or regulations by January 1, 1994, Uniform
Regulations regarding the interpretation, application and
administration of Chapter Four, this Chapter and other matters
as may be agreed by the Parties.
2. Each Party shall implement any modification of or addition
to the Uniform Regulations no later than 180 days after the
Parties agree on such modification or addition, or such other
period as the Parties may agree.
Section F - Cooperation
Article 512: Cooperation
1. Each Party shall notify the other Parties of the following
determinations, measures and rulings, including to the greatest
extent practicable those that are prospective in application:
(a) a determination of origin issued as the result of a
verification conducted pursuant to Article 506(1);
(b) a determination of origin that the Party is aware is
contrary to
(i) a ruling issued by the customs administration of
another Party with respect to the tariff
classification or value of a good, or of
materials used in the production of a good, or
the reasonable allocation of costs where
calculating the net cost of a good, that is the
subject of a determination of origin, or
(ii) consistent treatment given by the customs
administration of another Party with respect to
the tariff classification or value of a good, or
of materials used in the production of a good,
or the reasonable allocation of costs where
calculating the net cost of a good, that is the
subject of a determination of origin;
(c) a measure establishing or significantly modifying an
administrative policy that is likely to affect future
determinations of origin, country of origin marking
requirements or determinations as to whether a good
qualifies as a good of a Party under the Marking
Rules; and
(d) an advance ruling, or a ruling modifying or revoking
an advance ruling, pursuant to Article 509.
2. The Parties shall cooperate:
(a) in the enforcement of their respective customs-
related laws or regulations implementing this
Agreement, and under any customs mutual assistance
agreements or other customs-related agreement to
which they are party;
(b) for purposes of the detection and prevention of
unlawful transshipments of textile and apparel goods
of a non-Party, in the enforcement of prohibitions or
quantitative restrictions, including the verification
by a Party, in accordance with the procedures set out
in this Chapter, of the capacity for production of
goods by an exporter or a producer in the territory
of another Party, provided that the customs
administration of the Party proposing to conduct the
verification, prior to conducting the verification
(i) obtains the consent of the Party in whose
territory the verification is to occur, and
(ii) provides notification to the exporter or
producer whose premises are to be visited,
except that procedures for notifying the exporter or
producer whose premises are to be visited shall be in
accordance with such other procedures as the Parties
may agree;
(c) to the extent practicable and for purposes of
facilitating the flow of trade between them, in such
customs-related matters as the collection and
exchange of statistics regarding the importation and
exportation of goods, the harmonization of
documentation used in trade, the standardization of
data elements, the acceptance of an international
data syntax and the exchange of information; and
(d) to the extent practicable, in the storage and
transmission of customs-related documentation.
Article 513: Working Group and Customs Subgroup
1. The Parties hereby establish a Working Group on Rules of
Origin, comprising representatives of each Party, to ensure:
(a) the effective implementation and administration of
Articles 303 (Restriction on Drawback and Duty
Deferral Programs), 308 (Most-Favored-Nation Rates of
Duty on Certain Goods) and 311, Chapter Four, this
Chapter, the Marking Rules and the Uniform
Regulations; and
(b) the effective administration of the customs-related
aspects of Chapter Three.
2. The Working Group shall meet at least four times each year
and on the request of any Party.
3. The Working Group shall:
(a) monitor the implementation and administration by the
customs administrations of the Parties of Articles
303, 308 and 311, Chapter Four, this Chapter, the
Marking Rules and the Uniform Regulations to ensure
their uniform interpretation;
(b) endeavor to agree, on the request of any Party, on
any proposed modification of or addition to Article
303, 308 or 311, Chapter Four, this Chapter, the
Marking Rules or the Uniform Regulations;
(c) notify the Commission of any agreed modification of
or addition to the Uniform Regulations;
(d) propose to the Commission any modification of or
addition to Article 303, 308 or 311, Chapter Four,
this Chapter, the Marking Rules, the Uniform
Regulations or any other provision of this Agreement
as may be required to conform with any change to the
Harmonized System; and
(e) consider any other matter referred to it by a Party
or by the Customs Subgroup established under
paragraph 6.
4. Each Party shall, to the greatest extent practicable, take
all necessary measures to implement any modification of or
addition to this Agreement within 180 days of the date on which
the Commission agrees on the modification or addition.
5. If the Working Group fails to resolve a matter referred to
it pursuant to paragraph 3(e) within 30 days of such referral,
any Party may request a meeting of the Commission under Article
2007 (Commission - Good Offices, Conciliation and Mediation).
6. The Working Group shall establish, and monitor the work
of, a Customs Subgroup, comprising representatives of each
Party. The Subgroup shall meet at least four times each year
and on the request of any Party and shall:
(a) endeavor to agree on
(i) the uniform interpretation, application and
administration of Articles 303, 308 and 311,
Chapter Four, this Chapter, the Marking Rules
and the Uniform Regulations,
(ii) tariff classification and valuation matters
relating to determinations of origin,
(iii) equivalent procedures and criteria for the
request, approval, modification, revocation
and implementation of advance rulings,
(iv) revisions to the Certificate of Origin,
(v) any other matter referred to it by a Party, the
Working Group or the Committee on Trade in Goods
established under Article 316, and
(vi) any other customs-related matter arising under
this Agreement;
(b) consider
(i) the harmonization of customs-related automation
requirements and documentation, and
(ii) proposed customs-related administrative and
operational changes that may affect the flow of
trade between the Parties' territories;
(c) report periodically to the Working Group and notify
it of any agreement reached under this paragraph; and
(d) refer to the Working Group any matter on which it has
been unable to reach agreement within 60 days of
referral of the matter to it pursuant to subparagraph
(a)(v).
7. Nothing in this Chapter shall be construed to prevent a
Party from issuing a determination of origin or an advance
ruling relating to a matter under consideration by the Working
Group or the Customs Subgroup or from taking such other action
as it considers necessary, pending a resolution of the matter
under this Agreement.
Article 514: Definitions
For purposes of this Chapter:
commercial importation means the importation of a good into the
territory of any Party for the purpose of sale, or any
commercial, industrial or other like use;
customs administration means the competent authority that is
responsible under the law of a Party for the administration of
customs laws and regulations;
determination of origin means a determination as to whether a
good qualifies as an originating good in accordance with
Chapter Four;
exporter in the territory of a Party means an exporter located
in the territory of a Party and an exporter required under this
Chapter to maintain records in the territory of that Party
regarding exportations of a good;
identical goods means goods that are the same in all respects,
including physical characteristics, quality and reputation,
irrespective of minor differences in appearance that are not
relevant to a determination of origin of those goods under
Chapter Four;
importer in the territory of a Party means an importer located
in the territory of a Party and an importer required under this
Chapter to maintain records in the territory of that Party
regarding importations of a good;
intermediate material means "intermediate material" as defined
in Article 415;
Marking Rules means "Marking Rules" established under Annex
311;
material means "material" as defined in Article 415;
net cost of a good means "net cost of a good" as defined in
Article 415;
preferential tariff treatment means the duty rate applicable to
an originating good;
producer means "producer" as defined in Article 415;
production means "production" as defined in Article 415;
transaction value means "transaction value" as defined in
Article 415;
Uniform Regulations means "Uniform Regulations" established
under Article 511;
used means "used" as defined in Article 415; and
value means value of a good or material for purposes of
calculating customs duties or for purposes of applying Chapter
Four.
Title:Energy and Basic Petrochemicals -- Chapter Six
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:25625
Chapter Six
Energy and Basic Petrochemicals
Article 601: Principles
1. The Parties confirm their full respect for their
Constitutions.
2. The Parties recognize that it is desirable to strengthen
the important role that trade in energy and basic petrochemical
goods plays in the free trade area and to enhance this role
through sustained and gradual liberalization.
3. The Parties recognize the importance of having viable and
internationally competitive energy and petrochemical sectors to
further their individual national interests.
Article 602: Scope and Coverage
1. This Chapter applies to measures relating to energy and
basic petrochemical goods originating in the territories of the
Parties and to measures relating to investment and to the
cross-border trade in services associated with such goods, as
set forth in this Chapter.
2. For purposes of this Chapter, energy and basic
petrochemical goods refer to those goods classified under the
Harmonized System as:
(a) subheading 2612.10;
(b) headings 27.01 through 27.06;
(c) subheading 2707.50;
(d) subheading 2707.99 (only with respect to solvent
naphtha, rubber extender oils and carbon black
feedstocks);
(e) headings 27.08 and 27.09;
(f) heading 27.10 (except for normal paraffin mixtures in
the range of C9 to C15);
(g) heading 27.11 (except for ethylene, propylene,
butylene and butadiene in purities over 50 percent);
(h) headings 27.12 through 27.16;
(i) subheadings 2844.10 through 2844.50 (only with
respect to uranium compounds classified under those
subheadings);
(j) subheading 2845.10; and
(k) subheading 2901.10 (only with respect to ethane,
butanes, pentanes, hexanes, and heptanes).
3. Except as specified in Annex 602.3, energy and
petrochemical goods and activities shall be governed by the
provisions of this Agreement.
Article 603: Import and Export Restrictions
1. Subject to the further rights and obligations of this
Agreement, the Parties incorporate the provisions of the
General Agreement on Tariffs and Trade (GATT), with respect to
prohibitions or restrictions on trade in energy and basic
petrochemical goods. The Parties agree that this language does
not incorporate their respective protocols of provisional
application to the GATT.
2. The Parties understand that the provisions of the GATT
incorporated in paragraph 1 prohibit, in any circumstances in
which any other form of quantitative restriction is prohibited,
minimum or maximum export-price requirements and, except as
permitted in enforcement of countervailing and antidumping
orders and undertakings, minimum or maximum import-price
requirements.
3. In circumstances where a Party adopts or maintains a
restriction on importation from or exportation to a non-Party
of an energy or basic petrochemical good, nothing in this
Agreement shall be construed to prevent the Party from:
(a) limiting or prohibiting the importation from the
territory of any Party of such energy or basic
petrochemical good of the non-Party; or
(b) requiring as a condition of export of such energy or
basic petrochemical good of the Party to the
territory of any other Party that the good be
consumed within the territory of the other Party.
4. In the event that a Party adopts or maintains a
restriction on imports of an energy or basic petrochemical good
from non-Party countries, the Parties, on request of any Party,
shall consult with a view to avoiding undue interference with
or distortion of pricing, marketing and distribution
arrangements in another Party.
5. Each Party may administer a system of import and export
licensing for energy or basic petrochemical goods provided
that such system is operated in a manner consistent with the
provisions of this Agreement, including paragraph 1 and Article
1502 (Monopolies and State Enterprises).
6. This Article is subject to the reservations set out in
Annex 603.6.
Article 604: Export Taxes
No Party may adopt or maintain any duty, tax or other
charge on the export of any energy or basic petrochemical good
to the territory of another Party, unless such duty, tax or
charge is adopted or maintained on:
(a) exports of any such good to the territory of all
other Parties; and
(b) any such good when destined for domestic consumption.
Article 605: Other Export Measures
Subject to Annex 605, a Party may adopt or maintain a
restriction otherwise justified under Articles XI:2(a) or
XX(g), (i) or (j) of the GATT with respect to the export of an
energy or basic petrochemical good to the territory of another
Party, only if:
(a) the restriction does not reduce the proportion of the
total export shipments of the specific energy or
basic petrochemical good made available to that other
Party relative to the total supply of that good of
the Party maintaining the restriction as compared to
the proportion prevailing in the most recent 36-month
period for which data are available prior to the
imposition of the measure, or in such other
representative period on which the Parties may agree;
(b) the Party does not impose a higher price for exports
of an energy or basic petrochemical good to that
other Party than the price charged for such good when
consumed domestically, by means of any measure such
as licenses, fees, taxation and minimum price
requirements. The foregoing provision does not apply
to a higher price that may result from a measure
taken pursuant to subparagraph (a) that only
restricts the volume of exports; and
(c) the restriction does not require the disruption of
normal channels of supply to that other Party or
normal proportions among specific energy or basic
petrochemical goods supplied to that other Party,
such as, for example, between crude oil and refined
products and among different categories of crude oil
and of refined products.
Article 606: Energy Regulatory Measures
1. The Parties recognize that energy regulatory measures are
subject to the disciplines of:
(a) national treatment, as provided in Article 301;
(b) import and export restrictions, as provided in
Article 603; and
(c) export taxes, as provided in Article 604.
2. Each Party shall seek to ensure that in the application of
any energy regulatory measure, energy regulatory bodies within
its territory avoid disruption of contractual relationships to
the maximum extent practicable, and provide for orderly and
equitable implementation appropriate to such measures.
Article 607: National Security Measures
Subject to Annex 607, no Party may adopt or maintain a
measure restricting imports of an energy or basic petrochemical
good from, or exports of an energy or basic petrochemical good
to, another Party under Article XXI of the GATT or under
Article 2102 (National Security), except to the extent
necessary to:
(a) supply a military establishment of a Party or enable
fulfillment of a critical defense contract of a
Party;
(b) respond to a situation of armed conflict involving
the Party taking the measure;
(c) implement national policies or international
agreements relating to the non-proliferation of
nuclear weapons or other nuclear explosive devices;
or
(d) respond to direct threats of disruption in the supply
of nuclear materials for defense purposes.
Article 608: Miscellaneous Provisions
1. The Parties agree to allow existing or future incentives
for oil and gas exploration, development and related activities
in order to maintain the reserve base for these energy
resources.
2. Annex 608.2 applies only to the Parties specified in that
Annex with respect to other agreements relating to trade in
energy goods.
Article 609: Definitions
For purposes of this Chapter:
consumed means transformed so as to qualify under the rules of
origin set out in Chapter Four (Rules of Origin), or actually
consumed;
cross-border trade in services means "cross-border trade in
services" as defined in Article 1213 (Cross-Border Trade in
Services - Definitions);
energy regulatory measure means any measure by federal or sub-
federal entities that directly affects the transportation,
transmission or distribution, purchase or sale, of an energy or
basic petrochemical good;
enterprise means "enterprise" as defined in Article 1139
(Investment - Definitions);
enterprise of a Party means "enterprise of a Party" as defined
in Article 1139;
facility for independent power production means a facility that
is used for the generation of electric energy exclusively for
sale to an electric utility for further resale;
first hand sale refers to the first commercial transaction
affecting the good in question;
investment means investment as defined in Article 1139;
restriction means any limitation, whether made effective
through quotas, licenses, permits, minimum or maximum price
requirements or any other means;
total export shipments means the total shipments from total
supply to users located in the territory of the other Party;
and
total supply means shipments to domestic users and foreign
users from:
(a) domestic production;
(b) domestic inventory; and
(c) other imports, as appropriate.
Annex 602.3
Reservations and Special Provisions
Reservations
1. The Mexican State reserves to itself the following
strategic activities, including investment in such activities
and the provision of services in such activities:
(a) exploration and exploitation of crude oil and natural
gas; refining or processing of crude oil and natural
gas; and production of artificial gas, basic
petrochemicals and their feedstocks and pipelines;
(b) foreign trade; transportation, storage and
distribution, up to and including the first hand
sales of the following goods:
(i) crude oil,
(ii) natural and artificial gas,
(iii) goods covered by this Chapter obtained from
the refining or processing of crude oil and
natural gas, and
(iv) basic petrochemicals;
(c) the supply of electricity as a public service in
Mexico, including, except as provided in paragraph 5,
the generation, transmission, transformation,
distribution and sale of electricity; and
(d) exploration, exploitation and processing of
radioactive minerals, the nuclear fuel cycle, the
generation of nuclear energy, the transportation and
storage of nuclear waste, the use and reprocessing of
nuclear fuel and the regulation of their applications
for other purposes and the production of heavy water.
In the event of an inconsistency between this paragraph and
another provision of this Agreement, this paragraph shall
prevail to the extent of that inconsistency.
2. Pursuant to Article 1101(2), private investment is not
permitted in the activities listed in paragraph 1. Chapter
Annex 602.3
Twelve (Cross-Border Trade in Services) shall only apply to
activities involving the provision of services covered in
paragraph 1 when Mexico permits a contract to be granted in
respect of such activities and only to the extent of that
contract.
Trade in Natural Gas and Basic Petrochemicals
3. Where end-users and suppliers of natural gas or basic
petrochemical goods consider that cross-border trade in such
goods may be in their interests, each Party shall permit such
end-users and suppliers, and any state enterprise of that Party
as may be required under its domestic law, to negotiate supply
contracts.
Each Party shall leave the modalities of the
implementation of any such contract to the end-users,
suppliers, and any state enterprise of the Party as may be
required under its domestic law, which may take the form of
individual contracts between the state enterprise and each of
the other entities. Such contracts may be subject to
regulatory approval.
Performance Clauses
4. Each Party shall allow its state enterprises to negotiate
performance clauses in their service contracts.
Activities and Investment in Electricity Generation Facilities
5. (a) Production for Own Use
An enterprise of another Party may acquire,
establish, and/or operate an electrical generating
facility in Mexico to meet the enterprise's own
supply needs. Electricity generated in excess of
such needs must be sold to the Federal Electricity
Commission (Comisi n Federal de Electricidad) (CFE)
and CFE shall purchase such electricity under terms
and conditions agreed to by CFE and the enterprise.
(b) Co-generation
An enterprise of another Party may acquire,
establish, and/or operate a co-generation facility in
Mexico that generates electricity using heat, steam
or other energy sources associated with an industrial
process. Owners of the industrial facility need not
Annex 602.3
be the owners of the co-generating facility.
Electricity generated in excess of the industrial
facility's supply requirements must be sold to CFE
and CFE shall purchase such electricity under terms
and conditions agreed to by CFE and the enterprise.
(c) Independent Power Production
An enterprise of another Party may acquire,
establish, and/or operate an electricity generating
facility for independent power production (IPP) in
Mexico. Electricity generated by such a facility for
sale in Mexico shall be sold to CFE and CFE shall
purchase such electricity under terms and conditions
agreed to by CFE and the enterprise. Where an IPP
located in Mexico and an electric utility of another
Party consider that cross-border trade in electricity
may be in their interests, each relevant Party shall
permit these entities and CFE to negotiate terms and
conditions of power purchase and power sale
contracts. The modalities of implementing such
supply contracts are left to the end users, suppliers
and CFE and may take the form of individual contracts
between CFE and each of the other entities. Each
relevant Party shall determine whether such contracts
are subject to regulatory approval.
Annex 603.6
Exception to Article 603
For only those goods listed below, Mexico may restrict the
granting of import and export licenses for the sole purpose of
reserving foreign trade in these goods to itself.
2707.50 Other aromatic hydrocarbon mixtures of which 65
percent or more by volume (including losses) distills
at 250 C by the ASTM D 86 method.
2707.99 Rubber extender oils, solvent naphtha and carbon
black feedstocks only.
2709 Petroleum oils and oils obtained from bituminous
minerals, crude.
2710 Aviation gasoline; gasoline and motor fuel blending
stocks (except aviation gasoline) and reformates when
used as motor fuel blending stocks; kerosene; gas oil
and diesel oil; petroleum ether; fuel oil; paraffinic
oils other than for lubricating purposes; pentanes;
carbon black feedstocks; hexanes; heptanes and
naphthas.
2711 Petroleum gases and other gaseous hydrocarbons other
than: ethylene, propylene, butylene and butadiene, in
purities over 50 percent.
2712.90 Only paraffin wax containing by weight more than 0.75
percent of oil, in bulk (Mexico classifies these
goods under HS 2712.90.02) and only when imported to
be used for further refining.
2713.11 Petroleum coke not calcined.
2713.20 Petroleum bitumen (except when used for road
surfacing purposes under HS 2713.20.01).
2713.90 Other residues of petroleum oils or of oils obtained
from bituminous minerals.
Annex 603.6
2714 Bitumen and asphalt, natural; bituminous or oil shale
and tar sands, asphaltites and asphaltic rocks
(except when used for road surfacing purposes under
HS 2714.90.01).
2901.10 Ethane, butanes, pentanes, hexanes, and heptanes
only.
Annex 605
Exception to Article 605
Notwithstanding any other provision of this Chapter, the
provisions of Article 605 shall not apply as between the other
Parties and Mexico.
Annex 607
National Security
1. Article 607 shall impose no obligations and confer no
rights on Mexico.
2. Article 2102 (National Security) shall apply as between
Mexico and the other Parties.
Annex 608.2
Other Agreements
1. Canada and the United States shall act in accordance with
the terms of Annexes 902.5 and 905.2 of the Canada - United
States Free Trade Agreement, which are hereby incorporated into
and made a part of this Agreement for such purpose. This
paragraph shall impose no obligations and confer no rights on
Mexico.
2. Canada and the United States intend no inconsistency
between this Chapter and the Agreement on an International
Energy Program (IEP). In the event of any inconsistency
between the IEP and this Chapter, the IEP shall prevail as
between Canada and the United States to the extent of that
inconsistency.
Title:Agriculture and Sanitary and Phytosanitary Measures -- Chap. 7
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:129142
Chapter Seven
Agriculture and Sanitary and Phytosanitary Measures
Section A - Agriculture
Article 701: Scope and Coverage
1. This Section applies to measures adopted or maintained by
a Party relating to agricultural trade.
2. In the event of any inconsistency between this Section and
another provision of this Agreement, this Section shall prevail
to the extent of the inconsistency.
Article 702: International Obligations
1. Annex 702.1 applies to the Parties specified in that Annex
with respect to agricultural trade under certain agreements
between them.
2. Prior to adopting pursuant to an intergovernmental
commodity agreement, a measure that may affect trade in an
agricultural good between the Parties, the Party proposing to
adopt the measure shall consult with the other Parties with a
view to avoiding nullification or impairment of a concession
granted by that Party in its Schedule to Annex 302.2 (Tariff
Elimination).
3. Annex 702.3 applies to the Parties specified in that Annex
with respect to measures adopted or maintained pursuant to an
intergovernmental coffee agreement.
Article 703: Market Access
1. The Parties shall work together to improve access to their
respective markets through the reduction or elimination of
import barriers to trade between them in agricultural goods.
Customs Duties, Quantitative Restrictions, and Agricultural
Grading and Marketing Standards
2. Annex 703.2 applies to the Parties specified in that Annex
with respect to customs duties and quantitative restrictions,
trade in sugar and syrup goods, and agricultural grading and
marketing standards.
Special Safeguard Provisions
3. Each Party may, in accordance with its Schedule to Annex
302.2, adopt or maintain a special safeguard in the form of a
tariff rate quota on an agricultural good listed in its Section
of Annex 703.3. Notwithstanding Article 302.2, a Party may not
apply an over-quota tariff rate under a special safeguard that
exceeds the lesser of:
(a) the most-favored-nation (MFN) rate as of July 1,
1991; and
(b) the prevailing MFN rate.
4. No Party may, with respect to the same good and the same
country, at the same time:
(a) apply an over-quota tariff rate under paragraph 3;
and
(b) take an emergency action covered by Chapter Eight
(Emergency Action).
Article 704: Domestic Support
The Parties recognize that domestic support measures can
be of crucial importance to their agricultural sectors but may
also have trade distorting and production effects and that
domestic support reduction commitments may result from
agricultural multilateral trade negotiations under the General
Agreement on Tariffs and Trade (GATT). Accordingly, where a
Party supports its agricultural producers, that Party should
endeavor to work toward domestic support measures that:
(a) have minimal or no trade distorting or production
effects; or
(b) are exempt from any applicable domestic support
reduction commitments that may be negotiated under
the GATT.
The Parties further recognize that a Party may change its
domestic support measures, including those that may be subject
to reduction commitments, at the Party's discretion, subject to
its rights and obligations under the GATT.
Article 705: Export Subsidies
1. The Parties share the objective of the multilateral
elimination of export subsidies for agricultural goods and
shall cooperate in an effort to achieve an agreement under the
GATT to eliminate those subsidies.
2. The Parties recognize that export subsidies for
agricultural goods may prejudice the interests of importing and
exporting Parties and, in particular, may disrupt the markets
of importing Parties. Accordingly, in addition to the rights
and obligations of the Parties specified in Annex 702.1, the
Parties affirm that it is inappropriate for a Party to provide
an export subsidy for an agricultural good exported to the
territory of another Party where there are no other subsidized
imports of that good into the territory of that other Party.
3. Except as provided in Annex 702.1, where an exporting
Party considers that a non-Party is exporting an agricultural
good to the territory of another Party with the benefit of
export subsidies, the importing Party shall, on written request
of the exporting Party, consult with the exporting Party with a
view to agreeing on specific measures that the importing Party
may adopt to counter the effect of any such subsidized imports.
If the importing Party adopts the agreed-upon measures, the
exporting Party shall refrain from applying, or immediately
cease to apply, any export subsidy to exports of such good to
the territory of the importing Party.
4. Except as provided in Annex 702.1, an exporting Party
shall deliver written notice to the importing Party at least
three days, excluding weekends, prior to adopting an export
subsidy measure on an agricultural good exported to the
territory of another Party. The exporting Party shall consult
with the importing Party within 72 hours of receipt of the
importing Party's written request, with a view to eliminating
the subsidy or minimizing any adverse impact on the market of
the importing Party for that good. The importing Party shall,
when requesting consultations with the exporting Party, at the
same time, deliver written notice to a third Party of the
request. A third Party may request to participate in such
consultations.
5. Each Party shall take into account the interests of the
other Parties in the use of any export subsidy on an
agricultural good, recognizing that such subsidies may have
prejudicial effects on the interests of the other Parties.
6. The Parties hereby establish a Working Group on
Agricultural Subsidies, comprising representatives of each
Party, which shall meet at least semi-annually or as the
Parties may otherwise agree, to work toward elimination of all
export subsidies affecting agricultural trade between the
Parties. The functions of the Working Group shall include:
(a) monitoring the volume and price of imports into the
territory of any Party of agricultural goods that
have benefitted from export subsidies;
(b) providing a forum for the Parties to develop mutually
acceptable criteria and procedures for reaching
agreement on the limitation or elimination of export
subsidies for imports of agricultural goods into the
territories of the Parties; and
(c) reporting annually to the Committee on Agricultural
Trade, established under Article 706, on the
implementation of this Article.
7. Notwithstanding any other provision of this Article:
(a) if the importing and exporting Parties agree to an
export subsidy for an agricultural good exported to
the territory of the importing Party, the exporting
Party or Parties may adopt or maintain such subsidy;
and
(b) each Party retains its rights to apply countervailing
duties to subsidized imports of agricultural goods
from the territory of a Party or non-Party.
Article 706: Committee on Agricultural Trade
1. The Parties hereby establish a Committee on Agricultural
Trade, comprising representatives of each Party.
2. The Committee's functions shall include:
(a) monitoring and promoting cooperation on the
implementation and administration of this Section;
(b) providing a forum for the Parties to consult on
issues related to this Section at least semi-annually
and as the Parties may otherwise agree; and
(c) reporting annually to the Commission on the
implementation of this Section.
Article 707: Advisory Committee on Private Commercial
Disputes regarding Agricultural Goods
The Committee shall establish an Advisory Committee on
Private Commercial Disputes regarding Agricultural Goods,
comprising persons with expertise or experience in the
resolution of private commercial disputes in agricultural
trade. The Advisory Committee shall report and provide
recommendations to the Committee for the development of systems
in the territory of each Party to achieve the prompt and
effective resolution of such disputes, taking into account any
special circumstance, including the perishability of certain
agricultural goods.
Article 708: Definitions
For purposes of this Section:
agricultural good means a good provided for in any of the
following:
(a) Harmonized System (HS) Chapters 1 through 24 (other
than a fish or fish product); or
(b) HS subheading 2905.43 (manitol)
HS subheading 2905.44 (sorbitol)
HS heading 33.01 (essential
oils)
HS headings 35.01 to 35.05 (albuminoidal
substances,
modified
starches,
glues)
HS subheading 3809.10 (finishing agents)
HS subheading 3823.60 (sorbitol n.e.p.)
HS headings 41.01 to 41.03 (hides and
skins)
HS heading 43.01 (raw
furskins)
HS headings 50.01 to 50.03 (raw silk and
silk waste)
HS headings 51.01 to 51.03 (wool and
animal hair)
HS headings 52.01 to 52.03 (raw cotton,
cotton waste
and cotton
carded or
combed)
HS heading 53.01 (raw flax)
HS heading 53.02 (raw hemp)
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision.)
customs duty means "customs duty" as defined in Article 318
(National Treatment and Market Access for Goods - Definitions);
duty-free means "duty-free" as defined in Article 318;
fish or fish product means a fish or crustacean, mollusc or
other aquatic invertebrate, marine mammal, or a product thereof
provided for in any of the following:
HS Chapter 03 (fish and
crustaceans,
molluscs and other
aquatic
invertebrates)
HS heading 05.07 (tortoise-
shell,
whalebone and
whalebone
hair and
those fish or
crustaceans,
molluscs or
other aquatic
invertebrates
, marine
mammals, and
their
products
within this
heading)
HS heading 05.08 (coral and
similar
materials)
HS heading 05.09 (natural
sponges of
animal
origin)
HS heading 05.11 (products of
fish or
crustaceans,
molluscs or
other aquatic
invertebrates
; dead
animals of
Chapter 3)
HS heading 15.04 (fats and
oils and
their
fractions, of
fish or
marine
mammals)
HS heading 16.03 ("non-meat"
extracts and
juices)
HS heading 16.04 (prepared or
preserved
fish)
HS heading 16.05 (prepared
preserved
crustaceans,
molluscs and
other aquatic
invertebrates
);
HS subheading 2301.20 (flours, meals,
pellets of fish)
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision.)
material means "material" as defined in Article 415 (Rules of
Origin - Definitions);
over-quota tariff rate means the rate of customs duty to be
applied to quantities in excess of the quantity specified under
a tariff rate quota;
sugar or syrup good means "sugar or syrup good" as defined in
Annex 703.2;
tariff item means a "tariff item" as defined in Annex 401; and
tariff rate quota means a mechanism that provides for the
application of a customs duty at a certain rate to imports of a
particular good up to a specified quantity (in-quota quantity),
and at a different rate to imports of that good that exceed
that quantity.
Annex 702.1
Incorporation of Trade Provisions
1. Articles 701, 702, 704, 705, 706, 707, 710 and 711 of the
Canada - United States Free Trade Agreement apply, as between
Canada and the United States, which Articles are hereby
incorporated into and made a part of this Agreement.
2. The definitions of the terms specified in Article 711 of
the Canada - United States Free Trade Agreement shall apply to
the Articles incorporated by paragraph 1.
3. For purposes of this incorporation, any reference to
Chapter Eighteen of the Canada -United States Free Trade
Agreement shall be deemed to be a reference to Chapter Twenty
(Institutional Arrangements and Dispute Settlement Procedures)
of this Agreement.
4. The Parties understand that Article 710 of the Canada -
United States Free Trade Agreement incorporates the GATT rights
and obligations of Canada and the United States with respect to
agricultural, food, beverage and certain related goods,
including exemptions by virtue of paragraph (1)(b) of the
Protocol of Provisional Application of the GATT and waivers
granted under Article XXV of the GATT.
Annex 702.3
Intergovernmental Coffee Agreement
Notwithstanding Article 2101 (General Exceptions), neither
Canada nor Mexico may adopt or maintain a measure, pursuant to
an intergovernmental coffee agreement, that restricts trade in
coffee between them.
Annex 703.2
Market Access
Section A - Mexico and the United States
1. This Section applies only as between Mexico and the United
States.
Customs Duties and Quantitative Restrictions
2. With respect to agricultural goods, Article 309(1) and (2)
(Import and Export Restrictions) applies only to qualifying
goods.
3. Each Party waives its rights under Article XI:2(c) of the
GATT, and those rights as incorporated by Article 309,
regarding any measure adopted or maintained with respect to the
importation of qualifying goods.
4. Except with respect to a good set out in Section B or C of
Annex 703.3 or Appendix 703.2.A.4, where a Party applies an
over-quota tariff rate to a qualifying good pursuant to a
tariff rate quota set out in its Schedule to Annex 302.2, or
increases a customs duty for a sugar or syrup good to a rate,
in accordance with paragraph 18, that exceeds the rate of
customs duty for that good set out in its GATT Schedule of
Tariff Concessions as of July 1, 1991, the other Party waives
its rights under the GATT with respect to the application of
that rate of customs duty.
5. Notwithstanding Article 302(2) (Tariff Elimination), where
an agreement resulting from agricultural multilateral trade
negotiations under the GATT enters into force with respect to a
Party pursuant to which it has agreed to convert a prohibition
or restriction on its importation of an agricultural good into
a tariff rate quota or a customs duty, that Party may not apply
to such good that is a qualifying good an over-quota tariff
rate that is higher than the lower of the over-quota tariff
rate set out in:
(a) its Schedule to Annex 302.2, and
(b) that agreement,
and paragraph 4 shall no longer apply to the other Party with
respect to that good.
Annex 703.2
6. Each Party may count the in-quota quantity under a tariff
rate quota applied to a qualifying good in accordance with its
Schedule to Annex 302.2 toward the satisfaction of commitments
regarding an in-quota quantity of a tariff rate quota or level
of access under a restriction on the importation of that good:
(a) that have been agreed under the GATT, including as
set out in its GATT Schedule of Tariff Concessions;
or
(b) undertaken by the Party as a result of any agreement
resulting from agricultural multilateral trade
negotiations under the GATT.
7. Neither Party may count toward the satisfaction of a
commitment regarding an in-quota quantity of a tariff rate
quota in its Schedule to Annex 302.2 an agricultural good
admitted or entered into a maquiladora or foreign-trade zone
and re-exported, including subsequent to processing.
8. The United States shall not adopt or maintain, with
respect to the importation of an agricultural qualifying good,
any fee applied pursuant to section 22 of the U.S. Agricultural
Adjustment Act.
9. Neither Party may seek a voluntary restraint agreement
from the other Party with respect to the exportation of meat
that is a qualifying good.
10. Notwithstanding Chapter Four (Rules of Origin), for
purposes of applying a rate of customs duty to a good, the
United States may consider as if it were non-originating a good
provided for in:
(a) heading 12.02 that is exported from the territory of
Mexico, if the good is not wholly obtained in the
territory of Mexico;
(b) subheading 2008.11 that is exported from the
territory of Mexico, if any material provided for in
heading 12.02 used in the production of that good is
not wholly obtained in the territory of Mexico; or
(c) U.S. tariff item 1806.10.42 or 2106.90.12 that is
exported from the territory of Mexico, if any
material provided for in HS heading 1701.99 used in
the production of that good is not a qualifying good.
Annex 703.2
11. Notwithstanding Chapter Four, for purposes of applying a
rate of customs duty to a good, Mexico may consider as if it
were non-originating a good provided for in:
(a) heading 12.02 that is exported from the territory of
the United States, if that good is not wholly
obtained in the territory of the United States;
(b) subheading 2008.11 that is exported from the
territory of the United States, if any material
provided for in heading 12.02 used in the production
of that good is not wholly obtained in the territory
of the United States; or
(c) Mexican tariff item 1806.10.01 (except those with a
sugar content less than 90 percent) or 2106.90.05
(except those that contain added flavoring matter)
that is exported from the territory of the United
States, if any material provided for in HS subheading
1701.99 used in the production of that good is not a
qualifying good.
Restriction on Same-Condition Substitution Duty Drawback
12. Beginning on the date of entry into force of this
Agreement, neither Mexico nor the United States may refund the
amount of customs duties paid, or waive or reduce the amount of
customs duties owed, on any agricultural good imported into its
territory that is substituted for an identical or similar good
that is subsequently exported to the territory of the other
Party.
Trade in Sugar and Syrup Goods
13. The Parties shall consult by July 1 of each of the first
14 years beginning with 1994 to determine jointly, in
accordance with Appendix 703.2.A.13, whether, and if so, by
what quantity either Party:
(a) is projected to be a net surplus producer of sugar in
the next marketing year; and
(b) has been a net surplus producer in any marketing year
beginning after the date of entry into force of this
Agreement, including the current marketing year.
14. For each of the first 14 marketing years beginning after
the date of entry into force of this Agreement, each Party
Annex 703.2
shall accord duty-free treatment to a quantity of sugar and
syrup goods that are qualifying goods not less than the
greatest of:
(a) 7,258 metric tons raw value;
(b) the quota allocated by the United States for a non-
Party within the category designated "other specified
countries and areas" under paragraph (b)(i) of
additional U.S. note 3 to chapter 17 of the
Harmonized Tariff Schedule of the United States; and
(c) subject to paragraph 15, the other Party's projected
net production surplus for that marketing year, as
determined under paragraph 13 and adjusted in
accordance with Appendix 703.2.A.13.
15. Subject to paragraph 16, the duty-free quantity of sugar
and syrup goods under paragraph 14(c) shall not exceed the
following ceilings:
(a) for each of the first six marketing years, 25,000
metric tons raw value;
(b) for the seventh marketing year, 150,000 metric tons
raw value; and
(c) for each of the eighth through 14th marketing years,
110 percent of the previous marketing year's ceiling.
16. Beginning with the seventh marketing year, paragraph 15
shall not apply where, pursuant to paragraph 13, the Parties
have determined the exporting Party to be a net surplus
producer:
(a) for any two consecutive marketing years beginning
after the date of entry into force of this Agreement;
(b) for the previous and current marketing years; or
(c) in the current marketing year and projected it to be
a net surplus producer in the next marketing year,
unless subsequently the Parties determine that,
contrary to the projection, the exporting Party was
not a net surplus producer for that year.
17. Mexico shall, beginning no later than six years after the
date of entry into force of this Agreement, apply on a most-
Annex 703.2
favored-nation (MFN) basis a tariff rate quota for sugar and
syrup goods consisting of rates of customs duties no less than
the lesser of the corresponding:
(a) MFN rates of the United States in effect on the date
that Mexico commences to apply the tariff rate quota;
and
(b) prevailing MFN rates of the United States.
18. When Mexico applies a tariff rate quota under paragraph
17, it shall not apply on a sugar or syrup good that is a
qualifying good a rate of customs duty higher than the rate of
customs duty applied by the United States on such good.
19. Each Party shall determine the quantity of a sugar or
syrup good that is a qualifying good based on the actual weight
of such good, converted as appropriate to raw value, without
regard to the good's packaging or presentation.
20. If the United States eliminates its tariff rate quota for
sugar and syrup goods imported from non-Parties, at such time
the United States shall accord to such goods that are
qualifying goods the better of the treatment, as determined by
Mexico, of:
(a) the treatment provided for in paragraphs 14 through
16; or
(b) the MFN treatment granted by the United States to
non-Parties.
21. Except as provided in paragraph 22, Mexico shall not be
required to apply the applicable rate of customs duty provided
in this Annex or in its Schedule to Annex 302.2 to a sugar or
syrup good, or sugar-containing product, that is a qualifying
good where the United States has granted or will grant benefits
under any re-export program or any like program in connection
with the export of the good. The United States shall notify
Mexico in writing within two days, excluding weekends, of any
export to Mexico of such a good for which the benefits of any
re-export program or any other like program have been or will
be claimed by the exporter.
22. Notwithstanding any other provision of this Section:
(a) the United States shall accord duty-free treatment to
imports of
Annex 703.2
(i) raw sugar that is a qualifying good that will
be refined in the territory of the United
States and re-exported to the territory of
Mexico, and
(ii) refined sugar that is a qualifying good that
has been refined from raw sugar produced in,
and exported from, the territory of the United
States;
(b) Mexico shall accord duty-free treatment to imports of
(i) raw sugar that is a qualifying good that will
be refined in the territory of Mexico and re-
exported to the territory of the United
States, and
(ii) refined sugar that is a qualifying good that
has been refined from raw sugar produced in,
and exported from, the territory of Mexico;
and
(c) imports qualifying for duty-free treatment pursuant
to subparagraphs (a) and (b) shall not be subject to,
or counted under, any tariff rate quota.
Agricultural Grading and Marketing Standards
23. Where a Party adopts or maintains a measure respecting the
classification, grading or marketing of a domestic agricultural
good, it shall accord treatment to a like qualifying good
destined for processing no less favorable than it accords under
the measure to the domestic good destined for processing. The
importing Party may adopt or maintain measures to ensure that
such imported good is processed.
24. Paragraph 23 shall be without prejudice to the rights of
either Party under the GATT or under Chapter Three (National
Treatment and Market Access) regarding measures respecting the
classification, grading or marketing of an agricultural good,
whether or not destined for processing.
25. The Parties hereby establish a Working Group, comprising
representatives of Mexico and the United States, which shall
meet annually or as otherwise agreed. The Working Group shall
review, in coordination with the Committee on Standards-Related
Measures established under Article 913 (Committee on Standards-
Related Measures), the operation of agricultural grade and
Annex 703.2
quality standards as they affect trade between the Parties, and
shall resolve issues that may arise regarding the operation of
the standards. This Working Group shall report to the
Committee on Agricultural Trade established under Article 706.
Definitions
26. For purposes of this Section:
marketing year means a 12-month period beginning October 1;
net production surplus means the quantity by which a Party's
domestic production of sugar exceeds its total consumption of
sugar during a marketing year, determined in accordance with
this Section;
net surplus producer means a Party that has a net production
surplus;
plantation white sugar means crystalline sugar that has not
been refined and is intended for human consumption without
further processing or refining;
qualifying good means an originating good that is an
agricultural good, except that in determining whether such good
is an originating good, operations performed in or materials
obtained from Canada shall be considered as if they were
performed in or obtained from a non-Party;
raw value means the equivalent of a quantity of sugar in terms
of raw sugar testing 96 degrees by the polariscope, determined
as follows:
(a) the raw value of plantation white sugar equals the
number of kilograms thereof multiplied by 1.03;
(b) the raw value of liquid sugar and invert sugar equals
the number of kilograms of the total sugars thereof
multiplied by 1.07; and
(c) the raw value of other imported sugar and syrup goods
equals the number of kilograms thereof multiplied by
the greater of 0.93, or 1.07 less 0.0175 for each
degree of polarization under 100 degrees (and
fractions of a degree in proportion);
Annex 703.2
sugar means raw or refined sugar derived directly or indirectly
from sugar cane or sugar beets, including liquid refined sugar;
and
sugar-containing product means a good containing sugar; and
wholly obtained in the territory of means harvested in the
territory of.
Section B - Canada and Mexico
1. This Section applies only as between Canada and Mexico.
Customs Duties and Quantitative Restrictions
2. With respect to agricultural goods, Article 309(1) and (2)
(Import and Export Restrictions) applies only to qualifying
goods.
3. Except with respect to a good set out in Sections A or B
of Annex 703.3., where a Party applies an over-quota tariff
rate to a qualifying good pursuant to a tariff rate quota set
out in its Schedule to Annex 302.2 or increases a customs duty
for a sugar or syrup good to a rate that exceeds the rate of
customs duty for that good set out in its GATT Schedule of
Tariff Concessions as of July 1, 1991, the other Party waives
its rights under the GATT with respect to the application of
that rate of customs duty.
4. Notwithstanding Article 302(2) (Tariff Elimination), where
an agreement resulting from agricultural multilateral trade
negotiations under the GATT enters into force with respect to a
Party pursuant to which it has agreed to convert a prohibition
or restriction on its importation of an agricultural good into
a tariff rate quota or a customs duty, that Party may not apply
to such good that is a qualifying good an over-quota tariff
rate that is higher than the lower of the over-quota tariff
rate in:
(a) its Schedule to Annex 302.2, and
(b) that agreement,
and paragraph 3 shall no longer apply to the other Party with
respect to that good.
Annex 703.2
5. Each Party may count the in-quota quantity under a tariff
rate quota applied to a qualifying good in accordance with its
Schedule to Annex 302.2 toward the satisfaction of commitments
regarding an in-quota quantity of a tariff rate quota or level
of access under a restriction on the importation of that good:
(a) that have been agreed under the GATT, including as
set out in its GATT Schedule of Tariff Concessions;
or
(b) undertaken by the Party as a result of any agreement
resulting from agricultural multilateral trade
negotiations under the GATT.
6. Subject to this Section and for purposes of this Section,
Canada and Mexico incorporate their respective rights and
obligations with respect to agricultural goods under the GATT
and agreements negotiated under the GATT, including their
rights and obligations under Article XI of the GATT.
7. Notwithstanding paragraph 6 and Article 309:
(a) the rights and obligations of the Parties under
Article XI:2(c)(i) of the GATT and those rights as
incorporated by Article 309 shall apply with respect
to trade in agricultural goods only to the dairy,
poultry and egg goods set out in Appendix 703.2.B.7;
and
(b) with respect to such dairy, poultry and egg goods
that are qualifying goods, either Party may adopt or
maintain a prohibition or restriction or a customs
duty on the importation of such good consistent with
its rights and obligations under the GATT.
8. Without prejudice to Chapter Eight (Emergency Action),
neither Party may seek a voluntary restraint agreement from the
other Party with respect to the exportation of a qualifying
good.
9. Notwithstanding Chapter Four (Rules of Origin), Mexico may
treat a good provided for in Mexican tariff item 1806.10.01
(except those with a sugar content less than 90 percent) or
2106.90.05 (except those that contain added flavoring matter)
that is exported from the territory of Canada as non-
originating for purposes of applying a rate of customs duty to
that good, if any material provided for in HS subheading
Annex 703.2
1701.99 used in the production of such good is not a qualifying
good.
10. Notwithstanding Chapter Four (Rules of Origin), Canada may
treat a good provided for in Canadian tariff item 1806.10.10 or
2106.90.21 that is exported from the territory of Mexico as
non-originating for purposes of applying a rate of customs duty
to that good, if any material provided for in HS subheading
1701.99 used in the production of such good is not a qualifying
good.
Trade in Sugar
11. Mexico shall apply a rate of customs duty equal to its
most-favored-nation over-quota tariff rate to a sugar or syrup
that is a qualifying good.
12. Canada may apply a rate of customs duty on a sugar or
syrup good that is a qualifying good equal to the rate of
customs duty applied by Mexico pursuant to paragraph 11.
Agricultural Grading and Marketing Standards
13. The Parties hereby establish a Working Group, comprising
representatives of Canada and Mexico, which shall meet annually
or as otherwise agreed. The Working Group shall review, in
coordination with the Committee on Standards-Related Measures
established under Article 913 (Committee on Standards-Related
Measures), the operation of agricultural grade and quality
standards as they affect trade between the Parties, and shall
resolve issues that may arise regarding the operation of the
standards. This Working Group shall report to the Committee on
Agricultural Trade established under Article 706.
Definitions
14. For purposes of this Section:
qualifying good means an originating good that is an
agricultural good except that, in determining whether such good
is an originating good, operations performed in or material
obtained from the United States shall be considered as if they
were performed in or obtained from a non-Party.
Section C - Definitions
For purposes of this Annex:
Annex 703.2
sugar or syrup good means:
(a) for imports into Canada, a good provided for in any
of the current tariff items 1701.11.10, 1701.11.20,
1701.11.30, 1701.11.40, 1701.11.50, 1701.12.00,
1701.91.00, 1701.99.00, 1702.90.31, 1702.90.32,
1702.90.33, 1702.90.34, 1702.90.35, 1702.90.36,
1702.90.37, 1702.90.38, 1702.90.40, 1806.10.10 and
2106.90.21 of the Canadian Tariff Schedule;
(b) for imports into Mexico, a good provided for in any
of the current tariff items 1701.11.01, 1701.11.99,
1701.12.01, 1701.12.99, 1701.91 (except those that
contain added flavoring matter), 1701.99.01,
1701.99.99, 1702.90.01, 1806.10.01 (except those with
a sugar content less than 90 percent) and 2106.90.05
(except those that contain flavoring matter) of the
General Import Duty Act ("Ley del Impuesto General de
Importaci n"); and
(c) for imports into the United States, a good provided
for in any of the current tariff items 1701.11.03,
1701.12.02, 1701.91.22, 1701.99.02, 1702.90.32,
1806.10.42, and 2106.90.12 of the U.S. Harmonized
Tariff Schedule, without regard to the quantity
imported.
Appendix 703.2.A.4
Goods not Subject to Annex 703.2.A.4
Schedule of Mexico
Mexican Tariff Item Description
2009.11.01 (Orange juice, frozen)
2009.19.01 (Orange juice, with a grade
of concentration not greater
than 1.5 (single-strength
orange juice))
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision).
Annex 703.2
Schedule of the United States
U.S. Tariff Item Description
2009.11.00 (Orange juice, frozen)
2009.19.20 (Orange juice, not frozen,
not concentrated (single-
strength orange juice))
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision).
Appendix 703.2.A.13
Determination and Adjustment of Net Production Surplus
1. For purposes of Section A(14)(c), where the Parties
project a net production surplus for a Party for the next
marketing year, the projected surplus shall be:
(a) increased by the amount, if any, by which the actual
net production surplus exceeds the projected net
production surplus in the most recent marketing year
for which the Parties projected a net production
surplus for that Party; or
(b) decreased by the amount, if any, by which the
projected net production surplus exceeds the actual
net production surplus in the most recent marketing
year for which the Parties projected a net production
surplus for that Party;
as further demonstrated by the following formulas:
ANPS = (PPy - CPy) + CF
where: ANPS = adjusted net production surplus
PP = projected domestic production of sugar
CP = projected total consumption of sugar
CF = correction factor
y = next marketing year,
and
CF = (PAys - CAys) - (PPys - CPys)
where: PA = actual domestic production of sugar
Annex 703.2
CA = actual total consumption of sugar
ys = most recent previous marketing year
for which the Parties projected a net
production surplus for that Party.
2. For purposes only of paragraph 1, neither the projected
net production surplus (PPys -CPys) nor the actual net
production surplus (PAys - CAys) in the most recent marketing
year for which the Parties projected a net production surplus
for that Party may be considered to:
(a) exceed the quantity, if any, in Section A(15)
applicable to that year; or
(b) be lower than the greater of
(i) 7,258 metric tons raw value, or
(ii) the quantity in paragraph 14(b) of Section A
applicable to that year.
3. In appropriate circumstances, a Party shall consider
adjustments to projections of its net production surplus when:
Fc greater than (B + 10 %)
where
F is the percentage change in stocks from the
beginning to the end of a marketing year z,
expressed as a positive percentage
c is current marketing year
F is calculated in accordance with the
following formula:
Sb - Se
F = x 100
Sb
Sb beginning stocks in marketing year z
Se ending stocks in marketing year z
B the average annual percentage change in
stocks over the previous 5 marketing years,
Annex 703.2
calculated in accordance with the following
formula:
N previous marketing years, ranging from 1
(first preceding year) to 5 (fifth
preceding year).
4. For purposes of determining net production surplus or
projected net production surplus:
(a) domestic production means all sugar and syrup goods
derived from sugar cane or sugar beets grown in a
Party's territory; and
(b) total consumption means all sugar and syrup goods
consumed directly, or indirectly in the form of a
good containing such goods, in the territory of a
Party.
5. Each Party shall permit representatives from the other
Party to observe and comment on its statistics on
production, consumption, trade and stocks and on the
methodology it uses to prepare such statistics.
6. Statistics on production, consumption, trade and stocks
shall be provided by:
(a) the Secretar a de Agricultura y Recursos Hidr ulicos,
the Secretar a de Comercio y Fomento Industrial, and
the Secretar a de Hacienda y Cr dito P blico; and
(b) the U.S. Department of Agriculture (USDA).
Annex 703.2
Appendix 703.2.B.7
Dairy, Poultry and Egg Goods
Schedule of Canada
For Canada, a dairy, poultry or egg good is a good provided for
in one of the following Canadian tariff items:
Canadian Tariff Items Description
0105.11.20 Broilers of the species Gallus
domesticus for domestic production,
weighing not more than 185 g.
0105.91.00 Live fowls of the species Gallus
domesticus, weighing 185g. or more.
0105.99.00 Live ducks, geese, turkeys and guinea
fowls, weighing 185g. or more.
0207.10.00 Meat of poultry of heading No. 01.05,
not cut in pieces, fresh or chilled.
0207.21.00 Meat of fowls of the species Gallus
domesticus, not cut in pieces, frozen.
0207.22.00 Meat of turkeys, not cut in pieces,
frozen.
0207.39.00 Cut meat and edible offal (including
livers other than fatty livers of
geese or ducks), of the poultry of
heading No. 01.05, fresh or chilled.
0207.41.00 Cut meat and edible offal, other than
livers, of fowls of the species Gallus
domesticus, frozen.
0207.42.00 Cut meat and edible offal, other than
livers, of turkeys, frozen.
0207.50.00 Livers of poultry of heading No.
01.05, frozen.
0209.00.20 Poultry fat (not rendered), fresh,
chilled, frozen, salted, in brine,
dried or smoked.
0210.90.10 Meat of poultry, salted, in brine,
dried or smoked.
0401.10.00 Milk and cream, not concentrated nor
containing added sugar or other
sweetening matter of a fat content, by
weight, not exceeding 1 percent.
0401.20.00 Milk and cream, not concentrated nor
containing added sugar or other
sweetening matter of a fat content, by
Annex 703.2
weight, exceeding 1 percent but not
exceeding 6 percent.
0401.30.00 Milk and cream, not concentrated nor
containing added sugar or other
sweetening matter, of a fat content,
by weight, exceeding 6 percent.
0402.10.00 Milk and cream, concentrated or
containing added sugar or other
sweetening matter, in powder, granules
or other solid forms, of a fat
content, by weight, not exceeding 1.5
percent.
0402.21.10 Milk, concentrated, not containing
added sugar or other sweetening
matter, in powder, granules or other
solid forms, of a fat content, by
weight, exceeding 1.5 percent.
0402.21.20 Cream, concentrated, not containing
added sugar or other sweetening
matter, in powder, granules or other
solid forms, of a fat content, by
weight, exceeding 1.5 percent.
0402.29.10 Milk, whether or not concentrated,
containing added sugar or other
sweetening matter, in powder, granules
or other solid forms, of a fat
content, by weight, exceeding 1.5
percent.
0402.29.20 Cream, whether or not concentrated,
containing added sugar or other
sweetening matter, in powder, granules
or other solid forms, of a fat
content, by weight, exceeding 1.5
percent.
0402.91.00 Milk and cream, concentrated, not
containing added sugar or other
sweetening matter, not in powder,
granules or other solid forms.
0402.99.00 Milk and cream, whether or not
concentrated, containing added sugar
or other sweetening matter, not in
powder, granules or other solid forms.
0403.10.00 Yogurt.
0403.90.10 Powdered buttermilk.
0403.90.90 Liquid buttermilk, curdled milk and
cream, kephir and other fermented or
acidified milk and cream, whether or
not concentrated or containing added
Annex 703.2
sugar or other sweetening matter or
flavored or containing added fruit,
nuts or cocoa.
0404.10.10 Whey powder and modified whey powder,
whether or not concentrated or
containing added sugar or other
sweetening matter.
0404.10.90 Whey and modified whey, not in powder,
whether or not concentrated or
containing added sugar or other
sweetening matter.
0404.90.00 Products consisting of natural milk
constituents, whether or not
containing added sugar or other
sweetening matter, not elsewhere
specified or included.
0405.00.10 Butter.
0405.00.90 Fats and oils derived from milk, other
than butter.
0406.10.00 Fresh (unripened or uncured) cheese,
including whey cheese, and curd.
0406.20.10 Cheddar cheese and cheddar types of
cheese, grated or powdered.
0406.20.90 Grated or powdered cheese of all
kinds, other than cheddar and cheddar
types.
0406.30.00 Processed cheese, not grated or
powdered.
0406.40.00 Blue-veined cheese.
0406.90.10 Cheddar cheese and cheddar types of
cheese, not grated, powdered or
processed.
0406.90.90 Other cheese not elsewhere specified
or included.
0407.00.00 Birds' eggs, in shell, fresh,
preserved or cooked.
0408.11.00 Dried egg yolks, whether or not
containing added sugar or other
sweetening matter.
0408.19.00 Egg yolks, fresh, cooked by steaming
or by boiling in water, moulded,
frozen or otherwise preserved, whether
or not containing added sugar or other
sweetening matter.
0408.91.00 Bird's eggs, not in shell, dried,
whether or not containing added sugar
or other sweetening matter.
Annex 703.2
0408.99.00 Birds' eggs, not in shell, fresh,
cooked by steaming or by boiling in
water, moulded, frozen or otherwise
preserved, whether or not containing
added sugar or other sweetening
matter.
1601.00.11 Sausages and similar products of meat,
meat offal or blood of poultry of
heading No. 01.05 or food preparation
based on these products, in airtight
containers.
1602.10.10 Homogenized preparations of chicken or
turkey.
1602.20.20 Poultry liver paste.
1602.31.10 Prepared meals of prepared or
preserved turkey meat, meat offal or
blood, other than sausages and similar
products.
1602.31.91 Prepared or preserved turkey meat,
meat offal or blood, other than
sausages and similar products, and
other than prepared meals, in air-
tight containers.
1602.31.99 Prepared or preserved turkey meat,
meat offal of blood, other than
sausages and similar products, other
than prepared meals, not in air-tight
containers.
1602.39.10 Prepared meals of prepared or
preserved meat, meat offal or blood of
poultry of heading No. 01.05 other
than turkey (i.e., Gallus domesticus,
ducks, geese or guinea fowls), other
than sausages and similar products.
1602.39.91 Prepared or preserved meat, meat offal
or blood of poultry of heading No.
01.05 other than turkey (i.e., Gallus
domesticus, ducks, geese or guinea
fowls), other than sausages and
similar products, and other than
prepared meals, in air-tight
containers.
Annex 703.2
1602.39.99 Prepared or preserved meat, meat offal
or blood, of poultry of heading No.
01.05 other than turkey (i.e., Gallus
domesticus, ducks, geese or guinea
fowls), other than sausages and
similar products, other than prepared
meals, not in air-tight containers.
1901.90.31 Food preparations of goods of headings
Nos. 04.01 to 04.04, not containing
cocoa powder or containing cocoa
powder in a proportion by weight of
less than 10 percent, not elsewhere
specified or included, containing more
than 10 percent on a dry weight basis
of milk solids.
2105.00.00 Ice cream and other edible ice,
whether or not containing cocoa.
2106.90.70 Egg preparations not elsewhere
specified or included.
2309.90.31 Complete feeds and feed supplements,
including concentrates, containing
over 50 percent by weight in the dry
state of milk solids.
3501.10.00 Casein.
3501.90.00 Caseinates and other casein
derivatives; casein glues.
3502.10.10 Egg albumin, dried, evaporated,
desiccated or powdered.
3502.10.90 Other egg albumin.
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision.)
Schedule of Mexico
For Mexico, a dairy, poultry or egg good is a good provided for
in one of the following tariff items:
Mexican Tariff Items Description
0105.11.01 Day old chickens without being fed
during its transportation
0105.91.01 Game cocks
0105.91.99 Other
0105.99.99 Other poultry
Annex 703.2
0207.10.01 Turkey
0207.10.99 Other
0207.21.01 Chickens
0207.22.01 Turkey
0207.39.01 Paste of poultry or turkey (not
provided for in heading 16.01 or
16.02)
0207.39.02 Turkey
0207.39.99 Other
0207.41.01 Paste (not provided for in heading
16.01 or 16.02)
0207.41.99 Other
0207.42.01 Paste (not provided for in heading
16.01 or 16.02)
0207.42.99 Other
0207.50.01 Poultry livers, frozen
0209.00.01 Chicken or turkey fat
0210.90.99 Other
0401.10.01 In hermetic containers milk not
concentrated
0401.10.99 Other
0401.20.01 In hermetic containers
0401.20.99 Other
0401.30.01 In hermetic containers
0401.30.99 Other
0402.10.01 Milk powder
0402.10.99 Other
0402.21.01 Milk powder
0402.21.99 Other
0402.29.99 Other
0402.91.01 Evaporated milk
0402.91.99 Other
0402.99.01 Condensed milk
0402.99.99 Other
0403.10.01 Yogurt
0403.90.01 Powdered milk whey with a protein
content less than or equal to 12
percent
0403.90.99 Other butter whey
0404.10.01 Whey, concentrated, sweetened
0404.90.99 Other
0405.00.01 Butter, including the immediate
container, with a weight less than or
equal to 1 kg
0405.00.02 Butter, including the immediate
container, with a weight over 1 kg
0405.00.03 Butiric fat, dehydrated
0405.00.99 Other
Annex 703.2
0406.10.01 Fresh cheese, including whey cheese
0406.20.01 Cheese, grated or powdered
0406.30.01 Melted cheese, not grated or powdered
0406.30.99 Other, melted cheese
0406.40.01 Blue veined cheese
0406.90.01 Hard paste cheese called sardo
0406.90.02 Hard paste reggi cheese
0406.90.03 Soft paste cologne cheese
0406.90.04 Hard or semi-hard cheeses with a fat
content by weight less than or equal
to 40 percent, and with a water
content by weight in non-fat matter
less than or equal to 47 percent
(called "grana", "parmigiana" or
"reggiano,") or with a non-fat matter
content by weight over 47 percent
without exceeding 72 percent (called
"danloo, edam, fontan, fontina, fynbo,
gouda, Avarti, maribo, samsoe, esron,
italico, kernhem, Saint-Nectaire,
Saint-Paulin, or talegi l")
0406.90.05 Petit suisse cheese
0406.90.06 Egmont cheese
0406.90.99 Other hard and semihard cheese
0407.00.01 Fresh birds eggs, fertile
0407.00.02 Frozen eggs
0407.00.99 Other poultry eggs
0408.11.01 Dried yolks
0408.19.99 Other
0408.91.01 Frozen or powdered
0408.91.99 Other
0408.99.01 Frozen or powdered
0408.99.99 Other
1601.00.01 Sausages or similar products of
poultry or turkey
1602.10.01 Homogenized preparations of poultry or
turkey
1602.20.01 Prepared or preserved liver of poultry
or turkey
1602.31.01 Prepared or preserved turkey meat
1602.39.99 Other
1901.90.03 Food preparations containing over 10
percent, by weight, of milk solids
2105.00.01 Ice cream and similar products
2106.90.09 Egg preparations
2309.90.11 Preparations containing over 50
percent by weight of milk solids
3501.10.01 Casein
3501.90.01 Casein glues
3501.90.02 Caseinates
3501.90.99 Other
3502.10.01 Egg albumin
Annex 703.2
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision.)
Annex 703.3
Special Safeguard Goods
Section A - Canadian Special Safeguard Goods
Canadian Tariff Items Description
0603.10.90 Fresh cut flowers and flower buds, other
than orchids, of a kind suitable for
bouquets or for ornamental purposes.
0702.00.91 Tomatoes, fresh or chilled, not for
processing, (dutiable period).
0703.10.31 Onions or shallots, green, fresh or
chilled (dutiable period).
0707.00.91 Cucumbers or gherkins, fresh or chilled,
not for processing (dutiable period).
0710.80.20 Broccoli and cauliflowers, uncooked or
cooked by steaming or boiling in water,
frozen.
0811.10.10 Strawberries, uncooked or cooked by
steaming or boiling in water, frozen,
whether or not containing added sugar or
other sweetening matter, for processing.
0811.10.90 Strawberries, uncooked or cooked by
steaming or boiling in water, frozen,
whether or not containing added sugar or
other sweetening matter, other than for
processing.
2002.90.00 Tomatoes prepared or preserved otherwise
than by vinegar or acetic acid, other
than whole or in pieces.
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision.)
Section B - Mexico
Mexican Tariff Items Description
0103.91.99 Live swine, weighing less than 50
kilograms each, except purebred breeding
animals and those with pedigree or
selected breed certificate
Annex 703.3
0103.92.99 Live swine, weighing 50 kilograms or
more each, except purebred breeding
animals and those with pedigree or
selected breed certificate
0203.11.01 Meat of swine, carcasses and half-
carcasses, fresh or chilled
0203.12.01 Hams, shoulders or cuts thereof, with
bone in, fresh or chilled
0203.19.99 Other swine meat, fresh or chilled
0203.21.01 Meat of swine, carcasses and half-
carcasses, frozen
0203.22.01 Hams, shoulders and cuts thereof, with
bone in, frozen
0203.29.99 Other swine meat, frozen
0210.11.01 Hams, shoulders and cuts thereof with
bone in, salted, in brine, dried or
smoked
0210.12.01 Bellies (streaky) and cuts thereof,
salted, in brine, dried or smoked.
0210.19.99 Other swine meat, in brine, dried or
smoked
0710.10.01 Potatoes, uncooked or cooked by steaming
or boiling in water, frozen
0712.10.01 Dried potatoes, whole cut, sliced,
broken or in powder, but not further
prepared
0808.10.01 Apples, fresh
2004.10.01 Potatoes prepared or preserved otherwise
than by vinegar or acetic acid, frozen
2005.20.01 Potatoes prepared or preserved otherwise
than by vinegar or acetic acid, not
frozen
2101.10.01 Extracts, essences or concentrates, of
coffee, and preparations with a basis of
these extracts, essences or concentrates
or with a basis of coffee.
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision.)
Section C - United States
Note: "X" indicates that a new tariff item will be
established for this item
U.S. Tariff Items Description
Annex 703.3
0702.00.XX Tomatoes (except cherry tomatoes), fresh
or chilled; if entered during the period
from November 15 to the last day of the
following February, inclusive
0702.00.XX Tomatoes (except cherry tomatoes), fresh
or chilled; if entered during the period
from March 1 to July 14, inclusive
0703.10.XX Onions and shallots, fresh or chilled
(not including onion sets and not
___
___
including pearl onions not over 16 mm in
diameter) if entered January 1 to April
30, inclusive
0709.30.XX Eggplants (aubergines), fresh or
chilled, if entered during the period
from April 1 to June 30, inclusive
0709.60.XX "Chili" peppers; if entered during the
period from October 1 to July 31,
inclusive (current 0709.60.00.20)
0709.90.XX Squash, fresh or chilled; if entered
during the period from October 1 to the
following June 30, inclusive
0807.10.XX Watermelons, fresh; if entered during
the period from May 1 to September 30,
inclusive.
(For purposes of reference only, descriptions are provided next
to the corresponding tariff provision.)
Section B - Sanitary and Phytosanitary Measures
Article 709: Scope and Coverage
In order to establish a framework of rules and disciplines
to guide the development, adoption and enforcement of sanitary
and phytosanitary measures, this Section applies to any such
measure of a Party that may, directly or indirectly, affect trade
between the Parties.
Article 710: Relation to Other Chapters
Articles 301 (National Treatment) and 309 (Import and Export
Restrictions), and the provisions of Article XX(b) of the GATT as
incorporated into Article 2101(1) (General Exceptions), do not
apply to any sanitary or phytosanitary measure.
Article 711: Reliance on Non-Governmental Entities
Each Party shall ensure that any non-governmental entity on
which it relies in applying a sanitary or phytosanitary measure
acts in a manner consistent with this Section.
Article 712: Basic Rights and Obligations
Right to Take Sanitary and Phytosanitary Measures
1. Each Party may, in accordance with this Section, adopt,
maintain or apply any sanitary or phytosanitary measure necessary
for the protection of human, animal or plant life or health in
its territory, including a measure more stringent than an
international standard, guideline or recommendation.
Right to Establish Level of Protection
2. Notwithstanding any other provision of this Section, each
Party may, in protecting human, animal or plant life or health,
establish its appropriate levels of protection in accordance with
Article 715.
Scientific Principles
3. Each Party shall ensure that any sanitary or phytosanitary
measure that it adopts, maintains or applies is:
(a) based on scientific principles, taking into account
relevant factors including, where appropriate,
different geographic conditions;
(b) not maintained where there is no longer a scientific
basis for it; and
(c) based on a risk assessment, as appropriate to the
circumstances.
Non-Discriminatory Treatment
4. Each Party shall ensure that a sanitary or phytosanitary
measure that it adopts, maintains or applies does not arbitrarily
or unjustifiably discriminate between its goods and like goods of
another Party, or between goods of another Party and like goods
of any other country, where identical or similar conditions
prevail.
Unnecessary Obstacles
5. Each Party shall ensure that any sanitary or phytosanitary
measure that it adopts, maintains or applies is applied only to
the extent necessary to achieve its appropriate level of
protection, taking into account technical and economic
feasibility.
Disguised Restrictions
6. No Party may adopt, maintain or apply any sanitary or
phytosanitary measure with a view to, or with the effect of,
creating a disguised restriction on trade between the Parties.
Article 713: International Standards and Standardizing
Organizations
1. Without reducing the level of protection of human, animal or
plant life or health, each Party shall use, as a basis for its
sanitary and phytosanitary measures, relevant international
standards, guidelines or recommendations with the objective,
among others, of making its sanitary and phytosanitary measures
equivalent or, where appropriate, identical to those of the other
Parties.
2. A Party's sanitary or phytosanitary measure that conforms to
a relevant international standard, guideline or recommendation
shall be presumed to be consistent with Article 712. A measure
that results in a level of sanitary or phytosanitary protection
different from that which would be achieved by a measure based on
a relevant international standard, guideline or recommendation
shall not for that reason alone be presumed to be inconsistent
with this Section.
3. Nothing in Paragraph 1 shall be construed to prevent a Party
from adopting, maintaining or applying, in accordance with the
other provisions of this Section, a sanitary or phytosanitary
measure that is more stringent than the relevant international
standard, guideline or recommendation.
4. Where a Party has reason to believe that a sanitary or
phytosanitary measure of another Party is adversely affecting or
may adversely affect its exports and the measure is not based on
a relevant international standard, guideline or recommendation,
it may request, and the other Party shall provide in writing, the
reasons for the measure.
5. Each Party shall, to the greatest extent practicable,
participate in relevant international and North American
standardizing organizations, including the Codex Alimentarius
Commission, the International Office of Epizootics, the
International Plant Protection Convention, and the North American
Plant Protection Organization, with a view to promoting the
development and periodic review of international standards,
guidelines and recommendations.
Article 714: Equivalence
1. Without reducing the level of protection of human, animal or
plant life or health, the Parties shall, to the greatest extent
practicable and in accordance with this Section, pursue
equivalence of their respective sanitary and phytosanitary
measures.
2. Each importing Party:
(a) shall treat a sanitary or phytosanitary measure adopted
or maintained by an exporting Party as equivalent to
its own where the exporting Party, in cooperation with
the importing Party, provides to the importing Party
scientific evidence or other information, in accordance
with risk assessment methodologies agreed on by those
Parties, to demonstrate objectively, subject to
subparagraph (b), that the exporting Party's measure
achieves the importing Party's appropriate level of
protection;
(b) may, where it has a scientific basis, determine that
the exporting Party's measure does not achieve the
importing Party's appropriate level of protection; and
(c) shall provide to the exporting Party, on request, its
reasons in writing for a determination under
subparagraph (b).
3. For purposes of establishing equivalence, each exporting
Party shall, on the request of an importing Party, take such
reasonable measures as may be available to it to facilitate
access in its territory for inspection, testing and other
relevant procedures.
4. Each Party should, in the development of a sanitary or
phytosanitary measure, consider relevant actual or proposed
sanitary or phytosanitary measures of the other Parties.
Article 715: Risk Assessment and Appropriate Level of
Protection
1. In conducting a risk assessment, each Party shall take into
account:
(a) relevant risk assessment techniques and methodologies
developed by international or North American
standardizing organizations;
(b) relevant scientific evidence;
(c) relevant processes and production methods;
(d) relevant inspection, sampling and testing methods;
(e) the prevalence of relevant diseases or pests, including
the existence of pest-free or disease-free areas or
areas of low pest or disease prevalence;
(f) relevant ecological and other environmental conditions;
and
(g) relevant treatments, such as quarantines.
2. Further to paragraph 1, each Party shall, in establishing
its appropriate level of protection regarding the risk associated
with the introduction, establishment or spread of an animal or
plant pest or disease, and in assessing the risk, also take into
account the following economic factors, where relevant:
(a) loss of production or sales that may result from the
pest or disease;
(b) costs of control or eradication of the pest or disease
in its territory; and
(c) the relative cost-effectiveness of alternative
approaches to limiting risks.
3. Each Party, in establishing its appropriate level of
protection:
(a) should take into account the objective of minimizing
negative trade effects; and
(b) shall, with the objective of achieving consistency in
such levels, avoid arbitrary or unjustifiable
distinctions in such levels in different circumstances,
where such distinctions result in arbitrary or
unjustifiable discrimination against a good of another
Party or constitute a disguised restriction on trade
between the Parties.
4. Notwithstanding paragraphs (1) through (3) and Article
712(3)(c), where a Party conducting a risk assessment determines
that available relevant scientific evidence or other information
is insufficient to complete the assessment, it may adopt a
provisional sanitary or phytosanitary measure on the basis of
available relevant information, including from international or
North American standardizing organizations and from sanitary or
phytosanitary measures of other Parties. The Party shall, within
a reasonable period after information sufficient to complete the
assessment is presented to it, complete its assessment, review
and, where appropriate, revise the provisional measure in the
light of the assessment.
5. Where a Party is able to achieve its appropriate level of
protection through the phased application of a sanitary or
phytosanitary measure, it may, on the request of another Party
and in accordance with this Section, allow for such a phased
application, or grant specified exceptions for limited periods
from the measure, taking into account the requesting Party's
export interests.
Article 716: Adaptation to Regional Conditions
1. Each Party shall adapt any of its sanitary or phytosanitary
measures relating to the introduction, establishment or spread of
an animal or plant pest or disease, to the sanitary or
phytosanitary characteristics of the area where a good subject to
such a measure is produced and the area in its territory to which
the good is destined, taking into account any relevant
conditions, including those relating to transportation and
handling, between those areas. In assessing such characteristics
of an area, including whether an area is, and is likely to
remain, a pest-free or disease-free area or an area of low pest
or disease prevalence, each Party shall take into account, among
other factors:
(a) the prevalence of relevant pests or diseases in that
area;
(b) the existence of eradication or control programs in
that area; and
(c) any relevant international standard, guideline or
recommendation.
2. Further to paragraph 1, each Party shall, in determining
whether an area is a pest-free or disease-free area or an area of
low pest or disease prevalence, base its determination on factors
such as geography, ecosystems, epidemiological surveillance and
the effectiveness of sanitary or phytosanitary controls in that
area.
3. Each importing Party shall recognize that an area in the
territory of the exporting Party is, and is likely to remain, a
pest-free or disease-free area or an area of low pest or disease
prevalence, where the exporting Party provides to the importing
Party scientific evidence or other information sufficient to so
demonstrate to the satisfaction of the importing Party. For this
purpose, each exporting Party shall provide reasonable access in
its territory to the importing Party for inspection, testing and
other relevant procedures.
4. Each Party may, in accordance with this Section:
(a) adopt, maintain or apply a different risk assessment
procedure for a pest-free or disease-free area than for
an area of low pest or disease prevalence, or
(b) make a different final determination for the
disposition of a good produced in a pest-free or
disease-free area than for a good produced in an area
of low pest or disease prevalence,
taking into account any relevant conditions, including those
relating to transportation and handling.
5. Each Party shall, in adopting, maintaining or applying a
sanitary or phytosanitary measure relating to the introduction,
establishment or spread of an animal or plant pest or disease,
accord a good produced in a pest-free or disease-free area in the
territory of another Party no less favorable treatment than it
accords a good produced in a pest-free or disease-free area, in
another country, that poses the same level of risk. The Party
shall use equivalent risk assessment techniques to evaluate
relevant conditions and controls in the pest-free or disease-free
area and in the area surrounding that area and take into account
any relevant conditions, including those relating to
transportation and handling.
6. Each importing Party shall pursue an agreement with an
exporting Party, on request, on specific requirements the
fulfillment of which allows a good produced in an area of low
pest or disease prevalence in the territory of an exporting Party
to be imported into the territory of the importing Party and
achieves the importing Party's appropriate level of protection.
Article 717: Control, Inspection and Approval Procedures
1. Each Party, with respect to any control or inspection
procedure that it conducts:
(a) shall initiate and complete the procedure as
expeditiously as possible and in no less favorable
manner for a good of another Party than for a like good
of the Party or of any other country;
(b) shall publish the normal processing period for the
procedure or communicate the anticipated processing
period to the applicant on request;
(c) shall ensure that the competent body
(i) on receipt of an application, promptly examines
the completeness of the documentation and
informs the applicant in a precise and complete
manner of any deficiency,
(ii) transmits to the applicant as soon as possible
the results of the procedure in a form that is
precise and complete so that the applicant may
take any necessary corrective action,
(iii) where the application is deficient, proceeds as
far as practicable with the procedure if the
applicant so requests, and
(iv) informs the applicant, on request, of the status
of the application and the reasons for any
delay;
(d) shall limit the information the applicant is required
to supply to that necessary for conducting the
procedure;
(e) shall accord confidential or proprietary information
arising from, or supplied in connection with, the
procedure conducted for a good of another Party
(i) treatment no less favorable than for a good of
the Party, and
(ii) in any event, treatment that protects the
applicant's legitimate commercial interests, to
the extent provided under the Party's law;
(f) shall limit any requirement regarding individual
specimens or samples of a good to that which is
reasonable and necessary;
(g) should not impose a fee for conducting the procedure
that is higher for a good of another Party than is
equitable in relation to any such fee it imposes for
its like goods or for like goods of any other country,
taking into account communication, transportation and
other related costs;
(h) should use criteria for selecting the location of
facilities at which the procedure is conducted that do
not cause unnecessary inconvenience to an applicant or
its agent;
(i) shall provide a mechanism to review complaints
concerning the operation of the procedure and to take
corrective action when a complaint is justified;
(j) should use criteria for selecting samples of goods that
do not cause unnecessary inconvenience to an applicant
or its agent; and
(k) shall limit the procedure, for a good modified
subsequent to a determination that the good fulfills
the requirements of the applicable sanitary or
phytosanitary measure, to that necessary to determine
that the good continues to fulfill the requirements of
that measure.
2. Each Party shall apply, with such modifications as may be
necessary, paragraphs 1(a) through (i) to its approval
procedures.
3. Where an importing Party's sanitary or phytosanitary measure
requires the conduct of a control or inspection procedure at the
level of production, an exporting Party shall, on the request of
the importing Party, take such reasonable measures as may be
available to it to facilitate access in its territory and to
provide assistance necessary to facilitate the conduct of the
importing Party's control or inspection procedure.
4. A Party maintaining an approval procedure may require its
approval for the use of an additive, or its establishment of a
tolerance for a contaminant, in a food, beverage or feedstuff,
under that procedure prior to granting access to its domestic
market for a food, beverage or feedstuff containing that additive
or contaminant. Where such Party so requires, it shall consider
using a relevant international standard, guideline or
recommendation as the basis for granting access until it
completes the procedure.
Article 718: Notification, Publication and Provision of
Information
1. Further to Articles 1802 (Publication) and 1803
(Notification and Provision of Information), each Party proposing
to adopt or modify a sanitary or phytosanitary measure of general
application at the federal level shall:
(a) at least 60 days prior to the adoption or modification
of the measure, other than a law, publish a notice and
notify in writing the other Parties of the proposed
measure and provide to the other Parties and publish
the full text of the proposed measure, in such a manner
as to enable interested persons to become acquainted
with the proposed measure;
(b) identify in the notice and notification the good to
which the measure would apply, and provide a brief
description of the objective and reasons for the
measure;
(c) provide a copy of the proposed measure to any Party or
interested person that so requests and, wherever
possible, identify any provision that deviates in
substance from relevant international standards,
guidelines or recommendations; and
(d) without discrimination, allow other Parties and
interested persons to make comments in writing and
shall, on request, discuss the comments and take the
comments and the results of the discussions into
account.
2. Each Party shall seek, through appropriate measures, to
ensure, with respect to a sanitary or phytosanitary measure of a
state or provincial government:
(a) that, at an early appropriate stage, a notice and
notification of the type referred to in paragraphs 1(a)
and (b) are made prior to their adoption; and
(b) observance of paragraphs 1(c) and (d).
3. Where a Party considers it necessary to address an urgent
problem relating to sanitary or phytosanitary protection, it may
omit any step set out in paragraph 1 or 2, provided that, on
adoption of a sanitary or phytosanitary measure, it shall:
(a) immediately provide to the other Parties a notification
of the type referred to in paragraph 1(b), including a
brief description of the urgent problem;
(b) provide a copy of the measure to any Party or
interested person that so requests; and
(c) without discrimination, allow other Parties and
interested persons to make comments in writing and
shall, on request, discuss the comments and take the
comments and the results of the discussions into
account.
4. Each Party shall, except where necessary to address an
urgent problem referred to in paragraph 3, allow a reasonable
period between the publication of a sanitary or phytosanitary
measure of general application and the date that it becomes
effective to allow time for interested persons to adapt to the
measure.
5. Each Party shall designate a government authority
responsible for the implementation at the federal level of the
notification provisions of this Article, and shall notify the
other Parties thereof. Where a Party designates two or more
government authorities for this purpose, it shall provide to the
other Parties complete and unambiguous information on the scope
of responsibility of each such authority.
6. Where an importing Party denies entry into its territory of
a good of another Party because it does not comply with a
sanitary or phytosanitary measure, the importing Party shall
provide a written explanation to the exporting Party, on request,
that identifies the applicable measure and the reasons that the
good is not in compliance.
Article 719: Inquiry Points
1. Each Party shall ensure that there is one inquiry point that
is able to answer all reasonable inquiries from other Parties and
interested persons, and to provide relevant documents, regarding:
(a) any sanitary or phytosanitary measure of general
application, including any control or inspection
procedure or approval procedure, proposed, adopted or
maintained in its territory at the federal, state or
provincial government level;
(b) the Party's risk assessment procedures and factors it
considers in conducting the assessment and in
establishing its appropriate levels of protection;
(c) the membership and participation of the Party, or its
relevant federal, state or provincial government
authorities in international and regional sanitary and
phytosanitary organizations and systems, and in
bilateral and multilateral arrangements within the
scope of this Section, and the provisions of those
systems and arrangements; and
(d) the location of notices published pursuant to this
Section or where such information can be obtained.
2. Each Party shall ensure that where copies of documents are
requested by another Party or by interested persons in accordance
with this Section, they are supplied at the same price, apart
from the actual cost of delivery, as the price for domestic
purchase.
Article 720: Technical Cooperation
1. Each Party shall, on the request of another Party,
facilitate the provision of technical advice, information and
assistance, on mutually agreed terms and conditions, to enhance
that Party's sanitary and phytosanitary measures and related
activities, including research, processing technologies,
infrastructure and the establishment of national regulatory
bodies. Such assistance may include credits, donations and
grants for the acquisition of technical expertise, training and
equipment that will facilitate the Party's adjustment to and
compliance with a Party's sanitary or phytosanitary measure.
2. Each Party shall, on the request of another Party:
(a) provide to that Party information on its technical
cooperation programs regarding sanitary or
phytosanitary measures relating to specific areas of
interest; and
(b) consult with the other Party during the development of,
or prior to the adoption or change in the application
of, any sanitary or phytosanitary measure.
Article 721: Limitations on the Provision of Information
Nothing in this Section shall be construed to require a Party to:
(a) communicate, publish texts or provide particulars or
copies of documents other than in an official language
of the Party; or
(b) furnish any information the disclosure of which would
impede law enforcement or otherwise be contrary to the
public interest or would prejudice the legitimate
commercial interests of particular enterprises.
Article 722: Committee on Sanitary and Phytosanitary Measures
1. The Parties hereby establish a Committee on Sanitary and
Phytosanitary Measures, comprising representatives of each Party
who have responsibility for sanitary and phytosanitary matters.
2. The Committee should facilitate:
(a) the enhancement of food safety and improvement of
sanitary and phytosanitary conditions in the
territories of the Parties;
(b) activities of the Parties pursuant to Articles 713 and
714;
(c) technical cooperation between the Parties, including
cooperation in the development, application and
enforcement of sanitary or phytosanitary measures; and
(d) consultations on specific matters relating to sanitary
or phytosanitary measures.
3. The Committee:
(a) shall, to the extent possible, in carrying out its
functions, seek the assistance of relevant
international and North American standardizing
organizations to obtain available scientific and
technical advice and minimize duplication of effort;
(b) may draw on such experts and expert bodies as it
considers appropriate;
(c) shall report annually to the Commission on the
implementation of this Section;
(d) shall meet on the request of any Party and, unless the
Parties otherwise agree, at least once each year; and
(e) may, as it considers appropriate, establish and
determine the scope and mandate of working groups.
Article 723: Technical Consultations
1. A Party may request consultations with another Party on any
matter covered by this Section.
2. Each Party should use the good offices of relevant
international and North American standardizing organizations,
including those referred to in Article 713(5), for advice and
assistance on sanitary and phytosanitary matters within their
respective mandates.
3. Where a Party requests consultations regarding the
application of this Section to a Party's sanitary or
phytosanitary measure, and so notifies the Committee, the
Committee may facilitate the consultations, if it does not
consider the matter itself, by referring the matter for
non-binding technical advice or recommendations to a working
group, including an ad hoc working group, or to another forum.
__ ___
4. The Committee should consider any matter referred to it
under paragraph 3 as expeditiously as possible, particularly
regarding perishable goods, and promptly forward to the Parties
any technical advice or recommendations that it develops or
receives concerning the matter. The Parties involved shall
provide a written response to the Committee concerning the
technical advice or recommendations within such time as the
Committee may request.
5. Where the involved Parties have had recourse to
consultations facilitated by the Committee under paragraph 3, the
consultations shall, on the agreement of the Parties involved,
constitute consultations under Article 2006 (Consultations).
6. The Parties confirm that a Party asserting that a sanitary
or phytosanitary measure of another Party is inconsistent with
this Section shall have the burden of establishing the
inconsistency.
Article 724: Definitions
For purposes of this Section:
animal includes fish and wild fauna;
appropriate level of protection means the level of protection of
human, animal or plant life or health in the territory of a Party
that the Party considers appropriate;
approval procedure means any registration, notification or other
mandatory administrative procedure for:
(a) approving the use of an additive for a stated purpose
or under stated conditions; or
(b) establishing a tolerance for a stated purpose or under
stated conditions for a contaminant,
in a food, beverage or feedstuff prior to permitting the use of
the additive or the marketing of a food, beverage or feedstuff
containing the additive or contaminant;
area means a country, part of a country or all or parts of
several countries;
area of low pest or disease prevalence means an area in which a
specific pest or disease occurs at low levels;
contaminant includes pesticide and veterinary drug residues and
extraneous matter;
control or inspection procedure means any procedure used,
directly or indirectly, to determine that a sanitary or
phytosanitary measure is fulfilled, including sampling, testing,
inspection, evaluation, verification, monitoring, auditing,
assurance of conformity, accreditation, registration,
certification or other procedure involving the physical
examination of a good, of the packaging of a good, or of the
equipment or facilities directly related to production, marketing
or use of a good, but does not mean an approval procedure;
international standard, guideline or recommendation means a
standard, guideline or recommendation:
(a) regarding food safety, adopted by the Codex
Alimentarius Commission, including one regarding
decomposition elaborated by the Codex Committee on Fish
and Fishery Products, food additives, contaminants,
hygienic practice, and methods of analysis and
sampling;
(b) regarding animal health and zoonoses, developed under
the auspices of the International Office of Epizootics;
(c) regarding plant health, developed under the auspices of
the Secretariat of the International Plant Protection
Convention in cooperation with the North American Plant
Protection Organization; or
(d) established by or developed under any other
international organization agreed on by the Parties;
pest includes a weed;
pest-free or disease-free area means an area in which a specific
pest or disease does not occur;
plant includes wild flora;
risk assessment means an evaluation of:
(a) the potential for the introduction, establishment or
spread of a pest or disease and associated biological
and economic consequences; or
(b) the potential for adverse effects on human or animal
life or health arising from the presence of an
additive, contaminant, toxin or disease-causing
organism in a food, beverage or feedstuff;
sanitary or phytosanitary measure means a measure that a Party
adopts, maintains or applies to:
(a) protect animal or plant life or health in its territory
from risks arising from the introduction, establishment
or spread of a pest or disease,
(b) protect human or animal life or health in its territory
from risks arising from the presence of an additive,
contaminant, toxin or disease-causing organism in a
food, beverage or feedstuff,
(c) protect human life or health in its territory from
risks arising from a disease-causing organism or pest
carried by an animal or plant, or a product thereof, or
(d) prevent or limit other damage in its territory arising
from the introduction, establishment or spread of a
pest,
including end product criteria; a product-related processing or
production method; a testing, inspection, certification or
approval procedure; a relevant statistical method; a sampling
procedure; a method of risk assessment; a packaging and labelling
requirement directly related to food safety; and a quarantine
treatment, such as a relevant requirement associated with the
transportation of animals or plants or with material necessary
for their survival during transportation; and
scientific basis means a reason based on data or information
derived using scientific methods.
Title:Emergency Action -- Chapter Eight
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:30583
Chapter Eight
Emergency Action
Article 801: Bilateral Actions
1. Subject to paragraphs 2 through 4 and Annex 801.1, and
during the transition period only, if a good originating in the
territory of a Party, as a result of the reduction or
elimination of a duty provided for in this Agreement, is being
imported into the territory of another Party in such increased
quantities, in absolute terms, and under such conditions that
the imports of the good from that Party alone constitute a
substantial cause of serious injury, or threat thereof, to a
domestic industry producing a like or directly competitive
good, the Party into whose territory the good is being imported
may, to the minimum extent necessary to remedy or prevent the
injury:
(a) suspend the further reduction of any rate of duty
provided for under this Agreement on the good;
(b) increase the rate of duty on the good to a level not
to exceed the lesser of
(i) the most-favored-nation (MFN) applied rate of
duty in effect at the time the action is taken,
and
(ii) the MFN applied rate of duty in effect on the
day immediately preceding the date of entry into
force of this Agreement; or
(c) in the case of a duty applied to a good on a seasonal
basis, increase the rate of duty to a level not to
exceed the MFN applied rate of duty that was in
effect on the good for the corresponding season
immediately preceding the date of entry into force of
this Agreement.
2. The following conditions and limitations shall apply to a
proceeding that may result in emergency action under paragraph
1:
(a) a Party shall, without delay, deliver to any Party
that may be affected written notice of, and a request
for consultations regarding, the institution of a
proceeding that could result in emergency action
against a good originating in the territory of a
Party;
(b) any such action shall be initiated no later than one
year after the date of institution of the proceeding;
(c) no action may be maintained
(i) for a period exceeding three years, except where
the good against which the action is taken is
provided for in the items in staging category C+
of the Schedule to Annex 302.2 (Tariff
Elimination) of the Party taking the action and
that Party determines that the affected industry
has undertaken adjustment and requires an
extension of the period of relief, in which case
the period of relief may be extended for one
year provided that the duty applied during the
initial period of relief is substantially
reduced at the beginning of the extension
period, or
(ii) beyond the expiration of the transition period,
except with the consent of the Party against
whose good the action is taken;
(d) no action may be taken by a Party against any
particular good originating in the territory of
another Party more than once during the transition
period; and
(e) on the termination of the action, the rate of duty
shall be the rate that, according to the Party's
Schedule to Annex 302.2 for the staged elimination of
the tariff, would have been in effect one year after
the initiation of the action, and beginning January
1 of the year following the termination of the
action, at the option of the Party that has taken the
action
(i) the rate of duty shall conform to the applicable
rate set out in its Schedule to Annex 302.2, or
(ii) the tariff shall be eliminated in equal annual
stages ending on the date set out in its
Schedule to Annex 302.2 for the elimination of
the tariff.
3. A Party may take a bilateral emergency action after the
expiration of the transition period to deal with cases of
serious injury, or threat thereof, to a domestic industry
arising from the operation of this Agreement only with the
consent of the Party against whose good the action would be
taken.
4. The Party taking an action under this Article shall
provide to the Party against whose good the action is taken
mutually agreed trade liberalizing compensation in the form of
concessions having substantially equivalent trade effects or
equivalent to the value of the additional duties expected to
result from the action. If the Parties concerned are unable to
agree on compensation, the Party against whose good the action
is taken may take tariff action having trade effects
substantially equivalent to the action taken under this
Article. The Party taking the tariff action shall apply the
action only for the minimum period necessary to achieve the
substantially equivalent effects.
5. This Article does not apply to emergency actions
respecting goods covered by Annex 300-B (Textile and Apparel
Goods).
Article 802: Global Actions
1. Each Party retains its rights and obligations under
Article XIX of the GATT or any safeguard agreement pursuant
thereto except those regarding compensation or retaliation and
exclusion from an action to the extent that such rights or
obligations are inconsistent with this Article. Any Party
taking an emergency action under Article XIX or any such
agreement shall exclude imports of a good from each other Party
from the action unless:
(a) imports from a Party, considered individually,
account for a substantial share of total imports; and
(b) imports from a Party, considered individually, or in
exceptional circumstances imports from Parties
considered collectively, contribute importantly to
the serious injury, or threat thereof, caused by
imports.
2. In determining whether:
(a) imports from a Party, considered individually,
account for a substantial share of total imports,
those imports normally shall not be considered to
account for a substantial share of total imports if
that Party is not among the top five suppliers of the
good subject to the proceeding, measured in terms of
import share during the most recent three-year
period; and
(b) imports from a Party or Parties contribute
importantly to the serious injury, or threat thereof,
the competent investigating authority shall consider
such factors as the change in the import share of
each Party, and the level and change in the level of
imports of each Party. In this regard, imports from
a Party normally shall not be deemed to contribute
importantly to serious injury, or the threat thereof,
if the growth rate of imports from a Party during the
period in which the injurious surge in imports
occurred is appreciably lower than the growth rate of
total imports from all sources over the same period.
3. A Party taking such action, from which a good from another
Party or Parties is initially excluded pursuant to paragraph 1,
shall have the right subsequently to include that good from the
other Party or Parties in the action in the event that the
competent investigating authority determines that a surge in
imports of such good from the other Party or Parties undermines
the effectiveness of the action.
4. A Party shall, without delay, deliver written notice to
the other Parties of the institution of a proceeding that may
result in emergency action under paragraph 1 or 3.
5. No Party may impose restrictions on a good in an action
under paragraph 1 or 3:
(a) without delivery of prior written notice to the
Commission, and without adequate opportunity for
consultation with the Party or Parties against whose
good the action is proposed to be taken, as far in
advance of taking the action as practicable; and
(b) that would have the effect of reducing imports of
such good from a Party below the trend of imports of
the good from that Party over a recent representative
base period with allowance for reasonable growth.
6. The Party taking an action pursuant to this Article shall
provide to the Party or Parties against whose good the action
is taken mutually agreed trade liberalizing compensation in the
form of concessions having substantially equivalent trade
effects or equivalent to the value of the additional duties
expected to result from the action. If the Parties concerned
are unable to agree on compensation, the Party against whose
good the action is taken may take action having trade effects
substantially equivalent to the action taken under paragraph 1
or 3.
Article 803: Administration of Emergency Action Proceedings
1. Each Party shall ensure the consistent, impartial and
reasonable administration of its laws, regulations, decisions
and rulings governing all emergency action proceedings.
2. Each Party shall entrust determinations of serious injury,
or threat thereof, in emergency action proceedings to a
competent investigating authority, subject to review by
judicial or administrative tribunals, to the extent provided by
domestic law. Negative injury determinations shall not be
subject to modification, except by such review. The competent
investigating authority empowered under domestic law to conduct
such proceedings should be provided with the necessary
resources to enable it to fulfill its duties.
3. Each Party shall adopt or maintain equitable, timely,
transparent and effective procedures for emergency action
proceedings, in accordance with the requirements set out in
Annex 803.3.
4. This Article does not apply to emergency actions taken
under Annex 300-B (Textile and Apparel Goods).
Article 804: Dispute Settlement in Emergency Action Matters
No Party may request the establishment of an arbitral
panel under Article 2008 (Request for an Arbitral Panel)
regarding any proposed emergency action.
Article 805: Definitions
For purposes of this Chapter:
competent investigating authority means the "competent
investigating authority" of a Party as defined in Annex 805;
contribute importantly means an important cause, but not
necessarily the most important cause;
critical circumstances means circumstances where delay would
cause damage that would be difficult to repair;
domestic industry means the producers as a whole of the like or
directly competitive good operating in the territory of a
Party;
emergency action does not include any emergency action pursuant
to a proceeding instituted prior to January 1, 1994;
good originating in the territory of a Party means an
originating good, except that in determining the Party in whose
territory that good originates, the relevant rules of Annex
302.2 shall apply;
serious injury means a significant overall impairment of a
domestic industry;
surge means a significant increase in imports over the trend
for a recent representative base period;
threat of serious injury means serious injury that, on the
basis of facts and not merely on allegation, conjecture or
remote possibility, is clearly imminent; and
transition period means the 10-year period beginning on January
1, 1994, except where the good against which the action is
taken is provided for in the items in staging category C+ of
the Schedule to Annex 302.2 of the Party taking the action, in
which case the transition period shall be the period of staged
tariff elimination for that good.
Annex 801.1
Bilateral Actions
1. Notwithstanding Article 801, bilateral emergency actions
between Canada and the United States on goods originating in
the territory of either Party, other than goods covered by
Annex 300-B (Textile and Apparel Goods), shall be governed in
accordance with the terms of Article 1101 of the Canada -
United States Free Trade Agreement, which is hereby
incorporated into and made a part of this Agreement for such
purpose.
2. For such purposes, "good originating in the territory of
one Party" means "good originating in the territory of a Party"
as defined in Article 805.
Annex 803.3
Administration of Emergency Action Proceedings
Institution of a Proceeding
1. An emergency action proceeding may be instituted by a
petition or complaint by entities specified in domestic law.
The entity filing the petition or complaint shall demonstrate
that it is representative of the domestic industry producing a
good like or directly competitive with the imported good.
2. A Party may institute a proceeding on its own motion or
request the competent investigating authority to conduct a
proceeding.
Contents of a Petition or Complaint
3. Where the basis for an investigation is a petition or
complaint filed by an entity representative of a domestic
industry, the petitioning entity shall, in its petition or
complaint, provide the following information to the extent that
such information is publicly available from governmental or
other sources, or best estimates and the basis therefor if such
information is not available:
(a) product description - the name and description of the
imported good concerned, the tariff subheading under
which that good is classified, its current tariff
treatment and the name and description of the like or
directly competitive domestic good concerned;
(b) representativeness -
(i) the names and addresses of the entities filing
the petition or complaint, and the locations of
the establishments in which they produce the
domestic good,
(ii) the percentage of domestic production of the
like or directly competitive good that such
entities account for and the basis for claiming
that they are representative of an industry, and
(iii) the names and locations of all other
domestic establishments in which the like
or directly competitive good is produced;
Annex 803.3
(c) import data - import data for each of the five most
recent full years that form the basis of the claim
that the good concerned is being imported in
increased quantities, either in absolute terms or
relative to domestic production as appropriate;
(d) domestic production data - data on total domestic
production of the like or directly competitive good
for each of the five most recent full years;
(e) data showing injury - quantitative and objective data
indicating the nature and extent of injury to the
concerned industry, such as data showing changes in
the level of sales, prices, production, productivity,
capacity utilization, market share, profits and
losses, and employment;
(f) cause of injury - an enumeration and description of
the alleged causes of the injury, or threat thereof,
and a summary of the basis for the assertion that
increased imports, either actual or relative to
domestic production, of the imported good are causing
or threatening to cause serious injury, supported by
pertinent data; and
(g) criteria for inclusion - quantitative and objective
data indicating the share of imports accounted for by
imports from the territory of each other Party and
the petitioner's views on the extent to which such
imports are contributing importantly to the serious
injury, or threat thereof, caused by imports of that
good.
4. Petitions or complaints, except to the extent that they
contain confidential business information, shall promptly be
made available for public inspection on being filed.
Notice Requirement
5. On instituting an emergency action proceeding, the
competent investigating authority shall publish notice of the
institution of the proceeding in the official journal of the
Party. The notice shall identify the petitioner or other
requester, the imported good that is the subject of the
proceeding and its tariff subheading, the nature and timing of
the determination to be made, the time and place of the public
hearing, dates of deadlines for filing briefs, statements and
other documents, the place at which the petition and any other
Annex 803.3
documents filed in the course of the proceeding may be
inspected, and the name, address and telephone number of the
office to be contacted for more information.
6. With respect to an emergency action proceeding instituted
on the basis of a petition or complaint filed by an entity
asserting that it is representative of the domestic industry,
the competent investigating authority shall not publish the
notice required by paragraph 5 without first assessing
carefully that the petition or complaint meets the requirements
of paragraph 3, including representativeness.
Public Hearing
7. In the course of each proceeding, the competent
investigating authority shall:
(a) hold a public hearing, after providing reasonable
notice, to allow all interested parties, and any
association whose purpose is to represent the
interests of consumers in the territory of the Party
instituting the proceeding, to appear in person or by
counsel, to present evidence and to be heard on the
questions of serious injury, or threat thereof, and
the appropriate remedy; and
(b) provide an opportunity to all interested parties and
any such association appearing at the hearing to
cross-question interested parties making
presentations at that hearing.
Confidential Information
8. The competent investigating authority shall adopt or
maintain procedures for the treatment of confidential
information, protected under domestic law, that is provided in
the course of a proceeding, including a requirement that
interested parties and consumer associations providing such
information furnish non-confidential written summaries thereof,
or where they indicate that the information cannot be
summarized, the reasons why a summary cannot be provided.
Evidence of Injury and Causation
9. In conducting its proceeding the competent investigating
authority shall gather, to the best of its ability, all
relevant information appropriate to the determination it must
make. It shall evaluate all relevant factors of an objective
Annex 803.3
and quantifiable nature having a bearing on the situation of
that industry, including the rate and amount of the increase in
imports of the good concerned, in absolute and relative terms
as appropriate, the share of the domestic market taken by
increased imports, and changes in the level of sales,
production, productivity, capacity utilization, profits and
losses, and employment. In making its determination, the
competent investigating authority may also consider other
economic factors, such as changes in prices and inventories,
and the ability of firms in the industry to generate capital.
10. The competent investigating authority shall not make an
affirmative injury determination unless its investigation
demonstrates, on the basis of objective evidence, the existence
of a clear causal link between increased imports of the good
concerned and serious injury, or threat thereof. Where factors
other than increased imports are causing injury to the domestic
industry at the same time, such injury shall not be attributed
to increased imports.
Deliberation and Report
11. Except in critical circumstances and in global actions
involving perishable agricultural goods, the competent
investigating authority, before making an affirmative
determination in an emergency action proceeding, shall allow
sufficient time to gather and consider the relevant
information, hold a public hearing and provide an opportunity
for all interested parties and consumer associations to prepare
and submit their views.
12. The competent investigating authority shall publish
promptly a report, including a summary thereof in the official
journal of the Party, setting out its findings and reasoned
conclusions on all pertinent issues of law and fact. The
report shall describe the imported good and its tariff item
number, the standard applied and the finding made. The
statement of reasons shall set out the basis for the
determination, including a description of:
(a) the domestic industry seriously injured or threatened
with serious injury;
(b) information supporting a finding that imports are
increasing, the domestic industry is seriously
injured or threatened with serious injury, and
increasing imports are causing or threatening serious
injury; and
Annex 803.3
(c) if provided for by domestic law, any finding or
recommendation regarding the appropriate remedy and
the basis therefor.
13. In its report, the competent investigating authority shall
not disclose any confidential information provided pursuant to
any undertaking concerning confidential information that may
have been made in the course of the proceedings.
Annex 805
Country-Specific Definitions
For purposes of this Chapter:
competent investigating authority means:
(a) in the case of Canada, the Canadian International
Trade Tribunal, or its successor;
(b) in the case of the Mexico, the designated authority
within the Ministry of Trade and Industrial
Development ("Secretar a de Comercio y Fomento
Industrial"), or its successor; and
(c) in the case of the United States, the U.S.
International Trade Commission, or its successor.
Title:Technical Barriers to Trade -- CHapter Nine
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:54694
PART THREE
TECHNICAL BARRIERS TO TRADE
Chapter Nine
Standards-Related Measures
Article 901: Scope and Coverage
1. This Chapter applies to standards-related measures of a
Party, other than those covered by Section B of Chapter Seven
(Sanitary and Phytosanitary Measures), that may, directly or
indirectly, affect trade in goods or services between the
Parties, and to measures of the Parties relating to such
measures.
2. Technical specifications prepared by governmental bodies
for production or consumption requirements of such bodies shall
be governed exclusively by Chapter Ten (Government
Procurement).
Article 902: Extent of Obligations
1. Article 105 (Extent of Obligations) does not apply to this
Chapter.
2. Each Party shall seek, through appropriate measures, to
ensure observance of Articles 904 through 908 by state or
provincial governments and by non-governmental standardizing
bodies in its territory.
Article 903: Affirmation of Agreement on Technical Barriers
to Trade and Other Agreements
Further to Article 103 (Relation to Other Agreements), the
Parties affirm with respect to each other their existing rights
and obligations relating to standards-related measures under
the GATT Agreement on Technical Barriers to Trade and all other
international agreements, including environmental and
conservation agreements, to which those Parties are party.
Article 904: Basic Rights and Obligations
Right to Take Standards-Related Measures
1. Each Party may, in accordance with this Agreement, adopt,
maintain or apply any standards-related measure, including any
such measure relating to safety, the protection of human,
animal or plant life or health, the environment or consumers,
and any measure to ensure its enforcement or implementation.
Such measures include those to prohibit the importation of a
good of another Party or the provision of a service by a
service provider of another Party that fails to comply with the
applicable requirements of those measures or to complete the
Party's approval procedures.
Right to Establish Level of Protection
2. Notwithstanding any other provision of this Chapter, each
Party may, in pursuing its legitimate objectives of safety or
the protection of human, animal or plant life or health, the
environment or consumers, establish the levels of protection
that it considers appropriate in accordance with Article
907(2).
Non-Discriminatory Treatment
3. Each Party shall, in respect of its standards-related
measures, accord to goods and service providers of another
Party:
(a) national treatment in accordance with Article 301
(Market Access) or Article 1202 (Cross-Border Trade
in Services); and
(b) treatment no less favorable than that it accords to
like goods, or in like circumstances to service
providers, of any other country.
Unnecessary Obstacles
4. No Party may prepare, adopt, maintain or apply any
standards-related measure with a view to or with the effect of
creating an unnecessary obstacle to trade between the Parties.
An unnecessary obstacle to trade shall not be deemed to be
created where:
(a) the demonstrable purpose of the measure is to achieve
a legitimate objective; and
(b) the measure does not operate to exclude goods of
another Party that meet that legitimate objective.
Article 905: Use of International Standards
1. Each Party shall use, as a basis for its standards-related
measures, relevant international standards or international
standards whose completion is imminent, except where such
standards would be an ineffective or inappropriate means to
fulfill its legitimate objectives, for example because of
fundamental climatic, geographical, technological or
infrastructural factors, scientific justification or the level
of protection that the Party considers appropriate.
2. A Party's standards-related measure that conforms to an
international standard shall be presumed to be consistent with
Article 904(3) and (4).
3. Nothing in paragraph 1 shall be construed to prevent a
Party, in pursuing its legitimate objectives, from adopting,
maintaining or applying any standards-related measure that
results in a higher level of protection than would be achieved
if the measure were based on the relevant international
standard.
Article 906: Compatibility and Equivalence
1. Recognizing the crucial role of standards-related measures
in achieving legitimate objectives, the Parties shall, in
accordance with this Chapter, work jointly to enhance the level
of safety and of protection of human, animal and plant life and
health, the environment and consumers.
2. Without reducing the level of safety or of protection of
human, animal or plant life or health, the environment or
consumers, without prejudice to the rights of any Party under
this Chapter, and taking into account international
standardization activities, the Parties shall, to the greatest
extent practicable, make compatible their respective standards-
related measures, so as to facilitate trade in a good or
service between the Parties.
3. Further to Articles 902 and 905, a Party shall, on request
of another Party, seek, through appropriate measures, to
promote the compatibility of a specific standard or conformity
assessment procedure that is maintained in its territory with
the standards or conformity assessment procedures maintained in
the territory of the other Party.
4. Each importing Party shall treat a technical regulation
adopted or maintained by an exporting Party as equivalent to
its own where the exporting Party, in cooperation with the
importing Party, demonstrates to the satisfaction of the
importing Party that its technical regulation adequately
fulfills the importing Party's legitimate objectives.
5. The importing Party shall provide to the exporting Party,
on request, its reasons in writing for not treating a technical
regulation as equivalent under paragraph 4.
6. Each Party shall, wherever possible, accept the results of
a conformity assessment procedure conducted in the territory of
another Party, provided that it is satisfied that the procedure
offers an assurance, equivalent to that provided by a procedure
it conducts or a procedure conducted in its territory the
results of which it accepts, that the relevant good or service
complies with the applicable technical regulation or standard
adopted or maintained in the Party's territory.
7. Prior to accepting the results of a conformity assessment
procedure pursuant to paragraph 6, and to enhance confidence in
the continued reliability of each other's conformity assessment
results, the Parties may consult on such matters as the
technical competence of the conformity assessment bodies
involved, including verified compliance with relevant
international standards through such means as accreditation.
Article 907: Assessment of Risk
1. A Party may, in pursuing its legitimate objectives,
conduct an assessment of risk. In conducting an assessment, a
Party may take into account, among other factors relating to a
good or service:
(a) available scientific evidence or technical
information;
(b) intended end uses;
(c) processes or production, operating, inspection,
sampling or testing methods; or
(d) environmental conditions.
2. Where pursuant to Article 904(2) a Party establishes a
level of protection that it considers appropriate and conducts
an assessment of risk, it should avoid arbitrary or
unjustifiable distinctions between similar goods or services in
the level of protection it considers appropriate, where the
distinctions:
(a) result in arbitrary or unjustifiable discrimination
against goods or service providers of another Party;
(b) constitute a disguised restriction on trade between
the Parties; or
(c) discriminate between similar goods or services for
the same use under the same conditions that pose the
same level of risk and provide similar benefits.
3. Where a Party conducting an assessment of risk determines
that available scientific evidence or other information is
insufficient to complete the assessment, it may adopt a
provisional technical regulation on the basis of available
relevant information. The Party shall, within a reasonable
period after information sufficient to complete the assessment
of risk is presented to it, complete its assessment, review
and, where appropriate, revise the provisional technical
regulation in the light of that assessment.
Article 908: Conformity Assessment
1. The Parties shall, further to Article 906 and recognizing
the existence of substantial differences in the structure,
organization and operation of conformity assessment procedures
in their respective territories, make compatible those
procedures to the greatest extent practicable.
2. Recognizing that it should be to the mutual advantage of
the Parties concerned and except as set out in Annex 908.2,
each Party shall accredit, approve, license or otherwise
recognize conformity assessment bodies in the territory of
another Party on terms no less favorable than those accorded to
conformity assessment bodies in its territory.
3. Each Party shall, with respect to its conformity
assessment procedures:
(a) not adopt or maintain any such procedure that is
stricter, nor apply the procedure more strictly, than
necessary to give it confidence that a good or a
service conforms with an applicable technical
regulation or standard, taking into account the risks
that non-conformity would create;
(b) initiate and complete the procedure as expeditiously
as possible;
(c) in accordance with Article 904(3), undertake
processing of applications in non-discriminatory
order;
(d) publish the normal processing period for each such
procedure or communicate the anticipated processing
period to an applicant on request;
(e) ensure that the competent body
(i) on receipt of an application, promptly examines
the completeness of the documentation and
informs the applicant in a precise and complete
manner of any deficiency,
(ii) transmits to the applicant as soon as possible
the results of the conformity assessment
procedure in a form that is precise and complete
so that the applicant may take any necessary
corrective action,
(iii) where the application is deficient,
proceeds as far as practicable with the
procedure where the applicant so requests,
and
(iv) informs the applicant, on request, of the status
of the application and the reasons for any
delay;
(f) limit the information the applicant is required to
supply to that necessary to conduct the procedure and
to determine appropriate fees;
(g) accord confidential or proprietary information
arising from, or supplied in connection with, the
conduct of the procedure for a good of another Party
or for a service provided by a person of another
Party
(i) the same treatment as that for a good of the
Party or a service provided by a person of the
Party, and
(ii) in any event, treatment that protects an
applicant's legitimate commercial interests to
the extent provided under the Party's law;
(h) ensure that any fee it imposes for conducting the
procedure is no higher for a good of another Party or
a service provider of another Party than is equitable
in relation to any such fee imposed for its like
goods or service providers or for like goods or
service providers of any other country, taking into
account communication, transportation and other
related costs;
(i) ensure that the location of facilities at which a
conformity assessment procedure is conducted does not
cause unnecessary inconvenience to an applicant or
its agent;
(j) limit the procedure, for a good or service modified
subsequent to a determination that the good or
service conforms to the applicable technical
regulation or standard, to that necessary to
determine that the good or service continues to
conform to the technical regulation or standard; and
(k) limit any requirement regarding samples of a good to
that which is reasonable, and ensure that the
selection of samples does not cause unnecessary
inconvenience to an applicant or its agent.
4. Each Party shall apply, with such modifications as may be
necessary, the relevant provisions of paragraph 3 to its
approval procedures.
5. Each Party shall, on request of another Party, take such
reasonable measures as may be available to it to facilitate
access in its territory for conformity assessment activities.
6. Each Party shall give sympathetic consideration to a
request by another Party to negotiate agreements for the mutual
recognition of the results of that other Party's conformity
assessment procedures.
Article 909: Notification, Publication, and Provision of
Information
1. Further to Articles 1802 (Publication) and 1803
(Notification and Provision of Information), each Party
proposing to adopt or modify a technical regulation shall:
(a) at least 60 days prior to the adoption or
modification of the measure, other than a law,
publish a notice and notify in writing the other
Parties of the proposed measure in such a manner as
to enable interested persons to become acquainted
with the proposed measure, except that in the case of
any such measure relating to perishable goods, each
Party shall, to the greatest extent practicable,
publish the notice and provide the notification at
least 30 days prior to the adoption or modification
of the measure, but no later than when notification
is provided to domestic producers;
(b) identify in the notice and notification the good or
service to which the measure would apply, and shall
provide a brief description of the objective of, and
reasons for the measure;
(c) provide a copy of the proposed measure to any Party
or interested person that so requests, and shall,
wherever possible, identify any provision that
deviates in substance from relevant international
standards; and
(d) without discrimination, allow other Parties and
interested persons to make comments in writing and
shall, on request, discuss the comments and take the
comments and the results of the discussions into
account.
2. Each Party proposing to adopt or modify a standard or any
conformity assessment procedure not otherwise considered to be
a technical regulation shall, where an international standard
relevant to the proposed measure does not exist or such measure
is not substantially the same as an international standard, and
where the measure may have a significant effect on the trade of
the other Parties:
(a) at an early appropriate stage, publish a notice and
provide a notification of the type required in
paragraph 1(a) and (b); and
(b) observe paragraph 1(c) and (d).
3. Each Party shall seek, through appropriate measures, to
ensure, with respect to a technical regulation of a state or
provincial government other than a local government:
(a) that, at an early appropriate stage, a notice and
notification of the type required under paragraph
1(a) and (b) are made prior to their adoption; and
(b) observance of paragraph 1(c) and (d).
4. Where a Party considers it necessary to address an urgent
problem relating to safety or to protection of human, animal or
plant life or health, the environment or consumers, it may omit
any step set out in paragraph 1 or 3, provided that on adoption
of a standards-related measure it shall:
(a) immediately provide to the other Parties a
notification of the type required under paragraph
1(b), including a brief description of the urgent
problem;
(b) provide a copy of the measure to any Party or
interested person that so requests; and
(c) without discrimination, allow other Parties and
interested persons to make comments in writing, and
shall, on request, discuss the comments and take the
comments and the results of the discussions into
account.
5. Each Party shall, except where necessary to address an
urgent problem referred to in paragraph 4, allow a reasonable
period between the publication of a standards-related measure
and the date that it becomes effective to allow time for
interested persons to adapt to the measure.
6. Where a Party allows non-governmental persons in its
territory to be present during the process of development of
standards-related measures, it shall also allow non-
governmental persons from the territories of the other Parties
to be present.
7. Each Party shall notify the other Parties of the
development of, amendment to, or change in the application of
its standards-related measures no later than the time at which
it notifies non-governmental persons in general or the relevant
sector in its territory.
8. Each Party shall seek, through appropriate measures, to
ensure the observance of paragraphs 6 and 7 by a state or
provincial government, and by non-governmental standardizing
bodies in its territory.
9. Each Party shall designate by January 1, 1994 a government
authority responsible for the implementation at the federal
level of the notification provisions of this Article, and shall
notify the other Parties thereof. Where a Party designates two
or more government authorities for that purpose, it shall
provide to the other Parties complete and unambiguous
information on the scope of responsibility of each such
authority.
Article 910: Inquiry Points
1. Each Party shall ensure that there is an inquiry point
that is able to answer all reasonable inquiries from other
Parties and interested persons, and to provide relevant
documents regarding:
(a) any standards-related measure proposed, adopted or
maintained in its territory at the federal, state or
provincial government level;
(b) the membership and participation of the Party, or its
relevant federal, state or provincial government
authorities, in international and regional
standardizing bodies and conformity assessment
systems, and in bilateral and multilateral
arrangements regarding standards-related measures,
and the provisions of those systems and arrangements;
(c) the location of notices published pursuant to Article
909, or where the information can be obtained;
(d) the location of the inquiry points referred to in
paragraph 3; and
(e) the Party's procedures for assessment of risk, and
factors it considers in conducting the assessment and
in establishing, pursuant to Article 904(2), the
levels of protection that it considers appropriate.
2. Where a Party designates more than one inquiry point, it
shall:
(a) provide to the other Parties complete and unambiguous
information on the scope of responsibility of each
inquiry point; and
(b) ensure that any inquiry addressed to an incorrect
inquiry point is promptly conveyed to the correct
inquiry point.
3. Each Party shall take such reasonable measures as may be
available to it to ensure that there is at least one inquiry
point that is able to answer all reasonable inquiries from
other Parties and interested persons and to provide relevant
documents or information as to where they can be obtained
regarding:
(a) any standard or conformity assessment procedure
proposed, adopted or maintained by non-governmental
standardizing bodies in its territory; and
(b) the membership and participation of relevant non-
governmental bodies in its territory in international
and regional standardizing bodies and conformity
assessment systems.
4. Each Party shall ensure that where copies of documents are
requested by another Party or by interested persons in
accordance with this Chapter, they are supplied at the same
price, apart from the actual cost of delivery, as the price for
domestic purchase.
Article 911: Technical Cooperation
1. Each Party shall, on request of another Party:
(a) provide to that Party technical advice, information
and assistance on mutually agreed terms and
conditions to enhance that Party's standards-related
measures, and related activities, processes and
systems;
(b) provide to that Party information on its technical
cooperation programs regarding standards-related
measures relating to specific areas of interest; and
(c) consult with that Party during the development of, or
prior to the adoption or change in the application
of, any standards-related measure.
2. Each Party shall encourage standardizing bodies in its
territory to cooperate with the standardizing bodies in the
territories of the other Parties in their participation, as
appropriate, in standardizing activities, such as through
membership in international standardizing bodies.
Article 912: Limitations on the Provision of Information
Nothing in this Chapter shall be construed to require a
Party to:
(a) communicate, publish texts, or provide particulars or
copies of documents other than in an official
language of the Party; or
(b) furnish any information the disclosure of which would
impede law enforcement or otherwise be contrary to
the public interest, or would prejudice the
legitimate commercial interests of particular
enterprises.
Article 913: Committee on Standards-Related Measures
1. The Parties hereby establish a Committee on Standards-
Related Measures, comprising representatives of each Party.
2. The Committee's functions shall include:
(a) monitoring the implementation and administration of
this Chapter, including the progress of the
subcommittees and working groups established under
paragraph 4, and the operation of the inquiry points
established under Article 910;
(b) facilitating the process by which the Parties make
compatible their standards-related measures;
(c) providing a forum for the Parties to consult on
issues relating to standards-related measures,
including the provision of technical advice and
recommendations under Article 914;
(d) enhancing cooperation on the development, application
and enforcement of standards-related measures; and
(e) considering non-governmental, regional and
multilateral developments regarding standards-related
measures, including under the GATT.
3. The Committee shall:
(a) meet on request of any Party and, unless the Parties
otherwise agree, at least once each year; and
(b) report annually to the Commission on the
implementation of this Chapter.
4. The Committee may, as it considers appropriate, establish
and determine the scope and mandate of subcommittees or working
groups, comprising representatives of each Party. Each
subcommittee or working group may:
(a) as it considers necessary or desirable, include or
consult with
(i) representatives of non-governmental bodies,
including standardizing bodies,
(ii) scientists, and
(iii) technical experts; and
(b) determine its work program, taking into account
relevant international activities.
5. Further to paragraph 4, the Committee shall establish:
(a) the following subcommittees
(i) Land Transportation Standards Subcommittee, in
accordance with Annex 913.5.a-1,
(ii) Telecommunications Standards Subcommittee, in
accordance with Annex 913.5.a-2,
(iii) Automotive Standards Council, in accordance
with Annex 913.5.a-3, and
(iv) Subcommittee on Labelling of Textile and Apparel
Goods, in accordance with Annex 913.5.a-4; and
(b) such other subcommittees or working groups as it
considers appropriate to address any topic,
including:
(i) identification and nomenclature for goods
subject to standards-related measures,
(ii) quality and identity standards and
technical regulations,
(iii) packaging, labelling and presentation
of consumer information, including
languages, measurement systems,
ingredients, sizes, terminology,
symbols and related matters,
(iv) product approval and post-market
surveillance programs,
(v) principles for the accreditation and
recognition of conformity assessment
bodies, procedures and systems,
(vi) development and implementation of a uniform
chemical hazard classification and
communication system,
(vii) enforcement programs, including
training and inspections by
regulatory, analytical and enforcement
personnel,
(viii) promotion and implementation of good
laboratory practices,
(ix) promotion and implementation of good
manufacturing practices,
(x) criteria for assessment of potential
environmental hazards of goods,
(xi) methodologies for assessment of risk,
(xii) guidelines for testing of chemicals,
including industrial and agricultural
chemicals, pharmaceuticals and
biologicals,
(xiii) methods by which consumer protection,
including matters relating to consumer
redress, can be facilitated, and
(xiv) extension of the application of this
Chapter to other services.
6. Each Party shall, on request of another Party, take such
reasonable measures as may be available to it to provide for
the participation in the activities of the Committee, where and
as appropriate, of representatives of state or provincial
governments.
7. A Party requesting technical advice, information or
assistance pursuant to Article 911 shall notify the Committee
which shall facilitate any such request.
Article 914: Technical Consultations
1. Where a Party requests consultations regarding the
application of this Chapter to a standards-related measure, and
so notifies the Committee, the Committee may facilitate the
consultations, if it does not consider the matter itself, by
referring the matter for non-binding technical advice or
recommendations to a subcommittee or working group, including
an ad hoc subcommittee or working group, or to another forum.
2. The Committee should consider any matter referred to it
under paragraph 1 as expeditiously as possible and promptly
forward to the Parties any technical advice or recommendations
that it develops or receives concerning the matter. The
Parties involved shall provide a written response to the
Committee concerning the technical advice or recommendations
within such time as the Committee may request.
3. Where the involved Parties have had recourse to
consultations facilitated by the Committee under paragraph 1,
the consultations shall, on the agreement of the Parties
involved, constitute consultations under Article 2006
(Consultations).
4. The Parties confirm that a Party asserting that a
standards-related measure of another Party is inconsistent with
this Chapter shall have the burden of establishing the
inconsistency.
Article 915: Definitions
1. For purposes of this Chapter:
approval procedure means any registration, notification or
other mandatory administrative procedure for granting
permission for a good or service to be produced, marketed or
used for a stated purpose or under stated conditions;
assessment of risk means evaluation of the potential for
adverse effects;
conformity assessment procedure means any procedure used,
directly or indirectly, to determine that a technical
regulation or standard is fulfilled, including sampling,
testing, inspection, evaluation, verification, monitoring,
auditing, assurance of conformity, accreditation, registration
or approval used for such a purpose, but does not mean an
approval procedure;
international standard means a standards-related measure, or
other guide or recommendation, adopted by an international
standardizing body and made available to the public;
international standardizing body means a standardizing body
whose membership is open to the relevant bodies of at least all
the parties to the GATT Agreement on Technical Barriers to
Trade, including the International Organization for
Standardization (ISO), the International Electrotechnical
Commission (IEC), Codex Alimentarius Commission, the World
Health Organization (WHO), the Food and Agriculture
Organization (FAO), the International Telecommunication Union
(ITU); or any other body that the Parties designate;
land transportation service means a transportation service
provided by means of motor carrier or rail;
legitimate objective includes an objective such as:
(a) safety,
(b) protection of human, animal or plant life or health,
the environment or consumers, including matters
relating to quality and identifiability of goods or
services, and
(c) sustainable development,
considering, among other things, where appropriate, fundamental
climatic or other geographical factors, technological or
infrastructural factors, or scientific justification but does
not include the protection of domestic production;
make compatible means bring different standards-related
measures of the same scope approved by different standardizing
bodies to a level such that they are either identical,
equivalent or have the effect of permitting goods or services
to be used in place of one another or fulfill the same purpose;
services means land transportation services and
telecommunications services;
standard means a document, approved by a recognized body, that
provides, for common and repeated use, rules, guidelines or
characteristics for goods or related processes and production
methods, or for services or related operating methods, with
which compliance is not mandatory. It may also include or deal
exclusively with terminology, symbols, packaging, marking or
labelling requirements as they apply to a good, process, or
production or operating method;
standardizing body means a body having recognized activities in
standardization;
standards-related measure means a standard, technical
regulation or conformity assessment procedure;
technical regulation means a document which lays down goods
characteristics or their related processes and production
methods, or services characteristics or their related operating
methods, including the applicable administrative provisions,
with which compliance is mandatory. It may also include or
deal exclusively with terminology, symbols, packaging, marking
or labelling requirements as they apply to a good, process, or
production or operating method; and
telecommunications service means a service provided by means of
the transmission and reception of signals by any
electromagnetic means, but does not mean the cable, broadcast
or other electromagnetic distribution of radio or television
programming to the public generally.
2. Except as they are otherwise defined in this Agreement,
other terms in this Chapter shall be interpreted in accordance
with their ordinary meaning in context and in the light of the
objectives of this Agreement, and where appropriate by
reference to the terms presented in the sixth edition of the
ISO/IEC Guide 2: 1991, General Terms and Their Definitions
Concerning Standardization and Related Activities.
Annex 908.2
Transitional Rules for Conformity Assessment Procedures
1. Except in respect of governmental conformity assessment
bodies, Article 908(2) shall impose no obligation and confer no
right on Mexico until four years after the date of entry into
force of this Agreement.
2. Where a Party charges a reasonable fee, limited in amount
to the approximate cost of the service rendered, to accredit,
approve, license or otherwise recognize a conformity assessment
body in the territory of another Party, it need not, prior to
December 31, 1998 or such earlier date as the Parties may
agree, charge such a fee to a conformity assessment body in its
territory.
Annex 913.5.a-1
Land Transportation Standards Subcommittee
1. The Land Transportation Standards Subcommittee,
established under Article 913(5)(a)(i), shall comprise
representatives of each Party.
2. The Subcommittee shall implement the following work
program for making compatible the Parties' relevant standards-
related measures for:
(a) bus and truck operations
(i) no later than one and one-half years after the
date of entry into force of this Agreement, for
non-medical standards-related measures
respecting drivers, including measures relating
to the age of and language used by drivers,
(ii) no later than two and one-half years after the
date of entry into force of this Agreement, for
medical standards-related measures respecting
drivers,
(iii) no later than three years after the date of
entry into force of this Agreement, for
standards-related measures respecting
vehicles, including measures relating to
weights and dimensions, tires, brakes,
parts and accessories, securement of cargo,
maintenance and repair, inspections, and
emissions and environmental pollution
levels not covered by the Automotive
Standards Council's work program
established under Annex 913.5.a-3,
(iv) no later than three years after the date of
entry into force of this Agreement, for
standards-related measures respecting each
Party's supervision of motor carriers' safety
compliance, and
(v) no later than three years after the date of
entry into force of this Agreement, for
standards-related measures respecting road
signs;
Annex 913.5.a-1
(b) rail operations
(i) no later than one year after the date of entry
into force of this Agreement, for standards-
related measures respecting operating personnel
that are relevant to cross-border operations,
and
(ii) no later than one year after the date of entry
into force of this Agreement, for standards-
related measures respecting locomotives and
other rail equipment; and
(c) transportation of dangerous goods, no later than six
years after the date of entry into force of this
Agreement, using as their basis the United Nations
Recommendations on the Transport of Dangerous Goods,
or such other standards as the Parties may agree.
3. The Subcommittee may address other related standards-
related measures as it considers appropriate.
Annex 913.5.a-2
Telecommunications Standards Subcommittee
1. The Telecommunications Standards Subcommittee, established
under Article 913(5)(a)(ii), shall comprise representatives of
each Party.
2. The Subcommittee shall, within six months of the date of
entry into force of this Agreement, develop a work program,
including a timetable, for making compatible, to the greatest
extent practicable, the standards-related measures of the
Parties for authorized equipment as defined in Chapter Thirteen
(Telecommunications).
3. The Subcommittee may address other appropriate standards-
related matters respecting telecommunications equipment or
services and such other matters as it considers appropriate.
4. The Subcommittee shall take into account relevant work
carried out by the Parties in other forums, and that of non-
governmental standardizing bodies.
Annex 913.5.a-3
Automotive Standards Council
1. The Automotive Standards Council, established under
Article 913.5(a)(iii), shall comprise representatives of each
Party.
2. The purpose of the Council shall be, to the extent
practicable, to facilitate the attainment of compatibility
among, and review the implementation of, national
standards-related measures of the Parties that apply to
automotive goods, and to address other related matters.
3. To facilitate its objectives, the Council may establish
subgroups, consultation procedures and other appropriate
operational mechanisms. On the agreement of the Parties, the
Council may include state and provincial government or private
sector representatives in its subgroups.
4. Any recommendation of the Council shall require agreement
of the Parties. Where the adoption of a law is not required
for a Party, the Council's recommendations shall be implemented
by the Party within a reasonable time in accordance with the
legal and procedural requirements and international obligations
of the Party. Where the adoption of a law is required for a
Party, the Party shall use its best efforts to secure the
adoption of the law and shall implement any such law within a
reasonable time.
5. Recognizing the existing disparity in standards-related
measures of the Parties, the Council shall develop a work
program for making compatible the national standards-related
measures that apply to automotive goods and other related
matters based on the following criteria:
(a) the impact on industry integration;
(b) the extent of the barriers to trade;
(c) the level of trade affected; and
(d) the extent of the disparity.
In developing its work program, the Council may address other
related matters, including emissions from on-road and non-road
mobile sources.
Annex 913.5.a-3
6. Each Party shall take such reasonable measures as may be
available to it to promote the objectives of this Annex with
respect to standards-related measures that are maintained by
state and provincial government authorities and private sector
organizations. The Council shall make every effort to assist
these entities with such activities, especially the
identification of priorities and the establishment of work
schedules.
Annex 913.5.a-4
Subcommittee on Labelling of Textile and Apparel Goods
1. The Subcommittee on Labelling of Textile and Apparel
Goods, established under Article 913(5)(a)(iv), shall comprise
representatives of each Party.
2. The Subcommittee shall include, and consult with,
technical experts as well as a broadly representative group
from the manufacturing and retailing sectors in the territory
of each Party.
3. The Subcommittee shall develop and pursue a work program
on the harmonization of labelling requirements to facilitate
trade in textile and apparel goods between the Parties through
the adoption of uniform labelling provisions. The work program
should include the following matters:
(a) pictograms and symbols to replace, where possible,
required written information, as well as other
methods to reduce the need for labels on textile and
apparel goods in multiple languages;
(b) care instructions for textile and apparel goods;
(c) fiber content information for textile and apparel
goods;
(d) uniform methods acceptable for the attachment of
required information to textile and apparel goods;
and
(e) use in the territory of the other Parties of each
Party's national registration numbers for
manufacturers or importers of textile and apparel
goods.
Title:Government Procurement -- Chapter ten
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:196086
PART FOUR
GOVERNMENT PROCUREMENT
Chapter Ten
Government Procurement
Section A - Scope and Coverage
and National Treatment
Article 1001: Scope and Coverage
1. This Chapter applies to measures adopted or maintained by
a Party relating to procurement:
(a) by a federal government entity set out in Annex
1001.1a-1, a government enterprise set out in Annex
1001.1a-2, or a state or provincial government entity
set out in Annex 1001.1a-3 in accordance with Article
1024;
(b) of goods in accordance with Annex 1001.1b-1, services
in accordance with Annex 1001.1b-2, or construction
services in accordance with Annex 1001.1b-3; and
(c) where the value of the contract to be awarded is
estimated to be equal to or greater than a threshold,
calculated and adjusted according to the U.S.
inflation rate as set out in Annex 1001.1c, of
(i) for federal government entities, US$50,000 for
contracts for goods, services or any combination
thereof, and US$6.5 million for contracts for
construction services,
(ii) for government enterprises, US$250,000 for
contracts for goods, services or any combination
thereof, and US$8.0 million for contracts for
construction services, and
(iii) for state and provincial government
entities, the applicable threshold, as set
out in Annex 1001.1a-3 in accordance with
Article 1024.
2. Paragraph 1 is subject to:
(a) the transitional provisions set out in Annex 1001.2a;
(b) the General Notes set out in Annex 1001.2b; and
(c) Annex 1001.2c, for the Parties specified therein.
3. Subject to paragraph 4, where a contract to be awarded by
an entity is not covered by this Chapter, this Chapter shall
not be construed to cover any good or service component of that
contract.
4. No Party may prepare, design or otherwise structure any
procurement contract in order to avoid the obligations of this
Chapter.
5. Procurement includes procurement by such methods as
purchase, lease or rental, with or without an option to buy.
Procurement does not include:
(a) non-contractual agreements or any form of government
assistance, including cooperative agreements, grants,
loans, equity infusions, guarantees, fiscal
incentives, and government provision of goods and
services to persons or state, provincial and regional
governments; and
(b) the acquisition of fiscal agency or depository
services, liquidation and management services for
regulated financial institutions and sale and
distribution services for government debt.
Article 1002: Valuation of Contracts
1. Each Party shall ensure that its entities, in determining
whether a contract is covered by this Chapter, apply paragraphs
2 through 7 in calculating the value of that contract.
2. The value of a contract shall be estimated as at the time
of publication of a notice in accordance with Article 1010.
3. In calculating the value of a contract, an entity shall
take into account all forms of remuneration, including
premiums, fees, commissions and interest.
4. Further to Article 1001(4), an entity may not select a
valuation method, or divide procurement requirements into
separate contracts, to avoid the obligations of this Chapter.
5. Where an individual requirement for a procurement results
in the award of more than one contract, or in contracts being
awarded in separate parts, the basis for valuation shall be
either:
(a) the actual value of similar recurring contracts
concluded over the prior fiscal year or 12 months
adjusted, where possible, for anticipated changes in
quantity and value over the subsequent 12 months; or
(b) the estimated value of recurring contracts in the
fiscal year or 12 months subsequent to the initial
contract.
6. In the case of a contract for lease or rental, with or
without an option to buy, or in the case of a contract that
does not specify a total price, the basis for valuation shall
be:
(a) in the case of a fixed-term contract, where the term
is 12 months or less, the total contract value, for
its duration or, where the term exceeds 12 months,
the total contract value, including the estimated
residual value; or
(b) in the case of a contract for an indefinite period,
the estimated monthly installment multiplied by 48.
If the entity is uncertain as to whether a contract is for a
fixed or an indefinite term, the entity shall calculate the
value of the contract using the method set out in subparagraph
(b).
7. Where tender documentation requires option clauses, the
basis for valuation shall be the total value of the maximum
permissible procurement, including all possible optional
purchases.
Article 1003: National Treatment and Non-Discrimination
1. With respect to measures covered by this Chapter, each
Party shall accord to goods of another Party, to the suppliers
of such goods and to service suppliers of another Party,
treatment no less favorable than the most favorable treatment
that the Party accords to:
(a) its own goods and suppliers; and
(b) goods and suppliers of another Party.
2. With respect to measures covered by this Chapter, no Party
may:
(a) treat a locally established supplier less favorably
than another locally established supplier on the
basis of degree of foreign affiliation or ownership;
or
(b) discriminate against a locally established supplier
on the basis that the goods or services offered by
that supplier for the particular procurement are
goods or services of another Party.
3. Paragraph 1 does not apply to measures respecting customs
duties or other charges of any kind imposed on or in connection
with importation, the method of levying such duties or charges
or other import regulations, including restrictions and
formalities.
Article 1004: Rules of Origin
No Party may apply rules of origin to goods imported from
another Party for purposes of government procurement covered by
this Chapter that are different from or inconsistent with the
rules of origin the Party applies in the normal course of
trade, which may be the Marking Rules established under Annex
311 if they become the rules of origin applied by that Party in
the normal course of its trade.
Article 1005: Denial of Benefits
1. Subject to prior notification and consultation in
accordance with Articles 1803 (Notification and Provision of
Information) and 2006 (Consultations), a Party may deny the
benefits of this Chapter to a service supplier of another Party
where the Party establishes that the service is being provided
by an enterprise that is owned or controlled by persons of a
non-Party and that has no substantial business activities in
the territory of any Party.
2. A Party may deny to an enterprise of another Party the
benefits of this Chapter if nationals of a non-Party own or
control the enterprise and:
(a) the circumstance set out in Article 1113(1)(a)
(Denial of Benefits) is met; or
(b) the denying Party adopts or maintains measures with
respect to the non-Party that prohibit transactions
with the enterprise or that would be violated or
circumvented if the benefits of this Chapter were
accorded to the enterprise.
Article 1006: Prohibition of Offsets
Each Party shall ensure that its entities do not, in the
qualification and selection of suppliers, goods or services, in
the evaluation of bids or the award of contracts, consider,
seek or impose offsets. For purposes of this Article, offsets
means conditions imposed or considered by an entity prior to or
in the course of its procurement process that encourage local
development or improve its Party's balance of payments
accounts, by means of requirements of local content, licensing
of technology, investment, counter-trade or similar
requirements.
Article 1007: Technical Specifications
1. Each Party shall ensure that its entities do not prepare,
adopt or apply any technical specification with the purpose or
the effect of creating unnecessary obstacles to trade.
2. Each Party shall ensure that any technical specification
prescribed by its entities is, where appropriate:
(a) specified in terms of performance criteria rather
than design or descriptive characteristics; and
(b) based on international standards, national technical
regulations, recognized national standards, or
building codes.
3. Each Party shall ensure that the technical specifications
prescribed by its entities do not require or refer to a
particular trademark or name, patent, design or type, specific
origin or producer or supplier unless there is no sufficiently
precise or intelligible way of otherwise describing the
procurement requirements and provided that, in such cases,
words such as "or equivalent" are included in the tender
documentation.
4. Each Party shall ensure that its entities do not seek or
accept, in a manner that would have the effect of precluding
competition, advice that may be used in the preparation or
adoption of any technical specification for a specific
procurement from a person that may have a commercial interest
in that procurement.
Section B - Tendering Procedures
Article 1008: Tendering Procedures
1. Each Party shall ensure that the tendering procedures of
its entities are:
(a) applied in a non-discriminatory manner; and
(b) consistent with this Article and Articles 1009
through 1016.
2. In this regard, each Party shall ensure that its entities:
(a) do not provide to any supplier information with
regard to a specific procurement in a manner that
would have the effect of precluding competition; and
(b) provide all suppliers equal access to information
with respect to a procurement during the period prior
to the issuance of any notice or tender
documentation.
Article 1009: Qualification of Suppliers
1. Further to Article 1003, no entity of a Party may, in the
process of qualifying suppliers in a tendering procedure,
discriminate between suppliers of the other Parties or between
domestic suppliers and suppliers of the other Parties.
2. The qualification procedures followed by an entity shall
be consistent with the following:
(a) conditions for participation by suppliers in
tendering procedures shall be published sufficiently
in advance so as to provide the suppliers adequate
time to initiate and, to the extent that it is
compatible with efficient operation of the
procurement process, to complete the qualification
procedures;
(b) conditions for participation by suppliers in
tendering procedures, including financial guarantees,
technical qualifications and information necessary
for establishing the financial, commercial and
technical capacity of suppliers, as well as the
verification of whether a supplier meets those
conditions, shall be limited to those that are
essential to ensure the fulfillment of the contract
in question;
(c) the financial, commercial and technical capacity of a
supplier shall be judged both on the basis of that
supplier's global business activity, including its
activity in the territory of the Party of the
supplier, and its activity, if any, in the territory
of the Party of the procuring entity;
(d) an entity shall not misuse the process of, including
the time required for, qualification in order to
exclude suppliers of another Party from a suppliers'
list or from being considered for a particular
procurement;
(e) an entity shall recognize as qualified suppliers
those suppliers of another Party that meet the
conditions for participation in a particular
procurement;
(f) an entity shall consider for a particular procurement
those suppliers of another Party that request to
participate in the procurement and that are not yet
qualified, provided there is sufficient time to
complete the qualification procedure;
(g) an entity that maintains a permanent list of
qualified suppliers shall ensure that suppliers may
apply for qualification at any time, that all
qualified suppliers so requesting are included in the
list within a reasonably short period of time and
that all qualified suppliers included in the list are
notified of the termination of the list or of their
removal from it;
(h) where, after publication of a notice in accordance
with Article 1010, a supplier that is not yet
qualified requests to participate in a particular
procurement, the entity shall promptly start the
qualification procedure;
(i) an entity shall advise any supplier that requests to
become a qualified supplier of its decision as to
whether that supplier has become qualified; and
(j) where an entity rejects a supplier's application to
qualify or ceases to recognize a supplier as
qualified, the entity shall, on request of the
supplier, promptly provide pertinent information
concerning the entity's reasons for doing so.
3. Each Party shall:
(a) ensure that each of its entities uses a single
qualification procedure, except that an entity may
use additional qualification procedures where the
entity determines the need for a different procedure
and is prepared, on request of another Party, to
demonstrate that need; and
(b) endeavor to minimize differences in the qualification
procedures of its entities.
4. Nothing in paragraphs 2 and 3 shall prevent an entity from
excluding a supplier on grounds such as bankruptcy or false
declarations.
Article 1010: Invitation to Participate
1. Except as otherwise provided in Article 1016, an entity
shall publish an invitation to participate for all procurements
in accordance with paragraphs 2, 3 and 5, in the appropriate
publication referred to in Annex 1010.1.
2. The invitation to participate shall take the form of a
notice of proposed procurement that shall contain the following
information:
(a) a description of the nature and quantity of the goods
or services to be procured, including any options for
further procurement and, if possible,
(i) an estimate of when such options may be
exercised, and
(ii) in the case of recurring contracts, an estimate
of when the subsequent notices will be issued;
(b) a statement as to whether the procedure is open or
selective and whether it will involve negotiation;
(c) any date for starting or completion of delivery of
the goods or services to be procured;
(d) the address to which an application to be invited to
tender or to qualify for the suppliers' lists must be
submitted, the final date for receiving the
application and the language or languages in which it
may be submitted;
(e) the address to which tenders must be submitted, the
final date for receiving tenders and the language or
languages in which tenders may be submitted;
(f) the address of the entity that will award the
contract and that will provide any information
necessary for obtaining specifications and other
documents;
(g) a statement of any economic or technical requirements
and of any financial guarantees, information and
documents required from suppliers;
(h) the amount and terms of payment of any sum payable
for the tender documentation; and
(i) a statement as to whether the entity is inviting
offers for purchase, lease or rental, with or without
an option to buy.
3. Notwithstanding paragraph 2, an entity listed in Annex
1001.1a-2 or 1001.1a-3 may use as an invitation to participate
a notice of planned procurement that shall contain as much of
the information referred to in paragraph 2 as is available to
the entity, but that shall include, at a minimum, the following
information:
(a) a description of the subject matter of the
procurement;
(b) the time limits set for the receipt of tenders or
applications to be invited to tender;
(c) the address to which requests for documents relating
to the procurement should be submitted;
(d) a statement that interested suppliers should express
their interest in the procurement to the entity; and
(e) the identification of a contact point within the
entity from which further information may be
obtained.
4. An entity that uses a notice of planned procurement as an
invitation to participate shall subsequently invite suppliers
that have expressed an interest in the procurement to confirm
their interest on the basis of information provided by the
entity, which shall include at least the information referred
to in paragraph 2.
5. Notwithstanding paragraph 2, an entity listed in Annex
1001.1a-2 or 1001.1a-3 may use as an invitation to participate
a notice regarding a qualification system. An entity that uses
such a notice shall, subject to the considerations referred to
Article 1015(8), provide in a timely manner information that
allows all suppliers that have expressed an interest in
participating in the procurement to have a meaningful
opportunity to assess their interest. The information shall
normally include the information required for notices referred
to in paragraph 2. Information provided to any interested
supplier shall be provided in a non-discriminatory manner to
all other interested suppliers.
6. In the case of selective tendering procedures, an entity
that maintains a permanent list of qualified suppliers shall
publish annually in the appropriate publication referred to in
Annex 1010.1 a notice containing the following information:
(a) an enumeration of any such lists maintained,
including their headings, in relation to the goods or
services or categories of goods or services to be
procured through the lists;
(b) the conditions to be fulfilled by suppliers in view
of their inscription on the lists and the methods
according to which each of those conditions will be
verified by the entity concerned; and
(c) the period of validity of the lists and the
formalities for their renewal.
7. Where, after publication of an invitation to participate,
but before the time set for the opening or receipt of tenders
as specified in the notices or the tender documentation, an
entity finds that it has become necessary to amend or reissue
the notice or tender documentation, the entity shall ensure
that the amended or reissued notice or tender documentation is
given the same circulation as the original. Any significant
information given by an entity to a supplier with respect to a
particular procurement shall be given simultaneously to all
other interested suppliers and sufficiently in advance so as to
provide all suppliers concerned adequate time to consider the
information and to respond.
8. An entity shall indicate in the notices referred to in
this Article that the procurement is covered by this Chapter.
Article 1011: Selective Tendering Procedures
1. To ensure optimum effective competition between the
suppliers of the Parties under selective tendering procedures,
an entity shall, for each procurement, invite tenders from the
maximum number of domestic suppliers and suppliers of the other
Parties, consistent with the efficient operation of the
procurement system.
2. Subject to paragraph 3, an entity that maintains a
permanent list of qualified suppliers may select suppliers to
be invited to tender for a particular procurement from among
those listed. In the process of making a selection, the entity
shall provide for equitable opportunities for suppliers on the
list.
3. Subject to Article 1009(2)(f), an entity shall allow a
supplier that requests to participate in a particular
procurement to submit a tender and shall consider the tender.
The number of additional suppliers permitted to participate
shall be limited only by the efficient operation of the
procurement system.
4. Where an entity does not invite or admit a supplier to
tender, the entity shall, on request of the supplier, promptly
provide pertinent information concerning its reasons for not
doing so.
Article 1012: Time Limits for Tendering and Delivery
1. An entity shall:
(a) in prescribing a time limit, provide adequate time to
allow suppliers of another Party to prepare and
submit tenders before the closing of the tendering
procedures;
(b) in determining a time limit, consistent with its own
reasonable needs, take into account such factors as
the complexity of the procurement, the extent of
subcontracting anticipated, and the time normally
required for transmitting tenders by mail from
foreign as well as domestic points; and
(c) take due account of publication delays when setting
the final date for receipt of tenders or applications
to be invited to tender.
2. Subject to paragraph 3, an entity shall provide that:
(a) in open tendering procedures, the period for the
receipt of tenders is no less than 40 days from the
date of publication of a notice in accordance with
Article 1010;
(b) in selective tendering procedures not involving the
use of a permanent list of qualified suppliers, the
period for submitting an application to be invited to
tender is no less than 25 days from the date of
publication of a notice in accordance with Article
1010, and the period for receipt of tenders is no
less than 40 days from the date of issuance of the
invitation to tender; and
(c) in selective tendering procedures involving the use
of a permanent list of qualified suppliers, the
period for receipt of tenders is no less than 40 days
from the date of the initial issuance of invitations
to tender, but where the date of initial issuance of
invitations to tender does not coincide with the date
of publication of a notice in accordance with Article
1010, there shall not be less than 40 days between
those two dates.
3. An entity may reduce the periods referred to in paragraph
2 in accordance with the following:
(a) where a notice referred to Article 1010(3) or (5) has
been published for a period of no less than 40 days
and no more than 12 months, the 40-day limit for
receipt of tenders may be reduced to no less than 24
days;
(b) in the case of the second or subsequent publications
dealing with recurring contracts within the meaning
of Article 1010(2)(a), the 40-day limit for receipt
of tenders may be reduced to no less than 24 days;
(c) where a state of urgency duly substantiated by the
entity renders impracticable the periods in question,
the periods may be reduced to no less than 10 days
from the date of publication of a notice in
accordance with Article 1010; or
(d) where an entity listed in Annex 1001.1a-2 or 1001.1a-
3 is using as an invitation to participate a notice
referred to in Article 1010(5), the periods may be
fixed by mutual agreement between the entity and all
selected suppliers but, in the absence of agreement,
the entity may fix periods that shall be sufficiently
long to allow for responsive bidding and in any event
shall be no less than 10 days.
4. An entity shall, in establishing a delivery date for goods
or services and consistent with its own reasonable needs, take
into account such factors as the complexity of the procurement,
the extent of subcontracting anticipated and the time
realistically required for production, destocking and transport
of goods from the points of supply.
Article 1013: Tender Documentation
1. Where an entity provides tender documentation to
suppliers, the documentation shall contain all information
necessary to permit suppliers to submit responsive tenders,
including information required to be published in the notice
referred to in Article 1010(2), except for the information
required under Article 1010(2)(h). The documentation shall
also include:
(a) the address of the entity to which tenders should be
submitted;
(b) the address to which requests for supplementary
information should be submitted;
(c) the language or languages in which tenders and
tendering documents may be submitted;
(d) the closing date and time for receipt of tenders and
the length of time during which tenders should be
open for acceptance;
(e) the persons authorized to be present at the opening
of tenders and the date, time and place of the
opening;
(f) a statement of any economic or technical requirements
and of any financial guarantees, information and
documents required from suppliers;
(g) a complete description of the goods or services to be
procured and any other requirements, including
technical specifications, conformity certification
and necessary plans, drawings and instructional
materials;
(h) the criteria for awarding the contract, including any
factors other than price that are to be considered in
the evaluation of tenders and the cost elements to be
included in evaluating tender prices, such as
transportation, insurance and inspection costs, and
in the case of goods or services of another Party,
customs duties and other import charges, taxes and
the currency of payment;
(i) the terms of payment; and
(j) any other terms or conditions.
2. An entity shall:
(a) forward tender documentation on the request of a
supplier that is participating in open tendering
procedures or has requested to participate in
selective tendering procedures, and reply promptly to
any reasonable request for explanations relating
thereto; and
(b) reply promptly to any reasonable request for relevant
information made by a supplier participating in the
tendering procedure, on condition that such
information does not give that supplier an advantage
over its competitors in the procedure for the award
of the contract.
Article 1014: Negotiation Disciplines
1. An entity may conduct negotiations only:
(a) in the context of procurement in which the entity
has, in a notice published in accordance with Article
1010, indicated its intent to negotiate; or
(b) where it appears to the entity from the evaluation of
the tenders that no one tender is obviously the most
advantageous in terms of the specific evaluation
criteria set out in the notices or tender
documentation.
2. An entity shall use negotiations primarily to identify the
strengths and weaknesses in the tenders.
3. An entity shall treat all tenders in confidence. In
particular, no entity may provide to any person information
intended to assist any supplier to bring its tender up to the
level of any other tender.
4. No entity may, in the course of negotiations, discriminate
between suppliers. In particular, an entity shall:
(a) carry out any elimination of suppliers in accordance
with the criteria set out in the notices and tender
documentation;
(b) provide in writing all modifications to the criteria
or technical requirements to all suppliers remaining
in the negotiations;
(c) permit all remaining suppliers to submit new or
amended tenders on the basis of the modified criteria
or requirements; and
(d) when negotiations are concluded, permit all remaining
suppliers to submit final tenders in accordance with
a common deadline.
Article 1015: Submission, Receipt and Opening of Tenders and
Awarding of Contracts
1. An entity shall use procedures for the submission, receipt
and opening of tenders and the awarding of contracts that are
consistent with the following:
(a) tenders shall normally be submitted in writing
directly or by mail;
(b) where tenders by telex, telegram, telecopy or other
means of electronic transmission are permitted, the
tender made thereby must include all the information
necessary for the evaluation of the tender, in
particular the definitive price proposed by the
supplier and a statement that the supplier agrees to
all the terms and conditions of the invitation to
tender;
(c) a tender made by telex, telegram, telecopy or other
means of electronic transmission must be confirmed
promptly by letter or by the dispatch of a signed
copy of the telex, telegram, telecopy or electronic
message;
(d) the content of the telex, telegram, telecopy or
electronic message shall prevail where there is a
difference or conflict between that content and the
content of any documentation received after the time
limit for submission of tenders;
(e) tenders presented by telephone shall not be
permitted;
(f) requests to participate in selective tendering
procedures may be submitted by telex, telegram or
telecopy and if permitted, may be submitted by other
means of electronic transmission; and
(g) the opportunities that may be given to suppliers to
correct unintentional errors of form between the
opening of tenders and the awarding of the contract
shall not be administered in a manner that would
result in discrimination between suppliers.
In this paragraph, "means of electronic transmission" consists
of means capable of producing for the recipient at the
destination of the transmission a printed copy of the tender.
2. No entity may penalize a supplier whose tender is received
in the office designated in the tender documentation after the
time specified for receiving tenders if the delay is due solely
to mishandling on the part of the entity. An entity may also
consider, in exceptional circumstances, tenders received after
the time specified for receiving tenders if the entity's
procedures so provide.
3. All tenders solicited by an entity under open or selective
tendering procedures shall be received and opened under
procedures and conditions guaranteeing the regularity of the
opening of tenders. The entity shall retain the information on
the opening of tenders. The information shall remain at the
disposal of the competent authorities of the Party for use, if
required, under Article 1017, Article 1019 or Chapter Twenty
(Institutional Arrangements and Dispute Settlement Procedures).
4. An entity shall award contracts in accordance with the
following:
(a) to be considered for award, a tender must, at the
time of opening, conform to the essential
requirements of the notices or tender documentation
and have been submitted by a supplier that complies
with the conditions for participation;
(b) if the entity has received a tender that is
abnormally lower in price than other tenders
submitted, the entity may inquire of the supplier to
ensure that it can comply with the conditions of
participation and is or will be capable of fulfilling
the terms of the contract;
(c) unless the entity decides in the public interest not
to award the contract, the entity shall make the
award to the supplier that has been determined to be
fully capable of undertaking the contract and whose
tender is either the lowest-priced tender or the
tender determined to be the most advantageous in
terms of the specific evaluation criteria set out in
the notices or tender documentation;
(d) awards shall be made in accordance with the criteria
and essential requirements specified in the tender
documentation; and
(e) option clauses shall not be used in a manner that
circumvents this Chapter.
5. No entity of a Party may make it a condition of the
awarding of a contract that the supplier has previously been
awarded one or more contracts by an entity of that Party or
that the supplier has prior work experience in the territory of
that Party.
6. An entity shall:
(a) on request, promptly inform suppliers participating
in tendering procedures of decisions on contract
awards and, if so requested, inform them in writing;
and
(b) on request of a supplier whose tender was not
selected for award, provide pertinent information to
that supplier concerning the reasons for not
selecting its tender, the relevant characteristics
and advantages of the tender selected and the name of
the winning supplier.
7. No later than 72 days after the award of a contract, an
entity shall publish a notice in the appropriate publication
referred to in Annex 1010.1 that shall contain the following
information:
(a) a description of the nature and quantity of goods or
services included in the contract;
(b) the name and address of the entity awarding the
contract;
(c) the date of the award;
(d) the name and address of each winning supplier;
(e) the value of the contract, or the highest-priced and
lowest-priced tenders considered in the process of
awarding the contract; and
(f) the tendering procedure used.
8. Notwithstanding paragraphs 1 through 7, an entity may
withhold certain information on the award of a contract where
disclosure of the information:
(a) would impede law enforcement or otherwise be contrary
to the public interest;
(b) would prejudice the legitimate commercial interest of
a particular person; or
(c) might prejudice fair competition between suppliers.
Article 1016: Limited Tendering Procedures
1. An entity of a Party may, in the circumstances and subject
to the conditions set out in paragraph 2, use limited tendering
procedures and thus derogate from Articles 1008 through 1015,
provided that such limited tendering procedures are not used
with a view to avoiding maximum possible competition or in a
manner that would constitute a means of discrimination between
suppliers of the other Parties or protection of domestic
suppliers.
2. An entity may use limited tendering procedures in the
following circumstances and subject to the following
conditions, as applicable:
(a) in the absence of tenders in response to an open or
selective tender, or where the tenders submitted
either have resulted from collusion or do not conform
to the essential requirements of the tender
documentation, or where the tenders submitted come
from suppliers that do not comply with the conditions
for participation provided for in accordance with
this Chapter, on condition that the requirements of
the initial procurement are not substantially
modified in the contract as awarded;
(b) where, for works of art, or for reasons connected
with the protection of patents, copyrights or other
exclusive rights, or proprietary information or where
there is an absence of competition for technical
reasons, the goods or services can be supplied only
by a particular supplier and no reasonable
alternative or substitute exists;
(c) in so far as is strictly necessary where, for reasons
of extreme urgency brought about by events
unforeseeable by the entity, the goods or services
could not be obtained in time by means of open or
selective tendering procedures;
(d) for additional deliveries by the original supplier
that are intended either as replacement parts or
continuing services for existing supplies, services
or installations, or as the extension of existing
supplies, services or installations, where a change
of supplier would compel the entity to procure
equipment or services not meeting requirements of
interchangeability with already existing equipment or
services, including software to the extent that the
initial procurement of the software was covered by
this Chapter;
(e) where an entity procures a prototype or a first good
or service that is developed at its request in the
course of and for a particular contract for research,
experiment, study or original development. Where
such contracts have been fulfilled, subsequent
procurement of goods or services shall be subject to
Articles 1008 through 1015. Original development of
a first good may include limited production in order
to incorporate the results of field testing and to
demonstrate that the good is suitable for production
in quantity to acceptable quality standards, but does
not include quantity production to establish
commercial viability or to recover research and
development costs;
(f) for goods purchased on a commodity market;
(g) for purchases made under exceptionally advantageous
conditions that only arise in the very short term,
such as unusual disposals by enterprises that are not
normally suppliers or disposal of assets of
businesses in liquidation or receivership, but not
routine purchases from regular suppliers;
(h) for a contract to be awarded to the winner of an
architectural design contest, on condition that the
contest is
(i) organized in a manner consistent with the
principles of this Chapter, including regarding
publication of an invitation to suitably
qualified suppliers to participate in the
contest,
(ii) organized with a view to awarding the design
contract to the winner, and
(iii) to be judged by an independent jury; and
(i) where an entity needs to procure consulting services
regarding matters of a confidential nature, the
disclosure of which could reasonably be expected to
compromise government confidences, cause economic
disruption or similarly be contrary to the public
interest.
3. An entity shall prepare a report in writing on each
contract awarded by it under paragraph 2. Each report shall
contain the name of the procuring entity, indicate the value
and kind of goods or services procured, the name of the country
of origin, and a statement indicating the circumstances and
conditions described in paragraph 2 that justified the use of
limited tendering. The entity shall retain each report. They
shall remain at the disposal of the competent authorities of
the Party for use, if required, under Article 1017, Article
1019 or Chapter Twenty (Institutional Arrangements and Dispute
Settlement Procedures).
Section C - Bid Challenge
Article 1017: Bid Challenge
1. In order to promote fair, open and impartial procurement
procedures, each Party shall adopt and maintain bid challenge
procedures for procurement covered by this Chapter in
accordance with the following:
(a) each Party shall allow suppliers to submit bid
challenges concerning any aspect of the procurement
process, which for the purposes of this Article
begins after an entity has decided on its procurement
requirement and continues through the contract award;
(b) a Party may encourage a supplier to seek a resolution
of any complaint with the entity concerned prior to
initiating a bid challenge;
(c) each Party shall ensure that its entities accord fair
and timely consideration to any complaint regarding
procurement covered by this Chapter;
(d) whether or not a supplier has attempted to resolve
its complaint with the entity, or following an
unsuccessful attempt at such a resolution, no Party
may prevent the supplier from initiating a bid
challenge or seeking any other relief;
(e) a Party may require a supplier to notify the entity
on initiation of a bid challenge;
(f) a Party may limit the period within which a supplier
may initiate a bid challenge, but in no case shall
the period be less than 10 working days from the time
when the basis of the complaint became known or
reasonably should have become known to the supplier;
(g) each Party shall establish or designate a reviewing
authority with no substantial interest in the outcome
of procurements to receive bid challenges and make
findings and recommendations concerning them;
(h) on receipt of a bid challenge, the reviewing
authority shall expeditiously investigate the
challenge;
(i) a Party may require its reviewing authority to limit
its considerations to the challenge itself;
(j) in investigating the challenge, the reviewing
authority may delay the awarding of the proposed
contract pending resolution of the challenge, except
in cases of urgency or where the delay would be
contrary to the public interest;
(k) the reviewing authority shall issue a recommendation
to resolve the challenge, which may include directing
the entity to re-evaluate offers, terminate or
re-compete the contract in question;
(l) entities normally shall follow the recommendations of
the reviewing authority;
(m) each Party should authorize its reviewing authority,
following the conclusion of a bid challenge
procedure, to make additional recommendations in
writing to an entity respecting any facet of the
entity's procurement process that is identified as
problematic during the investigation of the
challenge, including recommendations for changes in
the procurement procedures of the entity to bring
them into conformity with this Chapter;
(n) the reviewing authority shall provide its findings
and recommendations respecting bid challenges in
writing and in a timely manner, and shall make them
available to the Parties and interested persons;
(o) each Party shall specify in writing and shall make
generally available all its bid challenge procedures;
and
(p) each Party shall ensure that each of its entities
maintains complete documentation regarding each of
its procurements, including a written record of all
communications substantially affecting each
procurement, for at least three years from the date
the contract was awarded, to allow verification that
the procurement process was carried out in accordance
with this Chapter.
2. A Party may require that a bid challenge be initiated only
after the notice of procurement has been published or, where a
notice is not published, after tender documentation has been
made available. Where a Party imposes such a requirement,
the 10-working day period described in paragraph 1(f) shall
begin no earlier than the date that the notice is published or
the tender documentation is made available.
Section D - General Provisions
Article 1018: Exceptions
1. Nothing in this Chapter shall be construed to prevent a
Party from taking any action or not disclosing any information
which it considers necessary for the protection of its
essential security interests relating to the procurement of
arms, ammunition or war materials, or to procurement
indispensable for national security or for national defense
purposes.
2. Provided that such measures are not applied in a manner
that would constitute a means of arbitrary or unjustifiable
discrimination between Parties where the same conditions
prevail or a disguised restriction on trade between the
Parties, nothing in this Chapter shall be construed to prevent
any Party from adopting or maintaining measures:
(a) necessary to protect public morals, order or safety;
(b) necessary to protect human, animal or plant life or
health;
(c) necessary to protect intellectual property; or
(d) relating to goods or services of handicapped persons,
of philanthropic institutions or of prison labor.
Article 1019: Provision of Information
1. Further to Article 1802(1) (Publication), each Party shall
promptly publish any law, regulation, precedential judicial
decision, administrative ruling of general application and any
procedure, including standard contract clauses, regarding
government procurement covered by this Chapter in the
appropriate publications referred to in Annex 1010.1.
2. Each Party shall:
(a) on request, explain to another Party its government
procurement procedures;
(b) ensure that its entities, on request from a supplier,
promptly explain their procurement practices and
procedures; and
(c) designate by January 1, 1994 one or more contact
points to
(i) facilitate communication between the Parties,
and
(ii) answer, on request, all reasonable inquiries
from other Parties to provide relevant
information on matters covered by this Chapter.
3. A Party may seek such additional information on the award
of the contract as may be necessary to determine whether the
procurement was made fairly and impartially, in particular with
respect to unsuccessful tenders. To this end, the Party of the
procuring entity shall provide information on the
characteristics and relative advantages of the winning tender
and the contract price. Where release of this information
would prejudice competition in future tenders, the information
shall not be released by the requesting Party except after
consultation with and agreement of the Party that provided the
information.
4. On request, each Party shall provide to another Party
information available to that Party and its entities concerning
covered procurement of its entities and the individual
contracts awarded by its entities.
5. No Party may disclose confidential information the
disclosure of which would prejudice the legitimate commercial
interests of a particular person or might prejudice fair
competition between suppliers, without the formal authorization
of the person that provided the information to that Party.
6. Nothing in this Chapter shall be construed as requiring
any Party to disclose confidential information the disclosure
of which would impede law enforcement or otherwise be contrary
to the public interest.
7. With a view to ensuring effective monitoring of
procurement covered by this Chapter, each Party shall collect
statistics and provide to the other Parties an annual report in
accordance with the following reporting requirements, unless
the Parties otherwise agree:
(a) statistics on the estimated value of all contracts
awarded, both above and below the applicable
threshold values, broken down by entities;
(b) statistics on the number and total value of contracts
above the applicable threshold values, broken down by
entities, by categories of goods or services
established in accordance with classification systems
developed under this Chapter and by the country of
origin of the goods and services procured;
(c) statistics on the number and total value of contracts
awarded under each use of the procedures referred to
in Article 1016, broken down by entities, by
categories of goods or services, and by country of
origin of the goods and services procured; and
(d) statistics on the number and total value of contracts
awarded under derogations to this Chapter set out in
Annexes 1001.2a and 1001.2b, broken down by entities.
8. Each Party may organize by state or province any portion
of a report referred to in paragraph 7 that pertains to
entities listed in Annex 1001.1a-3.
Article 1020: Technical Cooperation
1. The Parties shall cooperate, on mutually agreed terms, to
increase understanding of their respective government
procurement systems, with a view to maximizing access to
government procurement opportunities for the suppliers of all
Parties.
2. Each Party shall provide to the other Parties and to the
suppliers of such Parties, on a cost recovery basis,
information concerning training and orientation programs
regarding its government procurement system, and access on a
non-discriminatory basis to any program it conducts.
3. The training and orientation programs referred to in
paragraph 2 include:
(a) training of government personnel directly involved in
government procurement procedures;
(b) training of suppliers interested in pursuing
government procurement opportunities;
(c) an explanation and description of specific elements
of each Party's government procurement system, such
as its bid challenge mechanism; and
(d) information about government procurement market
opportunities.
4. Each Party shall establish by January 1, 1994 at least one
contact point to provide information on the training and
orientation programs referred to in this Article.
Article 1021: Joint Programs for Small Business
1. The Parties shall establish, within 12 months after the
date of entry into force of this Agreement, the Committee on
Small Business, comprising representatives of the Parties. The
Committee shall meet as mutually agreed, but not less than once
each year, and shall report annually to the Commission on the
efforts of the Parties to promote government procurement
opportunities for their small businesses.
2. The Committee shall work to facilitate the following
activities of the Parties:
(a) identification of available opportunities for the
training of small business personnel in government
procurement procedures;
(b) identification of small businesses interested in
becoming trading partners of small businesses in the
territory of another Party;
(c) development of data bases of small businesses in the
territory of each Party for use by entities of
another Party wishing to procure from small
businesses;
(d) consultations regarding the factors that each Party
uses in establishing its criteria for eligibility for
any small business programs; and
(e) activities to address any related matter.
Article 1022: Rectifications or Modifications
1. A Party may modify its coverage under this Chapter only in
exceptional circumstances.
2. Where a Party modifies its coverage under this Chapter,
the Party shall:
(a) notify the other Parties and its Section of the
Secretariat of the modification;
(b) reflect the change in the appropriate Annex; and
(c) propose to the other Parties appropriate compensatory
adjustments to its coverage in order to maintain a
level of coverage comparable to that existing prior
to the modification.
3. Notwithstanding paragraphs 1 and 2, a Party may make
rectifications of a purely formal nature and minor amendments
to its Schedules to Annexes 1001.1a-1 through 1001.1b-3 and
Annexes 1001.2a and 1001.2b, provided that it notifies such
rectifications to the other Parties and its Section of the
Secretariat, and another Party does not object to such proposed
rectification within 30 days. In such cases, compensation need
not be proposed.
4. Notwithstanding any other provision of this Chapter, a
Party may undertake reorganizations of its government
procurement entities covered by this Chapter, including
programs through which the procurement of such entities is
decentralized or the corresponding government functions cease
to be performed by any government entity, whether or not
subject to this Chapter. In such cases, compensation need not
be proposed. No Party may undertake such reorganizations or
programs to avoid the obligations of this Chapter.
5. Where a Party considers that:
(a) an adjustment proposed under paragraph (2)(c) is not
adequate to maintain a comparable level of mutually
agreed coverage, or
(b) a rectification or a minor amendment under paragraph
3 or a reorganization under paragraph 4 does not meet
the applicable requirements of those paragraphs and
should require compensation,
the Party may have recourse to dispute settlement procedures
under Chapter Twenty (Institutional Arrangements and Dispute
Settlement Procedures).
Article 1023: Divestiture of Entities
1. Nothing in this Chapter shall be construed to prevent a
Party from divesting an entity covered by this Chapter.
2. If, on the public offering of shares of an entity listed
in Annex 1001.1a-2, or through other methods, the entity is no
longer subject to federal government control, the Party may
delete the entity from its Schedule to that Annex, and withdraw
the entity from the coverage of this Chapter, on notification
to the other Parties and its Section of the Secretariat.
3. Where a Party objects to the withdrawal on the grounds
that the entity remains subject to federal government control,
that Party may have recourse to dispute settlement procedures
under Chapter Twenty (Institutional Arrangements and Dispute
Settlement Procedures).
Article 1024: Further Negotiations
1. The Parties shall commence further negotiations no later
than December 31, 1998, with a view to the further
liberalization of their respective government procurement
markets.
2. In such negotiations, the Parties shall review all aspects
of their government procurement practices for purposes of:
(a) assessing the functioning of their government
procurement systems;
(b) seeking to expand the coverage of this Chapter,
including by adding
(i) other government enterprises, and
(ii) procurement otherwise subject to legislated or
administrative exceptions; and
(c) reviewing thresholds.
3. Prior to such review, the Parties shall endeavor to
consult with their state and provincial governments with a view
to obtaining commitments, on a voluntary and reciprocal basis,
to include within this Chapter procurement by state and
provincial government entities and enterprises.
4. If the negotiations pursuant to Article IX:6(b) of the
GATT Agreement on Government Procurement ("the Code") are
completed prior to such review, the Parties shall:
(a) immediately begin consultations with their state and
provincial governments with a view to obtaining
commitments, on a voluntary and reciprocal basis, to
include within this Chapter procurement by state and
provincial government entities and enterprises; and
(b) increase the obligations and coverage of this Chapter
to a level at least commensurate with that of the
Code.
5. The Parties shall undertake further negotiations, to
commence no later than one year after the date of entry into
force of this Agreement, on the subject of electronic
transmission.
Article 1025: Definitions
1. For purposes of this Chapter:
construction services contract means a contract for the
realization by any means of civil or building works listed in
Appendix 1001.1b-3-A;
entity means an entity listed in Annex 1001.1a-1, 1001.1a-2 or
1001.1a-3;
goods of another Party means goods originating in the territory
of another Party, determined in accordance with Article 1004;
international standard means "international standard", as
defined in Article 915 (Definitions - Standards-Related
Measures);
limited tendering procedures means procedures where an entity
contacts suppliers individually, only in the circumstances and
under the conditions specified in Article 1016;
locally established supplier includes a natural person resident
in the territory of the Party, an enterprise organized or
established under the Party's law, and a branch or
representative office located in the Party's territory;
open tendering procedures means those procedures under which
all interested suppliers may submit a tender;
selective tendering procedures means procedures under which,
consistent with Article 1011(3), those suppliers invited to do
so by an entity may submit a tender;
services includes construction services contracts, unless
otherwise specified;
standard means "standard", as defined in Article 915;
supplier means a person that has provided or could provide
goods or services in response to an entity's call for tender;
technical regulation means "technical regulation", as defined
in Article 915;
technical specification means a specification which lays down
goods characteristics or their related processes and production
methods, or services characteristics or their related operating
methods, including the applicable administrative provisions.
It may also include or deal exclusively with terminology,
symbols, packaging, marking or labelling requirements as they
apply to a good, process, or production or operating method;
and
tendering procedures means open tendering procedures, selective
tendering procedures and limited tendering procedures.
Annex 1001.1a-1
Federal Government Entities
Schedule of Canada
1. Department of Agriculture
2. Department of Communications
3. Department of Consumer and Corporate Affairs
4. Department of Employment and Immigration
5. Immigration and Refugee Board
6. Canada Employment and Immigration Commission
7. Department of Energy, Mines and Resources
8. Atomic Energy Control Board
9. National Energy Board
10. Department of the Environment
11. Department of External Affairs
12. Canadian International Development Agency (on its own
account)
13. Department of Finance
14. Office of the Superintendent of Financial Institutions
15. Canadian International Trade Tribunal
16. Municipal Development and Loan Board
17. Department of Fisheries and Oceans
18. Department of Forestry
19. Department of Indian Affairs and Northern Development
20. Department of Industry, Science and Technology
21. Science Council of Canada
22. National Research Council of Canada
23. Natural Sciences and Engineering Research Council of
Canada
24. Department of Justice
25. Canadian Human Rights Commission
26. Statute Revision Commission
27. Supreme Court of Canada
28. Department of Labour
29. Canada Labour Relations Board
30. Department of National Health and Welfare
31. Medical Research Council
32. Department of National Revenue
33. Department of Public Works
34. Department of Secretary of State of Canada
35. Social Sciences and Humanities Research Council
36. Office of the Co-ordinator, Status of Women
37. Public Service Commission
38. Department of the Solicitor General
39. Correctional Service of Canada
40. National Parole Board
Annex 1001.1a-1
41. Department of Supply and Services (on its own account)
42. Canadian General Standards Board
43. Department of Transport (For purposes of Article 1018, the
national security considerations applicable to the
Department of National Defence are equally applicable to
the Canadian Coast Guard.)
44. Secretariat and the Office of the Controller General
45. Department of Veterans Affairs
46. Veterans Land Administration
47. Department of Western Economic Diversification
48. Atlantic Canada Opportunities Agency
49. Auditor General of Canada
50. Federal Office of Regional Development (Quebec)
51. Canadian Centre for Management Development
52. Canadian Radio-television and Telecommunications
Commission
53. Canadian Sentencing Commission
54. Civil Aviation Tribunal
55. Commission of Inquiry into the Air Ontario Crash at
Dryden, Ontario
56. Commission of Inquiry into the Use of Drugs and Banned
Practices Intended to Increase Athletic Performance
57. Commissioner for Federal Judicial Affairs
58. Competition Tribunal Registry
59. Copyright Board
60. Emergency Preparedness Canada
61. Federal Court of Canada
62. Grain Transportation Agency
63. Hazardous Materials Information Review Commission
64. Information and Privacy Commissioners
65. Investment Canada
66. Department of Multiculturalism and Citizenship
67. The National Archives of Canada
68. National Farm Products Marketing Council
69. The National Library
70. National Transportation Agency
71. Northern Pipeline Agency
72. Patented Medicine Prices Review Board
73. Petroleum Monitoring Agency
74. Privy Council Office
75. Canadian Intergovernmental Conference Secretariat
76. Commissioner of Official Languages
77. Economic Council of Canada
78. Public Service Staff Relations Office
79. Office of the Secretary to the Governor General
80. Office of the Chief Electoral Officer
81. Federal Provincial Relations Office
82. Procurement Review Board
Annex 1001.1a-1
83. Royal Commission on Electoral Reform and Party Financing
84. Royal Commission on National Passenger Transportation
85. Royal Commission on New Reproductive Technologies
86. Royal Commission on the Future of the Toronto Waterfront
87. Statistics Canada
88. Tax Court of Canada, Registry of the
89. Agricultural Stabilization Board
90. Canadian Aviation Safety Board
91. Canadian Centre for Occupational Health and Safety
92. Canadian Transportation Accident Investigation and Safety
Board
93. Director of Soldier Settlement
94. Director, The Veterans' Land Act
95. Fisheries Prices Support Board
96. National Battlefields Commission
97. Royal Canadian Mounted Police
98. Royal Canadian Mounted Police External Review Committee
99. Royal Canadian Mounted Police Public Complaints Commission
100. Department of National Defence
Schedule of Mexico
1. Secretar a de Gobernaci n (Ministry of Government)
- Centro Nacional de Estudios Municipales (National
Center for Municipal Studies)
- Comisi n Calificadora de Publicaciones y Revistas
Ilustradas (Illustrated Periodicals and Publications
Classification Commission)
- Consejo Nacional de Poblaci n (National Population
Council)
- Archivo General de la Naci n (General Archives of the
Nation)
- Instituto Nacional de Estudios Hist ricos de la
Revoluci n Mexicana (National Institute of Historical
Studies on the Mexican Revolution)
- Patronato de Asistencia para la Reincorporaci n
Social (Social Reintegration Assistance Foundation)
- Centro Nacional de Prevenci n de Desastres (National
Disaster Prevention Center)
- Consejo Nacional de Radio y Televisi n (National
Radio and Television Council)
- Comisi n Mexicana de Ayuda a Refugiados (Mexican
Commission on Refugee Assistance)
2. Secretar a de Relaciones Exteriores (Ministry of Foreign
Relations)
- Secci n Mexicana de la Comisi n Internacional de
L mites y Aguas M xico-EEUU (Mexican Section of the
Annex 1001.1a-1
International Boundary and Water Commission, Mexico
and the United States)
- Secci n Mexicana de la Comisi n Internacional de
L mites y Aguas M xico-Guatemala (Mexican Section of
the International Boundary and Water Commission,
Mexico and Guatemala)
3. Secretar a de Hacienda y Cr dito P blico (Ministry Finance
and Public Credit)
- Comisi n Nacional Bancaria (National Banking
Commission)
- Comisi n Nacional de Valores (National Securities
Commission)
- Comisi n Nacional de Seguros y Fianzas (National
Insurance and Bonds Commission)
- Instituto Nacional de Estad stica, Geograf a e
Inform tica (National Institute of Statistics,
Geography, and Informatics)
4. Secretar a de Agricultura y Recursos Hidr ulicos (Ministry
of Agriculture and Water Resources)
- Instituto Mexicano de Tecnolog a del Agua (Mexican
Institute of Water Technology)
- Instituto Nacional de Investigaciones Forestales y
Agropecuarias (National Forestry and Agricultural
Research Institute)
- Apoyos a Servicios a la Comercializaci n Agropecuaria
(Aserca) (Support Services for Agricultural
Marketing)
5. Secretar a de Comunicaciones y Transportes (including the
Instituto Mexicano de Comunicaciones and the Instituto
Mexicano de Transporte) (Ministry of Communications and
Transport, including the Mexican Institute of
Communications and the Mexican Institute of
Transportation)
6. Secretar a de Comercio y Fomento Industrial (Ministry of
Commerce and Industrial Development)
7. Secretar a de Educaci n P blica (Ministry of Public
Education)
- Instituto Nacional de Antropolog a e Historia
(National Institute of Anthropology and History)
- Instituto Nacional de Bellas Artes y Literatura
(National Institute of Fine Arts and Literature)
- Radio Educaci n (Radio Education)
- Centro de Ingenier a y Desarrollo Industrial
(Engineering and Industrial Development Center)
- Consejo Nacional para la Cultura y las Artes
(National Council for Culture and the Arts)
- Comisi n Nacional del Deporte (National Sports
Commission)
Annex 1001.1a-1
8. Secretar a de Salud (Ministry of Health)
- Administraci n del Patrimonio de la Beneficencia
P blica (Public Charity Fund
Administration)
- Centro Nacional de la Transfusi n Sangu nea (National
Blood Transfusion Center)
- Gerencia General de Biol gicos y Reactivos (Office of
General Management for Biologicals and Reagents)
- Centro para el Desarrollo de la Infraestructura en
Salud (Center for Infrastructural Development in
Health)
- Instituto de la Comunicaci n Humana Dr. Andr s
Bustamante Gurr a (Dr. Andr s Bustamante Gurr a
Institute of Human Communication)
- Instituto Nacional de Medicina de la Rehabilitaci n
(National Rehabilitative Medicine Institute)
- Instituto Nacional de Ortopedia (National Orthopedics
Institute)
- Consejo Nacional para la Prevenci n y Control del
S ndrome de la Inmunodeficiencia Adquirida,
(Conasida) (National Council for the Prevention and
Control of the Autoimmune Deficiency Syndrome)
9. Secretar a del Trabajo y Previsi n Social (Ministry of
Labor and Social Welfare)
- Procuradur a Federal de la Defensa del Trabajo
(Office of the Federal Attorney for Labor Defense)
10. Secretar a de la Reforma Agraria (Ministry of Agrarian
Reform)
- Instituto de Capacitaci n Agraria (Institute of
Agricultural Training)
11. Secretar a de Pesca (Ministry of Fisheries)
- Instituto Nacional de la Pesca (National Institute of
Fisheries)
12. Procuradur a General de la Rep blica (Office of the
Attorney General of the Republic)
13. Secretar a de Energ a Minas e Industria Paraestatal
(Ministry of Energy, Mines, and Parastatal Industry)
- Comisi n Nacional de Seguridad Nuclear y
Salvaguardias (National Commission on Nuclear Safety
and Safeguards)
- Comisi n Nacional para el Ahorro de Energ a (National
Commission for Energy Conservation)
14. Secretar a de Desarrollo Social (Ministry of Social
Development)
15. Secretar a de Turismo (Ministry of Tourism)
16. Secretar a de la Contralor a General de La Federaci n
(Ministry of the Comptroller General of the Federation)
Annex 1001.1a-1
17. Comisi n Nacional de Zonas Aridas (National Commission on
Arid Zones)
18. Comisi n Nacional de Libros de Texto Gratuito (National
Commission on Free Textbooks)
19. Comisi n Nacional de Derechos Humanos (National Commission
on Human Rights)
20. Consejo Nacional de Fomento Educativo (National
Educational Development Council)
21. Secretar a de la Defensa Nacional (Ministry of National
Defense)
22. Secretar a de Marina (Ministry of the Navy)
Note: This Schedule covers the numbered entities and those
listed thereunder.
Schedule of the United States
1. Department of Agriculture (Not including procurement of
agricultural goods made in furtherance of agricultural
support programs or human feeding programs. Federal buy
national requirements imposed as conditions of funding by
the Rural Electrification Administration will not apply to
goods of Mexico and Canada, suppliers of such goods, and
service suppliers of Mexico and Canada.)
2. Department of Commerce
3. Department of Education
4. Department of Health and Human Services
5. Department of Housing and Urban Development
6. Department of the Interior, including the Bureau of
Reclamation (For goods of Canada, suppliers of such goods
and service suppliers of Canada, this Chapter will apply
to procurements by the Bureau of Reclamation of the
Department of Interior only at such time as this Chapter
applies to procurements by the Canadian provincial, not
including local, hydro utilities.)
7. Department of Justice
8. Department of Labor
9. Department of State
10. United States Agency for International Development
11. Department of the Treasury
12. Department of Transportation (For purposes of Article
1018, the national security considerations applicable to
the Department of Defense are equally applicable to the
Coast Guard, a military unit of the United States.)
13. Department of Energy (Not including national security
procurements made in support of safeguarding nuclear
materials or technology and entered into under the
Annex 1001.1a-1
authority of the Atomic Energy Act, and oil purchases
related to the Strategic Petroleum Reserve.)
14. General Services Administration (except Federal Supply
Groups 51 and 52 and Federal Supply Class 7340)
15. National Aeronautics and Space Administration (NASA)
16. Department of Veterans Affairs
17. Environmental Protection Agency
18. United States Information Agency
19. National Science Foundation
20. Panama Canal Commission
21. Executive Office of the President
22. Farm Credit Administration
23. National Credit Union Administration
24. Merit Systems Protection Board
25. ACTION
26. United States Arms Control and Disarmament Agency
27. Office of Thrift Supervision
28. Federal Housing Finance Board
29. National Labor Relations Board
30. National Mediation Board
31. Railroad Retirement Board
32. American Battle Monuments Commission
33. Federal Communications Commission
34. Federal Trade Commission
35. Interstate Commerce Commission
36. Securities and Exchange Commission
37. Office of Personnel Management
38. United States International Trade Commission
39. Export-Import Bank of the United States
40. Federal Mediation and Conciliation Service
41. Selective Service System
42. Smithsonian Institution
43. Federal Deposit Insurance Corporation
44. Consumer Product Safety Commission
45. Equal Employment Opportunity Commission
46. Federal Maritime Commission
47. National Transportation Safety Board
48. Nuclear Regulatory Commission
49. Overseas Private Investment Corporation
50. Administrative Conference of the United States
51. Board for International Broadcasting
52. Commission on Civil Rights
53. Commodity Futures Trading Commission
54. Peace Corps
55. National Archives and Records Administration
56. Department of Defense, including the Army Corps of
Engineers
Annex 1001.1a-2
Government Enterprises
Schedule of Canada
1. Canada Post Corporation
2. National Capital Commission
3. St. Lawrence Seaway Authority
4. Royal Canadian Mint
5. Canadian National Railway Company
6. Via Rail Canada Inc.
7. Canadian Museum of Civilization
8. Canadian Museum of Nature
9. National Gallery of Canada
10. National Museum of Science and Technology
11. Defence Construction (1951) Ltd.
Note:
1. For greater certainty, Article 1019(5) applies to
procurements by Canadian National Railway Company, St. Lawrence
Seaway Authority and Via Rail Canada Inc., respecting the
protection of the commercial confidentiality of information
provided.
2. This Chapter does not apply to procurement by or on behalf
of the Royal Canadian Mint of direct inputs for use in minting
anything other than Canadian legal tender.
3. With respect to the Canadian National Railway Company,
this Chapter applies to the procurement of goods, services and
construction services for its railway operations, subject to
any other exceptions in this Chapter.
Schedule of Mexico
Printing and Editorial
1. Talleres Gr ficos de la Naci n (National Printers)
2. Productora e Importadora de Papel, S.A. de C.V. (PIPSA)
(Producer and Importer of Paper, S.A. de C.V.)
Communications and Transportation
3. Aeropuertos y Servicios Auxiliares (ASA) (Airports and
Auxillary Services)
Annex 1001.1a-2
4. Caminos y Puentes Federales de Ingresos y Servicios
Conexos (Capufe) (Federal Toll Roads and Bridges and
Related Services)
5. Servicio Postal Mexicano (Mexican Postal Service)
6. Ferrocarriles Nacionales de M xico (Ferronales) (National
Railways of Mexico)
7. Telecomunicaciones de M xico (Telecom) (Telecommunications
of Mexico)
Industry
8. Petr leos Mexicanos (Pemex) (Mexican Petroleum) (Not
including procurements of fuels or gas)
9. Comisi n Federal de Electricidad (CFE) (Federal
Electricity Commission)
10. Consejo de Recursos Minerales (Mineral Resources Council)
11. Consejo de Recursos Mineros (Mining Resources Council)
Commerce
12. Compa a Nacional de Subsistencias Populares (Conasupo)
(National Company for Basic Commodities) (Not including
procurements of agricultural goods made in furtherance of
agricultural support programs or human feeding programs.)
13. Bodegas Rurales Conasupo, S.A. de C.V. (Conasupo Rural
Storage Facilities, S.A. de C.V)
14. Distribuidora e Impulsora de Comercio, S.A. de C.V.
(Diconsa) (Commercial Distributor and Trade Promotion S.A.
de C.V.)
15. Leche Industrializada Conasupo, S.A. de C.V. (Liconsa)
(Conasupo Industrialized Milk, S.A. de C.V.) (Not
including procurements of agricultural goods made in
furtherance of agricultural support programs or human
feeding programs.)
16. Procuradur a Federal del Consumidor (Office of the Federal
Attorney for Consumers)
17. Instituto Nacional del Consumidor (National Consumer
Institute)
18. Laboratorios Nacionales de Fomento Industrial (National
Industrial Development Laboratories)
19. Servicio Nacional de Informaci n de Mercados (National
Markets Information Service)
Social Security
20. Instituto de Seguridad y Servicios Sociales de los
Trabajadores del Estado (ISSSTE) (Social Security and
Services Institute for Government Workers)
Annex 1001.1a-2
21. Instituto Mexicano del Seguro Social (IMSS) (Mexican
Social Security Institute)
22. Sistema Nacional para el Desarrollo Integral de la Familia
(DIF) (National System for Integrated Family Development)
(Not including procurements of agricultural goods made in
furtherance of agricultural support programs or human
feeding programs.)
23. Servicios Asistenciales de la Secretar a de Marina (Social
Security Services of the Department of the Navy)
24. Instituto de Seguridad Social para las Fuerzas Armadas
Mexicanas (Social Security Institute for the Mexican Armed
Forces)
25. Instituto Nacional Indigenista (INI) (National Institute
of Indian Peoples)
26. Instituto Nacional Para la Educaci n de los Adultos
(National Institute for Adult Education)
27. Centros de Integraci n Juvenil (Youth Integration Centers)
28. Instituto Nacional de la Senectud (National Institute on
Old Age)
Others
29. Comit Administrador del Programa Federal de Construcci n
de Escuelas (CAPFCE) (Administrative Committee of the
School Construction Federal Program)
30. Comisi n Nacional del Agua (CNA) (National Water
Commission)
31. Comisi n Para la Regularizaci n de la Tenencia de la
Tierra (Commission for the Regularization of Land Tenure)
32. Consejo Nacional de Ciencia y Tecnolog a (Conacyt)
(National Science and Technology Council)
33. Notimex, S.A. de C.V.
34. Instituto Mexicano de Cinematograf a (Mexican Institute of
Cinematography)
35. Loter a Nacional para la Asistencia P blica (National
Lottery for Public Assistance)
36. Pron sticos Deportivos (Sports Lottery)
Schedule of the United States
1. Tennessee Valley Authority
2. Bonneville Power Administration
3. Western Area Power Administration
4. Southeastern Power Administration
5. Southwestern Power Administration
6. Alaska Power Administration
Annex 1001.1a-2
7. St. Lawrence Seaway Development Corporation
Note: For goods of Canada, suppliers of such goods and
service suppliers of Canada, this Chapter will apply
to procurements by the authorities and power
administrations listed as items 1 through 6 only at
such time as this Chapter applies to the procurements
by the Canadian provincial, not including local,
hydro utilities.
Annex 1001.1a-3
State and Provincial Government Entities
Coverage under this Annex will be the subject of
consultations with state and provincial governments in
accordance with Article 1024.
Annex 1001.1b-1
Goods
Section A - General Provisions
1. This Chapter applies to all goods, except to the extent
set out in paragraphs 2 through 5 and Section B.
2. With respect to Canada, the goods listed in Section B
purchased by the Department of National Defence and the Royal
Canadian Mounted Police are included in the coverage of this
Chapter, subject to Article 1018(1).
3. With respect to Mexico, the goods listed in Section B
purchased by the Secretar a de la Defensa Nacional and the
Secretar a de Marina are included in the coverage of this
Chapter, subject to the application of Article 1018(1).
4. With respect to the United States, this Chapter will
generally apply to Department of Defense purchases of the FSC
categories listed in Section B subject to United States
Government determinations under Article 1018(1).
5. This Chapter does not apply to the following purchases of
the U.S. Department of Defense:
(a) Federal Supply Classification (FSC) 83 - all elements
other than pins, needles, sewing kits, flagstaffs,
flagpoles and flagstaff trucks;
(b) FSC 84 - all elements other than sub-class 8460
(luggage);
(c) FSC 89 - all elements other than sub-class 8975
(tobacco products);
(d) FSC 2310 - (buses only);
(e) specialty metals, defined as steels melted in steel
manufacturing facilities located in the United States
or its possessions, where the maximum alloy content
exceeds one or more of the following limits, must be
used in products purchased by DOD: (1) manganese,
1.65 percent; silicon, 0.60 percent; or copper, 0.06
percent; or which contains more than 0.25 percent of
any of the following elements: aluminum, chromium,
cobalt, columbium, molybdenum, nickel, titanium,
tungsten or vanadium; (2) metal alloys consisting of
nickel, iron-nickel and cobalt base alloys containing
a total of other alloying metals (except iron) in
Annex 1001.1b-1
excess of 10 percent; (3) titanium and titanium
alloys; or (4) zirconium base alloys;
(f) FSC 19 and 20 - that part defined as naval vessels or
major components of the hull or superstructure
thereof;
(g) FSC 51; and
(h) the following FSC categories are not generally
covered due to application of Article 1018(1): 10,
12, 13, 14, 15, 16, 17, 19, 20, 28, 31, 58, 59 and
95.
Section B - List of Certain Goods
(Numbers refer to the Federal Supply Classification code)
22. Railway equipment
23. Motor vehicles, trailers and cycles (except buses in 2310;
and, for Canada and Mexico, except military trucks and
trailers in 2320 and 2330 and tracked combat, assault and
tactical vehicles in 2350)
24. Tractors
25. Vehicular equipment components
26. Tires and tubes
29. Engine accessories
30. Mechanical power transmission equipment
32. Woodworking machinery and equipment
34. Metal working equipment
35. Service and trade equipment
36. Special industry machinery
37. Agricultural machinery and equipment
38. Construction, mining, excavating and highway maintenance
equipment
39. Materials handling equipment
40. Rope, cable, chain and fittings
41. Refrigeration and air conditioning equipment
42. Fire fighting, rescue and safety equipment (for Canada,
except 4220: Marine life-saving and diving equipment; and
4230: Decontaminating and impregnating equipment)
43. Pumps and compressors
44. Furnace, steam plant, drying equipment and nuclear
reactors
45. Plumbing, heating and sanitation equipment
46. Water purification and sewage treatment equipment
47. Pipe, tubing, hose and fittings
48. Valves
49. Maintenance and repair shop equipment
52. Measuring tools
Annex 1001.1b-1
53. Hardware and abrasives
54. Prefabricated structures and scaffolding
55. Lumber, millwork, plywood and veneer
56. Construction and building materials
61. Electric wire and power and distribution equipment
62. Lighting fixtures and lamps
63. Alarm and signal systems
65. Medical, dental and veterinary equipment and supplies
66. Instruments and laboratory equipment (for Canada, except
6615: Automatic pilot mechanisms and airborne Gyro
components; and 6665: Hazard-detecting instruments and
apparatus)
67. Photographic equipment
68. Chemicals and chemical products
69. Training aids and devices
70. General purpose automatic data processing equipment,
software, supplies and support equipment (for Canada,
except 7010: ADPE configurations)
71. Furniture
72. Household and commercial furnishings and appliances
73. Food preparation and serving equipment
74. Office machines, text processing system and visible record
equipment
75. Office supplies and devices
76. Books, maps and other publications (for Canada and Mexico,
except 7650: drawings and specifications)
77. Musical instruments, phonographs and home-type radios
78. Recreational and athletic equipment
79. Cleaning equipment and supplies
80. Brushes, paints, sealers and adhesives
81. Containers, packaging and packing supplies
85. Toiletries
87. Agricultural supplies
88. Live animals
91. Fuels, lubricants, oils and waxes (Canada and United
States only)
93. Non-metallic fabricated materials
94. Non-metallic crude materials
96. Ores, minerals and their primary products (for Mexico,
except 9620: minerals, natural and synthetic)
99. Miscellaneous
Annex 1001.1b-2
Services
Section A - General Provisions
1. This Chapter applies to all services that are procured by
the entities listed in Annex 1001.1a-1 and Annex 1001.1a-2,
subject to:
(a) paragraph 3 and Section B; and
(b) Appendix 1001.1b-2-A, for the Parties specified in
that Appendix.
2. Appendix 1001.1b-2-B sets out the Common Classification
System for the services procured by the entities of the
Parties. The Parties shall use this System for reporting
purposes and shall update Appendix 1001.1b-2-B at such times as
they mutually agree.
3. Annex 1001.1b-3 applies to contracts for construction
services.
Section B - Excluded Coverage
Schedule of Canada
Services Exclusions
by Major Service Category
The following service contracts are excluded:
A. Research and Development
All Classes
B. Special Studies and Analysis - not R&D
B002 Animal and fisheries studies
B003 Grazing and Range Studies
B507 Legal studies (Except Advisory Services on Foreign
Law)
B503 Medical and health studies
B400 Aeronautic/Space Studies
Annex 1001.1b-2
C. Architecture and Engineering Services
C112 Airfield, Communication and Missile Facilities
C216 Marine architect and engineering services
D. Information Processing and Related Telecommunications
Services
D304 ADP Telecommunications and Transmission Services,
except those classified as "enhanced or value-added
services" as defined in Article 1310 and that are
expressly excluded from the reservations set out in
Annex II, Schedule of Canada, II-C-3 or II-C-5. For
the purposes of this provision, the procurement of
"ADP Telecommunications and Transmission services"
does not include the ownership or furnishing of
facilities for the transmission of voice or data
services.
D305 ADP Teleprocessing and timesharing services
D309 Information and data broadcasting or data
distribution services
D316 Telecommunications Network Management Services
D317 Automated News Service, Data Services, or Other
Information Services. Buying data, the electronic
equivalent of books, periodicals, newspapers, etc.
D399 Other ADP and Telecommunications Services
F. Natural Resources and Conservation Services
F004 Land Treatment Practices Services (plowing/clearing,
etc).
F005 Range Seeding Services (ground equipment)
F006 Crop services inc. Seed Collection/Production
Services
F007 Seedling Production/Transplanting Services
F011 Pesticides/Insecticides Support services
F010 Other Range/Forest Improvements services
F021 Veterinary/Animal Care services (inc. Livestock
services)
F029 Other Animal Care /Control services
F030 Fisheries Resources Management Services
F031 Fish Hatchery Services
F050 Recreation Site Maintenance services (non-
construction)
Annex 1001.1b-2
F059 Other natural resource and conservation services
G. Health and Social Services
All classes
H. Quality Control, Testing and Inspection and Technical
Representative Services
Services for the Departments of Transport,
Communications and Fisheries and Oceans respecting
FSC 36 - (Special Industry Machinery), FSC 70 -
(Automatic Data Processing Equipment, software
supplies and support equipment) and FSC 74 (Office
machines, text processing systems and visible record
equipment).
FSC 58 (Communications, Detection, and Coherent
Radiation Equipment)
Services with reference to transportation equipment.
J. Maintenance, Repair, Modification, Rebuilding and
Installation of Equipment (J)
Services for the Departments of Transport,
Communications and Fisheries and Oceans respecting
FSC 36 - (Special Industry Machinery), FSC 70 -
(Automatic Data Processing Equipment, software
supplies and support equipment) and FSC 74 (Office
machines, text processing systems and visible record
equipment).
FSC 58 (Communications, Detection, and Coherent
Radiation Equipment)
Services with reference to transportation equipment.
J019 Maintenance, Repair, Modification, Rebuilding and
Installation of Equipment related to Ships
J998 Non-nuclear Ship Repair
K. Custodial Operations and Related Services
Annex 1001.1b-2
K0 Personal care services
K105 Guard Services
K109 Surveillance services
K115 Preparation and Disposal of Excess and surplus
property
L. Financial and Related Services
All classes
M. Operation of Government Owned Facilities
All facilities operated by:
The Department of Defence
The Department of Transport
The Department of Energy, Mines and Resources
and for all Departments:
M180 and M140
R. Professional, Administrative and Management Support
Services
R003 Legal services (Except Advisory Services on Foreign
Law)
R004 Certifications and accreditations for products and
institutions other than Educational Institutions
R007 Systems Engineering Services 1/
R012 Patent and Trade Mark Services
R101 Expert Witness
R102 Weather Reporting/Observation services
R104 Transcription services
R106 Post Office services
R109 Translation and Interpreting services (inc. sign
language)
R113 Data Collection services
R114 Logistics Support Services 2/
R116 Court Reporting Services
R117 Paper Shredding Services
R201 Civilian Personnel Recruitment
(inc. Services of Employment Agencies)
1/ with reference to transportation systems
2/ with respect to transportation and defence
Annex 1001.1b-2
S. Utilities
All classes
T. Communications, Photographic, Mapping, Printing and
Publications Services
All classes
U. Education and Training Services
U010 Certifications and accreditations for Educational
Institutions
V. Transportation, Travel and Relocation Services
All classes (except V503 Travel Agent Services [not
including Tour Guides.])
W. Lease or Rental of Equipment
Services for the Departments of Transport,
Communications and Fisheries and Oceans respecting
FSC 36 - (Special Industry Machinery), FSC 70 -
(Automatic Data Processing Equipment, software
supplies and support equipment) and FSC 74 (Office
machines, text processing systems and visible record
equipment).
FSC 58 (Communications, Detection, and Coherent
Radiation Equipment)
Services with reference to transportation equipment.
General Notes:
1. All services, with reference to those goods purchased
by the Department of National Defence, the Royal
Canadian Mounted Police and the Canadian Coast Guard
which are not identified as subject to coverage by
this chapter (Annex 1001.1b-1), will be exempt from
the disciplines of the Chapter.
Annex 1001.1b-2
2. All services purchased in support of military forces
located overseas will be exempt from coverage by this
chapter.
3. The General Notes as identified in Annex 1001.2b and
Annex 1001.1b -3 will apply.
4. In the absence of agreed definitions for service
classes under the proposed NAFTA classification
system, and until such time as they are mutually
agreed, Canada will continue to apply appropriate CPC
definitions to identify classes which it considers
exempt.
Schedule of Mexico
The following service contracts are excluded:
(Based on the United Nations Central Product Classification
(CPC)) CPC
1. All transportation services, including:
- Land transportation 71
- Water transport 72
- Air transport 73
- Supporting and auxiliary transport 74
- Post and telecommunication 75
- Repair services of other transport equipment, on
a fee or contract basis 8868
2. Public utilities services (including telecommunications,
transmission, water or energy services)
3. Management and operation contracts awarded to
federally-funded research and development centers or
related to carrying out government sponsored research
programs
4. Financial services
5. Research and development services
Annex 1001.1b-2
Schedule of the United States
Service Exclusions
by Major Service Category
A. Research and Development
All classes
D. Information Processing and Related Telecommunications
Services
D304 ADP Telecommunications and Transmission Services,
except for those services classified as "enhanced or
value-added services," as defined in Article 1310 and
that are expressly excluded from the reservation set
out in Annex II, Schedule of the United States, II-U-
3 or II-U-5. For the purposes of this provision, the
procurement of "ADP Telecommunications and
Transmission services" does not include the ownership
or furnishing of facilities for the transmission of
voice or data services.
D305 ADP Teleprocessing and Timesharing Services
D316 Telelcommunications Network Management Services
D317 Automated News Services, Data Services or Other
Information Services
D399 Other ADP and Telecommunications Services
J. Maintenance, Repair, Modification, Rebuilding and
Installation of Equipment
J019 Maintenance, Repair, Modification, Rebuilding and
Installation of Equipment Related to Ships
J998 Non-nuclear Ship Repair
M. Operation of Government-Owned Facilities
All facilities operated by the Department of Defense,
Department of Energy and the National Aeronautics and
Space Administration; and for all entities:
M181 Government-Owned Contractor Operated R&D Facilities
M182 Government-Owned-Operated R&D Facilities
Annex 1001.1b-2
M183 Government-Owned Contractor Operated Environmental
Laboratories
M184 Government-Owned Operated Environmental Laboratories
S. Utilities
All Classes
V. Transportation, Travel and Relocation Services
All Classes except V503 Travel Agent Services
Notes:
1. All services purchased in support of military forces
overseas will be excluded from coverage by this
Chapter.
2. For services of Canada, suppliers of such services of
Canada, this Chapter will apply to procurements by
the authorities and the power administrations listed
as items 1 through 6 in the U.S. Schedule in Annex
1001.1a-2 (Government Enterprises) and to
procurements by the Bureau of Reclamation of the
Department of Interior only at such time as this
Chapter applies to the procurements by the Canadian
provincial, not including local, hydro utilities.
Appendix 1001.1b-2-A
Temporary Schedule of Services for Mexico
1. Until Mexico has completed its Schedule to Section B of
Annex 1001.1b-2, pursuant to paragraph 2, this Chapter applies
only in respect of the services set out in the Temporary
Schedule.
2. Mexico shall develop and, after consultations with the
other Parties, complete its list of services set out in its
Schedule to Section B of Annex 1001.1b-2 no later than July 1,
1995.
3. When Mexico completes its list pursuant to paragraph 2,
each Party may, after consultation with the other Parties,
review and revise its Schedule to Section B to Annex 1001.1b-2.
Annex 1001.1b-2
Temporary Schedule
Based on the United Nations Central Product Classification
(CPC)
CPC Professional Services
863 Taxation services (excluding legal services)
Architectural services
86711 Advisory and pre-design architectural services
86712 Architectural design services
86713 Contract administration services
86714 Combined architectural design and contract
administration services
86719 Other architectural services
Engineering services
86721 Advisory and consultative engineering services
86722 Engineering design services for foundations and
building structures
86723 Engineering design services for mechanical and
electrical installations for buildings
86724 Engineering design services for civil
engineering construction
86725 Engineering design for industrial processes and
production
86726 Engineering design services n.e.c.
86727 Other engineering services during the
construction and installation phase
86729 Other engineering services
Integrated engineering services
86731 Integrated engineering services for
transportation, infrastructure turnkey projects
86732 Integrated engineering and project management
services for water supply and sanitation works
turnkey projects
86733 Integrated engineering services for the
construction of manufacturing turnkey projects
86739 Integrated engineering services for other
turnkey projects
8674 Urban planning and landscape architectural services
Computer and Related Services
841 Consultancy services related to the installation of
computer hardware
842 Software implementation services, including systems and
software consulting services, systems analysis, design,
programming and maintenance services
843 Data processing services, including processing, tabulation
and facilities management services
Annex 1001.1b-2
844 Data base services
845 Maintenance and repair services of office machinery and
equipment including computers
849 Other computer services
Real Estate Services
821 Real estate services involving own or leased property
822 Real estate services on a fee or contract basis
Rental/Leasing Services without Operators
831 Leasing or rental services concerning machinery and
equipment without operator, including computers
832 Leasing or rental services concerning personal and
household goods (excluding in 83201, the rental of
prerecorded records, sound cassettes, CD's and excluding
83202, rental services concerning video tapes)
Other Business Services
Management consulting services
86501 General management consulting services
86503 Marketing management consulting services
86504 Human resources management consulting services
86505 Production management consulting services
86509 Other management consulting services, including
agrology, agronomy, farm management and related
consulting services
8676 Technical testing and analysis services including quality
control and inspection
8814 Services incidental to forestry and logging, including
forest management
883 Services incidental to mining, including, drilling and
field services
Related scientific and technical consulting services
86751 Geological, geophysical and other scientific
prospecting services, including those related to
mining
86752 Subsurface surveying services
86753 Surface surveying services
86754 Map making services
8861 Repair services incidental to metal products, to machinery
and equipment including computers,
8866 and communications equipment
874 Building-cleaning
876 Packaging services
Environmental Services
940 Sewage and refuse disposal, sanitation and other
environmental protection services, including sewage
Annex 1001.1b-2
services, nature and landscape protection services and
other environmental protection services n.e.c.
Hotels and restaurants (including catering)
641 Hotel and other lodging services
642 Food services
643 Beverage serving services
Travel agency and tour operators services
7471 Travel agency and tour operator services
Annex 1001.1b-2
Appendix 1001.1b-2-B
Common Classification System
Services
Notes:
1. It is understood that the Parties will continue to work on
the development of definitions related to the categories and
other ongoing enhancements to the Classification System.
2. The Parties will continue to review outstanding technical
issues that may arise from time to time.
3. This common classification system follows the format
described below:
Group = one digit
Sub-group = two digit
Class = four digit
A - Research and Development
Definition of research and development contracts:
Procurement of research and development services include
the acquisition of specialized expertise for the purposes
of increasing knowledge in science; applying increased
scientific knowledge or exploiting the potential of
scientific discoveries and improvements in technology to
advance the state of art; and systematically using
increases in scientific knowledge and advances in state of
art to design, develop, test, or evaluate new products or
services.
R&D Codes:
The R&D code is composed of two alphabetic digits. The
first digit is always the letter "A" to identify R&D, the
second digit is alphabetic "A to Z" to identify the major
sub-group.
Code Descriptions
Annex 1001.1b-2
AA Agriculture
AB Community Services and Development
AC Defense Systems
AD Defense - Other
AE Economic Growth and Productivity
AF Education
AG Energy
AH Environmental Protection
AJ General Science and Technology
AK Housing
AL Income Security
AM International Affairs and Cooperation
AN Medical
AP Natural Resources
AQ Social Services
AR Space
AS Transportation - Modal
AT Transportation - General
AV Mining Activities
AZ Other Research and Development
B - Studies and Analysis - (not R&D)
Definition of studies and analysis:
Procurement of special studies and analyses are organized,
analytic assessments that provide insights for
understanding complex issues or improving policy
development or decision making. Output obtained in such
acquisitions is a formal, structured document including
data or other information that form the basis for
conclusions or recommendations.
B0 Natural Sciences
B000 Chemical/Biological Studies and Analyses
B001 Endangered Species Studies - Plant and Animal
B002 Animal and Fisheries Studies
B003 Grazing/Range Studies
B004 Natural Resource Studies
B005 Oceanological Studies
B009 Other Natural Sciences Studies
B1 Environmental Studies
B100 Air Quality Analyses
B101 Environmental Studies Development of Environmental Impact
Annex 1001.1b-2
Statements and Assessments
B102 Soil Studies
B103 Water Quality Studies
B104 Wildlife Studies
B109 Other Environmental Studies
B2 Engineering Studies
B200 Geological Studies
B201 Geophysical Studies
B202 Geotechnical Studies
B203 Scientific Data Studies
B204 Seismological Studies
B205 Building Technology Studies
B206 Energy Studies
B207 Technology Studies
B208 Housing and Community Development Studies (incl.
Urban/Town Planning Studies)
B219 Other Engineering Studies
B3 Administrative Support Studies
B300 Cost Benefit Analyses
B301 Data Analyses (other than scientific)
B302 Feasibility Studies (non-construction)
B303 Mathematical/Statistical Analyses
B304 Regulatory Studies
B305 Intelligence Studies
B306 Defense Studies
B307 Security Studies (Physical and Personal)
B308 Accounting/Financial Management Studies
B309 Trade Issue Studies
B310 Foreign Policy/National Security Policy Studies
B311 Organization/Administrative/Personnel Studies
B312 Mobilization/Preparedness Studies
B313 Manpower Studies
B314 Acquisition Policy/Procedures Studies
B329 Other Administrative Support Studies
B4 Space Studies
B400 Aeronautic/Space Studies
B5 Social Studies and Humanities
B500 Archeological/Paleontological Studies
B501 Historical Studies
B502 Recreation Studies
Annex 1001.1b-2
B503 Medical and Health Studies
B504 Educational Studies and Analyses
B505 Elderly/Handicapped Studies
B506 Economic Studies
B507 Legal Studies
B509 Other Studies and Analyses
C - Architect and Engineering Services
C1 - Architect and Engineering Services - Related To
Construction
C11 Building and Facility Structures
C111 Administrative and Service Buildings
C112 Airfield, Communication and Missile Facilities
C113 Educational Buildings
C114 Hospital Buildings
C115 Industrial Buildings
C116 Residential Buildings
C117 Warehouse Buildings
C118 Research and Development Facilities
C119 Other Buildings
C12 Non-Building Structures
C121 Conservation and Development
C122 Highways, Roads, Streets, Bridges and Railways
C123 Electric Power Generation (EPG)
C124 Utilities
C129 Other Non-Building Structures
C130 Restoration
C2 - Architect and Engineering Services - Not Related to
Construction
C211 Architect - Engineer Services (incl. landscaping, interior
layout and designing)
C212 Engineering Drafting Services
C213 A&E Inspection Services
C214 A&E Management Engineering Services
C215 A&E Production Engineering Services (incl. Design and
Control and Building Programming)
C216 Marine Architect and Engineering Services
C219 Other Architect and Engineering Services
Annex 1001.1b-2
D - Information Processing and Related Telecommunications
Services
D301 ADP Facility Operation and Maintenance Services
D302 ADP Systems Development Services
D303 ADP Data Entry Services
D304 ADP Telecommunications and Transmission Services
D305 ADP Teleprocessing and Timesharing Services
D306 ADP Systems Analysis Services
D307 Automated Information System Design and Integration
Services
D308 Programming Services
D309 Information and Data Broadcasting or Data Distribution
Services
D310 ADP Backup and Security Services
D311 ADP Data Conversion Services
D312 ADP Optical Scanning Services
D313 Computer Aided Design/Computer Aided Manufacturing
(CAD/CAM) Services
D314 ADP System Acquisition Support Services (Includes
preparation of statement of work,
benchmarks,specifications, etc.)
D315 Digitizing Services (Includes cartographic and geographic
information)
D316 Telecommunications Network Management Services
D317 Automated News Services, Data Services, or Other
Information Services. Buying data (the electronic
equivalent of books, periodicals, newspapers, etc.)
D399 Other ADP and Telecommunications Services (incl. data
storage on tapes, Compact Disk (CD), etc.
E - Environmental Services
E101 Air Quality Support Services
E102 Industrial Investigation Surveys and Technical Support
Related to Air Pollution
E103 Water Quality Support Services
E104 Industrial Investigation Surveys and Technical Support
Related to Water Pollution
E106 Toxic Substances Support Services
E107 Hazardous Substance Analysis
E108 Hazardous Substance Removal, Cleanup, and Disposal
Services and Operational Support
E109 Leaking Underground Storage Tank Support Services
E110 Industrial Investigations, Surveys and Technical Support
for Multiple Pollutants
Annex 1001.1b-2
E111 Oil Spill Response including Cleanup, Removal, Disposal
and Operational Support
E199 Other Environmental Services
F - Natural Resources Services
F0 Agriculture and Forestry Services
F001 Forest/Range Fire Suppression/Presuppression Services
(incl. Water Bombing)
F002 Forest/Range Fire Rehabilitation Services
(non-construction)
F003 Forest Tree Planting Services
F004 Land Treatment Practices Services (plowing/clearing, etc.)
F005 Range Seeding Services (ground equipment)
F006 Crop Services (incl. Seed Collection and Production
Services)
F007 Seedling Production/Transplanting Services
F008 Tree Breeding Services (incl. ornamental shrub)
F009 Tree Thinning Services
F010 Other Range/Forest Improvements Services
(non-construction)
F011 Pesticides /Insecticides Support Services
F02 Animal Care / Control Services
F020 Other Wildlife Management Services
F021 Veterinary/Animal Care Services (incl. Livestock Services)
F029 Other Animal Care/Control Services
F03 Fisheries and Ocean Services
F030 Fisheries Resources Management Services
F031 Fish Hatchery Services
F04 Mining
F040 Surface Mining Reclamation Services (non-construction)
F041 Well Drilling
F042 Other Services Incidental to Mining Except Those Listed in
F040 and F041
F05 Other Natural Resources Services
F050 Recreation Site Maintenance Services (non-construction)
F051 Survey Line Clearing Services
F059 Other Natural Resources and Conservation Services
Annex 1001.1b-2
G - Health and Social Services
G0 Health Services
G001 Health Care
G002 Internal Medicine
G003 Surgery
G004 Pathology
G009 Other Health Services
G 1 Social Services
G100 Care of Remains and/or Funeral Services
G101 Chaplain Services
G102 Recreational Services (incl. Entertainment Services)
G103 Social Rehabilitation Services
G104 Geriatric Services
G199 Other Social Services
H - Quality Control, Testing, Inspection and Technical
Representative Services
HO Technical Representative Services
Hl Quality Control Services
H2 Equipment and Materials Testing
H3 Inspection Services (incl. commercial testing and
Laboratory Services,Except Medical/Dental)
H9 Other Quality Control, Testing, Inspection and
TechnicalRepresentative Services
J - Maintenance, Repair, Modification, Rebuilding and
Installation of Goods/Equipment
JO Maintenance, Repair, Modification, Rebuilding and
Installation of Goods/Equipment; includes as examples:
1. Textile Finishing, Dying and Printing
2. Welding services not related to Construction.
(see CPC 5155 for Construction Welding)
Annex 1001.1b-2
J998 Non-nuclear Ship Repair (including overhauls and
conversions)
K - Custodial Operations and Related Services
K0 Personal Care Services (incl. services such as Barber and
Beauty Shop, Shoe Repairs and Tailoring etc.)
K1 Custodial Services
K100 Custodial - Janitorial Services
K101 Fire Protection Services
K102 Food Services
K103 Fueling and Other Petroleum Services - Excluding Storage
K104 Trash/Garbage Collection Services - Including Portable
Sanitation Services
K105 Guard Services
K106 Insect and Rodent Control Services
K107 Landscaping/Groundskeeping Services
K108 Laundry and Dry Cleaning Services
K109 Surveillance Services
K110 Solid Fuel Handling Services
K111 Carpet Cleaning
K112 Interior Plantscaping
K113 Snow Removal/Salt Service (also spreading aggregate or
other snow meltings material)
K114 Waste Treatment and Storage
K115 Preparation and Disposal of Excess and Surplus Property
K116 Other Salvage Services
K199 Other Custodial and Related Services
L - Financial and Related Services
L000 Government Life Insurance Programs
L001 Government Health Insurance Programs
L002 Other Government Insurance Programs
L003 Non-Government Insurance Programs
L004 Other Insurance Services
L005 Credit Reporting Services
L006 Banking Services
L007 Debt Collection Services
L008 Coin Minting
L009 Banknote Printing
L099 Other Financial Services
M - Operation of Government - Owned Facilities
Annex 1001.1b-2
M110 Administrative Facilities and Service Buildings
M120 Airfield, Communications, and Missile Facilities
M130 Educational Buildings
M140 Hospital Buildings
M150 Industrial Buildings
M160 Residential Buildings
M170 Warehouse Buildings
M180 Research and Development Facilities
M190 Other Buildings
M210 Conservation and Development Facilities
M220 Highways, Roads, Streets, Bridges and Railways
M230 Electric Power Generation (EPG) Facilities
M240 Utilities
M290 Other Non-Building Facilities
R - Professional, Administrative and Management Support
Services
R0 Professional Services
R001 Specifications Development Services
R002 Technology Sharing/Utilization Services
R003 Legal Services
R004 Certifications and Accreditations for products and
institutions other than Educational Institutions
R005 Technical Assistance
R006 Technical Writing Services
R007 Systems Engineering Services
R008 Engineering and Technical Services (incl. Mechanical,
Electrical, Chemical, Electronic Engineering)
R009 Accounting Services
R010 Auditing Services
R011 Ongoing Audit Operations Support
R012 Patent and Trade Mark Services
R013 Real Property Appraisals Services
R014 Operations Research Studies / Quantitative Analysis
Studies
R015 Simulation
R016 Personal Services Contracts
R019 Other Professional Services
R1 Administrative and Management Support Services
R100 Intelligence Services
R101 Expert Witness
R102 Weather Reporting/Observation Services
R103 Courier and Messenger Services
Annex 1001.1b-2
R104 Transcription Services
R105 Mailing and Distribution Services (Excluding Post Office
Services)
R106 Post Office Services
R107 Library Services
R108 Word Processing/Typing Services
R109 Translation and Interpreting Services (Including Sign
Language)
R110 Stenographic Services
R111 Personal Property Management Services
R112 Information Retrieval (non-automated)
R113 Data Collection Services
R114 Logistics Support Services
R115 Contract, Procurement, and Acquisition Support Services
R116 Court Reporting Services
R117 Paper Shredding Services
R118 Real Estate Brokerage Services
R119 Industrial Hygienics
R120 Policy Review/Development Services
R121 Program Evaluation Studies
R122 Program Management/Support Services
R123 Program Review/Development Services
R199 Other Administrative and Management Support Services
R2 Personnel Recruitment
R200 Military Personnel Recruitment
R201 Civilian Personnel Recruitment (incl. Services of
Employment Agencies)
S - Utilities
S000 Gas Services
S001 Electric Services
S002 Telephone and/or Communications Services (incl. Telegraph,
Telex and Cablevision Service)
S003 Water Services
S099 Other Utilities
T - Communications, Photographic, Mapping, Printing and
Publication Services
T000 Communications Studies
T001 Market Research and Public Opinion Services (Formerly
Telephone and Field Interview Services incl. Focus
testing, Syndicated and attitude Surveys)
Annex 1001.1b-2
T002 Communications Services (incl. exhibit Services)
T003 Advertising Services
T004 Public Relations Services (incl. Writing Services, Event
Planning and Management, Media Relations, Radio and TV
Analysis, Press Services)
T005 Arts/Graphics Services
T006 Cartography Services
T007 Charting Services
T008 Film Processing Services
T009 Film/Video Tape Production Services
T010 Microfiche Services
T011 Photogrammetry Services
T012 Aerial Photographic Services
T013 General Photographic Services - Still
T014 Print/Binding Services
T015 Reproduction Services
T016 Topography Services
T017 General Photographic Services - Motion
T018 Audio/Visual Services
T019 Land Surveys, Cadastral Services (non-construction)
T099 Other Communication, Photographic, Mapping, Printing and
Publication Services
U - Educational and Training Services
U001 Lectures For Training
U002 Personnel Testing
U003 Reserve Training (Military)
U004 Scientific and Management Education
U005 Tuition, Registration, and Membership Fees
U006 Vocational/Technical
U007 Faculty Salaries for Schools Overseas
U008 Training/Curriculum Development
U009 Informatics Training
U010 Certifications and Accreditations for Educational
Institutions
U099 Other Education and Training Services
V - Transporation, Travel and Relocation Services
V0 Land Transport Services
V000 Motor Pool Operations
V001 Motor Freight
V002 Rail Freight
V003 Motor Charter for Things
Annex 1001.1b-2
V004 Rail Charter for Things
V005 Motor Passenger Service
V006 Rail Passenger Service
V007 Passenger Motor Charter Service
V008 Passenger Rail Charter Service
V009 Ambulance Service
V010 Taxicab Services
V011 Security Vehicle Service
V1 Water Transport Services
V100 Vessel Freight
V101 Marine Charter for Things
V102 Marine Passenger Service
V103 Passenger Marine Charter Service
V2 Air Transport Services
V200 Air Freight
V201 Air Charter for Things
V202 Air Passenger Service
V203 Passenger Air Charter Service
V204 Specialty air Services including Aerial Fertilization,
Spraying and Seeding
V3 Space Transportation and Launch Services
V4 Other Transport Services
V401 Other Transportation Travel and Relocation Services
V402 Other Cargo and Freight Services
V403 Other Vehicle Charter for Transportation of Things
V5 Supporting and Auxiliary Transport Services
V500 Stevedoring
V501 Vessel Towing Service
V502 Relocation Services
V503 Travel Agent Services
V504 Packing/Crating Services
V505 Warehousing and Storage Services
V506 Salvage of Marine Vessels
V507 Salvage of Aircraft
V508 Navigational Aid and Pilotage Services
W - Lease and Rental of Equipment
WO Lease or Rental of Equipment
Annex 1001.1b-2
Annex 1001.1b-3
Construction Services
Section A - General Provisions
1. This Chapter applies to all construction services set out
in Appendix 1001.1b-3-A, except those listed in Section B, that
are procured by the entities listed in Annex
1001.1a-1 and 1001.1a-2.
2. The Parties shall update Appendix 1001.1b-3-A at such
times as they mutually agree.
Section B - Excluded Coverage
Schedule of Canada
The following services contracts are excluded:
1. Dredging
2. Construction contracts tendered by or on behalf of
Department of Transport
Schedule of the United States
The following services contracts are excluded:
Dredging
Note: In accordance with this Chapter, buy national
requirements on articles, supplies and materials
acquired for use in construction contracts covered by
this Chapter shall not apply to goods of Canada or
Mexico.
Annex 1001.1b-3
Appendix 1001.1b-3-A
Common Classification System
Construction Work Codes
Note: Based on the United Nations Central Product
Classification (CPC) Division 51.
Definition of Construction work:
Pre-erection work; new construction and repair,
alteration, restoration and maintenance work on
residential buildings, non-residential buildings or civil
engineering works. This work can be carried out either by
general contractors who do the complete construction work
for the owner of the project, or on own account; or by
subcontracting parts of the construction work to
contractors specializing, e.g., in installation work,
where the value of work done by subcontractors becomes
part of the main contractor s work. The products
classified here are services which are essential in the
production process of the different types of
constructions, the final output of construction
activities.
Code Descriptions
511 Pre-erection work at construction sites
5111 Site investigation work
5112 Demolition work
5113 Site formation and clearance work
5114 Excavating and earthmoving work
5115 Site preparation work for mining (except for mining of oil
and gas which is classified under FO42)
5116 Scaffolding work
512 Construction works for buildings
5121 For one and two dwelling buildings
5122 For multi-dwelling buildings
5123 For warehouses and industrial buildings
5124 For commercial buildings
5125 For public entertainment buildings
Annex 1001.1b-3
5126 For hotel, restaurant and similar buildings
5127 For educational Buildings
5128 For health buildings
5129 For other buildings
513 Construction work for civil engineering
5131 For highways (except elevated highways), streets , roads,
railways and airfield runways
5132 For bridges, elevated highways, tunnels ,subways and
railroads
5133 For waterways, harbours, dams and other water works
5134 For long distance pipelines, communication and power lines
(cables)
5135 For local pipelines and cables; ancillary works
5136 For constructions for mining and manufacturing
5137 For constructions for sport and recreation
5138 Dredging Services
5139 For engineering works n.e.c.
514 Assembly and erection of prefabricated constructions
515 Special trade construction work
5151 Foundation work, including pile driving
5152 Water well drilling
5153 Roofing and water proofing
5154 Concrete work
5155 Steel bending and erection, including welding
5156 Masonry work
5159 Other special trade construction work
516 Installation work
5161 Heating, ventilation and air conditioning work
5162 Water plumbing and drain laying work
5163 Gas fitting construction work
5164 Electrical work
5165 Insulation work (electrical wiring, water, heat, sound)
5166 Fencing and railing construction work
5169 Other installation work
517 Building completion and finishing work
5171 Glazing work and window glass installation work
5172 Plastering work
5173 Painting work
5174 Floor and wall tiling work
Annex 1001.1b-3
5175 Other floor laying, wall covering and wall papering work
5176 Wood and metal joinery and carpentry work
5177 Interior fitting decoration work
5178 Ornamentation fitting work
5179 Other building completion and finishing work
518 Renting services related to equipment for construction or
demolition of buildings or civil engineering works, with
operator.
Annex 1001.1c
Indexation and Conversion of Thresholds
1. The calculations referred to in Article 1001(1)(c) (Scope
and Coverage) shall be made in accordance with the following:
(a) the U.S. inflation rate shall be measured by the
Producer Price Index for Finished Goods published by
the U.S. Bureau of Labor Statistics;
(b) the first adjustment for inflation, to take effect on
January 1, 1996, shall be calculated using the period
from November 1, 1993 through October 31, 1995;
(c) all subsequent adjustments shall be calculated using
two-year periods, each period beginning November 1,
and shall take effect on January 1 of the year
immediately following the end of the two-year period;
(d) the United States shall notify the other Parties of
the adjusted threshold values no later than November
16 of the year before the adjustment takes effect;
and
(e) the inflationary adjustment shall be estimated
according to the following formula
T0 x (1+ i) = T1
T0= threshold value at base period
i= accumulated U.S. inflation rate for the ith two
year-period
T1= new threshold value.
2. Mexico and Canada shall calculate and convert the value of
the thresholds set out in Article 1001(1)(c) into their
national currencies using the conversion formula set out in
paragraph 3 or 4, as appropriate. Mexico and Canada shall
notify each other and the United States of the value, in their
respective currencies, of the newly calculated thresholds no
later than one month before the respective thresholds take
effect.
3. Canada shall base its calculation on the official
conversion rates of the Bank of Canada. From January 1, 1994
through December 31, 1995, the conversion rate shall be the
average of the weekly values of the Canadian dollar in terms of
Annex 1001.1c
the U.S. dollar over the period October 1, 1992 through
September 30, 1993. For each subsequent two-year period
beginning January 1, 1996, its conversion rate shall be the
average of the weekly values of the Canadian dollar in terms of
the U.S. dollar over the two-year period ending September 30 of
the year preceding the beginning of each two-year period.
4. Mexico shall use the conversion rate of the Bank of Mexico
("Banco de M xico"). Its conversion rate shall be the existing
value of the Mexican peso in terms of the U.S. dollar as of
December 1 and June 1 of each year, or the first working day
thereafter. The conversion rate as of December 1 shall apply
from January 1 to June 30 of the following year, and as of June
1 shall apply from July 1 to December 31 of that year.
Annex 1001.2a
Transitional Provisions for Mexico
Notwithstanding any other provision of this Chapter, Annexes
1001.1a-1 through 1001.1b-3 are subject to the following:
Pemex, CFE and Non-Energy Construction
1. Mexico may set aside from the obligations of this Chapter
for a calendar year set out in paragraph 2 the percentage
specified in that paragraph of:
(a) the total value of procurement contracts for goods
and services and any combination thereof and
construction services procured by Pemex in the year
that are above the thresholds set out in Article
1001(1)(c);
(b) the total value of procurement contracts for goods
and services and any combination thereof and
construction services procured by CFE in the year
that are above the thresholds set out in Article
1001(1)(c); and
(c) the total value of procurement contracts for
construction services procured in the year that are
above the thresholds set out in Article 1001(1)(c),
excluding procurement contracts for construction
services procured by Pemex and CFE.
2. The calendar years to which paragraph 1 applies and the
percentages for those calendar years are as follows:
1994 1995 1996 1997 1998
50% 45% 45% 40% 40%
1999 2000 2001 2002 2003 and thereafter
35% 35% 30% 30% 0%
3. The value of procurement contracts that are financed by
loans from regional and multilateral financial institutions
shall not be included in the calculation of the total value of
procurement contracts under paragraphs 1 and 2. Procurement
Annex 1001.2a
contracts that are financed by such loans shall also not be
subject to any restrictions set out in this Chapter.
4. Mexico shall ensure that the total value of procurement
contracts under any single FSC class (or other classification
system agreed by Parties) that are set aside by Pemex or CFE
under paragraphs 1 and 2 for any year does not exceed 10
percent of the total value of the procurement contracts that
may be set aside by Pemex or CFE for that year.
5. Mexico shall ensure that, after December 31, 1998, Pemex
and CFE each shall make all reasonable efforts to ensure that
the total value of procurement contracts under any single FSC
class (or other classification system agreed by the Parties)
that are set aside by Pemex or CFE under paragraphs 1 and 2 for
any year does not exceed 50 percent of the total value of all
Pemex and CFE procurement contracts under that FSC class (or
other classification system agreed by the Parties) for that
year.
Pharmaceuticals
6. Until January 1, 2002, this Chapter shall not apply to the
procurement by the Secretar a de Salud, IMSS, ISSSTE,
Secretar a Defensa Nacional and the Secretar a de Marina of
drugs that are not currently patented in Mexico or whose
Mexican patents have expired. Nothing in this paragraph shall
prejudice rights under Chapter Seventeen (Intellectual
Property).
Time Limits for Tendering and Delivery
7. Mexico shall use its best efforts to comply with the 40-
day time limit requirements of Article 1012, and in any event
shall fully comply with that obligation no later than January
1, 1995.
Provision of Information
8. The Parties recognize that Mexico may be required to
undertake extensive retraining of personnel, introduce new data
maintenance and reporting systems and make major adjustments to
the procurement systems of certain entities in order to comply
with Article 1019. The Parties also recognize that Mexico may
encounter difficulties in making the transition to procurement
systems that facilitate full compliance with this Chapter.
Annex 1001.2a
9. The Parties shall consult on an annual basis for the first
five years after the date of entry into force of this Agreement
to review transitional problems and to develop mutually agreed
solutions. Such solutions may include, when appropriate,
temporary adjustment to the obligations of Mexico under this
Chapter, such as those related to reporting requirements.
10. Canada and the United States shall cooperate with Mexico
to provide technical assistance, as appropriate and mutually
agreed pursuant to Article 1020, to aid Mexico's transition.
11. Nothing in paragraphs 8 through 10 shall be construed to
excuse compliance with the obligations of this Chapter.
Note: The General Notes for Mexico set out in Annex 1001.2b
apply to this Annex.
Annex 1001.2b
General Notes
Schedule of Canada
1. This Chapter does not apply to procurements in respect of:
(a) shipbuilding and repair;
(b) urban rail and urban transportation equipment,
systems, components and materials incorporated there
in as well as all project related materials of iron
or steel;
(c) contracts respecting FSC 58 (communications,
detection and coherent radiation equipment);
(d) set-asides for small and minority businesses;
(e) the Departments of Transport, Communications and
Fisheries and Oceans respecting Federal Supply
Classification (FSC) 70 (automatic data processing
equipment, software supplies and support equipment),
FSC 74 (office machines, text processing systems and
visible record equipment) and FSC 36 (special
industry machinery); and
(f) agricultural products made in furtherance of
agricultural support programs or human feeding
programs.
2. This Chapter does not apply to the procurement of
transportation services that form a part of, or are incidental
to, a procurement contract.
3. Pursuant to Article 1018, national security exemptions
include oil purchases related to any strategic reserve
requirements.
4. National security exceptions include procurements made in
support of safeguarding nuclear materials or technology.
5. The most-favored-nation obligation of Article 1003 does
not apply to procurements covered by Annex 1001.2c.
Schedule of Mexico
Annex 1001.2b
1. This Chapter does not apply to procurements made:
(a) with a view to commercial resale by government-owned
retail stores;
(b) pursuant to loans from regional or multilateral
financial institutions to the extent that different
procedures are imposed by such institutions (except
for national content requirements); or
(c) by one entity from another entity of Mexico.
2. This Chapter does not apply to the procurement of
transportation services that form a part of, or are incidental
to, a procurement contract.
3. Notwithstanding any other provision in this Chapter,
Mexico may set aside procurement contracts from the obligations
of this Chapter, subject to the following:
(a) the total value of the contracts set aside that may
be allocated by all entities, except Pemex and CFE,
may not exceed the Mexican peso equivalent of
(i) US$1.0 billion, in each year until December 31,
2002, and
(ii) US$1.2 billion, in each year beginning January
1, 2003;
(b) no contract may be set aside under this paragraph by
Pemex or CFE prior to January 1, 2003;
(c) the total value of the contracts set aside by Pemex
and CFE under this paragraph may not exceed the
Mexican peso equivalent of US$300 million, in each
year beginning January 1, 2003;
(d) the total value of contracts under any single FSC
class (or other classification system agreed by the
Parties) that may be set aside under this paragraph
in any year shall not exceed 10 percent of the total
value of contracts that may be set aside under this
paragraph for that year; and
(e) no entity subject to subparagraph (a) may set aside
contracts in any year of a value of more than 20
Annex 1001.2b
percent of the total value of contracts that may be
set aside for that year.
4. Beginning one year after the date of entry into force of
this Agreement, the dollar values referred to in paragraph 3
shall be adjusted annually for cumulative inflation from the
date of entry into force of this Agreement, based on the
implicit price deflator for U.S. Gross Domestic Product (GDP)
or any successor index published by the Council of Economic
Advisors in "Economic Indicators".
The dollar values adjusted for cumulative inflation up to
January of each year following 1994 shall be equal to the
original dollar values multiplied by the ratio of:
(a) the implicit U.S. GDP price deflator or any successor
index published by the Council of Economic Advisors
in "Economic Indicators", current as of January of
that year, to
(b) the implicit U.S. GDP price deflator or any successor
index published by the Council of Economic Advisors
in "Economic Indicators", current as of the date of
entry into force of this Agreement,
provided that the price deflators under paragraphs (a) and (b)
have the same base year.
The resulting adjusted dollar values shall be rounded to the
nearest million dollars.
5. National security exceptions include procurements made in
support of safeguarding nuclear materials or technology.
6. Notwithstanding any other provision of this Chapter, an
entity may impose a local content requirement of no more than:
(a) 40 percent, for labor-intensive turnkey or major
integrated projects; or
(b) 25 percent, for capital-intensive turnkey or major
integrated projects.
For purposes of this paragraph, a turnkey or major integrated
project means, in general, a construction, supply or
installation project undertaken by a person pursuant to a right
granted by an entity with respect to which:
Annex 1001.2b
(c) the prime contractor is vested with the authority to
select the general contractors or subcontractors;
(d) neither the Government of Mexico nor its entities
fund the project;
(e) the person bears the risks associated with non-
performance; and
(f) the facility will be operated by an entity or through
a procurement contract of that entity.
7. Notwithstanding the thresholds set out in Article
1001(1)(c), Article 1003 shall apply to any procurement from
locally-established suppliers of oil and gas field supplies or
equipment by Pemex at any project site where it performs works.
8. In the event that Mexico exceeds in any given year the
total value of the contracts it may set aside for that year in
accordance with paragraph 3 or the reserved procurement under
Annex 1001.2a(1)(2) or (4), Mexico shall consult with the other
Parties with a view to agreement on compensation in the form of
additional procurement opportunities during the following year.
The consultations shall be without prejudice to the rights of
any Party under Chapter Twenty (Institutional Arrangements and
Dispute Settlement Procedures).
9. Notwithstanding Annex 1001.2a(6), Mexico may not set aside
from the obligations of this Chapter procurement contracts by
its entities of biologicals and drugs patented in Mexico.
10. Nothing in this Chapter shall be construed to require
Pemex to enter into risk-sharing contracts.
Schedule of the United States
1. This Chapter does not apply to set asides on behalf of
small and minority businesses.
2. This Chapter does not apply to the procurement of
transportation services that form a part of, or are incidental
to, a procurement contract.
3. The most-favored-nation obligation of Article 1003 does
not apply to procurements covered by Annex 1001.2c.
Annex 1001.2c
Country-Specific Thresholds
As between Canada and United States,
(a) for any entity listed in the Schedule of Canada or of
the United States in Annex 1001.1a-1, the applicable
threshold for goods contracts, which may include
incidental services such as delivery and
transportation, shall be US$25,000 and the equivalent
in Canadian dollars, as the case may be;
(b) Annex 1001.1c, except paragraphs 2 and 3 of that
Annex for the purpose of calculating and converting
the value of the threshold set out in subparagraph
(a), does not apply to such goods contracts; and
(c) Chapter Thirteen of the Canada - United States Free
Trade Agreement shall govern any procurement
procedures that began before January 1, 1994, and
that Chapter is hereby incorporated and made a part
of this Agreement solely for that purpose.
Annex 1010.1
Publications
Section A - Publications for Notices of Procurement
in Accordance with Article 1010 (Invitation to Participate)
Schedule of Canada
1. Government Business Opportunities (GBO)
2. Open Bidding Service, ISM Publishing
Schedule of Mexico
1. Major daily newspapers of national circulation or the
Official Gazette of the Federation ("Diario Oficial de la
Federaci n").
2. Mexico shall endeavor to establish a specialized
publication for purposes of notices of procurement. When
established, the publication shall substitute for those
referred to in paragraph 1.
Schedule of United States
Commerce Business Daily (CBD)
Section B - Publications for Measures
in Accordance with Article 1019 (Provision of Information)
Schedule of Canada
1. Laws and regulations:
(a) Statutes of Canada; and
(b) Canada Gazette.
2. Precedential judicial decisions:
(a) Dominion Law Reports;
(b) Supreme Court Reports;
(c) Federal Court Reports; and
(d) National Reporter.
Annex 1010.1
3. Administrative rulings and procedures:
(a) Government Business Opportunities; and
(b) Canada Gazette.
Schedule of Mexico
1. Official Gazette of the Federation ("Diario Oficial de la
Federaci n")
2. Judicial Weekly of the Federation ("Semanario Judicial de
la Federaci n") (for precedential judicial decisions only).
3. Mexico shall endeavor to establish a specialized
publication for administrative rulings of general application
and any procedure, including standard contract clauses
regarding procurements. When established, the publication
shall substitute for those set out in paragraphs 1 and 2 for
this purpose.
Schedule of United States
1. Laws and regulations:
(a) U.S. Statutes at Large
(b) U.S. Code of Federal Regulations.
2. Precedential decisions:
(a) U.S. Reports (U.S. Supreme Court);
(b) Federal Reporter (Circuit Court of Appeals);
(c) Federal Supplement Reporter (District Courts);
(d) Claims Court Reporter (Claims Court);
(e) Boards of Contract Appeals (unofficial publication by
Commerce Clearing House); and
(f) Comptroller General of the United States (Those not
officially published as decisions of the Comptroller
General are published unofficially by Federal
Publications, Inc.).
3. All U.S. laws, regulations, judicial decisions,
administrative rulings and procedures regarding government
procurement covered by this Chapter are codified in the Defense
Federal Acquisition Regulation Supplement (DFARS) and the
Federal Acquisition Regulation (FAR), both of which are
Annex 1010.1
published as a part of the U.S. Code of Federal Regulations
(CFR). The DFARS and the FAR are published in title 48 of CFR.
Title:Investment, Services and Related Matters - CHapter Eleven
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:69971
PART FIVE
INVESTMENT, SERVICES AND RELATED MATTERS
Chapter Eleven
Investment
Section A - Investment
Article 1101: Scope and Coverage
1. This Chapter applies to measures adopted or maintained by
a Party relating to:
(a) investors of another Party;
(b) investments of investors of another Party in the
territory of the Party; and
(c) with respect to Articles 1106 and 1114, all
investments in the territory of the Party.
2. A Party has the right to perform exclusively the economic
activities set out in Annex III and to refuse to permit the
establishment of investment in such activities.
3. This Chapter does not apply to measures adopted or
maintained by a Party to the extent that they are covered by
Chapter Fourteen (Financial Services).
4. Nothing in this Chapter shall be construed to prevent a
Party from providing a service or performing a function such as
law enforcement, correctional services, income security or
insurance, social security or insurance, social welfare, public
education, public training, health, and child care, in a manner
that is not inconsistent with this Chapter.
Article 1102: National Treatment
1. Each Party shall accord to investors of another Party
treatment no less favorable than that it accords, in like
circumstances, to its own investors with respect to the
establishment, acquisition, expansion, management, conduct,
operation, and sale or other disposition of investments.
2. Each Party shall accord to investments of investors of
another Party treatment no less favorable than that it accords,
in like circumstances, to investments of its own investors with
respect to the establishment, acquisition, expansion,
management, conduct, operation, and sale or other disposition
of investments.
3. The treatment accorded by a Party under paragraphs 1 and 2
means, with respect to a state or province, treatment no less
favorable than the most favorable treatment accorded, in like
circumstances, by that state or province to investors, and to
investments of investors, of the Party of which it forms a
part.
4. For greater certainty, no Party may:
(a) impose on an investor of another Party a requirement
that a minimum level of equity in an enterprise in
the territory of the Party be held by its nationals,
other than nominal qualifying shares for directors or
incorporators of corporations; or
(b) require an investor of another Party, by reason of
its nationality, to sell or otherwise dispose of an
investment in the territory of the Party.
Article 1103: Most-Favored-Nation Treatment
1. Each Party shall accord to investors of another Party
treatment no less favorable than that it accords, in like
circumstances, to investors of any other Party or of a non-
Party with respect to the establishment, acquisition,
expansion, management, conduct, operation, and sale or other
disposition of investments.
2. Each Party shall accord to investments of investors of
another Party treatment no less favorable than that it accords,
in like circumstances, to investments of investors of any other
Party or of a non-Party with respect to the establishment,
acquisition, expansion, management, conduct, operation, and
sale or other disposition of investments.
Article 1104: Standard of Treatment
Each Party shall accord to investors of another Party and
to investments of investors of another Party the better of the
treatment required by Articles 1102 and 1103.
Article 1105: Minimum Standard of Treatment
1. Each Party shall accord to investments of investors of
another Party treatment in accordance with international law,
including fair and equitable treatment and full protection and
security.
2. Without prejudice to paragraph 1 and notwithstanding
Article 1108(7)(b), each Party shall accord to investors of
another Party, and to investments of investors of another
Party, non-discriminatory treatment with respect to measures it
adopts or maintains relating to losses suffered by investments
in its territory owing to armed conflict or civil strife.
3. Paragraph 2 does not apply to existing measures relating
to subsidies or grants that would be inconsistent with Article
1102 but for Article 1108(7)(b).
Article 1106: Performance Requirements
1. No Party may impose or enforce any of the following
requirements, or enforce any commitment or undertaking, in
connection with the establishment, acquisition, expansion,
management, conduct or operation of an investment of an
investor of a Party or of a non-Party in its territory:
(a) to export a given level or percentage of goods or
services;
(b) to achieve a given level or percentage of domestic
content;
(c) to purchase, use or accord a preference to goods
produced or services provided in its territory, or to
purchase goods or services from persons in its
territory;
(d) to relate in any way the volume or value of imports
to the volume or value of exports or to the amount of
foreign exchange inflows associated with such
investment;
(e) to restrict sales of goods or services in its
territory that such investment produces or provides
by relating such sales in any way to the volume or
value of its exports or foreign exchange earnings;
(f) to transfer technology, a production process or other
proprietary knowledge to a person in its territory,
except when the requirement is imposed or the
commitment or undertaking is enforced by a court,
administrative tribunal or competition authority to
remedy an alleged violation of competition laws or to
act in a manner not inconsistent with other
provisions of this Agreement; or
(g) to act as the exclusive supplier of the goods it
produces or services it provides to a specific region
or world market.
2. A measure that requires an investment to use a technology
to meet generally applicable health, safety or environmental
requirements shall not be construed to be inconsistent with
paragraph 1(f). For greater certainty, Articles 1102 and 1103
apply to the measure.
3. No Party may condition the receipt or continued receipt of
an advantage, in connection with an investment in its territory
of an investor of a Party or of a non-Party, on compliance with
any of the following requirements:
(a) to achieve a given level or percentage of domestic
content;
(b) to purchase, use or accord a preference to goods
produced in its territory, or to purchase goods from
producers in its territory;
(c) to relate in any way the volume or value of imports
to the volume or value of exports or to the amount of
foreign exchange inflows associated with such
investment; or
(d) to restrict sales of goods or services in its
territory that such investment produces or provides
by relating such sales in any way to the volume or
value of its exports or foreign exchange earnings.
4. Nothing in paragraph 3 shall be construed to prevent a
Party from conditioning the receipt or continued receipt of an
advantage, in connection with an investment in its territory of
an investor of a Party or of a non-Party, on compliance with a
requirement to locate production, provide a service, train or
employ workers, construct or expand particular facilities, or
carry out research and development, in its territory.
5. Paragraphs 1 and 3 do not apply to any requirement other
than the requirements set out in those paragraphs.
6. Provided that such measures are not applied in an
arbitrary or unjustifiable manner, or do not constitute a
disguised restriction on international trade or investment,
nothing in paragraph 1(b) or (c) or 3(a) or (b) shall be
construed to prevent any Party from adopting or maintaining
measures, including environmental measures:
(a) necessary to secure compliance with laws and
regulations that are not inconsistent with the
provisions of this Agreement;
(b) necessary to protect human, animal or plant life or
health; or
(c) necessary for the conservation of living or non-
living exhaustible natural resources.
Article 1107: Senior Management and Boards of Directors
1. No Party may require that an enterprise of that Party that
is an investment of an investor of another Party appoint to
senior management positions individuals of any particular
nationality.
2. A Party may require that a majority of the board of
directors, or any committee thereof, of an enterprise of that
Party that is an investment of an investor of another Party, be
of a particular nationality, or resident in the territory of
the Party, provided that the requirement does not materially
impair the ability of the investor to exercise control over its
investment.
Article 1108: Reservations and Exceptions
1. Articles 1102, 1103, 1106 and 1107 do not apply to:
(a) any existing non-conforming measure that is
maintained by
(i) a Party at the federal level, as set out in its
Schedule to Annex I or III,
(ii) a state or province, for two years after the
date of entry into force of this Agreement, and
thereafter as set out by a Party in its Schedule
to Annex I in accordance with paragraph 2, or
(iii) a local government;
(b) the continuation or prompt renewal of any
non-conforming measure referred to in subparagraph
(a); or
(c) an amendment to any non-conforming measure referred
to in subparagraph (a) to the extent that the
amendment does not decrease the conformity of the
measure, as it existed immediately before the
amendment, with Articles 1102, 1103, 1106 and 1107.
2. Each Party may set out in its Schedule to Annex I, within
two years of the date of entry into force of this Agreement,
any existing non-conforming measure maintained by a state or
province, not including a local government.
3. Articles 1102, 1103, 1106 and 1107 do not apply to any
measure that a Party adopts or maintains with respect to
sectors, subsectors or activities, as set out in its Schedule
to Annex II.
4. No Party may, under any measure adopted after the date of
entry into force of this Agreement and covered by its Schedule
to Annex II, require an investor of another Party, by reason of
its nationality, to sell or otherwise dispose of an investment
existing at the time the measure becomes effective.
5. Articles 1102 and 1103 do not apply to any measure that is
an exception to, or derogation from, the obligations under
Article 1703 (Intellectual Property - National Treatment) as
specifically provided for in that Article.
6. Article 1103 does not apply to treatment accorded by a
Party pursuant to agreements, or with respect to sectors, set
out in its Schedule to Annex IV.
7. Articles 1102, 1103 and 1107 do not apply to:
(a) procurement by a Party or a state enterprise; or
(b) subsidies or grants provided by a Party or a state
enterprise, including government-supported loans,
guarantees and insurance.
8. The provisions of:
(a) Article 1106(1)(a), (b) and (c), and (3)(a) and (b)
do not apply to qualification requirements for goods
or services with respect to export promotion and
foreign aid programs;
(b) Article 1106(1)(b), (c), (f) and (g), and (3)(a) and
(b) do not apply to procurement by a Party or a state
enterprise; and
(c) Article 1106(3)(a) and (b) do not apply to
requirements imposed by an importing Party relating
to the content of goods necessary to qualify for
preferential tariffs or preferential quotas.
Article 1109: Transfers
1. Each Party shall permit all transfers relating to an
investment of an investor of another Party in the territory of
the Party to be made freely and without delay. Such transfers
include:
(a) profits, dividends, interest, capital gains, royalty
payments, management fees, technical assistance and
other fees, returns in kind and other amounts derived
from the investment;
(b) proceeds from the sale of all or any part of the
investment or from the partial or complete
liquidation of the investment;
(c) payments made under a contract entered into by the
investor, or its investment, including payments made
pursuant to a loan agreement;
(d) payments made pursuant to Article 1110; and
(e) payments arising under Section B.
2. Each Party shall permit transfers to be made in a freely
usable currency at the market rate of exchange prevailing on
the date of transfer with respect to spot transactions in the
currency to be transferred.
3. No Party may require its investors to transfer, or
penalize its investors that fail to transfer, the income,
earnings, profits or other amounts derived from, or
attributable to, investments in the territory of another Party.
4. Notwithstanding paragraphs 1 and 2, a Party may prevent a
transfer through the equitable, non-discriminatory and good
faith application of its laws relating to:
(a) bankruptcy, insolvency or the protection of the
rights of creditors;
(b) issuing, trading or dealing in securities;
(c) criminal or penal offenses;
(d) reports of transfers of currency or other monetary
instruments; or
(e) ensuring the satisfaction of judgments in
adjudicatory proceedings.
5. Paragraph 3 shall not be construed to prevent a Party from
imposing any measure through the equitable, non-discriminatory
and good faith application of its laws relating to the matters
set out in subparagraphs (a) through (e) of paragraph 4.
6. Notwithstanding paragraph 1, a Party may restrict
transfers of returns in kind in circumstances where it could
otherwise restrict such transfers under this Agreement,
including as set out in paragraph 4.
Article 1110: Expropriation and Compensation
1. No Party may directly or indirectly nationalize or
expropriate an investment of an investor of another Party in
its territory or take a measure tantamount to nationalization
or expropriation of such an investment ("expropriation"),
except:
(a) for a public purpose;
(b) on a non-discriminatory basis;
(c) in accordance with due process of law and Article
1105(1); and
(d) on payment of compensation in accordance with
paragraphs 2 through 6.
2. Compensation shall be equivalent to the fair market value
of the expropriated investment immediately before the
expropriation took place ("date of expropriation"), and shall
not reflect any change in value occurring because the intended
expropriation had become known earlier. Valuation criteria
shall include going concern value, asset value including
declared tax value of tangible property, and other criteria, as
appropriate, to determine fair market value.
3. Compensation shall be paid without delay and be fully
realizable.
4. If payment is made in a G7 currency, compensation shall
include interest at a commercially reasonable rate for that
currency from the date of expropriation until the date of
actual payment.
5. If a Party elects to pay in a currency other than a G7
currency, the amount paid on the date of payment, if converted
into a G7 currency at the market rate of exchange prevailing on
that date, shall be no less than if the amount of compensation
owed on the date of expropriation had been converted into that
G7 currency at the market rate of exchange prevailing on that
date, and interest had accrued at a commercially reasonable
rate for that G7 currency from the date of expropriation until
the date of payment.
6. On payment, compensation shall be freely transferable as
provided in Article 1109.
7. This Article does not apply to the issuance of compulsory
licenses granted in relation to intellectual property rights,
or to the revocation, limitation or creation of intellectual
property rights, to the extent that such issuance, revocation,
limitation or creation is consistent with Chapter Seventeen
(Intellectual Property).
8. For purposes of this Article and for greater certainty, a
non-discriminatory measure of general application shall not be
considered a measure tantamount to an expropriation of a debt
security or loan covered by this Chapter solely on the ground
that the measure imposes costs on the debtor that cause it to
default on the debt.
Article 1111: Special Formalities and Information Requirements
1. Nothing in Article 1102 shall be construed to prevent a
Party from adopting or maintaining a measure that prescribes
special formalities in connection with the establishment of
investments by investors of another Party, such as a
requirement that investors be residents of the Party or that
investments be legally constituted under the laws or
regulations of the Party, provided that such formalities do not
materially impair the protections afforded by a Party to
investors of another Party and investments of investors of
another Party pursuant to this Chapter.
2. Notwithstanding Articles 1102 or 1103, a Party may require
an investor of another Party, or its investment in its
territory, to provide routine information concerning that
investment solely for informational or statistical purposes.
The Party shall protect such business information that is
confidential from any disclosure that would prejudice the
competitive position of the investor or the investment.
Nothing in this paragraph shall be construed to prevent a Party
from otherwise obtaining or disclosing information in
connection with the equitable and good faith application of its
law.
Article 1112: Relation to Other Chapters
1. In the event of any inconsistency between this Chapter
and another Chapter, the other Chapter shall prevail to the
extent of the inconsistency.
2. A requirement by a Party that a service provider of
another Party post a bond or other form of financial security
as a condition of providing a service into its territory does
not of itself make this Chapter applicable to the provision of
that cross-border service. This Chapter applies to that
Party's treatment of the posted bond or financial security.
Article 1113: Denial of Benefits
1. A Party may deny the benefits of this Chapter to an
investor of another Party that is an enterprise of such Party
and to investments of such investor if investors of a non-Party
own or control the enterprise and the denying Party:
(a) does not maintain diplomatic relations with the non-
Party; or
(b) adopts or maintains measures with respect to the
non-Party that prohibit transactions with the
enterprise or that would be violated or circumvented
if the benefits of this Chapter were accorded to the
enterprise or to its investments.
2. Subject to prior notification and consultation in
accordance with Articles 1803 (Notification and Provision of
Information) and 2006 (Consultations), a Party may deny the
benefits of this Chapter to an investor of another Party that
is an enterprise of such Party and to investments of such
investors if investors of a non-Party own or control the
enterprise and the enterprise has no substantial business
activities in the territory of the Party under whose law it is
constituted or organized.
Article 1114: Environmental Measures
1. Nothing in this Chapter shall be construed to prevent a
Party from adopting, maintaining or enforcing any measure
otherwise consistent with this Chapter that it considers
appropriate to ensure that investment activity in its territory
is undertaken in a manner sensitive to environmental concerns.
2. The Parties recognize that it is inappropriate to
encourage investment by relaxing domestic health, safety or
environmental measures. Accordingly, a Party should not waive
or otherwise derogate from, or offer to waive or otherwise
derogate from, such measures as an encouragement for the
establishment, acquisition, expansion or retention in its
territory of an investment of an investor. If a Party
considers that another Party has offered such an encouragement,
it may request consultations with the other Party and the two
Parties shall consult with a view to avoiding any such
encouragement.
Section B - Settlement of Disputes between a Party and
an Investor of Another Party
Article 1115: Purpose
Without prejudice to the rights and obligations of the
Parties under Chapter Twenty (Institutional Arrangements and
Dispute Settlement Procedures), this Section establishes a
mechanism for the settlement of investment disputes that
assures both equal treatment among investors of the Parties in
accordance with the principle of international reciprocity and
due process before an impartial tribunal.
Article 1116: Claim by an Investor of a Party on Its Own
Behalf
1. An investor of a Party may submit to arbitration under
this Section a claim that another Party has breached an
obligation under:
(a) Section A or Article 1503(2) (State Enterprises), or
(b) Article 1502(3)(a) (Monopolies and State Enterprises)
where the monopoly has acted in a manner inconsistent
with the Party's obligations under Section A,
and that the investor has incurred loss or damage by reason of,
or arising out of, that breach.
2. An investor may not make a claim if more than three years
have elapsed from the date on which the investor first
acquired, or should have first acquired, knowledge of the
alleged breach and knowledge that the investor has incurred
loss or damage.
Article 1117: Claim by an Investor of a Party on Behalf of an
Enterprise
1. An investor of a Party, on behalf of an enterprise of
another Party that is a juridical person that the investor owns
or controls directly or indirectly, may submit to arbitration
under this Section a claim that the other Party has breached an
obligation under:
(a) Section A or Article 1503(2) (State Enterprises), or
(b) Article 1502(3)(a) (Monopolies and State Enterprises)
where the monopoly has acted in a manner inconsistent
with the Party's obligations under Section A,
and that the enterprise has incurred loss or damage by reason
of, or arising out of, that breach.
2. An investor may not make a claim on behalf of an
enterprise described in paragraph 1 if more than three years
have elapsed from the date on which the enterprise first
acquired, or should have first acquired, knowledge of the
alleged breach and knowledge that the enterprise has incurred
loss or damage.
3. Where an investor makes a claim under this Article and the
investor or a non-controlling investor in the enterprise makes
a claim under Article 1116 arising out of the same events that
gave rise to the claim under this Article, and two or more of
the claims are submitted to arbitration under Article 1120, the
claims should be heard together by a Tribunal established under
Article 1126, unless the Tribunal finds that the interests of a
disputing party would be prejudiced thereby.
4. An investment may not make a claim under this Section.
Article 1118: Settlement of a Claim through Consultation and
Negotiation
The disputing parties should first attempt to settle a
claim through consultation or negotiation.
Article 1119: Notice of Intent to Submit a Claim to
Arbitration
The disputing investor shall deliver to the disputing
Party written notice of its intention to submit a claim to
arbitration at least 90 days before the claim is submitted,
which notice shall specify:
(a) the name and address of the disputing investor and,
where a claim is made under Article 1117, the name
and address of the enterprise;
(b) the provisions of this Agreement alleged to have been
breached and any other relevant provisions;
(c) the issues and the factual basis for the claim; and
(d) the relief sought and the approximate amount of
damages claimed.
Article 1120: Submission of a Claim to Arbitration
1. Except as provided in Annex 1120.1, and provided that six
months have elapsed since the events giving rise to a claim, a
disputing investor may submit the claim to arbitration under:
(a) the ICSID Convention, provided that both the
disputing Party and the Party of the investor are
parties to the Convention;
(b) the Additional Facility Rules of ICSID, provided that
either the disputing Party or the Party of the
investor, but not both, is a party to the ICSID
Convention; or
(c) the UNCITRAL Arbitration Rules.
2. The applicable arbitration rules shall govern the
arbitration except to the extent modified by this Section.
Article 1121: Conditions Precedent to Submission of a Claim to
Arbitration
1. A disputing investor may submit a claim under Article 1116
to arbitration only if:
(a) the investor consents to arbitration in accordance
with the procedures set out in this Agreement; and
(b) the investor and, where the claim is for loss or
damage to an interest in an enterprise of another
Party that is a juridical person that the investor
owns or controls directly or indirectly, the
enterprise, waive their right to initiate or continue
before any administrative tribunal or court under the
law of any Party, or other dispute settlement
procedures, any proceedings with respect to the
measure of the disputing Party that is alleged to be
a breach referred to in Article 1116, except for
proceedings for injunctive, declaratory or other
extraordinary relief, not involving the payment of
damages, before an administrative tribunal or court
under the law of the disputing Party.
2. A disputing investor may submit a claim under Article 1117
to arbitration only if both the investor and the enterprise:
(a) consent to arbitration in accordance with the
procedures set out in this Agreement; and
(b) waive their right to initiate or continue before any
administrative tribunal or court under the law of any
Party, or other dispute settlement procedures, any
proceedings with respect to the measure of the
disputing Party that is alleged to be a breach
referred to in Article 1117, except for proceedings
for injunctive, declaratory or other extraordinary
relief, not involving the payment of damages, before
an administrative tribunal or court under the law of
the disputing Party.
3. A consent and waiver required by this Article shall be in
writing, shall be delivered to the disputing Party and shall be
included in the submission of a claim to arbitration.
4. Only where a disputing Party has deprived a disputing
investor of control of an enterprise:
(a) a waiver from the enterprise under paragraph 1(b) or
2(b) shall not be required; and
(b) Annex 1120.1(A)(b) shall not apply.
Article 1122: Consent to Arbitration
1. Each Party consents to the submission of a claim to
arbitration in accordance with the procedures set out in this
Agreement.
2. The consent given by paragraph 1 and the submission by a
disputing investor of a claim to arbitration shall satisfy the
requirement of:
(a) Chapter II of the ICSID Convention (Jurisdiction of
the Centre) and the Additional Facility Rules for
written consent of the parties;
(b) Article II of the New York Convention for an
agreement in writing; and
(c) Article I of the Inter-American Convention for an
agreement.
Article 1123: Number of Arbitrators and Method of Appointment
Except in respect of a Tribunal established under Article
1126, and unless the disputing parties otherwise agree, the
Tribunal shall comprise three arbitrators, one arbitrator
appointed by each of the disputing parties and the third, who
shall be the presiding arbitrator, appointed by agreement of
the disputing parties.
Article 1124: Constitution of a Tribunal When a Party Fails to
Appoint an Arbitrator or the Disputing Parties
Are Unable to Agree on a Presiding Arbitrator
1. The Secretary-General shall serve as appointing authority
for an arbitration under this Section.
2. If a Tribunal, other than a Tribunal established under
Article 1126, has not been constituted within 90 days from the
date that a claim is submitted to arbitration, the Secretary-
General, on the request of either disputing party, shall
appoint, in his discretion, the arbitrator or arbitrators not
yet appointed, except that the presiding arbitrator shall be
appointed in accordance with paragraph 3.
3. The Secretary-General shall appoint the presiding
arbitrator from the roster of presiding arbitrators referred to
in paragraph 4, provided that the presiding arbitrator shall
not be a national of the disputing Party or a national of the
Party of the disputing investor. In the event that no such
presiding arbitrator is available to serve, the Secretary-
General shall appoint, from the ICSID Panel of Arbitrators, a
presiding arbitrator who is not a national of any of the
Parties.
4. On the date of entry into force of this Agreement, the
Parties shall establish, and thereafter maintain, a roster of
45 presiding arbitrators meeting the qualifications of the
Convention and rules referred to in Article 1120 and
experienced in international law and investment matters. The
roster members shall be appointed by consensus and without
regard to nationality.
Article 1125: Agreement to Appointment of Arbitrators
For purposes of Article 39 of the ICSID Convention and
Article 7 of Schedule C to the ICSID Additional Facility Rules,
and without prejudice to an objection to an arbitrator based on
Article 1124(3) or on a ground other than nationality:
(a) the disputing Party agrees to the appointment of each
individual member of a Tribunal established under the
ICSID Convention or the ICSID Additional Facility
Rules;
(b) a disputing investor referred to in Article 1116 may
submit a claim to arbitration, or continue a claim,
under the ICSID Convention or the ICSID Additional
Facility Rules, only on condition that the disputing
investor agrees in writing to the appointment of each
individual member of the Tribunal; and
(c) a disputing investor referred to in Article 1117(1)
may submit a claim to arbitration, or continue a
claim, under the ICSID Convention or the ICSID
Additional Facility Rules, only on condition that the
disputing investor and the enterprise agree in
writing to the appointment of each individual member
of the Tribunal.
Article 1126: Consolidation
1. A Tribunal established under this Article shall be
established under the UNCITRAL Arbitration Rules and shall
conduct its proceedings in accordance with those Rules, except
as modified by this Section.
2. Where a Tribunal established under this Article is
satisfied that claims have been submitted to arbitration under
Article 1120 that have a question of law or fact in common, the
Tribunal may, in the interests of fair and efficient resolution
of the claims, and after hearing the disputing parties, by
order:
(a) assume jurisdiction over, and hear and determine
together, all or part of the claims; or
(b) assume jurisdiction over, and hear and determine one
or more of the claims, the determination of which it
believes would assist in the resolution of the
others.
3. A disputing party that seeks an order under paragraph 2
shall request the Secretary-General to establish a Tribunal and
shall specify in the request:
(a) the name of the disputing Party or disputing
investors against which the order is sought;
(b) the nature of the order sought; and
(c) the grounds on which the order is sought.
4. The disputing party shall deliver to the disputing Party
or disputing investors against which the order is sought a copy
of the request.
5. Within 60 days of receipt of the request, the Secretary-
General shall establish a Tribunal comprising three
arbitrators. The Secretary-General shall appoint the presiding
arbitrator from the roster referred to in Article 1124(4). In
the event that no such presiding arbitrator is available to
serve, the Secretary-General shall appoint, from the ICSID
Panel of Arbitrators, a presiding arbitrator who is not a
national of any of the Parties. The Secretary-General shall
appoint the two other members from the roster referred to in
Article 1124(4), and to the extent not available from that
roster, from the ICSID Panel of Arbitrators, and to the extent
not available from that Panel, in the discretion of the
Secretary-General. One member shall be a national of the
disputing Party and one member shall be a national of a Party
of the disputing investors.
6. Where a Tribunal has been established under this Article,
a disputing investor that has submitted a claim to arbitration
under Article 1116 or 1117 and that has not been named in a
request made under paragraph 3 may make a written request to
the Tribunal that it be included in an order made under
paragraph 2, and shall specify in the request:
(a) the name and address of the disputing investor;
(b) the nature of the order sought; and
(c) the grounds on which the order is sought.
7. A disputing investor referred to in paragraph 6 shall
deliver a copy of its request to the disputing parties named in
a request made under paragraph 3.
8. A Tribunal established under Article 1120 shall not have
jurisdiction to decide a claim, or a part of a claim, over
which a Tribunal established under this Article has assumed
jurisdiction.
9. On application of a disputing party, a Tribunal
established under this Article, pending its decision under
paragraph 2, may order that the proceedings of a Tribunal
established under Article 1120 be stayed, unless the latter
Tribunal has already adjourned its proceedings.
10. A disputing Party shall deliver to the Secretariat, within
15 days of receipt by the disputing Party, a copy of:
(a) a request for arbitration made under paragraph (1) of
Article 36 of the ICSID Convention;
(b) a notice of arbitration made under Article 2 of
Schedule C of the ICSID Additional Facility Rules; or
(c) a notice of arbitration given under the UNCITRAL
Arbitration Rules.
11. A disputing Party shall deliver to the Secretariat a copy
of a request made under paragraph 3:
(a) within 15 days of receipt of the request, in the case
of a request made by a disputing investor;
(b) within 15 days of making the request, in the case of
a request made by the disputing Party.
12. A disputing Party shall deliver to the Secretariat a copy
of a request made under paragraph 6 within 15 days of receipt
of the request.
13. The Secretariat shall maintain a public register of the
documents referred to in paragraphs 10, 11 and 12.
Article 1127: Notice
A disputing Party shall deliver to the other Parties:
(a) written notice of a claim that has been submitted to
arbitration no later than 30 days after the date that
the claim is submitted; and
(b) copies of all pleadings filed in the arbitration.
Article 1128: Participation by a Party
On written notice to the disputing parties, a Party may
make submissions to a Tribunal on a question of interpretation
of this Agreement.
Article 1129: Documents
1. A Party shall be entitled to receive from the
disputing Party, at the cost of the requesting Party a copy of:
(a) the evidence that has been tendered to the Tribunal;
and
(b) the written argument of the disputing parties.
2. A Party receiving information pursuant to paragraph 1
shall treat the information as if it were a disputing Party.
Article 1130: Place of Arbitration
Unless the disputing parties agree otherwise, a Tribunal
shall hold an arbitration in the territory of a Party that is a
party to the New York Convention, selected in accordance with:
(a) the ICSID Additional Facility Rules if the
arbitration is under those Rules or the ICSID
Convention; or
(b) the UNCITRAL Arbitration Rules if the arbitration is
under those Rules.
Article 1131: Governing Law
1. A Tribunal established under this Section shall decide the
issues in dispute in accordance with this Agreement and
applicable rules of international law.
2. An interpretation by the Commission of a provision of this
Agreement shall be binding on a Tribunal established under this
Section.
Article 1132: Interpretation of Annexes
1. Where a disputing Party asserts as a defense that the
measure alleged to be a breach is within the scope of a
reservation or exception set out in Annex I, Annex II, Annex
III or Annex IV, on request of the disputing Party, the
Tribunal shall request the interpretation of the Commission on
the issue. The Commission, within 60 days of delivery of the
request, shall submit in writing its interpretation to the
Tribunal.
2. Further to Article 1131(2), a Commission interpretation
submitted under paragraph 1 shall be binding on the Tribunal.
If the Commission fails to submit an interpretation within 60
days, the Tribunal shall decide the issue.
Article 1133: Expert Reports
Without prejudice to the appointment of other kinds of
experts where authorized by the applicable arbitration rules, a
Tribunal, at the request of a disputing party or, unless the
disputing parties disapprove, on its own initiative, may
appoint one or more experts to report to it in writing on any
factual issue concerning environmental, health, safety or other
scientific matters raised by a disputing party in a proceeding,
subject to such terms and conditions as the disputing parties
may agree.
Article 1134: Interim Measures of Protection
A Tribunal may order an interim measure of protection to
preserve the rights of a disputing party, or to ensure that the
Tribunal's jurisdiction is made fully effective, including an
order to preserve evidence in the possession or control of a
disputing party or to protect the Tribunal's jurisdiction. A
Tribunal may not order attachment or enjoin the application of
the measure alleged to constitute a breach referred to in
Article 1116 or 1117. For purposes of this paragraph, an order
includes a recommendation.
Article 1135: Final Award
1. Where a Tribunal makes a final award against a Party, the
Tribunal may award, separately or in combination, only:
(a) monetary damages and any applicable interest;
(b) restitution of property, in which case the award
shall provide that the disputing Party may pay
monetary damages and any applicable interest in lieu
of restitution,
A tribunal may also award costs in accordance with the
applicable arbitration rules.
2. Subject to paragraph 1, where a claim is made under
Article 1117(1):
(a) an award of restitution of property shall provide
that restitution be made to the enterprise;
(b) an award of monetary damages and any applicable
interest shall provide that the sum be paid to the
enterprise; and
(c) the award shall provide that it is made without
prejudice to any right that any person may have in
the relief under applicable domestic law.
3. A Tribunal may not order a Party to pay punitive damages.
Article 1136: Finality and Enforcement of an Award
1. An award made by a Tribunal shall have no binding force
except between the disputing parties and in respect of the
particular case.
2. Subject to paragraph 3 and the applicable review procedure
for an interim award, a disputing party shall abide by and
comply with an award without delay.
3. A disputing party may not seek enforcement of a final
award until:
(a) in the case of a final award made under the ICSID
Convention
(i) 120 days have elapsed from the date the award
was rendered and no disputing party has
requested revision or annulment of the award, or
(ii) revision or annulment proceedings have been
completed; and
(b) in the case of a final award under the ICSID
Additional Facility Rules or the UNCITRAL Arbitration
Rules
(i) three months have elapsed from the date the
award was rendered and no disputing party has
commenced a proceeding to revise, set aside or
annul the award, or
(ii) a court has dismissed or allowed an application
to revise, set aside or annul the award and
there is no further appeal.
4. Each Party shall provide for the enforcement of an award
in its territory.
5. If a disputing Party fails to abide by or comply with a
final award, the Commission, on delivery of a request by a
Party whose investor was a party to the arbitration, shall
establish a panel under Article 2008 (Request for an Arbitral
Panel). The requesting Party may seek in such proceedings:
(a) a determination that the failure to abide by or
comply with the final award is inconsistent with the
obligations of this Agreement; and
(b) a recommendation that the Party abide by or comply
with the final award.
6. A disputing investor may seek enforcement of an
arbitration award under the ICSID Convention, the New York
Convention or the Inter-American Convention regardless of
whether proceedings have been taken under paragraph 5.
7. A claim that is submitted to arbitration under this
Section shall be considered to arise out of a commercial
relationship or transaction for purposes of Article I of the
New York Convention and Article I of the Inter-American
Convention.
Article 1137: General
Time when a Claim is Submitted to Arbitration
1. A claim is submitted to arbitration under this Section
when:
(a) the request for arbitration under paragraph (1) of
Article 36 of the ICSID Convention has been received
by the Secretary-General;
(b) the notice of arbitration under Article 2 of Schedule
C of the ICSID Additional Facility Rules has been
received by the Secretary-General; or
(c) the notice of arbitration given under the UNCITRAL
Arbitration Rules is received by the disputing Party.
Service of Documents
2. Delivery of notice and other documents on a Party shall be
made to the place named for that Party in Annex 1137.2.
Receipts under Insurance or Guarantee Contracts
3. In an arbitration under this Section, a Party shall not
assert, as a defense, counterclaim, right of setoff or
otherwise, that the disputing investor has received or will
receive, pursuant to an insurance or guarantee contract,
indemnification or other compensation for all or part of its
alleged damages.
Publication of an Award
4. Annex 1137.4 applies to the Parties specified in that
Annex with respect to publication of an award.
Article 1138: Exclusions
1. Without prejudice to the applicability or non-
applicability of the dispute settlement provisions of this
Section or of Chapter Twenty (Institutional Arrangements and
Dispute Settlement Procedures) to other actions taken by a
Party pursuant to Article 2102 (National Security), a decision
by a Party to prohibit or restrict the acquisition of an
investment in its territory by an investor of another Party, or
its investment, pursuant to that Article shall not be subject
to such provisions.
2. The dispute settlement provisions of this Section and of
Chapter Twenty shall not apply to the matters referred to in
Annex 1138.2.
Section C - Definitions
Article 1139: Definitions
For purposes of this Chapter:
disputing investor means an investor that makes a claim under
Section B;
disputing parties means the disputing investor and the
disputing Party;
disputing party means the disputing investor or the disputing
Party;
disputing Party means a Party against which a claim is made
under Section B;
enterprise means an "enterprise" as defined in Article 201
(Definitions of General Application), and a branch of an
enterprise;
enterprise of a Party means an enterprise constituted or
organized under the law of a Party, and a branch located in the
territory of a Party and carrying out business activities
there.
equity or debt securities includes voting and non-voting
shares, bonds, convertible debentures, stock options and
warrants;
G7 Currency means the currency of Canada, France, Germany,
Italy, Japan, the United Kingdom of Great Britain and Northern
Ireland or the United States;
ICSID means the International Centre for Settlement of
Investment Disputes;
ICSID Convention means the Convention on the Settlement of
Investment Disputes between States and Nationals of other
States, done at Washington, March 18, 1965;
Inter-American Convention means the Inter-American Convention
on International Commercial Arbitration, done at Panama,
January 30, 1975;
investment means:
(a) an enterprise;
(b) an equity security of an enterprise;
(c) a debt security of an enterprise
(i) where the enterprise is an affiliate of the
investor, or
(ii) where the original maturity of the debt security
is at least three years,
but does not include a debt security, regardless of
original maturity, of a state enterprise;
(d) a loan to an enterprise
(i) where the enterprise is an affiliate of the
investor, or
(ii) where the original maturity of the loan is at
least three years,
but does not include a loan, regardless of original
maturity, to a state enterprise;
(e) an interest in an enterprise that entitles the owner
to share in income or profits of the enterprise;
(f) an interest in an enterprise that entitles the owner
to share in the assets of that enterprise on
dissolution, other than a debt security or a loan
excluded from subparagraph (c) or (d);
(g) real estate or other property, tangible or
intangible, acquired in the expectation or used for
the purpose of economic benefit or other business
purposes; and
(h) interests arising from the commitment of capital or
other resources in the territory of a Party to
economic activity in such territory, such as under
(i) contracts involving the presence of an
investor's property in the territory of the
Party, including turnkey or construction
contracts, or concessions, or
(ii) contracts where remuneration depends
substantially on the production, revenues or
profits of an enterprise;
but investment does not mean,
(i) claims to money that arise solely from
(i) commercial contracts for the sale of goods or
services by a national or enterprise in the
territory of a Party to an enterprise in the
territory of another Party, or
(ii) the extension of credit in connection with a
commercial transaction, such as trade financing,
other than a loan covered by subparagraph (d);
or
(j) any other claims to money,
that do not involve the kinds of interests set out in
subparagraphs (a) through (h);
investment of an investor of a Party means an investment owned
or controlled directly or indirectly by an investor of such
Party;
investor of a Party means a Party or state enterprise thereof,
or a national or an enterprise of such Party, that seeks to
make, is making or has made an investment;
investor of a non-Party means an investor other than an
investor of a Party, that seeks to make, is making or has made
an investment;
New York Convention means the United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, done at
New York, June 10, 1958;
Secretary-General means the Secretary-General of ICSID;
transfers means transfers and international payments;
Tribunal means an arbitration tribunal established under
Article 1120 or 1126; and
UNCITRAL Arbitration Rules means the arbitration rules of the
United Nations Commission on International Trade Law, approved
by the United Nations General Assembly on December 15, 1976.
Annex 1120.1
Submission of a Claim to Arbitration
Mexico
With respect to the submission of a claim to arbitration:
(a) an investor of another Party may not allege that
Mexico has breached an obligation under:
(i) Section A or Article 1503(2) (State
Enterprises), or
(ii) Article 1502(3)(a) (Monopolies and State
Enterprises) where the monopoly has acted in a
manner inconsistent with the Party's obligations
under Section A,
both in an arbitration under this Section and in
proceedings before a Mexican court or administrative
tribunal; and
(b) where an enterprise of Mexico that is a juridical
person that an investor of another Party owns or
controls directly or indirectly alleges in
proceedings before a Mexican court or administrative
tribunal that Mexico has breached an obligation
under:
(i) Section A or Article 1503(2) (State
Enterprises), or
(ii) Article 1502(3)(a) (Monopolies and State
Enterprises) where the monopoly has acted in a
manner inconsistent with the Party's obligations
under Section A,
the investor may not allege the breach in an arbitration
under this Section.
Annex 1137.2
Service of Documents on a Party Under Section B
Each Party shall set out in this Annex and publish in its
official journal by
January 1, 1994, the place for delivery of notice and other
documents under this Section.
Annex 1137.4
Publication of an Award
Canada
Where Canada is the disputing Party, either Canada or a
disputing investor that is a party to the arbitration may make
an award public.
Mexico
Where Mexico is the disputing Party, the applicable
arbitration rules apply to the publication of an award.
United States
Where the United States is the disputing Party, either the
United States or a disputing investor that is a party to the
arbitration may make an award public.
Annex 1138.2
Exclusions from Dispute Settlement
Canada
A decision by Canada following a review under the
Investment Canada Act, with respect to whether or not to permit
an acquisition that is subject to review, shall not be subject
to the dispute settlement provisions of Section B or of Chapter
Twenty (Institutional Arrangements and Dispute Settlement
Procedures).
Mexico
A decision by the National Commission on Foreign
Investment ("Comisi n Nacional de Inversiones Extranjeras")
following a review pursuant to Annex I, page I-M-4, with
respect to whether or not to permit an acquisition that is
subject to review, shall not be subject to the dispute
settlement provisions of Section B or of Chapter Twenty
(Institutional Arrangements and Dispute Settlement Procedures).
Title:Cross-Border Trade in Services -- Chapter Twelve
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:30632
Chapter Twelve
Cross-Border Trade in Services
Article 1201: Scope and Coverage
1. This Chapter applies to measures adopted or maintained by
a Party relating to cross-border trade in services by service
providers of another Party, including measures respecting:
(a) the production, distribution, marketing, sale and
delivery of a service;
(b) the purchase or use of, or payment for, a service;
(c) the access to and use of distribution and
transportation systems in connection with the
provision of a service;
(d) the presence in its territory of a service provider
of another Party; and
(e) the provision of a bond or other form of financial
security as a condition for the provision of a
service.
2. This Chapter does not apply to:
(a) financial services, as defined in Chapter
Fourteen (Financial Services);
(b) air services, including domestic and international
air transportation services, whether scheduled or
non-scheduled, and related services in support of air
services, other than
(i) aircraft repair and maintenance services during
which an aircraft is withdrawn from service, and
(ii) specialty air services;
(c) procurement by a Party or a state enterprise; or
(d) subsidies or grants provided by a Party or a state
enterprise, including government-supported loans,
guarantees and insurance.
3. Nothing in this Chapter shall be construed to:
(a) impose any obligation on a Party with respect to a
national of another Party seeking access to its
employment market, or employed on a permanent basis
in its territory, or to confer any right on that
national with respect to that access or employment;
or
(b) prevent a Party from providing a service or
performing a function such as law enforcement,
correctional services, income security or insurance,
social security or insurance, social welfare, public
education, public training, health, and child care,
in a manner that is not inconsistent with this
Chapter.
Article 1202: National Treatment
1. Each Party shall accord to service providers of another
Party treatment no less favorable than that it accords, in like
circumstances, to its own service providers.
2. The treatment accorded by a Party under paragraph 1 means,
with respect to a state or province, treatment no less
favorable than the most favorable treatment accorded, in like
circumstances, by that state or province to service providers
of the Party of which it forms a part.
Article 1203: Most-Favored-Nation Treatment
Each Party shall accord to service providers of another
Party treatment no less favorable than that it accords, in like
circumstances, to service providers of any other Party or of a
non-Party.
Article 1204: Standard of Treatment
Each Party shall accord to service providers of any other
Party the better of the treatment required by Articles 1202 and
1203.
Article 1205: Local Presence
No Party may require a service provider of another Party
to establish or maintain a representative office or any form of
enterprise, or to be resident, in its territory as a condition
for the cross-border provision of a service.
Article 1206: Reservations
1. Articles 1202, 1203 and 1205 do not apply to:
(a) any existing non-conforming measure that is
maintained by
(i) a Party at the federal level, as set out in its
Schedule to Annex I,
(ii) a state or province, for two years after the
date of entry into force of this Agreement, and
thereafter as set out by a Party in its Schedule
to Annex I in accordance with paragraph 2, or
(iii) a local government;
(b) the continuation or prompt renewal of any non-
conforming measure referred to in subparagraph (a);
or
(c) an amendment to any non-conforming measure referred
to in subparagraph (a) to the extent that the
amendment does not decrease the conformity of the
measure, as it existed immediately before the
amendment, with Articles 1202, 1203 and 1205.
2. Each Party may set out in its Schedule to Annex I, within
two years of the date of entry into force of this Agreement,
any existing non-conforming measure maintained by a state or
province, not including a local government.
3. Articles 1202, 1203 and 1205 do not apply to any measure
that a Party adopts or maintains with respect to sectors,
subsectors or activities, as set out in its Schedule to
Annex II.
Article 1207: Quantitative Restrictions
1. Each Party shall set out in its Schedule to Annex V any
quantitative restriction that it maintains at the federal
level.
2. Within one year of the date of entry into force of this
Agreement, each Party shall set out in its Schedule to Annex V
any quantitative restriction maintained by a state or province,
not including a local government.
3. Each Party shall notify the other Parties of any
quantitative restriction that it adopts, other than at the
local government level, after the date of entry into force of
this Agreement and shall set out the restriction in its
Schedule to Annex V.
4. The Parties shall periodically, but in any event at least
every two years, endeavor to negotiate the liberalization or
removal of the quantitative restrictions set out in Annex V
pursuant to paragraphs 1 through 3.
Article 1208: Liberalization of Non-Discriminatory Measures
Each Party shall set out in its Schedule to Annex VI its
commitments to liberalize quantitative restrictions, licensing
requirements, performance requirements or other non-
discriminatory measures.
Article 1209: Procedures
The Commission shall establish procedures for:
(a) a Party to notify and include in its relevant
Schedule
(i) state or provincial measures in accordance with
Article 1206(2),
(ii) quantitative restrictions in accordance with
Article 1207(2) and (3),
(iii) commitments pursuant to Article 1208, and
(iv) amendments of measures referred to in Article
1206(1)(c); and
(b) consultations on reservations, quantitative
restrictions or commitments with a view to further
liberalization.
Article 1210: Licensing and Certification
1. With a view to ensuring that any measure adopted or
maintained by a Party relating to the licensing or
certification of nationals of another Party does not constitute
an unnecessary barrier to trade, each Party shall endeavor to
ensure that any such measure:
(a) is based on objective and transparent criteria,
such as competence and the ability to provide a
service;
(b) is not more burdensome than necessary to ensure
the quality of a service; and
(c) does not constitute a disguised restriction on
the cross-border provision of a service.
2. Where a Party recognizes, unilaterally or by agreement,
education, experience, licenses or certifications obtained in
the territory of another Party or of a non-Party:
(a) nothing in Article 1203 shall be construed to require
the Party to accord such recognition to education,
experience, licenses or certifications obtained in
the territory of another Party; and
(b) the Party shall afford another Party an adequate
opportunity to demonstrate that education,
experience, licenses or certifications obtained in
that other Party's territory should also be
recognized or to conclude an agreement or arrangement
of comparable effect.
3. Each Party shall, within two years of the date of entry
into force of this Agreement, eliminate any citizenship or
permanent residency requirement set out in its Schedule to
Annex I that it maintains for the licensing or certification of
professional service providers of another Party. Where a Party
does not comply with this obligation with respect to a
particular sector, any other Party may, in the same sector and
for such period as the non-complying Party maintains its
requirement, solely have recourse to maintaining an equivalent
requirement set out in its Schedule to Annex I or reinstating:
(a) any such requirement at the federal level that it
eliminated pursuant to this Article; or
(b) on notification to the non-complying Party, any such
requirement at the state or provincial level existing
on the date of entry into force of this Agreement.
4. The Parties shall consult periodically with a view to
determining the feasibility of removing any remaining
citizenship or permanent residency requirement for the
licensing or certification of each other's service providers.
5. Annex 1210.5 applies to measures adopted or maintained by
a Party relating to the licensing or certification of
professional service providers.
Article 1211: Denial of Benefits
1. A Party may deny the benefits of this Chapter to a service
provider of another Party where the Party establishes that:
(a) the service is being provided by an enterprise owned
or controlled by nationals of a non-Party, and
(i) the denying Party does not maintain diplomatic
relations with the non-Party, or
(ii) the denying Party adopts or maintains measures
with respect to the non-Party that prohibit
transactions with the enterprise or that would
be violated or circumvented if the benefits of
this Chapter were accorded to the enterprise; or
(b) the cross-border provision of a transportation
service covered by this Chapter is provided using
equipment not registered by any Party.
2. Subject to prior notification and consultation in
accordance with Articles 1803 (Notification and Provision of
Information) and 2006 (Consultations), a Party may deny the
benefits of this Chapter to a service provider of another Party
where the Party establishes that the service is being provided
by an enterprise that is owned or controlled by persons of a
non-Party and that has no substantial business activities in
the territory of any Party.
Article 1212: Sectoral Annex
Annex 1212 applies to specific sectors.
Article 1213: Definitions
1. For purposes of this Chapter, a reference to a federal,
state or provincial government includes any non-governmental
body in the exercise of any regulatory, administrative or other
governmental authority delegated to it by that government.
2. For purposes of this Chapter:
cross-border provision of a service or cross-border trade in
services means the provision of a service:
(a) from the territory of a Party into the territory
of another Party,
(b) in the territory of a Party by a person of that
Party to a person of another Party, or
(c) by a national of a Party in the territory of
another Party,
but does not include the provision of a service in the
territory of a Party by an investment, as defined in Article
1139 (Investment - Definitions), in that territory;
enterprise means an "enterprise" as defined in Article 201
(Definitions of General Application), and a branch of an
enterprise;
enterprise of a Party means an enterprise constituted or
organized under the law of a Party, and a branch located in the
territory of a Party and carrying out business activities
there;
professional services means services, the provision of which
requires specialized post-secondary education, or equivalent
training or experience, and for which the right to practice is
granted or restricted by a Party, but does not include services
provided by trades-persons or vessel and aircraft crew members;
quantitative restriction means a non-discriminatory measure
that imposes limitations on:
(a) the number of service providers, whether in the form
of a quota, a monopoly or an economic needs test, or
by any other quantitative means; or
(b) the operations of any service provider, whether in
the form of a quota or an economic needs test, or by
any other quantitative means;
service provider of a Party means a person of a Party that
seeks to provide or provides a service; and
specialty air services means aerial mapping, aerial surveying,
aerial photography, forest fire management, fire fighting,
aerial advertising, glider towing, parachute jumping, aerial
construction, heli-logging, aerial sightseeing, flight
training, aerial inspection and surveillance, and aerial
spraying services.
Annex 1210.5
Professional Services
Section A - General Provisions
Processing of Applications for Licenses and Certifications
1. Each Party shall ensure that its competent authorities,
within a reasonable time after the submission by a national of
another Party of an application for a license or certification:
(a) where the application is complete, make a
determination on the application and inform the
applicant of that determination; or
(b) where the application is not complete, inform
the applicant without undue delay of the status
of the application and the additional
information that is required under the Party's
law.
Development of Professional Standards
2. The Parties shall encourage the relevant bodies in their
respective territories to develop mutually acceptable standards
and criteria for licensing and certification of professional
service providers and to provide recommendations on mutual
recognition to the Commission.
3. The standards and criteria referred to in paragraph 2 may
be developed with regard to the following matters:
(a) education - accreditation of schools or academic
programs;
(b) examinations - qualifying examinations for licensing,
including alternative methods of assessment such as
oral examinations and interviews;
(c) experience - length and nature of experience required
for licensing;
(d) conduct and ethics - standards of professional
conduct and the nature of disciplinary action for
non-conformity with those standards;
Annex 1210.5
(e) professional development and re-certification -
continuing education and ongoing requirements to
maintain professional certification;
(f) scope of practice - extent of, or limitations on,
permissible activities;
(g) local knowledge - requirements for knowledge of such
matters as local laws, regulations, language,
geography or climate; and
(h) consumer protection - alternatives to residency
requirements, including bonding, professional
liability insurance and client restitution funds, to
provide for the protection of consumers.
4. On receipt of a recommendation referred to in paragraph 2,
the Commission shall review the recommendation within a
reasonable time to determine whether it is consistent with this
Agreement. Based on the Commission's review, each Party shall
encourage its respective competent authorities, where
appropriate, to implement the recommendation within a mutually
agreed time.
Temporary Licensing
5. Where the Parties agree, each Party shall encourage the
relevant bodies in its territory to develop procedures for the
temporary licensing of professional service providers of
another Party.
Review
6. The Commission shall periodically, and at least once every
three years, review the implementation of this Section.
Section B - Foreign Legal Consultants
1. Each Party shall, in implementing its obligations and
commitments regarding foreign legal consultants as set out in
its relevant Schedules and subject to any reservations therein,
ensure that a national of another Party is permitted to
practice or advise on the law of any country in which that
national is authorized to practice as a lawyer.
Annex 1210.5
Consultations With Professional Bodies
2. Each Party shall consult with its relevant professional
bodies to obtain their recommendations on:
(a) the form of association or partnership between
lawyers authorized to practice in its territory and
foreign legal consultants;
(b) the development of standards and criteria for the
authorization of foreign legal consultants in
conformity with Article 1210; and
(c) other matters relating to the provision of foreign
legal consultancy services.
3. Prior to initiation of consultations under paragraph 7,
each Party shall encourage its relevant professional bodies to
consult with the relevant professional bodies designated by
each of the other Parties regarding the development of joint
recommendations on the matters referred to in paragraph 2.
Future Liberalization
4. Each Party shall establish a work program to develop
common procedures throughout its territory for the
authorization of foreign legal consultants.
5. Each Party shall promptly review any recommendation
referred to in paragraphs 2 and 3 to ensure its consistency
with this Agreement. If the recommendation is consistent with
this Agreement, each Party shall encourage its competent
authorities to implement the recommendation within one year.
6. Each Party shall report to the Commission within one year
of the date of entry into force of this Agreement, and each
year thereafter, on its progress in implementing the work
program referred to in paragraph 4.
7. The Parties shall meet within one year of the date of
entry into force of this Agreement with a view to:
(a) assessing the implementation of paragraphs 2 through
5;
(b) amending or removing, where appropriate, reservations
on foreign legal consultancy services; and
Annex 1210.5
(c) assessing further work that may be appropriate
regarding foreign legal consultancy services.
Section C - Temporary Licensing of Engineers
1. The Parties shall meet within one year of the date of
entry into force of this Agreement to establish a work program
to be undertaken by each Party, in conjunction with its
relevant professional bodies, to provide for the temporary
licensing in its territory of nationals of another Party who
are licensed as engineers in the territory of that other Party.
2. To this end, each Party shall consult with its relevant
professional bodies to obtain their recommendations on:
(a) the development of procedures for the temporary
licensing of such engineers to permit them to
practice their engineering specialties in each
jurisdiction in its territory;
(b) the development of model procedures for adoption by
the competent authorities throughout its territory to
facilitate the temporary licensing of such engineers;
(c) the engineering specialties to which priority should
be given in developing temporary licensing
procedures; and
(d) other matters relating to the temporary licensing of
engineers identified by the Party in such
consultations.
3. Each Party shall request its relevant professional bodies
to make recommendations on the matters referred to in paragraph
2 within two years of the date of entry into force of this
Agreement.
4. Each Party shall encourage its relevant professional
bodies to meet at the earliest opportunity with the relevant
professional bodies of the other Parties with a view to
cooperating in the development of joint recommendations on the
matters referred to in paragraph 2 within two years of the date
of entry into force of this Agreement. Each Party shall
request an annual report from its relevant professional bodies
on the progress achieved in developing those recommendations.
Annex 1210.5
5. The Parties shall promptly review any recommendation
referred to in paragraphs 3 or 4 to ensure its consistency with
this Agreement. If the recommendation is consistent with this
Agreement, each Party shall encourage its competent authorities
to implement the recommendation within one year.
6. The Commission shall review the implementation of this
Section within two years of the date of entry into force of
this Section.
7. Appendix 1210.5-C applies to the Parties specified
therein.
Appendix 1210.5 - C
Civil Engineers
The rights and obligations of Section C of Annex 1210.5
apply to Mexico with respect to civil engineers ("ingenieros
civiles") and to such other engineering specialties that Mexico
may designate.
Annex 1212
Land Transportation
Contact Points
1. Further to Article 1801 (Contact Points), each Party shall
designate by January 1, 1994 contact points to provide
information published by that Party relating to land
transportation services regarding operating authority, safety
requirements, taxation, data, studies and technology, and to
provide assistance in contacting its relevant government
agencies.
Review Process
2. The Commission shall, during the fifth year after the date
of entry into force of this Agreement and during every second
year thereafter until the liberalization for bus and truck
transportation set out in the Parties' Schedules to Annex I is
complete, receive and consider a report from the Parties that
assesses progress respecting liberalization, including:
(a) the effectiveness of the liberalization;
(b) specific problems for, or unanticipated effects on,
each Party's bus and truck transportation industries
arising from liberalization; and
(c) modifications to the period for liberalization.
The Commission shall endeavor to resolve any matter arising
from its consideration of a report.
3. The Parties shall consult, no later than seven years after
the date of entry into force of this Agreement, to consider
further liberalization commitments.
Title:Telecommunications -- Chapter Thirteen
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:24123
Chapter Thirteen
Telecommunications
Article 1301: Scope and Coverage
1. This Chapter applies to:
(a) measures adopted or maintained by a Party relating to
access to and use of public telecommunications
transport networks or services by persons of another
Party, including access and use by such persons
operating private networks;
(b) measures adopted or maintained by a Party relating to
the provision of enhanced or value-added services by
persons of another Party in the territory, or across
the borders, of a Party; and
(c) standards-related measures relating to attachment of
terminal or other equipment to public
telecommunications transport networks.
2. Except to ensure that persons operating broadcast stations
and cable systems have continued access to and use of public
telecommunications transport networks and services, this
Chapter does not apply to any measure adopted or maintained by
a Party relating to cable or broadcast distribution of radio or
television programming.
3. Nothing in this Chapter shall be construed to:
(a) require a Party to authorize a person of another
Party to establish, construct, acquire, lease,
operate or provide telecommunications transport
networks or telecommunications transport services;
(b) require a Party, or require a Party to compel any
person, to establish, construct, acquire, lease,
operate or provide telecommunications transport
networks or telecommunications transport services not
offered to the public generally;
(c) prevent a Party from prohibiting persons operating
private networks from using their networks to provide
public telecommunications transport networks or
services to third persons; or
(d) require a Party to compel any person engaged in the
cable or broadcast distribution of radio or
television programming to make available its cable or
broadcast facilities as a public telecommunications
transport network.
Article 1302: Access to and Use of Public Telecommunications
Transport Networks and Services
1. Each Party shall ensure that persons of another Party have
access to and use of any public telecommunications transport
network or service, including private leased circuits, offered
in its territory or across its borders for the conduct of their
business, on reasonable and non-discriminatory terms and
conditions, including as set out in paragraphs 2 through 8.
2. Subject to paragraphs 6 and 7, each Party shall ensure
that such persons are permitted to:
(a) purchase or lease, and attach terminal or other
equipment that interfaces with the public
telecommunications transport network;
(b) interconnect private leased or owned circuits with
public telecommunications transport networks in the
territory, or across the borders, of that Party,
including for use in providing dial-up access to and
from their customers or users, or with circuits
leased or owned by another person on terms and
conditions mutually agreed by those persons;
(c) perform switching, signalling and processing
functions; and
(d) use operating protocols of their choice.
3. Each Party shall ensure that:
(a) the pricing of public telecommunications transport
services reflects economic costs directly related to
providing the services; and
(b) private leased circuits are available on a flat-rate
pricing basis.
Nothing in this paragraph shall be construed to prevent
cross-subsidization between public telecommunications transport
services.
4. Each Party shall ensure that persons of another Party may
use public telecommunications transport networks or services
for the movement of information in its territory or across its
borders, including for intracorporate communications, and for
access to information contained in data bases or otherwise
stored in machine-readable form in the territory of any Party.
5. Further to Article 2101 (General Exceptions), nothing in
this Chapter shall be construed to prevent a Party from
adopting or enforcing any measure necessary to:
(a) ensure the security and confidentiality of messages;
or
(b) protect the privacy of subscribers to public
telecommunications transport networks or services.
6. Each Party shall ensure that no condition is imposed on
access to and use of public telecommunications transport
networks or services, other than that necessary to:
(a) safeguard the public service responsibilities of
providers of public telecommunications transport
networks or services, in particular their ability to
make their networks or services available to the
public generally; or
(b) protect the technical integrity of public
telecommunications transport networks or services.
7. Provided that conditions for access to and use of public
telecommunications transport networks or services satisfy the
criteria set out in paragraph 6, such conditions may include:
(a) a restriction on resale or shared use of such
services;
(b) a requirement to use specified technical interfaces,
including interface protocols, for interconnection
with such networks or services;
(c) a restriction on interconnection of private leased or
owned circuits with such networks or services or with
circuits leased or owned by another person, where the
circuits are used in the provision of public
telecommunications transport networks or services;
and
(d) a licensing, permit, registration or notification
procedure which, if adopted or maintained, is
transparent and applications filed thereunder are
processed expeditiously.
8. For purposes of this Article, "non-discriminatory" means
on terms and conditions no less favorable than those accorded
to any other customer or user of like public telecommunications
transport networks or services in like circumstances.
Article 1303: Conditions for the Provision of Enhanced or
Value-Added Services
1. Each Party shall ensure that:
(a) any licensing, permit, registration or notification
procedure that it adopts or maintains relating to the
provision of enhanced or value-added services is
transparent and non-discriminatory, and that
applications filed thereunder are processed
expeditiously; and
(b) information required under such procedures is limited
to that necessary to demonstrate that the applicant
has the financial solvency to begin providing
services or to assess conformity of the applicant's
terminal or other equipment with the Party's
applicable standards or technical regulations.
2. A Party shall not require a person providing enhanced or
value-added services to:
(a) provide those services to the public generally;
(b) cost-justify its rates;
(c) file a tariff;
(d) interconnect its networks with any particular
customer or network; or
(e) conform with any particular standard or technical
regulation for interconnection other than for
interconnection to a public telecommunications
transport network.
3. Notwithstanding paragraph 2(c), a Party may require the
filing of a tariff by:
(a) such provider to remedy a practice of that provider
that the Party has found in a particular case to be
anticompetitive under its law; or
(b) a monopoly to which Article 1305 applies.
Article 1304: Standards-Related Measures
1. Further to Article 904(4) (Unnecessary Obstacles), each
Party shall ensure that its standards-related measures relating
to the attachment of terminal or other equipment to the public
telecommunications transport networks, including those measures
relating to the use of testing and measuring equipment for
conformity assessment procedures, are adopted or maintained
only to the extent necessary to:
(a) prevent technical damage to public telecommunications
transport networks;
(b) prevent technical interference with, or degradation
of, public telecommunications transport services;
(c) prevent electromagnetic interference, and ensure
compatibility, with other uses of the electromagnetic
spectrum;
(d) prevent billing equipment malfunction; or
(e) ensure users' safety and access to public
telecommunications transport networks or services.
2. A Party may require approval for the attachment to the
public telecommunications transport network of terminal or
other equipment that is not authorized, provided that the
criteria for that approval are consistent with paragraph 1.
3. Each Party shall ensure that the network termination
points for its public telecommunications transport networks are
defined on a reasonable and transparent basis.
4. No Party may require separate authorization for equipment
that is connected on the customer's side of authorized
equipment that serves as a protective device fulfilling the
criteria of paragraph 1.
5. Further to Article 904(3) (Non-Discriminatory Treatment),
each Party shall:
(a) ensure that its conformity assessment procedures are
transparent and non-discriminatory and that
applications filed thereunder are processed
expeditiously;
(b) permit any technically qualified entity to perform
the testing required under the Party's conformity
assessment procedures for terminal or other equipment
to be attached to the public telecommunications
transport network, subject to the Party's right to
review the accuracy and completeness of the test
results; and
(c) ensure that any measure that it adopts or maintains
requiring persons to be authorized to act as agents
for suppliers of telecommunications equipment before
the Party's relevant conformity assessment bodies is
non-discriminatory.
6. No later than one year after the date of entry into force
of this Agreement, each Party shall adopt, as part of its
conformity assessment procedures, provisions necessary to
accept the test results from laboratories or testing facilities
in the territory of another Party for tests performed in
accordance with the accepting Party's standards-related
measures and procedures.
7. The Telecommunications Standards Subcommittee established
under Article 913(5) (Committee on Standards-Related Measures)
shall perform the functions set out in Annex 913.5.a-2.
Article 1305: Monopolies
1. Where a Party maintains or designates a monopoly to
provide public telecommunications transport networks or
services, and the monopoly, directly or through an affiliate,
competes in the provision of enhanced or value-added services
or other telecommunications-related services or
telecommunications-related goods, the Party shall ensure that
the monopoly does not use its monopoly position to engage in
anticompetitive conduct in those markets, either directly or
through its dealings with its affiliates, in such a manner as
to affect adversely a person of another Party. Such conduct
may include cross-subsidization, predatory conduct and the
discriminatory provision of access to public telecommunications
transport networks or services.
2. To prevent such anticompetitive conduct, each Party shall
adopt or maintain effective measures, such as:
(a) accounting requirements;
(b) requirements for structural separation;
(c) rules to ensure that the monopoly accords its
competitors access to and use of its public
telecommunications transport networks or services on
terms and conditions no less favorable than those it
accords to itself or its affiliates; or
(d) rules to ensure the timely disclosure of technical
changes to public telecommunications transport
networks and their interfaces.
Article 1306: Transparency
Further to Article 1802 (Publication), each Party shall
make publicly available its measures relating to access to and
use of public telecommunications transport networks or
services, including measures relating to:
(a) tariffs and other terms and conditions of service;
(b) specifications of technical interfaces with the
networks or services;
(c) information on bodies responsible for the preparation
and adoption of standards-related measures affecting
such access and use;
(d) conditions applying to attachment of terminal or
other equipment to the networks; and
(e) notification, permit, registration or licensing
requirements.
Article 1307: Relation to Other Chapters
In the event of any inconsistency between this Chapter and
another Chapter, this Chapter shall prevail to the extent of
the inconsistency.
Article 1308: Relation to International Organizations and
Agreements
The Parties recognize the importance of international
standards for global compatibility and interoperability of
telecommunication networks or services and undertake to promote
those standards through the work of relevant international
bodies, including the International Telecommunication Union and
the International Organization for Standardization.
Article 1309: Technical Cooperation and Other Consultations
1. To encourage the development of interoperable
telecommunications transport services infrastructure, the
Parties shall cooperate in the exchange of technical
information, the development of government-to-government
training programs and other related activities. In
implementing this obligation, the Parties shall give special
emphasis to existing exchange programs.
2. The Parties shall consult with a view to determining the
feasibility of further liberalizing trade in all
telecommunications services, including public
telecommunications transport networks and services.
Article 1310: Definitions
For purposes of this Chapter:
authorized equipment means terminal or other equipment that has
been approved for attachment to the public telecommunications
transport network in accordance with a Party's conformity
assessment procedures;
conformity assessment procedure means "conformity assessment
procedure" as defined in Article 915 (Standards-Related
Measures - Definitions), and includes the procedures referred
to in Annex 1310;
enhanced or value-added services means those telecommunications
services employing computer processing applications that:
(a) act on the format, content, code, protocol or similar
aspects of a customer's transmitted information;
(b) provide a customer with additional, different or
restructured information; or
(c) involve customer interaction with stored information;
flat-rate pricing basis means pricing on the basis of a fixed
charge per period of time regardless of the amount of use;
intracorporate communications means telecommunications through
which an enterprise communicates:
(a) internally or with or among its subsidiaries,
branches or affiliates, as defined by each Party, or
(b) on a non-commercial basis with other persons that are
fundamental to the economic activity of the
enterprise and that have a continuing contractual
relationship with it,
but does not include telecommunications services provided to
persons other than those described herein;
network termination point means the final demarcation of the
public telecommunications transport network at the customer's
premises;
private network means a telecommunications transport network
that is used exclusively for intracorporate communications;
protocol means a set of rules and formats that govern the
exchange of information between two peer entities for purposes
of transferring signaling or data information;
public telecommunications transport network means public
telecommunications infrastructure that permits
telecommunications between defined network termination points;
public telecommunications transport networks or services means
public telecommunications transport networks or public
telecommunications transport services;
public telecommunications transport service means any
telecommunications transport service required by a Party,
explicitly or in effect, to be offered to the public generally,
including telegraph, telephone, telex and data transmission,
that typically involves the real-time transmission of customer-
supplied information between two or more points without any
end-to-end change in the form or content of the customer's
information;
standards-related measure means a "standards-related measure"
as defined in Article 915;
telecommunications means the transmission and reception of
signals by any electromagnetic means; and
terminal equipment means any digital or analog device capable
of processing, receiving, switching, signaling or transmitting
signals by electromagnetic means and that is connected by radio
or wire to a public telecommunications transport network at a
termination point.
Annex 1310
Conformity Assessment Procedures
For Canada:
Department of Communications, Terminal Attachment Program
Certification Procedures (CP-01)
Department of Communications Act, R.S.C. 1985, c. C-35
Railway Act, R.S.C. 1985, c. R-3
Radiocommunication Act, R.S.C. 1985, c. R-2, as amended by
S.C. 1989, c. 17
Telecommunications Act (Bill C-62)
For Mexico:
Secretar a de Comunicaciones y Transportes
Subsecretar a de Comunicaciones y Desarrollo Technol gico
Reglamento de Telecomunicaciones, Cap tulo X
For the United States:
Part 15 and Part 68 of the Federal Communications Commission's
Rules, Title 47 of the Code of Federal Regulations
Title:Financial Services -- Chapter Fourteen
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:44088
Chapter Fourteen
Financial Services
Article 1401: Scope and Coverage
1. This Chapter applies to measures adopted or maintained by
a Party relating to:
(a) financial institutions of another Party;
(b) investors of another Party, and investments of such
investors, in financial institutions in the Party's
territory; and
(c) cross-border trade in financial services.
2. Articles 1109 through 1111, 1113, 1114 and 1211 are hereby
incorporated into and made a part of this Chapter. Articles
1115 through 1138 are hereby incorporated into and made a part
of this Chapter solely for breaches by a Party of Articles 1109
through 1111, 1113 and 1114, as incorporated into this Chapter.
3. Nothing in this Chapter shall be construed to prevent a
Party, including its public entities, from exclusively
conducting or providing in its territory:
(a) activities or services forming part of a public
retirement plan or statutory system of social
security; or
(b) activities or services for the account or with the
guarantee or using the financial resources of the
Party, including its public entities.
4. Annex 1401.4 applies to the Parties specified in that
Annex.
Article 1402: Self-Regulatory Organizations
Where a Party requires a financial institution or a cross-
border financial service provider of another Party to be a
member of, participate in, or have access to, a self-regulatory
organization to provide a financial service in or into the
territory of that Party, the Party shall ensure observance of
the obligations of this Chapter by such self-regulatory
organization.
Article 1403: Establishment of Financial Institutions
1. The Parties recognize the principle that an investor of
another Party should be permitted to establish a financial
institution in the territory of a Party in the juridical form
chosen by such investor.
2. The Parties also recognize the principle that an investor
of another Party should be permitted to participate widely in a
Party's market through the ability of such investor to:
(a) provide in that Party's territory a range of
financial services through separate financial
institutions as may be required by that Party;
(b) expand geographically in that Party's territory; and
(c) own financial institutions in that Party's territory
without being subject to ownership requirements
specific to foreign financial institutions.
3. Subject to Annex 1403.3, at such time as the United States
permits commercial banks of another Party located in its
territory to expand through subsidiaries or direct branches
into substantially all of the United States market, the Parties
shall review and assess market access provided by each Party in
relation to the principles in paragraphs 1 and 2 with a view to
adopting arrangements permitting investors of another Party to
choose the juridical form of establishment of commercial banks.
4. Each Party shall permit an investor of another Party that
does not own or control a financial institution in the Party's
territory to establish a financial institution in that
territory. A Party may:
(a) require an investor of another Party to incorporate
under the Party's law any financial institution it
establishes in the Party's territory; or
(b) impose terms and conditions on establishment that are
consistent with Article 1405.
5. For purposes of this Article, "investor of another Party"
means an investor of another Party engaged in the business of
providing financial services in the territory of that Party.
Article 1404: Cross-Border Trade
1. No Party may adopt any measure restricting any type of
cross-border trade in financial services by cross-border
financial service providers of another Party that the Party
permits on the date of entry into force of this Agreement,
except to the extent set out in Section B of the Party's
Schedule to Annex VII.
2. Each Party shall permit persons located in its territory,
and its nationals wherever located, to purchase financial
services from cross-border financial service providers of
another Party located in the territory of that other Party or
of another Party. This obligation does not require a Party to
permit such providers to do business or solicit in its
territory. Subject to paragraph 1, each Party may define
"doing business" and "solicitation" for purposes of this
obligation.
3. Without prejudice to other means of prudential regulation
of cross-border trade in financial services, a Party may
require the registration of cross-border financial service
providers of another Party and of financial instruments.
4. The Parties shall consult on future liberalization of
cross-border trade in financial services as set out in Annex
1404.4.
Article 1405: National Treatment
1. Each Party shall accord to investors of another Party
treatment no less favorable than that it accords to its own
investors, in like circumstances, with respect to the
establishment, acquisition, expansion, management, conduct,
operation, and sale or other disposition of financial
institutions and investments in financial institutions in its
territory.
2. Each Party shall accord to financial institutions of
another Party and to investments of investors of another Party
in financial institutions treatment no less favorable than that
it accords to its own financial institutions and to investments
of its own investors in financial institutions, in like
circumstances, with respect to the establishment, acquisition,
expansion, management, conduct, operation, and sale or other
disposition of financial institutions and investments.
3. Subject to Article 1404, where a Party permits the cross-
border provision of a financial service it shall accord to the
cross-border financial service providers of another Party
treatment no less favorable than that it accords to its own
financial service providers, in like circumstances, with
respect to the provision of such service.
4. The treatment that a Party is required to accord under
paragraphs 1, 2 and 3 means, with respect to a measure of any
state or province:
(a) in the case of an investor of another Party with an
investment in a financial institution, an investment
of such investor in a financial institution, or a
financial institution of such investor, located in a
state or province, treatment no less favorable than
the treatment accorded to an investor of the Party in
a financial institution, an investment of such
investor in a financial institution, or a financial
institution of such investor, located in that state
or province, in like circumstances; and
(b) in any other case, treatment no less favorable than
the most favorable treatment accorded to an investor
of the Party in a financial institution, its
financial institution or its investment in a
financial institution, in like circumstances.
For greater certainty, in the case of an investor of another
Party with investments in financial institutions or financial
institutions of such investor, located in more than one state
or province, the treatment required under subparagraph (a)
means:
(c) treatment of the investor that is no less favorable
than the most favorable treatment accorded to an
investor of the Party with an investment located in
such states, in like circumstances; and
(d) with respect to an investment of the investor in a
financial institution or a financial institution of
such investor, located in a state or province,
treatment no less favorable than that accorded to an
investment of an investor of the Party, or a
financial institution of such investor, located in
that state or province, in like circumstances.
5. A Party's treatment of financial institutions and cross-
border financial service providers of another Party, whether
different or identical to that accorded to its own institutions
or providers in like circumstances, is consistent with
paragraphs 1 through 3 if the treatment affords equal
competitive opportunities.
6. A Party's treatment affords equal competitive
opportunities if it does not disadvantage financial
institutions and cross-border financial services providers of
another Party in their ability to provide financial services as
compared with the ability of the Party's own financial
institutions and financial services providers to provide such
services, in like circumstances.
7. Differences in market share, profitability or size do not
in themselves establish a denial of equal competitive
opportunities, but such differences may be used as evidence
regarding whether a Party's treatment affords equal competitive
opportunities.
Article 1406: Most-Favored-Nation Treatment
1. Each Party shall accord to investors of another Party,
financial institutions of another Party, investments of
investors in financial institutions and cross-border financial
service providers of another Party treatment no less favorable
than that it accords to the investors, financial institutions,
investments of investors in financial institutions and cross-
border financial service providers of any other Party or of a
non-Party, in like circumstances.
2. A Party may recognize prudential measures of another Party
or of a non-Party in the application of measures covered by
this Chapter. Such recognition may be:
(a) accorded unilaterally;
(b) achieved through harmonization or other means; or
(c) based upon an agreement or arrangement with the other
Party or non-Party.
3. A Party according recognition of prudential measures under
paragraph 2 shall provide adequate opportunity to another Party
to demonstrate that circumstances exist in which there are or
would be equivalent regulation, oversight, implementation of
regulation, and if appropriate, procedures concerning the
sharing of information between the Parties.
4. Where a Party accords recognition of prudential measures
under paragraph 2(c) and the circumstances set out in paragraph
3 exist, the Party shall provide adequate opportunity to
another Party to negotiate accession to the agreement or
arrangement, or to negotiate a comparable agreement or
arrangement.
Article 1407: New Financial Services and Data Processing
1. Each Party shall permit a financial institution of another
Party to provide any new financial service of a type similar to
those services that the Party permits its own financial
institutions, in like circumstances, to provide under its
domestic law. A Party may determine the institutional and
juridical form through which the service may be provided and
may require authorization for the provision of the service.
Where such authorization is required, a decision shall be made
within a reasonable time and the authorization may only be
refused for prudential reasons.
2. Each Party shall permit a financial institution of another
Party to transfer information in electronic or other form, into
and out of the Party's territory, for data processing where
such processing is required in the ordinary course of business
of such institution.
Article 1408: Senior Management and Boards of Directors
1. No Party may require financial institutions of another
Party to engage individuals of any particular nationality as
senior managerial or other essential personnel.
2. No Party may require that more than a simple majority of
the board of directors of a financial institution of another
Party be composed of nationals of the Party, persons residing
in the territory of the Party, or a combination thereof.
Article 1409: Reservations and Specific Commitments
1. Articles 1403 through 1408 do not apply to:
(a) any existing non-conforming measure that is
maintained by
(i) a Party at the federal level, as set out in
Section A of its Schedule to Annex VII,
(ii) a state or province, for the period ending on
the date specified in Annex 1409.1 for that
state or province, and thereafter as described
by the Party in Section A of its Schedule to
Annex VII in accordance with Annex 1409.1, or
(iii) a local government;
(b) the continuation or prompt renewal of any non-
conforming measure referred to in subparagraph (a);
or
(c) an amendment to any non-conforming measure referred
to in subparagraph (a) to the extent that the
amendment does not decrease the conformity of the
measure, as it existed immediately before the
amendment, with Articles 1403 through 1408.
2. Articles 1403 through 1408 do not apply to any non-
conforming measure that a Party adopts or maintains in
accordance with Section B of its Schedule to Annex VII.
3. Section C of each Party's Schedule to Annex VII sets out
certain specific commitments by that Party.
4. Where a Party has set out a reservation to Article 1102,
1103, 1202 or 1203 in its Schedule to Annex I, II, III or IV,
the reservation shall be deemed to constitute a reservation to
Article 1405 or 1406, as the case may be, to the extent that
the measure, sector, subsector or activity set out in the
reservation is covered by this Chapter.
Article 1410: Exceptions
1. Nothing in this Part shall be construed to prevent a Party
from adopting or maintaining reasonable measures for prudential
reasons, such as:
(a) the protection of investors, depositors, financial
market participants, policy-holders, policy-
claimants, or persons to whom a fiduciary duty is
owed by a financial institution or cross-border
financial service provider;
(b) the maintenance of the safety, soundness, integrity
or financial responsibility of financial institutions
or cross-border financial service providers; and
(c) ensuring the integrity and stability of a Party's
financial system.
2. Nothing in this Part applies to non-discriminatory
measures of general application taken by any public entity in
pursuit of monetary and related credit policies or exchange
rate policies. This paragraph shall not affect a Party's
obligations under Article 1106 (Investment - Performance
Requirements) with respect to measures covered by Chapter
Eleven (Investment) or Article 1109 (Investments - Transfers).
3. Article 1405 shall not apply to the granting by a Party to
a financial institution of an exclusive right to provide a
financial service referred to in Article 1401(3)(a).
4. Notwithstanding Article 1109(1), (2) and (3), as
incorporated into this Chapter, and without limiting the
applicability of Article 1109(4), as incorporated into this
Chapter, a Party may prevent or limit transfers by a financial
institution or cross-border financial services provider to, or
for the benefit of, an affiliate of or person related to such
institution or provider, through the equitable, non-
discriminatory and good faith application of measures relating
to maintenance of the safety, soundness, integrity or financial
responsibility of financial institutions or cross-border
financial service providers. This paragraph does not prejudice
any other provision of this Agreement that permits a Party to
restrict transfers.
Article 1411: Transparency
1. In lieu of Article 1802(2) (Publication), each Party
shall, to the extent practicable, provide in advance to all
interested persons any measure of general application that the
Party proposes to adopt in order to allow an opportunity for
such persons to comment on the measure. Such measure shall be
provided:
(a) by means of official publication;
(b) in other written form; or
(c) in such other form as permits an interested person to
make informed comments on the proposed measure.
2. Each Party's regulatory authorities shall make available
to interested persons their requirements for completing
applications relating to the provision of financial services.
3. On the request of an applicant, the regulatory authority
shall inform the applicant of the status of its application.
If such authority requires additional information from the
applicant, it shall notify the applicant without undue delay.
4. A regulatory authority shall make an administrative
decision on a completed application of an investor in a
financial institution, a financial institution or a cross-
border financial service provider of another Party relating to
the provision of a financial service within 120 days, and shall
promptly notify the applicant of the decision. An application
shall not be considered complete until all relevant hearings
are held and all necessary information is received. Where it
is not practicable for a decision to be made within 120 days,
the regulatory authority shall notify the applicant without
undue delay and shall endeavor to make the decision within a
reasonable time thereafter.
5. Nothing in this Chapter requires a Party to furnish or
allow access to:
(a) information related to the financial affairs and
accounts of individual customers of financial
institutions or cross-border financial service
providers; or
(b) any confidential information, the disclosure of which
would impede law enforcement or otherwise be contrary
to the public interest or prejudice legitimate
commercial interests of particular enterprises.
6. Each Party shall maintain or establish one or more inquiry
points no later than 180 days after the date of entry into
force of this Agreement, to respond in writing as soon as
practicable, to all reasonable inquiries from interested
persons regarding measures of general application covered by
this Chapter.
Article 1412: Financial Services Committee
1. The Parties hereby establish the Financial Services
Committee. The principal representative of each Party shall be
an official of the Party's authority responsible for financial
services set out in Annex 1412.1.
2. Subject to Article 2001(2)(d) (Free Trade Commission), the
Committee shall:
(a) supervise the implementation of this Chapter and its
further elaboration;
(b) consider issues regarding financial services that are
referred to it by a Party; and
(c) participate in the dispute settlement procedures in
accordance with Article 1415.
3. The Committee shall meet annually to assess the
functioning of this Agreement as it applies to financial
services. The Committee shall inform the Commission of the
results of each annual meeting.
Article 1413: Consultations
1. A Party may request consultations with another Party
regarding any matter arising under this Agreement that affects
financial services. The other Party shall give sympathetic
consideration to the request. The consulting Parties shall
report the results of their consultations to the Committee at
its annual meeting.
2. Consultations under this Article shall include officials
of the authorities specified in Annex 1412.1.
3. A Party may request that regulatory authorities of another
Party participate in consultations under this Article regarding
that other Party's measures of general application which may
affect the operations of financial institutions or cross-border
financial service providers in the requesting Party's
territory.
4. Nothing in this Article shall be construed to require
regulatory authorities participating in consultations under
paragraph 3 to disclose information or take any action that
would interfere with individual regulatory, supervisory,
administrative or enforcement matters.
5. Where a Party requires information for supervisory
purposes concerning a financial institution in another Party's
territory or a cross-border financial service provider in
another Party's territory, the Party may approach the competent
regulatory authority in the other Party's territory to seek the
information.
6. Annex 1413.6 shall apply to further consultations and
arrangements.
Article 1414: Dispute Settlement
1. Section B of Chapter Twenty (Institutional Arrangements
and Dispute Settlement Procedures) applies as modified by this
Article to the settlement of disputes arising under this
Chapter.
2. The Parties shall establish by January 1, 1994 and
maintain a roster of up to 15 individuals who are willing and
able to serve as financial services panelists. Financial
services roster members shall be appointed by consensus for
terms of three years, and may be reappointed.
3. Financial services roster members shall:
(a) have expertise or experience in financial services
law or practice, which may include the regulation of
financial institutions;
(b) be chosen strictly on the basis of objectivity,
reliability and sound judgment; and
(c) meet the qualifications set out in Article 2009(2)(b)
and (c) (Roster).
4. Where a Party claims that a dispute arises under this
Chapter, Article 2011 (Panel Selection) shall apply, except
that:
(a) where the disputing Parties so agree, the panel shall
be composed entirely of panelists meeting the
qualifications in paragraph 3; and
(b) in any other case,
(i) each disputing Party may select panelists
meeting the qualifications set out in paragraph
3 or in Article 2010(1) (Qualifications of
Panelists), and
(ii) if the Party complained against invokes Article
1410, the chair of the panel shall meet the
qualifications set out in paragraph 3.
5. In any dispute where a panel finds a measure to be
inconsistent with the obligations of this Agreement and the
measure affects:
(a) only the financial services sector, the complaining
Party may suspend benefits only in the financial
services sector;
(b) the financial services sector and any other sector,
the complaining Party may suspend benefits in the
financial services sector that have an effect
equivalent to the effect of the measure in the
Party's financial services sector; or
(c) only a sector other than the financial services
sector, the complaining Party may not suspend
benefits in the financial services sector.
Article 1415: Investment Disputes in Financial Services
1. Where an investor of another Party submits a claim under
Article 1116 or 1117 to arbitration under Section B of Chapter
Eleven (Investment - Settlement of Disputes between a Party and
an Investor of Another Party) against a Party and the disputing
Party invokes Article 1410, on request of the disputing Party,
the Tribunal shall refer the matter in writing to the Committee
for a decision. The Tribunal may not proceed pending receipt
of a decision or report under this Article.
2. In a referral pursuant to paragraph 1, the Committee shall
decide the issue of whether and to what extent Article 1410 is
a valid defense to the claim of the investor. The Committee
shall transmit a copy of its decision to the Tribunal and to
the Commission. The decision shall be binding on the Tribunal.
3. Where the Committee has not decided the issue within 60
days of the receipt of the referral under paragraph 1, the
disputing Party or the Party of the disputing investor may
request the establishment of an arbitral panel under Article
2008 (Request for an Arbitral Panel). The panel shall be
constituted in accordance with Article 1414. Further to
Article 2017 (Final Report), the panel shall transmit its final
report to the Committee and to the Tribunal. The report shall
be binding on the Tribunal.
4. Where no request for the establishment of a panel pursuant
to paragraph 3 has been made within 10 days of the expiration
of the 60-day period referred to in paragraph 3, the Tribunal
may proceed to decide the matter.
Article 1416: Definitions
For purposes of this Chapter:
cross-border financial service provider of a Party means a
person of a Party that is engaged in the business of providing
a financial service within the territory of the Party and that
seeks to provide or provides financial services through the
cross-border provision of such services;
cross-border provision of a financial service or cross-border
trade in financial services means the provision of a financial
service:
(a) from the territory of a Party into the territory of
another Party,
(b) in the territory of a Party by a person of that Party
to a person of another Party, or
(c) by a national of a Party in the territory of another
Party,
but does not include the provision of a service in the
territory of a Party by an investment in that territory;
financial institution means any financial intermediary or other
enterprise that is authorized to do business and regulated or
supervised as a financial institution under the law of the
Party in whose territory it is located;
financial institution of another Party means a financial
institution, including a branch, located in the territory of a
Party that is controlled by persons of another Party;
financial service means a service of a financial nature,
including insurance, and a service incidental or auxiliary to a
service of a financial nature;
financial service provider of a Party means a person of a Party
that is engaged in the business of providing a financial
service within the territory of that Party;
investment means "investment" as defined in Article 1139
(Investment - Definitions), except that, with respect to
"loans" and "debt securities" referred to in that Article:
(a) a loan to or debt security issued by a financial
institution is an investment only where it is treated
as regulatory capital by the Party in whose territory
the financial institution is located; and
(b) a loan granted by or debt security owned by a
financial institution, other than a loan to or debt
security of a financial institution referred to in
subparagraph (a), is not an investment;
for greater certainty:
(c) a loan to, or debt security issued by, a Party or a
state enterprise thereof is not an investment; and
(d) a loan granted by or debt security owned by a cross-
border financial service provider, other than a loan
to or debt security issued by a financial
institution, is an investment if such loan or debt
security meets the criteria for investments set out
in Article 1139;
investor of a Party means a Party or state enterprise thereof,
or a person of that Party, that seeks to make, makes, or has
made an investment;
new financial service means a financial service not provided in
the Party's territory that is provided within the territory of
another Party, and includes any new form of delivery of a
financial service or the sale of a financial product that is
not sold in the Party's territory;
person of a Party means "person of a Party" as defined in
Chapter Two (General Definitions) and, for greater certainty,
does not include a branch of an enterprise of a non-Party;
public entity means a central bank or monetary authority of a
Party, or any financial institution owned or controlled by a
Party; and
self-regulatory organization means any non-governmental body,
including any securities or futures exchange or market,
clearing agency, or other organization or association, that
exercises its own or delegated regulatory or supervisory
authority over financial service providers or financial
institutions.
Annex 1401.4
Country-Specific Commitments
For Canada and the United States, Article 1702(1) and (2)
of the Canada - United States Free Trade Agreement is hereby
incorporated into and made a part of this Agreement.
Annex 1403.3
Review of Market Access
The review of market access referred to in Article 1403(3)
shall not include the market access limitations specified in
Section B of the Schedule of Mexico to Annex VII.
Annex 1404.4
Consultations on Liberalization of Cross-Border Trade
No later than January 1, 2000, the Parties shall consult
on further liberalization of cross-border trade in financial
services. In such consultations the Parties shall, with
respect to insurance:
(a) consider the possibility of allowing a wider range of
insurance services to be provided on a cross-border
basis in or into their respective territories; and
(b) determine whether the limitations on cross-border
insurance services specified in Section A of the
Schedule of Mexico to Annex VII shall be maintained,
modified or eliminated.
Annex 1409.1
Provincial and State Reservations
1. Canada may set out in Section A of its Schedule to Annex
VII by the date of entry into force of this Agreement any
existing non-conforming measure maintained at the provincial
level.
2. The United States may set out in Section A of its Schedule
to Annex VII by the date of entry into force of this Agreement
any existing non-conforming measures maintained by California,
Florida, Illinois, New York, Ohio and Texas. Existing non-
conforming state measures of all other states may be set out by
January 1, 1995.
Annex 1412.1
Authorities Responsible for Financial Services
The authority of each Party responsible for financial services
shall be:
(a) for Canada, the Department of Finance of Canada;
(b) for Mexico, the Secretar a de Hacienda y Cr dito
P blico; and
(c) for the United States, the Department of the Treasury
for banking and other financial services and the
Department of Commerce for insurance services.
Annex 1413.6
Further Consultations and Arrangements
Section A - Limited Scope Financial Institutions
Three years after the date of entry into force of this
Agreement, the Parties shall consult on the aggregate limit on
limited scope financial institutions described in paragraph 8
of Section B of the Schedule of Mexico to Annex VII.
Section B - Payments System Protection
1. If the sum of the authorized capital of foreign commercial
bank affiliates (as such term is defined in the Schedule of
Mexico to Annex VII), measured as a percentage of the aggregate
capital of all commercial banks in Mexico, reaches 25 percent,
Mexico may request consultations with the other Parties on the
potential adverse effects arising from the presence of
commercial banks of the other Parties in the Mexican market and
the possible need for remedial action, including further
temporary limitations on market participation. The
consultations shall be completed expeditiously.
2. In considering the potential adverse effects, the Parties
shall take into account:
(a) the threat that the Mexican payments system may be
controlled by non-Mexican persons;
(b) the effects foreign commercial banks established in
Mexico may have on Mexico's ability to conduct
monetary and exchange-rate policy effectively; and
(c) the adequacy of this Chapter in protecting the
Mexican payments system.
3. If no consensus is reached on the matters referred to in
paragraph 1, any Party may request the establishment of an
arbitral panel under Article 1414 or Article 2008 (Request for
an Arbitral Panel). The panel proceedings shall be conducted
in accordance with the Model Rules of Procedure established
under Article 2012 (Rules of Procedure). The Panel shall
present its determination within 60 days after the last
panelist is selected or such other period as the Parties to the
proceeding may agree. Article 2018 (Implementation of Final
Report) and 2019 (Non-Implementation -- Suspension of Benefits)
Annex 1413.6
shall not apply in such proceedings.
Title:Competition Policy, Monopolies and State Enterprises -- Chap 15
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:10487
Chapter Fifteen
Competition Policy, Monopolies and State Enterprises
Article 1501: Competition Law
1. Each Party shall adopt or maintain measures to proscribe
anti-competitive business conduct and take appropriate action
with respect thereto, recognizing that such measures will
enhance the fulfillment of the objectives of this Agreement.
To this end the Parties shall consult from time to time about
the effectiveness of measures undertaken by each Party.
2. Each Party recognizes the importance of cooperation and
coordination among their authorities to further effective
competition law enforcement in the free trade area. The
Parties shall cooperate on issues of competition law
enforcement policy, including mutual legal assistance,
notification, consultation and exchange of information relating
to the enforcement of competition laws and policies in the free
trade area.
3. No Party may have recourse to dispute settlement under
this Agreement for any matter arising under this Article.
Article 1502: Monopolies and State Enterprises
1. Nothing in this Agreement shall be construed to prevent a
Party from designating a monopoly.
2. Where a Party intends to designate a monopoly and the
designation may affect the interests of persons of another
Party, the Party shall:
(a) wherever possible, provide prior written notification
to the other Party of the designation; and
(b) endeavor to introduce at the time of the designation
such conditions on the operation of the monopoly as
will minimize or eliminate any nullification or
impairment of benefits in the sense of Annex 2004
(Nullification and Impairment).
3. Each Party shall ensure, through regulatory control,
administrative supervision or the application of other
measures, that any privately-owned monopoly that it designates
and any government monopoly that it maintains or designates:
(a) acts in a manner that is not inconsistent with the
Party's obligations under this Agreement wherever
such a monopoly exercises any regulatory,
administrative or other governmental authority that
the Party has delegated to it in connection with the
monopoly good or service, such as the power to grant
import or export licenses, approve commercial
transactions or impose quotas, fees or other charges;
(b) except to comply with any terms of its designation
that are not inconsistent with subparagraph (c) or
(d), acts solely in accordance with commercial
considerations in its purchase or sale of the
monopoly good or service in the relevant market,
including with regard to price, quality,
availability, marketability, transportation and other
terms and conditions of purchase or sale;
(c) provides non-discriminatory treatment to investments
of investors, to goods and to service providers of
another Party in its purchase or sale of the monopoly
good or service in the relevant market; and
(d) does not use its monopoly position to engage, either
directly or indirectly, including through its
dealings with its parent, its subsidiary or other
enterprise with common ownership, in anticompetitive
practices in a non-monopolized market in its
territory that adversely affect an investment of an
investor of another Party, including through the
discriminatory provision of the monopoly good or
service, cross-subsidization or predatory conduct.
4. Paragraph 3 does not apply to procurement by governmental
agencies of goods or services for governmental purposes and not
with a view to commercial resale or with a view to use in the
production of goods or the provision of services for commercial
sale.
5. For purposes of this Article "maintain" means designate
prior to the date of entry into force of this Agreement and
existing on January 1, 1994.
Article 1503: State Enterprises
1. Nothing in this Agreement shall be construed to prevent a
Party from maintaining or establishing a state enterprise.
2. Each Party shall ensure, through regulatory control,
administrative supervision or the application of other
measures, that any state enterprise that it maintains or
establishes acts in a manner that is not inconsistent with the
Party's obligations under Chapters Eleven (Investment) and
Fourteen (Financial Services) wherever such enterprise
exercises any regulatory, administrative or other governmental
authority that the Party has delegated to it, such as the power
to expropriate, grant licenses, approve commercial transactions
or impose quotas, fees or other charges.
3. Each Party shall ensure that any state enterprise that it
maintains or establishes accords non-discriminatory treatment
in the sale of its goods or services to investments in the
Party's territory of investors of another Party.
Article 1504: Working Group on Trade and Competition
The Commission shall establish a Working Group on Trade
and Competition, comprising representatives of each Party, to
report, and to make recommendations on further work as
appropriate, to the Commission within five years of the date of
entry into force of this Agreement on relevant issues
concerning the relationship between competition laws and
policies and trade in the free trade area.
Article 1505: Definitions
For purposes of this Chapter:
designate means to establish, designate or authorize, or to
expand the scope of a monopoly to cover an additional good or
service, after the date of entry into force of this Agreement;
discriminatory provision includes treating:
(a) a parent, a subsidiary or other enterprise with
common ownership more favorably than an unaffiliated
enterprise, or
(b) one class of enterprises more favorably than another,
in like circumstances;
government monopoly means a monopoly that is owned, or
controlled through ownership interests, by the federal
government of a Party or by another such monopoly;
in accordance with commercial considerations means consistent
with normal business practices of privately-held enterprises in
the relevant business or industry;
market means the geographic and commercial market for a good or
service;
monopoly means an entity, including a consortium or government
agency, that in any relevant market in the territory of a Party
is designated as the sole provider or purchaser of a good or
service, but does not include an entity that has been granted
an exclusive intellectual property right solely by reason of
such grant;
non-discriminatory treatment means the better of national
treatment and most-favored-nation treatment, as set out in the
relevant provisions of this Agreement; and
state enterprise means, except as set out in Annex 1505, an
enterprise owned, or controlled through ownership interests, by
a Party.
Annex 1505
Country-Specific Definitions of State Enterprises
For purposes of Article 1503(3), "state enterprise":
(a) with respect to Canada, means a Crown corporation
within the meaning of the Financial Administration
Act (Canada), a Crown corporation within the meaning
of any comparable provincial law or equivalent entity
that is incorporated under other applicable
provincial law; and
(b) with respect to Mexico, does not include, the
Compa a Nacional de Subsistencias Populares
(National Company for Basic Commodities) and its
existing affiliates, or any successor enterprise or
its affiliates, for purposes of sales of maize, beans
and powdered milk.
Title:Temporary Entry for Business Persons -- Chapter Sixteen
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:49258
Chapter Sixteen
Temporary Entry for Business Persons
Article 1601: General Principles
Further to Article 102 (Objectives), this Chapter reflects
the preferential trading relationship between the Parties, the
desirability of facilitating temporary entry on a reciprocal
basis and of establishing transparent criteria and procedures
for temporary entry, and the need to ensure border security and
to protect the domestic labor force and permanent employment in
their respective territories.
Article 1602: General Obligations
1. Each Party shall apply its measures relating to the
provisions of this Chapter in accordance with Article 1601 and,
in particular, shall apply expeditiously those measures so as
to avoid unduly impairing or delaying trade in goods or
services or conduct of investment activities under this
Agreement.
2. The Parties shall endeavor to develop and adopt common
criteria, definitions and interpretations for the
implementation of this Chapter.
Article 1603: Grant of Temporary Entry
1. Each Party shall grant temporary entry to business persons
who are otherwise qualified for entry under applicable measures
relating to public health and safety and national security, in
accordance with this Chapter, including the provisions of Annex
1603.
2. A Party may refuse to issue an immigration document
authorizing employment to a business person where the temporary
entry of that person might affect adversely:
(a) the settlement of any labor dispute that is in
progress at the place or intended place of
employment; or
(b) the employment of any person who is involved in such
dispute.
3. When a Party refuses pursuant to paragraph 2 to issue an
immigration document authorizing employment, it shall:
(a) inform in writing the business person of the reasons
for the refusal; and
(b) promptly notify in writing the Party whose business
person has been refused entry of the reasons for the
refusal.
4. Each Party shall limit any fees for processing
applications for temporary entry of business persons to the
approximate cost of services rendered.
Article 1604: Provision of Information
1. Further to Article 1802 (Publication), each Party shall:
(a) provide to the other Parties such materials as will
enable them to become acquainted with its measures
relating to this Chapter; and
(b) no later than one year after the date of entry into
force of this Agreement, prepare, publish and make
available in its own territory, and in the
territories of the other Parties, explanatory
material in a consolidated document regarding the
requirements for temporary entry under this Chapter
in such a manner as will enable business persons of
the other Parties to become acquainted with them.
2. Subject to Annex 1604.2, each Party shall collect and
maintain, and make available to the other Parties in accordance
with its domestic law, data respecting the granting of
temporary entry under this Chapter to business persons of the
other Parties who have been issued immigration documentation,
including data specific to each occupation, profession or
activity.
Article 1605: Working Group
1. The Parties hereby establish a Temporary Entry Working
Group, comprising representatives of each Party, including
immigration officials.
2. The Working Group shall meet at least once each year to
consider:
(a) the implementation and administration of this
Chapter;
(b) the development of measures to further facilitate
temporary entry of business persons on a reciprocal
basis;
(c) the waiving of labor certification tests or
procedures of similar effect for spouses of business
persons who have been granted temporary entry for
more than one year under Section B, C or D of Annex
1603; and
(d) proposed modifications of or additions to this
Chapter.
Article 1606: Dispute Settlement
1. A Party may not initiate proceedings under Article 2007
(Commission - Good Offices, Conciliation and Mediation)
regarding a refusal to grant temporary entry under this Chapter
or a particular case arising under Article 1602(1) unless:
(a) the matter involves a pattern of practice; and
(b) the business person has exhausted the available
administrative remedies regarding the particular
matter.
2. The remedies referred to in paragraph (1)(b) shall be
deemed to be exhausted if a final determination in the matter
has not been issued by the competent authority within one year
of the institution of an administrative proceeding, and the
failure to issue a determination is not attributable to delay
caused by the business person.
Article 1607: Relation to Other Chapters
Except for this Chapter, Chapters One (Objectives), Two
(General Definitions), Twenty (Institutional Arrangements and
Dispute Settlement Procedures) and Twenty-Two (Final
Provisions) and Articles 1801 (Contacts Points), 1802
(Publication), 1803 (Notification and Provision of Information)
and 1804 (Administrative Proceedings), no provision of this
Agreement shall impose any obligation on a Party regarding its
immigration measures.
Article 1608: Definitions
For purposes of this Chapter:
business person means a citizen of a Party who is engaged in
trade in goods, the provision of services or the conduct of
investment activities;
citizen means "citizen" as defined in Annex 1608 for the
Parties specified in that Annex;
existing means "existing" as defined in Annex 1608 for the
Parties specified in that Annex; and
temporary entry means entry into the territory of a Party by a
business person of another Party without the intent to
establish permanent residence.
Annex 1603
Temporary Entry for Business Persons
Section A - Business Visitors
1. Each Party shall grant temporary entry to a business
person seeking to engage in a business activity set out in
Appendix 1603.A.1, without requiring that person to obtain an
employment authorization, provided that the business person
otherwise complies with existing immigration measures
applicable to temporary entry, on presentation of:
(a) proof of citizenship of a Party;
(b) documentation demonstrating that the business person
will be so engaged and describing the purpose of
entry; and
(c) evidence demonstrating that the proposed business
activity is international in scope and that the
business person is not seeking to enter the local
labor market.
2. Each Party shall provide that a business person may
satisfy the requirements of paragraph 1(c) by demonstrating
that:
(a) the primary source of remuneration for the proposed
business activity is outside the territory of the
Party granting temporary entry; and
(b) the business person's principal place of business and
the actual place of accrual of profits, at least
predominantly, remain outside such territory.
A Party shall normally accept an oral declaration as to the
principal place of business and the actual place of accrual of
profits. Where the Party requires further proof, it shall
normally consider a letter from the employer attesting to these
matters as sufficient proof.
3. Each Party shall grant temporary entry to a business
person seeking to engage in a business activity other than
those set out in Appendix 1603.A.1, without requiring that
person to obtain an employment authorization, on a basis no
less favorable than that provided under the existing provisions
Annex 1603
of the measures set out in Appendix 1603.A.3, provided that the
business person otherwise complies with existing immigration
measures applicable to temporary entry.
4. No Party may:
(a) as a condition for temporary entry under paragraph 1
or 3, require prior approval procedures, petitions,
labor certification tests or other procedures of
similar effect; or
(b) impose or maintain any numerical restriction relating
to temporary entry under paragraph 1 or 3.
5. Notwithstanding paragraph 4, a Party may require a
business person seeking temporary entry under this Section to
obtain a visa or its equivalent prior to entry. Before
imposing a visa requirement, the Party shall consult, on
request, with a Party whose business persons would be affected
with a view to avoiding the imposition of the requirement.
With respect to an existing visa requirement, a Party shall
consult, on request, with a Party whose business persons are
subject to the requirement with a view to its removal.
Section B - Traders and Investors
1. Each Party shall grant temporary entry and provide
confirming documentation to a business person seeking to:
(a) carry on substantial trade in goods or services
principally between the territory of the Party of
which the business person is a citizen and the
territory of the Party into which entry is sought, or
(b) establish, develop, administer or provide advice or
key technical services to the operation of an
investment to which the business person or the
business person's enterprise has committed, or is in
the process of committing, a substantial amount of
capital, in a capacity that is supervisory, executive
or involves essential skills,
provided that the business person otherwise complies with
existing immigration measures applicable to temporary entry.
2. No Party may:
Annex 1603
(a) as a condition for temporary entry under paragraph 1,
require labor certification tests or other procedures
of similar effect; or
(b) impose or maintain any numerical restriction relating
to temporary entry under paragraph 1.
3. Notwithstanding paragraph 2, a Party may require a
business person seeking temporary entry under this Section to
obtain a visa or its equivalent prior to entry.
Section C - Intra-Company Transferees
1. Each Party shall grant temporary entry and provide
confirming documentation to a business person employed by an
enterprise who seeks to render services to that enterprise or a
subsidiary or affiliate thereof, in a capacity that is
managerial, executive or involves specialized knowledge,
provided that the business person otherwise complies with
existing immigration measures applicable to temporary entry. A
Party may require the business person to have been employed
continuously by the enterprise for one year within the three-
year period immediately preceding the date of the application
for admission.
2. No Party may:
(a) as a condition for temporary entry under paragraph 1,
require labor certification tests or other procedures
of similar effect; or
(b) impose or maintain any numerical restriction relating
to temporary entry under paragraph 1.
3. Notwithstanding paragraph 2, a Party may require a
business person seeking temporary entry under this Section to
obtain a visa or its equivalent prior to entry. Before
imposing a visa requirement, the Party shall consult with a
Party whose business persons would be affected with a view to
avoiding the imposition of the requirement. With respect to an
existing visa requirement, a Party shall consult, on request,
with a Party whose business persons are subject to the
requirement with a view to its removal.
Section D - Professionals
Annex 1603
1. Each Party shall grant temporary entry and provide
confirming documentation to a business person seeking to engage
in a business activity at a professional level in a profession
set out in Appendix 1603.D.1, if the business person otherwise
complies with existing immigration measures applicable to
temporary entry, on presentation of:
(a) proof of citizenship of a Party; and
(b) documentation demonstrating that the business person
will be so engaged and describing the purpose of
entry.
2. No Party may:
(a) as a condition for temporary entry under paragraph 1,
require prior approval procedures, petitions, labor
certification tests or other procedures of similar
effect; or
(b) impose or maintain any numerical restriction relating
to temporary entry under paragraph 1.
3. Notwithstanding paragraph 2, a Party may require a
business person seeking temporary entry under this Section to
obtain a visa or its equivalent prior to entry. Before
imposing a visa requirement, the Party shall consult with a
Party whose business persons would be affected with a view to
avoiding the imposition of the requirement. With respect to an
existing visa requirement, a Party shall consult, on request,
with a Party whose business persons are subject to the
requirement with a view to its removal.
4. Notwithstanding paragraphs 1 and 2, a Party may establish
an annual numerical limit, which shall be set out in Appendix
1603.D.4, regarding temporary entry of business persons of
another Party seeking to engage in business activities at a
professional level in a profession set out in Appendix
1603.D.1, if the Parties concerned have not agreed otherwise
prior to the date of entry into force of this Agreement for
those Parties. In establishing such a limit, the Party shall
consult with the other Party concerned.
5. A Party establishing a numerical limit pursuant to
paragraph 4, unless the Parties concerned agree otherwise:
(a) shall, for each year after the first year after the
date of entry into force of this Agreement, consider
increasing the numerical limit set out in Appendix
1603.D.4 by an amount to be established in
consultation with the other Party concerned, taking
into account the demand for temporary entry under
this Section;
(b) shall not apply its procedures established pursuant
to paragraph 1 to the temporary entry of a business
person subject to the numerical limit, but may
require the business person to comply with its other
procedures applicable to the temporary entry of
professionals; and
(c) may, in consultation with the other Party concerned,
grant temporary entry under paragraph 1 to a business
person who practices in a profession where
accreditation, licensing, and certification
requirements are mutually recognized by those
Parties.
6. Nothing in paragraph 4 or 5 shall be construed to limit
the ability of a business person to seek temporary entry under
a Party's applicable immigration measures relating to the entry
of professionals other than those adopted or maintained
pursuant to paragraph 1.
7. Three years after a Party establishes a numerical limit
pursuant to paragraph 4, it shall consult with the other Party
concerned with a view to determining a date after which the
limit shall cease to apply.
Annex 1603
Appendix 1603.A.1
Business Visitors
Research and Design
- Technical, scientific and statistical researchers
conducting independent research or research for an
enterprise located in the territory of another Party.
Growth, Manufacture and Production
- Harvester owner supervising a harvesting crew admitted
under applicable law.
- Purchasing and production management personnel conducting
commercial transactions for an enterprise located in the
territory of another Party.
Marketing
- Market researchers and analysts conducting independent
research or analysis or research or analysis for an
enterprise located in the territory of another Party.
- Trade fair and promotional personnel attending a trade
convention.
Sales
- Sales representatives and agents taking orders or
negotiating contracts for goods or services for an
enterprise located in the territory of another Party but
not delivering goods or providing services.
- Buyers purchasing for an enterprise located in the
territory of another Party.
Distribution
- Transportation operators transporting goods or passengers
to the territory of a Party from the territory of another
Party or loading and transporting goods or passengers from
Annex 1603
the territory of a Party, with no unloading in that
territory, to the territory of another Party.
- With respect to temporary entry into the territory of the
United States, Canadian customs brokers performing
brokerage duties relating to the export of goods from the
territory of the United States to or through the territory
of Canada.
- With respect to temporary entry into the territory of
Canada, United States customs brokers performing brokerage
duties relating to the export of goods from the territory
of Canada to or through the territory of the United
States.
- Customs brokers providing consulting services regarding
the facilitation of the import or export of goods.
After-Sales Service
- Installers, repair and maintenance personnel, and
supervisors, possessing specialized knowledge essential to
a seller's contractual obligation, performing services or
training workers to perform services, pursuant to a
warranty or other service contract incidental to the sale
of commercial or industrial equipment or machinery,
including computer software, purchased from an enterprise
located outside the territory of the Party into which
temporary entry is sought, during the life of the warranty
or service agreement.
General Service
- Professionals engaging in a business activity at a
professional level in a profession set out in Appendix
1603.D.1.
- Management and supervisory personnel engaging in a
commercial transaction for an enterprise located in the
territory of another Party.
- Financial services personnel (insurers, bankers or
investment brokers) engaging in commercial transactions
for an enterprise located in the territory of another
Party.
Annex 1603
- Public relations and advertising personnel consulting with
business associates, or attending or participating in
conventions.
- Tourism personnel (tour and travel agents, tour guides or
tour operators) attending or participating in conventions
or conducting a tour that has begun in the territory of
another Party.
- Tour bus operators entering the territory of a Party:
(a) with a group of passengers on a bus tour that has
begun in, and will return to, the territory of
another Party;
(b) to meet a group of passengers on a bus tour that will
end, and the predominant portion of which will take
place, in the territory of another Party; or
(c) with a group of passengers on a bus tour to be
unloaded in the territory of the Party into which
temporary entry is sought, and returning with no
passengers or reloading with the group for
transportation to the territory of another Party.
- Translators or interpreters performing services as
employees of an enterprise located in the territory of
another Party.
Definitions
For purposes of this Appendix:
territory of another Party means the territory of a Party other
than the territory of the Party into which temporary entry is
sought;
tour bus operator means a natural person, including relief
personnel accompanying or following to join, necessary for the
operation of a tour bus for the duration of a trip; and
transportation operator means a natural person, other than a
tour bus operator, including relief personnel accompanying or
following to join, necessary for the operation of a vehicle for
the duration of a trip.
Annex 1603
Appendix 1603.A.3
Existing Immigration Measures
1. In the case of Canada, subsection 19(1) of the Immigration
Regulations, 1978, SOR/78-172, as amended, made under the
Immigration Act, R.S.C. 1985, c. I-2, as amended.
2. In the case of the United States, section 101(a)(15)(B) of
the Immigration and Nationality Act, 1952, as amended.
3. In the case of Mexico, Chapter III of the Ley General de
Poblacion, 1974, as amended.
Annex 1603
Appendix 1603.D.1
Professionals
PROFESSION1 MINIMUM EDUCATION REQUIREMENTS
AND ALTERNATIVE CREDENTIALS
General
Accountant Baccalaureate or Licenciatura
Degree; or C.P.A., C.A.,
C.G.A. or C.M.A.
Architect Baccalaureate or Licenciatura
Degree; or state/provincial
license2
Computer Systems Analyst Baccalaureate or Licenciatura
Degree; or Post-Secondary
Diploma3 or Post-Secondary
Certificate4, and three years
experience
1 A business person seeking temporary entry under this
Appendix may also perform training functions relating to the
profession, including conducting seminars.
2 "State/provincial license" and
"state/provincial/federal license" mean any document issued by
a state, provincial or federal government, as the case may be,
or under its authority, but not by a local government, that
permits a person to engage in a regulated activity or
profession.
3 "Post-Secondary Diploma" means a credential issued,
on completion of two or more years of post-secondary education,
by an accredited academic institution in Canada or the United
States.
4 "Post-Secondary Certificate" means a certificate
issued, on completion of two or more years of post-secondary
education at an academic institution, by the federal government
of Mexico or a state government in Mexico, an academic
institution recognized by the federal government or a state
government, or an academic institution created by federal or
state law.
Annex 1603
Disaster Relief Insurance Baccalaureate or Licenciatura
Claims Adjuster (claims Degree, and successful
adjuster employed by an completion of training in the
insurance company located in appropriate areas of insurance
the territory of a Party, or adjustment pertaining to
an independent claims disaster relief claims; or
adjuster) three years experience in
claims adjustment and
successful completion of
training in the appropriate
areas of insurance adjustment
pertaining to disaster relief
claims
Economist Baccalaureate or Licenciatura
Degree
Engineer Baccalaureate or Licenciatura
Degree; or state/provincial
license
Forester Baccalaureate or Licenciatura
Degree; or state/provincial
license
Graphic Designer Baccalaureate or Licenciatura
Degree; or Post-Secondary
Diploma or Post-Secondary
Certificate, and three years
experience
Hotel Manager Baccalaureate or Licenciatura
Degree in hotel/restaurant
management; or Post-Secondary
Diploma or Post-Secondary
Certificate in
hotel/restaurant management,
and three years experience in
hotel/restaurant management
Industrial Designer Baccalaureate or Licenciatura
Degree; or Post-Secondary
Diploma or Post-Secondary
Certificate, and three years
experience
Annex 1603
Interior Designer Baccalaureate or Licenciatura
Degree; or Post-Secondary
Diploma or Post-Secondary
Certificate, and three years
experience
Land Surveyor Baccalaureate or Licenciatura
Degree; or
state/provincial/federal
license
Landscape Architect Baccalaureate or Licenciatura
Degree
Lawyer (including Notary in LL.B., J.D., LL.L., B.C.L. or
the Province of Quebec) Licenciatura Degree (five
years); or membership in a
state/provincial bar
Librarian M.L.S. or B.L.S. (for which
another Baccalaureate or
Licenciatura Degree was a
prerequisite)
Management Consultant Baccalaureate or Licenciatura
Degree; or equivalent
professional experience as
established by statement or
professional credential
attesting to five years
experience as a management
consultant, or five years
experience in a field of
specialty related to the
consulting agreement
Mathematician (including Baccalaureate or Licenciatura
Statistician) Degree
Range Manager/ Baccalaureate or Licenciatura
Range Conservationalist Degree
Research Assistant Baccalaureate or Licenciatura
(working in a post-secondary Degree
educational institution)
Annex 1603
Scientific Possession of (a) theoretical
Technician/Technologist1 knowledge of any of the
following disciplines:
agricultural sciences,
astronomy, biology, chemistry,
engineering, forestry,
geology, geophysics,
meteorology or physics; and
(b) the ability to solve
practical problems in any of
those disciplines, or the
ability to apply principles of
any of those disciplines to
basic or applied research
Social Worker Baccalaureate or Licenciatura
Degree
Sylviculturist (including Baccalaureate or Licenciatura
Forestry Specialist) Degree
Technical Publications Writer Baccalaureate or Licenciatura
Degree; or Post-Secondary
Diploma or Post-Secondary
Certificate, and three years
experience
Urban Planner (including Baccalaureate or Licenciatura
Geographer) Degree
Vocational Counsellor Baccalaureate or Licenciatura
Degree
Medical/Allied Professional
Dentist D.D.S., D.M.D., Doctor en
Odontologia or Doctor en
Cirugia Dental; or
state/provincial license
1 A business person in this category must be seeking
temporary entry to work in direct support of professionals in
agricultural sciences, astronomy, biology, chemistry,
engineering, forestry, geology, geophysics, meteorology or
physics.
Annex 1603
Dietitian Baccalaureate or Licenciatura
Degree; or state/provincial
license
Medical Laboratory Baccalaureate or Licenciatura
Technologist (Canada)/Medical Degree; or Post-Secondary
Technologist (Mexico and the Diploma or Post-Secondary
United States)1 Certificate, and three years
experience
Nutritionist Baccalaureate or Licenciatura
Degree
Occupational Therapist Baccalaureate or Licenciatura
Degree; or state/provincial
license
Pharmacist Baccalaureate or Licenciatura
Degree; or state/provincial
license
Physician (teaching or M.D. or Doctor en Medicina; or
research only) state/provincial license
Physiotherapist/Physical Baccalaureate or Licenciatura
Therapist Degree; or state/provincial
license
Psychologist State/provincial license; or
Licenciatura Degree
Recreational Therapist Baccalaureate or Licenciatura
Degree
Registered Nurse State/provincial license; or
Licenciatura Degree
Veterinarian D.V.M., D.M.V. or Doctor en
Veterinaria; or
state/provincial license
Scientist
1 A business person in this category must be seeking
temporary entry to perform in a laboratory chemical,
biological, hematological, immunologic, microscopic or
bacteriological tests and analyses for diagnosis, treatment or
prevention of disease.
Annex 1603
Agriculturist (including Baccalaureate or Licenciatura
Agronomist) Degree
Animal Breeder Baccalaureate or Licenciatura
Degree
Animal Scientist Baccalaureate or Licenciatura
Degree
Apiculturist Baccalaureate or Licenciatura
Degree
Astronomer Baccalaureate or Licenciatura
Degree
Biochemist Baccalaureate or Licenciatura
Degree
Biologist Baccalaureate or Licenciatura
Degree
Chemist Baccalaureate or Licenciatura
Degree
Dairy Scientist Baccalaureate or Licenciatura
Degree
Entomologist Baccalaureate or Licenciatura
Degree
Epidemiologist Baccalaureate or Licenciatura
Degree
Geneticist Baccalaureate or Licenciatura
Degree
Geologist Baccalaureate or Licenciatura
Degree
Geochemist Baccalaureate or Licenciatura
Degree
Geophysicist (including Baccalaureate or Licenciatura
Oceanographer in Mexico and Degree
the United States)
Horticulturist Baccalaureate or Licenciatura
Degree
Meteorologist Baccalaureate or Licenciatura
Degree
Annex 1603
Pharmacologist Baccalaureate or Licenciatura
Degree
Physicist (including Baccalaureate or Licenciatura
Oceanographer in Canada) Degree
Plant Breeder Baccalaureate or Licenciatura
Degree
Poultry Scientist Baccalaureate or Licenciatura
Degree
Soil Scientist Baccalaureate or Licenciatura
Degree
Zoologist Baccalaureate or Licenciatura
Degree
Teacher
College Baccalaureate or Licenciatura
Degree
Seminary Baccalaureate or Licenciatura
Degree
University Baccalaureate or Licenciatura
Degree
Annex 1603
Appendix 1603.D.4
United States
1. Beginning on the date of entry into force of this
Agreement as between the United States and Mexico, the United
States shall annually approve as many as 5,500 initial
petitions of business persons of Mexico seeking temporary entry
under Section D of Annex 1603 to engage in a business activity
at a professional level in a profession set out in Appendix
1603.D.1.
2. For purposes of paragraph 1, the United States shall not
take into account:
(a) the renewal of a period of temporary entry;
(b) the entry of a spouse or children accompanying or
following to join the principal business person;
(c) an admission under section 101(a)(15)(H)(i)(b) of the
Immigration and Nationality Act, 1952, as may be
amended, including the worldwide numerical limit
established by section 214(g)(1)(A) of that Act; or
(d) an admission under any other provision of section
101(a)(15) of that Act relating to the entry of
professionals.
3. Paragraphs 4 and 5 of Section D of Annex 1603 shall apply
as between the United States and Mexico for no longer than:
(a) the period that such paragraphs or similar provisions
may apply as between the United States and any other
Party other than Canada or any non-Party; or
(b) 10 years after the date of entry into force of this
Agreement as between such Parties,
whichever period is shorter.
Annex 1604.2
Provision of Information
The obligations under Article 1604(2) shall take effect
with respect to Mexico one year after the date of entry into
force of this Agreement.
Annex 1608
Country - Specific Definitions
For purposes of this Chapter:
citizen means, with respect to Mexico, a national or a citizen
according to the existing provisions of Articles 30 and 34,
respectively, of the Mexican Constitution; and
existing means, as between:
(a) Canada and Mexico, and Mexico and the United States,
in effect on the date of entry into force of this
Agreement; and
(b) Canada and the United States, in effect on January 1,
1989.
Title:Intellectual Property
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:85574
PART SIX
INTELLECTUAL PROPERTY
Chapter Seventeen
Intellectual Property
Article 1701: Nature and Scope of Obligations
1. Each Party shall provide in its territory to the nationals
of another Party adequate and effective protection and
enforcement of intellectual property rights, while ensuring
that measures to enforce intellectual property rights do not
themselves become barriers to legitimate trade.
2. To provide adequate and effective protection and
enforcement of intellectual property rights, each Party shall,
at a minimum, give effect to this Chapter and to the
substantive provisions of:
(a) the Geneva Convention for the Protection of Producers
of Phonograms Against Unauthorized Duplication of
their Phonograms, 1971 (Geneva Convention);
(b) the Berne Convention for the Protection of Literary
and Artistic Works, 1971 (Berne Convention);
(c) the Paris Convention for the Protection of Industrial
Property, 1967 (Paris Convention); and
(d) the International Convention for the Protection of
New Varieties of Plants, 1978 (UPOV Convention), or
the International Convention for the Protection of
New Varieties of Plants, 1991 (UPOV Convention).
If a Party has not acceded to the specified text of any such
Conventions on or before the date of entry into force of this
Agreement, it shall make every effort to accede.
3. Annex 1701.3 applies to the Parties specified in that
Annex.
Article 1702: More Extensive Protection
A Party may implement in its domestic law more extensive
protection of intellectual property rights than is required
under this Agreement, provided that such protection is not
inconsistent with this Agreement.
Article 1703: National Treatment
1. Each Party shall accord to nationals of another Party
treatment no less favorable than that it accords to its own
nationals with regard to the protection and enforcement of all
intellectual property rights. In respect of sound recordings,
each Party shall provide such treatment to producers and
performers of another Party, except that a Party may limit
rights of performers of another Party in respect of secondary
uses of sound recordings to those rights its nationals are
accorded in the territory of such other Party.
2. No Party may, as a condition of according national
treatment under this Article, require right holders to comply
with any formalities or conditions in order to acquire rights
in respect of copyright and related rights.
3. A Party may derogate from paragraph 1 in relation to its
judicial and administrative procedures for the protection or
enforcement of intellectual property rights, including any
procedure requiring a national of another Party to designate
for service of process an address in the Party's territory or
to appoint an agent in the Party's territory, if the derogation
is consistent with the relevant Convention listed in Article
1701(2), provided that such derogation:
(a) is necessary to secure compliance with measures that
are not inconsistent with this Chapter; and
(b) is not applied in a manner that would constitute a
disguised restriction on trade.
4. No Party shall have any obligation under this Article with
respect to procedures provided in multilateral agreements
concluded under the auspices of the World Intellectual Property
Organization relating to the acquisition or maintenance of
intellectual property rights.
Article 1704: Control of Abusive or Anticompetitive
Practices or Conditions
Nothing in this Chapter shall prevent a Party from
specifying in its domestic law licensing practices or
conditions that may in particular cases constitute an abuse of
intellectual property rights having an adverse effect on
competition in the relevant market. A Party may adopt or
maintain, consistent with the other provisions of this
Agreement, appropriate measures to prevent or control such
practices or conditions.
Article 1705: Copyright
1. Each Party shall protect the works covered by Article 2 of
the Berne Convention, including any other works that embody
original expression within the meaning of that Convention. In
particular:
(a) all types of computer programs are literary works
within the meaning of the Berne Convention and each
Party shall protect them as such; and
(b) compilations of data or other material, whether in
machine readable or other form, which by reason of
the selection or arrangement of their contents
constitute intellectual creations, shall be protected
as such.
The protection a Party provides under subparagraph (b) shall
not extend to the data or material itself, or prejudice any
copyright subsisting in that data or material.
2. Each Party shall provide to authors and their successors
in interest those rights enumerated in the Berne Convention in
respect of works covered by paragraph 1, including the right to
authorize or prohibit:
(a) the importation into the Party's territory of copies
of the work made without the right holder's
authorization;
(b) the first public distribution of the original and
each copy of the work by sale, rental or otherwise;
(c) the communication of a work to the public; and
(d) the commercial rental of the original or a copy of a
computer program.
Subparagraph (d) shall not apply where the copy of the computer
program is not itself an essential object of the rental. Each
Party shall provide that putting the original or a copy of a
computer program on the market with the right holder's consent
shall not exhaust the rental right.
3. Each Party shall provide that for copyright and related
rights:
(a) any person acquiring or holding economic rights may
freely and separately transfer such rights by
contract for purposes of their exploitation and
enjoyment by the transferee; and
(b) any person acquiring or holding such economic rights
by virtue of a contract, including contracts of
employment underlying the creation of works and sound
recordings, shall be able to exercise those rights in
its own name and enjoy fully the benefits derived
from those rights.
4. Each Party shall provide that, where the term of
protection of a work, other than a photographic work or a work
of applied art, is to be calculated on a basis other than the
life of a natural person, the term shall be not less than 50
years from the end of the calendar year of the first authorized
publication of the work or, failing such authorized publication
within 50 years from the making of the work, 50 years from the
end of the calendar year of making.
5. Each Party shall confine limitations or exceptions to the
rights provided for in this Article to certain special cases
that do not conflict with a normal exploitation of the work and
do not unreasonably prejudice the legitimate interests of the
right holder.
6. No Party may grant translation and reproduction licenses
permitted under the Appendix to the Berne Convention where
legitimate needs in that Party's territory for copies or
translations of the work could be met by the right holder's
voluntary actions but for obstacles created by the Party's
measures.
7. Annex 1705.7 applies to the Parties specified in that
Annex.
Article 1706: Sound Recordings
1. Each Party shall provide to the producer of a sound
recording the right to authorize or prohibit:
(a) the direct or indirect reproduction of the sound
recording;
(b) the importation into the Party's territory of copies
of the sound recording made without the producer's
authorization;
(c) the first public distribution of the original and
each copy of the sound recording by sale, rental or
otherwise; and
(d) the commercial rental of the original or a copy of
the sound recording, except where expressly otherwise
provided in a contract between the producer of the
sound recording and the authors of the works fixed
therein.
Each Party shall provide that putting the original or a copy of
a sound recording on the market with the right holder's consent
shall not exhaust the rental right.
2. Each Party shall provide a term of protection for sound
recordings of at least 50 years from the end of the calendar
year in which the fixation was made.
3. Each Party shall confine limitations or exceptions to the
rights provided for in this Article to certain special cases
that do not conflict with a normal exploitation of the sound
recording and do not unreasonably prejudice the legitimate
interests of the right holder.
Article 1707: Protection of Encrypted Program-Carrying
Satellite Signals
Within one year from the date of entry into force of this
Agreement, each Party shall make it:
(a) a criminal offense to manufacture, import, sell,
lease or otherwise make available a device or system
that is primarily of assistance in decoding an
encrypted program-carrying satellite signal without
the authorization of the lawful distributor of such
signal; and
(b) a civil offense to receive, in connection with
commercial activities, or further distribute, an
encrypted program-carrying satellite signal that has
been decoded without the authorization of the lawful
distributor of the signal or to engage in any
activity prohibited under subparagraph (a).
Each Party shall provide that any civil offense established
under subparagraph (b) shall be actionable by any person that
holds an interest in the content of such signal.
Article 1708: Trademarks
1. For purposes of this Agreement, a trademark consists of
any sign, or any combination of signs, capable of
distinguishing the goods or services of one person from those
of another, including personal names, designs, letters,
numerals, colors, figurative elements, or the shape of goods or
of their packaging. Trademarks shall include service marks and
collective marks, and may include certification marks. A Party
may require, as a condition for registration, that a sign be
visually perceptible.
2. Each Party shall provide to the owner of a registered
trademark the right to prevent all persons not having the
owner's consent from using in commerce identical or similar
signs for goods or services that are identical or similar to
those goods or services in respect of which the owner's
trademark is registered, where such use would result in a
likelihood of confusion. In the case of the use of an
identical sign for identical goods or services, a likelihood of
confusion shall be presumed. The rights described above shall
not prejudice any prior rights, nor shall they affect the
possibility of a Party making rights available on the basis of
use.
3. A Party may make registrability depend on use. However,
actual use of a trademark shall not be a condition for filing
an application for registration. No Party may refuse an
application solely on the ground that intended use has not
taken place before the expiry of a period of three years from
the date of application for registration.
4. Each Party shall provide a system for the registration of
trademarks, which shall include:
(a) examination of applications;
(b) notice to be given to an applicant of the reasons for
the refusal to register a trademark;
(c) a reasonable opportunity for the applicant to respond
to the notice;
(d) publication of each trademark either before or
promptly after it is registered; and
(e) a reasonable opportunity for interested persons to
petition to cancel the registration of a trademark.
A Party may provide for a reasonable opportunity for interested
persons to oppose the registration of a trademark.
5. The nature of the goods or services to which a trademark
is to be applied shall in no case form an obstacle to the
registration of the trademark.
6. Article 6bis of the Paris Convention shall apply, with
such modifications as may be necessary, to services. In
determining whether a trademark is well-known, account shall be
taken of the knowledge of the trademark in the relevant sector
of the public, including knowledge in the Party's territory
obtained as a result of the promotion of the trademark. No
Party may require that the reputation of the trademark extend
beyond the sector of the public that normally deals with the
relevant goods or services.
7. Each Party shall provide that the initial registration of
a trademark be for a term of at least 10 years and that the
registration be indefinitely renewable for terms of not less
than 10 years when conditions for renewal have been met.
8. Each Party shall require the use of a trademark to
maintain a registration. The registration may be canceled for
the reason of non-use only after an uninterrupted period of at
least two years of non-use, unless valid reasons based on the
existence of obstacles to such use are shown by the trademark
owner. Each Party shall recognize, as valid reasons for non-
use, circumstances arising independently of the will of the
trademark owner that constitute an obstacle to the use of the
trademark, such as import restrictions on, or other government
requirements for, goods or services identified by the
trademark.
9. Each Party shall recognize use of a trademark by a person
other than the trademark owner, where such use is subject to
the owner's control, as use of the trademark for purposes of
maintaining the registration.
10. No Party may encumber the use of a trademark in commerce
by special requirements, such as a use that reduces the
trademark's function as an indication of source or a use with
another trademark.
11. A Party may determine conditions on the licensing and
assignment of trademarks, it being understood that the
compulsory licensing of trademarks shall not be permitted and
that the owner of a registered trademark shall have the right
to assign its trademark with or without the transfer of the
business to which the trademark belongs.
12. A Party may provide limited exceptions to the rights
conferred by a trademark, such as fair use of descriptive
terms, provided that such exceptions take into account the
legitimate interests of the trademark owner and of other
persons.
13. Each Party shall prohibit the registration as a trademark
of words, at least in English, French or Spanish, that
generically designate goods or services or types of goods or
services to which the trademark applies.
14. Each Party shall refuse to register trademarks that
consist of or comprise immoral, deceptive or scandalous matter,
or matter that may disparage or falsely suggest a connection
with persons, living or dead, institutions, beliefs or any
Party's national symbols, or bring them into contempt or
disrepute.
Article 1709: Patents
1. Subject to paragraphs 2 and 3, each Party shall make
patents available for any inventions, whether products or
processes, in all fields of technology, provided that such
inventions are new, result from an inventive step and are
capable of industrial application. For purposes of this
Article, a Party may deem the terms "inventive step" and
"capable of industrial application" to be synonymous with the
terms "non-obvious" and "useful", respectively.
2. A Party may exclude from patentability inventions if
preventing in its territory the commercial exploitation of the
inventions is necessary to protect ordre public or morality,
including to protect human, animal or plant life or health or
to avoid serious prejudice to nature or the environment,
provided that the exclusion is not based solely on the ground
that the Party prohibits commercial exploitation in its
territory of the subject matter of the patent.
3. A Party may also exclude from patentability:
(a) diagnostic, therapeutic and surgical methods for the
treatment of humans or animals;
(b) plants and animals other than microorganisms; and
(c) essentially biological processes for the production
of plants or animals, other than non-biological and
microbiological processes for such production.
Notwithstanding subparagraph (b), each Party shall provide for
the protection of plant varieties through patents, an effective
scheme of sui generis protection, or both.
4. If a Party has not made available product patent
protection for pharmaceutical or agricultural chemicals
commensurate with paragraph 1:
(a) as of January 1, 1992, for subject matter that
relates to naturally occurring substances prepared or
produced by, or significantly derived from,
microbiological processes and intended for food or
medicine, and
(b) as of July 1, 1991, for any other subject matter,
that Party shall provide to the inventor of any such product or
its assignee the means to obtain product patent protection for
such product for the unexpired term of the patent for such
product granted in another Party, as long as the product has
not been marketed in the Party providing protection under this
paragraph and the person seeking such protection makes a timely
request.
5. Each Party shall provide that:
(a) where the subject matter of a patent is a product,
the patent shall confer on the patent owner the right
to prevent other persons from making, using or
selling the subject matter of the patent, without the
patent owner's consent; and
(b) where the subject matter of a patent is a process,
the patent shall confer on the patent owner the right
to prevent other persons from using that process and
from using, selling, or importing at least the
product obtained directly by that process, without
the patent owner's consent.
6. A Party may provide limited exceptions to the exclusive
rights conferred by a patent, provided that such exceptions do
not unreasonably conflict with a normal exploitation of the
patent and do not unreasonably prejudice the legitimate
interests of the patent owner, taking into account the
legitimate interests of other persons.
7. Subject to paragraphs 2 and 3, patents shall be available
and patent rights enjoyable without discrimination as to the
field of technology, the territory of the Party where the
invention was made and whether products are imported or locally
produced.
8. A Party may revoke a patent only when:
(a) grounds exist that would have justified a refusal to
grant the patent; or
(b) the grant of a compulsory license has not remedied
the lack of exploitation of the patent.
9. Each Party shall permit patent owners to assign and
transfer by succession their patents, and to conclude licensing
contracts.
10. Where the law of a Party allows for use of the subject
matter of a patent, other than that use allowed under paragraph
6, without the authorization of the right holder, including use
by the government or other persons authorized by the
government, the Party shall respect the following provisions:
(a) authorization of such use shall be considered on its
individual merits;
(b) such use may only be permitted if, prior to such use,
the proposed user has made efforts to obtain
authorization from the right holder on reasonable
commercial terms and conditions and such efforts have
not been successful within a reasonable period of
time. The requirement to make such efforts may be
waived by a Party in the case of a national emergency
or other circumstances of extreme urgency or in cases
of public non-commercial use. In situations of
national emergency or other circumstances of extreme
urgency, the right holder shall, nevertheless, be
notified as soon as reasonably practicable. In the
case of public non-commercial use, where the
government or contractor, without making a patent
search, knows or has demonstrable grounds to know
that a valid patent is or will be used by or for the
government, the right holder shall be informed
promptly;
(c) the scope and duration of such use shall be limited
to the purpose for which it was authorized;
(d) such use shall be non-exclusive;
(e) such use shall be non-assignable, except with that
part of the enterprise or goodwill that enjoys such
use;
(f) any such use shall be authorized predominantly for
the supply of the Party's domestic market;
(g) authorization for such use shall be liable, subject
to adequate protection of the legitimate interests of
the persons so authorized, to be terminated if and
when the circumstances that led to it cease to exist
and are unlikely to recur. The competent authority
shall have the authority to review, on motivated
request, the continued existence of these
circumstances;
(h) the right holder shall be paid adequate remuneration
in the circumstances of each case, taking into
account the economic value of the authorization;
(i) the legal validity of any decision relating to the
authorization shall be subject to judicial or other
independent review by a distinct higher authority;
(j) any decision relating to the remuneration provided in
respect of such use shall be subject to judicial or
other independent review by a distinct higher
authority;
(k) the Party shall not be obliged to apply the
conditions set out in subparagraphs (b) and (f) where
such use is permitted to remedy a practice determined
after judicial or administrative process to be
anticompetitive. The need to correct anticompetitive
practices may be taken into account in determining
the amount of remuneration in such cases. Competent
authorities shall have the authority to refuse
termination of authorization if and when the
conditions that led to such authorization are likely
to recur;
(l) the Party shall not authorize the use of the subject
matter of a patent to permit the exploitation of
another patent except as a remedy for an adjudicated
violation of domestic laws regarding anticompetitive
practices.
11. Where the subject matter of a patent is a process for
obtaining a product, each Party shall, in any infringement
proceeding, place on the defendant the burden of establishing
that the allegedly infringing product was made by a process
other than the patented process in one of the following
situations:
(a) the product obtained by the patented process is new;
or
(b) a substantial likelihood exists that the allegedly
infringing product was made by the process and the
patent owner has been unable through reasonable
efforts to determine the process actually used.
In the gathering and evaluation of evidence, the legitimate
interests of the defendant in protecting its trade secrets
shall be taken into account.
12. Each Party shall provide a term of protection for patents
of at least 20 years from the date of filing or 17 years from
the date of grant. A Party may extend the term of patent
protection, in appropriate cases, to compensate for delays
caused by regulatory approval processes.
Article 1710: Layout Designs of Semiconductor Integrated
Circuits
1. Each Party shall protect layout designs (topographies) of
integrated circuits ("layout designs") in accordance with
Articles 2 through 7, 12 and 16(3), other than Article 6(3), of
the Treaty on Intellectual Property in Respect of Integrated
Circuits as opened for signature on May 26, 1989.
2. Subject to paragraph 3, each Party shall make it unlawful
for any person without the right holder's authorization to
import, sell or otherwise distribute for commercial purposes
any of the following:
(a) a protected layout design;
(b) an integrated circuit in which a protected layout
design is incorporated; or
(c) an article incorporating such an integrated circuit,
only insofar as it continues to contain an unlawfully
reproduced layout design.
3. No Party may make unlawful any of the acts referred to in
paragraph 2 performed in respect of an integrated circuit that
incorporates an unlawfully reproduced layout design, or any
article that incorporates such an integrated circuit, where the
person performing those acts or ordering those acts to be done
did not know and had no reasonable ground to know, when it
acquired the integrated circuit or article incorporating such
an integrated circuit, that it incorporated an unlawfully
reproduced layout design.
4. Each Party shall provide that, after the person referred
to in paragraph 3 has received sufficient notice that the
layout design was unlawfully reproduced, such person may
perform any of the acts with respect to the stock on hand or
ordered before such notice, but shall be liable to pay the
right holder for doing so an amount equivalent to a reasonable
royalty such as would be payable under a freely negotiated
license in respect of such a layout design.
5. No Party may permit the compulsory licensing of layout
designs of integrated circuits.
6. Any Party that requires registration as a condition for
protection of a layout design shall provide that the term of
protection shall not end before the expiration of a period of
10 years counted from the date of:
(a) filing of the application for registration; or
(b) the first commercial exploitation of the layout
design, wherever in the world it occurs.
7. Where a Party does not require registration as a condition
for protection of a layout design, the Party shall provide a
term of protection of not less than 10 years from the date of
the first commercial exploitation of the layout design,
wherever in the world it occurs.
8. Notwithstanding paragraphs 6 and 7, a Party may provide
that the protection shall lapse 15 years after the creation of
the layout design.
9. Annex 1710.9 applies to the Parties specified in that
Annex.
Article 1711: Trade Secrets
1. Each Party shall provide the legal means for any person to
prevent trade secrets from being disclosed to, acquired by, or
used by others without the consent of the person lawfully in
control of the information in a manner contrary to honest
commercial practices, in so far as:
(a) the information is secret in the sense that it is
not, as a body or in the precise configuration and
assembly of its components, generally known among or
readily accessible to persons that normally deal with
the kind of information in question;
(b) the information has actual or potential commercial
value because it is secret; and
(c) the person lawfully in control of the information has
taken reasonable steps under the circumstances to
keep it secret.
2. A Party may require that to qualify for protection a trade
secret must be evidenced in documents, electronic or magnetic
means, optical discs, microfilms, films or other similar
instruments.
3. No Party may limit the duration of protection for trade
secrets, so long as the conditions in paragraph 1 exist.
4. No Party may discourage or impede the voluntary licensing
of trade secrets by imposing excessive or discriminatory
conditions on such licenses or conditions that dilute the value
of the trade secrets.
5. If a Party requires, as a condition for approving the
marketing of pharmaceutical or agricultural chemical products
that utilize new chemical entities, the submission of
undisclosed test or other data necessary to determine whether
the use of such products is safe and effective, the Party shall
protect against disclosure of the data of persons making such
submissions, where the origination of such data involves
considerable effort, except where the disclosure is necessary
to protect the public or unless steps are taken to ensure that
the data is protected against unfair commercial use.
6. Each Party shall provide that for data subject to
paragraph 5 that are submitted to the Party after the date of
entry into force of this Agreement, no person other than the
person that submitted them may, without the latter's
permission, rely on such data in support of an application for
product approval during a reasonable period of time after their
submission. For this purpose, a reasonable period shall
normally mean not less than five years from the date on which
the Party granted approval to the person that produced the data
for approval to market its product, taking account of the
nature of the data and the person's efforts and expenditures in
producing them. Subject to this provision, there shall be no
limitation on any Party to implement abbreviated approval
procedures for such products on the basis of bioequivalence and
bioavailability studies.
7. Where a Party relies on a marketing approval granted by
another Party, the reasonable period of exclusive use of the
data submitted in connection with obtaining the approval relied
on shall begin with the date of the first marketing approval
relied on.
Article 1712: Geographical Indications
1. Each Party shall provide, in respect of geographical
indications, the legal means for interested persons to prevent:
(a) the use of any means in the designation or
presentation of a good that indicates or suggests
that the good in question originates in a territory,
region or locality other than the true place of
origin, in a manner that misleads the public as to
the geographical origin of the good;
(b) any use that constitutes an act of unfair competition
within the meaning of Article 10bis of the Paris
Convention.
2. Each Party shall, on its own initiative if its domestic
law so permits or at the request of an interested person,
refuse to register, or invalidate the registration of, a
trademark containing or consisting of a geographical indication
with respect to goods that do not originate in the indicated
territory, region or locality, if use of the indication in the
trademark for such goods is of such a nature as to mislead the
public as to the geographical origin of the good.
3. Each Party shall also apply paragraphs 1 and 2 to a
geographical indication that, although correctly indicating the
territory, region or locality in which the goods originate,
falsely represents to the public that the goods originate in
another territory, region or locality.
4. Nothing in this Article shall be construed to require a
Party to prevent continued and similar use of a particular
geographical indication of another Party in connection with
goods or services by any of its nationals or domiciliaries who
have used that geographical indication in a continuous manner
with regard to the same or related goods or services in that
Party's territory, either:
(a) for at least 10 years, or
(b) in good faith,
before the date of signature of this Agreement.
5. Where a trademark has been applied for or registered in
good faith, or where rights to a trademark have been acquired
through use in good faith, either:
(a) before the date of application of these provisions in
that Party, or
(b) before the geographical indication is protected in
its Party of origin,
no Party may adopt any measure to implement this Article that
prejudices eligibility for, or the validity of, the
registration of a trademark, or the right to use a trademark,
on the basis that such a trademark is identical with, or
similar to, a geographical indication.
6. No Party shall be required to apply this Article to a
geographical indication if it is identical to the customary
term in common language in that Party's territory for the goods
or services to which the indication applies.
7. A Party may provide that any request made under this
Article in connection with the use or registration of a
trademark must be presented within five years after the adverse
use of the protected indication has become generally known in
that Party or after the date of registration of the trademark
in that Party, provided that the trademark has been published
by that date, if such date is earlier than the date on which
the adverse use became generally known in that Party, provided
that the geographical indication is not used or registered in
bad faith.
8. No Party shall adopt any measure implementing this Article
that would prejudice any person's right to use, in the course
of trade, its name or the name of its predecessor in business,
except where such name forms all or part of a valid trademark
in existence before the geographical indication became
protected and with which there is a likelihood of confusion, or
such name is used in such a manner as to mislead the public.
9. Nothing in this Chapter shall be construed to require a
Party to protect a geographical indication that is not
protected, or has fallen into disuse, in the Party of origin.
Article 1713: Industrial Designs
1. Each Party shall provide for the protection of
independently created industrial designs that are new or
original. A Party may provide that:
(a) designs are not new or original if they do not
significantly differ from known designs or
combinations of known design features; and
(b) such protection shall not extend to designs dictated
essentially by technical or functional
considerations.
2. Each Party shall ensure that the requirements for securing
protection for textile designs, in particular in regard to any
cost, examination or publication, do not unreasonably impair a
person's opportunity to seek and obtain such protection. A
Party may comply with this obligation through industrial design
law or copyright law.
3. Each Party shall provide the owner of a protected
industrial design the right to prevent other persons not having
the owner's consent from making or selling articles bearing or
embodying a design that is a copy, or substantially a copy, of
the protected design, when such acts are undertaken for
commercial purposes.
4. A Party may provide limited exceptions to the protection
of industrial designs, provided that such exceptions do not
unreasonably conflict with the normal exploitation of protected
industrial designs and do not unreasonably prejudice the
legitimate interests of the owner of the protected design,
taking into account the legitimate interests of other persons.
5. Each Party shall provide a term of protection for
industrial designs of at least 10 years.
Article 1714: Enforcement of Intellectual Property Rights:
General Provisions
1. Each Party shall ensure that enforcement procedures, as
specified in this Article and Articles 1715 through 1718, are
available under its domestic law so as to permit effective
action to be taken against any act of infringement of
intellectual property rights covered by this Chapter, including
expeditious remedies to prevent infringements and remedies to
deter further infringements. Such enforcement procedures shall
be applied so as to avoid the creation of barriers to
legitimate trade and to provide for safeguards against abuse of
the procedures.
2. Each Party shall ensure that its procedures for the
enforcement of intellectual property rights are fair and
equitable, are not unnecessarily complicated or costly, and do
not entail unreasonable time-limits or unwarranted delays.
3. Each Party shall provide that decisions on the merits of a
case in judicial and administrative enforcement proceedings
shall:
(a) preferably be in writing and preferably state the
reasons on which the decisions are based;
(b) be made available at least to the parties in a
proceeding without undue delay; and
(c) be based only on evidence in respect of which such
parties were offered the opportunity to be heard.
4. Each Party shall ensure that parties in a proceeding have
an opportunity to have final administrative decisions reviewed
by a judicial authority of that Party and, subject to
jurisdictional provisions in its domestic laws concerning the
importance of a case, to have reviewed at least the legal
aspects of initial judicial decisions on the merits of a case.
Notwithstanding the above, no Party shall be required to
provide for judicial review of acquittals in criminal cases.
5. Nothing in this Article or Articles 1715 through 1718
shall be construed to require a Party to establish a judicial
system for the enforcement of intellectual property rights
distinct from that Party's system for the enforcement of laws
in general.
6. For the purposes of Articles 1715 through 1718, the term
"right holder" includes federations and associations having
legal standing to assert such rights.
Article 1715: Specific Procedural and Remedial Aspects of
Civil and Administrative Procedures
1. Each Party shall make available to right holders civil
judicial procedures for the enforcement of any intellectual
property right provided in this Chapter. Each Party shall
provide that:
(a) defendants have the right to written notice that is
timely and contains sufficient detail, including the
basis of the claims;
(b) parties in a proceeding are allowed to be represented
by independent legal counsel;
(c) the procedures do not include imposition of overly
burdensome requirements concerning mandatory personal
appearances;
(d) all parties in a proceeding are duly entitled to
substantiate their claims and to present relevant
evidence; and
(e) the procedures include a means to identify and
protect confidential information.
2. Each Party shall provide that its judicial authorities
shall have the authority:
(a) where a party in a proceeding has presented
reasonably available evidence sufficient to support
its claims and has specified evidence relevant to the
substantiation of its claims that is within the
control of the opposing party, to order the opposing
party to produce such evidence, subject in
appropriate cases to conditions that ensure the
protection of confidential information;
(b) where a party in a proceeding voluntarily and without
good reason refuses access to, or otherwise does not
provide relevant evidence under that party's control
within a reasonable period, or significantly impedes
a proceeding relating to an enforcement action, to
make preliminary and final determinations,
affirmative or negative, on the basis of the evidence
presented, including the complaint or the allegation
presented by the party adversely affected by the
denial of access to evidence, subject to providing
the parties an opportunity to be heard on the
allegations or evidence;
(c) to order a party in a proceeding to desist from an
infringement, including to prevent the entry into the
channels of commerce in their jurisdiction of
imported goods that involve the infringement of an
intellectual property right, which order shall be
enforceable at least immediately after customs
clearance of such goods;
(d) to order the infringer of an intellectual property
right to pay the right holder damages adequate to
compensate for the injury the right holder has
suffered because of the infringement where the
infringer knew or had reasonable grounds to know that
it was engaged in an infringing activity;
(e) to order an infringer of an intellectual property
right to pay the right holder's expenses, which may
include appropriate attorney's fees; and
(f) to order a party in a proceeding at whose request
measures were taken and who has abused enforcement
procedures to provide adequate compensation to any
party wrongfully enjoined or restrained in the
proceeding for the injury suffered because of such
abuse and to pay that party's expenses, which may
include appropriate attorney's fees.
3. With respect to the authority referred to in subparagraph
2(c), no Party shall be obliged to provide such authority in
respect of protected subject matter that is acquired or ordered
by a person before that person knew or had reasonable grounds
to know that dealing in that subject matter would entail the
infringement of an intellectual property right.
4. With respect to the authority referred to in subparagraph
2(d), a Party may, at least with respect to copyrighted works
and sound recordings, authorize the judicial authorities to
order recovery of profits or payment of pre-established
damages, or both, even where the infringer did not know or had
no reasonable grounds to know that it was engaged in an
infringing activity.
5. Each Party shall provide that, in order to create an
effective deterrent to infringement, its judicial authorities
shall have the authority to order that:
(a) goods that they have found to be infringing be,
without compensation of any sort, disposed of outside
the channels of commerce in such a manner as to avoid
any injury caused to the right holder or, unless this
would be contrary to existing constitutional
requirements, destroyed; and
(b) materials and implements the predominant use of which
has been in the creation of the infringing goods be,
without compensation of any sort, disposed of outside
the channels of commerce in such a manner as to
minimize the risks of further infringements.
In considering whether to issue such an order, judicial
authorities shall take into account the need for
proportionality between the seriousness of the infringement and
the remedies ordered as well as the interests of other persons.
In regard to counterfeit goods, the simple removal of the
trademark unlawfully affixed shall not be sufficient, other
than in exceptional cases, to permit release of the goods into
the channels of commerce.
6. In respect of the administration of any law pertaining to
the protection or enforcement of intellectual property rights,
each Party shall only exempt both public authorities and
officials from liability to appropriate remedial measures where
actions are taken or intended in good faith in the course of
the administration of such laws.
7. Notwithstanding the other provisions of Articles 1714
through 1718, where a Party is sued with respect to an
infringement of an intellectual property right as a result of
its use of that right or use on its behalf, that Party may
limit the remedies available against it to the payment to the
right holder of adequate remuneration in the circumstances of
each case, taking into account the economic value of the use.
8. Each Party shall provide that, where a civil remedy can be
ordered as a result of administrative procedures on the merits
of a case, such procedures shall conform to principles
equivalent in substance to those set out in this Article.
Article 1716: Provisional Measures
1. Each Party shall provide that its judicial authorities
shall have the authority to order prompt and effective
provisional measures:
(a) to prevent an infringement of any intellectual
property right, and in particular to prevent the
entry into the channels of commerce in their
jurisdiction of allegedly infringing goods, including
measures to prevent the entry of imported goods at
least immediately after customs clearance; and
(b) to preserve relevant evidence in regard to the
alleged infringement.
2. Each Party shall provide that its judicial authorities
shall have the authority to require any applicant for
provisional measures to provide to the judicial authorities any
evidence reasonably available to that applicant that the
judicial authorities consider necessary to enable them to
determine with a sufficient degree of certainty whether:
(a) the applicant is the right holder;
(b) the applicant's right is being infringed or such
infringement is imminent; and
(c) any delay in the issuance of such measures is likely
to cause irreparable harm to the right holder, or
there is a demonstrable risk of evidence being
destroyed.
Each Party shall provide that its judicial authorities shall
have the authority to require the applicant to provide a
security or equivalent assurance sufficient to protect the
interests of the defendant and to prevent abuse.
3. Each Party shall provide that its judicial authorities
shall have the authority to require an applicant for
provisional measures to provide other information necessary for
the identification of the relevant goods by the authority that
will execute the provisional measures.
4. Each Party shall provide that its judicial authorities
shall have the authority to order provisional measures on an ex
parte basis, in particular where any delay is likely to cause
irreparable harm to the right holder, or where there is a
demonstrable risk of evidence being destroyed.
5. Each Party shall provide that where provisional measures
are adopted by that Party's judicial authorities on an ex parte
basis:
(a) a person affected shall be given notice of those
measures without delay but in any event no later than
immediately after the execution of the measures;
(b) a defendant shall, on request, have those measures
reviewed by that Party's judicial authorities for the
purpose of deciding, within a reasonable period after
notice of those measures is given, whether the
measures shall be modified, revoked or confirmed, and
shall be given an opportunity to be heard in the
review proceedings.
6. Without prejudice to paragraph 5, each Party shall provide
that, on the request of the defendant, the Party's judicial
authorities shall revoke or otherwise cease to apply the
provisional measures taken on the basis of paragraphs 1 and 4
if proceedings leading to a decision on the merits are not
initiated:
(a) within a reasonable period as determined by the
judicial authority ordering the measures where the
Party's domestic law so permits; or
(b) in the absence of such a determination, within a
period of no more than 20 working days or 31 calendar
days, whichever is longer.
7. Each Party shall provide that, where the provisional
measures are revoked or where they lapse due to any act or
omission by the applicant, or where the judicial authorities
subsequently find that there has been no infringement or threat
of infringement of an intellectual property right, the judicial
authorities shall have the authority to order the applicant, on
request of the defendant, to provide the defendant appropriate
compensation for any injury caused by these measures.
8. Each Party shall provide that, where a provisional measure
can be ordered as a result of administrative procedures, such
procedures shall conform to principles equivalent in substance
to those set out in this Article.
Article 1717: Criminal Procedures and Penalties
1. Each Party shall provide criminal procedures and penalties
to be applied at least in cases of willful trademark
counterfeiting or copyright piracy on a commercial scale. Each
Party shall provide that penalties available include
imprisonment or monetary fines, or both, sufficient to provide
a deterrent, consistent with the level of penalties applied for
crimes of a corresponding gravity.
2. Each Party shall provide that, in appropriate cases, its
judicial authorities may order the seizure, forfeiture and
destruction of infringing goods and of any materials and
implements the predominant use of which has been in the
commission of the offense.
3. A Party may provide criminal procedures and penalties to
be applied in cases of infringement of intellectual property
rights, other than those in paragraph 1, where they are
committed wilfully and on a commercial scale.
Article 1718: Enforcement of Intellectual Property Rights at
the Border
1. Each Party shall, in conformity with this Article, adopt
procedures to enable a right holder, who has valid grounds for
suspecting that the importation of counterfeit trademark goods
or pirated copyright goods may take place, to lodge an
application in writing with its competent authorities, whether
administrative or judicial, for the suspension by the customs
administration of the release of such goods into free
circulation. No Party shall be obligated to apply such
procedures to goods in transit. A Party may permit such an
application to be made in respect of goods that involve other
infringements of intellectual property rights, provided that
the requirements of this Article are met. A Party may also
provide for corresponding procedures concerning the suspension
by the customs administration of the release of infringing
goods destined for exportation from its territory.
2. Each Party shall require any applicant who initiates
procedures under paragraph 1 to provide adequate evidence:
(a) to satisfy that Party's competent authorities that,
under the domestic laws of the country of
importation, there is prima facie an infringement of
its intellectual property right; and
(b) to supply a sufficiently detailed description of the
goods to make them readily recognizable by the
customs administration.
The competent authorities shall inform the applicant within a
reasonable period whether they have accepted the application
and, if so, the period for which the customs administration
will take action.
3. Each Party shall provide that its competent authorities
shall have the authority to require an applicant under
paragraph 1 to provide a security or equivalent assurance
sufficient to protect the defendant and the competent
authorities and to prevent abuse. Such security or equivalent
assurance shall not unreasonably deter recourse to these
procedures.
4. Each Party shall provide that, where pursuant to an
application under procedures adopted pursuant to this Article,
its customs administration suspends the release of goods
involving industrial designs, patents, integrated circuits or
trade secrets into free circulation on the basis of a decision
other than by a judicial or other independent authority, and
the period provided for in paragraphs 6 through 8 has expired
without the granting of provisional relief by the duly
empowered authority, and provided that all other conditions for
importation have been complied with, the owner, importer or
consignee of such goods shall be entitled to their release on
the posting of a security in an amount sufficient to protect
the right holder against any infringement. Payment of such
security shall not prejudice any other remedy available to the
right holder, it being understood that the security shall be
released if the right holder fails to pursue its right of
action within a reasonable period of time.
5. Each Party shall provide that its customs administration
shall promptly notify the importer and the applicant when the
customs administration suspends the release of goods pursuant
to paragraph 1.
6. Each Party shall provide that its customs administration
shall release goods from suspension if within a period not
exceeding 10 working days after the applicant under paragraph 1
has been served notice of the suspension the customs
administration has not been informed that:
(a) a party other than the defendant has initiated
proceedings leading to a decision on the merits of
the case, or
(b) a competent authority has taken provisional measures
prolonging the suspension,
provided that all other conditions for importation or
exportation have been met. Each Party shall provide that, in
appropriate cases, the customs administration may extend the
suspension by another 10 working days.
7. Each Party shall provide that if proceedings leading to a
decision on the merits of the case have been initiated, a
review, including a right to be heard, shall take place on
request of the defendant with a view to deciding, within a
reasonable period, whether these measures shall be modified,
revoked or confirmed.
8. Notwithstanding paragraphs 6 and 7, where the suspension
of the release of goods is carried out or continued in
accordance with a provisional judicial measure, Article 1716(6)
shall apply.
9. Each Party shall provide that its competent authorities
shall have the authority to order the applicant under paragraph
1 to pay the importer, the consignee and the owner of the goods
appropriate compensation for any injury caused to them through
the wrongful detention of goods or through the detention of
goods released pursuant to paragraph 6.
10. Without prejudice to the protection of confidential
information, each Party shall provide that its competent
authorities shall have the authority to give the right holder
sufficient opportunity to have any goods detained by the
customs administration inspected in order to substantiate the
right holder's claims. Each Party shall also provide that its
competent authorities have the authority to give the importer
an equivalent opportunity to have any such goods inspected.
Where the competent authorities have made a positive
determination on the merits of a case, a Party may provide the
competent authorities the authority to inform the right holder
of the names and addresses of the consignor, the importer and
the consignee, and of the quantity of the goods in question.
11. Where a Party requires its competent authorities to act on
their own initiative and to suspend the release of goods in
respect of which they have acquired prima facie evidence that
an intellectual property right is being infringed:
(a) the competent authorities may at any time seek from
the right holder any information that may assist them
to exercise these powers;
(b) the importer and the right holder shall be promptly
notified of the suspension by the Party's competent
authorities, and where the importer lodges an appeal
against the suspension with competent authorities,
the suspension shall be subject to the conditions,
with such modifications as may be necessary, set out
in paragraphs 6 through 8; and
(c) the Party shall only exempt both public authorities
and officials from liability to appropriate remedial
measures where actions are taken or intended in good
faith.
12. Without prejudice to other rights of action open to the
right holder and subject to the defendant's right to seek
judicial review, each Party shall provide that its competent
authorities shall have the authority to order the destruction
or disposal of infringing goods in accordance with the
principles set out in Article 1715(5). In regard to
counterfeit goods, the authorities shall not allow the re-
exportation of the infringing goods in an unaltered state or
subject them to a different customs procedure, other than in
exceptional circumstances.
13. A Party may exclude from the application of paragraphs 1
through 12 small quantities of goods of a non-commercial nature
contained in travellers' personal luggage or sent in small
consignments that are not repetitive.
14. Annex 1718.14 applies to the Parties specified in that
Annex.
Article 1719: Cooperation and Technical Assistance
1. The Parties shall provide each other on mutually agreed
terms with technical assistance and shall promote cooperation
between their competent authorities. Such cooperation shall
include the training of personnel.
2. The Parties shall cooperate with a view to eliminating
trade in goods that infringe intellectual property rights. For
this purpose, each Party shall establish and notify the other
Parties by January 1, 1994 of contact points in its federal
government and shall exchange information concerning trade in
infringing goods.
Article 1720: Protection of Existing Subject Matter
1. Except as required under Article 1705(7), this Agreement
does not give rise to obligations in respect of acts that
occurred before the date of application of the relevant
provisions of this Agreement for the Party in question.
2. Except as otherwise provided for in this Agreement, each
Party shall apply this Agreement to all subject matter existing
on the date of application of the relevant provisions of this
Agreement for the Party in question and that is protected in a
Party on such date, or that meets or subsequently meets the
criteria for protection under the terms of this Chapter. In
respect of this paragraph and paragraphs 3 and 4, a Party's
obligations with respect to existing works shall be solely
determined under Article 18 of the Berne Convention and with
respect to the rights of producers of sound recordings in
existing sound recordings shall be determined solely under
Article 18 of that Convention, as made applicable under this
Agreement.
3. Except as required under Article 1705(7), and
notwithstanding the first sentence of paragraph 2, no Party may
be required to restore protection to subject matter that, on
the date of application of the relevant provisions of this
Agreement for the Party in question, has fallen into the public
domain in its territory.
4. In respect of any acts relating to specific objects
embodying protected subject matter that become infringing under
the terms of laws in conformity with this Agreement, and that
were begun or in respect of which a significant investment was
made, before the date of entry into force of this Agreement for
that Party, any Party may provide for a limitation of the
remedies available to the right holder as to the continued
performance of such acts after the date of application of this
Agreement for that Party. In such cases, the Party shall,
however, at least provide for payment of equitable
remuneration.
5. No Party shall be obliged to apply Article 1705(2)(d) or
1706(1)(d) with respect to originals or copies purchased prior
to the date of application of the relevant provisions of this
Agreement for that Party.
6. No Party shall be required to apply Article 1709(10), or
the requirement in Article 1709(7) that patent rights shall be
enjoyable without discrimination as to the field of technology,
to use without the authorization of the right holder where
authorization for such use was granted by the government before
the text of the Draft Final Act Embodying the Results of the
Uruguay Round of Multilateral Trade Negotiations became known.
7. In the case of intellectual property rights for which
protection is conditional on registration, applications for
protection that are pending on the date of application of the
relevant provisions of this Agreement for the Party in question
shall be permitted to be amended to claim any enhanced
protection provided under this Agreement. Such amendments
shall not include new matter.
Article 1721: Definitions
1. For purposes of this Chapter:
confidential information includes trade secrets, privileged
information and other materials exempted from disclosure under
the Party's domestic law.
2. For purposes of this Agreement:
encrypted program-carrying satellite signal means a
program-carrying satellite signal that is transmitted in a form
whereby the aural or visual characteristics, or both, are
modified or altered for the purpose of preventing the
unauthorized reception, by persons without the authorized
equipment that is designed to eliminate the effects of such
modification or alteration, of a program carried in that
signal;
geographical indication means any indication that identifies a
good as originating in the territory of a Party, or a region or
locality in that territory, where a particular quality,
reputation or other characteristic of the good is essentially
attributable to its geographical origin;
in a manner contrary to honest commercial practices means at
least practices such as breach of contract, breach of
confidence and inducement to breach, and includes the
acquisition of undisclosed information by other persons who
knew, or were grossly negligent in failing to know, that such
practices were involved in the acquisition;
intellectual property rights refers to copyright and related
rights, trademark rights, patent rights, rights in layout
designs of semiconductor integrated circuits, trade secret
rights, plant breeders' rights, rights in geographical
indications and industrial design rights;
nationals of another Party means, in respect of the relevant
intellectual property right, persons who would meet the
criteria for eligibility for protection provided for in the
Paris Convention (1967), the Berne Convention (1971), the
Geneva Convention (1971), the International Convention for the
Protection of Performers, Producers of Phonograms and
Broadcasting Organizations (1961), the UPOV Convention (1978),
the UPOV Convention (1991) or the Treaty on Intellectual
Property in Respect of Integrated Circuits, as if each Party
were a party to those Conventions, and with respect to
intellectual property rights that are not the subject of these
Conventions, "nationals of another Party" shall be understood
to be at least individuals who are citizens or permanent
residents of that Party and also includes any other natural
person referred to in Annex 201.1 (Country-Specific
Definitions);
public includes, with respect to rights of communication and
performance of works provided for under Articles 11, 11bis(1)
and 14(1)(ii) of the Berne Convention, with respect to
dramatic, dramatico-musical, musical and cinematographic works,
at least, any aggregation of individuals intended to be the
object of, and capable of perceiving, communications or
performances of works, regardless of whether they can do so at
the same or different times or in the same or different places,
provided that such an aggregation is larger than a family and
its immediate circle of acquaintances or is not a group
comprising a limited number of individuals having similarly
close ties that has not been formed for the principal purpose
of receiving such performances and communications of works; and
secondary uses of sound recordings means the use directly for
broadcasting or for any other public communication of a sound
recording.
Annex 1701.3
Intellectual Property Conventions
1. Mexico shall:
(a) make every effort to comply with the substantive
provisions of the 1978 or 1991 UPOV Convention as
soon as possible and shall do so no later than two
years after the date of signature of this Agreement;
and
(b) accept from the date of entry into force of this
Agreement applications from plant breeders for
varieties in all plant genera and species and grant
protection, in accordance with such substantive
provisions, promptly after complying with
subparagraph (a).
2. Notwithstanding Article 1701(2)(b), this Agreement confers
no rights and imposes no obligations on the United States with
respect to Article 6bis of the Berne Convention, or the rights
derived from that Article.
Annex 1705.7
Copyright
The United States shall provide protection to motion
pictures produced in another Party's territory that have been
declared to be in the public domain pursuant to 17 U.S.C.
section 405. This obligation shall apply to the extent that it
is consistent with the Constitution of the United States, and
is subject to budgetary considerations.
Annex 1710.9
Layout Designs
Mexico shall make every effort to implement the
requirements of Article 1710 as soon as possible, and shall do
so no later than four years after the date of entry into force
of this Agreement.
Annex 1718.14
Enforcement of Intellectual Property Rights
Mexico shall make every effort to comply with the
requirements of Article 1718 as soon as possible and shall do
so no later than three years after the date of signature of
this Agreement.
Title:Administrative and Institutional Provisions -- Chapter 18
Author: White House
Document-Date: 29 Sept 1993
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PART SEVEN
ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS
Chapter Eighteen
Publication, Notification and Administration of Laws
Article 1801: Contact Points
Each Party shall designate a contact point to facilitate
communications between the Parties on any matter covered by
this Agreement. On the request of another Party, the contact
point shall identify the office or official responsible for the
matter and assist, as necessary, in facilitating communication
with the requesting Party.
Article 1802: Publication
1. Each Party shall ensure that its laws, regulations,
procedures and administrative rulings of general application
respecting any matter covered by this Agreement are promptly
published or otherwise made available in such a manner as to
enable interested persons and Parties to become acquainted with
them.
2. To the extent possible, each Party shall:
(a) publish in advance any such measure that it proposes
to adopt; and
(b) provide interested persons and Parties a reasonable
opportunity to comment on such proposed measures.
Article 1803: Notification and Provision of Information
1. To the maximum extent possible, each Party shall notify
any other Party with an interest in the matter of any proposed
or actual measure that the Party considers might materially
affect the operation of this Agreement or otherwise
substantially affect that other Party's interests under this
Agreement.
2. On request of another Party, a Party shall promptly
provide information and respond to questions pertaining to any
actual or proposed measure, whether or not that other Party has
been previously notified of that measure.
3. Any notification or information provided under this
Article shall be without prejudice as to whether the measure is
consistent with this Agreement.
Article 1804: Administrative Proceedings
With a view to administering in a consistent, impartial
and reasonable manner all measures of general application
affecting matters covered by this Agreement, each Party shall
ensure that in its administrative proceedings applying measures
referred to in Article 1802 to particular persons, goods or
services of another Party in specific cases that:
(a) wherever possible, persons of another Party that are
directly affected by a proceeding are provided
reasonable notice, in accordance with domestic
procedures, when a proceeding is initiated, including
a description of the nature of the proceeding, a
statement of the legal authority under which the
proceeding is initiated and a general description of
any issues in controversy;
(b) such persons are afforded a reasonable opportunity to
present facts and arguments in support of their
positions prior to any final administrative action,
when time, the nature of the proceeding and the
public interest permit; and
(c) its procedures are in accordance with domestic law.
Article 1805: Review and Appeal
1. Each Party shall adopt or maintain judicial, quasi-
judicial or administrative tribunals or procedures for the
purpose of the prompt review and, where warranted, correction
of final administrative actions regarding matters covered by
this Agreement. Such tribunals shall be impartial and
independent of the office or authority entrusted with
administrative enforcement and shall not have any substantial
interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or
procedures, the parties to the proceeding are provided with the
right to:
(a) a reasonable opportunity to support or defend their
respective positions; and
(b) a decision based on the evidence and submissions of
record or, where required by domestic law, the record
compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further
review as provided in its domestic law, that such decisions
shall be implemented by, and shall govern the practice of, the
offices or authorities with respect to the administrative
action at issue.
Article 1806: Definitions
For purposes of this Chapter:
administrative ruling of general application means an
administrative ruling or interpretation that applies to all
persons and fact situations that fall generally within its
ambit and that establishes a norm of conduct but does not
include:
(a) a determination or ruling made in an administrative
or quasi-judicial proceeding that applies to a
particular person, good or service of another Party
in a specific case; or
(b) a ruling that adjudicates with respect to a
particular act or practice.
Title:Review and Dispute Settlement in Antidumping.....
Title2: and Countervailing Duty Matters -- Chap 19
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:95452
Chapter Nineteen
Review and Dispute Settlement in Antidumping
and Countervailing Duty Matters
Article 1901: General Provisions
1. Article 1904 applies only with respect to goods that the
competent investigating authority of the importing Party,
applying the importing Party's antidumping or countervailing
duty law to the facts of a specific case, determines are goods
of another Party.
2. For purposes of Articles 1903 and 1904, panels shall be
established in accordance with the provisions of Annex 1901.2.
3. Except for Article 2203 (Entry into Force), no provision
of any other Chapter of this Agreement shall be construed as
imposing obligations on a Party with respect to the Party's
antidumping law or countervailing duty law.
Article 1902: Retention of Domestic Antidumping Law and
Countervailing Duty Law
1. Each Party reserves the right to apply its antidumping law
and countervailing duty law to goods imported from the
territory of any other Party. Antidumping law and
countervailing duty law include, as appropriate for each Party,
relevant statutes, legislative history, regulations,
administrative practice and judicial precedents.
2. Each Party reserves the right to change or modify its
antidumping law or countervailing duty law, provided that in
the case of an amendment to a Party's antidumping or
countervailing duty statute:
(a) such amendment shall apply to goods from another
Party only if the amending statute specifies that it
applies to goods from that Party or from the Parties
to this Agreement;
(b) the amending Party notifies in writing the Parties to
which the amendment applies of the amending statute
as far in advance as possible of the date of
enactment of such statute;
(c) following notification, the amending Party, on
request of any Party to which the amendment applies,
consults with that Party prior to the enactment of
the amending statute; and
(d) such amendment, as applicable to that other Party, is
not inconsistent with
(i) the General Agreement on Tariffs and Trade
(GATT), the Agreement on Implementation of
Article VI of the General Agreement on Tariffs
and Trade (the Antidumping Code) or the
Agreement on the Interpretation and Application
of Articles VI, XVI and XXIII of the General
Agreement on Tariffs and Trade (the Subsidies
Code), or any successor agreement to which all
the original signatories to this Agreement are
party, or
(ii) the object and purpose of this Agreement and
this Chapter, which is to establish fair and
predictable conditions for the progressive
liberalization of trade between the Parties to
this Agreement while maintaining effective and
fair disciplines on unfair trade practices, such
object and purpose to be ascertained from the
provisions of this Agreement, its preamble and
objectives, and the practices of the Parties.
Article 1903: Review of Statutory Amendments
1. A Party to which an amendment of another Party's
antidumping or countervailing duty statute applies may request
in writing that such amendment be referred to a binational
panel for a declaratory opinion as to whether:
(a) the amendment does not conform to the provisions of
Article 1902(2)(d)(i) or (ii); or
(b) such amendment has the function and effect of
overturning a prior decision of a panel made pursuant
to Article 1904 and does not conform to the
provisions of Article 1902(2)(d)(i) or (ii).
Such declaratory opinion shall have force or effect only as
provided in this Article.
2. The panel shall conduct its review in accordance with the
procedures of Annex 1903.2.
3. In the event that the panel recommends modifications to
the amending statute to remedy a non-conformity that it has
identified in its opinion:
(a) the two Parties shall immediately begin consultations
and shall seek to achieve a mutually satisfactory
solution to the matter within 90 days of the issuance
of the panel's final declaratory opinion. Such
solution may include seeking corrective legislation
with respect to the statute of the amending Party;
(b) if corrective legislation is not enacted within nine
months from the end of the 90-day consultation period
referred to in subparagraph (a) and no other mutually
satisfactory solution has been reached, the Party
that requested the panel may
(i) take comparable legislative or equivalent
executive action, or
(ii) terminate this Agreement with regard to the
amending Party on 60-day written notice to that
Party.
Article 1904: Review of Final Antidumping and Countervailing
Duty Determinations
1. As provided in this Article, each Party shall replace
judicial review of final antidumping and countervailing duty
determinations with binational panel review.
2. An involved Party may request that a panel review, based
on the administrative record, a final antidumping or
countervailing duty determination of a competent investigating
authority of an importing Party to determine whether such
determination was in accordance with the antidumping or
countervailing duty law of the importing Party. For this
purpose, the antidumping or countervailing duty law consists of
the relevant statutes, legislative history, regulations,
administrative practice and judicial precedents to the extent
that a court of the importing Party would rely on such
materials in reviewing a final determination of the competent
investigating authority. Solely for purposes of the panel
review provided for in this Article, the antidumping and
countervailing duty statutes of the Parties, as those statutes
may be amended from time to time, are incorporated into and
made a part of this Agreement.
3. The panel shall apply the standard of review set out in
Annex 1911 and the general legal principles that a court of the
importing Party otherwise would apply to a review of a
determination of the competent investigating authority.
4. A request for a panel shall be made in writing to the
other involved Party within 30 days following the date of
publication of the final determination in question in the
official journal of the importing Party. In the case of final
determinations that are not published in the official journal
of the importing Party, the importing Party shall immediately
notify the other involved Party of such final determination
where it involves goods from the other involved Party, and the
other involved Party may request a panel within 30 days of
receipt of such notice. Where the competent investigating
authority of the importing Party has imposed provisional
measures in an investigation, the other involved Party may
provide notice of its intention to request a panel under this
Article, and the Parties shall begin to establish a panel at
that time. Failure to request a panel within the time
specified in this paragraph shall preclude review by a panel.
5. An involved Party on its own initiative may request review
of a final determination by a panel and shall, on request of a
person who would otherwise be entitled under the law of the
importing Party to commence domestic procedures for judicial
review of that final determination, request such review.
6. The panel shall conduct its review in accordance with the
procedures established by the Parties pursuant to paragraph 14.
Where both involved Parties request a panel to review a final
determination, a single panel shall review that determination.
7. The competent investigating authority that issued the
final determination in question shall have the right to appear
and be represented by counsel before the panel. Each Party
shall provide that other persons who, pursuant to the law of
the importing Party, otherwise would have had the right to
appear and be represented in a domestic judicial review
proceeding concerning the determination of the competent
investigating authority, shall have the right to appear and be
represented by counsel before the panel.
8. The panel may uphold a final determination, or remand it
for action not inconsistent with the panel's decision. Where
the panel remands a final determination, the panel shall
establish as brief a time as is reasonable for compliance with
the remand, taking into account the complexity of the factual
and legal issues involved and the nature of the panel's
decision. In no event shall the time permitted for compliance
with a remand exceed an amount of time equal to the maximum
amount of time (counted from the date of the filing of a
petition, complaint or application) permitted by statute for
the competent investigating authority in question to make a
final determination in an investigation. If review of the
action taken by the competent investigating authority on remand
is needed, such review shall be before the same panel, which
shall normally issue a final decision within 90 days of the
date on which such remand action is submitted to it.
9. The decision of a panel under this Article shall be
binding on the involved Parties with respect to the particular
matter between the Parties that is before the panel.
10. This Agreement shall not affect:
(a) the judicial review procedures of any Party, or
(b) cases appealed under those procedures,
with respect to determinations other than final determinations.
11. A final determination shall not be reviewed under any
judicial review procedures of the importing Party if an
involved Party requests a panel with respect to that
determination within the time limits set out in this Article.
No Party may provide in its domestic legislation for an appeal
from a panel decision to its domestic courts.
12. This Article shall not apply where:
(a) neither involved Party seeks panel review of a final
determination;
(b) a revised final determination is issued as a direct
result of judicial review of the original final
determination by a court of the importing Party in
cases where neither involved Party sought panel
review of that original final determination; or
(c) a final determination is issued as a direct result of
judicial review that was commenced in a court of the
importing Party before the date of entry into force
of this Agreement.
13. Where, within a reasonable time after the panel decision
is issued, an involved Party alleges that:
(a) (i) a member of the panel was guilty of gross
misconduct, bias, or a serious conflict of
interest, or otherwise materially violated the
rules of conduct,
(ii) the panel seriously departed from a fundamental
rule of procedure, or
(iii) the panel manifestly exceeded its powers,
authority or jurisdiction set out in this
Article, for example by failing to apply
the appropriate standard of review, and
(b) any of the actions set out in subparagraph (a) has
materially affected the panel's decision and
threatens the integrity of the binational panel
review process,
that Party may avail itself of the extraordinary challenge
procedure set out in Annex 1904.13.
14. To implement the provisions of this Article, the Parties
shall adopt rules of procedure by January 1, 1994. Such rules
shall be based, where appropriate, on judicial rules of
appellate procedure, and shall include rules concerning: the
content and service of requests for panels; a requirement that
the competent investigating authority transmit to the panel the
administrative record of the proceeding; the protection of
business proprietary, government classified, and other
privileged information (including sanctions against persons
participating before panels for improper release of such
information); participation by private persons; limitations on
panel review to errors alleged by the Parties or private
persons; filing and service; computation and extensions of
time; the form and content of briefs and other papers; pre- and
post-hearing conferences; motions; oral argument; requests for
rehearing; and voluntary terminations of panel reviews. The
rules shall be designed to result in final decisions within
315 days of the date on which a request for a panel is made,
and shall allow:
(a) 30 days for the filing of the complaint;
(b) 30 days for designation or certification of the
administrative record and its filing with the panel;
(c) 60 days for the complainant to file its brief;
(d) 60 days for the respondent to file its brief;
(e) 15 days for the filing of reply briefs;
(f) 15 to 30 days for the panel to convene and hear oral
argument; and
(g) 90 days for the panel to issue its written decision.
15. In order to achieve the objectives of this Article, the
Parties shall amend their antidumping and countervailing duty
statutes and regulations with respect to antidumping or
countervailing duty proceedings involving goods of the other
Parties, and other statutes and regulations to the extent that
they apply to the operation of the antidumping and
countervailing duty laws. In particular, without limiting the
generality of the foregoing, each Party shall:
(a) amend its statutes or regulations to ensure that
existing procedures concerning the refund, with
interest, of antidumping or countervailing duties
operate to give effect to a final panel decision that
a refund is due;
(b) amend its statutes or regulations to ensure that its
courts shall give full force and effect, with respect
to any person within its jurisdiction, to all
sanctions imposed pursuant to the laws of the other
Parties to enforce provisions of any protective order
or undertaking that such other Party has promulgated
or accepted in order to permit access for purposes of
panel review or of the extraordinary challenge
procedure to confidential, personal, business
proprietary or other privileged information;
(c) amend its statutes or regulations to ensure that
(i) domestic procedures for judicial review of a
final determination may not be commenced until
the time for requesting a panel under paragraph
4 has expired, and
(ii) as a prerequisite to commencing domestic
judicial review procedures to review a final
determination, a Party or other person intending
to commence such procedures shall provide notice
of such intent to the Parties concerned and to
other persons entitled to commence such review
procedures of the same final determination no
later than 10 days prior to the latest date on
which a panel may be requested; and
(d) make the further amendments set out in its Schedule
to Annex 1904.15.
Article 1905: Safeguarding the Panel Review System
1. Where a Party alleges that the application of another
Party's domestic law:
(a) has prevented the establishment of a panel requested
by the complaining Party;
(b) has prevented a panel requested by the complaining
Party from rendering a final decision;
(c) has prevented the implementation of the decision of a
panel requested by the complaining Party or denied it
binding force and effect with respect to the
particular matter that was before the panel; or
(d) has resulted in a failure to provide opportunity for
review of a final determination by a panel or court
of competent jurisdiction that is independent of the
competent investigating authorities, that examines
the basis for the competent investigating authority's
determination and whether the competent investigating
authority properly applied domestic antidumping and
countervailing duty law in reaching the challenged
determination, and that employs the relevant standard
of review identified in Article 1911,
the Party may request in writing consultations with the other
Party regarding the allegations. The consultations shall
begin within 15 days of the date of the request.
2. If the matter has not been resolved within 45 days of the
request for consultations, or such other period as the
consulting Parties may agree, the complaining Party may request
the establishment of a special committee.
3. Unless otherwise agreed by the disputing Parties, the
special committee shall be established within 15 days of a
request and perform its functions in a manner consistent with
this Chapter.
4. The roster for special committees shall be that
established under Annex 1904.13.
5. The special committee shall comprise three members
selected in accordance with the procedures set out in
Annex 1904.13.
6. The Parties shall establish rules of procedure in
accordance with the principles set out in Annex 1905.6.
7. Where the special committee makes an affirmative finding
with respect to one of the grounds specified in paragraph 1,
the complaining Party and the Party complained against shall
begin consultations within 10 days thereafter and shall seek to
achieve a mutually satisfactory solution within 60 days of the
issuance of the committee's report.
8. If, within the 60-day period, the Parties are unable to
reach a mutually satisfactory solution to the matter, or the
Party complained against has not demonstrated to the
satisfaction of the special committee that it has corrected the
problem or problems with respect to which the committee has
made an affirmative finding, the complaining Party may suspend:
(a) the operation of Article 1904 with respect to the
Party complained against; or
(b) the application to the Party complained against of
such benefits under this Agreement as may be
appropriate under the circumstances.
If the complaining Party decides to take action under this
paragraph, it shall do so within 30 days after the end of the
60-day consultation period.
9. In the event that a complaining Party suspends the
operation of Article 1904 with respect to the Party complained
against, the latter Party may reciprocally suspend the
operation of Article 1904 within 30 days after the suspension
of the operation of Article 1904 by the complaining Party. If
either Party decides to suspend the operation of Article 1904,
it shall provide written notice of such suspension to the other
Party.
10. At the request of the Party complained against, the
special committee shall reconvene to determine whether:
(a) the suspension of benefits by the complaining Party
pursuant to paragraph 8(b) is manifestly excessive;
or
(b) the Party complained against has corrected the
problem or problems with respect to which the
committee has made an affirmative finding.
The special committee shall, within 45 days of the request,
present a report to both Parties containing its determination.
Where the special committee determines that the Party
complained against has corrected the problem or problems, any
suspension effected by the complaining Party or the Party
complained against, or both, pursuant to paragraph 8 or 9 shall
be terminated.
11. If the special committee makes an affirmative finding with
respect to one of the grounds specified in paragraph 1, then
effective as of the day following the date of issuance of the
special committee's report:
(a) binational panel or extraordinary challenge committee
review under Article 1904 shall be stayed
(i) in the case of review of any final determination
of the complaining Party requested by the Party
complained against, if such review was requested
after the date on which consultations were
requested pursuant to paragraph 1, and in no
case more than 150 days prior to an affirmative
finding by the special committee, or
(ii) in the case of review of any final determination
of the Party complained against requested by the
complaining Party, at the request of the
complaining Party; and
(b) the time set out in Article 1904(4) or Annex 1904.13
for requesting panel or committee review shall not
run unless and until resumed in accordance with
paragraph 12.
12. If either Party suspends the operation of Article 1904
pursuant to paragraph 8(a), the panel or committee review
stayed under paragraph 11(a) shall be terminated and the
challenge to the final determination shall be irrevocably
referred to the appropriate domestic court for decision, as
provided below:
(a) in the case of review of any final determination of
the complaining Party requested by the Party
complained against, at the request of either Party,
or of a party to the panel review under Article 1904;
or
(b) in the case of review of any final determination of
the Party complained against requested by the
complaining Party, at the request of the complaining
Party, or of a person of the complaining Party that
is a party to the panel review under Article 1904.
If either Party suspends the operation of Article 1904 pursuant
to paragraph 8(a), any running of time suspended under
paragraph 11(b) shall resume.
If the suspension of the operation of Article 1904 does not
become effective, panel or committee review stayed under
paragraph 11(a), and any running of time suspended under
paragraph 11(b), shall resume.
13. If the complaining Party suspends the application to the
Party complained against of such benefits under the Agreement
as may be appropriate under the circumstances pursuant to
paragraph 8(b), panel or committee review stayed under
paragraph 11(a), and any running of time suspended under
paragraph 11(b), shall resume.
14. Each Party shall provide in its domestic legislation that,
in the event of an affirmative finding by the special
committee, the time for requesting judicial review of a final
antidumping or countervailing duty determination shall not run
unless and until the Parties concerned have negotiated a
mutually satisfactory solution under paragraph 7, have
suspended the operation of Article 1904 or the application of
other benefits under paragraph 8.
Article 1906: Prospective Application
This Chapter shall apply only prospectively to:
(a) final determinations of a competent investigating
authority made after the date of entry into force of
this Agreement; and
(b) with respect to declaratory opinions under
Article 1903, amendments to antidumping or
countervailing duty statutes enacted after the date
of entry into force of this Agreement.
Article 1907: Consultations
1. The Parties shall consult annually, or on the request of
any Party, to consider any problems that may arise with respect
to the implementation or operation of this Chapter and
recommend solutions, where appropriate. The Parties shall each
designate one or more officials, including officials of the
competent investigating authorities, to be responsible for
ensuring that consultations occur, when required, so that the
provisions of this Chapter are carried out expeditiously.
2. The Parties further agree to consult on:
(a) the potential to develop more effective rules and
disciplines concerning the use of government
subsidies; and
(b) the potential for reliance on a substitute system of
rules for dealing with unfair transborder pricing
practices and government subsidization.
3. The competent investigating authorities of the Parties
shall consult annually, or on the request of any Party, and may
submit reports to the Commission, where appropriate. In the
context of these consultations, the Parties agree that it is
desirable in the administration of antidumping and
countervailing duty laws to:
(a) publish notice of initiation of investigations in the
importing Party's official journal, setting forth the
nature of the proceeding, the legal authority under
which the proceeding is initiated, and a description
of the goods at issue;
(b) provide notice of the times for submissions of
information and for decisions that the competent
investigating authorities are expressly required by
statute or regulations to make;
(c) provide explicit written notice and instructions as
to the information required from interested parties
and reasonable time to respond to requests for
information;
(d) accord reasonable access to information, noting that
in this context
(i) "reasonable access" means access during the
course of the investigation, to the extent
practicable, so as to permit an opportunity to
present facts and arguments as set out in
paragraph (e); when it is not practicable to
provide access to information during the
investigation in such time as to permit an
opportunity to present facts and arguments,
reasonable access shall mean in time to permit
the adversely affected party to make an informed
decision as to whether to seek judicial or panel
review, and
(ii) "access to information" means access to
representatives determined by the competent
investigating authority to be qualified to have
access to information received by that competent
investigating authority, including access to
confidential (business proprietary) information,
but does not include information of such high
degree of sensitivity that its release would
lead to substantial and irreversible harm to the
owner or which is required to be kept
confidential in accordance with domestic
legislation of a Party; any privileges arising
under the domestic law of the importing Party
relating to communications between the competent
investigating authorities and a lawyer in the
employ of, or providing advice to, those
authorities may be maintained;
(e) provide an opportunity for interested parties to
present facts and arguments, to the extent time
permits, including an opportunity to comment on the
preliminary determination of dumping or of
subsidization;
(f) protect confidential (business proprietary)
information received by the competent investigating
authority to ensure that there is no disclosure
except to representatives determined by the competent
investigating authority to be qualified;
(g) prepare administrative records, including
recommendations of official advisory bodies that may
be required to be kept, and any record of ex parte
meetings that may be required to be kept;
(h) provide disclosure of relevant information, including
an explanation of the calculation or the methodology
used to determine the margin of dumping or the amount
of the subsidy, on which any preliminary or final
determination of dumping or of subsidization is
based, within a reasonable time after a request by
interested parties;
(i) provide a statement of reasons concerning the final
determination of dumping or subsidization; and
(j) provide a statement of reasons for final
determinations concerning material injury to a
domestic industry, threat of material injury to a
domestic industry or material retardation of the
establishment of such an industry.
Inclusion of an item in subparagraphs (a) through (j) is not
intended to serve as guidance to a binational panel reviewing a
final antidumping or countervailing duty determination pursuant
to Article 1904 in determining whether such determination was
in accordance with the antidumping or countervailing duty law
of the importing Party.
Article 1908: Special Secretariat Provisions
1. The Parties shall establish a section within the
Secretariat established pursuant to Article 2002 to facilitate
the operation of this Chapter, including the work of panels or
committees that may be convened pursuant to this Chapter.
2. The Secretaries of the Secretariat shall act jointly to
provide administrative assistance to all panels or committees
established pursuant to this Chapter. The Secretary for the
Section of the Party in which a panel or committee proceeding
is held shall prepare a record thereof and shall preserve an
authentic copy of the same in that Party's Section office.
Such Secretary shall, on request, provide to the Secretary for
the Section of any other Party a copy of such portion of the
record as is requested, except that only public portions of the
record shall be provided to the Secretary for the Section of
any Party that is not an involved Party.
3. Each Secretary shall receive and file all requests, briefs
and other papers properly presented to a panel or committee in
any proceeding before it that is instituted pursuant to this
Chapter and shall number in numerical order all requests for a
panel or committee. The number given to a request shall be the
file number for briefs and other papers relating to such
request.
4. The Secretary for the Section of the Party in which a
panel or committee proceeding is held shall forward to the
Secretary for the Section of the other involved Party copies of
all official letters, documents or other papers received or
filed with that Party's Section office pertaining to any
proceeding before a panel or committee, except for the
administrative record, which shall be handled in accordance
with paragraph 1. The Secretary for the Section of an involved
Party shall provide on request to the Secretary for the Section
of a Party that is not an involved Party in the proceeding a
copy of such public documents as are requested.
Article 1909: Code of Conduct
The Parties shall, by the date of entry into force of this
Agreement, exchange letters establishing a code of conduct for
panelists and members of committees established pursuant to
Articles 1903, 1904 and 1905.
Article 1910: Miscellaneous
On request of another Party, the competent investigating
authority of a Party shall provide to the other Party copies of
all public information submitted to it for purposes of an
antidumping or countervailing duty investigation with respect
to goods of that other Party.
Article 1911: Definitions
For purposes of this Chapter:
administrative record means, unless otherwise agreed by the
Parties and the other persons appearing before a panel:
(a) all documentary or other information presented to or
obtained by the competent investigating authority in
the course of the administrative proceeding,
including any governmental memoranda pertaining to
the case, and including any record of ex parte
meetings as may be required to be kept;
(b) a copy of the final determination of the competent
investigating authority, including reasons for the
determination;
(c) all transcripts or records of conferences or hearings
before the competent investigating authority; and
(d) all notices published in the official journal of the
importing Party in connection with the administrative
proceeding;
antidumping statute as referred to in Articles 1902 and 1903
means "antidumping statute" of a Party as defined in Annex
1911;
competent investigating authority means "competent
investigating authority" of a Party as defined in Annex 1911;
countervailing duty statute as referred to in Articles 1902 and
1903 means "countervailing duty statute" of a Party as defined
in Annex 1911;
domestic law for purposes of Article 1905(1) means a Party's
constitution, statutes, regulations and judicial decisions to
the extent they are relevant to the antidumping and
countervailing duty laws;
final determination means "final determination" of a Party as
defined in Annex 1911;
foreign interests includes exporters or producers of the Party
whose goods are the subject of the proceeding or, in the case
of a countervailing duty proceeding, the government of the
Party whose goods are the subject of the proceeding;
general legal principles includes principles such as standing,
due process, rules of statutory construction, mootness and
exhaustion of administrative remedies;
goods of a Party means domestic products as these are
understood in the General Agreement on Tariffs and Trade;
importing Party means the Party that issued the final
determination;
interested parties includes foreign interests;
involved Party means:
(a) the importing Party; or
(b) a Party whose goods are the subject of the final
determination;
remand means a referral back for a determination not
inconsistent with the panel or committee decision; and
standard of review means the "standard of review" for each
Party as defined in Annex 1911.
Annex 1901.2
Establishment of Binational Panels
1. On the date of entry into force of this Agreement, the
Parties shall establish and thereafter maintain a roster of
individuals to serve as panelists in disputes under this
Chapter. The roster shall include judges or former judges to
the fullest extent practicable. The Parties shall consult in
developing the roster, which shall include at least 75
candidates. Each Party shall select at least 25 candidates,
and all candidates shall be citizens of Canada, Mexico or the
United States. Candidates shall be of good character, high
standing and repute, and shall be chosen strictly on the basis
of objectivity, reliability, sound judgment and general
familiarity with international trade law. Candidates shall not
be affiliated with a Party, and in no event shall a candidate
take instructions from a Party. The Parties shall maintain the
roster, and may amend it, when necessary, after consultations.
2. A majority of the panelists on each panel shall be lawyers
in good standing. Within 30 days of a request for a panel,
each involved Party shall appoint two panelists, in
consultation with the other involved Party. The involved
Parties normally shall appoint panelists from the roster. If a
panelist is not selected from the roster, the panelist shall be
chosen in accordance with and be subject to the criteria of
paragraph 1. Each involved Party shall have the right to
exercise four peremptory challenges, to be exercised
simultaneously and in confidence, disqualifying from
appointment to the panel up to four candidates proposed by the
other involved Party. Peremptory challenges and the selection
of alternative panelists shall occur within 45 days of the
request for the panel. If an involved Party fails to appoint
its members to a panel within 30 days or if a panelist is
struck and no alternative panelist is selected within 45 days,
such panelist shall be selected by lot on the 31st or 46th day,
as the case may be, from that Party's candidates on the roster.
3. Within 55 days of the request for a panel, the involved
Parties shall agree on the selection of a fifth panelist. If
the involved Parties are unable to agree, they shall decide by
lot which of them shall select, by the 61st day, the fifth
panelist from the roster, excluding candidates eliminated by
peremptory challenges.
Annex 1901.2
4. On appointment of the fifth panelist, the panelists shall
promptly appoint a chairman from among the lawyers on the panel
by majority vote of the panelists. If there is no majority
vote, the chairman shall be appointed by lot from among the
lawyers on the panel.
5. Decisions of the panel shall be by majority vote and based
on the votes of all members of the panel. The panel shall
issue a written decision with reasons, together with any
dissenting or concurring opinions of panelists.
6. Panelists shall be subject to the code of conduct
established pursuant to Article 1909. If an involved Party
believes that a panelist is in violation of the code of
conduct, the involved Parties shall consult and if they agree,
the panelist shall be removed and a new panelist shall be
selected in accordance with the procedures of this Annex.
7. When a panel is convened pursuant to Article 1904 each
panelist shall be required to sign:
(a) an application for protective order for information
supplied by the United States or its persons covering
business proprietary and other privileged
information;
(b) an undertaking for information supplied by Canada or
its persons covering confidential, personal, business
proprietary and other privileged information; or
(c) an undertaking for information supplied by Mexico or
its persons covering confidential, business
proprietary and other privileged information.
8. On a panelist's acceptance of the obligations and terms of
an application for protective order or disclosure undertaking,
the importing Party shall grant access to the information
covered by such order or disclosure undertaking. Each Party
shall establish appropriate sanctions for violations of
protective orders or disclosure undertakings issued by or given
to any Party. Each Party shall enforce such sanctions with
respect to any person within its jurisdiction. Failure by a
panelist to sign a protective order or disclosure undertaking
shall result in disqualification of the panelist.
9. If a panelist becomes unable to fulfill panel duties or is
disqualified, proceedings of the panel shall be suspended
Annex 1901.2
pending the selection of a substitute panelist in accordance
with the procedures of this Annex.
10. Subject to the code of conduct established pursuant to
Article 1909, and provided that it does not interfere with the
performance of the duties of such panelist, a panelist may
engage in other business during the term of the panel.
11. While acting as a panelist, a panelist may not appear as
counsel before another panel.
12. With the exception of violations of protective orders or
disclosure undertakings, signed pursuant to paragraph 7,
panelists shall be immune from suit and legal process relating
to acts performed by them in their official capacity.
Annex 1903.2
Panel Procedures Under Article 1903
1. The panel shall establish its own rules of procedure
unless the Parties otherwise agree prior to the establishment
of that panel. The procedures shall ensure a right to at least
one hearing before the panel, as well as the opportunity to
provide written submissions and rebuttal arguments. The
proceedings of the panel shall be confidential, unless the two
Parties otherwise agree. The panel shall base its decisions
solely on the arguments and submissions of the two Parties.
2. Unless the Parties to the dispute otherwise agree, the
panel shall, within 90 days after its chairman is appointed,
present to the two Parties an initial written declaratory
opinion containing findings of fact and its determination
pursuant to Article 1903.
3. If the findings of the panel are affirmative, the panel
may include in its report its recommendations as to the means
by which the amending statute could be brought into conformity
with the provisions of Article 1902(2)(d). In determining
what, if any, recommendations are appropriate, the panel shall
consider the extent to which the amending statute affects
interests under this Agreement. Individual panelists may
provide separate opinions on matters not unanimously agreed.
The initial opinion of the panel shall become the final
declaratory opinion, unless a Party to the dispute requests a
reconsideration of the initial opinion pursuant to paragraph 4.
4. Within 14 days of the issuance of the initial declaratory
opinion, a Party to the dispute disagreeing in whole or in part
with the opinion may present a written statement of its
objections and the reasons for those objections to the panel.
In such event, the panel shall request the views of both
Parties and shall reconsider its initial opinion. The panel
shall conduct any further examination that it deems
appropriate, and shall issue a final written opinion, together
with dissenting or concurring views of individual panelists,
within 30 days of the request for reconsideration.
5. Unless the Parties to the dispute otherwise agree, the
final declaratory opinion of the panel shall be made public,
along with any separate opinions of individual panelists and
any written views that either Party may wish to be published.
Annex 1903.2
6. Unless the Parties to the dispute otherwise agree,
meetings and hearings of the panel shall take place at the
office of the amending Party's Section of the Secretariat.
Annex 1904.13
Extraordinary Challenge Procedure
1. The involved Parties shall establish an extraordinary
challenge committee, composed of three members, within 15 days
of a request pursuant to Article 1904(13). The members shall
be selected from a 15-person roster comprised of judges or
former judges of a federal judicial court of the United States
or a judicial court of superior jurisdiction of Canada, or a
federal judicial court of Mexico. Each Party shall name five
persons to this roster. Each involved Party shall select one
member from this roster and the involved Parties shall decide
by lot which of them shall select the third member from the
roster.
2. The Parties shall establish by the date of entry into
force of the Agreement rules of procedure for committees. The
rules shall provide for a decision of a committee within
90 days of its establishment.
3. Committee decisions shall be binding on the Parties with
respect to the particular matter between the Parties that was
before the panel. After examination of the legal and factual
analysis underlying the findings and conclusions of the panel's
decision in order to determine whether one of the grounds set
out in Article 1904(13) has been established, and on finding
that one of those grounds has been established, the committee
shall vacate the original panel decision or remand it to the
original panel for action not inconsistent with the committee's
decision; if the grounds are not established, it shall deny the
challenge and, therefore, the original panel decision shall
stand affirmed. If the original decision is vacated, a new
panel shall be established pursuant to Annex 1901.2.
Annex 1904.15
Amendments to Domestic Laws
Schedule of Canada
1. Canada shall amend sections 56 and 58 of the Special
Import Measures Act, as amended, to allow the United States
with respect to goods of the United States or Mexico with
respect to goods of Mexico or a United States or a Mexican
manufacturer, producer, or exporter, without regard to payment
of duties, to make a written request for a re-determination;
and section 59 to require the Deputy Minister to make a ruling
on a request for a redetermination within one year of a request
to a designated officer or other customs officer.
2. Canada shall amend section 18.3(1) of the Federal Court
Act, as amended, to render that section inapplicable to the
United States and to Mexico; and shall provide in its statutes
or regulations that persons (including producers of goods
subject to an investigation) have standing to ask Canada to
request a panel review where such persons would be entitled to
commence domestic procedures for judicial review if the final
determination were reviewable by the Federal Court pursuant to
section 18.1(4).
3. Canada shall amend the Special Import Measures Act, as
amended, and any other relevant provisions of law, to provide
that the following actions of the Deputy Minister shall be
deemed for the purposes of this Article to be final
determinations subject to judicial review:
(a) a determination by the Deputy Minister pursuant to
section 41;
(b) a re-determination by the Deputy Minister pursuant to
section 59; and
(c) a review by the Deputy Minister of an undertaking
pursuant to section 53(1).
4. Canada shall amend Part II of the Special Import Measures
Act, as amended, to provide for binational panel review
respecting goods of Mexico and the United States.
Annex 1904.15
5. Canada shall amend Part II of the Special Import Measures
Act, as amended, to provide for definitions related to this
Chapter, as may be required.
6. Canada shall amend Part II of the Special Import Measures
Act, as amended, to permit the governments of Mexico and the
United States to request binational panel review of final
determinations respecting goods of Mexico and the United
States.
7. Canada shall amend Part II of the Special Import Measures
Act, as amended, to provide for the establishment of binational
panels requested to review final determinations in respect of
goods of Mexico and the United States.
8. Canada shall amend Part II of the Special Import Measures
Act, as amended, to provide that binational panel review of a
final determination shall be conducted in accordance with this
Chapter.
9. Canada shall amend Part II of the Special Import Measures
Act, as amended, to provide that an extraordinary challenge
proceeding shall be requested and conducted in accordance with
Article 1904 and Annex 1904.13.
10. Canada shall amend Part II of the Special Import Measures
Act, as amended, to provide for a code of conduct, immunity for
anything done or omitted to be done during the course of panel
proceedings, the signing of and compliance with disclosure
undertakings respecting confidential information, and
remuneration for members of panels and committees established
pursuant to this Chapter.
11. Canada shall make such amendments as are necessary to
establish a Canadian Secretariat for this Agreement and
generally to facilitate the operation of this Chapter and the
work of the binational panels, extraordinary challenge
committees and special committees convened under this Chapter.
Schedule of Mexico
Mexico shall amend its antidumping and countervailing duty
statutes and regulations, and other statutes and regulations to
the extent that they apply to the operation of the antidumping
and countervailing duty laws, to provide the following:
Annex 1904.15
(a) elimination of the possibility of imposing duties
within the five-day period after the acceptance of a
petition;
(b) substitution of the term Resoluci n de Inicio
("Initial Resolution") for the term Resoluci n
Provisional ("Provisional Resolution") and the term
Resoluci n Provisional ("Provisional Resolution") for
the term Resoluci n que revisa a la Resoluci n
Provisional ("Resolution Reviewing the Provisional
Resolution");
(c) full participation in the administrative process for
interested parties, as well as the right to
administrative appeal and judicial review of final
determinations of investigations, reviews, product
coverage or other final decisions affecting them;
(d) elimination of the possibility of imposing
provisional duties before the issuance of a
preliminary determination;
(e) the right to immediate access to review of final
determinations by binational panels for interested
parties, without the need to exhaust first the
administrative appeal;
(f) explicit and adequate timetables for determinations
of the competent investigating authority and for the
submission of questionnaires, evidence and comments
by interested parties, as well as an opportunity for
them to present facts and arguments in support of
their positions prior to any final determination, to
the extent time permits, including an opportunity to
be adequately informed in a timely manner of and to
comment on all aspects of preliminary determinations
of dumping or subsidization;
(g) written notice to interested parties of any of the
actions or resolutions rendered by the competent
investigating authority, including initiation of an
administrative review as well as its conclusion;
(h) disclosure meetings with interested parties by the
competent investigating authority conducting its
investigations and reviews, within seven calendar
days after the date of publication in the Diario
Oficial de la Federaci n ("Federal Official Journal")
Annex 1904.15
of preliminary and final determinations, to explain
the margins of dumping and the amount of subsidies
calculations and to provide the interested parties
with copies of sample calculations and, if used,
computer programs;
(i) timely access by eligible counsel of interested
parties during the course of the proceeding
(including disclosure meetings) and on appeal, either
before a national tribunal or a panel, to all
information contained in the administrative record of
the proceeding, including confidential information,
excepting proprietary information of such a high
degree of sensitivity that its release would lead to
substantial and irreversible harm to the owner as
well as government classified information, subject to
an undertaking for confidentiality that strictly
forbids use of the information for personal benefit
and its disclosure to persons who are not authorized
to receive such information; and for sanctions that
are specific to violations of undertakings in
proceedings before national tribunals or panels;
(j) timely access by interested parties during the course
of the proceeding, to all non-confidential
information contained in the administrative record
and access to such information by interested parties
or their representatives in any proceeding after 90
days following the issuance of the final
determination;
(k) a mechanism requiring that any person submitting
documents to the competent investigating authority
shall simultaneously serve on interested persons,
including foreign interests, any submissions after
the complaint;
(l) preparation of summaries of ex parte meetings held
between the competent investigating authority and any
interested party and the inclusion in the
administrative record of such summaries, which shall
be made available to parties to the proceeding; if
such summaries contain business proprietary
information, the documents must be disclosed to a
party's representative under an undertaking to ensure
confidentiality;
Annex 1904.15
(m) maintenance by the competent investigating authority
of an administrative record as defined in this
Chapter and a requirement that the final
determination be based solely on the administrative
record;
(n) informing interested parties in writing of all data
and information the administering authority requires
them to submit for the investigation, review, product
coverage proceeding, or other antidumping or
countervailing duty proceeding;
(o) the right to an annual individual review on request
by the interested parties through which they can
obtain their own dumping margin or countervailing
duty rate, or can change the margin or rate they
received in the investigation or a previous review,
reserving to the competent investigating authority
the ability to initiate a review, at any time, on its
own motion and requiring that the competent
investigating authority issue a notice of initiation
within a reasonable period of time after the request;
(p) application of determinations issued as a result of
judicial, administrative, or panel review, to the
extent they are relevant to interested parties in
addition to the plaintiff, so that all interested
parties will benefit;
(q) issuance of binding decisions by the competent
investigating authority if an interested party seeks
clarification outside the context of an antidumping
or countervailing duty investigation or review with
respect to whether a particular product is covered by
an antidumping or countervailing duty order;
(r) a detailed statement of reasons and the legal basis
for final determinations in a manner sufficient to
permit interested parties to make an informed
decision as to whether to seek judicial or panel
review, including an explanation of methodological or
policy issues raised in the calculation of dumping or
subsidization;
(s) written notice to interested parties and publication
in the Diario Oficial de la Federaci n ("Federal
Official Journal") of initiation of investigations
setting forth the nature of the proceeding, the legal
Annex 1904.15
authority under which the proceeding is initiated,
and a description of the product at issue;
(t) documentation in writing of all advisory bodies'
decisions or recommendations, including the basis for
the decisions, and release of such written decisions
to parties to the proceeding; all decisions or
recommendations of any advisory body shall be placed
in the administrative record and made available to
parties to the proceeding; and
(u) a standard of review to be applied by binational
panels as set out in subparagraph (c) of the
definition of "standard of review" in Annex 1911.
Schedule of the United States
1. The United States shall amend section 301 of the Customs
Courts Act of 1980, as amended, and any other relevant
provisions of law, to eliminate the authority to issue
declaratory judgments in any civil action involving an
antidumping or countervailing duty proceeding regarding a class
or kind of Canadian or Mexican merchandise.
2. The United States shall amend section 405(a) of the United
States - Canada Free-Trade Agreement Implementation Act of
1988, to provide that the interagency group established under
section 242 of the Trade Expansion Act of 1962 shall prepare a
list of individuals qualified to serve as members of binational
panels, extraordinary challenge committees and special
committees convened under this Chapter.
3. The United States shall amend section 405(b) of the United
States - Canada Free-Trade Agreement Implementation Act of
1988, to provide that panelists selected to serve on panels or
committees convened pursuant to this Chapter, and individuals
designated to assist such appointed individuals, shall not be
considered employees of the United States.
4. The United States shall amend section 405(c) of the United
States - Canada Free-Trade Agreement Implementation Act of
1988, to provide that panelists selected to serve on panels or
committees convened pursuant to this Chapter, and individuals
designated to assist the individuals serving on such panels or
committees, shall be immune from suit and legal process
relating to acts performed by such individuals in their
official capacity and within the scope of their functions as
Annex 1904.15
such panelists or committee members, except with respect to the
violation of protective orders described in section 777f(d)(3)
of the Tariff Act of 1930, as amended.
5. The United States shall amend section 405(d) of the United
States - Canada Free-Trade Agreement Implementation Act of
1988, to establish a United States Secretariat to facilitate
the operation of this Chapter and the work of the binational
panels, extraordinary challenge committees and special
committees convened under this Chapter.
6. The United States shall amend section 407 of the United
States - Canada Free-Trade Agreement Implementation Act of
1988, to provide that an extraordinary challenge committee
convened pursuant to Article 1904 and Annex 1904.13 shall have
authority to obtain information in the event of an allegation
that a member of a binational panel was guilty of gross
misconduct, bias, or a serious conflict of interest, or
otherwise materially violated the rules of conduct, and for the
committee to summon the attendance of witnesses, order the
taking of depositions and obtain the assistance of any district
or territorial court of the United States in aid of the
committee's investigation.
7. The United States shall amend section 408 of the United
States - Canada Free-Trade Agreement Implementation Act of
1988, to provide that, in the case of a final determination of
a competent investigating authority of Mexico, as well as
Canada, the filing with the United States Secretary of a
request for binational panel review by a person described in
Article 1904(5) shall be deemed, on receipt of the request by
the Secretary, to be a request for binational panel review
within the meaning of Article 1904(4).
8. The United States shall amend section 516A of the Tariff
Act of 1930, as amended, to provide that judicial review of
antidumping or countervailing duty cases regarding Mexican, as
well as Canadian, merchandise shall not be commenced in the
Court of International Trade if binational panel review is
requested.
9. The United States shall amend section 516A(a) of the
Tariff Act of 1930, as amended, to provide that the time limits
for commencing an action in the Court of International Trade
with regard to antidumping or countervailing duty proceedings
involving Mexican or Canadian merchandise shall not begin to
run until the 31st day after the date of publication in the
Annex 1904.15
Federal Register of notice of the final determination or the
antidumping duty order.
10. The United States shall amend section 516A(g) of the
Tariff Act of 1930, as amended, to provide, in accordance with
the terms of this Chapter, for binational panel review of
antidumping and countervailing duty cases involving Mexican or
Canadian merchandise. Such amendment shall provide that if
binational panel review is requested such review will be
exclusive.
11. The United States shall amend section 516A(g) of the
Tariff Act of 1930, as amended, to provide that the competent
investigating authority shall, within the period specified by
any panel formed to review a final determination regarding
Mexican or Canadian merchandise, take action not inconsistent
with the decision of the panel or committee.
12. The United States shall amend section 777 of the Tariff
Act of 1930, as amended, to provide for the disclosure to
authorized persons under protective order of proprietary
information in the administrative record, if binational panel
review of a final determination regarding Mexican or Canadian
merchandise is requested.
13. The United States shall amend section 777 of the Tariff
Act of 1930, as amended, to provide for the imposition of
sanctions on any person who the competent investigating
authority finds to have violated a protective order issued by
the competent investigating authority of the United States or
disclosure undertakings entered into with an authorized agency
of Mexico or with a competent investigating authority of Canada
to protect proprietary material during binational panel review.
Annex 1905.6
Special Committee Procedures
The Parties shall establish rules of procedure by the date
of entry into force of this Agreement in accordance with the
following principles:
(a) the procedures shall assure a right to at least one
hearing before the special committee as well as the
opportunity to provide initial and rebuttal written
submissions;
(b) the procedures shall assure that the special
committee shall prepare an initial report typically
within 60 days of the appointment of the last member,
and shall afford the Parties 14 days to comment on
that report prior to issuing a final report 30 days
after presentation of the initial report;
(c) the special committee's hearings, deliberations, and
initial report, and all written submissions to and
communications with the special committee shall be
confidential;
(d) unless the Parties to the dispute otherwise agree,
the decision of the special committee shall be
published 10 days after it is transmitted to the
disputing Parties, along with any separate opinions
of individual members and any written views that
either Party may wish to be published; and
(e) unless the Parties to the dispute otherwise agree,
meetings and hearings of the special committee shall
take place at the office of the Section of the
Secretariat of the Party complained against.
Annex 1911
Country-Specific Definitions
For purposes of this Chapter:
antidumping statute means:
(a) in the case of Canada, the relevant provisions of the
Special Import Measures Act, as amended, and any
successor statutes;
(b) in the case of the United States, the relevant
provisions of Title VII of the Tariff Act of 1930, as
amended, and any successor statutes;
(c) in the case of Mexico, the relevant provisions of the
Ley Reglamentaria del Art culo 131 de la Constituci n
Pol tica de los Estados Unidos Mexicanos en Materia
de Comercio Exterior ("Foreign Trade Act Implementing
Article 131 of the Constitution of the United Mexican
States"), as amended, and any successor statutes; and
(d) the provisions of any other statute that provides for
judicial review of final determinations under
subparagraph (a), (b) or (c), or indicates the
standard of review to be applied to such
determinations;
competent investigating authority means:
(a) in the case of Canada
(i) the Canadian International Trade Tribunal, or
its successor, or
(ii) the Deputy Minister of National Revenue for
Customs and Excise as defined in the Special
Import Measures Act, as amended, or the Deputy
Minister's successor;
(b) in the case of the United States
(i) the International Trade Administration of the
United States Department of Commerce, or its
successor, or
Annex 1911
(ii) the United States International Trade
Commission, or its successor; and
(c) in the case of Mexico, the designated authority
within the Secretar a de Comercio y Fomento
Industrial ("Secretariat of Trade and Industrial
Development"), or its successor;
countervailing duty statute means:
(a) in the case of Canada, the relevant provisions of the
Special Import Measures Act, as amended, and any
successor statutes;
(b) in the case of the United States, section 303 and the
relevant provisions of Title VII of the Tariff Act of
1930, as amended, and any successor statutes;
(c) in the case of Mexico, the relevant provisions of the
Ley Reglamentaria del Art culo 131 de la Constituci n
Pol tica de los Estados Unidos Mexicanos en Materia
de Comercio Exterior ("Foreign Trade Act Implementing
Article 131 of the Constitution of the United Mexican
States"), as amended, and any successor statutes; and
(d) the provisions of any other statute that provides for
judicial review of final determinations under
subparagraph (a), (b) or (c), or indicates the
standard of review to be applied to such
determinations;
final determination means:
(a) in the case of Canada,
(i) an order or finding of the Canadian
International Trade Tribunal under subsection
43(1) of the Special Import Measures Act,
(ii) an order by the Canadian International Trade
Tribunal under subsection 76(4) of the Special
Import Measures Act, as amended, continuing an
order or finding made under subsection 43(1) of
the Act with or without amendment,
(iii) a determination by the Deputy Minister of
National Revenue for Customs and Excise
Annex 1911
pursuant to section 41 of the Special
Import Measures Act, as amended,
(iv) a re-determination by the Deputy Minister
pursuant to section 59 of the Special Import
Measures Act, as amended,
(v) a decision by the Canadian International Trade
Tribunal pursuant to subsection 76(3) of the
Special Import Measures Act, as amended, not to
initiate a review,
(vi) a reconsideration by the Canadian International
Trade Tribunal pursuant to subsection 91(3) of
the Special Import Measures Act, as amended, and
(vii) a review by the Deputy Minister of an
undertaking pursuant to subsection 53(1) of
the Special Import Measures Act, as
amended;
(b) in the case of the United States,
(i) a final affirmative determination by the
International Trade Administration of the United
States Department of Commerce or by the United
States International Trade Commission under
section 705 or 735 of the Tariff Act of 1930, as
amended, including any negative part of such a
determination,
(ii) a final negative determination by the
International Trade Administration of the United
States Department of Commerce or by the United
States International Trade Commission under
section 705 or 735 of the Tariff Act of 1930, as
amended, including any affirmative part of such
a determination,
(iii) a final determination, other than a
determination in (iv), under section 751 of
the Tariff Act of 1930, as amended,
(iv) a determination by the United States
International Trade Commission under section
751(b) of the Tariff Act of 1930, as amended,
Annex 1911
not to review a determination based on changed
circumstances, and
(v) a final determination by the International Trade
Administration of the United States Department
of Commerce as to whether a particular type of
merchandise is within the class or kind of
merchandise described in an existing finding of
dumping or antidumping or countervailing duty
order; and
(c) in the case of the Mexico,
(i) a final resolution regarding antidumping or
countervailing duties investigations by the
Secretar a de Comercio y Fomento Industrial
("Secretariat of Trade and Industrial
Development"), pursuant to Article 13 of the Ley
Reglamentaria del Art culo 131 de la
Constituci n Pol tica de los Estados Unidos
Mexicanos en Materia de Comercio Exterior
("Foreign Trade Act Implementing Article 131 of
the Constitution of the United Mexican States"),
as amended,
(ii) a final resolution regarding an annual
administrative review of antidumping or
countervailing duties by the Secretar a de
Comercio y Fomento Industrial ("Secretariat of
Trade and Industrial Development"), as described
in paragraph (o) of its Schedule to Annex
1904.15, and
(iii) a final resolution by the Secretar a de
Comercio y Fomento Industrial ("Secretariat
of Trade and Industrial Development") as to
whether a particular type of merchandise is
within the class or kind of merchandise
described in an existing antidumping or
countervailing duty resolution; and
standard of review means the following standards, as may be
amended from time to time by the relevant Party:
(a) in the case of Canada, the grounds set out in
subsection 18.1(4) of the Federal Court Act, as
amended, with respect to all final determinations;
Annex 1911
(b) in the case of the United States,
(i) the standard set out in section 516A(b)(l)(B) of
the Tariff Act of 1930, as amended, with the
exception of a determination referred to in
(ii), and
(ii) the standard set out in section 516A(b)(l)(A) of
the Tariff Act of 1930, as amended, with respect
to a determination by the United States
International Trade Commission not to initiate a
review pursuant to section 751(b) of the Tariff
Act of 1930, as amended; and
(c) in the case of the Mexico, the standard set out in
Article 238 of the C digo Fiscal de la Federaci n
("Federal Fiscal Code"), or any successor statutes,
based solely on the administrative record.
Title:Institutional Arrangements and Dispute Settlement proc.
Title2: Chapter 20
Author: White House
Document-Date: 29 Sept 1993
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Chapter Twenty
Institutional Arrangements
and Dispute Settlement Procedures
Section A - Institutions
Article 2001: The Free Trade Commission
1. The Parties hereby establish the Free Trade Commission,
comprising cabinet-level representatives of the Parties or
their designees.
2. The Commission shall:
(a) supervise the implementation of this Agreement;
(b) oversee its further elaboration;
(c) resolve disputes that may arise regarding its
interpretation or application;
(d) supervise the work of all committees and working
groups established under this Agreement, referred to
in Annex 2001.2; and
(e) consider any other matter that may affect the
operation of this Agreement.
3. The Commission may:
(a) establish, and delegate responsibilities to, ad hoc
or standing committees, working groups or expert
groups;
(b) seek the advice of non-governmental persons or
groups; and
(c) take such other action in the exercise of its
functions as the Parties may agree.
4. The Commission shall establish its rules and procedures.
All decisions of the Commission shall be taken by consensus,
except as the Commission may otherwise agree.
5. The Commission shall convene at least once a year in
regular session. Regular sessions of the Commission shall be
chaired successively by each Party.
Article 2002: The Secretariat
1. The Commission shall establish and oversee a Secretariat
comprising national Sections.
2. Each Party shall:
(a) establish a permanent office of its Section;
(b) be responsible for
(i) the operation and costs of its Section, and
(ii) the remuneration and payment of expenses of
panelists and members of committees and
scientific review boards established under this
Agreement, as set out in Annex 2002.2;
(c) designate an individual to serve as Secretary for its
Section, who shall be responsible for its
administration and management; and
(d) notify the Commission of the location of its
Section's office.
3. The Secretariat shall:
(a) provide assistance to the Commission;
(b) provide administrative assistance to
(i) panels and committees established under Chapter
Title:Oterh Provisions - Chapter 21
Author: White House
Document-Date: 29 Sept 1993
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PART EIGHT
OTHER PROVISIONS
Chapter Twenty-One
Exceptions
Article 2101: General Exceptions
1. For purposes of:
(a) Part Two (Trade in Goods), except to the extent that
a provision of that Part applies to services or
investment, and
(b) Part Three (Technical Barriers to Trade), except to
the extent that a provision of that Part applies to
services,
GATT Article XX and its interpretative notes, or any equivalent
provision of a successor agreement to which all Parties are
party, are incorporated into and made part of this Agreement.
The Parties understand that the measures referred to in GATT
Article XX(b) include environmental measures necessary to
protect human, animal or plant life or health, and that GATT
Article XX(g) applies to measures relating to the conservation
of living and non-living exhaustible natural resources.
2. Provided that such measures are not applied in a manner
that would constitute a means of arbitrary or unjustifiable
discrimination between countries where the same conditions
prevail or a disguised restriction on trade between the
Parties, nothing in:
(a) Part Two (Trade in Goods), to the extent that a
provision of that Part applies to services,
(b) Part Three (Technical Barriers to Trade), to the
extent that a provision of that Part applies to
services,
(c) Chapter Twelve (Cross-Border Trade in Services), and
(d) Chapter Thirteen (Telecommunications),
shall be construed to prevent the adoption or enforcement by
any Party of measures necessary to secure compliance with laws
or regulations that are not inconsistent with the provisions of
this Agreement, including those relating to health and safety
and consumer protection.
Article 2102: National Security
1. Subject to Articles 607 (Energy - National Security
Measures) and 1018 (Government Procurement - Exceptions),
nothing in this Agreement shall be construed:
(a) to require any Party to furnish or allow access to
any information the disclosure of which it determines
to be contrary to its essential security interests;
(b) to prevent any Party from taking any actions that it
considers necessary for the protection of its
essential security interests
(i) relating to the traffic in arms, ammunition and
implements of war and to such traffic and
transactions in other goods, materials, services
and technology undertaken directly or indirectly
for the purpose of supplying a military or other
security establishment,
(ii) taken in time of war or other emergency in
international relations, or
(iii) relating to the implementation of national
policies or international agreements
respecting the non-proliferation of nuclear
weapons or other nuclear explosive devices;
or
(c) to prevent any Party from taking action in pursuance
of its obligations under the United Nations Charter
for the maintenance of international peace and
security.
Article 2103: Taxation
1. Except as set out in this Article, nothing in this
Agreement shall apply to taxation measures.
2. Nothing in this Agreement shall affect the rights and
obligations of any Party under any tax convention. In the
event of any inconsistency between this Agreement and any such
convention, that convention shall prevail to the extent of the
inconsistency.
3. Notwithstanding paragraph 2:
(a) Article 301 (Market Access - National Treatment) and
such other provisions of this Agreement as are
necessary to give effect to that Article shall apply
to taxation measures to the same extent as does
Article III of the GATT; and
(b) Article 314 (Market Access - Export Taxes) and
Article 604 (Energy - Export Taxes) shall apply to
taxation measures.
4. Subject to paragraph 2:
(a) Article 1202 (Cross-Border Trade in Services -
National Treatment) and Article 1405 (Financial
Services - National Treatment) shall apply to
taxation measures on income, capital gains or on the
taxable capital of corporations, and to those taxes
listed in paragraph 1 of Annex 2103.4, that relate to
the purchase or consumption of particular services,
and
(b) Articles 1102 and 1103 (Investment - National
Treatment and Most-Favored Nation Treatment),
Articles 1202 and 1203 (Cross-Border Trade in
Services - National Treatment and Most-Favored Nation
Treatment) and Articles 1405 and 1406 (Financial
Services - National Treatment and Most-Favored Nation
Treatment) shall apply to all taxation measures,
other than those on income, capital gains or on the
taxable capital of corporations, taxes on estates,
inheritances, gifts and generation-skipping transfers
and those taxes listed in paragraph 1 of Annex
2103.4,
except that nothing in those Articles shall apply
(c) any most-favored-nation obligation with respect to an
advantage accorded by a Party pursuant to a tax
convention,
(d) to a non-conforming provision of any existing
taxation measure,
(e) to the continuation or prompt renewal of a non-
conforming provision of any existing taxation
measure,
(f) to an amendment to a non-conforming provision of any
existing taxation measure to the extent that the
amendment does not decrease its conformity, at the
time of the amendment, with any of those Articles,
(g) to any new taxation measure aimed at ensuring the
equitable and effective imposition or collection of
taxes and that does not arbitrarily discriminate
between persons, goods or services of the Parties or
arbitrarily nullify or impair benefits accorded under
those Articles, in the sense of Annex 2004, or
(h) to the measures listed in paragraph 2 of Annex
2103.4.
5. Subject to paragraph 2 and without prejudice to the rights
and obligations of the Parties under paragraph 3, Article
1106(3), (4) and (5) (Investment - Performance Requirements)
shall apply to taxation measures.
6. Article 1110 (Investment - Expropriation) shall apply to
taxation measures except that no investor may invoke that
Article as the basis for a claim under Article 1116 or 1117,
where it has been determined pursuant to this paragraph that
the measure is not an expropriation. The investor shall refer
the issue of whether the measure is not an expropriation for a
determination to the appropriate competent authorities set out
in Annex 2103.6 at the time that it gives notice under Article
1119. If the competent authorities do not agree to consider
the issue or, having agreed to consider it, fail to agree that
the measure is not an expropriation within a period of six
months of such referral, the investor may submit its claim to
arbitration under Article 1120.
Article 2104: Balance of Payments
1. Nothing in this Agreement shall be construed to prevent a
Party from adopting or maintaining measures that restrict
transfers where the Party experiences serious balance of
payments difficulties, or the threat thereof, and such
restrictions are consistent with paragraphs 2 through 4 and
are:
(a) consistent with paragraph 5 to the extent they are
imposed on other transfers than cross-border trade in
financial services; or
(b) consistent with paragraphs 6 and 7 to the extent they
are imposed on cross-border trade in financial
services.
General Rules
2. As soon as practicable after a Party imposes a measure
under this Article, the Party shall:
(a) submit any current account exchange restrictions to
the IMF for review under Article VIII of the Articles
of Agreement of the IMF;
(b) enter into good faith consultations with the IMF on
economic adjustment measures to address the
fundamental underlying economic problems causing the
difficulties; and
(c) adopt or maintain economic policies consistent with
such consultations.
3. A measure adopted or maintained under this Article shall:
(a) avoid unnecessary damage to the commercial, economic
or financial interests of another Party;
(b) not be more burdensome than necessary to deal with
the balance of payments difficulties or threat
thereof;
(c) be temporary and be phased out progressively as the
balance of payments situation improves;
(d) be consistent with paragraph 2(c) and with the
Articles of Agreement of the IMF; and
(e) be applied on a national treatment or
most-favored-nation treatment basis, whichever is
better.
4. A Party may adopt or maintain a measure under this Article
that gives priority to services that are essential to its
economic program, provided that a Party may not impose a
measure for the purpose of protecting a specific industry or
sector unless the measure is consistent with paragraph 2(c) and
with Article VIII(3) of the Articles of Agreement of the IMF.
Restrictions on Transfers Other than Cross-Border Trade in
Financial Services
5. Restrictions imposed on transfers, other than on cross-
border trade in financial services:
(a) where imposed on payments for current international
transactions, shall be consistent with Article
VIII(3) of the Articles of Agreement of the IMF;
(b) where imposed on international capital transactions,
shall be consistent with Article VI of the Articles
of Agreement of the IMF and be imposed only in
conjunction with measures imposed on current
international transactions under paragraph 2(a);
(c) where imposed on transfers covered by Article 1109
(Investment - Transfers) and transfers related to
trade in goods, may not substantially impede
transfers from being made in a freely usable currency
at a market rate of exchange; and
(d) may not take the form of tariff surcharges, quotas,
licenses or similar measures.
Restrictions on Cross-Border Trade in Financial Services
6. A Party imposing a restriction on cross-border trade in
financial services:
(a) may not impose more than one measure on any transfer,
unless consistent with paragraph 2(c) and with
Article VIII(3) of the Articles of Agreement of the
IMF; and
(b) shall promptly notify and consult with the other
Parties to assess the balance of payments situation
of the Party and the measures it has adopted, taking
into account among other elements
(i) the nature and extent of the balance of payments
difficulties of the Party,
(ii) the external economic and trading environment of
the Party, and
(iii) alternative corrective measures that may be
available.
7. In consultations under paragraph 6(b), the Parties shall:
(a) consider if measures adopted under this Article
comply with paragraph 3, in particular paragraph
3(c); and
(b) accept all findings of statistical and other facts
presented by the IMF relating to foreign exchange,
monetary reserves and balance of payments, and shall
base their conclusions on the assessment by the IMF
of the balance of payments situation the Party
adopting the measures.
Article 2105: Disclosure of Information
Nothing in this Agreement shall be construed to require a
Party to furnish or allow access to information the disclosure
of which would impede law enforcement or would be contrary to
the Party's law protecting personal privacy or the financial
affairs and accounts of individual customers of financial
institutions.
Article 2106: Cultural Industries
Annex 2106 applies to the Parties specified in that Annex
with respect to cultural industries.
Article 2107: Definitions
For purposes of this Chapter:
cultural industries means persons engaged in any of the
following activities:
(a) the publication, distribution, or sale of books,
magazines, periodicals or newspapers in print or
machine readable form but not including the sole
activity of printing or typesetting any of the
foregoing;
(b) the production, distribution, sale or exhibition of
film or video recordings;
(c) the production, distribution, sale or exhibition of
audio or video music recordings;
(d) the publication, distribution or sale of music in
print or machine readable form; or
(e) radiocommunications in which the transmissions are
intended for direct reception by the general public,
and all radio, television and cable broadcasting
undertakings and all satellite programming and
broadcast network services;
international capital transactions means "international capital
transactions" as defined under the Articles of Agreement of the
IMF;
IMF means the International Monetary Fund;
payments for current international transactions means "payments
for current international transactions" as defined under the
Articles of Agreement of the IMF;
tax convention means a convention for the avoidance of double
taxation or other international taxation agreement or
arrangement;
taxes and taxation measures do not include:
(a) a "customs duty" as defined in Article 318 (Market
Access - Definitions); or
(b) the measures listed in exceptions (b), (c), (d) and
(e) of that definition; and
transfers means international transactions and related
international transfers and payments.
Annex 2103.4
Specific Taxation Measures
1. For purposes of Article 2103(4)(a) and (b), the listed tax
is the asset tax under the Asset Tax Law ("Ley del Impuesto al
Activo") of Mexico.
2. For purposes of Article 2103(4)(h), the listed tax is any
excise tax on insurance premiums adopted by Mexico to the
extent that such tax would, if levied by Canada or the United
States, be covered by Article 2103(4)(d), (e) or (f).
Annex 2103.6
Competent Authorities
For purposes of this Chapter: competent authority means
(a) in the case of Canada, the Assistant Deputy Minister
for Tax Policy, Department of Finance;
(b) in the case of Mexico, the Deputy Minister of Revenue
of the Ministry of Finance and Public Credit
("Secretar a de Hacienda y Cr dito P blico");
(c) in the case of the United States, the Assistant
Secretary of the Treasury (Tax Policy), Department of
the Treasury.
Annex 2106
Cultural Industries
Notwithstanding any other provision of this Agreement, as
between Canada and the United States, any measure adopted or
maintained with respect to cultural industries, except as
specifically provided in Article 302 (Market Access - Tariff
Elimination), and any measure of equivalent commercial effect
taken in response, shall be governed under this Agreement
exclusively in accordance with the provisions of the Canada -
United States Free Trade Agreement. The rights and obligations
between Canada and any other Party with respect to such
measures shall be identical to those applying between Canada
and the United States.
Title:Final Provisions -- Chapter 22
Author: White House
Document-Date: 29 Sept 1993
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Chapter Twenty-Two
Final Provisions
Article 2201: Annexes
The Annexes to this Agreement constitute an integral part
of this Agreement.
Article 2202: Amendments
1. The Parties may agree on any modification of or addition
to this Agreement.
2. When so agreed, and approved in accordance with the
applicable legal procedures of each Party, a modification or
addition shall constitute an integral part of this Agreement.
Article 2203: Entry into Force
This Agreement shall enter into force on January 1, 1994,
on an exchange of written notifications certifying the
completion of necessary legal procedures.
Article 2204: Accession
1. Any country or group of countries may accede to this
Agreement subject to such terms and conditions as may be agreed
between such country or countries and the Commission and
following approval in accordance with the applicable legal
procedures of each country.
2. This Agreement shall not apply as between any Party and
any acceding country or group of countries if, at the time of
accession, either does not consent to such application.
Article 2205: Withdrawal
A Party may withdraw from this Agreement six months after
it provides written notice of withdrawal to the other Parties.
If a Party withdraws, the Agreement shall remain in force for
the remaining Parties.
Article 2206: Authentic Texts
The English, French and Spanish texts of this Agreement
are equally authentic.
IN WITNESS WHEREOF, the undersigned, being duly authorized
by their respective Governments, have signed this Agreement.
:Title:NAFTA Notes
Author: White House
Document-Date: 29 Sept 1993
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NOTES
1. Article 301 (Market Access - National Treatment): "goods
of the Party" as used in paragraph 2 includes goods produced in
the state or province of that Party.
2. Article 302(1) (Tariff Elimination): this paragraph is
not intended to prevent any Party from modifying its non-NAFTA
tariffs on originating goods for which no NAFTA tariff
preference is claimed.
3. Article 302(1) (Tariff Elimination): this paragraph does
not prohibit a Party from raising a tariff back to an agreed
level in accordance with the NAFTA's phase-out schedule
following a unilateral reduction.
4. Article 302(1) and (2) (Tariff Elimination): paragraphs 1
and 2 are not intended to prevent a Party from maintaining or
increasing a customs duty as may be authorized by any dispute
settlement provision of the GATT or any agreement negotiated
under the GATT.
5. Article 303 (Restriction on Drawback and Duty Deferral):
in applying the definition of "used" in Article 415 to this
Article, the definition of "consumed" in Article 318 shall not
apply.
6. Article 305(2)(d) (Temporary Admission of Goods): where
another form of monetary security is used, it shall not be more
burdensome than the bonding requirement referred to in this
subparagraph. Where a Party uses a non-monetary form of
security, it shall not be more burdensome than existing forms
of security used by that Party.
7. Article 307(1) (Market Access - Goods Re-Entered after
Repair or Alteration): this paragraph does not cover goods
imported in bond, into foreign-trade zones or in similar
status, that are exported for repairs and are not re-imported
in bond, into foreign-trade zones or in similar status.
8. Article 307(1) (Market Access - Goods Re-Entered after
Repair or Alteration): for purposes of this paragraph,
alteration includes laundering used textile and apparel goods
and sterilizing previously sterilized textile and apparel
goods.
9. Article 318 (Market Access - Definitions): 10-digit items
set out in the Tariff Schedule of Canada are included for
statistical purposes only.
10. Article 318 (Market Access - Definitions): with respect
to the definition of "repair and alteration", an operation or
process that is part of the production or assembly of an
unfinished good into a finished good is not a repair or
alteration of the unfinished good; a component of a good is a
good that may be subject to repair or alteration.
11. Annex 300-A (Trade and Investment in the Automotive
Sector), Appendix 300-A.1 - Canada: paragraphs 1 and 2 shall
not be construed to modify the rights and obligations set out
in Chapter Ten of the Canada - United States Free Trade
Agreement, except that the NAFTA rules of origin shall replace
the Canada - United States Free Trade Agreement rules of origin
for purposes of Article 1005(1).
12. Annex 300-A (Trade and Investment in the Automotive
Sector), Appendix 300-A.2 - Mexico: citations to the Auto
Decree and the Auto Decree Implementing Regulations included in
parentheses are provided for purposes of reference only.
13. Annex 300-B (Textile and Apparel Goods) Section 1 (Scope
and Coverage): the general provisions of Chapter Two
(Definitions), Chapter Three (Market Access), Chapter Four
(Rules of Origin) and Chapter Eight (Emergency Action) are
subject to the specific rules for textiles and apparel goods
set out in the Annex.
14. Annex 300-B (Textile and Apparel Goods) Section 2 (Tariff
Elimination): with respect to paragraph 1, "as otherwise
provided in this Agreement" refers to such provisions as
Section 4, Article 802 (Global Emergency Action) and Chapter 22
(General Exceptions).
15. Annex 300-B (Textile and Apparel Goods) Sections 4 and 5 -
Bilateral Emergency Actions (Tariff Actions): for purposes of
Sections 4 and 5:
(a) "increased quantities" is intended to be interpreted
more broadly than the standard provided in Article
801(1), which considers imports "in absolute terms"
only. For purposes of these Sections, "increased
quantities" is intended to be interpreted in the same
manner as this standard is interpreted in the draft
Agreement on Textiles and Clothing, contained in the
Draft Final Act Embodying the Results of the Uruguay
Round of Multilateral Trade Negotiations (GATT
document MTN.TNC/W/FA) issued by the Director-General
of the GATT on December 20, 1991 ("Draft Uruguay
Round Agreement on Textiles and Clothing"); and
(b) "serious damage" is intended as a less stringent
standard than "serious injury" under Article 801(1).
The "serious damage" standard is drawn from the Draft
Uruguay Round Agreement on Textiles and Clothing.
The factors to be considered in determining whether
the standard has been met are set out in Section 4.2
and are also drawn from that Draft. "Serious damage"
is to be interpreted in the light of its meaning in
Annex A of the Multifiber Arrangement or any
successor agreement.
16. Annex 300-B (Textile and Apparel Goods) Section 5
(Bilateral Emergency Actions - Quantitative Restrictions): in
paragraph 5(c), the term "equitable treatment" is intended to
have the same meaning as it has in customary practice under the
Multifiber Arrangement.
17. Annex 300-B (Textile and Apparel Goods) Section 7,
paragraph 1(c) (Review and Revision of Rules of Origin): for
subheading 6212.10, the rule and paragraph 1 shall not be
applied if the Parties agree, prior to entry into force of this
Agreement, on measures to ease the administrative burden and
reduce costs associated with the application of the rule for
headings 62.06 through 62.11 to the apparel in subheading
6212.10.
18. Annex 300-B (Textile and Apparel Goods) Section 7,
paragraph (2)(d)(ii) (Review and Revision of Rules of Origin):
with respect to provisions (a) through (i) of the rule for
subheadings 6205.20 through 6205.30, prior to the entry into
force of this Agreement the Parties will extend cooperation as
necessary in an effort to encourage production in the free
trade area of shirting fabrics specifically identified in the
rule.
19. Annex 300-B (Textile and Apparel Goods), Appendix 3.1,
paragraph 17: for purposes of applying paragraph 17, the
determination of the component that determines the tariff
classification of the good shall be based on GRI 3(b) of the
Harmonized System, and if the component cannot be determined on
the basis of GRI 3(b), then the determination will be based on
GRI 3(c) or, if GRI 3(c) is inapplicable, GRI 4. When the
component that determines the tariff classification is a blend
of two or more yarns or fibers, all yarns and, where
applicable, fibers, in that component are to be considered.
20. Annex 300-B (Textile and Apparel Goods) Schedule 3.1.3.
(Conversion Factors): the conversion factors in this Schedule
are those used for imports into the United States. Canada and
Mexico may by mutual agreement develop their own conversion
factors for trade between them.
21. Article 401 (Rules of Origin - Originating Goods): the
phrase "specifically describes" is intended solely to prevent
Article 401(d) from being used to qualify a part of another
part, where the heading or subheading covers the final good,
the part made from the other part and the other part.
22. Article 402 (Rules of Origin - Regional Value Content):
(a) Article 402(4) applies to intermediate materials, and
that VNM in paragraphs 2 and 3 does not include
(i) the value of any non-originating materials used
by another producer to produce an originating
material that is subsequently acquired and used
in the production of the good by the producer of
the good, and
(ii) the value of non-originating materials used by
the producer to produce an originating self-
produced material that is designated by the
producer as an intermediate material pursuant to
Article 402(10);
(b) with respect to paragraph 4, where an originating
intermediate material is subsequently used by the
producer with non-originating materials (whether or
not produced by the producer) to produce the good,
the value of such non-originating materials shall be
included in the VNM of the good;
(c) with respect to paragraph 8, sales promotion,
marketing and after-sales service costs, royalties,
shipping and packing costs, and non-allowable
interest costs included in the value of materials
used in the production of the good are not subtracted
out of the net cost in the calculation under Article
402(3);
(d) with respect to paragraph 10, an intermediate
material used by another producer in the production
of a material that is subsequently acquired and used
by the producer of the good shall not be taken into
account in applying the proviso set out in that
paragraph, except where two or more producers
accumulate their production under Article 404;
(e) with respect to paragraph 10, if a producer
designates a self-produced material as an originating
intermediate material and the Customs Administration
of the importing Party subsequently determines that
the intermediate material is not originating, the
producer may rescind the designation and recalculate
the value content of the good accordingly; in such a
case, the producer shall retain its rights of appeal
or review with regard to the determination of the
origin of the intermediate material; and
(f) under paragraph 4, with respect to any self-produced
material that is not designated as an intermediate
material, only the value of non-originating materials
used to produce the self-produced material shall be
included in VNM of the good.
23. Article 403 (Rules of Origin - Automotive Goods):
(a) for purposes of paragraph 1, "first person in the
territory of a Party" means the first person who uses
the imported good in production or resells the
imported good; and
(b) for purposes of paragraph 2,
(i) a producer may not designate as an intermediate
material any assembly, including a component
identified in Annex 403.2, containing one or
more of the materials listed in Annex 403.2, and
(ii) a producer of a material listed in Annex 403.2
may designate a self-produced material used in
the production of that material as an
intermediate material, in accordance with the
provisions of Article 402(10).
24. Article 405(6) (Rules of Origin - De Minimis): for
purposes of applying paragraph 6, the determination of the
component that determines the tariff classification of the good
shall be based on GRI 3(b) of the Harmonized System. If the
component cannot be determined on the basis of GRI 3(b), then
the determination will be based on GRI 3(c) or, if GRI 3(c) is
inapplicable, GRI 4. When the component that determines the
tariff classification is a blend of two or more yarns or
fibers, all yarns and, where applicable, fibers, in that
component are to be taken into account.
25. Article 413 (Rules of Origin - Interpretation and
Application): the rules of origin under Chapter Four are based
on the 1992 Harmonized System, amended by the new tariff items
created for rules of origin purposes.
26. Article 415 (Rules of Origin - Definitions): the phrase
"except for the application of Article 403(1) or 403(2)(a)" in
the definition of "transaction value" is intended solely to
ensure that the determination of transaction value in the
context of Article 403(1) or (2)(a) shall not be limited to the
transaction of the producer of the good.
27. Article 514 (Customs Procedures - Definitions): the
Uniform Regulations will clarify that "determination of origin"
includes a denial of preferential tariff treatment under
Article 506(4), and that such denial is subject to review and
appeal.
28. Article 603, paragraphs 1 through 5 (Energy): these
paragraphs shall be interpreted consistently with Article 309.
29. Article 703 (Agriculture - Market Access): the most-
favored-nation rate as of July 1, 1991 is the over-quota tariff
rate specified in Annex 302.2.
30. Annex 703.2 (Agriculture - Market Access - Section A -
Mexico and the United States): this quota replaces Mexico's
current access under the "first tier" of the U.S. tariff rate
quota as described in Additional Note 3(b)(i) of Chapter 17 of
the Harmonized Tariff Schedule of the United States prior to
the date of entry into force of this Agreement.
31. Annex 703.2 (Agriculture - Market Access - Section A -
Mexico and the United States): the United States operates a
re-export program under Additional U.S. Note 3 to Chapter 17 of
the U.S. Harmonized Tariff Schedule and under 7 C.F.R. Part
1530 (subparts A and B).
32. Annex 703.2 (Agriculture - Market Access - Section B -
Canada and Mexico): the incorporation in paragraph 6 is not
intended to override the exceptions to Articles 301 and 309 set
out in Canada's and Mexico's respective Schedules to Annex
301.3.
33. Article 906(4) and (6) (Compatibility and Equivalence):
these paragraphs are not intended to restrict the right of the
importing Party to revise its measures.
34. Article 908(2) (Conformity Assessment): this paragraph
does not treat the issue of membership in the Parties'
respective conformity assessment bodies.
35. Article 915 (Standards-Related Measures - Definitions):
the definition of "standard" shall be interpreted to mean --
(a) characteristics for a good or a service,
(b) characteristics, rules or guidelines for
(i) processes or production methods relating to such
good, or
(ii) operating methods relating to such service, and
(c) provisions specifying terminology, symbols,
packaging, marking or labelling for
(i) a good or its related process or production
method, or
(ii) a service or its related operating method, for
common and repeated use, including explanatory
and other related provisions,
set out in a document approved by a standardizing body, with
which compliance is not mandatory.
36. Article 915 (Standards-Related Measures - Definitions):
the definition of "technical regulation" shall be interpreted
to mean --
(a) characteristics or their related processes and
production methods for a good,
(b) characteristics for a service or its related
operating methods, or
(c) provisions specifying terminology, symbols,
packaging, marking, or labelling for
(i) a good or its related process or production
method, or
(ii) a service or its related operating method,
set out in a document, including applicable administrative,
explanatory and other related provisions, with which compliance
is mandatory.
37. Annex 1001.2c (Government Procurement - Country Specific
Thresholds): Canada and the United States will consult
regarding this Annex before the entry into force of this
Agreement.
38. Article 1101 (Investment - Scope and Coverage): this
Chapter covers investments existing on the date of entry into
force of this Agreement as well as investments made or acquired
thereafter.
39. Article 1101(2) (Investment - Scope and Coverage) and
Annex 602.3: to the extent that a Party allows an investment
to be made in an activity set out in Annex III or Annex 602.3,
the investment shall be entitled to the protection of Chapter
Eleven (Investment).
40. Article 1106 (Investment-Performance Requirements):
Article 1106 does not preclude enforcement of any commitment,
undertaking or requirement between private parties.
41. Article 1305 (Monopolies): for purposes of this Article,
"monopoly" means an entity, including a consortium or
government agency, that in any relevant market in the territory
of a Party is maintained or designated as the sole provider of
public telecommunications transport networks or services.
42. Article 1501 (Competition Law): no investor may have
recourse to investor-state arbitration under the Investment
Chapter for any matter arising under this Article.
43. Article 1502 (Monopolies and State Enterprises): nothing
in this Article shall be construed to prevent a monopoly from
charging different prices in different geographic markets,
where such differences are based on normal commercial
considerations, such as taking account of supply and demand
conditions in those markets.
44. Article 1502(3) (Monopolies and State Enterprises): a
"delegation" includes a legislative grant, and a government
order, directive or other act transferring to the monopoly, or
authorizing the exercise by the monopoly of, governmental
authority.
45. Article 1502(3)(b) (Monopolies and State Enterprises):
differences in pricing between classes of customers, between
affiliated and non-affiliated firms, and cross-subsidization
are not in themselves inconsistent with this provision; rather,
they are subject to this subparagraph when they are used as
instruments of anticompetitive behavior by the monopoly firm.
46. Article 2005(2) (GATT Dispute Settlement): this
obligation is not intended to be subject to dispute settlement
under this Chapter.
Title:Annex 4011 - Specific Rules of Origin
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:671079
Annex 4011
Specific Rules of Origin
Section A - General Interpretative Note
For purposes of interpreting the rules of origin set out in
this Annex:
(a) the specific rule, or specific set of rules, that
applies to a particular heading, subheading or tariff
item is set out immediately adjacent to the heading,
subheading or tariff item;
(b) a rule applicable to a tariff item shall take
precedence over a rule applicable to the heading or
subheading which is parent to that tariff item;
(c) a requirement of a change in tariff classification
applies only to non-originating materials;
(d) reference to weight in the rules for goods provided
for in Chapter 1 through 24 of the Harmonized System
means dry weight unless otherwise specified in the
Harmonized System;
(e) paragraph 1 of Article 405 (De Minimis) does not
apply to:
(i) certain non-originating materials used in the
production of goods provided for in the
following tariff provisions: Chapter 4 of the
Harmonized System, heading 15.01 through 15.08,
15.12, 15.14, 15.15 or 17.01 through 17.03,
subheading 1806.10, tariff item 1901.10.aa
(infant preparations containing over 10 percent
by weight of milk solids), 1901.20.aa (mixes and
doughs, containing over 25 percent by weight of
butterfat, not put up for retail sale) or
1901.90.aa (dairy preparations containing over
10 percent by weight of milk solids), subheading
2009.11 through 2009.30 or 2009.90, heading
21.05, tariff item 2101.10.aa (instant coffee,
not flavored), 2106.90.bb (concentrated fruit or
vegetable juice of any single fruit or
vegetable, fortified with minerals or vitamins),
____________________
1 The new tariff items created for purposes of Chapter
Four are shown in the table following Section B.
2106.90.cc (concentrated mixtures of fruit or
vegetable juice, fortified with minerals or
vitamins), 2106.90.dd (preparations containing
over 10 percent by weight of milk solids),
2202.90.aa (fruit or vegetable juice of any
single fruit or vegetable, fortified with
minerals or vitamins), 2202.90.bb (mixtures of
fruit or vegetable juices, fortified with
minerals or vitamins) or 2202.90.cc (beverages
containing milk), heading 22.07 through 22.08,
tariff item 2309.90.aa (animal feeds containing
over 10 percent by weight of milk solids and
less than 6 percent by weight of grain or grain
products) or 7321.11.aa (gas stove or range),
subheading 8415.10, 8415.81 through 8415.83,
8418.10 through 8418.21, 8418.29 through
8418.40, 8421.12, 8422.11, 8450.11 through
8450.20 or 8451.21 through 8451.29, Mexican
tariff item 8479.82.aa (trash compactors),
Canadian or U.S. tariff item 8479.89.aa (trash
compactors), or tariff item 8516.60.aa (electric
stove or range),
(ii) a printed circuit assembly that is a non-
originating material used in the production of a
good where the applicable change in tariff
classification for the good places restrictions
on the use of such non-originating material, and
(iii) a non-originating material used in the
production of a good provided for in
Chapter 1 through 27 of the Harmonized
System unless the non-originating material
is provided for in a different subheading
than the good for which origin is being
determined;
(f) paragraph 6 of Article 405 (De Minimis) applies to a
good provided for in Chapter 50 through 63; and
(g) the following definitions apply:
chapter means a chapter of the Harmonized System;
heading means the first four digits in the tariff
classification number under the Harmonized System;
section means a section of the Harmonized System;
subheading means the first six digits in the tariff
classification number under the Harmonized System;
and
tariff item means the first eight digits in the
tariff classification number under the Harmonized
System as implemented by each Party.
Section B - Specific Rules of Origin
Section I - Live Animals; Animal Products (Chapter 1-5)
Chapter 1 Live Animals
01.01-01.06 A change to heading 01.01 through
01.06 from any other chapter.
Chapter 2 Meat and Edible Meat Offal
02.01-02.10 A change to heading 02.01 through
02.10 from any other chapter.
Chapter 3 Fish and Crustaceans, Molluscs and Other
Aquatic Invertebrates
03.01-03.07 A change to heading 03.01 through
03.07 from any other chapter.
Chapter 4 Dairy Produce; Birds' Eggs; Natural Honey;
Edible Products of Animal
Origin, Not Elsewhere Specified or Included
04.01-04.10 A change to heading 04.01 through
04.10 from any other chapter, except
from Canadian tariff item 1901.90.31,
U.S. tariff item 1901.90.30A,
1901.90.30B, 1901.90.30C, 1901.90.30D,
1901.90.30E, 1901.90.40A, 1901.90.40B,
1901.90.40C, 1901.90.40D, 1901.90.80A,
1901.90.80B, 1901.90.80C, 1901.90.80D,
1901.90.80E, 1901.90.80F or Mexican
tariff item 1901.90.03.
Chapter 5 Products of Animal Origin, Not Elsewhere
Specified or Included
05.01-05.11 A change to heading 05.01 through
05.11 from any other chapter.
Section II - Vegetable Products (Chapter 6-14)
Note: Agricultural and horticultural goods grown in the
territory of a Party shall be treated as originating in the
territory of that Party even if grown from seed or bulbs
imported from a non-Party.
Chapter 6 Live Trees and Other Plants; Bulbs, Roots
and the Like; Cut Flowers and Ornamental
Foliage
06.01-06.04 A change to heading 06.01 through
06.04 from any other chapter.
Chapter 7 Edible Vegetables and Certain Roots and
Tubers
07.01-07.14 A change to heading 07.01 through
07.14 from any other chapter.
Chapter 8 Edible Fruit and Nuts; Peel of Citrus Fruit
or Melons
08.01-08.14 A change to heading 08.01 through
08.14 from any other chapter.
Chapter 9 Coffee, Tea, Mat and Spices
09.01-09.10 A change to heading 09.01 through
09.10 from any other chapter.
Chapter 10 Cereals
10.01-10.08 A change to heading 10.01 through
10.08 from any other chapter.
Chapter 11 Products of the Milling Industry;
Malt; Starches; Inulin; Wheat Gluten
11.01-11.09 A change to heading 11.01 through
11.09 from any other chapter.
Chapter 12 Oil Seeds and Oleaginous Fruits;
Miscellaneous Grains, Seeds and Fruit;
Industrial or Medicinal Plants; Straw
and Fodder
12.01-12.142 A change to heading 12.01 through
12.14 from any other chapter.
Chapter 13 Lac; Gums, Resins and Other Vegetable
Saps and Extracts
13.01-13.02 A change to heading 13.01 through
13.02 from any other chapter.
Chapter 14 Vegetable Plaiting Materials;
Vegetable Products Not Elsewhere
Specified or Included
14.01-14.04 A change to heading 14.01 through
14.04 from any other chapter.
Section III - Animal or Vegetable Fats and Oils and Their
Cleavage Products; Prepared Edible Fats;
Animal or Vegetable Waxes (Chapter 15)
Chapter 15 Animal or Vegetable Fats and Oils and
Their Cleavage Products; Prepared
Edible Fats; Animal or Vegetable Waxes
15.01-15.18 A change to heading 15.01 through
15.18 from any other chapter.
2 See also Annex 703.2, Section A(10) and (11) and
Section B(9) and (10) for heading 12.02.
1519.11-1519.13 A change to subheading 1519.11 through
1519.13 from any other heading, except
from heading 15.20.
1519.19 A change to subheading 1519.19 from any
other subheading.
1519.20 A change to subheading 1519.20 from any
other heading, except from heading 15.20.
1520.10 A change to subheading 1520.10 from any
other heading, except from heading 15.19.
1520.90 A change to subheading 1520.90 from any
other subheading.
15.21-15.22 A change to heading 15.21 through
15.22 from any other chapter.
Section IV - Prepared Foodstuffs; Beverages, Spirits and
Vinegar; Tobacco and Manufactured Tobacco
Substitutes (Chapter 16-24)
Chapter 16 Preparations of Meat, of Fish or of
Crustaceans, Molluscs or Other Aquatic
Invertebrates
16.01-16.05 A change to heading 16.01 through
16.05 from any other chapter.
Chapter 17 Sugars and Sugar Confectionery
17.01-17.03 A change to heading 17.01 through
17.03 from any other chapter.
17.04 A change to heading 17.04 from any
other heading.
Chapter 18 Cocoa and Cocoa Preparations
18.01-18.05 A change to heading 18.01 through
18.05 from any other chapter.
1806.10
1806.10.aa3 A change to Canadian tariff item
1806.10.10, U.S. tariff item
1806.10.41 or 1806.10.42 or Mexican
tariff item 1806.10.01 from any other
heading.
1806.10 A change to subheading 1806.10 from any
other heading, provided that the non-
originating sugar of Chapter 17 constitutes
no more than 35 percent by weight of the
sugar and the non-originating cocoa powder
of heading 18.05 constitutes no more than
35 percent by weight of the cocoa powder.
3 See also Annex 703.2, Section A(10) and (11) and
Section B(9) and (10).
1806.20 A change to subheading 1806.20 from any
other heading.
1806.31 A change to subheading 1806.31 from any
other subheading.
1806.32 A change to subheading 1806.32 from any
other heading.
1806.90 A change to subheading 1806.90 from any
other subheading.
Chapter 19 Preparations of Cereals, Flour, Starch
or Milk; Pastrycooks' Products
1901.10
1901.10.aa A change to Canadian tariff item
1901.10.31, U.S. tariff item
1901.10.00A, 1901.10.00B, 1901.10.00C
or 1901.10.00D or Mexican tariff item
1901.10.01 from any other chapter,
except from
Chapter 4.
1901.10 A change to subheading 1901.10 from any
other chapter.
1901.20
1901.20.aa A change to Canadian tariff item
1901.20.11 or 1901.20.21, U.S. tariff
item 1901.20.00A, 1901.20.00B,
1901.20.00C, 1901.20.00D, 1901.20.00E
or 1901.20.00F or Mexican tariff item
1901.20.02 from any other chapter,
except from Chapter 4.
1901.20 A change to subheading 1901.20 from any
other chapter.
1901.90
1901.90.aa A change to Canadian tariff item
1901.90.31, U.S. tariff item
1901.90.30A, 1901.90.30B, 1901.90.30C,
1901.90.30D, 1901.90.30E, 1901.90.40A,
1901.90.40B, 1901.90.40C, 1901.90.40D,
1901.90.80A, 1901.90.80B, 1901.90.80C,
1901.90.80D, 1901.90.80E, 1901.90.80F
or 1901.90.80G or Mexican tariff item
1901.90.03 from any other chapter,
except from Chapter 4.
1901.90 A change to subheading 1901.90 from any
other chapter.
19.02-19.05 A change to heading 19.02 through
19.05 from any other chapter.
Chapter 20 Preparations of Vegetables, Fruit,
Nuts or Other Parts of Plants
Note: Fruit, nut and vegetable preparations
of Chapter 20 that have been prepared
or preserved merely by freezing, by
packing (including canning) in water,
brine or natural juices, or by
roasting, either dry or in oil
(including processing incidental to
freezing, packing, or roasting), shall
be treated as an originating good only
if the fresh good were wholly produced
or obtained entirely in the territory
of one or more of the Parties.
20.01-20.07 A change to heading 20.01 through
20.07 from any other chapter.
2008.11
2008.11.aa A change to Canadian tariff item
2008.11.20, U.S. tariff item
2008.11.00B, 2008.11.00C or
2008.11.00D or Mexican tariff item
2008.11.01 from any other heading,
except from heading 12.02.
2008.114 A change to subheading 2008.11 from any
other chapter.
2008.19-2008.99 A change to subheading 2008.19 through
2008.99 from any other chapter.
2009.11-2009.30 A change to subheading 2009.11 through
2009.30 from any other chapter, except
from heading 08.05.
2009.40-2009.80 A change to subheading 2009.40 through
2009.80 from any other chapter.
2009.90 A change to subheading 2009.90 from any
other chapter; or
A change to subheading 2009.90 from any
other subheading within Chapter 20, whether
or not there is also a change from any
____________________
4 See also Annex 703.2, Section A(10) and (11) and
Section B(9) and (10).
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.
Chapter 21 Miscellaneous Edible Preparations
21.01
2101.10.aa A change to Canadian tariff item
2101.10.11, U.S. tariff item 2101.10.20A or
Mexican tariff item 2101.10.01 from any
other chapter, provided that the non-
originating coffee of Chapter 9 constitutes
no more than 60 percent by weight of the
good.
21.01 A change to heading 21.01 from any other
chapter.
21.02 A change to heading 21.02 from any other
chapter.
2103.10 A change to subheading 2103.10 from any
other chapter.
2103.20
2103.20.aa A change to Canadian tariff item
2103.20.10, U.S. tariff item 2103.20.20 or
Mexican tariff item 2103.20.01 from any
other chapter, except from subheading
2002.90.
2103.20 A change to subheading 2103.20 from any
other chapter.
2103.30-2103.90 A change to subheading 2103.30 through
2103.90 from any other chapter.
21.04 A change to heading 21.04 from any other
chapter.
21.05 A change to heading 21.05 from any other
heading, except from Chapter 4 or Canadian
tariff item 1901.90.31, U.S. tariff item
1901.90.30A, 1901.90.30B, 1901.90.30C,
1901.90.30D, 1901.90.30E, 1901.90.40A,
1901.90.40B, 1901.90.40C, 1901.90.40D,
1901.90.80A, 1901.90.80B, 1901.90.80C,
1901.90.80D, 1901.90.80E, 1901.90.80F or
Mexican tariff item 1901.90.03.
21.06
2106.90.bb A change to Canadian tariff item
2106.90.91, U.S. tariff item 2106.90.16,
2106.90.19A, 2106.90.19B, 2106.90.19C,
2106.90.19D, 2106.90.19E, 2106.90.19F,
2106.90.19G, 2106.90.19H, 2106.90.19I or
2106.90.19J or Mexican tariff item
2106.90.06 from any other chapter, except
from heading 08.05 or 20.09 or Canadian
tariff item 2202.90.31, U.S. tariff item
2202.90.30, 2202.90.35, 2202.90.39A,
2202.90.39B, 2202.90.39C, 2202.90.39D,
2202.90.39E, 2202.90.39F, 2202.90.39G,
2202.90.39H, 2202.90.39I or 2202.90.39J or
Mexican tariff item 2202.90.02.
2106.90.cc A change to Canadian tariff item
2106.90.92, U.S. tariff item 2106.90.19K or
2106.90.19L or Mexican tariff item
2106.90.07 from any other chapter, except
from heading 20.09 or Canadian tariff item
2202.90.32, U.S. tariff item 2202.90.39K or
2202.90.39L or Mexican tariff item
2202.90.03; or
A change to Canadian tariff item
2106.90.92, U.S. tariff item 2106.90.19K or
2106.90.19L or Mexican tariff item
2106.90.07 from any other subheading within
Chapter 21, heading 20.09 or Canadian
tariff item 2202.90.32, U.S. tariff item
2202.90.39K or 2202.90.39L or Mexican
tariff item 2202.90.03, 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.
2106.90.dd A change to Canadian tariff item
2106.90.32, U.S. tariff item 2106.90.05,
2106.90.15A, 2106.90.15B, 2106.90.15C,
2106.90.15D, 2106.90.40A, 2106.90.40B,
2106.90.40C, 2106.90.40D, 2106.90.50A,
2106.90.50B, 2106.90.50C, 2106.90.50D,
2106.90.50E, 2106.90.50F or 2106.90.65A or
Mexican tariff item 2106.90.08 from any
other chapter, except from Chapter 4 or
Canadian tariff item 1901.90.31, U.S.
tariff item 1901.90.30A, 1901.90.30B,
1901.90.30C, 1901.90.30D, 1901.90.30E,
1901.90.40A, 1901.90.40B, 1901.90.40C,
1901.90.40D, 1901.90.80A, 1901.90.80B,
1901.90.80C, 1901.90.80D, 1901.90.80E,
1901.90.80F or 1901.90.81 or Mexican tariff
item 1901.90.03.
21.065 A change to heading 21.06 from any other
chapter.
Chapter 22 Beverages, Spirits and Vinegar
22.01 A change to heading 22.01 from any other
chapter.
2202.10 A change to subheading 2202.10 from any
other chapter.
2202.90
2202.90.aa A change to Canadian tariff item
2202.90.31, U.S. tariff item 2202.90.30,
2202.90.35, 2202.90.39A, 2202.90.39B,
2202.90.39C, 2202.90.39D, 2202.90.39E,
2202.90.39F, 2202.90.39G, 2202.90.39H,
2202.90.39I or 2202.90.39J or Mexican
tariff item 2202.90.02 from any other
chapter, except from heading 08.05 or 20.09
or Canadian tariff item 2106.90.91, U.S.
tariff item 2106.90.16, 2106.90.19A,
2106.90.19B, 2106.90.19C, 2106.90.19D,
2106.90.19E, 2106.90.19F, 2106.90.19G,
2106.90.19H, 2106.90.19I or 2106.90.19J or
____________________
5 See also Annex 703.2, Section A(10) and (11) and
Section B(9) and (10) for Canadian tariff item
2106.90.21, U.S. tariff item 2106.90.12 or Mexican tariff item
2106.90.05.
Mexican tariff item 2106.90.06.
2202.90.bb A change to Canadian tariff item
2202.90.32, U.S. tariff item 2202.90.39K or
2202.90.39L or Mexican tariff item
2202.90.03 from any other chapter, except
from heading 20.09 or Canadian tariff item
2106.90.92, U.S. tariff item 2106.90.19K or
2106.90.19L or Mexican tariff item
2106.90.07; or
A change to Canadian tariff item
2202.90.32, U.S. tariff item 2202.90.39K or
2202.90.39L or Mexican tariff item
2202.90.03 from any other subheading within
Chapter 22, heading 20.09 or Canadian
tariff item 2106.90.92, U.S. tariff item
2106.90.19K or 2106.90.19L or Mexican
tariff item 2106.90.07, 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.
2202.90.cc A change to Canadian tariff item
2202.90.40, U.S. tariff item 2202.90.10 or
2202.90.20 or Mexican tariff item
2202.90.04 from any other chapter, except
from Chapter 4 or Canadian tariff item
1901.90.31, U.S. tariff item 1901.90.30A,
1901.90.30B, 1901.90.30C, 1901.90.30D,
1901.90.30E, 1901.90.40A, 1901.90.40B,
1901.90.40C, 1901.90.40D, 1901.90.80A,
1901.90.80B, 1901.90.80C, 1901.90.80D,
1901.90.80E, 1901.90.80F or 1901.90.80G or
Mexican tariff item 1901.90.03.
2202.90 A change to subheading 2202.90 from any
other chapter.
22.03-22.09 A change to heading 22.03 through 22.09
from any other heading outside that group.
Chapter 23 Residues and Waste From the Food
Industries; Prepared Animal Fodder
23.01-23.08 A change to heading 23.01 through 23.08
from any other chapter.
2309.10 A change to subheading 2309.10 from any
other heading.
2309.90
2309.90.aa A change to Canadian tariff item
2309.90.32, U.S. tariff item 2309.90.30A,
2309.90.30B or 2309.90.30C or Mexican
tariff item 2309.90.10 from any other
heading, except from Chapter 4 or Canadian
tariff item 1901.90.31, U.S. tariff item
1901.90.30A, 1901.90.30B, 1901.90.30C,
1901.90.30D, 1901.90.30E, 1901.90.40A,
1901.90.40B, 1901.90.40C, 1901.90.40D,
1901.90.80A, 1901.90.80B, 1901.90.80C,
1901.90.80D, 1901.90.80E, 1901.90.80F or
1901.90.80G or Mexican tariff item
1901.90.03.
2309.90 A change to subheading 2309.90 from any
other heading.
Chapter 24 Tobacco and Manufactured Tobacco
Substitutes
24.01-24.036 A change to heading 24.01 through 24.03
from any other chapter or from Canadian
tariff item 2401.10.10 or 2403.91.10, U.S.
tariff item 2401.10.20A or 2403.91.20 or
Mexican tariff item 2401.10.01 or
2403.91.01.
6 In applying the provisions of Article 405 to goods of
heading 24.02, the reference to "seven percent" shall
be replaced with "nine percent".
Section V - Mineral Products (Chapter 25-27)
Chapter 25 Salt; Sulphur; Earths and Stone; Plastering
Materials, Lime and Cement
25.01-25.30 A change to heading 25.01 through 25.30
from any other chapter.
Chapter 26 Ores, Slag and Ash
26.01-26.21 A change to heading 26.01 through 26.21
from any other chapter.
Chapter 27 Mineral Fuels, Mineral Oils and Products of
Their Distillation; Bituminous Substances;
Mineral Waxes
27.01-27.03 A change to heading 27.01 through 27.03
from any other chapter.
27.04 A change to heading 27.04 from any other
heading.
27.05-27.09 A change to heading 27.05 through 27.09
from any other chapter.
27.10-27.15 A change to heading 27.10 through 27.15
from any other heading outside that group.
27.16 A change to heading 27.16 from any other
heading.
Section VI - Products of the Chemical or Allied
Industries (Chapter 28-38)
Chapter 28 Inorganic Chemicals; Organic or Inorganic
Compounds of Precious Metals, of Rare-Earth
Metals, of Radioactive Elements or of
Isotopes
28.01-28.24 A change to subheading 2801.10 through
2824.90 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2801.10 through
2824.90 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
2825.10-2825.60 A change to subheading 2825.10 through
2825.60 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2825.10 through
2825.60 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
2825.70 A change to subheading 2825.70 from any
other subheading, except from subheading
2613.10.
2825.80-2825.90 A change to subheading 2825.80 through
2825.90 from any other chapter, except
from Chapter 28 through 38; or
A change to subheading 2825.80 through
2825.90 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
28.26-28.29 A change to subheading 2826.11 through
2829.90 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2826.11 through
2829.90 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
2830.10-2830.30 A change to subheading 2830.10 through
2830.30 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2830.10 through
2830.30 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
2830.90 A change to subheading 2830.90 from any
other subheading, except from subheading
2613.90.
28.31-28.40 A change to subheading 2831.10 through
2840.30 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2831.10 through
2840.30 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
2841.10-2841.60 A change to subheading 2841.10 through
2841.60 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2841.10 through
2841.60 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
2841.70 A change to subheading 2841.70 from any
other subheading, except from subheading
2613.10.
2841.80-2841.90 A change to subheading 2841.80 through
2841.90 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2841.80 through
2841.90 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
28.42-28.51 A change to subheading 2842.10 through
2851.00 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2842.10 through
2851.00 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 29 Organic Chemicals
29.01-29.42 A change to subheading 2901.10 through
2942.00 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 2901.10 through
2942.00 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 30 Pharmaceutical Products
30.01 A change to subheading 3001.10 through
3001.90 from any other heading; or
A change to subheading 3001.10 through
3001.90 from any other subheading within
heading 30.01, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
30.02 A change to subheading 3002.10 through
3002.90 from any other heading; or
A change to subheading 3002.10 through
3002.90 from any other subheading within
heading 30.02, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
30.03 A change to subheading 3003.10 through
3003.90 from any other heading; or
A change to subheading 3003.10 through
3003.90 from any other subheading within
heading 30.03, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
30.04 A change to subheading 3004.10 through
3004.90 from any other heading, except from
heading 30.03; or
A change to subheading 3004.10 through
3004.90 from any other subheading within
heading 30.04, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
30.05 A change to subheading 3005.10 through
3005.90 from any other heading; or
A change to subheading 3005.10 through
3005.90 from any other subheading within
heading 30.05, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
30.06 A change to subheading 3006.10 through
3006.60 from any other heading; or
A change to subheading 3006.10 through
3006.60 from any other subheading within
heading 30.06, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 31 Fertilizers
31.01-31.05 A change to subheading 3101.00 through
3105.90 from any subheading outside that
group; or
A change to subheading 3101.00 through
3105.90 from any other subheading within
that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 32 Tanning or Dyeing Extracts; Tannins and Their
Derivatives; Dyes, Pigments and Other Colouring
Matter; Paints and Varnishes; Putty and Other
Mastics; Inks
32.01-32.03 A change to subheading 3201.10 through
3203.00 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 3201.10 through
3203.00 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3204.11-3204.16 A change to subheading 3204.11 through
3204.16 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 3204.11 through
3204.16 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3204.17 For any color, as defined under the Color
Index, identified in the following List of
Colors, a change to subheading 3204.17 from
any other subheading.
List of Colours
pigment yellow: 1, 3, 16, 55, 61, 62,
65, 73, 74, 75, 81, 97,
120, 151, 152, 154,
156, and 175
pigment orange: 4, 5, 13, 34, 36, 60,
and 62
pigment red: 2, 3, 5, 12, 13, 14, 17, 18,
19, 22, 23, 24, 31, 32, 48,
49, 52, 53, 57, 63, 112,
119, 133, 146, 170, 171,
175, 176, 183, 185, 187,
188, 208, and 210; or
For any color, as defined under the Color
Index, not identified in the List of
Colors:
(a) a change to subheading 3204.17 from
any other subheading, except from
within Chapter 29; or
(b) a change to subheading 3204.17 from
any other subheading within Chapter
29, whether or not there is also a
change from any other subheading,
provided there is a regional value
content of not less than:
(i) 60 percent where the transaction
value method is used, or
(ii) 50 percent where the net cost
method is used.
3204.19-3204.90 A change to subheading 3204.19 through
3204.90 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 3204.19 through
3204.90 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
32.05 A change to heading 32.05 from any other
heading.
32.06-32.07 A change to subheading 3206.10 through
3207.40 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 3206.10 through
3207.40 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
32.08-32.10 A change to heading 32.08 through 32.10
from any other heading outside that group.
32.11-32.12 A change to heading 32.11 through 32.12
from any other heading outside that group.
32.13-32.15 A change to heading 32.13 through 32.15
from any other heading outside that group,
except from heading 32.08 through 32.10.
Chapter 33 Essential Oils and Resinoids; Perfumery,
Cosmetic or Toilet Preparations
33.01 A change to subheading 3301.11 through
3301.90 from any other chapter; or
A change to subheading 3301.11 through
3301.90 from any other subheading within
Chapter 33, including another subheading
within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
33.02 A change to heading 33.02 from any other
heading, except from heading 22.07 through
22.08.
33.03 A change to heading 33.03 from any other
chapter; or
A change to heading 33.03 from any other
heading within Chapter 33, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
33.04-33.07 A change to subheading 3304.10 through
3307.90 from any other heading outside that
group; or
A change to subheading 3304.10 through
3307.90 from any other subheading within
that group, whether or not there is also a
change from any other heading outside that
group, provided there is a regional value
content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 34 Soap, Organic Surface-active Agents,
Washing Preparations, Lubricating
Preparations, Artificial Waxes, Prepared
Waxes, Polishing or Scouring Preparations,
Candles and Similar Articles, Modelling
Pastes, "Dental Waxes" and Dental
Preparations with a Basis of Plaster
34.01 A change to subheading 3401.11 through
3401.20 from any other heading; or
A change to subheading 3401.11 through
3401.20 from any other subheading within
heading 34.01, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3402.11-3402.19 A change to subheading 3402.11 through
3402.19 from any other heading; or
A change to subheading 3402.11 through
3402.19 from any other subheading within
heading 34.02, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3402.20-3402.90 A change to subheading 3402.20 through
3402.90 from any other subheading outside
that group; or
A change to subheading 3402.20 through
3402.90 from any other subheading within
that group, whether or not there is also a
change from any other subheading outside
that group, provided there is a regional
value content of not less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
34.03 A change to subheading 3403.11 through
3403.99 from any other heading; or
A change to subheading 3403.11 through
3403.99 from any other subheading within
heading 34.03, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
34.04 A change to subheading 3404.10 through
3404.90 from any other heading; or
A change to subheading 3404.10 through
3404.90 from any other subheading within
heading 34.04, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
34.05 A change to subheading 3405.10 through
3405.90 from any other heading; or
A change to subheading 3405.10 through
3405.90 from any other subheading within
heading 34.05, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
34.06-34.07 A change to heading 34.06 through 34.07
from any other heading, including another
heading within that group.
Chapter 35 Albuminoidal Substances; Modified Starches;
Glues; Enzymes
35.01 A change to subheading 3501.10 through
3501.90 from any other heading; or
A change to subheading 3501.10 through
3501.90 from any other subheading within
heading 35.01, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
35.02 A change to subheading 3502.10 through
3502.90 from any other heading; or
A change to subheading 3502.10 through
3502.90 from any other subheading within
heading 35.02, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
35.03-35.04 A change to heading 35.03 through 35.04
from any other heading, including another
heading within that group.
35.05 A change to subheading 3505.10 through
3505.20 from any other heading; or
A change to subheading 3505.10 through
3505.20 from any other subheading within
heading 35.05, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
35.06 A change to subheading 3506.10 through
3506.99 from any other heading; or
A change to subheading 3506.10 through
3506.99 from any other subheading within
heading 35.06, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
35.07 A change to subheading 3507.10 through
3507.90 from any other heading; or
A change to subheading 3507.10 through
3507.90 from any other subheading within
heading 35.07, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 36 Explosives; Pyrotechnic Products; Matches;
Pyrophoric Alloys; Certain Combustible
Preparations
36.01-36.03 A change to heading 36.01 through 36.03
from any other heading, including another
heading within that group.
36.04 A change to subheading 3604.10 through
3604.90 from any other heading; or
A change to subheading 3604.10 through
3604.90 from any other subheading within
heading 36.04, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
36.05 A change to heading 36.05 from any other
heading.
36.06 A change to subheading 3606.10 through
3606.90 from any other heading; or
A change to subheading 3606.10 through
3606.90 from any other subheading within
heading 36.06, whether or not there is also
a change from any other heading, provided
there is a regional value content of not
less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 37 Photographic or Cinematographic Goods
37.01-37.03 A change to heading 37.01 through 37.03
from any other chapter.
37.04 A change to heading 37.04 from any other
heading.
37.05-37.06 A change to heading 37.05 through 37.06
from any heading outside that group.
37.07 A change to subheading 3707.10 through
3707.90 from any other chapter; or
A change to subheading 3707.10 through
3707.90 from any other subheading within
Chapter 37, including another subheading
within that group, whether or not there is
also a change from any other chapter,
provided there is a regional value content
of not less than:
(a) 65 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 38 Miscellaneous Chemical Products
38.01-38.07 A change to subheading 3801.10 through
3807.00 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 3801.10 through
3807.00 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
38.08 Note: A material, imported into the territory of
a Party for use in the production of a good
classified under heading 38.08, shall be
treated as a material originating in the
territory of a Party if:
(a) such material is eligible, in the
territories of both that Party and the
Party to whose territory the good is
exported, for duty-free treatment at
the most-favored-nation rate of duty;
or
(b) the good is exported to the territory
of the United States and such material
would, if imported into the territory
of the United States, be free of duty
under a trade agreement that is not
subject to a competitive need
limitation.
A change to heading 38.08 from any other
heading, provided there is a regional value
content of not less than:
(a) 60 percent where the transaction value
method is used and the good contains
no more than one active ingredient, or
80 percent where the transaction value
method is used and the good contains
more than one active ingredient; or
(b) 50 percent where the net cost method
is used and the good contains no more
than one active ingredient, or 70
percent where the net cost method is
used and the good contains more than
one active ingredient.
38.09-38.23 A change to subheading 3809.10 through
3823.90 from any other chapter, except from
Chapter 28 through 38; or
A change to subheading 3809.10 through
3823.90 from any other subheading within
Chapter 28 through 38, including another
subheading within that group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Section VII - Plastics and Articles Thereof; Rubber and
Articles Thereof (Chapter 39-
40)
Chapter 39 Plastics and Articles Thereof
39.01-39.20 A change to heading 39.01 through 39.20
from any other heading, including another
heading within that group, provided there
is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3921.11-3921.13 A change to subheading 3921.11 through
3921.13 from any other heading, provided
there is a regional value content of not
less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3921.14 A change to subheading 3921.14 from any
other heading, except from subheading
3920.20 or 3920.71. In addition, the
regional value content must be not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3921.19 A change to subheading 3921.19 from any
other heading, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3921.90 A change to subheading 3921.90 from any
other heading, except from subheading
3920.20 or 3920.71. In addition, the
regional value content percentage must be
not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
39.22 A change to heading 39.22 from any
other heading, provided there is a
regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3923.10-3923.21 A change to subheading 3923.10 through
3923.21 from any other heading,
provided there is a regional value
content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3923.29 A change to subheading 3923.29 from any
other heading, except from subheading
3920.20 or 3920.71. In addition, the
regional value content percentage must be
not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
3923.30-3923.90 A change to subheading 3923.30 through
3923.90 from any other heading, provided
there is a regional value content of not
less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
39.24-39.26 A change to heading 39.24 through 39.26
from any other heading, including another
heading within that group, provided there
is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
Chapter 40 Rubber and Articles Thereof
40.01-40.06 A change to heading 40.01 through 40.06
from any other chapter; or
A change to heading 40.01 through 40.06
from any other heading within Chapter 40,
including another heading within that
group, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method
is used.
40.07-40.08 A change to heading 40.07 through 40.08 from
any heading outside that group.
4009.10-4009.407 A change to subheading 4009.10 through
4009.40 from any other heading, except from
heading 40.10 through 40.17.
4009.508 A change to tubes, pipes or hoses of
subheading 4009.50, of a kind for use in a
motor vehicle provided for in Canadian tariff
item 8702.10.90 or 8702.90.90, U.S. tariff
item 8702.10.00B or 8702.90.00B or Mexican
tariff item 8702.10.01, 8702.10.02,
8702.90.01, 8702.90.02 or 8702.90.03,
subheading 8703.21 through 8703.90, 8704.21
or 8704.31, or heading 87.11, from any other
heading, except from heading 40.10 through
40.17; or
A change to tubes, pipes or hoses of
subheading 4009.50, of a kind for use in a
motor vehicle provided for in Canadian tariff
item 8702.10.90 or 8702.90.90, U.S. tariff
item 8702.10.00B or 8702.90.00B or Mexican
tariff item 8702.10.01, 8702.10.02,
8702.90.01, 8702.90.02 or 8702.90.03,
____________________
7 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
8 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
subheading 8703.21 through 8703.90, 8704.21
or 8704.31, or heading 87.11, from subheading
4009.10 through 4017.00, 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 percent where the transaction method
is used, or
(b) 50 percent where the net cost method is
used; or
A change to tubes, pipes or hoses of
subheading 4009.50, other than those of a
kind for use in a motor vehicle provided for
in Canadian tariff item 8702.10.90 or
8702.90.90, U.S. tariff item 8702.10.00B or
8702.90.00B or Mexican tariff item
8702.10.01, 8702.10.02, 8702.90.01,
8702.90.02 or 8702.90.03, subheading 8703.21
through 8703.90, 8704.21 or 8704.31, or
heading 87.11, from any other heading, except
from heading 40.10 through 40.17.
40.10-40.119 A change to heading 40.10 through 40.11 from
any other heading, except from heading 40.09
through 40.17.
4012.10 A change to subheading 4012.10 from any other
subheading, except from Canadian tariff item
4012.20.20, U.S. tariff item 4012.20.20A or
4012.20.50A or Mexican tariff item
4012.20.01.
4012.20-4012.90 A change to subheading 4012.20 through
4012.90 from any other heading, except from
heading 40.09 through 40.17.
40.13-40.15 A change to heading 40.13 through 40.15 from
any other heading, except from heading 40.09
through 40.17.
4016.10-4016.92 A change to subheading 4016.10 through
4016.92 from any other heading, except from
heading 40.09 through 40.17.
9 If the good provided for in subheading 4010.10 or
heading 40.11 is for use in a motor vehicle of
Chapter 87, the provisions of Article 403 may apply.
4016.9310
4016.93.aa A change to Canadian tariff item 4016.93.10,
U.S. tariff item 4016.93.00B or Mexican
tariff item 4016.93.04 from any other
heading, except from Canadian tariff item
4008.19.10 or 4008.29.10, U.S. tariff item
4008.19.10A, 4008.19.50A, 4008.29.00A or
4008.29.00B or Mexican tariff item 4008.19.01
or 4008.29.01.
4016.93 A change to subheading 4016.93 from any other
heading, except from heading 40.09 through
40.17.
4016.94-4016.95 A change to subheading 4016.94 through
4016.95 from any other heading, except from
heading 40.09 through 40.17.
4016.9911
4016.99.aa A change to Canadian tariff item 4016.99.30,
U.S. tariff item 4016.99.25A or 4016.99.50B
or Mexican tariff item 4016.99.10 from any
other subheading, provided there is a
regional value content of not less than 50
percent under the net cost method.
4016.99 A change to subheading 4016.99 from any other
heading, except from heading 40.09 through
40.17.
40.17 A change to heading 40.17 from any other
heading, except from heading 40.09 through
40.16.
10 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
11 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
Section VIII - Raw Hides and Skins, Leather, Furskins and
Articles Thereof; Saddlery and Harness;
Travel Goods, Handbags and Similar
Containers; Articles of Animal Gut (Other
Than Silk-worm Gut) (Chapter 41-43)
Chapter 41 Raw Hides and Skins (Other Than Furskins) and
Leather
41.01-41.03 A change to heading 41.01 through 41.03 from
any other chapter.
41.04 A change to heading 41.04 from any other
heading, except from heading 41.05 through
41.11.
41.05 A change to heading 41.05 from heading 41.01
through 41.03, Canadian tariff item
4105.19.10, U.S. tariff item 4105.19.00A or
Mexican tariff item 4105.19.01, or any other
chapter.
41.06 A change to heading 41.06 from heading 41.01
through 41.03, Canadian tariff item
4106.19.10, U.S. tariff item 4106.19.00A or
Mexican tariff item 4106.19.01, or any other
chapter.
41.07 A change to heading 41.07 from heading 41.01
through 41.03, Canadian tariff item
4107.10.10, U.S. tariff item 4107.10.00B or
Mexican tariff item 4107.10.02, or any other
chapter.
41.08-41.11 A change to heading 41.08 through 41.11 from
any other heading, except from heading 41.04
through 41.11.
Chapter 42 Articles of Leather; Saddlery and Harness;
Travel Goods, Handbags and Similar
Containers; Articles of Animal Gut (Other
Than Silk-Worm Gut)
42.01 A change to heading 42.01 from any other
chapter.
4202.11 A change to subheading 4202.11 from any other
chapter.
4202.12 A change to subheading 4202.12 from any other
chapter, except from heading 54.07, 54.08 or
55.12 through 55.16.
4202.19-4202.21 A change to subheading 4202.19 through
4202.21 from any other chapter.
4202.22 A change to subheading 4202.22 from any other
chapter, except from heading 54.07, 54.08 or
55.12 through 55.16.
4202.29-4202.31 A change to subheading 4202.29 through
4202.31 from any other chapter.
4202.32 A change to subheading 4202.32 from any other
chapter, except from heading 54.07, 54.08 or
55.12 through 55.16.
4202.39-4202.91 A change to subheading 4202.39 through
4202.91 from any other chapter.
4202.92 A change to subheading 4202.92 from any other
chapter, except from heading 54.07, 54.08 or
55.12 through 55.16.
4202.99 A change to subheading 4202.99 from any other
chapter.
42.03-42.06 A change to heading 42.03 through 42.06 from
any other chapter.
Chapter 43 Furskins and Artificial Fur; Manufactures
Thereof
43.01 A change to heading 43.01 from any other
chapter.
43.02 A change to heading 43.02 from any other
heading.
43.03-43.04 A change to heading 43.03 through 43.04 from
any heading outside that group.
Section IX - Wood and Articles of Wood; Wood Charcoal;
Cork and Articles of Cork; Manufactures of
Straw, of Esparto or of Other Plaiting
Materials; Basketware and Wickerwork (Chapter
44-46)
Chapter 44 Wood and Articles of Wood; Wood Charcoal
44.01-44.21 A change to heading 44.01 through 44.21 from
any other heading, including another heading
within that group.
Chapter 45 Cork and Articles of Cork
45.01-45.02 A change to heading 45.01 through 45.02 from
any other chapter.
45.03-45.04 A change to heading 45.03 through 45.04 from
any heading outside that group.
Chapter 46 Manufactures of Straw, of Esparto or of Other
Plaiting Materials; Basketware and Wickerwork
46.01 A change to heading 46.01 from any other
chapter.
46.02 A change to heading 46.02 from any other
heading.
Section X - Pulp of Wood or of other Fibrous Cellulosic
Material; Waste and Scrap of Paper or Paperboard;
Paper and Paperboard and Articles Thereof (Chapter
47-49)
Chapter 47 Pulp of Wood or of Other Fibrous Cellulosic
Material; Waste and Scrap of Paper or
Paperboard
47.01-47.07 A change to heading 47.01 through 47.07 from
any other chapter.
Chapter 48 Paper and Paperboard; Articles of Paper Pulp, of
Paper or of Paperboard
48.01-48.07 A change to heading 48.01 through 48.07 from
any other chapter.
48.08-48.09 A change to heading 48.08 through 48.09 from
any heading outside that group.
48.10-48.13 A change to heading 48.10 through 48.13 from
any other chapter.
48.14-48.15 A change to heading 48.14 through 48.15 from
any heading outside that group.
48.16 A change to heading 48.16 from any other
heading, except from heading 48.09.
48.17-48.23 A change to heading 48.17 through 48.23 from
any heading outside that group.
Chapter 49 Printed Books, Newspapers, Pictures and Other
Products of the Printing Industry;
Manuscripts, Typescripts and Plans
49.01-49.11 A change to heading 49.01 through 49.11 from
any other chapter.
Section XI - Textiles and Textile Articles (Chapter 50-63)
Note: The textile and apparel rules should be read in
conjunction with Annex 300-B (Textile and Apparel
Goods). For purposes of these rules, the term "wholly"
means that the good is made entirely or solely of the
named material.
Chapter 50 Silk
50.01-50.03 A change to heading 50.01 through 50.03 from
any other chapter.
50.04-50.06 A change to heading 50.04 through 50.06 from
any heading outside that group.
50.07 A change to heading 50.07 from any
other heading.
Chapter 51 Wool, Fine or Coarse Animal Hair; Horsehair Yarn
and Woven Fabric
51.01-51.05 A change to heading 51.01 through 51.05 from
any other chapter.
51.06-51.10 A change to heading 51.06 through 51.10 from
any heading outside that group.
51.11-51.13 A change to heading 51.11 through 51.13 from
any heading outside that group, except from
heading 51.06 through 51.10, 52.05 through
52.06, 54.01 through 54.04 or 55.09 through
55.10.
Chapter 52 Cotton
52.01-52.07 A change to heading 52.01 through 52.07 from
any other chapter, except from heading 54.01
through 54.05 or 55.01 through 55.07.
52.08-52.12 A change to heading 52.08 through 52.12 from
any heading outside that group, except from
heading 51.06 through 51.10, 52.05 through
52.06, 54.01 through 54.04 or 55.09 through
55.10.
Chapter 53 Other Vegetable Textile Fibers; Paper Yarn
and Woven Fabrics of Paper Yarn
53.01-53.05 A change to heading 53.01 through 53.05 from
any other chapter.
53.06-53.08 A change to heading 53.06 through 53.08 from
any heading outside that group.
53.09 A change to heading 53.09 from any other
heading, except from heading 53.07 through
53.08.
53.10-53.11 A change to heading 53.10 through 53.11 from
any heading outside that group, except from
heading 53.07 through 53.08.
Chapter 54 Man-Made Filaments
54.01-54.06 A change to heading 54.01 through 54.06 from
any other chapter, except from heading 52.01
through 52.03 or 55.01 through 55.07.
54.07
5407.60.aa A change to Canadian tariff item 5407.60.10,
U.S. tariff item 5407.60.05A, 5407.60.10A or
5407.60.20A or Mexican tariff item 5407.60.02
from Canadian tariff item 5402.43.10 or
5402.52.10, U.S. tariff item 5402.43.00A or
5402.52.00A, Mexican tariff item 5402.43.01
or 5402.52.02 or any other chapter, except
from heading 51.06 through 51.10, 52.05
through 52.06 or 55.09 through 55.10.
54.07 A change to heading 54.07 from any other
chapter, except from heading 51.06 through
51.10, 52.05 through 52.06 or 55.09 through
55.10.
54.08 A change to heading 54.08 from any other
chapter, except from heading 51.06 through
51.10, 52.05 through 52.06 or 55.09 through
55.10.
Chapter 55 Man-Made Staple Fibers
55.01-55.11 A change to heading 55.01 through 55.11 from
any other chapter, except from heading 52.01
through 52.03 or 54.01 through 54.05.
55.12-55.16 A change to heading 55.12 through 55.16 from
any heading outside that group, except from
heading 51.06 through 51.10, 52.05 through
52.06, 54.01 through 54.04 or 55.09 through
55.10.
Chapter 56 Wadding, Felt and Nonwovens; Special Yarns; Twine,
Cordage, Ropes and Cables and Articles Thereof
56.01-56.09 A change to heading 56.01 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.
Chapter 5712 Carpets and Other Textile Floor Coverings
57.01-57.05 A change to heading 57.01 through 57.05 from
any other chapter, except from heading 51.06
through 51.13, 52.04 through 52.12, 53.08 or
53.11, Chapter 54, or heading 55.08 through
55.16.
Chapter 58 Special Woven Fabrics; Tufted Textile
Fabrics; Lace; Tapestries; Trimmings;
Embroidery
58.01-58.11 A change to heading 58.01 through 58.11 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.
Chapter 59 Impregnated, Coated, Covered or Laminated
Textile Fabrics; Textile Articles of a Kind
Suitable For Industrial Use
59.01 A change to heading 59.01 from any other
chapter, except from heading 51.11 through
51.13, 52.08 through 52.12, 53.10 through
53.11, 54.07 through 54.08 or 55.12 through
55.16.
59.02 A change to heading 59.02 from any other
heading, except from heading 51.06 through
51.13, 52.04 through 52.12 or 53.06 through
53.11, or Chapter 54 through 55.
59.03-59.08 A change to heading 59.03 through 59.08 from
any other chapter, except from heading 51.11
through 51.13, 52.08 through 52.12, 53.10
through 53.11, 54.07 through 54.08 or 55.12
through 55.16.
59.09 A change to heading 59.09 from any other
chapter, except from heading 51.11 through
51.13, 52.08 through 52.12 or 53.10 through
____________________
12 See also Annex 300-B (Textile and Apparel Goods),
Appendix 6(A).
53.11, Chapter 54, or heading 55.12 through
55.16.
59.10 A change to heading 59.10 from any other
heading, 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.
59.11 A change to heading 59.11 from any other
chapter, except from heading 51.11 through
51.13, 52.08 through 52.12, 53.10 through
53.11, 54.07 through 54.08 or 55.12 through
55.16.
Chapter 60 Knitted or Crocheted Fabrics
60.01-60.02 A change to heading 60.01 through 60.02 from
any other chapter, except from heading 51.06
through 51.13, Chapter 52, heading 53.07
through 53.08 or 53.10 through 53.11, or
Chapter 54 through 55.
Chapter 6113 Articles of Apparel and Clothing Accessories,
Knitted or Crocheted
Note 1: A change to any of the following headings or
subheadings for visible lining fabrics:
51.11 through 51.12, 5208.31 through
5208.59, 5209.31 through 5209.59,
5210.31 through 5210.59, 5211.31 through
5211.59, 5212.13 through 5212.15,
5212.23 through 5212.25, 5407.42 through
5407.44, 5407.52 through 5407.54,
5407.60, 5407.72 through 5407.74,
5407.82 through 5407.84, 5407.92 through
5407.94, 5408.22 through 5408.24
(excluding Canadian tariff item
5408.22.10, 5408.23.10 or 5408.24.10,
U.S. tariff item 5408.22.00A,
5408.23.10A, 5408.23.20A or 5408.24.00A,
Mexican tariff item 5408.22.04,
5408.23.05 or 5408.24.01), 5408.32
through 5408.34, 5512.19, 5512.29,
5512.99, 5513.21 through 5513.49,
5514.21 through 5515.99, 5516.12 through
5516.14, 5516.22 through 5516.24,
5516.32 through 5516.34, 5516.42 through
5516.44, 5516.92 through 5516.94,
6001.10, 6001.92, 6002.43 or 6002.91
through 6002.93,
from any other heading outside that group.
Note 2: For purposes of determining the origin of a
good of this Chapter, the rule applicable to
that good shall only apply to the component
that determines the tariff classification of
____________________
13 See also Annex 300-B (Textile and Apparel Goods),
Appendix 6(A).
the good and such component must satisfy the
tariff change requirements set out in the
rule for that good. If the rule requires
that the good must also satisfy the tariff
change requirements for visible lining
fabrics listed in Note 1 to this Chapter,
such requirement shall only apply to the
visible lining fabric in the main body of the
garment, excluding sleeves, which covers the
largest surface area, and shall not apply to
removable linings.
6101.10-6101.30 A change to subheading 6101.10 through
6101.30 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6101.90 A change to subheading 6101.90 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6102.10-6102.30 A change to subheading 6102.10 through
6102.30 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6102.90 A change to subheading 6102.90 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6103.11-6103.12 A change to subheading 6103.11 through
6103.12 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6103.19
6103.19.aa A change to Canadian tariff item 6103.19.90,
U.S. tariff item 6103.19.40 or Mexican tariff
item 6103.19.02 or 6103.19.99 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6103.19 A change to subheading 6103.19 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6103.21-6103.29 A change to subheading 6103.21 through
6103.29 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) with respect to a garment described in
heading 61.01 or a jacket or a blazer
described in heading 61.03, of wool,
fine animal hair, cotton or man-made
fibers, imported as part of an ensemble
of these subheadings, the visible lining
fabric listed in Note 1 to Chapter 61
satisfies the tariff change requirements
provided therein.
6103.31-6103.33 A change to subheading 6103.31 through
6103.33 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6103.39
6103.39.aa A change to Canadian tariff item 6103.39.90,
U.S. tariff item 6103.39.20 or Mexican tariff
item 6103.39.02 or 6103.39.99 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6103.39 A change to subheading 6103.39 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6103.41-6103.49 A change to subheading 6103.41 through
6103.49 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6104.11-6104.13 A change to subheading 6104.11 through
6104.13 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6104.19
6104.19.aa A change to Canadian tariff item 6104.19.90,
U.S. tariff item 6104.19.20 or Mexican tariff
item 6104.19.02 or 6104.19.99 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6104.19 A change to subheading 6104.19 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6104.21-6104.29 A change to subheading 6104.21 through
6104.29 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) with respect to a garment described in
heading 61.02, a jacket or a blazer
described in heading 61.04, or a skirt
described in heading 61.04, of wool,
fine animal hair, cotton or man-made
fibers, imported as part of an ensemble
of these subheadings, the visible lining
fabric listed in Note 1 to Chapter 61
satisfies the tariff change requirements
provided therein.
6104.31-6104.33 A change to subheading 6104.31 through
6104.33 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6104.39
6104.39.aa A change to Canadian tariff item 6104.39.90,
U.S. tariff item 6104.39.20 or Mexican tariff
item 6104.39.02 or 6104.39.99 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6104.39 A change to subheading 6104.39 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6104.41-6104.49 A change to subheading 6104.41 through
6104.49 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6104.51-6104.53 A change to subheading 6104.51 through
6104.53 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6104.59
6104.59.aa A change to Canadian tariff item 6104.59.90,
U.S. tariff item 6104.59.20 or Mexican tariff
item 6104.59.02 or 6104.59.99 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6104.59 A change to subheading 6104.59 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) the visible lining fabric listed in Note
1 to Chapter 61 satisfies the tariff
change requirements provided therein.
6104.61-6104.69 A change to subheading 6104.61 through
6104.69 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
61.05-61.06 A change to heading 61.05 through 61.06 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, or heading 55.08 through 55.16 or 60.01
through 60.02, provided that the good is both
cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6107.11-6107.19 A change to subheading 6107.11 through
6107.19 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6107.21 A change to subheading 6107.21 from:
(a) Canadian tariff item 6002.92.10, U.S.
tariff item 6002.92.00A or Mexican
tariff item 6002.92.01, provided that
the good, exclusive of collar, cuffs,
waistband or elastic, is wholly of such
fabric and the good is both cut and sewn
or otherwise assembled in the territory
of one or more of the Parties, or
(b) 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, or heading
55.08 through 55.16 or 60.01 through
60.02, provided that the good is both
cut (or knit to shape) and sewn or
otherwise assembled in the territory of
one or more of the Parties.
6107.22-6107.99 A change to subheading 6107.22 through
6107.99 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6108.11-6108.19 A change to subheading 6108.11 through
6108.19 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6108.21 A change to subheading 6108.21 from:
(a) Canadian tariff item 6002.92.10, U.S.
tariff item 6002.92.00A or Mexican
tariff item 6002.92.01, provided that
the good, exclusive of waistband,
elastic or lace, is wholly of such
fabric and the good is both cut and sewn
or otherwise assembled in the territory
of one or more of the Parties, or
(b) 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, or heading
55.08 through 55.16 or 60.01 through
60.02, provided that the good is both
cut (or knit to shape) and sewn or
otherwise assembled in the territory of
one or more of the Parties.
6108.22-6108.29 A change to subheading 6108.22 through
6108.29 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6108.31 A change to subheading 6108.31 from:
(a) Canadian tariff item 6002.92.10, U.S.
tariff item 6002.92.00A or Mexican
tariff item 6002.92.01, provided that
the good, exclusive of collar, cuffs,
waistband, elastic or lace, is wholly of
such fabric and the good is both cut and
sewn or otherwise assembled in the
territory of one or more of the Parties,
or
(b) 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, or heading
55.08 through 55.16 or 60.01 through
60.02, provided that the good is both
cut (or knit to shape) and sewn or
otherwise assembled in the territory of
one or more of the Parties.
6108.32-6108.39 A change to subheading 6108.32 through
6108.39 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6108.91-6108.99 A change to subheading 6108.91 through
6108.99 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
61.09-61.11 A change to heading 61.09 through 61.11 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, or heading 55.08 through 55.16 or 60.01
through 60.02, provided that the good is both
cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6112.11-6112.19 A change to subheading 6112.11 through
6112.19 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6112.20 A change to subheading 6112.20 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, or
heading 55.08 through 55.16 or 60.01 through
60.02, provided that:
(a) the good is both cut (or knit to shape)
and sewn or otherwise assembled in the
territory of one or more of the Parties,
and
(b) with respect to a garment described in
heading 61.01, 61.02, 62.01 or 62.02, of
wool, fine animal hair, cotton or man-
made fibers, imported as part of a ski-
suit of this subheading, the visible
lining fabric listed in Note 1 to
Chapter 61 satisfies the tariff change
requirements provided therein.
6112.31-6112.49 A change to subheading 6112.31 through
6112.49 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, or heading 55.08 through
55.16 or 60.01 through 60.02, provided that
the good is both cut (or knit to shape) and
sewn or otherwise assembled in the territory
of one or more of the Parties.
61.13-61.17 A change to heading 61.13 through 61.17 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, or heading 55.08 through 55.16 or 60.01
through 60.02, provided that the good is both
cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or more of
the Parties.
Chapter 62 Articles of Apparel and Clothing Accessories,
Not Knitted or Crocheted
Note 1: A change to any of the following headings or
subheadings for visible lining fabrics:
51.11 through 51.12, 5208.31 through
5208.59, 5209.31 through 5209.59,
5210.31 through 5210.59, 5211.31 through
5211.59, 5212.13 through 5212.15,
5212.23 through 5212.25, 5407.42 through
5407.44, 5407.52 through 5407.54,
5407.60, 5407.72 through 5407.74,
5407.82 through 5407.84, 5407.92 through
5407.94, 5408.22 through 5408.24
(excluding Canadian tariff item
5408.22.10, 5408.23.10 or 5408.24.10,
U.S. tariff item 5408.22.00A,
5408.23.10A, 5408.23.20A or 5408.24.00A
or Mexican tariff item 5408.22.04,
5408.23.05 or 5408.24.01), 5408.32
through 5408.34, 5512.19, 5512.29,
5512.99, 5513.21 through 5513.49,
5514.21 through 5515.99, 5516.12 through
5516.14, 5516.22 through 5516.24,
5516.32 through 5516.34, 5516.42 through
5516.44, 5516.92 through 5516.94,
6001.10, 6001.92, 6002.43 or 6002.91
through 6002.93,
from any other heading outside that group.
Note 2: Apparel goods of this Chapter shall be
considered to originate if they are both cut
and sewn or otherwise assembled in the
territory of one or more of the Parties and
if the fabric of the outer shell, exclusive
of collars or cuffs, is wholly of one or more
of the following:
(a) Velveteen fabrics of subheading 5801.23,
containing 85 per cent or more by weight
of cotton;
(b) Corduroy fabrics of subheading 5801.22,
containing 85 per cent or more by weight
of cotton and containing more than 7.5
wales per centimeter;
(c) Fabrics of subheading 5111.11 or
5111.19, if hand-woven, with a loom
width of less than 76 cm, woven in the
United Kingdom in accordance with the
rules and regulations of the Harris
Tweed Association, Ltd., and so
certified by the Association;
(d) Fabrics of subheading 5112.30, weighing
not more than 340 grams per square
meter, containing wool, not less than 20
per cent by weight of fine animal hair
and not less than 15 per cent by weight
of man-made staple fibers; or
(e) Batiste fabrics of subheading 5513.11 or
5513.21, of square construction, of
single yarns exceeding 76 metric count,
containing between 60 and 70 warp ends
and filling picks per square centimeter,
of a weight not exceeding 110 grams per
square meter.
Note 3: For purposes of determining the origin of a
good of this Chapter, the rule applicable to
that good shall only apply to the component
that determines the tariff classification of
the good and such component must satisfy the
tariff change requirements set out in the
rule for that good. If the rule requires
that the good must also satisfy the tariff
change requirements for visible lining
fabrics listed in Note 1 to this Chapter,
such requirement shall only apply to the
visible lining fabric in the main body of the
garment, excluding sleeves, which covers the
largest surface area, and shall not apply to
removable linings.
6201.11-6201.13 A change to subheading 6201.11 through
6201.13 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6201.19 A change to subheading 6201.19 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6201.91-6201.93 A change to subheading 6201.91 through
6201.93 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6201.99 A change to subheading 6201.99 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6202.11-6202.13 A change to subheading 6202.11 through
6202.13 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6202.19 A change to subheading 6202.19 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6202.91-6202.93 A change to subheading 6202.91 through
6202.93 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6202.99 A change to subheading 6202.99 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6203.11-6203.12 A change to subheading 6203.11 through
6203.12 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6203.19
6203.19.aa A change to Canadian tariff item 6203.19.90,
U.S. tariff item 6203.19.40 or Mexican tariff
item 6203.19.02 or 6203.19.99 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6203.19 A change to subheading 6203.19 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6203.21-6203.29 A change to subheading 6203.21 through
6203.29 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) with respect to a garment described in
heading 62.01 or a jacket or a blazer
described in heading 62.03, of wool,
fine animal hair, cotton or man-made
fibers, imported as part of an ensemble
of these subheadings, the visible lining
fabric listed in Note 1 to Chapter 62
satisfies the tariff change requirements
provided therein.
6203.31-6203.33 A change to subheading 6203.31 through
6203.33 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6203.39
6203.39.aa A change to Canadian tariff item 6203.39.90,
U.S. tariff item 6203.39.40 or Mexican tariff
item 6203.39.02 or 6203.39.99 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6203.39 A change to subheading 6203.39 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6203.41-6203.49 A change to subheading 6203.41 through
6203.49 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6204.11-6204.13 A change to subheading 6204.11 through
6204.13 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6204.19
6204.19.aa A change to Canadian tariff item 6204.19.90,
U.S. tariff item 6204.19.30 or Mexican tariff
item 6204.19.02 or 6204.19.99 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6204.19 A change to subheading 6204.19 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6204.21-6204.29 A change to subheading 6204.21 through
6204.29 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) with respect to a garment described in
heading 62.02, a jacket or a blazer
described in heading 62.04, or a skirt
described in heading 62.04, of wool,
fine animal hair, cotton or man-made
fibers, imported as part of an ensemble
of these subheadings, the visible lining
fabric listed in Note 1 to Chapter 62
satisfies the tariff change requirements
provided therein.
6204.31-6204.33 A change to subheading 6204.31 through
6204.33 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6204.39
6204.39.aa A change to Canadian tariff item 6204.39.90,
U.S. tariff item 6204.39.60 or 6204.39.80 or
Mexican tariff item 6204.39.02 or 6204.39.99
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, or heading 55.08 through 55.16,
58.01 through 58.02 or 60.01 through 60.02,
provided that the good is both cut and sewn
or otherwise assembled in the territory of
one or more of the Parties.
6204.39 A change to subheading 6204.39 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6204.41-6204.49 A change to subheading 6204.41 through
6204.49 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6204.51-6204.53 A change to subheading 6204.51 through
6204.53 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6204.59
6204.59.aa A change to Canadian tariff item 6204.59.90,
U.S. tariff item 6204.59.40 or Mexican tariff
item 6204.59.02 or 6204.59.99 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6204.59 A change to subheading 6204.59 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) the visible lining fabric listed in Note
1 to Chapter 62 satisfies the tariff
change requirements provided therein.
6204.61-6204.69 A change to subheading 6204.61 through
6204.69 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6205.10 A change to subheading 6205.10 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
6205.20-6205.30
Note: Men's or boys' shirts of cotton or man-made
fibers shall be considered to originate if
they are both cut and assembled in the
territory of one or more of the Parties and
if the fabric of the outer shell, exclusive
of collars or cuffs, is wholly of one or more
of the following:
(a) Fabrics of subheading 5208.21, 5208.22,
5208.29, 5208.31, 5208.32, 5208.39,
5208.41, 5208.42, 5208.49, 5208.51,
5208.52 or 5208.59, of average yarn
number14 exceeding 135 metric;
(b) Fabrics of subheading 5513.11 or
5513.21, not of square construction,
containing more than 70 warp ends and
filling picks per square centimeter, of
average yarn number exceeding 70 metric;
(c) Fabrics of subheading 5210.21 or
5210.31, not of square construction,
containing more than 70 warp ends and
filling picks per square centimeter, of
average yarn number exceeding 70 metric;
(d) Fabrics of subheading 5208.22 or
5208.32, not of square construction,
containing more than 75 warp ends and
filling picks per square centimeter, of
average yarn number exceeding 65 metric;
(e) Fabrics of subheading 5407.81, 5407.82
or 5407.83, weighing less than 170 grams
per square meter, having a dobby weave
created by a dobby attachment;
(f) Fabrics of subheading 5208.42 or
5208.49, not of square construction,
containing more than 85 warp ends and
filling picks per square centimeter, of
average yarn number exceeding 85 metric;
____________________
14 For definition of "average yarn number" see Annex 300-
B, Section 10.
(g) Fabrics of subheading 5208.51, of square
construction, containing more than 75
warp ends and filling picks per square
centimeter, made with single yarns, of
average yarn number 95 or greater
metric;
(h) Fabrics of subheading 5208.41, of square
construction, with a gingham pattern,
containing more than 85 warp ends and
filling picks per square centimeter,
made with single yarns, of average yarn
number 95 or greater metric, and
characterized by a check effect produced
by the variation in color of the yarns
in the warp and filling; or
(i) Fabrics of subheading 5208.41, with the
warp colored with vegetable dyes, and
the filling yarns white or colored with
vegetable dyes, of average yarn number
greater than 65 metric.
A change to subheading 6205.20 through
6205.30 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6205.90 A change to subheading 6205.90 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that
the good is both cut and sewn or otherwise
assembled in the territory of one or more of
the Parties.
62.06-62.10 A change to heading 62.06 through 62.10 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, or heading 55.08 through 55.16, 58.01
through 58.02 or 60.01 through 60.02,
provided that the good is both cut and sewn
or otherwise assembled in the territory of
one or more of the Parties.
6211.11-6211.12 A change to subheading 6211.11 through
6211.12 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6211.20 A change to subheading 6211.20 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, or
heading 55.08 through 55.16, 58.01 through
58.02 or 60.01 through 60.02, provided that:
(a) the good is both cut and sewn or
otherwise assembled in the territory of
one or more of the Parties, and
(b) with respect to a garment described in
heading 61.01, 61.02, 62.01 or 62.02, of
wool, fine animal hair, cotton or man-
made fibers, imported as part of a ski-
suit of this subheading, the visible
lining fabric listed in Note 1 to
Chapter 62 satisfies the tariff change
requirements provided therein.
6211.31-6211.49 A change to subheading 6211.31 through
6211.49 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and
sewn or otherwise assembled in the territory
of one or more of the Parties.
6212.10 A change to subheading 6212.10 from any other
chapter, provided that the good is both cut
and sewn or otherwise assembled in the
territory of one or more of the Parties.
6212.20-6212.90 A change to subheading 6212.20 through
6212.90 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, or heading 55.08 through
55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and
sewn or otherwise assembled in the territory
of one or more of the Parties.
62.13-62.17 A change to heading 62.13 through 62.17 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, or heading 55.08 through 55.16, 58.01
through 58.02 or 60.01 through 60.02,
provided that the good is both cut and sewn
or otherwise assembled in the territory of
one or more of the Parties.
Chapter 63 Other Made Up Textile Articles; Sets; Worn
Clothing and Worn Textile Articles; Rags
Note 1: For purposes of determining the origin of a
good of this Chapter, the rule applicable to
that good shall only apply to the component
that determines the tariff classification of
the good and such component must satisfy the
tariff change requirements set out in the
rule for that good.
63.01-63.02 A change to heading 63.01 through 63.02 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 through 55, or heading 58.01 through 58.02
or 60.01 through 60.02, provided that the
good is both cut (or knit to shape) and sewn
or otherwise assembled in the territory of
one or more of the Parties.
63.03
6303.92.aa A change to Canadian tariff item 6303.92.10,
U.S. tariff item 6303.92.00A or 6303.92.00B
or Mexican tariff item 6303.92.01 from
Canadian tariff item 5402.43.10 or
5402.52.10, U.S. tariff item 5402.43.00A or
5402.52.00A or Mexican tariff item 5402.43.01
or 5402.52.02 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, Chapter 54 through 55, or
heading 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and
sewn or otherwise assembled in the territory
of one or more of the Parties.
63.03 A change to heading 63.03 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
through 55, or heading 58.01 through 58.02 or
60.01 through 60.02, provided that the good
is both cut (or knit to shape) and sewn or
otherwise assembled in the territory of one
or more of the Parties.
63.04-63.10 A change to heading 63.04 through 63.10 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 through 55, or heading 58.01 through 58.02
or 60.01 through 60.02, provided that the
good is both cut (or knit to shape) and sewn
or otherwise assembled in the territory of
one or more of the Parties.
Section XII - Footwear, Headgear, Umbrellas, Sun Umbrellas,
Walking-Sticks, Seat-Sticks, Whips, Riding-
Crops and Parts Thereof; Prepared Feathers
and Articles Made Therewith; Artificial
Flowers; Articles of Human Hair (Chapter 64-
67)
Chapter 64 Footwear, Gaiters and the Like; Parts of Such
Articles
64.01-64.05 A change to heading 64.01 through 64.05 from
any heading outside that group, except from
subheading 6406.10, provided there is a
regional value content of not less than 55
percent under the net cost method.
6406.10 A change to subheading 6406.10 from any other
subheading, except from heading 64.01 through
64.05, provided there is a regional value
content of not less than 55 percent under the
net cost method.
6406.20-6406.99 A change to subheading 6406.20 through
6406.99 from any other chapter.
Chapter 65 Headgear and Parts Thereof
65.01-65.02 A change to heading 65.01 through 65.02 from
any other chapter.
65.03-65.07 A change to heading 65.03 through 65.07 from
any heading outside that group.
Chapter 66 Umbrellas, Sun Umbrellas, Walking-Sticks,
Seat-Sticks, Whips, Riding-Crops and Parts
Thereof
66.01 A change to heading 66.01 from any other
heading, except from a combination of both:
(a) subheading 6603.20; and
(b) heading 39.20 through 39.21, 50.07,
51.11 through 51.13, 52.08 through
52.12, 53.09 through 53.11, 54.07
through 54.08, 55.12 through 55.16,
56.02 through 56.03, 58.01 through
58.11, 59.01 through 59.11, 60.01
through 60.02.
66.02 A change to heading 66.02 from any other
heading.
66.03 A change to heading 66.03 from any other
chapter.
Chapter 67 Prepared Feathers and Down and Articles Made of
Feathers or of Down; Artificial Flowers; Articles
of Human Hair
67.01
6701.00.aa A change to Canadian tariff item 6701.00.10,
U.S. tariff item 6701.00.00A or Mexican
tariff item 6701.00.01 or 6701.00.02 from any
other tariff item.
67.01 A change to heading 67.01 from any other
chapter.
67.02 A change to heading 67.02 from any other
heading.
67.03 A change to heading 67.03 from any other
chapter.
67.04 A change to heading 67.04 from any other
heading.
Section XIII - Articles of Stone, Plaster, Cement, Asbestos,
Mica or Similar Materials; Ceramic Products;
Glass and Glassware (Chapter 68-70)
Chapter 68 Articles of Stone, Plaster, Cement, Asbestos, Mica
or Similar Materials
68.01-68.11 A change to heading 68.01 through 68.11 from
any other chapter.
6812.10 A change to subheading 6812.10 from any other
chapter.
6812.20 A change to subheading 6812.20 from any other
subheading.
6812.30-6812.40 A change to subheading 6812.30 through
6812.40 from other subheading outside that
group.
6812.50 A change to subheading 6812.50 from any other
subheading.
6812.60-6812.90 A change to subheading 6812.60 through
6812.90 from any subheading outside that
group.
68.13 A change to heading 68.13 from any other
heading.
68.14-68.15 A change to heading 68.14 through 68.15 from
any other chapter.
Chapter 69 Ceramic Products
69.01-69.14 A change to heading 69.01 through 69.14 from
any other chapter.
Chapter 70 Glass and Glassware
70.01-70.02 A change to heading 70.01 through 70.02 from
any other chapter.
70.03-70.0915 A change to heading 70.03 through 70.09 from
any heading outside that group.
70.10-70.20 A change to heading 70.10 through 70.20 from
any other heading, except from heading 70.07
through 70.20.
15 If the good provided for in subheading 7007.11,
7007.21 or 7009.10 is for use in a motor vehicle of
Chapter 87, the provisions of Article 403 may apply.
Section XIV - Natural or Cultured Pearls, Precious or Semi-
precious Stones, Precious Metals, Metals Clad
with Precious Metal, and Articles Thereof;
Imitation Jewellery; Coin (Chapter 71)
Chapter 71 Natural or Cultured Pearls, Precious or Semi-
Precious Stones, Precious Metals, Metals Clad with
Precious Metal, and Articles Thereof; Imitation
Jewellery; Coin (Chapter 71)
71.01-71.12 A change to heading 71.01 through 71.12 from
any other chapter.
71.13-71.18 Note: Pearls, temporarily or permanently
strung but without the addition of
clasps or other ornamental features
of precious metals or stones, shall
be treated as an originating good
only if the pearls were obtained in
the territory of one or more of the
Parties.
A change to heading 71.13 through 71.18 from
any heading outside that group.
Section XV - Base Metals and Articles of Base Metal
(Chapter 72-83)
Chapter 72 Iron and Steel
72.01 A change to heading 72.01 from any other
chapter.
7202.11-7202.60 A change to subheading 7202.11 through
7202.60 from any other chapter.
7202.70 A change to subheading 7202.70 from any other
chapter, except from subheading 2613.10.
7202.80-7202.99 A change to subheading 7202.80 through
7202.99 from any other chapter.
72.03-72.05 A change to heading 72.03 through 72.05 from
any other chapter.
72.06-72.07 A change to heading 72.06 through 72.07 from
any heading outside that group.
72.08-72.16 A change to heading 72.08 through 72.16 from
any heading outside that group.
72.17 A change to heading 72.17 from any other
heading, except from heading 72.13 through
72.15.
72.18-72.22 A change to heading 72.18 through 72.22 from
any heading outside that group.
72.23 A change to heading 72.23 from any other
heading, except from heading 72.21 through
72.22.
72.24-72.28 A change to heading 72.24 through 72.28 from
any heading outside that group.
72.29 A change to heading 72.29 from any other
heading, except from heading 72.27 through
72.28.
Chapter 73 Articles of Iron or Steel
73.01-73.03 A change to heading 73.01 through 73.03 from
any other chapter.
7304.10-7304.39 A change to subheading 7304.10 through
7304.39 from any other chapter.
7304.41
7304.41.aa A change to Canadian tariff item 7304.41.10,
U.S. tariff item 7304.41.00A or 7304.41.00B
or Mexican tariff item 7304.41.02 from
subheading 7304.49 or any other chapter.
7304.41 A change to subheading 7304.41 from any other
chapter.
7304.49-7304.90 A change to subheading 7304.49 through
7304.90 from any other chapter.
73.05-73.07 A change to heading 73.05 through 73.07 from
any other chapter.
73.08 A change to heading 73.08 from any other
heading, except for changes resulting from
the following processes performed on angles,
shapes, or sections of heading 72.16:
(a) drilling, punching, notching, cutting,
cambering, or sweeping, whether
performed individually or in
combination;
(b) adding attachments or weldments for
composite construction;
(c) adding attachments for handling
purposes;
(d) adding weldments, connectors or
attachments to H-sections or I-sections;
provided that the maximum dimension of
the weldments, connectors, or
attachments is not greater than the
dimension between the inner surfaces of
the flanges of the H-sections or I-
sections
(e) painting, galvanizing, or otherwise
coating; or
(f) adding a simple base plate without
stiffening elements, individually or in
combination with drilling, punching,
notching, or cutting, to create an
article suitable as a column.
73.09-73.11 A change to heading 73.09 through 73.11 from
any heading outside that group.
73.12-73.14 A change to heading 73.12 through 73.14 from
any other heading, including another heading
within that group.
7315.11-7315.12 A change to subheading 7315.11 through
7315.12 from any other heading; or
A change to subheading 7315.11 through
7315.12 from subheading 7315.19, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
7315.19 A change to subheading 7315.19 from any other
heading.
7315.20-7315.89 A change to subheading 7315.20 through
7315.89 from any other heading; or
A change to subheading 7315.20 through
7315.89 from subheading 7315.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
7315.90 A change to subheading 7315.90 from any other
heading.
73.16 A change to heading 73.16 from any other
heading, except from heading 73.12 or 73.15.
73.17-73.18 A change to heading 73.17 through 73.18 from
any heading outside that group.
73.19-73.20 A change to heading 73.19 through 73.20 from
any heading outside that group.
7321.11
7321.11.aa A change to Canadian tariff item 7321.11.19,
U.S. tariff item 7321.11.30 or Mexican tariff
item 7321.11.02 from any other subheading,
except from Canadian tariff item 7321.90.51,
7321.90.52 or 7321.90.53, U.S. tariff item
7321.90.30A, 7321.90.30B or 7321.90.30C or
Mexican tariff item 7321.90.05, 7321.90.06 or
7321.90.07.
7321.11 A change to subheading 7321.11 from any other
heading; or
A change to subheading 7321.11 from
subheading 7321.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
7321.12-7321.83 A change to subheading 7321.12 through
7321.83 from any other heading; or
A change to subheading 7321.12 through
7321.83 from subheading 7321.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
7321.90
7321.90.aa A change to Canadian tariff item 7321.90.51,
U.S. tariff item 7321.90.30A or Mexican
tariff item 7321.90.05 from any other tariff
item.
7321.90.bb A change to Canadian tariff item 7321.90.52,
U.S. tariff item 7321.90.30B or Mexican
tariff item 7321.90.06 from any other tariff
item.
7321.90.cc A change to Canadian tariff item 7321.90.53,
U.S. tariff item 7321.90.30C or Mexican
tariff item 7321.90.07 from any other tariff
item.
7321.90 A change to subheading 7321.90 from any other
heading.
73.22-73.23 A change to heading 73.22 through 73.23 from
any heading outside that group.
7324.10-7324.29 A change to subheading 7324.10 through
7324.29 from any other heading; or
A change to subheading 7324.10 through
7324.29 from subheading 7324.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
7324.90 A change to subheading 7324.90 from any other
heading.
73.25-73.26 A change to heading 73.25 through 73.26 from
any other heading outside that group.
Chapter 74 Copper and Articles Thereof
74.01-74.02 A change to heading 74.01 through 74.02 from
any other chapter.
74.03 A change to heading 74.03 from any other
chapter; or
A change to heading 74.03 from heading 74.01
or 74.02 or Canadian tariff item 7404.00.11,
7404.00.21 or 7404.11.91, U.S. tariff item
7404.00.00A or Mexican tariff item
7404.00.03, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
74.04 No required change in tariff classification
to heading 74.04, provided the waste and
scrap are wholly obtained or produced
entirely in the territory of one or more of
the Parties as defined in Article 415 of this
Chapter.
74.05-74.07 A change to heading 74.05 through 74.07 from
any other chapter; or
A change to heading 74.05 through 74.07 from
heading 74.01 or 74.02 or Canadian tariff
item 7404.00.11, 7404.00.21 or 7404.00.91,
U.S. tariff item 7404.00.00A or Mexican
tariff item 7404.00.03, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
7408.11
7408.11.aa A change to Canadian tariff item 7408.11.11
or 7408.11.12, U.S. tariff item 7408.11.60 or
Mexican tariff item 7408.11.01 from any other
chapter; or
A change to Canadian tariff item 7408.11.11
or 7408.11.12, U.S. tariff item 7408.11.60 or
Mexican tariff item 7408.11.01 from heading
74.01 or 74.02 or Canadian tariff item
7404.00.11, 7404.00.21 or 7404.00.91, U.S.
tariff item 7404.00.00A or Mexican tariff
item 7404.00.03, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
7408.11 A change to subheading 7408.11 from any other
heading, except from heading 74.07.
7408.19-7408.29 A change to subheading 7408.19 through
7408.29 from any other heading, except from
heading 74.07.
74.09 A change to heading 74.09 from any other
heading.
74.10 A change to heading 74.10 from any other
heading, except from heading 74.09.
74.11 A change to heading 74.11 from any other
heading, except from Canadian tariff item
7407.10.13, 7407.10.22, 7407.21.13,
7407.21.22, 7407.22.14, 7407.22.22,
7407.29.13 or 7407.29.22, U.S. tariff item
7407.10.10A, 7407.21.10A, 7407.22.10A or
7407.29.10A or Mexican tariff item
7407.10.03, 7407.21.03, 7407.22.03 or
7407.29.03, or heading 74.09.
74.12 A change to heading 74.12 from any other
heading, except from heading 74.11.
74.13 A change to heading 74.13 from any other
heading, except from heading 74.07 through
74.08; or
A change to heading 74.13 from heading 74.07
through 74.08, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
74.14-74.18 A change to heading 74.14 through 74.18 from
any other heading, including another heading
within that group.
7419.10 A change to subheading 7419.10 from any other
heading, except from heading 74.07.
7419.91-7419.99 A change to subheading 7419.91 through
7419.99 from any other heading.
Chapter 75 Nickel and Articles Thereof
75.01-75.04 A change to heading 75.01 through 75.04 from
any other chapter.
75.05 A change to heading 75.05 from any other
heading.
75.06
7506.10.aa A change to Canadian tariff item 7506.10.22,
U.S. tariff item 7506.10.50A or Mexican
tariff item 7506.10.01 from any other tariff
item.
7506.20.aa A change to Canadian tariff item 7506.20.92,
U.S. tariff item 7506.20.50A or Mexican
tariff item 7506.20.01 from any other tariff
item.
75.06 A change to heading 75.06 from any other
heading.
75.07-75.08 A change to heading 75.07 through 75.08 from
any heading outside that group.
Chapter 76 Aluminum and Articles Thereof
76.01-76.03 A change to heading 76.01 through 76.03 from
any other chapter.
76.04-76.06 A change to heading 76.04 through 76.06 from
any heading outside that group.
76.07 A change to heading 76.07 from any other
heading.
76.08-76.09 A change to heading 76.08 through 76.09 from
any heading outside that group.
76.10-76.13 A change to heading 76.10 through 76.13 from
any other heading, including another heading
within that group.
76.14 A change to heading 76.14 from any other
heading, except from heading 76.04 through
76.05.
76.15-76.16 A change to heading 76.15 through 76.16 from
any other heading, including another heading
within that group.
Chapter 78 Lead and Articles Thereof
78.01-78.02 A change to heading 78.01 through 78.02 from
any other chapter.
78.03-78.06 A change to heading 78.03 through 78.06 from
any other chapter; or
A change to heading 78.03 through 78.06 from
any other heading within Chapter 78,
including another heading within that group,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
Chapter 79 Zinc and Articles Thereof
79.01-79.03 A change to heading 79.01 through 79.03 from
any other chapter.
79.04-79.07 A change to heading 79.04 through 79.07 from
any other chapter; or
A change to heading 79.04 through 79.07 from
any other heading within Chapter 79,
including another heading within that group,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
Chapter 80 Tin and Articles Thereof
80.01-80.02 A change to heading 80.01 through 80.02 from
any other chapter.
80.03-80.04 A change to heading 80.03 through 80.04 from
any heading outside that group.
80.05-80.07 A change to heading 80.05 through 80.07 from
any heading outside that group.
Chapter 81 Other Base Metals; Cermets; Articles Thereof
8101.10-8101.91 A change to subheading 8101.10 through
8101.91 from any other chapter.
8101.92 A change to subheading 8101.92 from any other
subheading.
8101.93 A change to subheading 8101.93 from any other
chapter.
8101.99 A change to subheading 8101.99 from any other
subheading.
8102.10-8102.91 A change to subheading 8102.10 through
8102.91 from any other chapter.
8102.92 A change to subheading 8102.92 from any other
subheading.
8102.93 A change to subheading 8102.93 from any other
subheading, except from Canadian tariff item
8102.92.10, U.S. tariff item 8102.92.00A or
Mexican tariff item 8102.92.01.
8102.99 A change to subheading 8102.99 from any other
subheading.
8103.10 A change to subheading 8103.10 from any other
chapter.
8103.90 A change to subheading 8103.90 from any other
subheading.
8104.11-8104.30 A change to subheading 8104.11 through
8104.30 from any other chapter.
8104.90 A change to subheading 8104.90 from any other
subheading.
8105.10 A change to subheading 8105.10 from any other
chapter.
8105.90 A change to subheading 8105.90 from any other
subheading.
81.06 A change to heading 81.06 from any other
chapter.
8107.10 A change to subheading 8107.10 from any other
chapter.
8107.90 A change to subheading 8107.90 from any other
subheading.
8108.10 A change to subheading 8108.10 from any other
chapter.
8108.90 A change to subheading 8108.90 from any other
subheading.
8109.10 A change to subheading 8109.10 from any other
chapter.
8109.90 A change to subheading 8109.90 from any other
subheading.
81.10 A change to heading 81.10 from any other
chapter.
81.11
8111.00.aa A change to Canadian tariff item 8111.00.21,
8111.00.22, 8111.00.40, U.S. tariff item
8111.00.60 or Mexican tariff item 8111.00.01
from any other tariff item.
81.11 A change to heading 81.11 from any other
chapter.
81.12-81.13 A change to heading 81.12 through 81.13 from
any other chapter.
Chapter 82 Tools, Implements, Cutlery, Spoons and Forks, of
Base Metal; Parts Thereof of Base Metal
82.01-82.15 A change to heading 82.01 through 82.15 from
any other chapter.
Chapter 83 Miscellaneous Articles of Base Metal
8301.10-8301.50 A change to subheading 8301.10 through
8301.50 from any chapter; or
A change to subheading 8301.10 through
8301.50 from subheading 8301.60, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8301.60-8301.70 A change to subheading 8301.60 through
8301.70 from any other chapter.
83.02-83.04 A change to heading 83.02 through 83.04
from any other heading, including
another heading within that group.
8305.10-8305.20 A change to subheading 8305.10 through
8305.20 from any other chapter; or
A change to subheading 8305.10 through
8305.20 from subheading 8305.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8305.90 A change to subheading 8305.90 from any other
heading.
83.06-83.07 A change to heading 83.06 through 83.07
from any other chapter.
8308.10-8308.20 A change to subheading 8308.10 through
8308.20 from any other chapter; or
A change to subheading 8308.10 through
8308.20 from subheading 8308.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8308.90 A change to subheading 8308.90 from any other
heading.
83.09-83.10 A change to heading 83.09 through 83.10
from any other chapter.
8311.10-8311.30 A change to subheading 8311.10 through
8311.30 from any other chapter; or
A change to subheading 8311.10 through
8311.30 from subheading 8311.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8311.90 A change to subheading 8311.90 from any other
heading.
Section XVI - Machinery and Mechanical Appliances;
Electrical Equipment; Parts Thereof; Sound
Recorders and Reproducers, Television Image
and Sound Recorders and Reproducers, and
Parts and Accessories of Such Articles
(Chapter 84-85)
Chapter 84 Nuclear Reactors, Boilers, Machinery and
Mechanical Appliances; Parts Thereof
Note 1: For purposes of this Chapter, the term,
"printed circuit assembly", means a good
consisting of one or more printed
circuits of heading 85.34 with one or
more active elements assembled thereon,
with or without passive elements. For
purposes of this Note, "active elements"
means diodes, transistors and similar
semiconductor devices, whether or not
photosensitive, of heading 85.41, and
integrated circuits and microassemblies
of heading 85.42.
Note 2: Canadian tariff item 8473.30.10, U.S.
tariff item 8473.30.40C or Mexican
tariff item 8473.30.02 covers the
following parts for printers of
subheading 8471.92:
(a) control or command assemblies,
incorporating at least two of the
following: printed circuit assembly;
hard or flexible (floppy) disc drive;
keyboard; user interface;
(b) light source assemblies, incorporating
at least two of the following: light
emitting diode assembly; gas laser;
mirror polygon assembly; base casting;
(c) laser imaging assemblies, incorporating
at least two of the following:
photoreceptor belt or cylinder; toner
receptacle unit; toner developing unit;
charge/discharge unit; cleaning unit;
(d) image fixing assemblies, incorporating
at least two of the following: fuser;
pressure roller; heating element;
release oil dispenser; cleaning unit;
electrical control;
(e) ink jet marking assemblies,
incorporating at least two of the
following: thermal print head; ink
dispensing unit; nozzle and reservoir
unit; ink heater;
(f) maintenance/sealing assemblies,
incorporating at least two of the
following: vacuum unit; ink jet
covering unit; sealing unit; purging
unit;
(g) paper handling assemblies, incorporating
at least two of the following: paper
transport belt; roller; print bar;
carriage; gripper roller; paper storage
unit; exit tray;
(h) thermal transfer imaging assemblies,
incorporating at least two of the
following: thermal print head; cleaning
unit; supply or take-up roller;
(i) ionographic imaging assemblies,
incorporating at least two of the
following: ion generation and emitting
unit; air assist unit; printed circuit
assembly; charge receptor belt or
cylinder; toner receptacle unit; toner
distribution unit; developer receptacle
and distribution unit; developing unit;
charge/discharge unit; cleaning unit; or
(j) combinations of the above specified
assemblies.
8401.10-8401.30 A change to subheading 8401.10 through
8401.30 from any other heading; or
A change to subheading 8401.10 through
8401.30 from subheading 8401.40, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8401.40 A change to subheading 8401.40 from any other
heading.
8402.11-8402.20 A change to subheading 8402.11 through
8402.20 from any other heading; or
A change to subheading 8402.11 through
8402.20 from subheading 8402.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8402.90 A change to subheading 8402.90 from any other
heading; or
No required change in tariff classification
to subheading 8402.90, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8403.10 A change to subheading 8403.10 from any other
heading; or
A change to subheading 8403.10 from
subheading 8403.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8403.90 A change to subheading 8403.90 from any other
heading.
8404.10-8404.20 A change to subheading 8404.10 through
8404.20 from any other heading; or
A change to subheading 8404.10 through
8404.20 from subheading 8404.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8404.90 A change to subheading 8404.90 from any other
heading.
8405.10 A change to subheading 8405.10 from any other
heading; or
A change to subheading 8405.10 from
subheading 8405.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8405.90 A change to subheading 8405.90 from any other
heading.
8406.11-8406.19 A change to subheading 8406.11 through
8406.19 from any subheading outside that
group, except from Canadian tariff item
8406.90.22, 8406.90.24, 8406.90.32 or
8406.90.34, U.S. tariff item 8406.90.20,
8406.90.40, 8406.90.50 or 8406.90.70 or
Mexican tariff item 8406.90.01 or
8406.90.02.
8406.90
8406.90.aa A change to Canadian tariff item
8406.90.22 or 8406.90.32, U.S. tariff
item 8406.90.10A or 8406.90.90A or
Mexican tariff item 8406.90.01 from
Canadian tariff item 8406.90.21 or
8406.90.31, U.S. tariff item 8406.90.10B
or 8406.90.90B or Mexican tariff item
8406.90.03, or any other heading.
8406.90.bb A change to Canadian tariff item
8406.90.24 or 8406.90.34, U.S. tariff
item 8406.90.10C or 8406.90.90C or
Mexican tariff item 8406.90.02 from any
other tariff item.
8406.90 A change to subheading 8406.90 from any other
heading.
84.07-84.0816 A change to heading 84.07 through
84.08 from any other heading, including
another heading within that group,
provided there is a regional value
content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8409.1017 A change to subheading 8409.10 from any
other heading.
8409.9118 A change to subheading 8409.91 from any
other heading; or
No required change in tariff classification
to subheading 8409.91, provided there is a
regional value content of not less than:
____________________
16 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
17 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
18 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8409.9919 A change to subheading 8409.99 from any
other heading; or
No required change in tariff classification
to subheading 8409.99, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8410.11-8410.13 A change to subheading 8410.11 through
8410.13 from any other heading; or
19 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
A change to subheading 8410.11 through
8410.13 from subheading 8410.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8410.90 A change to subheading 8410.90 from any other
heading.
8411.11-8411.82 A change to subheading 8411.11 through
8411.82 from any other heading; or
A change to subheading 8411.11 through
8411.82 from subheading 8411.91 through
8411.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8411.91-8411.99 A change to subheading 8411.91 through
8411.99 from any other heading.
8412.10-8412.80 A change to subheading 8412.10 through
8412.80 from any other heading; or
A change to subheading 8412.10 through
8412.80 from subheading 8412.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8412.90 A change to subheading 8412.90 from any other
heading.
8413.11-8413.8220 A change to subheading 8413.11 through
8413.82 from any other heading; or
A change to subheading 8413.11 through
8413.82 from subheading 8413.91 through
8413.92, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8413.91 A change to subheading 8413.91 from any other
heading.
8413.92 A change to subheading 8413.92 from any other
heading; or
No required change in tariff classification
to subheading 8413.92, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8414.10-8414.20 A change to subheading 8414.10 through
8414.20 from any other heading; or
A change to subheading 8414.10 through
8414.20 from subheading 8414.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8414.30 A change to subheading 8414.30 from any other
subheading, except from Canadian tariff item
8414.90.21 or 8414.90.51, U.S. tariff item
8414.90.20A or 8414.90.20B or Mexican tariff
____________________
20 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
item 8414.90.14.
8414.40-8414.8021 A change to subheading 8414.40 through
8414.80 from any other heading; or
A change to subheading 8414.40 through
8414.80 from subheading 8414.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8414.90 A change to subheading 8414.90 from any other
heading; or
No required change in tariff classification
to subheading 8414.90, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8415.10 A change to subheading 8415.10 from any other
subheading, except from Canadian tariff item
8415.90.11, 8415.90.21, 8415.90.31 or
8415.90.41, U.S. tariff item 8415.90.00A or
8415.90.00B or Mexican tariff item 8415.90.01
or from assemblies incorporating at least two
of the following: compressor, condenser,
evaporator, connecting tubing.
21 If the good provided for in subheading 8414.59 is for
use in a motor vehicle of Chapter 87, the provisions of
Article 403 may apply.
8415.81-8415.8322 A change to subheading 8415.81 through
8415.83 from any subheading outside that
group, except from Canadian tariff item
8415.90.11, 8415.90.21, 8415.90.31 or
8415.90.41, U.S. tariff item 8415.90.00A
or 8415.90.00B or Mexican tariff item
8415.90.01 or from assemblies
incorporating at least two of the
following: compressor, condenser,
evaporator, connecting tubing; or
A change to subheading 8415.81 through
8415.83 from Canadian tariff item 8415.90.11,
8415.90.21, 8415.90.31 or 8415.90.41, U.S.
tariff item 8415.90.00A or 8415.90.00B or
Mexican tariff item 8415.90.01 or assemblies
incorporating at least two of the following:
compressor, condenser, evaporator, connecting
tubing, whether or not there is also a change
from any other subheading outside that group,
provided there is a regional value content of
not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8415.90
8415.90.aa A change to Canadian tariff item
8415.90.11, 8415.90.21, 8415.90.31 or
8415.90.41, U.S. tariff item 8415.90.00A
or 8415.90.00B or Mexican tariff item
8415.90.01 from any other tariff item.
8415.90 A change to subheading 8415.90 from any other
heading.
8416.10-8416.30 A change to subheading 8416.10 through
8416.30 from any other heading; or
A change to subheading 8416.10 through
8416.30 from subheading 8416.90, whether or
not there is also a change from any other
heading, provided there is a regional value
content of not less than:
22 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8416.90 A change to subheading 8416.90 from any other
heading.
8417.10-8417.80 A change to subheading 8417.10 through
8417.80 from any other heading; or
A change to subheading 8417.10 through
8417.80 from subheading 8417.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8417.90 A change to subheading 8417.90 from any other
heading.
8418.10-8418.21 A change to subheading 8418.10 through
8418.21 from any subheading outside that
group, except from subheading 8418.91 or
Canadian tariff item 8418.99.11,
8418.99.21, 8418.99.31, 8418.99.41 or
8418.99.51, U.S. tariff item 8418.99.00A
or Mexican tariff item 8418.99.12, or
from assemblies incorporating at least
two of the following: compressor,
condenser, evaporator, connecting
tubing.
8418.22 A change to subheading 8418.22 from any other
heading; or
A change to subheading 8418.22 from
subheading 8418.91 through 8418.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8418.29-8418.40 A change to subheading 8418.29 through
8418.40 from any subheading outside that
group, except from subheading 8418.91 or
Canadian tariff item 8418.99.11,
8418.99.21, 8418.99.31, 8418.99.41 or
8418.99.51, U.S. tariff item 8418.99.00A
or Mexican tariff item 8418.99.12, or
from assemblies incorporating at least
two of the following: compressor,
condenser, evaporator, connecting
tubing.
8418.50-8418.69 A change to subheading 8418.50 through
8418.69 from any other heading; or
A change to subheading 8418.50 through
8418.69 from subheading 8418.91 through
8418.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8418.91 A change to subheading 8418.91 from any other
subheading.
8418.99
8418.99.aa A change to Canadian tariff item
8418.99.11, 8418.99.21, 8418.99.31,
8418.99.41 or 8418.99.51, U.S. tariff
item 8418.99.00A or Mexican tariff item
8418.99.12 from any other tariff item.
8418.99 A change to subheading 8418.99 from any other
heading.
8419.11-8419.89 A change to subheading 8419.11 through
8419.89 from any other heading; or
A change to subheading 8419.11 through
8419.89 from subheading 8419.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8419.90 A change to subheading 8419.90 from any other
heading; or
No required change in tariff classification
to subheading 8419.90, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8420.10 A change to subheading 8420.10 from any other
heading; or
A change to subheading 8420.10 from
subheading 8420.91 through 8420.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8420.91-8420.99 A change to subheading 8420.91 through
8420.99 from any other heading.
8421.11 A change to subheading 8421.11 from any other
heading; or
A change to subheading 8421.11 from
subheading 8421.91, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8421.12 A change to subheading 8421.12 from any other
subheading, except from Canadian tariff item
8421.91.11, 8421.91.12, 8537.10.11,
8537.10.19, 8537.10.41 or 8537.10.49, U.S.
tariff item 8421.91.00A, 8421.91.00B or
8537.10.00A or Mexican tariff item
8421.91.02, 8421.91.03 or 8537.10.05.
8421.19-8421.3923 A change to subheading 8421.19 through
8421.39 from any other heading; or
A change to subheading 8421.19 through
8421.39 from subheading 8421.91 through
8421.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8421.91
8421.91.aa A change to Canadian tariff item
8421.91.11, U.S. tariff item 8421.91.00A
or Mexican tariff item 8421.91.02 from
any other tariff item.
8421.91.bb A change to Canadian tariff item
8421.91.12, U.S. tariff item 8421.91.00B
or Mexican tariff item 8421.91.03 from
any other tariff item.
8421.91 A change to subheading 8421.91 from any other
heading.
8421.99 A change to subheading 8421.99 from any other
heading; or
No required change in tariff classification
____________________
23 If the good provided for in subheading 8421.39 is for
use in a motor vehicle of Chapter 87, the provisions of
Article 403 may apply.
to subheading 8421.99, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8422.11 A change to subheading 8422.11 from any other
subheading, except from Canadian tariff item
8422.90.11, 8422.90.12, 8422.90.22,
8422.90.23, 8537.10.11, 8537.10.19,
8537.10.41 or 8537.10.49, U.S. tariff item
8422.90.05A, 8422.90.05B or 8537.10.00A or
Mexican tariff item 8422.90.05, 8422.90.06 or
8537.10.05, or from water circulation systems
incorporating a pump, whether or not
motorized, and auxiliary apparatus for
controlling, filtering, or dispersing a
spray.
8422.19-8422.40 A change to subheading 8422.19 through
8422.40 from any other heading; or
A change to subheading 8422.19 through
8422.40 from subheading 8422.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8422.90
8422.90.aa A change to Canadian tariff item
8422.90.11 or 8422.90.22, U.S. tariff
item 8422.90.05A or Mexican tariff item
8422.90.05 from any other tariff item.
8422.90.bb A change to Canadian tariff item
8422.90.12 or 8422.90.23, U.S. tariff
item 8422.90.05B or Mexican tariff item
8422.90.06 from any other tariff item.
8422.90 A change to subheading 8422.90 from any other
heading.
8423.10-8423.89 A change to subheading 8423.10 through
8423.89 from any other heading; or
A change to subheading 8423.10 through
8423.89 from subheading 8423.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8423.90 A change to subheading 8423.90 from any other
heading.
8424.10-8424.89 A change to subheading 8424.10 through
8424.89 from any other heading; or
A change to subheading 8424.10 through
8424.89 from subheading 8424.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8424.90 A change to subheading 8424.90 from any other
heading.
84.25-84.26 A change to heading 84.25 through 84.26
from any other heading, including
another heading within that group,
except from heading 84.31; or
A change to heading 84.25 through 84.26 from
heading 84.31, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8427.10
8427.10.aa A change to Canadian tariff item
8427.10.10, U.S. tariff item 8427.10.00A
or Mexican tariff item 8427.10.03 or
8427.10.04 from any other heading,
except from subheading 8431.20 or
8483.40 or heading 85.01; or
A change to Canadian tariff item 8427.10.10,
U.S. tariff item 8427.10.00A or Mexican
tariff item 8427.10.03 or 8427.10.04 from
subheading 8431.20 or 8483.40 or heading
85.01, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8427.10 A change to subheading 8427.10 from any other
heading, except from subheading 8431.20; or
A change to subheading 8427.10 from
subheading 8431.20, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8427.20
8427.20.aa A change to Canadian tariff item
8427.20.10, U.S. tariff item 8427.20.00A
or Mexican tariff item 8427.20.04 or
8427.20.05 from any other heading,
except from heading 84.07 or 84.08 or
subheading 8431.20 or 8483.40; or
A change to Canadian tariff item 8427.20.10,
U.S. tariff item 8427.20.00A or Mexican
tariff item 8427.20.04 or 8427.20.05 from
heading 84.07 or 84.08 or subheading 8431.20
or 8483.40, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8427.20 A change to subheading 8427.20 from any other
heading, except from subheading 8431.20; or
A change to subheading 8427.20 from
subheading 8431.20, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8427.90 A change to subheading 8427.90 from any other
heading, except from subheading 8431.20; or
A change to subheading 8427.90 from
subheading 8431.20, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
84.28-84.30 A change to heading 84.28 through 84.30
from any heading outside that group,
except from heading 84.31; or
A change to heading 84.28 through 84.30 from
heading 84.31, whether or not there is also a
change from any heading outside that group,
provided there is a regional value content of
not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8431.10 A change to subheading 8431.10 from any other
heading; or
No required change in tariff classification
to subheading 8431.10, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8431.20 A change to subheading 8431.20 from any other
heading.
8431.31 A change to subheading 8431.31 from any other
heading; or
No required change in tariff classification
to subheading 8431.31, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8431.39 A change to subheading 8431.39 from any other
heading; or
No required change in tariff classification
to subheading 8431.39, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8431.41-8431.42 A change to subheading 8431.41 through
8431.42 from any other heading.
8431.43 A change to subheading 8431.43 from any other
heading; or
No required change in tariff classification
to subheading 8431.43, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8431.49 A change to subheading 8431.49 from any other
heading; or
No required change in tariff classification
to subheading 8431.49, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8432.10-8432.80 A change to subheading 8432.10 through
8432.80 from any other heading; or
A change to subheading 8432.10 through
8432.80 from subheading 8432.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8432.90 A change to subheading 8432.90 from any other
heading.
8433.11-8433.60 A change to subheading 8433.11 through
8433.60 from any other heading; or
A change to subheading 8433.11 through
8433.60 from subheading 8433.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8433.90 A change to subheading 8433.90 from any other
heading.
8434.10-8434.20 A change to subheading 8434.10 through
8434.20 from any other heading; or
A change to subheading 8434.10 through
8434.20 from subheading 8434.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8434.90 A change to subheading 8434.90 from any other
heading.
8435.10 A change to subheading 8435.10 from any other
heading; or
A change to subheading 8435.10 from
subheading 8435.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8435.90 A change to subheading 8435.90 from any other
heading.
8436.10-8436.80 A change to subheading 8436.10 through
8436.80 from any other heading; or
A change to subheading 8436.10 through
8436.80 from subheading 8436.91 through
8436.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8436.91-8436.99 A change to subheading 8436.91 through
8436.99 from any other heading.
8437.10-8437.80 A change to subheading 8437.10 through
8437.80 from any other heading; or
A change to subheading 8437.10 through
8437.80 from subheading 8437.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8437.90 A change to subheading 8437.90 from any other
heading.
8438.10-8438.80 A change to subheading 8438.10 through
8438.80 from any other heading; or
A change to subheading 8438.10 through
8438.80 from subheading 8438.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8438.90 A change to subheading 8438.90 from any other
heading.
8439.10-8439.30 A change to subheading 8439.10 through
8439.30 from any other heading; or
A change to subheading 8439.10 through
8439.30 from subheading 8439.91 through
8439.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8439.91-8439.99 A change to subheading 8439.91 through
8439.99 from any other heading.
8440.10 A change to subheading 8440.10 from any other
heading; or
A change to subheading 8440.10 from
subheading 8440.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8440.90 A change to subheading 8440.90 from any other
heading.
8441.10-8441.80 A change to subheading 8441.10 through
8441.80 from any other heading; or
A change to subheading 8441.10 through
8441.80 from subheading 8441.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8441.90 A change to subheading 8441.90 from any other
heading; or
No required change in tariff classification
to subheading 8441.90, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8442.10-8442.30 A change to subheading 8442.10 through
8442.30 from any other heading; or
A change to subheading 8442.10 through
8442.30 from subheading 8442.40 through
8442.50, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8442.40-8442.50 A change to subheading 8442.40 through
8442.50 from any other heading.
8443.11-8443.50 A change to subheading 8443.11 through
8443.50 from any other heading; or
A change to subheading 8443.11 through
8443.50 from subheading 8443.60 or 8443.90,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8443.60 A change to subheading 8443.60 from any other
heading; or
A change to subheading 8443.60 from
subheading 8443.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8443.90 A change to subheading 8443.90 from any other
heading.
84.44-84.47 A change to heading 84.44 through 84.47
from any heading outside that group,
except from heading 84.48; or
A change to heading 84.44 through 84.47 from
heading 84.48, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8448.11-8448.19 A change to subheading 8448.11 through
8448.19 from any other heading; or
A change to subheading 8448.11 through
8448.19 from subheading 8448.20 through
8448.59, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8448.20-8448.59 A change to subheading 8448.20 through
8448.59 from any other heading.
84.49 A change to heading 84.49 from any other
heading.
8450.11-8450.20 A change to subheading 8450.11 through
8450.20 from any subheading outside that
group, except from Canadian tariff item
8450.90.11, 8450.90.12, 8450.90.21,
8450.90.22, 8450.90.31, 8450.99.32,
8450.90.41, 8450.90.42, 8537.10.11,
8537.10.19, 8537.10.41 or 8537.10.49,
U.S. tariff item 8450.90.00A,
8450.90.00B or 8537.10.00A or Mexican
tariff item 8450.90.01, 8450.90.02 or
8537.10.05, or from washer assemblies
incorporating at least two of the
following: agitator, motor,
transmission, clutch.
8450.90
8450.90.aa A change to Canadian tariff item
8450.90.11, 8450.90.21, 8450.90.31 or
8450.90.41, U.S. tariff item 8450.90.00A
or Mexican tariff item 8450.90.01 from
any other tariff item.
8450.90.bb A change to Canadian tariff item
8450.90.12, 8450.90.22, 8450.90.32 or
8450.90.42, U.S. tariff item 8450.90.00B
or Mexican tariff item 8450.90.02 from
any other tariff item.
8450.90 A change to subheading 8450.90 from any other
heading.
8451.10 A change to subheading 8451.10 from any other
heading; or
A change to subheading 8451.10 from
subheading 8451.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8451.21-8451.29 A change to subheading 8451.21 through
8451.29 from any subheading outside that
group, except from Canadian tariff item
8451.90.11, 8451.90.12, 8451.90.21,
8451.90.22, 8451.90.31 or 8451.90.32,
U.S. tariff item 8451.90.00A or
8451.90.00B or Mexican tariff item
8451.90.01 or 8451.90.02, or subheading
8537.10.
8451.30-8451.80 A change to subheading 8451.30 through
8451.80 from any other heading; or
A change to subheading 8451.30 through
8451.80 from subheading 8451.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8451.90
8451.90.aa A change to Canadian tariff item
8451.90.11, 8451.90.21 or 8451.90.31,
U.S. tariff item 8451.90.00A or Mexican
tariff item 8451.90.01 from any other
tariff item.
8451.90.bb A change to Canadian tariff item
8451.90.12, 8451.90.22 or 8451.90.32,
U.S. tariff item 8451.90.00B or Mexican
tariff item 8451.90.02 from any other
tariff item.
8451.90 A change to subheading 8451.90 from any other
heading.
8452.10-8452.30 A change to subheading 8452.10 through
8452.30 from any other heading; or
A change to subheading 8452.10 through
8452.30 from subheading 8452.40 or 8452.90,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8452.40-8452.90 A change to subheading 8452.40 through
8452.90 from any other heading.
8453.10-8453.80 A change to subheading 8453.10 through
8453.80 from any other heading; or
A change to subheading 8453.10 through
8453.80 from subheading 8453.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8453.90 A change to subheading 8453.90 from any other
heading.
8454.10-8454.30 A change to subheading 8454.10 through
8454.30 from any other heading; or
A change to subheading 8454.10 through
8454.30 from subheading 8454.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8454.90 A change to subheading 8454.90 from any other
heading.
8455.10-8455.22 A change to subheading 8455.10 through
8455.22 from any subheading outside that
group, except from Canadian tariff item
8455.90.10, U.S. tariff item 8455.90.00A
or Mexican tariff item 8455.90.01.
8455.30 A change to subheading 8455.30 from any other
heading; or
A change to subheading 8455.30 from
subheading 8455.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8455.90 A change to subheading 8455.90 from any other
heading.
8456.10 A change to subheading 8456.10 from any other
heading, except from more than one of the
following:
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff 8466.93.10A,
8466.93.50A or 8466.93.70A or Mexican
tariff item 8466.93.04,
- subheading 8537.10,
- subheading 9013.20.
8456.20-8456.90 A change to subheading 8456.20 through
8456.90 from any other heading, except
from more than one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
84.57 A change to heading 84.57 from any other
heading, except from heading 84.59 or
from more than one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8458.11 A change to subheading 8458.11 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8458.19 A change to subheading 8458.19 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8458.91 A change to subheading 8458.91 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8458.99 A change to subheading 8458.99 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8459.10 A change to subheading 8459.10 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8459.21 A change to subheading 8459.21 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10; or
A change to subheading 8459.21 from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8459.29 A change to subheading 8459.29 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8459.31 A change to subheading 8459.31 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10; or
A change to subheading 8459.31 from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8459.39 A change to subheading 8459.39 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8459.40-8459.51 A change to subheading 8459.40 through
8459.51 from any other heading, except
from more than one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10; or
A change to subheading 8459.40 through
8459.51 from more than one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8459.59 A change to subheading 8459.59 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8459.61 A change to subheading 8459.61 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10; or
A change to subheading 8459.61 from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8459.69 A change to subheading 8459.69 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8459.70
8459.70.aa A change to Canadian tariff item
8459.70.10, U.S. tariff item 8459.70.00A
or Mexican tariff item 8459.70.03 from
any other heading, except from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10; or
A change to Canadian tariff item 8459.70.10,
U.S. tariff item 8459.70.00A or Mexican
tariff item 8459.70.03 from more than one of
the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8459.70 A change to subheading 8459.70 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8460.11 A change to subheading 8460.11 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8460.19 A change to subheading 8460.19 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8460.21 A change to subheading 8460.21 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8460.29 A change to subheading 8460.29 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8460.31 A change to subheading 8460.31 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8460.39 A change to subheading 8460.39 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8460.40
8460.40.aa A change to Canadian tariff item
8460.40.10, U.S. tariff item 8460.40.00A
or Mexican tariff item 8460.40.02 from
any other heading, except from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8460.40 A change to subheading 8460.40 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8460.90
8460.90.aa A change to Canadian tariff item
8460.90.11 or 8460.90.91, U.S. tariff
item 8460.90.00A or Mexican tariff item
8460.90.03 from any other heading,
except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8460.90 A change to subheading 8460.90 from any other
heading, except from Canadian tariff
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04 or subheading
8501.32 or 8501.52.
8461.10
8461.10.aa A change to Canadian tariff item
8461.10.10, U.S. tariff item 8461.10.00A
or Mexican tariff item 8461.10.03 from
any other heading, except from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8461.10 A change to subheading 8461.10 from any other
heading, except from Canadian tariff item
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04.
8461.20
8461.20.aa A change to Canadian tariff item
8461.20.11 or 8461.20.21, US. tariff
item 8461.20.00A or Mexican tariff item
8461.20.01 from any other heading,
except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8461.20 A change to subheading 8461.20 from any other
heading, except from Canadian tariff item
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04.
8461.30
8461.30.aa A change to Canadian tariff item
8461.30.10, U.S. tariff item 8461.30.00A
or Mexican tariff item 8461.30.01 from
any other heading, except from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8461.30 A change to subheading 8461.30 from any other
heading, except from Canadian tariff item
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04.
8461.40 A change to subheading 8461.40 from any other
heading, except from Canadian tariff item
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04.
8461.50
8461.50.aa A change to Canadian tariff item
8461.50.10, U.S. tariff item 8461.50.00A
or Mexican tariff item 8461.50.03 from
any other heading, except from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8461.50 A change to subheading 8461.50 from any other
heading, except from Canadian tariff item
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04.
8461.90
8461.90.aa A change to Canadian tariff item
8461.90.11 or 8461.90.91, U.S. tariff
item 8461.90.00A or Mexican tariff item
8461.90.02 from any other heading,
except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.93.11 or
8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A
or Mexican tariff item 8466.93.04,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8461.90 A change to subheading 8461.90 from any other
heading, except from Canadian tariff item
8466.93.11 or 8466.93.91, U.S. tariff item
8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04.
8462.10 A change to subheading 8462.10 from any other
heading, except from Canadian tariff item
8466.94.11 or 8466.94.91, U.S. tariff item
8466.94.10A or 8466.94.50A or Mexican tariff
item 8466.94.02.
8462.21 A change to subheading 8462.21 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.94.11 or
8466.94.91, U.S. tariff item 8466.94.10A
or 8466.94.50A or Mexican tariff item
8466.94.02,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8462.29 A change to subheading 8462.29 from any other
heading, except from Canadian tariff item
8466.94.11 or 8466.94.91, U.S. tariff item
8466.94.10A or 8466.94.50A or Mexican tariff
item 8466.94.02.
8462.31 A change to subheading 8462.31 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.94.11 or
8466.94.91, U.S. tariff item 8466.94.10A
or 8466.94.50A or Mexican tariff item
8466.94.02,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8462.39 A change to subheading 8462.39 from any other
heading, except from Canadian tariff item
8466.94.11 or 8466.94.91, U.S. tariff item
8466.94.10A or 8466.94.50A or Mexican tariff
item 8466.94.02.
8462.41 A change to subheading 8462.41 from any other
heading, except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.94.11 or
8466.94.91, U.S. tariff item 8466.94.10A
or 8466.94.50A or Mexican tariff item
8466.94.02,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8462.49 A change to subheading 8462.49 from any other
heading, except from Canadian tariff item
8466.94.11 or 8466.94.91, U.S. tariff item
8466.94.10A or 8466.94.50A or Mexican tariff
item 8466.94.02.
8462.91
8462.91.aa A change to Canadian tariff item
8462.91.10, U.S. tariff item
8462.91.00A, Mexican tariff item
8462.91.05 from any other heading,
except from more than one of the
following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.94.11 or
8466.94.91, U.S. tariff item 8466.94.10A
or 8466.94.50A or Mexican tariff item
8466.94.02,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8462.91 A change to subheading 8462.91 from any other
heading, except from Canadian tariff item
8466.94.11 or 8466.94.91, U.S. tariff item
8466.94.10A or 8466.94.50A or Mexican tariff
item 8466.94.02.
8462.99
8462.99.aa A change to Canadian tariff item
8462.99.10, U.S. tariff item 8462.99.00A
or Mexican tariff item 8462.99.05 from
any other heading, except from more than
one of the following:
- subheading 8413.50 through 8413.60,
- Canadian tariff item 8466.94.11 or
8466.94.91, U.S. tariff item 8466.94.10A
or 8466.94.50A or Mexican tariff item
8466.94.02,
- subheading 8501.32 or 8501.52,
- subheading 8537.10.
8462.99 A change to subheading 8462.99 from any other
heading, except from Canadian tariff item
8466.94.11 or 8466.94.91, U.S. tariff item
8466.94.10A or 8466.94.50A or Mexican tariff
item 8466.94.02.
84.63 A change to heading 84.63 from any other
heading, except from Canadian tariff
8466.94.11 or 8466.94.91, U.S. tariff
item 8466.94.10A or 8466.94.50A or
Mexican tariff item 8466.94.02 or
subheading 8501.32 or 8501.52.
84.64 A change to heading 84.64 from any other
heading, except from subheading 8466.91;
or
A change to heading 84.64 from subheading
8466.91, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
84.65 A change to heading 84.65 from any other
heading, except from subheading 8466.92;
or
A change to heading 84.65 from subheading
8466.92, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
84.66 A change to heading 84.66 from any other
heading.
8467.11-8467.89 A change to subheading 8467.11 through
8467.89 from any other heading; or
A change to subheading 8467.11 through
8467.89 from subheading 8467.91, 8467.92 or
8467.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8467.91-8467.99 A change to subheading 8467.91 through
8467.99 from any other heading.
8468.10-8468.80 A change to subheading 8468.10 through
8468.80 from any other heading; or
A change to subheading 8468.10 through
8468.80 from subheading 8468.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8468.90 A change to subheading 8468.90 from any other
heading.
84.69
8469.10.aa A change to Canadian tariff item
8469.10.20, U.S. tariff item 8469.10.00A
or Mexican tariff item 8469.10.02 from
any other heading, except from heading
84.73; or
A change to Canadian tariff item 8469.10.20,
U.S. tariff item 8469.10.00A or Mexican
tariff item 8469.10.02 from heading 84.73,
whether or not there is also a change from
any other heading, provided there is a
regional value content of not less than 50
percent under the net cost method.
84.69 A change to heading 84.69 from any other
heading, except from heading 84.73; or
A change to heading 84.69 from heading 84.73,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
84.70 A change to heading 84.70 from any other
heading, except from heading 84.73; or
A change to heading 84.70 from heading 84.73,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8471.10 A change to subheading 8471.10 from any other
heading, except from heading 84.73; or
A change to subheading 8471.10 from heading
84.73, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8471.20-8471.91 A change to subheading 8471.20 through
8471.91 from any subheading outside that
group.
8471.92
8471.92.aa A change to Canadian tariff item
8471.92.31, U.S. tariff item 8471.92.40A
or 8471.92.40B or Mexican tariff item
8471.92.02 from any other subheading,
except from subheading 8540.30 or
Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8471.92.bb A change to Canadian tariff item
8471.92.21, U.S. tariff item
8471.92.65A, 8471.92.65B or 8471.92.70A
or Mexican tariff item 8471.92.03 from
any other tariff item, except from
Canadian tariff item 8473.30.10,
8473.30.21 or 8473.30.22, U.S. tariff
item 8473.30.40A or 8473.30.40C or
Mexican tariff item 8473.30.02 or
8473.30.03.
8471.92.cc A change to Canadian tariff item
8471.92.22, U.S. tariff item
8471.92.65C, 8471.92.65D or 8471.92.70B
or Mexican tariff item 8471.92.08 from
any other tariff item, except from
Canadian tariff item 8473.30.21 or
8473.30.22, U.S. tariff item 8473.30.40A
or Mexican tariff item 8473.30.03.
8471.92.dd A change to Canadian tariff item
8471.92.23, U.S. tariff item
8471.92.65E, 8471.92.65F or 8471.92.70C
or Mexican tariff item 8471.92.04 from
any other tariff item, except from
Canadian tariff item 8473.30.10,
8473.30.21 or 8473.30.22, U.S. tariff
item 8473.30.40A or 8473.30.40C or
Mexican tariff item 8473.30.02 or
8473.30.03.
8471.92.ee A change to Canadian tariff item
8471.92.24, U.S. tariff item
8471.92.65G, 8471.92.65H or 8471.92.70D
or Mexican tariff item 8471.92.05 from
any other tariff item, except from
Canadian tariff item 8473.30.10, U.S.
tariff item 8473.30.40C or Mexican
tariff item 8473.30.02.
8471.92.ff A change to Canadian tariff item
8471.92.25, U.S. tariff item
8471.92.65I, 8471.92.65J or 8471.92.70E
or Mexican tariff item 8471.92.06 from
any other tariff item, except from
Canadian tariff item 8473.30.10, U.S.
tariff item 8473.30.40C or Mexican
tariff item 8473.30.02.
8471.92.gg A change to Canadian tariff item
8471.92.26, U.S. tariff item
8471.92.65K, 8471.92.65L or 8471.92.70F
or Mexican tariff item 8471.92.07 from
any other tariff item, except from
Canadian tariff item 8473.30.10, U.S.
tariff item 8473.30.40C or Mexican
tariff item 8473.30.02.
8471.92 A change to subheading 8471.92 from any other
subheading.
8471.93 A change to subheading 8471.93 from any other
subheading.
8471.99
8471.99.aa A change to Canadian tariff item
8471.99.91, U.S. tariff item 8471.99.15
or Mexican tariff item 8471.99.01 from
any other tariff item.
8471.99.bb A change to Canadian tariff item
8471.99.92, U.S. tariff item 8471.99.32
or 8471.99.34 or Mexican tariff item
8471.99.02 from any other tariff item.
8471.99.cc A change to Canadian tariff item
8471.99.98, U.S. tariff item 8471.99.60
or Mexican tariff item 8471.99.03 from
any other tariff item.
8471.99 A change to any other tariff item within
subheading 8471.99 from Canadian tariff item
8471.99.91, 8471.99.92 or 8471.99.98, U.S.
tariff item 8471.99.15, 8471.99.32,
8471.99.34 or 8471.99.60 or Mexican tariff
item 8471.99.01, 8471.99.02 or 8471.99.03, or
any other subheading.
84.72 A change to heading 84.72 from any other
heading, except from heading 84.73; or
A change to heading 84.72 from heading 84.73,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8473.10
8473.10.aa A change to Canadian tariff item
8473.10.91, U.S. tariff item 8473.10.00A
or Mexican tariff item 8473.10.01 from
any other heading.
8473.10.bb A change to Canadian tariff item
8473.10.92 or 8473.10.93, U.S. tariff
item 8473.10.00B or Mexican tariff item
8473.10.02 from any other heading; or
No required change in tariff classification
to Canadian tariff item 8473.10.92 or
8473.10.93, U.S. tariff item 8473.10.00B or
Mexican tariff item 8473.10.02, provided
there is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8473.21 A change to subheading 8473.21 from any other
heading; or
No required change in tariff classification
to subheading 8473.21, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8473.29 A change to subheading 8473.29 from any other
heading; or
No required change in tariff classification
to subheading 8473.29, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8473.30
8473.30.aa A change to Canadian tariff item
8473.30.21 or 8473.30.22, U.S. tariff
item 8473.30.40A or Mexican tariff item
8473.30.03 from any other tariff item.
8473.30.bb A change to Canadian tariff item
8473.30.23, U.S. tariff item 8473.30.40B
or Mexican tariff item 8473.30.04 from
any other tariff item.
8473.30.cc A change to Canadian tariff item
8473.30.10, U.S. tariff item 8473.30.40C
or Mexican tariff item 8473.30.02 from
any other tariff item.
8473.30 A change to subheading 8473.30 from any other
heading.
8473.40 A change to subheading 8473.40 from any other
heading; or
No required change in tariff classification
to subheading 8473.40, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8474.10-8474.80 A change to subheading 8474.10 through
8474.80 from any other heading; or
A change to subheading 8474.10 through
8474.80 from subheading 8474.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8474.90 A change to subheading 8474.90 from any other
heading; or
No required change in tariff classification
to subheading 8474.90, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8475.10-8475.20 A change to subheading 8475.10 through
8475.20 from any other heading; or
A change to subheading 8475.10 through
8475.20 from subheading 8475.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8475.90 A change to subheading 8475.90 from any other
heading.
8476.11-8476.19 A change to subheading 8476.11 through
8476.19 from any other heading; or
A change to subheading 8476.11 through
8476.19 from subheading 8476.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8476.90 A change to subheading 8476.90 from any other
heading.
8477.10 A change to subheading 8477.10 from any other
subheading, except from Canadian tariff item
8477.90.11 or 8477.90.21, U.S. tariff item
8477.90.00A or Mexican tariff item 8477.90.01
or from more than one of the following:
- Canadian tariff item 8477.90.12 or
8477.90.22, U.S. tariff item 8477.90.00B
or Mexican tariff item 8477.90.02,
- subheading 8537.10.
8477.20 A change to subheading 8477.20 from any other
subheading, except from Canadian tariff item
8477.90.11 or 8477.90.21, U.S. tariff item
8477.90.00A or Mexican tariff item 8477.90.01
or from more than one of the following:
- Canadian tariff item 8477.90.12 or
8477.90.22, U.S. tariff item 8477.90.00B
or Mexican tariff item 8477.90.02,
- subheading 8537.10.
8477.30 A change to subheading 8477.30 from any other
subheading, except from Canadian tariff item
8477.90.11 or 8477.90.21, U.S. tariff item
8477.90.00A or Mexican tariff item 8477.90.01
or from more than one of the following:
- Canadian tariff item 8477.90.13 or
8477.90.23, U.S. tariff item 8477.90.00C
or Mexican tariff item 8477.90.03,
- subheading 8537.10.
8477.40-8477.80 A change to subheading 8477.40 through
8477.80 from any other heading; or
A change to subheading 8477.40 through
8477.80 from subheading 8477.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8477.90 A change to subheading 8477.90 from any other
heading.
8478.10 A change to subheading 8478.10 from any other
heading; or
A change to subheading 8478.10 from
subheading 8478.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8478.90 A change to subheading 8478.90 from any other
heading.
8479.10-8479.81 A change to subheading 8479.10 through
8479.81 from any other heading; or
A change to subheading 8479.10 through
8479.81 from subheading 8479.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8479.82
8479.82.aa A change to Mexican tariff item
8479.82.03 from any other tariff item,
except from Canadian tariff item
8479.90.61, 8479.90.62, 8479.90.63 or
8479.90.64, U.S. tariff item
8479.90.80B, 8479.90.80C, 8479.90.80D or
8479.90.80E or Mexican tariff item
8479.90.17, 8479.90.18, 8479.90.19 or
8479.90.20, or combinations thereof.
8479.82 A change to subheading 8479.82 from any other
heading; or
A change to subheading 8479.82 from
subheading 8479.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8479.89
8479.89.aa A change to Canadian tariff item
8479.89.91 or U.S. tariff item
8479.89.60B from any other tariff item,
except from Canadian tariff item
8479.90.61, 8479.90.62, 8479.90.63 or
8479.90.64, U.S. tariff item
8479.90.80B, 8479.90.80C, 8479.90.80D or
8479.90.80E or Mexican tariff item
8479.90.17, 8479.90.18, 8479.90.19 or
8479.90.20, or combinations thereof.
8479.89 A change to subheading 8479.89 from any other
heading; or
A change to subheading 8479.89 from
subheading 8479.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8479.90
8479.90.aa A change to Canadian tariff item
8479.90.61, U.S. tariff item 8479.90.80B
or Mexican tariff item 8479.90.17 from
any other tariff item.
8479.90.bb A change to Canadian tariff item
8479.90.62, U.S. tariff item 8479.90.80C
or Mexican tariff item 8479.90.18 from
any other tariff item.
8479.90.cc A change to Canadian tariff item
8479.90.63, U.S. tariff item 8479.90.80D
or Mexican tariff item 8479.90.19 from
any other tariff item.
8479.90.dd A change to Canadian tariff item
8479.90.64, U.S. tariff item 8479.90.80E
or Mexican tariff item 8479.90.20 from
any other tariff item.
8479.90 A change to subheading 8479.90 from any other
heading.
84.80 A change to heading 84.80 from any other
heading.
8481.10-8481.8024 A change to subheading 8481.10 through
8481.80 from any other heading; or
A change to subheading 8481.10 through
8481.80 from subheading 8481.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8481.90 A change to subheading 8481.90 from any other
heading.
8482.10-8482.8025 A change to subheading 8482.10 through
8482.80 from any subheading outside that
group, except from Canadian tariff item
8482.99.11 or 8482.99.91, U.S. tariff
item 8482.99.10A, 8482.99.30A,
8482.99.50A or 8482.99.70A or Mexican
tariff item 8482.99.01 or 8482.99.03; or
A change to subheading 8482.10 through
8482.80 from Canadian tariff item 8482.99.11
or 8482.99.91, U.S. tariff item 8482.99.10A,
8482.99.30A, 8482.99.50A or 8482.99.70A or
Mexican tariff item 8482.99.01 or 8482.99.03,
whether or not there is also a change from
any subheading outside that group, provided
there is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
____________________
24 If the good provided for in subheading 8481.20, 8481.30
or 8481.80 is for use in a motor vehicle of Chapter 87,
the provisions of Article 403 may apply.
25 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
8482.91-8482.99 A change to subheading 8482.91 through
8482.99 from any other heading.
8483.1026 A change to subheading 8483.10 from any
other heading; or
A change to subheading 8483.10 from
subheading 8483.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8483.2027 A change to subheading 8483.20 from any
other subheading, except from subheading
8482.10 through 8482.80, Canadian tariff item
8482.99.11 or 8482.99.91, U.S. tariff item
8482.99.10A, 8482.99.30A, 8482.99.50A or
8482.99.70A or Mexican tariff item 8482.99.01
or 8482.99.03 or subheading 8483.90; or
A change to subheading 8483.20 from
subheading 8482.10 through 8482.80, Canadian
tariff item 8482.99.11 or 8482.99.91, U.S.
tariff item 8482.99.10A, 8482.99.30A,
8482.99.50A or 8482.99.70A or Mexican tariff
item 8482.99.01 or 8482.99.03 or subheading
8483.90, whether or not there is also a
change from any other subheading, provided
there is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
____________________
26 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
27 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
8483.3028 A change to subheading 8483.30 from any
other heading; or
A change to subheading 8483.30 from
subheading 8483.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8483.40-8483.6029 A change to subheading 8483.40 through
8483.60 from any subheading outside that
group, except from subheading 8482.10
through 8482.80, Canadian tariff item
8482.99.11 or 8482.99.91, U.S. tariff
item 8482.99.10A, 8482.99.30A,
8482.99.50A or 8482.99.70A or Mexican
tariff item 8482.99.01 or 8482.99.03 or
subheading 8483.90; or
A change to subheading 8483.40 through
8483.60 from subheading 8482.10 through
8482.80, Canadian tariff item 8482.99.11 or
8482.99.91, U.S. tariff item 8482.99.10A,
8482.99.30A, 8482.99.50A or 8482.99.70A or
Mexican tariff item 8482.99.01 or 8482.99.03
or subheading 8483.90, whether or not there
is also a change from any subheading outside
that group, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8483.90 A change to subheading 8483.90 from any other
heading.
____________________
28 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
29 If the good provided for in subheading 8483.40 or
8483.50 is for use in a motor vehicle of Chapter 87,
the provisions of Article 403 may apply.
84.84-84.85 A change to heading 84.84 through 84.85
from any other heading, including
another heading within that group.
Chapter 85 Electrical Machinery and Equipment and
Parts Thereof; Sound Recorders and
Reproducers, Television Image and Sound
Recorders and Reproducers, and Parts and
Accessories of Such Articles
Note 1: For purposes of this Chapter, the term,
"printed circuit assembly", means a good
consisting of one or more printed
circuits of heading 85.34 with one or
more active elements assembled thereon,
with or without passive elements. For
purposes of this Note, "active elements"
means diodes, transistors and similar
semiconductor devices, whether or not
photosensitive, of heading 85.41, and
integrated circuits and microassemblies
of heading 85.42.
Note 2: Canadian tariff item 8517.90.31, U.S.
tariff item 8517.90.70A or Mexican
tariff item 8517.90.10 covers the
following parts for facsimile machines:
(a) control or command assemblies,
incorporating at least two of the
following: printed circuit assembly;
modem; hard or flexible (floppy) disc
drive; keyboard; user interface;
(b) optics module assemblies, incorporating
at least two of the following: optics
lamp; charge couples device and
appropriate optics; lenses; mirror;
(c) laser imaging assemblies, incorporating
at least two of the following:
photoreceptor belt or cylinder; toner
receptacle unit; toner developing unit;
charge/discharge unit; cleaning unit;
(d) ink jet marking assemblies,
incorporating at least two of the
following: thermal print head; ink
dispensing unit; nozzle and reservoir
unit; ink heater;
(e) thermal transfer imaging assemblies,
incorporating at least two of the
following: thermal print head; cleaning
unit; supply or take-up roller;
(f) ionographic imaging assemblies,
incorporating at least two of the
following: ion generation and emitting
unit; air assist unit; printed circuit
assembly; charge receptor belt or
cylinder; toner receptacle unit; toner
distribution unit; developer receptacle
and distribution unit; developing unit;
charge/discharge unit; cleaning unit;
(g) image fixing assemblies, incorporating
at least two of the following: fuser;
pressure roller; heating element;
release oil dispenser; cleaning unit;
electrical control;
(h) paper handling assemblies, incorporating
at least two of the following: paper
transport belt; roller; print bar;
carriage; gripper roller; paper storage
unit; exit tray; or
(i) combinations of the above specified
assemblies.
Note 3: For purposes of this Chapter:
(a) references to "high definition" as it
applies to television receivers and
cathode-ray tubes refers to goods having
(i) an aspect ratio of the screen equal
to or greater than 16:9, and
(ii) a viewing screen capable of
displaying more than 700 scanning
lines; and
(b) the video display diagonal is determined
by measuring the maximum straight line
dimension across the visible portion of
the face plate used for displaying
video.
Note 4: Canadian tariff item 8529.90.39, U.S.
tariff item 8529.90.10, 8529.90.20A or
8529.90.35A or Mexican tariff item
8529.90.18 covers the following parts of
television receivers:
(a) Video intermediate (IF) amplifying and
detecting systems;
(b) Video processing and amplification
systems;
(c) Synchronizing and deflection circuitry;
(d) Tuners and tuner control systems;
(e) Audio detection and amplification
systems.
Note 5: For purposes of Canadian tariff item
8540.91.10, U.S. tariff item 8540.91.40A
or Mexican tariff item 8540.91.03, the
term "front panel assembly" refers to an
assembly which consists of a glass panel
and a shadow mask or aperture grille,
attached for ultimate use, which is
suitable for incorporation into a color
cathode-ray television picture tube
(including video monitor cathode-ray
tube), and which has undergone the
necessary chemical and physical
processes for imprinting phosphors on
the glass panel with sufficient
precision to render a video image when
excited by a stream of electrons.
85.0130 A change to heading 85.01 from any other
heading, except from Canadian tariff
item 8503.00.11 through 8503.00.19, U.S.
tariff item 8503.00.40A, 8503.00.60A or
8503.00.60C or Mexican tariff item
8503.00.01 or 8503.00.05; or
____________________
30 If the good provided for in subheading 8501.10,
8501.20, 8501.31 or 8501.32 is for use in a motor
vehicle of Chapter 87, the provisions of Article 403
may apply.
A change to heading 85.01 from Canadian
tariff item 8503.00.11 through 8503.00.19,
U.S. tariff item 8503.00.40A, 8503.00.60A or
8503.00.60C or Mexican tariff item 8503.00.01
or 8503.00.05, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
85.02 A change to heading 85.02 from any other
heading, except from heading 84.06,
84.11, 85.01 or 85.03; or
A change to heading 85.02 from heading 84.06,
84.11, 85.01 or 85.03, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
85.03 A change to heading 85.03 from any other
heading.
8504.10-8504.34 A change to subheading 8504.10 through
8504.34 from any other heading; or
A change to subheading 8504.10 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8504.40
8504.40.aa A change to Canadian tariff item
8504.40.40, U.S. tariff item 8504.40.00A
or 8504.40.00B or Mexican tariff item
8504.40.12 from any other subheading.
8504.40.bb A change to Canadian tariff item
8504.40.50, U.S. tariff item 8504.40.00C
or 8504.40.00D or Mexican tariff item
8504.40.13 from any other subheading,
except from Canadian tariff item
8504.90.12, 8504.90.13, 8504.90.14,
8504.90.15 or 8504.90.16, U.S. tariff
item 8504.90.00A or Mexican tariff item
8504.90.07.
8504.40 A change to subheading 8504.40 from any other
heading; or
A change to subheading 8504.40 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8504.50 A change to subheading 8504.50 from any other
heading; or
A change to subheading 8504.50 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8504.90
8504.90.bb A change to Canadian tariff item
8504.90.80, U.S. tariff item 8504.90.00B
or Mexican tariff item 8504.90.08 from
any other tariff item.
8504.90 A change to subheading 8504.90 from any other
heading.
8505.11-8505.30 A change to subheading 8505.11 through
8505.30 from any other heading;or
A change to subheading 8505.11 through
8505.30 from subheading 8505.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8505.90 A change to subheading 8505.90 from any other
heading.
8506.11-8506.20 A change to subheading 8506.11 through
8506.20 from any other heading; or
A change to subheading 8506.11 through
8506.20 from subheading 8506.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8506.90 A change to subheading 8506.90 from any other
heading.
8507.10-8507.8031 A change to subheading 8507.10 through
8507.80 from any other heading; or
A change to subheading 8507.10 through
8507.80 from subheading 8507.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8507.90 A change to subheading 8507.90 from any other
heading.
____________________
31 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
8508.10-8508.80 A change to subheading 8508.10 through
8508.80 from any other subheading
outside that group, except from heading
85.01 or Canadian tariff item
8508.90.10, U.S. tariff item 8508.90.00A
or Mexican tariff item 8508.90.01; or
A change to subheading 8508.10 through
8508.80 from heading 85.01 or Canadian tariff
item 8508.90.10, U.S. tariff item 8508.90.00A
or Mexican tariff item 8508.90.01, whether or
not there is also a change from any other
subheading, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8508.90 A change to subheading 8508.90 from any other
heading.
8509.10-8509.40 A change to subheading 8509.10 through
8509.40 from any other subheading
outside that group, except from heading
85.01 or Canadian tariff item
8509.90.11, 8509.90.21, 8509.90.31 or
8509.90.41, U.S. tariff item
8509.90.20A, 8509.90.30A or 8509.90.40A
or Mexican tariff item 8509.90.02; or
A change to subheading 8509.10 through
8509.40 from heading 85.01 or Canadian tariff
item 8509.90.11, 8509.90.21, 8509.90.31 or
8509.90.41, U.S. tariff item 8509.90.20A,
8509.90.30A or 8509.90.40A or Mexican tariff
item 8509.90.02, whether or not there is also
a change from any other subheading, provided
there is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8509.80 A change to subheading 8509.80 from any other
heading; or
A change to subheading 8509.80 from
subheading 8509.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8509.90 A change to subheading 8509.90 from any other
heading.
8510.10-8510.20 A change to subheading 8510.10 through
8510.20 from any other heading; or
A change to subheading 8510.10 through
8510.20 from subheading 8510.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8510.90 A change to subheading 8510.90 from any other
heading.
8511.10-8511.8032 A change to subheading 8511.10 through
8511.80 from any other heading; or
A change to subheading 8511.10 through
8511.80 from subheading 8511.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
____________________
32 If the good provided for in subheading 8511.30, 8511.40
or 8511.50 is for use in a motor vehicle of Chapter 87,
the provisions of Article 403 may apply.
used.
8511.90 A change to subheading 8511.90 from any other
heading.
8512.10-8512.4033 A change to subheading 8512.10 through
8512.40 from any other heading; or
A change to subheading 8512.10 through
8512.40 from subheading 8512.90, whether or
not there is also a change from any other
heading, provided there is also a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8512.90 A change to subheading 8512.90 from any other
heading.
8513.10 A change to subheading 8513.10 from any other
heading; or
A change to subheading 8513.10 from
subheading 8513.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8513.90 A change to subheading 8513.90 from any other
heading.
8514.10-8514.40 A change to subheading 8514.10 through
8514.40 from any other heading; or
A change to subheading 8514.10 through
8514.40 from subheading 8514.90, whether or
not there is also a change from any other
heading, provided there is a regional value
____________________
33 If the good provided for in subheading 8512.20 or
8512.40 is for use in a motor vehicle of Chapter 87,
the provisions of Article 403 may apply.
content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8514.90 A change to subheading 8514.90 from any other
heading.
8515.11-8515.80 A change to subheading 8515.11 through
8515.80 from any other heading; or
A change to subheading 8515.11 through
8515.80 from subheading 8515.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8515.90 A change to subheading 8515.90 from any other
heading.
8516.10-8516.29 A change to subheading 8516.10 through
8516.29 from subheading 8516.80 or any
other heading; or
A change to subheading 8516.10 through
8516.29 from subheading 8516.90, whether or
not there is also a change from subheading
8516.80 or any other heading, provided there
is a regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8516.31 A change to subheading 8516.31 from any other
subheading, except from subheading 8516.80 or
heading 85.01.
8516.32 A change to subheading 8516.32 from
subheading 8516.80 or any other heading; or
A change to subheading 8516.32 from
subheading 8516.90, whether or not there is
also a change from subheading 8516.80 or any
other heading, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8516.33 A change to subheading 8516.33 from any other
subheading, except from subheading 8516.80,
heading 85.01 or Canadian tariff item
8516.90.21, U.S. tariff item 8516.90.60A or
Mexican tariff item 8516.90.07.
8516.40 A change to subheading 8516.40 from any other
subheading, except from heading 84.02,
subheading 8481.40 or Canadian tariff item
8516.90.71, U.S. tariff item 8516.90.60B or
Mexican tariff item 8516.90.08.
8516.50 A change to subheading 8516.50 from any other
subheading, except from Canadian tariff item
8516.90.41 or 8516.90.42, U.S. tariff item
8516.90.60C or 8516.90.60D or Mexican tariff
item 8516.90.09 or 8516.90.10.
8516.60
8516.60.aa A change to Canadian tariff item
8516.60.20, U.S. tariff item 8516.60.40
or Mexican tariff item 8516.60.02 from
any other tariff item, except from
Canadian tariff item 8516.90.51,
8516.90.52, 8516.90.53, 8537.10.11,
8537.10.19, 8537.10.41 or 8537.10.49,
U.S. tariff item 8516.90.20A,
8516.90.20B, 8516.90.20C or 8537.10.00A
or Mexican tariff item 8516.90.11,
8516.90.12, 8516.90.13 or 8537.10.05.
8516.60 A change to subheading 8516.60 from
subheading 8516.80 or any other heading; or
A change to subheading 8516.60 from
subheading 8516.90, whether or not there is
also a change from subheading 8516.80 or any
other heading, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8516.71 A change to subheading 8516.71 from
subheading 8516.80 or any other heading; or
A change to subheading 8516.71 from
subheading 8516.90, whether or not there is
also a change from subheading 8516.80 or any
other heading, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8516.72 A change to subheading 8516.72 from any other
subheading, except from Canadian tariff item
8516.90.61, U.S. tariff item 8516.90.60E or
Mexican tariff item 8516.90.03 or subheading
9032.10; or
A change to subheading 8516.72 from Canadian
tariff item 8516.90.61, U.S. tariff item
8516.90.60E or Mexican tariff item 8516.90.03
or subheading 9032.10, whether or not there
is also a change from any other subheading,
provided there is a regional value content of
not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8516.79 A change to subheading 8516.79 from
subheading 8516.80 or from any other heading;
or
A change to subheading 8516.79 from
subheading 8516.90, whether or not there is
also a change from subheading 8516.80 or any
other heading, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8516.80 A change to subheading 8516.80 from any other
heading; or
A change to subheading 8516.80 from
subheading 8516.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8516.90
8516.90.cc A change to Canadian tariff item
8516.90.42, U.S. tariff item 8516.90.60C
or Mexican tariff item 8516.90.09 from
any other tariff item.
8516.90.dd A change to Canadian tariff item
8516.90.41, U.S. tariff item 8516.90.60D
or Mexican tariff item 8516.90.10 from
any other tariff item.
8516.90.ee A change to Canadian tariff item
8516.90.51, U.S. tariff item 8516.90.20A
or Mexican tariff item 8516.90.11 from
any other tariff item.
8516.90.ff A change to Canadian tariff item
8516.90.52, U.S. tariff item 8516.90.20B
or Mexican tariff item 8516.90.12 from
any other tariff item.
8516.90.gg A change to Canadian tariff item
8516.90.53, U.S. tariff item 8516.90.20C
or Mexican tariff item 8516.90.13 from
any other tariff item.
8516.90 A change to subheading 8516.90 from any other
heading.
8517.10 A change to subheading 8517.10 from any other
subheading, except from Canadian tariff item
8517.90.11, 8517.90.12, 8517.90.13,
8517.90.14 or 8517.90.41, U.S. tariff item
8517.90.30A, 8517.90.05B, 8517.90.10B,
8517.90.15B, 8517.90.30B, 8517.90.35B,
8517.90.40B, 8517.90.55B, 8517.90.60B,
8517.90.70D or 8517.90.80B or Mexican tariff
item 8517.90.12 or 8517.90.15.
8517.20-8517.30 A change to subheading 8517.20 through
8517.30 from any other subheading,
including another subheading within that
group, provided that, with respect to
printed circuit assemblies (PCAs) of
Canadian tariff item 8473.30.21,
8473.30.22, 8517.90.11, 8517.90.12,
8517.90.13, 8517.90.14, 8517.90.43 or
8517.90.44, U.S. tariff item
8473.30.40A, 8517.90.05A, 8517.90.05B,
8517.90.10A, 8517.90.10B,8517.90.15A,
8517.90.15B, 8517.90.30B, 8517.90.35A,
8517.90.35B, 8517.90.40A, 8517.90.40B,
8517.90.55B, 8517.90.60A, 8517.90.60B,
8517.90.70D or 8517.90.80B or Mexican
tariff item 8473.30.03, 8517.90.13 or
8517.90.15:
(a) except as provided in subparagraph (b),
for each multiple of nine PCAs, or any
portion thereof, that is contained in
the good, only one PCA may be a non-
originating PCA, and
(b) if the good contains less than three
PCAs, all of the PCAs must be
originating PCAs.
8517.40
8517.40.bb A change to Canadian tariff item
8517.40.91, U.S. tariff item 8517.40.50
or Mexican tariff item 8517.40.03 from
any other subheading, provided that,
with respect to printed circuit
assemblies (PCAs) of Canadian tariff
item 8473.30.21, 8473.30.22, 8517.90.11,
8517.90.12, 8517.90.13, 8517.90.14 or
8517.90.43, U.S. tariff item
8473.30.40A, 8517.90.05A, 8517.90.05B,
8517.90.10A, 8517.90.10B,8517.90.15A,
8517.90.15B, 8517.90.30B, 8517.90.35A,
8517.90.35B, 8517.90.40A, 8517.90.40B,
8517.90.55B, 8517.90.60A, 8517.90.60B,
8517.90.70D or 8517.90.80B or Mexican
tariff item 8473.30.03, 8517.90.13 or
8517.90.15:
(a) except as provided in subparagraph (b),
for each multiple of nine PCAs, or any
portion thereof, that is contained in
the good, only one PCA may be a non-
originating PCA, and
(b) if the good contains less than three
PCAs, all of the PCAs must be
originating PCAs.
8517.40 A change to subheading 8517.40 from any other
subheading.
8517.81
8517.81.aa A change to Mexican tariff item
8517.81.05 from any other tariff item,
except from Canadian tariff item
8517.90.31, U.S. tariff item 8517.90.70A
or Mexican tariff item 8517.90.10.
8517.81 A change to subheading 8517.81 from any other
subheading, provided that, with respect to
printed circuit assemblies (PCAs) of Canadian
tariff item 8473.30.21, 8473.30.22,
8517.90.11, 8517.90.12, 8517.90.13,
8517.90.14 or 8517.90.43, U.S. tariff item
8473.30.40A, 8517.90.05A, 8517.90.05B,
8517.90.10A, 8517.90.10B,8517.90.15A,
8517.90.15B, 8517.90.30B, 8517.90.35A,
8517.90.35B, 8517.90.40A, 8517.90.40B,
8517.90.55B, 8517.90.60A, 8517.90.60B,
8517.90.70D or 8517.90.80B or Mexican tariff
item 8473.30.03, 8517.90.13 or 8517.90.15:
(a) except as provided in subparagraph (b),
for each multiple of nine PCAs, or any
portion thereof, that is contained in
the good, only one PCA may be a non-
originating PCA, and
(b) if the good contains less than three
PCAs, all of the PCAs must be
originating PCAs.
8517.82
8517.82.aa A change to Canadian tariff item
8517.82.10 or U.S. tariff item
8517.82.00A from any other tariff item,
except from Canadian tariff item
8517.90.31, U.S. tariff item 8517.90.70A
or Mexican tariff item 8517.90.10.
8517.82 A change to subheading 8517.82 from any other
subheading.
8517.90
8517.90.aa A change to Canadian tariff item
8517.90.41, U.S. tariff item 8517.90.30A
or Mexican tariff item 8517.90.12 from
any other tariff item, except from
Canadian tariff item 8517.90.11,
8517.90.12, 8517.90.13 or 8517.90.14,
U.S. tariff item 8517.90.05B,
8517.90.10B, 8517.90.15B, 8517.90.30B,
8517.90.35B, 8517.90.40B, 8517.90.55B,
8517.90.60B, 8517.90.70D or 8517.90.80B
or Mexican tariff item 8517.90.15.
8517.90.bb A change to Canadian tariff item
8517.90.43 or 8517.90.44, U.S. tariff
item 8517.90.05A, 8517.90.10A,
8517.90.15A, 8517.90.35A, 8517.90.40A or
8517.90.60A or Mexican tariff item
8517.90.13 from any other tariff item,
provided that, with respect to printed
circuit assemblies (PCAs) of Canadian
tariff item 8473.30.21, 8473.30.22,
8517.90.11, 8517.90.12, 8517.90.13,
8517.90.14, 8517.90.42, 8517.90.45 or
8517.90.46, U.S. tariff item
8473.30.40A, 8517.90.05B, 8517.90.10B,
8517.90.15B, 8517.90.30B, 8517.90.35B,
8517.90.40B, 8517.90.55A, 8517.90.55B,
8517.90.60B, 8517.90.70C, 8517.90.70D,
8517.90.80A or 8517.90.80B or Mexican
tariff item 8473.30.03, 8517.90.14 or
8517.90.15:
(a) except as provided in subparagraph (b),
for each multiple of nine PCAs, or any
portion thereof, that is contained in
the good, only one PCA may be a non-
originating PCA, and
(b) if the good contains less than three
PCAs, all of the PCAs must be
originating PCAs.
8517.90.cc A change to Canadian tariff item
8517.90.31, U.S. tariff item 8517.90.70A
or Mexican tariff item 8517.90.10 from
any other tariff item.
8517.90.dd A change to Canadian tariff item
8517.90.42, 8517.90.45 or 8517.90.46,
U.S. tariff item 8517.90.55A,
8517.90.70C or 8517.90.80A or Mexican
tariff item 8517.90.14 from any other
tariff item.
8517.90.ee A change to Canadian tariff item
8517.90.11, 8517.90.12, 8517.90.13 or
8517.90.14, U.S. tariff item
8517.90.05B, 8517.90.10B, 8517.90.15B,
8517.90.30B, 8517.90.35B, 8517.90.40B,
8517.90.55B, 8517.90.60B, 8517.90.70D or
8517.90.80B or Mexican tariff item
8517.90.15 from any other tariff item.
8517.90.ff A change to Canadian tariff item
8517.90.21, 8517.90.22, 8517.90.23 or
8517.90.24, U.S. tariff item
8517.90.05C, 8517.90.10C, 8517.90.15C,
8517.90.30C, 8517.90.35C, 8517.90.40C,
8517.90.55C, 8517.90.60C, 8517.90.70E or
8517.90.80C or Mexican tariff item
8517.90.16 from any other heading.
8517.90.gg A change to Canadian tariff item
8517.90.91, 8517.90.92 or 8517.90.93,
U.S. tariff item 8517.90.05D,
8517.90.10D, 8517.90.15D, 8517.90.30D,
8517.90.35D, 8517.90.40D, 8517.90.55D,
8517.90.60D, 8517.90.70F or 8517.90.80D
or Mexican tariff item 8517.90.99 from
Canadian tariff item 8517.90.21,
8517.90.22, 8517.90.23 or 8517.90.24,
U.S. tariff item 8517.90.05C,
8517.90.10C, 8517.90.15C, 8517.90.30C,
8517.90.35C, 8517.90.40C, 8517.90.55C,
8517.90.60C, 8517.90.70E or 8517.90.80C
or Mexican tariff item 8517.90.16 or any
other heading.
8517.90 A change to subheading 8517.90 from any other
heading.
8518.10-8518.21 A change to subheading 8518.10 through
8518.21 from any other heading; or
A change to subheading 8518.10 through
8518.21 from subheading 8518.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8518.22 A change to subheading 8518.22 from any other
heading; or
A change to subheading 8518.22 from
subheading 8518.29 or 8518.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8518.29 A change to subheading 8518.29 from any other
heading; or
A change to subheading 8518.29 from
subheading 8518.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8518.30
8518.30.aa A change to Canadian tariff item
8518.30.10, U.S. tariff item 8518.30.10
or Mexican tariff item 8518.30.03 from
any other tariff item.
8518.30 A change to subheading 8518.30 from any other
heading; or
A change to subheading 8518.30 from
subheading 8518.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8518.40-8518.50 A change to subheading 8518.40 through
8518.50 from any other heading; or
A change to subheading 8518.40 through
8518.50 from subheading 8518.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8518.90 A change to subheading 8518.90 from any other
heading.
8519.10-8519.9934 A change to subheading 8519.10 through
8519.99 from any other subheading,
including another subheading within that
group, except from Canadian tariff item
8522.90.31, 8522.90.32 or 8522.90.39,
U.S. tariff item 8522.90.40A,
8522.90.40B, 8522.90.60A or 8522.90.90A
or Mexican tariff item 8522.90.14.
8520.10-8520.90 A change to subheading 8520.10 through
8520.90 from any other subheading,
including another subheading within that
group, except from Canadian tariff item
8522.90.31, 8522.90.32, 8522.90.33,
8522.90.34 or 8522.90.39, U.S. tariff
item 8522.90.40A, 8522.90.40B,
8522.90.60A or 8522.90.90A or Mexican
tariff item 8522.90.14.
____________________
34 If the good provided for in subheading 8519.91 is for
use in a motor vehicle of Chapter 87, the provisions of
Article 403 may apply.
8521.10-8521.90 A change to subheading 8521.10 through
8521.90 from any other subheading,
including another subheading within that
group, except from Canadian tariff item
8522.90.31, 8522.90.32, 8522.90.34,
8522.90.35 or 8522.90.39, U.S. tariff
item 8522.90.40A, 8522.90.40B,
8522.90.60A or 8522.90.90A or Mexican
tariff item 8522.90.14.
85.22 A change to heading 85.22 from any other
heading.
85.23-85.24 A change to heading 85.23 through 85.24
from any other heading, including
another heading within that group.
8525.10-8525.20 A change to subheading 8525.10 through
8525.20 from any subheading outside that
group, provided that, with respect to
printed circuit assemblies (PCAs) of
Canadian tariff item 8529.90.11,
8529.90.12, 8529.90.13 or 8529.90.14,
U.S. tariff item 8529.90.30A,
8529.90.35D, 8529.90.40A, 8529.90.45A or
8529.90.50A or Mexican tariff item
8529.90.16:
(a) except as provided in subparagraph (b),
for each multiple of nine PCAs, or any
portion thereof, that is contained in
the good, only one PCA may be a non-
originating PCA, and
(b) if the good contains less than three
PCAs, all of the PCAs must be
originating PCAs.
8525.30
8525.30.aa A change to Canadian tariff item
8525.30.11 or 8525.30.21, U.S. tariff
item 8525.30.00A or Mexican tariff item
8525.30.03 from any other tariff item,
except from Canadian tariff item
8525.30.12 or 8525.30.22, U.S. tariff
item 8525.30.00B or Mexican tariff item
8525.30.04.
8525.30 A change to subheading 8525.30 from any other
subheading, except from Canadian tariff item
8529.90.11, 8529.90.12, 8529.90.13 or
8529.90.14, U.S. tariff item 8529.90.30A,
8529.90.35D, 8529.90.40A, 8529.90.40B,
8529.90.45A or 8529.90.50A or Mexican tariff
item 8529.90.16.
8526.10 A change to subheading 8526.10 from any other
subheading, except from subheading 8525.20,
Canadian tariff item 8529.90.20, U.S. tariff
item 8529.90.40C, 8529.90.40D or 8529.90.45B
or Mexican tariff item 8529.90.17 or from
more than two of the following:
- display unit provided for in subheading
8471.92 or 8529.90, incorporating a
cathode-ray tube, flat panel screen or
similar display,
- subheading 8529.10,
- Canadian tariff item 8529.90.11,
8529.90.12, 8529.90.13 or 8529.90.14,
U.S. tariff item 8529.90.30A,
8529.90.35D, 8529.90.40A, 8529.90.40B,
8529.90.45A or 8529.90.50A or Mexican
tariff item 8529.90.16.
8526.91-8526.92 A change to subheading 8526.91 through
8526.92 from any other heading, except
from heading 85.29; or
A change to subheading 8526.91 through
8526.92 from heading 85.29, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8527.11-8527.3935 A change to subheading 8527.11 through
8527.39 from any other subheading,
including another subheading within that
group, except from Canadian tariff item
8529.90.11, 8529.90.12, 8529.90.13 or
8529.90.14, U.S. tariff item
8529.90.30A, 8529.90.35D, 8529.90.40A,
8529.90.40B, 8529.90.45A or 8529.90.50A
or Mexican tariff item 8529.90.16.
8527.90 A change to subheading 8527.90 from any other
subheading, provided that, with respect to
printed circuit assemblies (PCAs) of Canadian
tariff item 8529.90.11, 8529.90.12,
8529.90.13 or 8529.90.14, U.S. tariff item
8529.90.30A, 8529.90.35D, 8529.90.40A,
8529.90.40B, 8529.90.45A or 8529.90.50A or
Mexican tariff item 8529.90.16:
(a) except as provided in subparagraph (b),
for each multiple of nine PCAs, or any
portion thereof, that is contained in
the good, only one PCA may be a non-
originating PCA, and
(b) if the good contains less than three
PCAs, all of the PCAs must be
originating PCAs.
8528.10
____________________
35 If the good provided for in subheading 8527.21 or
8527.29 is for use in a motor vehicle of Chapter 87,
the provisions of Article 403 may apply.
8528.10.aa A change to Canadian tariff item
8528.10.21 or 8528.10.30, U.S. tariff
item 8528.10.30A or 8528.10.60B or
Mexican tariff item 8528.10.01 from any
other heading, except from Canadian
tariff item 8529.90.11, 8529.90.12,
8529.90.13, 8529.90.14, 8529.90.31 or
8529.90.39, U.S. tariff item 8529.90.10,
8529.90.20A, 8529.90.20B, 8529.90.30A,
8529.90.35A, 8529.90.35B, 8529.90.35D,
8529.90.40A, 8529.90.40B, 8529.90.45A or
8529.90.50A or Mexican tariff item
8529.90.16, 8529.90.18 or 8529.90.19.
8528.10.bb A change to Canadian tariff item
8528.10.22 or 8528.10.40, U.S. tariff
item 8528.10.30B or 8528.10.60C or
Mexican tariff item 8528.10.02 from
Canadian tariff item 8528.10.11 or
8528.10.19, U.S. tariff item 8528.10.60A
or Mexican tariff item 8528.10.07 or any
other heading, except from Canadian
tariff item 8540.11.22, U.S. tariff item
8540.11.00A or Mexican tariff item
8540.11.01 or more than one of the
following:
- Canadian tariff item 7011.20.10, U.S.
tariff item 7011.20.00A or Mexican
tariff item 7011.20.02 or 7011.20.03,
- Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
Note: Commencing on January 1, 1999, the above
rule of origin for tariff item
8528.10.bb shall be replaced by the
following:
8528.10.bb A change to Canadian tariff item
8528.10.22 or 8528.10.40, U.S. tariff
item 8528.10.30B or Mexican tariff item
8528.10.02 from any other heading,
except from Canadian tariff item
8529.90.31 or 8540.11.22, U.S. tariff
item 8529.90.20B, 8529.90.35B or
8540.11.00A or Mexican tariff item
8529.90.19 or 8540.11.01 or more than
one of the following:
- Canadian tariff item 7011.20.10, U.S.
tariff item 7011.20.00A or Mexican
tariff item 7011.20.02 or 7011.20.03,
- Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8528.10.cc A change to Canadian tariff item
8528.10.24 or 8528.10.60, U.S. tariff
item 8528.10.30C or 8529.10.60D or
Mexican tariff item 8528.10.03 from
Canadian tariff item 8528.10.11 or
8528.10.19, U.S. tariff item 8528.10.60A
or Mexican tariff item 8528.10.07 or any
other heading, except from Canadian
tariff item 8540.12.90, U.S. tariff item
8540.12.40A or Mexican tariff item
8540.12.99 or more than one of the
following:
- Canadian tariff item 7011.20.10, U.S.
tariff item 7011.20.00A or Mexican
tariff item 7011.20.02 or 7011.20.03,
- Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8528.10.dd A change to Canadian tariff item
8528.10.23 or 8528.10.50, U.S. tariff
item 8528.10.30D or 8528.10.60E or
Mexican tariff item 8528.10.04 from
Canadian tariff item 8528.10.11 or
8528.10.19, U.S. tariff item 8528.10.60A
or Mexican tariff item 8528.10.07 or any
other heading, except from Canadian
tariff item 8540.11.11, 8540.11.12 or
8540.91.10, U.S. tariff item
8540.11.00C, 8540.11.00D or 8540.91.40A
or Mexican tariff item 8540.11.03,
8540.11.04 or 8540.91.03. In addition,
no more than half the number of
semiconductors of Canadian tariff item
8542.11.10, U.S. tariff item 8542.11.00A
or Mexican tariff item 8542.11.02, used
in the television receiver component,
may be non-originating; or
A change to Canadian tariff item 8528.10.23
or 8528.10.50, U.S. tariff item 8528.10.30D
or 8528.10.60E or Mexican tariff item
8528.10.04 from Canadian tariff item
8528.10.11 or 8528.10.19, U.S. tariff item
8528.10.60A or Mexican tariff item 8528.10.07
or any other heading, except from Canadian
tariff item 8540.11.11, 8540.11.12 or
8540.91.10, U.S. tariff item 8540.11.00C,
8540.11.00D or 8540.91.40A or Mexican tariff
item 8540.11.03, 8540.11.04 or 8540.91.03.
In addition, the regional value content must
be not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8528.10.ee A change to Canadian tariff item
8528.10.25 or 8528.10.70, U.S. tariff
item 8528.10.30E or 8528.10.60F or
Mexican tariff item 8528.10.05 from
Canadian tariff item 8528.10.11 or
8528.10.19, U.S. tariff item 8528.10.60A
or Mexican tariff item 8528.10.07 or any
other heading, except from Canadian
tariff item 8540.12.10 or 8540.91.10,
U.S. tariff item 8540.12.40B or
8540.91.40A or Mexican tariff item
8540.12.01 or 8540.91.03. In addition,
no more than half the number of
semiconductors of Canadian tariff item
8542.11.10, U.S. tariff item 8542.11.00A
or Mexican tariff item 8542.11.04, used
in the television receiver component,
may be non-originating; or
A change to Canadian tariff item 8528.10.25
or 8528.10.70, U.S. tariff item 8528.10.30E
or 8528.10.60F or Mexican tariff item
8528.10.05 from Canadian tariff item
8528.10.11 or 8528.10.19, U.S. tariff item
8528.10.60A or Mexican tariff item 8528.10.07
or any other heading, except from Canadian
tariff item 8540.12.10 or 8540.91.10, U.S.
tariff item 8540.12.40B or 8540.91.40A or
Mexican tariff item 8540.12.01 or 8540.91.03.
In addition, the regional value content must
be not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8528.10.ff A change to Canadian tariff item
8528.10.26 or 8528.10.80, U.S. tariff
item 8528.10.30F or 8528.10.60G or
Mexican tariff item 8528.10.06 from
Canadian tariff item 8528.10.11 or
8528.10.19, U.S. tariff item 8528.10.60A
or Mexican tariff item 8528.10.07 or any
other heading, except from Canadian
tariff item 8529.90.40, U.S. tariff item
8529.90.35C or Mexican tariff item
8529.90.20.
8528.10.gg A change to Canadian tariff item
8528.10.11 or 8528.10.19, U.S. tariff
item 8528.10.60A or Mexican tariff item
8528.10.07 from any other heading.
8528.10 A change to subheading 8528.10 from Canadian
tariff item 8528.10.11 or 8528.10.19, U.S.
tariff item 8528.10.60A or Mexican tariff
item 8528.10.07 or any other heading,
provided there is a regional value content of
not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8528.20 A change to subheading 8528.20 from any other
heading, provided that, with respect to
printed circuit assemblies (PCAs) of Canadian
tariff item 8529.90.11, 8529.90.12,
8529.90.13 or 8529.90.14, U.S. tariff item
8529.90.30A, 8529.90.35D, 8529.90.40A,
8529.90.40B, 8529.90.45A or 8529.90.50A or
Mexican tariff item 8529.90.16:
(a) except as provided in subparagraph (b),
for each multiple of nine PCAs, or any
portion thereof, that is contained in
the good, only one PCA may be a non-
originating PCA, and
(b) if the good contains less than three
PCAs, all of the PCAs must be
originating PCAs.
8529.10 A change to subheading 8529.10 from any other
heading.
8529.90
8529.90.aa A change to Canadian tariff item
8529.90.11, 8529.90.12, 8529.90.13 or
8529.90.14, U.S. tariff item
8529.90.30A, 8529.90.35D, 8529.90.40A,
8529.90.40B, 8529.90.45A or 8529.90.50A
or Mexican tariff item 8529.90.16 from
any other tariff item.
8529.90.bb A change to Canadian tariff item
8529.90.20, U.S. tariff item
8529.90.40C, 8529.90.40D or 8529.90.45B
or Mexican tariff item 8529.90.17 from
any other tariff item.
8529.90.cc A change to Canadian tariff item
8529.90.39, U.S. tariff item 8529.90.10,
8529.90.20A or 8529.90.35A or Mexican
tariff item 8529.90.18 from any other
tariff item.
8529.90.dd A change to Canadian tariff item
8529.90.31, U.S. tariff item 8529.90.20B
or 8529.90.35B or Mexican tariff item
8529.90.19 from any other tariff item.
8529.90.ee A change to Canadian tariff item
8529.90.40, U.S. tariff item 8529.90.35C
or Mexican tariff item 8529.90.20 from
any other tariff item.
8529.90.ff A change to Canadian tariff item
8529.90.51, 8529.90.52, 8529.90.53 or
8529.90.54, U.S. tariff item
8529.90.30B, 8529.90.35E, 8529.90.40E,
8529.90.40F, 8529.90.45C or 8529.90.50B
or Mexican tariff item 8529.90.21 from
any other tariff item.
8529.90.gg A change to Canadian tariff item
8529.90.60, U.S. tariff item
8529.90.30C, 8529.90.35F or 8529.90.50C
or Mexican tariff item 8529.90.22 from
any other heading; or
No required change in tariff classification
to Canadian tariff item 8529.90.60, U.S.
tariff item 8529.90.30C, 8529.90.35F or
8529.90.50C or Mexican tariff item
8529.90.22, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8529.90 A change to subheading 8529.90 from any other
heading.
8530.10-8530.80 A change to subheading 8530.10 through
8530.80 from any other heading; or
A change to subheading 8530.10 through
8530.80 from subheading 8530.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8530.90 A change to subheading 8530.90 from any other
heading.
8531.10 A change to subheading 8531.10 from any other
subheading, except from Canadian tariff item
8531.90.11 or 8531.90.21, U.S. tariff item
8531.90.00A or Mexican tariff item
8531.90.03.
8531.20 A change to subheading 8531.20 from any other
heading; or
A change to subheading 8531.20 from
subheading 8531.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8531.80
8531.80.aa A change to U.S. tariff item 8531.80.00A
or 8531.80.00B from any other
subheading, provided that, with respect
to printed circuit assemblies (PCAs) of
Canadian tariff item 8531.90.11 or
8531.90.21, U.S. tariff item 8531.90.00A
or Mexican tariff item 8531.90.03:
(a) except as provided in subparagraph (b),
for each multiple of nine PCAs, or any
portion thereof, that is contained in
the good, only one PCA may be a non-
originating PCA, and
(b) if the good contains less than three
PCAs, all of the PCAs must be
originating PCAs.
8531.80 A change to subheading 8531.80 from any other
heading; or
A change to subheading 8531.80 from
subheading 8531.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8531.90 A change to subheading 8531.90 from any other
heading.
8532.10 A change to subheading 8532.10 from any other
heading; or
A change to subheading 8532.10 from
subheading 8532.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8532.21-8532.30 A change to subheading 8532.21 through
8532.30 from any other subheading,
including another subheading within that
group.
8532.90 A change to subheading 8532.90 from any other
heading.
8533.10-8533.39 A change to subheading 8533.10 through
8533.39 from any other subheading,
including another subheading within that
group.
8533.40 A change to subheading 8533.40 from any other
subheading, except from Canadian tariff item
8533.90.11, U.S. tariff item 8533.90.00A or
Mexican tariff item 8533.90.02.
8533.90 A change to subheading 8533.90 from any other
heading.
85.34 A change to heading 85.34 from any other
heading.
85.35
8535.90.aa A change to Canadian tariff item
8535.90.30, U.S. tariff item 8535.90.00A
or Mexican tariff item 8535.90.08,
8535.90.20 or 8535.90.24 from any other
tariff item, except from Canadian tariff
item 8538.90.20, U.S. tariff item
8538.90.00B or Mexican tariff item
8538.90.12; or
A change to Canadian tariff item 8535.90.30,
U.S. tariff item 8535.90.00A or Mexican
tariff item 8535.90.08, 8535.90.20 or
8535.90.24 from Canadian tariff item
8538.90.20, U.S. tariff item 8538.90.00B or
Mexican tariff item 8538.90.12, whether or
not there is also a change from any other
tariff item, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
85.35 A change to heading 85.35 from any other
heading, except from Canadian tariff
item 8538.90.30 or 8538.90.60, U.S.
tariff item 8538.90.00A or 8538.90.00C
or Mexican tariff item 8538.90.13 or
8538.90.14; or
A change to heading 85.35 from Canadian
tariff item 8538.90.30 or 8538.90.60, U.S.
tariff item 8538.90.00A or 8538.90.00C or
Mexican tariff item 8538.90.13 or 8538.90.14,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
85.3636
8536.30.aa A change to Canadian tariff item
8536.30.12, U.S. tariff item 8536.30.00A
or Mexican tariff item 8536.30.05 from
any other tariff item, except from
Canadian tariff item 8538.90.20, U.S.
tariff item 8538.90.00B or Mexican
tariff item 8538.90.12; or
A change to Canadian tariff item 8536.30.12,
U.S. tariff item 8536.30.00A or Mexican
tariff item 8536.30.05 from Canadian tariff
____________________
36 If the good provided for in subheading 8536.50 or
8536.90 is for use in a motor vehicle of Chapter 87,
the provisions of Article 403 may apply.
item 8538.90.20, U.S. tariff item 8538.90.00B
or Mexican tariff item 8538.90.12, whether or
not there is also a change from any other
tariff item, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8536.50.aa A change to Canadian tariff item
8536.50.21 or 8536.50.29 or U.S. tariff
item 8536.50.00A from any other tariff
item, except from Canadian tariff item
8538.90.20, U.S. tariff item 8538.90.00B
or Mexican tariff item 8538.90.12; or
A change to Canadian tariff item 8536.50.21
or 8536.50.29 or U.S. tariff item 8536.50.00A
from Canadian tariff item 8538.90.20, U.S.
tariff item 8538.90.00B or Mexican tariff
item 8538.90.12, whether or not there is also
a change from any other tariff item, provided
there is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8536.90.aa A change to Mexican tariff item
8536.90.07 or 8536.90.27 from any other
tariff item, except from Canadian tariff
item 8538.90.20, U.S. tariff item
8538.90.00B or Mexican tariff item
8538.90.12; or
A change to Mexican tariff item 8536.90.07 or
8536.90.27 from Canadian tariff item
8538.90.20, U.S. tariff item 8538.90.00B or
Mexican tariff item 8538.90.12, whether or
not there is also a change from any other
tariff item, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
85.36 A change to heading 85.36 from any other
heading, except from Canadian tariff
item 8538.90.30 or 8538.90.60, U.S.
tariff item 8538.90.00A or 8538.90.00C
or Mexican tariff item 8538.90.13 or
8538.90.14; or
A change to heading 85.36 from Canadian
tariff item 8538.90.30 or 8538.90.60, U.S.
tariff item 8538.90.00A or 8538.90.00C or
Mexican tariff item 8538.90.13 or 8538.90.14,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
85.3737 A change to heading 85.37 from any other
heading, except from Canadian tariff
item 8538.90.30 or 8538.90.60, U.S.
tariff item 8538.90.00A or 8538.90.00C
or Mexican tariff item 8538.90.13 or
8538.90.14; or
A change to heading 85.37 from Canadian
tariff item 8538.90.30 or 8538.90.60, U.S.
tariff item 8538.90.00A or 8538.90.00C or
Mexican tariff item 8538.90.13 or 8538.90.14,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
85.38 A change to heading 85.38 from any other
heading.
____________________
37 If the good provided for in subheading 8537.10 is for
use in a motor vehicle of Chapter 87, the provisions of
Article 403 may apply.
8539.10-8539.4038 A change to subheading 8539.10 through
8539.40 from any other heading; or
A change to subheading 8539.10 through
8539.40 from subheading 8539.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8539.90 A change to subheading 8539.90 from any other
heading.
8540.11
8540.11.aa A change to Canadian tariff item
8540.11.22, U.S. tariff item 8540.11.00A
or Mexican tariff item 8540.11.01 from
any other subheading, except from more
than one of the following:
- Canadian tariff item 7011.20.10, U.S.
tariff item 7011.20.00A or Mexican
tariff item 7011.20.02 or 7011.20.03,
- Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8540.11.bb A change to Canadian tariff item
8540.11.21, U.S. tariff item 8540.11.00B
or Mexican tariff item 8540.11.02 from
any other subheading, except from more
than one of the following:
- Canadian tariff item 7011.20.10, U.S.
tariff item 7011.20.00A or Mexican
tariff item 7011.20.02 or 7011.20.03,
- Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8540.11.cc A change to Canadian tariff item
____________________
38 If the good provided for in subheading 8539.10 or
8539.21 is for use in a motor vehicle of Chapter 87,
the provisions of Article 403 may apply.
8540.11.12, U.S. tariff item 8540.11.00C
or Mexican tariff item 8540.11.03 from
any other subheading, except from
Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8540.11.dd A change to Canadian tariff item
8540.11.11, U.S. tariff item 8540.11.00D
or Mexican tariff item 8540.11.04 from
any other subheading, except from
Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8540.11 A change to subheading 8540.11 from any other
heading; or
A change to subheading 8540.11 from
subheading 8540.91, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8540.12
8540.12.aa A change to Canadian tariff item
8540.12.90, U.S. tariff item 8540.12.40A
or Mexican tariff item 8540.12.99 from
any other subheading, except from more
than one of the following:
- Canadian tariff item 7011.20.10, U.S.
tariff item 7011.20.00A or Mexican
tariff item 7011.20.02 or 7011.20.03,
- Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8540.12.bb A change to Canadian tariff item
8540.12.10, U.S. tariff item 8540.12.40B
or Mexican tariff item 8540.12.01 from
any other subheading, except from
Canadian tariff item 8540.91.10, U.S.
tariff item 8540.91.40A or Mexican
tariff item 8540.91.03.
8540.12 A change to subheading 8540.12 from any other
heading; or
A change to subheading 8540.12 from
subheading 8540.91, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8540.20 A change to subheading 8540.20 from any other
heading; or
A change to subheading 8540.20 from
subheading 8540.91 through 8540.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8540.30 A change to subheading 8540.30 from any other
subheading, except from Canadian tariff item
8540.91.10, U.S. tariff item 8540.91.40A or
Mexican tariff item 8540.91.03.
8540.41-8540.49 A change to subheading 8540.41 through
8540.49 from any subheading outside of
that group, except from Canadian tariff
item 8540.99.10, U.S. tariff item
8540.99.00A or Mexican tariff item
8540.99.05.
8540.81-8540.89 A change to subheading 8540.81 through
8540.89 from any other subheading,
including another subheading within that
group.
8540.91
8540.91.aa A change to Canadian tariff item
8540.91.10, U.S. tariff item 8540.91.40A
or Mexican tariff item 8540.91.03 from
any other tariff item.
8540.91 A change to subheading 8540.91 from any other
heading.
8540.99
8540.99.aa A change to Canadian tariff item
8540.99.10, U.S. tariff item 8540.99.00A
or Mexican tariff item 8540.99.05 from
any other tariff item.
8540.99 A change to subheading 8540.99 from any other
heading.
85.41-85.42 Note: Notwithstanding Article 411
(Transshipment), a good provided
for in subheading 8541.10 through
8541.60 or 8542.11 through 8542.80
qualifying under the rule below as
an originating good may undergo
further production outside the
territory of the Parties and, when
imported into the territory of a
Party, will originate in the
territory of a Party, provided that
such further production did not
result in a change to a subheading
outside of that group.
A change to subheading 8541.10 through
8542.90 from any other subheading, including
another subheading within that group.
8543.10-8543.30 A change to subheading 8543.10 through
8543.30 from any other heading; or
A change to subheading 8543.10 through
8543.30 from subheading 8543.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8543.80
8543.80.aa A change to Canadian tariff item
8543.80.60, U.S. tariff item 8543.80.90A
or Mexican tariff item 8543.80.20 from
any other subheading, except from
subheading 8504.40 or Canadian tariff
item 8543.90.11, 8543.90.12, 8543.90.13
or 8543.90.14, U.S. tariff item
8543.90.40A, 8543.90.40B or 8543.90.80A
or Mexican tariff item 8543.90.01; or
A change to Canadian tariff item 8543.80.60,
U.S. tariff item 8543.80.90A or Mexican
tariff item 8543.80.20 from subheading
8504.40 or Canadian tariff item 8543.90.11,
8543.90.12, 8543.90.13 or 8543.90.14, U.S.
tariff item 8543.90.40A, 8543.90.40B or
8543.90.80A or Mexican tariff item
8543.90.01, whether or not there is also a
change from any other subheading, provided
there is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8543.80 A change to subheading 8543.80 from any other
heading; or
A change to subheading 8543.80 from
subheading 8543.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8543.90 A change to subheading 8543.90 from any other
heading.
8544.11-8544.6039 A change to subheading 8544.11 through
8544.60 from any subheading outside that
group, except from heading 74.08, 74.13,
76.05 or 76.14; or
A change to subheading 8544.11 through
8544.60 from heading 74.08, 74.13, 76.05 or
76.14, whether or not there is also a change
from any other subheading, provided there is
also a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8544.70 A change to subheading 8544.70 from any other
subheading, except from heading 90.01 or
70.02; or
A change to subheading 8544.70 from heading
90.01 or 70.02, whether or not there is also
a change from any other subheading, provided
there is a regional value content of not less
than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
85.45-85.48 A change to heading 85.45 through 85.48
from any other heading, including
another heading within that group.
Section XVII - Vehicles, Aircraft, Vessels and Associated
Transport Equipment (Chapter 86-89)
Chapter 86 Railway or Tramway Locomotives, Rolling-
Stock and Parts Thereof; Railway or
Tramway Track Fixtures and Fittings and
Parts Thereof; Mechanical (Including
Electro-Mechanical) Traffic Signalling
____________________
39 If the good provided for in subheading 8544.30 is for
use in a motor vehicle of Chapter 87, the provisions of
Article 403 may apply.
Equipment of all Kinds
86.01-86.06 A change to heading 86.01 through 86.06
from any other heading, including
another heading within that group,
except from heading 86.07; or
A change to heading 86.01 through 86.06 from
heading 86.07, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8607.11-8607.12 A change to subheading 8607.11 through
8607.12 from any other heading.
8607.19
8607.19.aa A change to Canadian tariff item
8607.19.11, U.S. tariff item 8607.19.10A
or Mexican tariff item 8607.19.02 or
8607.19.06 from any other heading; or
A change to Canadian tariff item 8607.19.11,
U.S. tariff item 8607.19.10A or Mexican
tariff item 8607.19.02 or 8607.19.06 from
Canadian tariff item 8607.19.13, U.S. tariff
item 8607.19.10B or Mexican tariff item
8607.19.07, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8607.19.cc A change to Canadian tariff item
8607.19.12, U.S. tariff item 8607.19.20A
or Mexican tariff item 8607.19.03 from
any other heading; or
A change to Canadian tariff item 8607.19.12,
U.S. tariff item 8607.19.20A or Mexican
tariff item 8607.19.03 from Canadian tariff
item 8607.19.13, U.S. tariff item 8607.19.20B
or Mexican tariff item 8607.19.07, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8607.19 A change to subheading 8607.19 from any other
heading.
8607.21-8607.99 A change to subheading 8607.21 through
8607.99 from any other heading.
86.08-86.09 A change to heading 86.08 through 86.09
from any other heading, including
another heading within that group.
Chapter 87 Vehicles Other Than Railway or Tramway
Rolling-Stock, and Parts and Accessories
Thereof
87.0140 A change to heading 87.01 from any other
heading, provided there is a regional
value content of not less than 50
percent under the net cost method.
87.0241
8702.10.aa A change to Canadian tariff item
8702.10.10, U.S. tariff item 8702.10.00A
or Mexican tariff item 8702.10.03 from
any other heading, provided there is a
regional value content of not less than
50 percent under the net cost method.
____________________
40 The provisions of Article 403 apply.
41 The provisions of Article 403 apply.
8702.10.bb A change to Canadian tariff item
8702.10.90, U.S. tariff item 8702.10.00B
or Mexican tariff item 8702.10.01 or
8702.10.02 from any other heading,
provided there is a regional value
content of not less than 50 percent
under the net cost method.
8702.90.aa A change to Canadian tariff item
8702.90.10, U.S. tariff item 8702.90.00A
or Mexican tariff item 8702.90.04 from
any other heading, provided there is a
regional value content of not less than
50 percent under the net cost method.
8702.90.bb A change to Canadian tariff item
8702.90.90, U.S. tariff item 8702.90.00B
or Mexican tariff item 8702.90.01,
8702.90.02 or 8702.90.03 from any other
heading, provided there is a regional
value content of not less than 50
percent under the net cost method.
8703.10 A change to subheading 8703.10 from any other
heading, provided there is a regional value
content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8703.21-8703.9042 A change to subheading 8703.21 through
8703.90 from any other heading, provided
there is a regional value content of not
less than 50 percent under the net cost
method.
8704.1043 A change to subheading 8704.10 from any
other heading, provided there is a regional
value content of not less than 50 percent
under the net cost method.
8704.2144 A change to subheading 8704.21 from any
____________________
42 The provisions of Article 403 apply.
43 The provisions of Article 403 apply.
44 The provisions of Article 403 apply.
other heading, provided there is a regional
value content of not less than 50 percent
under the net cost method.
8704.22-8704.2345 A change to subheading 8704.22 through
8704.23 from any other heading, provided
there is a regional value content of not
less than 50 percent under the net cost
method.
8704.3146 A change to subheading 8704.31 from any
other heading, provided there is a regional
value content of not less than 50 percent
under the net cost method.
8704.32-8704.9047 A change to subheading 8704.32 through
8704.90 from any other heading, provided
there is a regional value content of not
less than 50 percent under the net cost
method.
87.0548 A change to heading 87.05 from any other
heading, provided there is a regional
value content of not less than 50
percent under the net cost method.
87.0649
8706.00.aa A change to Canadian tariff item
8706.00.20, U.S. tariff item 8706.00.10A
or 8706.00.15 or Mexican tariff item
8706.00.02 from any other chapter,
provided there is a regional value
content of not less than 50 percent
under the net cost method.
8706.00.bb A change to Canadian tariff item
8706.00.10 or 8706.00.90, U.S. tariff
item 8706.00.10B, 8706.00.25, 8706.00.30
or 8706.00.50 or Mexican tariff item
____________________
45 The provisions of Article 403 apply.
46 The provisions of Article 403 apply.
47 The provisions of Article 403 apply.
48 The provisions of Article 403 apply.
49 The provisions of Article 403 apply.
8706.00.99 from any other chapter,
provided there is a regional value
content of not less than 50 percent
under the net cost method.
87.0750 A change to heading 87.07 from any other
chapter; or
A change to heading 87.07 from heading 87.08,
whether or not there is also a change from
any other chapter, provided there is a
regional value content of not less than 50
percent under the net cost method.
8708.1051 A change to subheading 8708.10 from any
other heading; or
A change to subheading 8708.10 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
8708.2152 A change to subheading 8708.21 from any
other heading; or
A change to subheading 8708.21 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
8708.2953 A change to subheading 8708.29 from any
other heading; or
No required change in tariff classification
to subheading 8708.29, provided there is a
regional value content of not less than 50
percent under the net cost method.
____________________
50 The provisions of Article 403 apply.
51 The provisions of Article 403 apply.
52 The provisions of Article 403 apply.
53 The provisions of Article 403 apply.
8708.31 A change to subheading 8708.31 from any other
heading; or
A change to subheading 8708.31 from
subheading 8708.39 or 8708.99, whether or not
there is also a change from any other
heading, provided there is a regional value
content of not less than 50 percent under the
net cost method.
8708.3954 A change to subheading 8708.39 from any
other heading; or
A change to subheading 8708.39 from
subheading 8708.31 or 8708.99, whether or not
there is also a change from any other
heading, provided there is a regional value
content of not less than 50 percent under the
net cost method.
8708.4055 A change to subheading 8708.40 from any
other heading; or
A change to subheading 8708.40 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
8708.5056
8708.50.aa A change to Canadian tariff item
8708.50.20, U.S. tariff item 8708.50.50
or Mexican tariff item 8708.50.06 or
8708.50.07 from any other heading,
except from subheading 8482.10 through
8482.80; or
A change to Canadian tariff item 8708.50.20,
U.S. tariff item 8708.50.50 or Mexican tariff
item 8708.50.06 or 8708.50.07 from subheading
8482.10 through 8482.80 or 8708.99, whether
or not there is also a change from any other
____________________
54 The provisions of Article 403 apply.
55 The provisions of Article 403 apply.
56 The provisions of Article 403 apply.
heading, provided there is a regional value
content of not less than 50 percent under the
net cost method.
8708.50 A change to subheading 8708.50 from any other
heading; or
A change to subheading 8708.50 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
8708.6057
8708.60.aa A change to Canadian tariff item
8708.60.20, U.S. tariff item 8708.60.50
or Mexican tariff item 8708.60.07 from
any other heading, except from
subheading 8482.10 through 8482.80; or
A change to Canadian tariff item 8708.60.20,
U.S. tariff item 8708.60.50 or Mexican tariff
item 8708.60.07 from subheading 8482.10
through 8482.80 or 8708.99, whether or not
there is also a change from any other
heading, provided there is a regional value
content of not less than 50 percent under the
net cost method.
8708.60 A change to subheading 8708.60 from any other
heading; or
A change to subheading 8708.60 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
8708.7058 A change to subheading 8708.70 from any
other heading; or
A change to subheading 8708.70 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
____________________
57 The provisions of Article 403 apply.
58 The provisions of Article 403 apply.
8708.8059
8708.80.aa A change to Canadian tariff item
8708.80.10, U.S. tariff item 8708.80.10A
or 8708.80.50A or Mexican tariff item
8708.80.04 from any other subheading,
provided there is a regional value
content of not less than 50 percent
under the net cost method.
8708.80 A change to subheading 8708.80 from any other
heading; or
A change to subheading 8708.80 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent of the net cost
method.
8708.9160 A change to subheading 8708.91 from any
other heading; or
A change to subheading 8708.91 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent of the net cost
method.
8708.9261 A change to subheading 8708.92 from any
other heading; or
A change to subheading 8708.92 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
8708.9362 A change to subheading 8708.93 from any
other heading; or
____________________
59 The provisions of Article 403 apply.
60 The provisions of Article 403 apply.
61 The provisions of Article 403 apply.
62 The provisions of Article 403 apply.
A change to subheading 8708.93 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
8708.9463 A change to subheading 8708.94 from any
other heading; or
A change to subheading 8708.94 from
subheading 8708.99, whether or not there is
also a change from any other heading,
provided there is a regional value content of
not less than 50 percent under the net cost
method.
8708.9964
8708.99.aa A change to Canadian tariff item
8708.99.15, 8708.99.25 or 8708.99.96,
U.S. tariff item 8708.99.10A,
8708.99.20A or 8708.99.50A or Mexican
tariff item 8708.99.42 from any other
subheading, provided there is a regional
value content of not less than 50
percent under the net cost method.
8708.99.bb A change to Canadian tariff item
8708.99.16, 8708.99.26 or 8708.99.97,
U.S. tariff item 8708.99.10B,
8708.99.20B or 8708.99.50B or Mexican
tariff item 8708.99.43 from any other
heading, except from subheading 8482.10
through 8482.80 or Canadian tariff item
8482.99.11 or 8482.99.91, U.S. tariff
item 8482.99.10A, 8482.99.30A,
8482.99.50A or 8482.99.70A or Mexican
tariff item 8482.99.01 or 8482.99.03; or
____________________
63 The provisions of Article 403 apply.
64 The provisions of Article 403 apply.
A change to Canadian tariff item 8708.99.16,
8708.99.26 or 8708.99.97, U.S. tariff item
8708.99.10B, 8708.99.20B or 8708.99.50B or
Mexican tariff item 8708.99.43 from
subheading 8482.10 through 8482.80 or
Canadian tariff item 8482.99.11 or
8482.99.91, U.S. tariff item 8482.99.10A,
8482.99.30A, 8482.99.50A or 8482.99.70A or
Mexican tariff item 8482.99.01 or 8482.99.03,
whether or not there is also a change from
any other heading, provided there is a
regional value content of not less than 50
percent under the net cost method.
8708.99 A change to subheading 8708.99 from any other
heading; or
No required change in tariff classification
to subheading 8708.99, provided there is a
regional value content of not less than 50
percent under the net cost method.
8709.11-8709.19 A change to subheading 8709.11 through
8709.19 from any other heading; or
A change to subheading 8709.11 through
8709.19 from subheading 8709.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8709.90 A change to subheading 8709.90 from any other
heading.
87.10 A change to heading 87.10 from any other
heading.
87.11 A change to heading 87.11 from any other
heading, except from heading 87.14; or
A change to heading 87.11 from heading 87.14,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
87.12 A change to heading 87.12 from any other
heading, except from heading 87.14; or
A change to heading 87.12 from heading 87.14,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
87.13 A change to heading 87.13 from any other
heading, except from heading 87.14; or
A change to heading 87.13 from heading 87.14,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
87.14 A change to heading 87.14 from any other
heading.
87.15 A change to heading 87.15 from any other
heading.
8716.10-8716.80 A change to subheading 8716.10 through
8716.80 from any other heading; or
A change to subheading 8716.10 through
8716.80 from subheading 8716.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
8716.90 A change to subheading 8716.90 from any other
heading.
Chapter 88 Aircraft, Spacecraft, and Parts Thereof
8801.10-8803.90 A change to subheading 8801.10 through
8803.90 from any other subheading,
including another subheading within that
group.
88.04-88.05 A change to heading 88.04 through 88.05
from any other heading, including
another heading within that group.
Chapter 89 Ships, Boats and Floating Structures
89.01-89.02 A change to heading 89.01 through 89.02
from any other chapter; or
A change to heading 89.01 through 89.02 from
any other heading within Chapter 89,
including another heading within that group,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
89.03 A change to heading 89.03 from any other
heading, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
89.04-89.05 A change to heading 89.04 through 89.05
from any other chapter; or
A change to heading 89.04 through 89.05 from
any other heading within Chapter 89,
including another heading within that group,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
89.06-89.08 A change to heading 89.06 through 89.08
from any other heading, including
another heading within that group.
Section XVIII- Optical, Photographic, Cinematographic, Measuring,
Checking, Precision, Medical or Surgical
Instruments and Apparatus; Clocks and Watches;
Musical Instruments; Parts and Accessories Thereof
(Chapter 90-92)
Chapter 90 Optical, Photographic, Cinematographic,
Measuring, Checking, Precision, Medical
or Surgical Instruments and Apparatus;
Parts and Accessories Thereof
Note 1: For purposes of this Chapter, the term,
"printed circuit assembly", means a good
consisting of one or more printed
circuits of heading 85.34 with one or
more active elements assembled thereon,
with or without passive elements. For
purposes of this Note, "active elements"
means diodes, transistors and similar
semiconductor devices, whether or not
photosensitive, of heading 85.41, and
integrated circuits and microassemblies
of heading 85.42.
Note 2: The origin of the goods of Chapter 90
shall be determined without regard to
the origin of any automatic data
processing machines or units thereof of
heading 84.71, or parts and accessories
thereof of heading 84.73, which may be
included therewith.
Note 3: Canadian tariff item 9009.90.10, U.S.
tariff item 9009.90.00A or 9009.90.00B
or Mexican tariff item 9009.90.02 covers
the following parts for photo-copying
apparatus of subheading 9009.12:
(a) imaging assemblies, incorporating at
least two of the following:
photoreceptor belt or cylinder; toner
receptacle unit; toner distribution
unit; developer receptacle unit;
developer distribution unit;
charge/discharge unit; cleaning unit;
(b) optics assemblies, incorporating at
least two of the following: lens;
mirror; illumination source; document
exposure glass;
(c) user control assemblies, incorporating
at least two of the following: printed
circuit assembly; power supply; user
input keyboard; wiring harness; display
unit (cathode-ray type or flat panel);
(d) image fixing assemblies, incorporating
at least two of the following: fuser;
pressure roller; heating element;
release oil dispenser; cleaning unit;
electrical control;
(e) paper handling assemblies, incorporating
at least two of the following: paper
transport belt; roller; print bar;
carriage; gripper roller; paper storage
unit; exit tray; or
(f) combinations of the above specified
assemblies.
9001.10 A change to subheading 9001.10 from any other
chapter, except from heading 70.02; or
A change to subheading 9001.10 from heading
70.02, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9001.20-9001.90 A change to subheading 9001.20 through
9001.90 from any other heading.
90.02 A change to heading 90.02 from any other
heading, except from heading 90.01.
9003.11-9003.19 A change to subheading 9003.11 through
9003.19 from any other heading; or
A change to subheading 9003.11 through
9003.19 from subheading 9003.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9003.90 A change to subheading 9003.90 from any other
heading.
90.04 A change to heading 90.04 from any other
chapter; or
A change to heading 90.04 from any other
heading within Chapter 90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9005.10-9005.80 A change to subheading 9005.10 through
9005.80 from any subheading outside that
group, except from heading 90.01 through
90.02 or Canadian tariff item 9005.90.11
or 9005.90.91, U.S. tariff item
9005.90.00A or Mexican tariff item
9005.90.03.
9005.90
9005.90.aa A change to Canadian tariff item
9005.90.11 or 9005.90.91, U.S. tariff
item 9005.90.00A or Mexican tariff item
9005.90.03 from any other heading,
except from heading 90.01 or 90.02.
9005.90 A change to subheading 9005.90 from any other
heading.
9006.10-9006.69 A change to subheading 9006.10 through
9006.69 from any other heading; or
A change to subheading 9006.10 through
9006.69 from subheading 9006.91 or 9006.99,
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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9006.91-9006.99 A change to subheading 9006.91 through
9006.99 from any other heading.
9007.11 A change to subheading 9007.11 from any other
heading; or
A change to subheading 9007.11 from
subheading 9007.91, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9007.19
9007.19.aa A change to Canadian tariff item
9007.19.10, U.S. tariff item 9007.19.00A
or Mexican tariff item 9007.19.01 from
any other tariff item.
9007.19 A change to subheading 9007.19 from any other
heading; or
A change to subheading 9007.19 from
subheading 9007.91, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9007.21-9007.29 A change to subheading 9007.21 through
9007.29 from any other heading; or
A change to subheading 9007.21 through
9007.29 from subheading 9007.92, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9007.91 A change to subheading 9007.91 from any other
heading.
9007.92 A change to subheading 9007.92 from any other
heading; or
No required change in tariff classification
to subheading 9007.92, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9008.10-9008.40 A change to subheading 9008.10 through
9008.40 from any other heading; or
A change to subheading 9008.10 through
9008.40 from subheading 9008.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9008.90 A change to subheading 9008.90 from any other
heading.
9009.11 A change to subheading 9009.11 from any other
subheading.
9009.12 A change to subheading 9009.12 from any other
tariff item, except from Canadian tariff item
9009.90.10, U.S. tariff item 9009.90.00A or
9009.90.00B or Mexican tariff item
9009.90.02.
9009.21-9009.30 A change to subheading 9009.21 through
9009.30 from any other subheading,
including another subheading within that
group.
9009.90
9009.90.aa A change to Canadian tariff item
9009.90.10, U.S. tariff item 9009.90.00A
or 9009.90.00B or Mexican tariff item
9009.90.02 from Canadian tariff item
9009.90.90, U.S. tariff item 9009.90.00C
or 9009.90.00D or Mexican tariff item
9009.90.99 or from any other heading,
provided that at least one of the
components of such assembly named in
Note 3 to Chapter 90 is originating.
9009.90 A change to subheading 9009.90 from any other
heading.
9010.10-9010.30 A change to subheading 9010.10 through
9010.30 from any other heading; or
A change to subheading 9010.10 through
9010.30 from subheading 9010.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9010.90 A change to subheading 9010.90 from any other
heading.
9011.10-9011.80 A change to subheading 9011.10 through
9011.80 from any other heading; or
A change to subheading 9011.10 through
9011.80 from subheading 9011.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9011.90 A change to subheading 9011.90 from any other
heading.
9012.10 A change to subheading 9012.10 from any other
heading; or
A change to subheading 9012.10 from
subheading 9012.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9012.90 A change to subheading 9012.90 from any other
heading.
9013.10-9013.80 A change to subheading 9013.10 through
9013.80 from any other heading; or
A change to subheading 9013.10 through
9013.80 from subheading 9013.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9013.90 A change to subheading 9013.90 from any other
heading.
9014.10-9014.80 A change to subheading 9014.10 through
9014.80 from any other heading; or
A change to subheading 9014.10 through
9014.80 from subheading 9014.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9014.90 A change to subheading 9014.90 from any other
heading.
9015.10-9015.80 A change to subheading 9015.10 through
9015.80 from any other heading; or
A change to subheading 9015.10 through
9015.80 from subheading 9015.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9015.90 A change to subheading 9015.90 from any other
heading; or
No required change in tariff classification
to subheading 9015.90, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
90.16 A change to heading 90.16 from any other
heading.
9017.10-9017.80 A change to subheading 9017.10 through
9017.80 from any other heading; or
A change to subheading 9017.10 through
9017.80 from subheading 9017.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9017.90 A change to subheading 9017.90 from any other
heading.
9018.11
9018.11.aa A change to Canadian tariff item
9018.11.10, U.S. tariff item 9018.11.00A
or Mexican tariff item 9018.11.01 from
any other tariff item, except from
Canadian tariff item 9018.11.91, U.S
tariff item 9018.11.00B or Mexican
tariff item 9018.11.02.
9018.11 A change to subheading 9018.11 from any other
heading.
9018.19
9018.19.aa A change to Canadian tariff item
9018.19.10, U.S. tariff item 9018.19.80A
or Mexican tariff item 9018.19.16 from
any other tariff item, except from
Canadian tariff item 9018.19.91, U.S
tariff item 9018.19.80B or Mexican
tariff item 9018.19.17.
9018.19 A change to subheading 9018.19 from any other
heading.
9018.20-9018.50 A change to subheading 9018.20 through
9018.50 from any other heading.
9018.90
9018.90.aa A change to Canadian tariff item
9018.90.10, U.S. tariff item 9018.90.70A
or Mexican tariff item 9018.90.25 from
any other tariff item, except from
Canadian tariff item 9018.90.91, U.S
tariff item 9018.90.70B or Mexican
tariff item 9018.90.26.
9018.90 A change to subheading 9018.90 from any other
heading.
90.19-90.21 A change to heading 90.19 through 90.21
from any heading outside that group.
9022.11 A change to subheading 9022.11 from any other
subheading, except from Canadian tariff item
9022.90.10, U.S. tariff item 9022.90.90A or
Mexican tariff item 9022.90.04.
9022.19 A change to subheading 9022.19 from any other
subheading, except from subheading 9022.30 or
Canadian tariff item 9022.90.10, U.S. tariff
item 9022.90.90A or Mexican tariff item
9022.90.04.
9022.21 A change to subheading 9022.21 from any other
subheading, except from Canadian tariff item
9022.90.20, U.S. tariff item 9022.90.90B or
Mexican tariff item 9022.90.05.
9022.29-9022.30 A change to subheading 9022.29 through
9022.30 from any other heading; or
A change to subheading 9022.29 through
9022.30 from subheading 9022.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9022.90
9022.90.aa A change to Canadian tariff item
9022.90.10, U.S. tariff item 9022.90.90A
or Mexican tariff item 9022.90.04 from
any other tariff item.
9022.90 A change to subheading 9022.90 from any other
heading; or
No required change in tariff classification
to subheading 9022.90, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
90.23 A change to heading 90.23 from any other
heading.
9024.10-9024.80 A change to subheading 9024.10 through
9024.80 from any other heading; or
A change to subheading 9024.10 through
9024.80 from subheading 9024.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9024.90 A change to subheading 9024.90 from any other
heading.
9025.11-9025.80 A change to subheading 9025.11 through
9025.80 from any other heading; or
A change to subheading 9025.11 through
9025.80 from subheading 9025.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9025.90 A change to subheading 9025.90 from any other
heading.
9026.10-9026.80 A change to subheading 9026.10 through
9026.80 from any other heading; or
A change to subheading 9026.10 through
9026.80 from subheading 9026.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9026.90 A change to subheading 9026.90 from any other
heading.
9027.10-9027.50 A change to subheading 9027.10 through
9027.50 from any other heading; or
A change to subheading 9027.10 through
9027.50 from subheading 9027.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9027.80
9027.80.aa A change to Canadian tariff item
9027.80.20, U.S. tariff item 9027.80.40A
or Mexican tariff item 9027.80.08 from
any other subheading, except from
subheading 8505.19 or Canadian tariff
item 9027.90.30, U.S. tariff item
9027.90.44A or Mexican tariff item
9027.90.04.
9027.80 A change to subheading 9027.80 from any other
heading; or
A change to subheading 9027.80 from
subheading 9027.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9027.90 A change to subheading 9027.90 from any other
heading.
9028.10-9028.30 A change to subheading 9028.10 through
9028.30 from any other heading; or
A change to subheading 9028.10 through
9028.30 from subheading 9028.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9028.90 A change to subheading 9028.90 from any other
heading.
9029.10-9029.20 A change to subheading 9029.10 through
9029.20 from any other heading; or
A change to subheading 9029.10 through
9029.20 from subheading 9029.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9029.90 A change to subheading 9029.90 from any other
heading.
9030.10 A change to subheading 9030.10 from any other
heading; or
A change to subheading 9030.10 from
subheading 9030.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9030.20-9030.39 A change to subheading 9030.20 through
9030.39 from any other subheading,
including another subheading within that
group, except from Canadian tariff item
9030.90.21 or 9030.90.23, U.S. tariff
item 9030.90.40A, 9030.90.40B,
9030.90.80A or 9030.90.80B or Mexican
tariff item 9030.90.02.
9030.40-9030.89 A change to subheading 9030.40 through
9030.89 from any other heading; or
A change to subheading 9030.40 through
9030.89 from subheading 9030.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9030.90 A change to subheading 9030.90 from any other
heading.
9031.10-9031.40 A change to subheading 9031.10 through
9031.40 from any other heading; or
A change to subheading 9031.10 through
9031.40 from subheading 9031.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9031.8065
9031.80.aa A change to Canadian tariff item
9031.80.40, U.S. tariff item 9031.80.00A
or 9031.80.00B or Mexican tariff item
9031.80.06 from any other tariff item,
except from subheading 8537.10 or
Canadian tariff item 9031.90.61, U.S.
tariff item 9031.90.60A or 9031.90.60B
or Mexican tariff item 9031.90.02.
9031.80 A change to subheading 9031.80 from any other
heading; or
A change to subheading 9031.80 from
subheading 9031.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9031.90 A change to subheading 9031.90 from any other
heading.
____________________
65 If the good is for use in a motor vehicle of Chapter
87, the provisions of Article 403 may apply.
9032.10-9032.8966 A change to subheading 9032.10 through
9032.89 from any other heading; or
A change to subheading 9032.10 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 of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9032.90 A change to subheading 9032.90 from any other
heading.
90.33 A change to heading 90.33 from any other
heading.
Chapter 91 Clocks and Watches and Parts Thereof
91.01-91.07 A change to heading 91.01 through 91.07
from any other chapter; or
A change to heading 91.01 through 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) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
91.08-91.10 A change to heading 91.08 through 91.10
from any other heading, including
another heading within that group,
provided there is a regional value
content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
____________________
66 If the good provided for in subheading 9032.89 is for
use in a motor vehicle of Chapter 87, the provisions of
Article 403 may apply.
9111.10-9111.80 A change to subheading 9111.10 through
9111.80 from subheading 9111.90 or any
other heading, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used; or
9111.90 A change to subheading 9111.90 from any other
heading, provided there is a regional value
content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9112.10-9112.80 A change to subheading 9112.10 through
9112.80 from subheading 9112.90 or any
other heading, provided there is a
regional value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9112.90 A change to subheading 9112.90 from any other
heading, provided there is a regional value
content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
91.13 A change to heading 91.13 from any other
heading, provided there is a regional
value content of not less than:
(a) 60 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
91.14 A change to heading 91.14 from any other
heading.
Chapter 92 Musical Instruments; Parts and
Accessories of Such Articles
92.01-92.08 A change to heading 92.01 through 92.08
from any other chapter; or
A change to heading 92.01 through 92.08 from
heading 92.09, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
92.09 A change to heading 92.09 from any other
heading.
Section XIX - Arms and Ammunition; Parts and Accessories Thereof
(Chapter 93)
Chapter 93 Arms and Ammunition; Parts and
Accessories Thereof
93.01-93.04 A change to heading 93.01 through 93.04
from any other chapter; or
A change to heading 93.01 through 93.04 from
heading 93.05, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
93.05 A change to heading 93.05 from any other
heading.
93.06-93.07 A change to heading 93.06 through 93.07
from any other chapter.
Section XX - Miscellaneous Manufactured Articles (Chapter
94-96)
Chapter 94 Furniture; Bedding, Mattresses, Mattress
Supports, Cushions and Similar Stuffed
Furnishings; Lamps and Lighting
Fittings, Not Elsewhere Specified or
Included; Illuminated Signs, Illuminated
Name-Plates and the Like; Prefabricated
Buildings
9401.10-9401.8067 A change to subheading 9401.10 through
9401.80 from any other chapter; or
A change to subheading 9401.10 through
9401.80 from subheading 9401.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9401.90 A change to subheading 9401.90 from any other
heading.
94.02 A change to heading 94.02 from any other
chapter.
9403.10-9403.80 A change to subheading 9403.10 through
9403.80 from any other chapter; or
A change to subheading 9403.10 through
9403.80 from subheading 9403.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9403.90 A change to subheading 9403.90 from any other
____________________
67 If the good provided for in subheading 9401.20 is for
use in a motor vehicle of Chapter 87, the provisions of
Article 403 may apply.
heading.
9404.10-9404.30 A change to subheading 9404.10 through
9404.30 from any other chapter.
9404.90 A change to subheading 9404.90 from any other
chapter, except from heading 50.07, 51.11
through 51.13, 52.08 through 52.12, 53.09
through 53.11, 54.07 through 54.08 or 55.12
through 55.16.
9405.10-9405.60 A change to subheading 9405.10 through
9405.60 from any other chapter; or
A change to subheading 9405.10 through
9405.60 from subheading 9405.91 through
9405.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9405.91-9405.99 A change to subheading 9405.91 through
9405.99 from any other heading.
94.06 A change to heading 94.06 from any other
chapter.
Chapter 95 Toys, Games and Sports Requisites; Parts
and Accessories Thereof
95.01 A change to heading 95.01 from any other
chapter.
9502.10 A change to subheading 9502.10 from any other
chapter; or
A change to subheading 9502.10 from
subheading 9502.91 through 9502.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9502.91-9502.99 A change to subheading 9502.91 through
9502.99 from any other heading.
95.03-95.05 A change to heading 95.03 through 95.05
from any other chapter.
9506.11-9506.29 A change to subheading 9506.11 through
9506.29 from any other chapter.
9506.3168 A change to subheading 9506.31 from any
other chapter; or
A change to subheading 9506.31 from
subheading 9506.39, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9506.32 A change to subheading 9506.32 from any other
chapter.
9506.39
9506.39.aa A change to Mexican tariff item
9506.39.01 from any other chapter; or
A change to Mexican tariff item 9506.39.01
from any other tariff item, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
____________________
68 9506.31 U.S. and Canada classify golf clubs, whether
or not in sets, in subheading 9506.31. Parts
of golf clubs are classified in subheading
9506.39.
Mexico classifies in subheading 9506.31 only
complete sets of golf clubs; individual golf clubs
and parts of golf clubs are classified in
subheading 9506.39 under tariff item 9506.39.01.
used.
9506.39 A change to subheading 9506.39 from any other
chapter.
9506.40-9506.99 A change to subheading 9506.40 through
9506.99 from any other chapter.
95.07-95.08 A change to heading 95.07 through 95.08
from any other chapter.
Chapter 96 Miscellaneous Manufactured Articles
96.01-96.05 A change to heading 96.01 through 96.05
from any other chapter.
9606.10 A change to subheading 9606.10 from any other
chapter.
9606.21-9606.29 A change to subheading 9606.21 through
9606.29 from any other chapter; or
A change to subheading 9606.21 through
9606.29 from subheading 9606.30, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9606.30 A change to subheading 9606.30 from any other
heading.
9607.11-9607.19 A change to subheading 9607.11 through
9607.19 from any other chapter; or
A change to subheading 9607.11 through
9607.19 from subheading 9607.20, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9607.20 A change to subheading 9607.20 from any other
heading.
9608.10-9608.50 A change to subheading 9608.10 through
9608.50 from any other chapter; or
A change to subheading 9608.10 through
9608.50 from subheading 9608.60 through
9608.99, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9608.60-9608.99 A change to subheading 9608.60 through
9608.99 from any other heading.
96.09-96.12 A change to heading 96.09 through 96.12
from any other chapter.
9613.10-9613.80 A change to subheading 9613.10 through
9613.80 from any other chapter; or
A change to subheading 9613.10 through
9613.80 from subheading 9613.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9613.90 A change to subheading 9613.90 from any other
heading.
9614.10 A change to subheading 9614.10 from any other
chapter.
9614.20 A change to subheading 9614.20 from any other
subheading, except from subheading 9614.90.
9614.90 A change to subheading 9614.90 from any other
heading.
9615.11-9615.19 A change to subheading 9615.11 through
9615.19 from any other chapter; or
A change to subheading 9615.11 through
9615.19 from subheading 9615.90, 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 percent where the transaction value
method is used, or
(b) 50 percent where the net cost method is
used.
9615.90 A change to subheading 9615.90 from any other
heading.
96.16-96.18 A change to heading 96.16 through 96.18
from any other chapter.
Section XXI - Works of Art, Collectors' Pieces and Antiques
(Chapter 97)
Chapter 97 Works of Art, Collectors' Pieces and
Antiques
97.01-97.06 A change to heading 97.01 through 97.06
from any other chapter.
NEW TARIFF ITEMS FOR NAFTA
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
1806.10 1806.1 1806.1 1806.1 Containing 90 percent or more
.aa 0.10 0.41 0.01 by weight of sugar
1806.1
0.42
1901.10 1901.1 1901.1 1901.1 Containing over 10 percent by
.aa 0.31 0.00A 0.01 weight of milk solids
1901.1
0.00B
1901.1
0.00C
1901.1
0.00D
1901.20 1901.2 1901.2 1901.2 Containing over 25 percent by
.aa 0.11 0.00A 0.02 weight of butterfat, not put
1901.2 1901.2 up for retail sale
0.21 0.00B
1901.2
0.00C
1901.2
0.00D
1901.2
0.00E
1901.2
0.00F
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
1901.90 1901.9 1901.9 1901.9 Dairy preparations containing
.aa 0.31 0.30A 0.03 over 10 percent by weight of
1901.9 milk solids
0.30B
1901.9
0.30C
1901.9
0.30D
1901.9
0.30E
1901.9
0.40A
1901.9
0.40B
1901.9
0.40C
1901.9
0.40D
1901.9
0.80A
1901.9
0.80B
1901.9
0.80C
1901.9
0.80D
1901.9
0.80E
1901.9
0.80F
1901.9
0.80G
2008.11 2008.1 2008.1 2008.1 Peanuts, blanched
.aa 1.20 1.00B 1.01
2008.1
1.00C
2008.1
1.00D
2101.10 2101.1 2101.1 2101.1 Instant coffee, not flavored
.aa 0.11 0.20A 0.01
2103.20 2103.2 2103.2 2103.2 Ketchup
.aa 0.10 0.20 0.01
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
Concentrated fruit or
vegetable juices, fortified
2106.90 2106.9 2106.9 2106.9 with minerals or vitamins:
.bb 0.91 0.16 0.06 Of any single fruit or
2106.9 vegetable
0.19A2
106.90
.19B
2106.9
0.19C
2106.9
0.19D
2106.9
0.19E
2106.90 2106.9 2106.9 2106.9
.cc 0.92 0.19F 0.07 Of mixtures of fruit or
2106.9 vegetable juices
2106.90 2106.9 0.19G 2106.9
.dd 0.32 2106.9 0.08 Containing over 10 percent by
0.19H weight of milk solids
2106.9
0.19I
2106.9
0.19J
2106.9
0.19K
2106.9
0.19L
2106.9
0.05
2106.9
0.15A
2106.9
0.15B
2106.9
0.15C
2106.9
0.15D
2106.9
0.40A
2106.9
0.40B
2106.9
0.40C
2106.9
0.40D
2106.9
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
Fruit or vegetable juices,
fortified with minerals or
2202.90 2202.9 2202.9 2202.9 vitamins:
.aa 0.31 0.30 0.02 Of any single fruit or
2202.9 vegetable
0.35
2202.9
0.39A2
202.90
.39B
2202.9
0.39C
2202.9
0.39D
2202.9
2202.90 2202.9 0.39E 2202.9
.bb 0.32 2202.9 0.03 Of mixtures of fruit or
0.39F vegetable juices
2202.90 2202.9 2202.9 2202.9
.cc 0.40 0.39G 0.04 Beverages containing milk
2202.9
0.39H
2202.9
0.39I
2202.9
0.39J
2202.9
0.39K
2202.9
0.39L
2202.9
0.10
2202.9
0.20
2309.90 2309.9 2309.9 2309.9 Containing over 10 percent
.aa 0.32 0.30A 0.10 but not more than 50 percent
2309.9 by weight of milk solids, and
0.30B less than 6 percent by weight
2309.9 of grain or grain products
0.30C
2401.10 2401.1 2401.1 2401.1 Wrapper tobacco
.aa 0.10 0.20A 0.01
2403.91 2403.9 2403.9 2403.9 Of a kind used as wrapper
.aa 1.10 1.20 1.01 tobacco
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
4008.19 4008.1 4008.1 4008.1 Profile shapes
.aa 9.10 9.10A 9.01
4008.1
9.50A
4008.29 4008.2 4008.2 4008.2 Profile shapes
.aa 9.10 9.00A 9.01
4008.2
9.00B
4012.20 4012.2 4012.2 4012.2 Of a kind used on vehicles,
.aa 0.20 0.20A 0.01 including tractors, for the
4012.2 on-highway transport of
0.50A passengers or goods, or on
vehicles of heading 87.05
4016.93 4016.9 4016.9 4016.9 Of a kind for use in
.aa 3.10 3.00B 3.04 automotive goods of Chapter
87
4016.99 4016.9 4016.9 4016.9 Vibration control goods of a
.aa 9.30 9.25A 9.10 kind used in the vehicles of
4016.9 heading 87.01 through 87.05
9.50B
4105.19 4105.1 4105.1 4105.1 Wet blue
.aa 9.10 9.00A 9.01
4106.19 4106.1 4106.1 4106.1 Wet blue
.aa 9.10 9.00A 9.01
4107.10 4107.1 4107.1 4107.1 Wet blue
.aa 0.10 0.00B 0.02
5402.43 5402.4 5402.4 5402.4 Wholly of polyester,
.aa 3.10 3.00A 3.01 measuring not less than 75
decitex but not more than 80
decitex, and having 24
filaments per yarn
5402.52 5402.5 5402.5 5402.5 Wholly of polyester,
.aa 2.10 2.00A 2.02 measuring not less than 75
decitex but not more than 80
decitex, and having 24
filaments per yarn
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
5407.60 5407.6 5407.6 5407.6 Wholly of polyester, of
.aa 0.10 0.05A 0.02 single yarns measuring not
5407.6 less than 75 decitex but not
0.10A more than 80 decitex, having
5407.6 24 filaments per yarn and
0.20A with a twist of 900 or more
turns per meter
5408.22 5408.2 5408.2 5408.2 Of cuprammonium rayon
.aa 2.10 2.00A 2.04
5408.23 5408.2 5408.2 5408.2 Of cuprammonium rayon
.aa 3.10 3.10A 3.05
5408.2
3.20A
5408.24 5408.2 5408.2 5408.2 Of cuprammonium rayon
.aa 4.10 4.00A 4.01
6002.92 6002.9 6002.9 6002.9 Circular knit, wholly of
.aa 2.10 2.00A 2.01 cotton yarns exceeding 100
metric number per single yarn
6103.19 6103.1 6103.1 6103.1 Of textile materials other
.aa 9.90 9.40 9.02 than artificial fibers or
6103.1 cotton
9.99
6103.39 6103.3 6103.3 6103.3 Of other than artificial
.aa 9.90 9.20 9.02 fibers
6103.3
9.99
6104.19 6104.1 6104.1 6104.1 Of other than artificial
.aa 9.90 9.20 9.02 fibers
6104.1
9.99
6104.39 6104.3 6104.3 6104.3 Of other than artificial
.aa 9.90 9.20 9.02 fibers
6104.3
9.99
6104.59 6104.5 6104.5 6104.5 Of other than artificial
.aa 9.90 9.20 9.02 fibers
6104.5
9.99
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
6203.19 6203.1 6203.1 6203.1 Of other than cotton or
.aa 9.90 9.40 9.02 artificial fibers
6203.1
9.99
6203.39 6203.3 6203.3 6203.3 Of other than artificial
.aa 9.90 9.40 9.02 fibers
6203.3
9.99
6204.19 6204.1 6204.1 6204.1 Of other than artificial
.aa 9.90 9.30 9.02 fibers
6204.1
9.99
6204.39 6204.3 6204.3 6204.3 Of other than artificial
.aa 9.90 9.60 9.02 fibers
6204.3 6204.3
9.80 9.99
6204.59 6204.5 6204.5 6204.5 Of other than artificial
.aa 9.90 9.40 9.02 fibers
6204.5
9.99
6303.92 6303.9 6303.9 6303.9 Made up from fabrics
.aa 2.10 2.00A 2.01 described in Canadian tariff
6303.9 item 5407.60.10, U.S. tariff
2.00B item 5407.60.05A, 5407.60.10A
or 5407.60.20A or Mexican
tariff item 5407.60.02
6701.00 6701.0 6701.0 6701.0 Articles of feathers or down
.aa 0.10 0.00A 0.01
6701.0
0.02
7011.20 7011.2 7011.2 7011.2 Cones
.aa 0.10 0.00A 0.02
7011.2
0.03
7304.41 7304.4 7304.4 7304.4 Of an external diameter of
.aa 1.10 1.00A 1.02 less than 19 mm
7304.4
1.00B
7321.11 7321.1 7321.1 7321.1 Stoves or ranges (other than
.aa 1.19 1.30 1.02 portable)
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
Parts:
Of stoves or ranges
7321.90 7321.9 7321.9 7321.9 (other than portable):
.aa 0.51 0.30A 0.05 Cooking chambers,
whether or not
7321.90 7321.9 7321.9 7321.9 assembled
.bb 0.52 0.30B 0.06 Top surface panels
with or without
7321.90 7321.9 7321.9 7321.9 burners or control
.cc 0.53 0.30C 0.07 Door assemblies,
incorporating at
least two of the
following: inner
panel, outer panel,
window, insulation
7404.00 7404.0 7404.0 7404.0 Spent anodes; waste and scrap
.aa 0.11 0.00A 0.03 with a copper content of less
7404.0 than 94 percent by weight
0.21
7404.0
0.91
7407.10 7407.1 7407.1 7407.1 Hollow profiles
.aa 0.13 0.10A 0.03
7407.1
0.22
7407.21 7407.2 7407.2 7407.2 Hollow profiles
.aa 1.13 1.10A 1.03
7407.2
1.22
7407.22 7407.2 7407.2 7407.2 Hollow profiles
.aa 2.14 2.10A 2.03
7407.2
2.22
7407.29 7407.2 7407.2 7407.2 Hollow profiles
.aa 9.13 9.10A 9.03
7407.2
9.22
7408.11 7408.1 7408.1 7408.1 With a maximum cross-
.aa 1.11 1.60 1.01 sectional dimension not
7408.1 exceeding 9.5 mm
1.12
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
7506.10 7506.1 7506.1 7506.1 Foil, not exceeding 0.15 mm
.aa 0.22 0.50A 0.01 in thickness
7506.20 7506.2 7506.2 7506.2 Foil, not exceeding 0.15 mm
.aa 0.92 0.50A 0.01 in thickness
8102.92 8102.9 8102.9 8102.9 Bars and rods
.aa 2.10 2.00A 2.01
8111.00 8111.0 8111.0 8111.0 Manganese powders and
.aa 0.21 0.60 0.01 articles of manganese
8111.0
0.22
8111.0
0.40
8406.90 8406.9 8406.9 8406.9 Rotors, finished for final
.aa 0.22 0.10A 0.01 assembly
8406.9 8406.9
8406.90 0.32 0.90A 8406.9 Blades, rotating or
.bb 8406.9 8406.9 0.02 stationary
0.24 0.10C
8406.90 8406.9 8406.9 8406.9 Rotors, not further advanced
.cc 0.34 0.90C 0.03 than cleaned or machined for
8406.9 8406.9 removal of fins, gates,
0.21 0.10B sprues, and risers, or to
8406.9 8406.9 permit location in finishing
0.31 0.90B machinery
8407.34 8407.3 8407.3 8407.3 Engines of a cylinder
.aa 4.10 4.10A 4.02 capacity exceeding 1000 cc
8407.3 but not exceeding 2000 cc
4.20A
8407.34 8407.3 8407.3 8407.3 Engines of a cylinder
.bb 4.20 4.90A 4.99 capacity exceeding 2000 cc
8407.3
4.10B
8407.3
4.20B
8407.3
4.90B
8414.59 see 8414.5 see Turbochargers and
.aa 8414.8 9.80B 8414.8 superchargers for motor
0.aa 0.aa vehicles, where not provided
for under subheading 8414.80
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8414.80 8414.8 8414.8 8414.8 Turbochargers and
.aa 0.10 0.10B 0.14 superchargers for motor
vehicles, where not provided
for under subheading 8414.59
8414.90 8414.9 8414.9 8414.9 Stators and rotors of goods
.aa 0.21 0.20A 0.14 of subheading 8414.30
8414.9 8414.9
0.51 0.20B
8415.90 8415.9 8415.9 8415.9 Chassis, chassis bases and
.aa 0.11 0.00A 0.01 outer cabinets
8415.9 8415.9
0.21 0.00B
8415.9
0.31
8415.9
0.41
8418.99 8418.9 8418.9 8418.9 Door assemblies incorporating
.aa 9.11 9.00A 9.12 at least two of the
8418.9 following: inner panel; outer
9.21 panel; insulation; hinges;
8418.9 handles
9.31
8418.9
9.41
8418.9
9.51
8421.39 8421.3 8421.3 8421.3 Catalytic converters
.aa 9.20 9.00B 9.09
8421.91 8421.9 8421.9 8421.9 Drying chambers for the goods
.aa 1.11 1.00A 1.02 of subheading 8421.12 and
other parts of clothes-dryers
incorporating drying chambers
8421.91 8421.9 8421.9 8421.9 Furniture designed to receive
.bb 1.12 1.00B 1.03 the goods of subheading
8421.12
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8422.90 8422.9 8422.9 8422.9 Water containment chambers
.aa 0.11 0.05A 0.05 for the goods of subheading
8422.9 8422.11 and other parts of
0.22 dishwashing machines of the
household type incorporating
8422.90 8422.9 8422.9 water containment chambers
.bb 8422.9 0.05B 0.06 Door assemblies for the goods
0.12 of subheading 8422.11
8422.9
0.23
8427.10 8427.1 8427.1 8427.1 Rider-type, counterbalanced
.aa 0.10 0.00A 0.03 fork-lift trucks
8427.1
0.04
8427.20 8427.2 8427.2 8427.2 Rider-type, counterbalanced
.aa 0.10 0.00A 0.04 fork-lift trucks
8427.2
0.05
8450.90 8450.9 8450.9 8450.9 Tubs and tub assemblies
.aa 0.11 0.00A 0.01
8450.9
0.21
8450.9 Furniture designed to receive
8450.90 0.31 8450.9 8450.9 the goods of subheading
.bb 8450.9 0.00B 0.02 8450.11 through 8450.20
0.41
8450.9
0.12
8450.9
0.22
8450.9
0.32
8450.9
0.42
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8451.90 8451.9 8451.9 8451.9 Drying chambers for the goods
.aa 0.11 0.00A 0.01 of subheading 8451.21 or
8451.9 8451.29 and other parts of
0.21 drying machines incorporating
8451.90 8451.9 8451.9 8451.9 drying chambers
.bb 0.31 0.00B 0.02 Furniture designed to receive
8451.9 the goods of subheading
0.12 8451.21 or 8451.29
8451.9
0.22
8451.9
0.32
8455.90 8455.9 8455.9 8455.9 Castings or weldments,
.aa 0.10 0.00A 0.01 individually weighing less
than 90 tons, for the
machines of heading 84.55
8459.70 8459.7 8459.7 8459.7 Numerically controlled
.aa 0.10 0.00A 0.03
8460.40 8460.4 8460.4 8460.4 Numerically controlled
.aa 0.10 0.00A 0.02
8460.90 8460.9 8460.9 8460.9 Numerically controlled
.aa 0.11 0.00A 0.03
8460.9
0.91
8461.10 8461.1 8461.1 8461.1 Numerically controlled
.aa 0.10 0.00A 0.03
8461.20 8461.2 8461.2 8461.2 Numerically controlled
.aa 0.11 0.00A 0.01
8461.2
0.21
8461.30 8461.3 8461.3 8461.3 Numerically controlled
.aa 0.10 0.00A 0.01
8461.50 8461.5 8461.5 8461.5 Numerically controlled
.aa 0.10 0.00A 0.03
8461.90 8461.9 8461.9 8461.9 Numerically controlled
.aa 0.11 0.00A 0.02
8461.9
0.91
8462.91 8462.9 8462.9 8462.9 Numerically controlled
.aa 1.10 1.00A 1.05
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8462.99 8462.9 8462.9 8462.9 Numerically controlled
.aa 9.10 9.00A 9.05
8466.93 8466.9 8466.9 8466.9 Bed, base, table, head, tail,
.aa 3.11 3.10A 3.04 saddle, cradle, cross slide,
8466.9 8466.9 column, arm, saw arm,
3.91 3.50A wheelhead, saddle, tailstock,
8466.9 headstock, ram, frame, work-
3.70A arbor support, and C-frame
castings, weldments or
fabrications
8466.94 8466.9 8466.9 8466.9 Bed, base, table, column,
.aa 4.11 4.10A 4.02 cradle, frame, bolster,
8466.9 8466.9 crown, slide, fly wheel, rod,
4.91 4.50A tailstock and headstock
castings, weldments or
fabrications
8469.10 8469.1 8469.1 8469.1 Word processing machines
.aa 0.20 0.00A 0.02
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8471.92 8471.9 8471.9 8471.9 Color cathode-ray tube
.aa 2.31 2.40A 2.02 monitors
8471.9
2.40B Printer units:
Laser:
8471.92 8471.9 8471.9 Capable of
.bb 2.21 8471.9 2.03 producing more than
2.65A 20 pages per minute
8471.9
8471.92 8471.9 2.65B 8471.9 Other
.cc 2.22 8471.9 2.08
2.70A
8471.9 Light bar type
8471.92 8471.9 2.65C 8471.9 electronic
.dd 2.23 8471.9 2.04
2.65D
8471.9 Ink jet
8471.92 8471.9 2.70B 8471.9
.ee 2.24 8471.9 2.05
2.65E Thermal transfer
8471.9
8471.92 8471.9 2.65F 8471.9
.ff 2.25 8471.9 2.06 Ionographic
2.70C
8471.9
8471.92 8471.9 2.65G 8471.9 Combined input/output units
.gg 2.26 8471.9 2.07 Display units with monochrome
2.65H cathode-ray tubes; display
8471.9 units with flat panels
8471.92 8471.9 2.70D 8471.9 exceeding 30.5 cm; other
.hh 2.10 8471.9 2.09 display units excluding
8471.92 8471.9 2.65I 8471.9 display units with color
.ii 2.32 8471.9 2.10 cathode-ray tubes
8471.9 2.65J Display units without a
2.34 8471.9 cathode-ray tube having a
8471.9 2.70E visual display diagonal not
8471.92 2.39 8471.9 8471.9 exceeding 30.5 cm
.jj 2.65K 2.11 Optical scanners and magnetic
8471.9 8471.9 ink recognition devices
8471.92 2.33 2.65L 8471.9
.kk 8471.9 2.12 Other input or output units
8471.9 2.70F
8471.92 2.40 8471.9 8471.9
.ll 2.10 2.99
8471.9 8471.9
2.50 2.40C
8471.9 8471.9
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8471.99 8471.9 8471.9 8471.9 Control or adapter units
.aa 9.91 9.15 9.01 Power supplies
8471.99 8471.9 8471.9 8471.9
.bb 9.92 9.32 9.02 Other units suitable for
8471.9 physical incorporation into
8471.99 8471.9 9.34 8471.9 automatic data processing
.cc 9.98 8471.9 9.03 machines or units thereof
9.60
8473.10 8473.1 8473.1 8473.1 Parts for word processing
.aa 0.91 0.00A 0.01 machines of heading 84.69
8473.10 8473.1 8473.1 8473.1 Parts of other machines of
.bb 0.92 0.00B 0.02 heading 84.69
8473.1
0.93
8473.30 8473.3 8473.3 8473.3 Printed circuit assemblies,
.aa 0.21 0.40A 0.03 other than parts for printers
8473.3 specified in Note 2 of
8473.30 0.22 8473.3 8473.3 Chapter 84
.bb 8473.3 0.40B 0.04 Parts and accessories,
0.23 including face plates and
lock latches, of printed
circuit assemblies of
Canadian tariff item
8473.30 8473.3 8473.3 8473.30.21 or 8473.30.21,
.cc 8473.3 0.40C 0.02 U.S. tariff item 8473.30.40A
0.10 or Mexican tariff item
8473.30.03, not elsewhere
classified
Other parts for printers of
subheading 8471.92, specified
in Note 2 of Chapter 84
8477.90 8477.9 8477.9 8477.9 Base, bed, platen, clamp
.aa 0.11 0.00A 0.01 cylinder, ram and injection
8477.9 castings, weldments, and
8477.90 0.21 8477.9 8477.9 fabrications
.bb 8477.9 0.00B 0.02 Barrel screws
0.12
8477.90 8477.9 8477.9 8477.9 Hydraulic assemblies
.cc 0.22 0.00C 0.03 incorporating at least two or
8477.9 more of the following:
0.13 manifold, valves, pump, oil
8477.9 cooler
0.23
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8479.82 see see 8479.8 Trash compactors
.aa 8479.8 8479.8 2.03
9.aa 9.aa
8479.89 8479.8 8479.8 see Trash compactors
.aa 9.91 9.60B 8479.8
2.aa
8479.90 8479.9 8479.9 8479.9 Frame assemblies
.aa 0.61 0.80B 0.17 incorporating at least two of
the following: baseplate,
side frames, power screws,
8479.90 8479.9 8479.9 8479.9 front plates
.bb 0.62 0.80C 0.18 Ram assemblies incorporating
a ram wrapper and/or ram
8479.90 8479.9 8479.9 8479.9 cover
.cc 0.63 0.80D 0.19 Container assemblies
incorporating at least two of
the following: container
8479.90 8479.9 8479.9 8479.9 bottom, container wrapper,
.dd 0.64 0.80E 0.20 slide track, container front
Cabinet or cases
8482.99 8482.9 8482.9 8482.9 Inner or outer rings or races
.aa 9.11 9.10A 9.01
8482.9 8482.9 8482.9
9.91 9.30A 9.03
8482.9
9.50A
8482.9
9.70A
8501.32 8501.3 8501.3 8501.3 Electric motors that provide
.aa 2.12 2.40A 2.06 primary source for electric
powered vehicles of
subheading 8703.90
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8503.00 8503.0 8503.0 8503.0 Stators and rotors for the
.aa 0.11 0.40A 0.01 goods of heading 85.01
8503.0 8503.0 8503.0
0.12 0.60A 0.05
8503.0 8503.0
0.13 0.60C
8503.0
0.14
8503.0
0.15
8503.0
0.16
8503.0
0.17
8503.0
0.18
8503.0
0.19
8504.40 8504.4 8504.4 8504.4 Power supplies for the
.aa 0.40 0.00A 0.12 automatic data processing
8504.4 machines of heading 84.71
8504.40 8504.4 0.00B 8504.4 Speed drive controllers for
.bb 0.50 8504.4 0.13 electric motors
0.00C
8504.4
0.00D
8504.90 8504.9 8504.9 8504.9 Printed circuit assemblies
.aa 0.12 0.00A 0.07 for the goods of subheadings
8504.9 8504.40 and 8504.90.
0.13
8504.9
0.14
8504.90 8504.9 8504.9 8504.9 Other parts of power supplies
.bb 0.15 0.00B 0.08 for automatic data processing
8504.9 machines of heading 84.71
0.16
8504.9
0.80
8507.20 8507.2 8507.2 8507.2 Batteries that provide
.aa 0.10 0.00B 0.05 primary source for electric
cars
8507.30 8507.3 8507.3 8507.3 Batteries that provide
.aa 0.10 0.00B 0.04 primary source for electric
cars
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8507.40 8507.4 8507.4 8507.4 Batteries that provide
.aa 0.10 0.00B 0.04 primary source for electric
cars
8507.80 8507.8 8507.8 8507.8 Batteries that provide
.aa 0.10 0.00B 0.04 primary source for electric
cars
8508.90 8508.9 8508.9 8508.9 Housings
.aa 0.10 0.00A 0.01
8509.90 8509.9 8509.9 8509.9 Housings
.aa 0.11 0.20A 0.02
8509.9 8509.9
0.21 0.30A
8509.9 8509.9
0.31 0.40A
8509.9
0.41
8516.60 8516.6 8516.6 8516.6 Ovens, cooking stoves and
.aa 0.20 0.40 0.02 ranges
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8516.90 8516.9 8516.9 8516.9 Housings for the goods of
.aa 0.21 0.60A 0.07 subheading 8516.33
8516.90 8516.9 8516.9 8516.9 Housings and steel bases for
.bb 0.71 0.60B 0.08 the goods of subheading
8516.40
8516.90 8516.9 8516.9 8516.9 Assemblies for the goods of
.cc 0.42 0.60C 0.09 subheading 8516.50,
incorporating at least two of
the following: cooking
chamber; structural
8516.90 8516.9 8516.9 8516.9 supporting chassis; door;
.dd 0.41 0.60D 0.10 outer
case
Printed circuit assemblies
for the goods of subheading
8516.50
8516.90 8516.9 8516.9 8516.9 For the goods of Canadian
.ee 0.51 0.20A 0.11 tariff item 8516.60.20, U.S.
8516.90 8516.9 8516.9 8516.9 tariff item 8516.60.40 or
.ff 0.52 0.20B 0.12 Mexican tariff item
8516.60.02:
8516.90 8516.9 8516.9 8516.9 Cooking chambers whether
.gg 0.53 0.20C 0.13 or not assembled
Top surface panels with
or without heating
8516.90 8516.9 8516.9 8516.9 elements or controls
.hh 0.61 0.60E 0.03 Door assemblies
incorporating at least
two of the following:
inner panel; outer
panel; window;
insulation
Housings for toasters
8517.40 8517.4 8517.4 8517.4 Modems, of a kind used with
.aa 0.10 0.10 0.02 data processing machines of
heading 84.71
8517.40 8517.4 8517.4 8517.4 Other apparatus for carrier-
.bb 0.91 0.50 0.03 current line systems,
telephonic
8517.40 8517.4 8517.4 8517.4 Other apparatus for carrier-
.cc 0.92 0.70 0.04 current line systems,
telegraphic
8517.81 see see 8517.8 Facsimile machines
.aa 8517.8 8517.8 1.05
2.aa 2.aa
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8517.82 8517.8 8517.8 see Facsimile machines
.aa 2.10 2.00A 8517.8
1.aa
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
Parts of facsimile machines:
8517.90 8517.9 8517.9 8517.9 Parts of facsimile
.cc 0.31 0.70A 0.10 machines specified in
Note 2 to Chapter 85
8517.90 8517.9 8517.9 8517.9 Other
.hh 0.39 0.70B 0.11 Other parts incorporating
printed circuit assemblies:
8517.90 8517.9 8517.9 8517.9 Parts for telephone sets
.aa 0.41 0.30A 0.12 Parts for goods of
8517.90 8517.9 8517.9 8517.9 subheadings 8517.20,
.bb 0.43 0.05A 0.13 8517.30, 8517.81 and
8517.9 8517.9 Canadian tariff item
0.44 0.10A 8517.40.91, U.S. tariff
8517.9 item 8517.40.50 or
0.15A Mexican tariff item
8517.9 8517.40.03
8517.90 0.35A 8517.9
.dd 8517.9 8517.9 0.14
0.42 0.40A Other
8517.9 8517.9
0.45 0.60A
8517.90 8517.9 8517.9 8517.9 Other parts:
.ee 0.46 0.55A 0.15 Printed circuit
8517.9 assemblies
8517.9 0.70C
0.11 8517.9
8517.9 0.80A
0.12
8517.9 8517.9
0.13 0.05B
8517.9 8517.9
0.14 0.10B
8517.90 8517.9 8517.9
.ff 0.15B 0.16 Parts, including face
8517.9 plates and lock latches,
0.30B for printed circuit
8517.9 assemblies
0.35B
8517.9 8517.9
0.21 0.40B
8517.9 8517.9
0.22 0.55B
8517.9 8517.9
8517.90 0.23 0.60B 8517.9
.gg 8517.9 8517.9 0.99
0.24 0.70D Other
8517.9
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8518.30 8518.3 8518.3 8518.3 Telephone handsets
.aa 0.10 0.10 0.03
8522.90 8522.9 8522.9 8522.9 Printed circuit assemblies
.aa 0.31 0.40A 0.14 for the apparatus provided
8522.9 8522.9 for in headings 85.19, 85.20
0.32 0.40B and 85.21
8522.9 8522.9
0.33 0.60A
8522.9 8522.9
0.34 0.90A
8522.9
0.35
8522.9
0.39
8525.30 8525.3 8525.3 8525.3 Gyrostabilized television
.aa 0.11 0.00A 0.03 cameras
8525.3
8525.30 0.21 8525.3 8525.3 Studio television cameras,
.bb 8525.3 0.00B 0.04 excluding shoulder-carried
0.12 and other portable cameras
8525.3
0.22
8527.90 8527.9 see 8527.9 Paging alert devices
.aa 0.91 8531.8 0.13
0.aa
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8528.10 8528.1 8528.1 8528.1 Non-high definition
.aa 0.21 0.30A 0.01 television receivers, having
8528.1 8528.1 a single picture tube
0.30 0.60B intended for direct viewing
(non-projection type), with
a
8528.10 8528.1 video display diagonal not
.bb 8528.1 8528.1 0.02 exceeding 14 inches (35.56
0.22 0.30B cm)
8528.1 8528.1 Non-high definition
0.40 0.60C television receivers, having
8528.10 8528.1 a single picture tube
.cc 0.03 intended for direct viewing
8528.1 8528.1 (non-projection type), with
a
8528.10 0.24 0.30C 8528.1 video display diagonal
.dd 8528.1 8528.1 0.04 exceeding 14 inches (35.56
0.60 0.60D cm)
8528.10 8528.1 8528.1 8528.1 Non-high definition
.ee 0.23 0.30D 0.05 television receivers,
8528.1 8528.1 projection type, with
8528.10 0.50 0.60E 8528.1 cathode-ray tube
.ff 8528.1 8528.1 0.06 High definition television
0.25 0.30E receivers, non-projection
8528.10 8528.1 8528.1 8528.1 type, with cathode-ray tube
.gg 0.70 0.60F 0.07 High definition television
8528.1 8528.1 receivers, projection type,
0.26 0.30F with cathode-ray tube
8528.1 8528.1 Television receivers, with
0.80 0.60G flat panel screen
8528.1 8528.1
0.11 0.60A Incomplete or unfinished
8528.1 television receivers
0.19 (including assemblies
consisting of all the parts
specified in Note 4 to
Chapter 85 plus a power
supply), not incorporating a
cathode-ray tube, flat panel
screen or similar display
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8529.90 8529.9 8529.9 8529.9 Printed circuit assemblies
.aa 0.11 0.30A 0.16 for goods classified under
8529.9 8529.9 heading 85.25 through 85.28,
0.12 0.35D other than printed circuit
8529.9 8529.9 assemblies of Canadian tariff
0.13 0.40A item 8529.90.31 or
8529.9 8529.9 8529.90.39, U.S. tariff item
8529.90 0.14 0.40B 8529.9 8529.90.10, 8529.90.20A,
.bb 8529.9 0.17 8529.90.20B, 8529.90.35A or
0.45A 8529.90.35B or Mexican tariff
8529.9 8529.9 item 8529.90.18 or 8529.90.19
8529.90 0.20 0.50A 8529.9 Transceiver assemblies for
.cc 8529.9 0.18 the apparatus of subheading
0.40C 8526.10, not elsewhere
8529.9 8529.9 specified
8529.90 0.39 0.40D 8529.9
.dd 8529.9 0.19 Parts of television receivers
0.45B specified in Note 4 to
8529.90 8529.9 8529.9 8529.9 Chapter 85
.ee 0.31 0.10 0.20
8529.9 Combinations of parts of
8529.9 0.20A television receivers
0.40 8529.9 specified in Note 4 to
8529.90 0.35A 8529.9 Chapter 85
.ff 8529.9 0.21 Flat panel screen assemblies
0.20B for the goods of Canadian
8529.9 8529.9 tariff item 8528.10.26 or
0.51 0.35B 8528.10.80, U.S. tariff item
8529.9 8529.9 8528.10.30F or 8528.10.60G or
0.52 0.35C Mexican tariff item
8529.9 8528.10.06
8529.90 0.53 8529.9 Parts and accessories,
.gg 8529.9 0.22 including face plates and
0.54 8529.9 lock latches, of printed
0.30B circuit assemblies of
8529.9 Canadian tariff item
0.35E 8529.90.11, 8529.90.12,
8529.9 8529.9 8529.90.13 or 8529.90.14,
0.60 0.40E U.S. tariff item 8529.90.30A,
8529.9 8529.90.35D, 8529.90.40A,
0.40F 8529.90.40B, 8529.90.45A or
8529.9 8529.90.50A or Mexican tariff
0.45C item 8529.90.16, not
8529.9 elsewhere specified
0.50B Other parts of goods of
headings 85.25 and 85.27
8529.9 (except parts of cellular
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8531.80 see 8531.8 see Paging alert devices
.aa 8527.9 0.00A 8527.9
0.aa 8531.8 0.aa
0.00B
8531.90 8531.9 8531.9 8531.9 Printed circuit assemblies
.aa 0.11 0.00A 0.03
8531.9
0.21
8533.40 8533.4 8533.4 8533.4 Metal oxide varistors
.aa 0.10 0.00A 0.07
8533.90 8533.9 8533.9 8533.9 For the goods of subheading
.aa 0.11 0.00A 0.02 8533.40, of ceramic or
metallic materials,
electrically or mechanically
reactive to changes in
temperature
8535.90 8535.9 8535.9 8535.9 Motor starters and motor
.aa 0.30 0.00A 0.08 overload protectors
8535.9
0.20
8535.9
0.24
8536.30 8536.3 8536.3 8536.3 Motor overload protectors
.aa 0.12 0.00A 0.05
8536.50 8536.5 8536.5 see Motor starters
.aa 0.21 0.00A 8536.9
8536.5 0.aa
0.29
8536.90 see see 8536.9 Motor starters
.aa 8536.5 8536.5 0.07
0.aa 0.aa 8536.9
0.27
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8537.10 8537.1 8537.1 8537.1 Assembled with outer housing
.aa 0.11 0.00A 0.05 or supports, for the goods of
8537.1 heading 84.21, 84.22, 84.50
0.19 or 85.16
8537.1
8537.10 0.41 8537.1 8537.1
.bb 8537.1 0.00B 0.06 Motor control centers
0.49
8537.1
0.31
8537.1
0.39
8538.90 8538.9 8538.9 8538.9 For the goods of Canadian
.aa 0.20 0.00B 0.12 tariff item 8535.90.30,
8536.30.12, 8536.50.21 or
8536.50.29, U.S. tariff item
8535.90.00A, 8536.30.00A or
8536.50.00A or Mexican tariff
item 8535.90.08, 8535.90.20,
8535.90.24, 8536.30.05,
8538.90 8538.9 8538.9 8538.9 8536.90.07 or 8536.90.27, of
.bb 0.30 0.00A 0.13 ceramic or metallic
8538.90 8538.9 8538.9 8538.9 materials, electrically or
.cc 0.60 0.00C 0.14 mechanically reactive to
changes in temperature
Printed circuit assemblies
Moulded parts
8540.11 8540.1 8540.1 8540.1 Non-high definition, for non-
.aa 1.22 1.00A 1.01 projection televisions,
having a video display
diagonal exceeding 14 inches
8540.11 8540.1 8540.1 8540.1 (35.56 cm)
.bb 1.21 1.00B 1.02 Non-high definition, for non-
projection televisions,
having a video display
8540.11 8540.1 8540.1 8540.1 diagonal not exceeding 14
.cc 1.12 1.00C 1.03 inches (35.56 cm)
High definition, having a
8540.11 8540.1 8540.1 8540.1 video display diagonal
.dd 1.11 1.00D 1.04 exceeding 14 inches (35.56
cm)
High definition, having a
video display diagonal not
exceeding 14 inches (35.56
cm)
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8540.12 8540.1 8540.1 8540.1 Non-high definition
.aa 2.90 2.40A 2.99 High definition
8540.12 8540.1 8540.1 8540.1
.bb 2.10 2.40B 2.01
8540.91 8540.9 8540.9 8540.9 Front panel assemblies
.aa 1.10 1.40A 1.03
8540.99 8540.9 8540.9 8540.9 Electron guns; radio
.aa 9.10 9.00A 9.05 frequency (RF) interaction
structures for microwave
tubes of subheading 8540.41
through 8540.49
8542.11 8542.1 8542.1 8542.1 Monolithic integrated
.aa 1.10 1.00A 1.02 circuits for high definition
television, having greater
than 100,000 gates
8543.80 8543.8 8543.8 8543.8 Microwave amplifiers
.aa 0.60 0.90A 0.20
8543.90 8543.9 8543.9 8543.9 Printed circuit assemblies
.aa 0.11 0.40A8 0.01
8543.9 543.90
0.12 .40B
8543.9 8543.9
0.13 0.80A
8543.9
0.14
8607.19 8607.1 8607.1 8607.1 Axles
.aa 9.11 9.10A 9.02
8607.1 Parts of axles
8607.19 8607.1 8607.1 9.06 Wheels, whether or not fitted
.bb 9.13 9.10B 8607.1 with axles
8607.19 8607.1 8607.1 9.07 Parts of wheels
.cc 9.12 9.20A 8607.1
8607.19 8607.1 8607.1 9.03
.dd 9.13 9.20B 8607.1
9.07
8702.10 8702.1 8702.1 8702.1 Designed for the transport of
.aa 0.10 0.00A 0.03 16 or more persons, including
the driver
8702.10 8702.1 8702.1 8702.1 Other
.bb 0.90 0.00B 0.01
8702.1
0.02
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8702.90 8702.9 8702.9 8702.9 Designed for the transport of
.aa 0.10 0.00A 0.04 16 or more persons, including
the driver
8702.90 8702.9 8702.9 8702.9 Other
.bb 0.90 0.00B 0.01
8702.9
0.02
8702.9
0.03
8706.00 8706.0 8706.0 8706.0 Chassis of vehicles of
.aa 0.20 0.10A 0.02 heading 87.03 and subheadings
8706.0 8704.21 and 8704.31
8706.00 8706.0 0.15 8706.0 Chassis for other vehicles
.bb 0.10 8706.0 0.99
8706.0 0.10B
0.90 8706.0
0.25
8706.0
0.30
8706.0
0.50
8708.10 8708.1 8708.1 8708.1 Bumpers, but not parts
.aa 0.10 0.00A 0.01 thereof
8708.29 8708.2 8708.2 8708.2 Body stampings
.aa 9.11 9.00A 9.23
8708.2 Inflators and modules for
8708.29 9.96 8708.2 8708.2 airbags
.bb 8708.2 9.00B 9.21 Door assemblies
8708.29 9.97 8708.2 8708.2
.cc 8708.2 9.00C 9.22 Airbags for use in motor
9.12 vehicles, where not provided
8708.29 8708.2 see see for under subheading 8708.99
.dd 9.20 8708.9 8708.9
8708.2 9.cc 9.cc
9.98
8708.50 8708.5 8708.5 8708.5 For vehicles of heading 87.03
.aa 0.20 0.50 0.06
8708.5
0.07
8708.60 8708.6 8708.6 8708.6 For vehicles of heading 87.03
.aa 0.20 0.50 0.07
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8708.70 8708.7 8708.7 8708.7 Road wheels, but not parts or
.aa 0.11 0.10A 0.01 accessories thereof
8708.7 8708.7 8708.7
0.91 0.30A 0.02
8708.7 8708.7
0.80A 0.03
8708.7
0.04
8708.7
0.05
8708.7
0.99
8708.80 8708.8 8708.8 8708.8 McPherson Struts
.aa 0.10 0.10A 0.04
8708.8
0.50A
8708.93 8708.9 8708.9 8708.9 Clutches, but not parts
.aa 3.11 3.10A 3.01 thereof
8708.9 8708.9 8708.9
3.91 3.50A 3.02
8708.9
3.03
8708.9
3.04
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
8708.99 8708.9 8708.9 8708.9 Vibration control goods
.aa 9.15 9.10A 9.42 containing rubber
8708.9 8708.9
9.25 9.20A
8708.99 8708.9 8708.9 8708.9 Doubled flanged wheel hub
.bb 9.96 9.50A 9.43 units incorporating ball
8708.9 8708.9 bearings
9.16 9.10B
8708.99 8708.9 8708.9 8708.9 Airbags for use in motor
.cc 9.26 9.20B 9.48 vehicles, where not provided
8708.9 8708.9 for under subheading 8708.29
9.97 9.50B
8708.99 see 8708.9 8708.9 Half-shafts and drive shafts
.dd 8708.2 9.10C 9.44
9.dd 8708.9
9.20C Other parts for powertrains
8708.99 8708.9 8708.9 8708.9
.ee 9.11 9.50C 9.45
8708.9 8708.9 Parts for suspension systems
9.21 9.10D
8708.99 8708.9 8708.9 8708.9
.ff 9.92 9.20D 9.46 Parts for steering systems
8708.9 8708.9
9.12 9.50D
8708.99 8708.9 8708.9 8708.9 Other parts and accessories
.gg 9.22 9.10E 9.47 not elsewhere classified
8708.9 8708.9 under subheading 8708.99
9.93 9.20E
8708.99 8708.9 8708.9 8708.9
.hh 9.13 9.50E 9.99
8708.9 8708.9
9.23 9.10F
8708.9 8708.9
9.94 9.20F
8708.9 8708.9
9.14 9.50F
8708.9 8708.9
9.24 9.10G
8708.9 8708.9
9.95 9.20G
8708.9 8708.9
9.19 9.50G
8708.9 8708.9
9.29 9.10H
8708.9 8708.9
9.99 9.20H
8708.9
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
9005.90 9005.9 9005.9 9005.9 Incorporating goods of
.aa 0.11 0.00A 0.03 heading 90.01 or 90.02
9005.9
0.91
9007.19 9007.1 9007.1 9007.1 Gyrostabilized
.aa 9.10 9.00A 9.01
9009.90 9009.9 9009.9 9009.9 Parts of photocopying
.aa 0.10 0.00A 0.02 apparatus of subheading
9009.9 9009.12 specified in Note 3
9009.90 9009.9 0.00B 9009.9 to Chapter 90
.bb 0.90 9009.9 0.99 Other
0.00C
9009.9
0.00D
9018.11 9018.1 9018.1 9018.1 Electrocardiographs
.aa 1.10 1.00A 1.01 Printed circuit assemblies
9018.11 9018.1 9018.1 9018.1
.bb 1.91 1.00B 1.02
9018.19 9018.1 9018.1 9018.1 Patient monitoring systems
.aa 9.10 9.80A 9.16 Printed circuit assemblies
9018.19 9018.1 9018.1 9018.1 for parameter acquisition
.bb 9.91 9.80B 9.17 modules
9018.90 9018.9 9018.9 9018.9 Defibrillators
.aa 0.10 0.70A 0.25 Printed circuit assemblies
9018.90 9018.9 9018.9 9018.9 for the goods of Canadian
.bb 0.91 0.70B 0.26 tariff item 9018.90.10, U.S.
tariff item 9018.90.70A or
Mexican tariff item
9018.90.25
9022.90 9022.9 9022.9 9022.9 Radiation generator units
.aa 0.10 0.90A 0.04 Radiation beam delivery units
9022.90 9022.9 9022.9 9022.9
.bb 0.20 0.90B 0.05
9027.80 9027.8 9027.8 9027.8 Nuclear magnetic resonance
.aa 0.20 0.40A 0.08 instruments
9027.90 9027.9 9027.9 9027.9 Printed circuit assemblies
.aa 0.30 0.44A 0.04 for the goods of subheading
9027.80
TARIFF CANADA USA MEXICO DESCRIPTION
ITEM
9030.90 9030.9 9030.9 9030.9 Printed circuit assemblies
.aa 0.21 0.40A 0.02
9030.9 9030.9
0.23 0.40B
9030.9
0.80A
9030.9
0.80B
9031.80 9031.8 9031.8 9031.8 Coordinate-measuring machines
.aa 0.40 0.00A 0.06
9031.8
0.00B
9031.90 9031.9 9031.9 9031.9 Bases and frames for the
.aa 0.61 0.60A 0.02 goods of Canadian tariff item
9031.9 9031.80.40, U.S. tariff item
0.60B 9031.80.00A or 9031.80.00B or
Mexican tariff item
9031.80.06
9506.39 see see 9506.3 Individual golf clubs
.aa 9506.3 9506.3 9.01
1 1
Title:Annex Cover Page -- Reservations and Exceptions
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:1649
ANNEXES
RESERVATIONS AND EXCEPTIONS
for
Chapter Eleven
(Investment)
Chapter Twelve
(Cross-Border Trade in Services)
Chapter Fourteen
(Financial Services)
ANNEX I Reservations for Existing Measures and
Liberalization Commitments
(Chapters Eleven, Twelve and Fourteen)
ANNEX II Reservations for Future Measures
(Chapters Eleven, Twelve and Fourteen)
ANNEX III Activities Reserved to the State
(Chapter Eleven)
ANNEX IV Exceptions from Most-Favored-Nation Treatment
(Chapter Eleven)
ANNEX V Quantitative Restrictions
(Chapter Twelve)
ANNEX VI Miscellaneous Commitments
(Chapter Twelve)
ANNEX VII Reservations, Specific Commitments and Other
Items
(Chapter Fourteen)
Title:Annex I
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/ascii CHARSET=US-ASCII
Content-Length: 7585
Annex I
1. The Schedule of a Party sets out, pursuant to Articles
1108(1) (Investment), 1206(1) (Cross-Border Trade in Services)
and 1409(4) (Financial Services), the reservations taken by
that Party with respect to existing measures that do not
conform with obligations imposed by:
(a) Article 1102, 1202 or 1405 (National Treatment),
(b) Article 1103, 1203 or 1406 (Most-Favored-Nation
Treatment),
(c) Article 1205 (Local Presence),
(d) Article 1106 (Performance Requirements), or
(e) Article 1107 (Senior Management and Boards of
Directors),
and, in certain cases, sets out commitments for immediate or
future liberalization.
2. Each reservation sets out the following elements:
(a) Sector refers to the general sector in which the
reservation is taken;
(b) Sub-Sector refers to the specific sector in which the
reservation is taken;
(c) Industry Classification refers, where applicable, to
the activity covered by the reservation according to
domestic industry classification codes;
(d) Type of Reservation specifies the obligation referred
to in paragraph 1 for which a reservation is taken;
(e) Level of Government indicates the level of government
maintaining the measure for which a reservation is
taken;
(f) Measures identifies the laws, regulations or other
measures, as qualified, where indicated, by the
Description element, for which the reservation is
taken. A measure cited in the Measures element
Annex I
(i) means the measure as amended, continued or
renewed as of the date of entry into force
of this Agreement, and
(ii) includes any subordinate measure adopted or
maintained under the authority of and
consistent with the measure;
(g) Description sets out commitments, if any, for
liberalization on the date of entry into force of
this Agreement, and the remaining non-conforming
aspects of the existing measures for which the
reservation is taken; and
(h) Phase-Out sets out commitments, if any, for
liberalization after the date of entry into force of
this Agreement.
3. In the interpretation of a reservation, all elements of
the reservation shall be considered. A reservation shall be
interpreted in the light of the relevant provisions of the
Chapters against which the reservation is taken. To the extent
that:
(a) the Phase-Out element provides for the phasing out of
non-conforming aspects of measures, the Phase-Out
element shall prevail over all other elements;
(b) the Measures element is qualified by a liberalization
commitment from the Description element, the Measures
element as so qualified shall prevail over all other
elements; and
(c) the Measures element is not so qualified, the
Measures element shall prevail over all other
elements, unless any discrepancy between the Measures
element and the other elements considered in their
totality is so substantial and material that it would
be unreasonable to conclude that the Measures element
should prevail, in which case the other elements
shall prevail to the extent of that discrepancy.
4. Where a Party maintains a measure that requires that a
service provider be a citizen, permanent resident or resident
of its territory as a condition to the provision of a service
in its territory, a reservation for that measure taken with
respect to Article 1202, 1203 or 1205 or Article 1404, 1405 or
1406 shall operate as a reservation with respect to Article
1102, 1103 or 1106 to the extent of that measure.
Annex I
5. For purposes of this Annex:
CMAP means Clasificaci n Mexicana de Actividades y Productos
(CMAP) numbers as set out in Instituto Nacional de Estad stica,
Geograf a e Inform tica, Clasificaci n Mexicana de Actividades
y Productos, 1988;
concession means an authorization provided by the State to a
person to exploit a natural resource or provide a service, for
which Mexican nationals and Mexican enterprises are granted
priority over foreigners;
CPC means Central Product Classification (CPC) numbers as set
out in Statistical Office of the United Nations, Statistical
Papers, Series M, No. 77, Provisional Central Product
Classification, 1991;
foreigners' exclusion clause means the express provision in an
enterprise's by-laws stating that the enterprise shall not
allow foreigners, directly or indirectly, to become partners or
shareholders of the enterprise;
international cargo means goods that have an origin or
destination outside the territory of a Party;
Mexican enterprise means an enterprise constituted under the
law of Mexico; and
SIC means:
(a) with respect to Canada, Standard Industrial
Classification (SIC) numbers as set out in Statistics
Canada, Standard Industrial Classification, fourth
edition, 1980; and
(b) with respect to the United States, Standard
Industrial Classification (SIC) numbers as set out in
the United States Office of Management and Budget,
Standard Industrial Classification Manual, 1987.
Title:Annex II
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain CHARSET=US-ASCII
Content-Length: 3793
Annex II
1. The Schedule of a Party sets out, pursuant to Articles
1108(3) (Investment) and 1206(3) (Cross-Border Trade in
Services), the reservations taken by that Party with respect to
specific sectors, sub-sectors or activities for which it may
maintain existing, or adopt new or more restrictive, measures
that do not conform with obligations imposed by:
(a) Article 1102 or 1202 (National Treatment);
(b) Article 1103 or 1203 (Most-Favored-Nation Treatment);
(c) Article 1205 (Local Presence);
(d) Article 1106 (Performance Requirements); or
(e) Article 1107 (Senior Management and Boards of
Directors).
2. Each reservation sets out the following elements:
(a) Sector refers to the general sector in which the
reservation is taken;
(b) Sub-Sector refers to the specific sector in which the
reservation is taken;
(c) Industry Classification refers, where applicable, to
the activity covered by the reservation according to
domestic industry classification codes;
(d) Type of Reservation specifies the obligation referred
to in paragraph 1 for which a reservation is taken;
(e) Description sets out the scope of the sector, sub-
sector or activities covered by the reservation; and
(f) Existing Measures identifies, for transparency
purposes, existing measures that apply to the sector,
sub-sector or activities covered by the reservation.
3. In the interpretation of a reservation, all elements of
the reservation shall be considered. The Description element
shall prevail over all other elements.
Annex II
4. For purposes of this Annex:
CMAP means Clasificaci n Mexicana de Actividades y Productos
(CMAP) numbers as set out in Instituto Nacional de Estad stica,
Geograf a e Inform tica, Clasificaci n Mexicana de Actividades
y Productos, 1988;
CPC means Central Product Classification (CPC) numbers as set
out in Statistical Office of the United Nations, Statistical
Papers, Series M, No. 77, Provisional Central Product
Classification, 1991; and
SIC means:
(a) with respect to Canada, Standard Industrial
Classification (SIC) numbers as set out in Statistics
Canada, Standard Industrial Classification, fourth
edition, 1980; and
(b) with respect to the United States, Standard
Industrial Classification (SIC) numbers as set out in
the United States Office of Management and Budget,
Standard Industrial Classification Manual, 1987.
Title:Annex V
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:2958
Annex V
1. The Schedule of a Party sets out the non-discriminatory
quantitative restrictions maintained by that Party pursuant to
Article 1207.
2. Each entry sets out the following elements:
(a) Sector refers to the general sector in which the
quantitative restriction is maintained;
(b) Sub-Sector refers to the specific sector in which the
quantitative restriction is maintained;
(c) Industry Classification refers, where applicable, to
the activity covered by the quantitative restriction
according to domestic industry classification codes;
(d) Level of Government indicates the level of government
maintaining the quantitative restriction;
(e) Measures identifies the measures under which the
quantitative restriction is maintained; and
(f) Description sets out the scope of the sector, sub-
sector or activities covered by the quantitative
restriction.
3. For purposes of this Annex:
CMAP means Clasificaci n Mexicana de Actividades y Productos
(CMAP) numbers as set out in Instituto Nacional de Estad stica,
Geograf a e Inform tica, Clasificaci n Mexicana de Actividades y
Productos, 1988;
CPC means Central Product Classification (CPC) numbers as set out
in Statistical Office of the United Nations, Statistical Papers,
Series M, No. 77, Provisional Central Product Classification,
1991; and
SIC means:
(a) with respect to Canada, Standard Industrial
Classification (SIC) numbers as set out in Statistics
Canada, Standard Industrial Classification, fourth
edition, 1980; and
Annex V
(b) with respect to the United States, Standard Industrial
Classification (SIC) numbers as set out in the United
States Office of Management and Budget, Standard
Industrial Classification Manual, 1987.
Title:Annex VI
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:3135
Annex VI
1. The Schedule of a Party sets out the commitments to
liberalize non-discriminatory measures undertaken by that Party
pursuant to Article 1208.
2. Each commitment sets out the following elements:
(a) Sector refers to the general sector in which the
commitment to liberalize is undertaken;
(b) Sub-Sector refers to the specific sector in which the
commitment to liberalize is undertaken;
(c) Industry Classification refers, where applicable, to
the activity covered by the non-discriminatory measure
to be liberalized according to domestic industry
classification codes;
(d) Level of Government indicates the level of government
maintaining the non-discriminatory measure to be
liberalized;
(e) Measures identifies the non-discriminatory measures to
be liberalized; and
(f) Description sets out the commitment undertaken by the
Party to liberalize a non-discriminatory measure.
3. In the interpretation of a commitment, all elements of the
commitment shall be considered. The Description element shall
prevail over all other elements.
4. For purposes of this Annex:
CMAP means Clasificaci n Mexicana de Actividades y Productos
(CMAP) numbers as set out in Instituto Nacional de Estad stica,
Geograf a e Inform tica, Clasificaci n Mexicana de Actividades y
Productos, 1988;
CPC means Central Product Classification (CPC) numbers as set out
in Statistical Office of the United Nations, Statistical Papers,
Series M, No. 77, Provisional Central Product Classification,
1991; and
Annex VI
SIC means:
(a) with respect to Canada, Standard Industrial
Classification (SIC) numbers as set out in Statistics
Canada, Standard Industrial Classification, fourth
edition, 1980; and
(b) with respect to the United States, Standard Industrial
Classification (SIC) numbers as set out in the United
States Office of Management and Budget, Standard
Industrial Classification Manual, 1987.
Title:Annex VII
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6493
Annex VII
1. Section A of the Schedule of a Party sets out the
reservations taken by that Party, pursuant to Article 1409(1)
(Financial Services), with respect to existing measures that do
not conform with obligations imposed by:
(a) Article 1403 (Establishment of Financial
Institutions);
(b) Article 1404 (Cross-Border Trade);
(c) Article 1405 (National Treatment);
(d) Article 1406 (Most-Favored-Nation Treatment);
(e) Article 1407 (New Financial Services and Data
Processing); or
(f) Article 1408 (Senior Management and Boards of
Directors).
2. Each reservation in Section A sets out the following
elements:
(a) Sector refers to the general sector in which the
reservation is taken;
(b) Sub-Sector refers to the specific sector in which the
reservation is taken;
(c) Industry Classification refers, where applicable, to
the activity covered by the reservation according to
domestic industry classification codes;
(d) Type of Reservation specifies the obligation referred
to in paragraph 1 for which the reservation is taken;
(e) Level of Government indicates the level of government
maintaining the measure for which the reservation is
taken;
(f) Measures identifies the laws, regulations or other
measures, as qualified by the Description element,
for which the reservation is taken. A measure cited
in the Measures element
(i) means the measure as amended, continued or
renewed as of the date of entry into force of
this Agreement, and
(ii) includes any subordinate measure adopted or
maintained under the authority of and consistent
with the measure;
(g) Description sets out references, if any, for
liberalization on the date of entry into force of
this Agreement pursuant to other sections of a
Party's Schedule to this Annex, and the remaining
non-conforming aspects of the existing measures for
which the reservation is taken; and
(h) Phase-Out sets out commitments, if any, for
liberalization after the date of entry into force of
this Agreement.
3. In the interpretation of a reservation, all elements of
the reservation shall be considered. A reservation shall be
interpreted in the light of the relevant provisions of the
Chapter against which the reservation is taken. To the extent
that:
(a) the Phase-Out element provides for the phasing out of
the non-conforming aspects of measures, the Phase-Out
element shall prevail over all other elements;
(b) the Measures element is qualified by a specific
reference in the Description element, the Measures
element as so qualified shall prevail over all other
elements; and
(c) the Measures element is not so qualified, the
Measures element shall prevail over all other
elements, unless any discrepancy between the Measures
element and the other elements considered in their
totality is so substantial and material that it would
be unreasonable to conclude that the Measures element
should prevail, in which case the other elements
shall prevail to the extent of that discrepancy.
4. Section B of the Schedule of a Party sets out reservations
taken by the Party, pursuant to Article 1409(2), for measures
the Party may adopt or maintain that do not conform with
obligations imposed by Article 1403, 1404, 1405, 1406, 1407 or
1408.
5. Section C of the Schedule of a Party sets out the
commitments to liberalize measures undertaken by that Party
pursuant to Article 1409(3).
6. For purposes of this Annex:
Annex VII
CMAP means Clasificaci n Mexicana de Actividades y Productos
(CMAP) numbers as set out in Instituto Nacional de Estad stica,
Geograf a e Inform tica, Clasificaci n Mexicana de Actividades
y Productos, 1988;
CPC means Central Product Classification (CPC) numbers as set
out in Statistical Office of the United Nations, Statistical
Papers, Series M, No. 77, Provisional Central Product
Classification, 1991; and
SIC means:
(a) with respect to Canada, Standard Industrial
Classification (SIC) number as set out in Statistics
Canada, Standard Industrial Classification, fourth
edition, 1980; and
(b) with respect to the United States, Standards
Industrial Classification (SIC) numbers as set out in
the United States Office of Management and Budget,
Standard Industrial Classification Manual, 1987.
Title:Annex I -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain CHARSET=US-ASCII
Content-Length: 92576
Annex I
Schedule of Canada
Sector: Agriculture
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Farm Credit Act, R.S.C. 1985, c. F-2
Farm Credit Regulations, C.R.C. 1978, c. 644
Description: Investment
Loans by the Farm Credit Corporation may be
made only to:
(a) individuals who are Canadian citizens or
permanent residents;
(b) farming corporations controlled by
Canadian citizens or permanent
residents; or
(c) cooperative farm associations, all
members of which are Canadian citizens
or permanent residents.
Phase-Out: None
Annex I - Canada
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation: Performance Requirements (Article 1106)
Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Investment Canada Act, R.S.C. 1985, c. 28
(1st Supp.)
Investment Canada Regulations, SOR/85-611
As qualified by paragraphs 8 through 12 of
the Description element
Description: Investment
1. Under the Investment Canada Act, the
following acquisitions of Canadian businesses
by "non-Canadians" are subject to review by
Investment Canada:
(a) all direct acquisitions of Canadian
businesses with assets of C$5 million or
more;
(b) all indirect acquisitions of Canadian
businesses with assets of C$50 million
or more; and
(c) indirect acquisitions of Canadian
businesses with assets between C$5
million and C$50 million that represent
more than 50 percent of the value of the
assets of all the entities the control
of which is being acquired, directly or
indirectly, in the transaction in
question.
Annex I - Canada
2. A "non-Canadian" is an individual,
government or agency thereof or an entity
that is not "Canadian". "Canadian" means a
Canadian citizen or permanent resident,
government in Canada or agency thereof or
Canadian-controlled entity as provided for in
the Investment Canada Act.
3. In addition, specific acquisitions or
new businesses in designated types of
business activities relating to Canada's
cultural heritage or national identity, which
are normally notifiable, may be reviewed if
the Governor in Council authorizes a review
in the public interest.
4. An investment subject to review under
the Investment Canada Act may not be
implemented unless the Minister responsible
for the Investment Canada Act advises the
applicant that the investment is likely to be
of net benefit to Canada. Such a
determination is made in accordance with six
factors described in the Act, summarized as
follows:
(a) the effect of the investment on the
level and nature of economic activity in
Canada, including the effect on
employment, on the utilization of parts,
components and services produced in
Canada, and on exports from Canada;
(b) the degree and significance of
participation by Canadians in the
investment;
(c) the effect of the investment on
productivity, industrial efficiency,
technological development and product
innovation in Canada;
(d) the effect of the investment on
competition within any industry or
industries in Canada;
Annex I - Canada
(e) the compatibility of the investment with
national industrial, economic and
cultural policies, taking into
consideration industrial, economic and
cultural policy objectives enunciated by
the government or legislature of any
province likely to be significantly
affected by the investment; and
(f) the contribution of the investment to
Canada's ability to compete in world
markets.
5. In making a net benefit determination,
the Minister, through Investment Canada, may
review plans under which the applicant
demonstrates the net benefit to Canada of the
proposed acquisition. An applicant may also
submit undertakings to the Minister in
connection with any proposed acquisition
which is the subject of review. In the event
of noncompliance with an undertaking by an
applicant, the Minister may seek a court
order directing compliance or any other
remedy authorized under the Act.
6. Non-Canadians who establish or acquire
Canadian businesses, other than those
described above, must notify Investment
Canada.
7. Investment Canada will review an
"acquisition of control", as defined in the
Investment Canada Act, of a Canadian business
by an investor of Mexico or of the United
States if the value of the gross assets of
the Canadian business is not less than the
applicable threshold.
8. The review threshold applicable to
investors of Mexico or of the United States,
calculated as set out in the Phase-Out
element, is higher than those described in
paragraph 1. However, this higher review
threshold does not apply in the following
Annex I - Canada
sectors: uranium production and ownership of
uranium producing properties; oil and gas;
financial services; transportation services;
and cultural businesses.
9. Notwithstanding the definition of
"investor of a Party" in Article 1139, only
investors who are nationals, or entities
controlled by nationals as provided for in
the Investment Canada Act, of Mexico or of
the United States may benefit from the higher
review threshold.
10. An indirect "acquisition of control" of
a Canadian business by an investor of Mexico
or of the United States is not reviewable.
11. Notwithstanding Article 1106(1), Canada
may impose requirements, or enforce any
commitment or undertaking, in connection with
the establishment, acquisition, expansion,
conduct or operation of an investment of an
investor of another Party or of a non-Party
for the transfer of technology, production
process or other proprietary knowledge to a
national or enterprise, affiliated to the
transferor, in Canada, in connection with the
review of an acquisition of an investment
under the Investment Canada Act.
12. Except for requirements, commitments or
undertakings relating to technology transfer
as set out in paragraph 11, Article 1106(1)
shall apply to requirements, commitments or
undertakings imposed or enforced under the
Investment Canada Act. Article 1106(1) shall
not be construed to apply to any requirement,
commitment or undertaking imposed or enforced
in connection with a review under the
Investment Canada Act, to locate production,
carry out research and development, employ or
train workers, or to construct or expand
particular facilities, in Canada.
Phase-Out: For investors of Mexico or of the United
Annex I - Canada
States, the applicable threshold for the
review of a direct acquisition of control of
a Canadian business will be:
(a) for the 12-month period beginning on the
date of entry into force of this
Agreement, the monetary amount as
determined in accordance with Annex
1607.3 of the Canada - United States
Free Trade Agreement; and
(b) beginning one year after the date of
entry into force of this Agreement, the
monetary amount for the preceding year
multiplied by an annual adjustment
representing the increase in nominal
Gross Domestic Product, as set out
below.
The calculation of the annual adjustment will
be determined in January of each year after
1994 using the most recently available data
published by Statistics Canada and using the
following formula:
Annual Adjustment =
Current nominal GDP at market prices
----------------------------------------
---------------
Previous year nominal GDP at market
prices
"Current nominal GDP at market prices" means
the arithmetic mean of the nominal Gross
Domestic Product at market prices for the
most recent four consecutive quarters
(seasonally adjusted at annual rates).
"Previous year nominal GDP at market prices"
means the arithmetic mean of the nominal
Gross Domestic Product at market prices for
the four consecutive quarters (seasonally
Annex I - Canada
adjusted at annual rates) for the comparable
period in the year preceding the year used in
calculating the "current nominal GDP at
market prices".
The amounts determined in this manner will be
rounded to the nearest million dollars.
Annex I - Canada
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation: Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government: Provincial
Measures: As set out in the Description element
Description: Investment
Canada or any province, when selling or
disposing of its equity interests in, or the
assets of, an existing state enterprise or an
existing governmental entity, may prohibit or
impose limitations on the ownership of such
interests or assets, and on the ability of
owners of such interests or assets to control
any resulting enterprise, by investors of
another Party or of a non-Party or their
investments. With respect to such a sale or
other disposition, Canada or any province may
adopt or maintain any measure relating to the
nationality of senior management or members
of the board of directors.
For purposes of this reservation:
(a) any measure maintained or adopted after
the date of entry into force of this
Agreement that, at the time of sale or
other disposition, prohibits or imposes
limitations on the ownership of equity
interests or assets or imposes
nationality requirements described in
this reservation shall be deemed to be
an existing measure; and
Annex I - Canada
(b) "state enterprise" means an enterprise
owned or controlled through ownership
interests by Canada or a province and
includes an enterprise established after
the date of entry into force of this
Agreement solely for the purposes of
selling or disposing of equity interests
in, or the assets of, an existing state
enterprise or governmental entity.
Phase-Out: None
Annex I - Canada
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Canada Business Corporations Act, R.S.C.
1985, c. C-44
Canada Corporations Act, R.S.C. 1970, c. C-32
Canada Business Corporations Act Regulations,
SOR/79-316
Description: Investment
"Constraints" may be placed on the issue,
transfer and ownership of shares in federally
incorporated corporations. The object is to
permit corporations to meet Canadian
ownership requirements, under certain laws
set out in the Canada Business Corporations
Act Regulations, in sectors where ownership
is required as a condition to operate or to
receive licenses, permits, grants, payments
or other benefits. In order to maintain
certain "Canadian" ownership levels, a
corporation is permitted to sell
shareholders' shares without the consent of
those shareholders, and to purchase its own
shares on the open market. "Canadian" is
defined in the Canada Business Corporations
Act Regulations.
Phase-Out: None
Annex I - Canada
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of Senior Management and Boards of Directors
Reservation: (Article 1107)
Level of Federal
Government:
Measures: Canada Business Corporations Act, R.S.C.
1985, c. C-44
Canada Business Corporations Act Regulations,
SOR/79-316
Canada Corporations Act, R.S.C. 1970, c. C-32
Special Acts of Parliament incorporating
specific companies
Description: Investment
The Canada Business Corporations Act requires
that a simple majority of the board of
directors, or of a committee thereof, of a
federally-incorporated corporation be
resident Canadians. For purposes of the Act,
"resident Canadian" means an individual who
is a Canadian citizen ordinarily resident in
Canada, a citizen who is a member of a class
set out in the Canada Business Corporations
Act Regulations, or a permanent resident as
defined in the Immigration Act other than one
who has been ordinarily resident in Canada
for more than one year after he became
eligible to apply for Canadian citizenship.
In the case of a holding corporation, not
more than one-third of the directors need be
resident Canadians if the earnings in Canada
of the holding corporation and its
Annex I - Canada
subsidiaries are less than five percent of
the gross earnings of the holding corporation
and its subsidiaries.
Under the Canada Corporations Act, a simple
majority of the elected directors of a
Special Act corporation must be resident in
Canada and citizens of a Commonwealth
country. This requirement applies to every
joint stock company incorporated subsequent
to June 22, 1869 by any Special Act of
Parliament.
Phase-Out: None
Annex I - Canada
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Citizenship Act, R.S.C. 1985, c. C-29
Foreign Ownership of Land Regulations,
SOR/79-416
Description: Investment
The Foreign Ownership of Land Regulations are
made pursuant to the Citizenship Act and the
Alberta Agricultural and Recreational Land
Ownership Act. In Alberta, an ineligible
person or foreign-owned or controlled
corporation may only hold an interest in
controlled land consisting of not more than
two parcels containing, in the aggregate, not
more than 20 acres. An "ineligible person"
is:
(a) an individual who is not a Canadian
citizen or permanent resident;
(b) a foreign government or agency thereof;
or
(c) a corporation incorporated elsewhere
than in Canada.
"Controlled land" means land in Alberta but
does not include:
(a) land other than land owned by the Crown;
Annex I - Canada
(b) land within a city, town, new town,
village or summer village; and
(c) mines or minerals.
Phase-Out: None
Annex I - Canada
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Air Canada Public Participation Act, R.S.C.
1985, c. 35 (4th Supp.)
Canada Development Corporation Reorganization
Act, S.C. 1985, c. 49
Petro-Canada Public Participation Act, S.C.
1991, c. 10
Canadian Arsenals Limited Divestiture
Authorization Act, S.C. 1986, c. 20
Cooperative Energy Act, S.C. 1980-81-82-83,
c. 108
Eldorado Nuclear Limited Reorganization and
Divestiture Act, S.C. 1988, c. 41
Nordion and Theratronics Divestiture
Authorization Act, S.C. 1990, c. 4
Description: Investment
A "non-resident" may not own more than a
specified percentage of the voting shares of
the corporation to which each Act applies.
For each company the restriction is as
follows:
Air Canada: 25 percent
Canada Development Corporation: 25 percent
Petro-Canada Inc: 25 percent
Canadian Arsenals Limited: 25 percent
Nordion Limited: 25 percent
Eldorado Nuclear Limited: 5 percent
Annex I - Canada
Cooperative Energy Corporation: 49 percent
"Non-resident" generally means:
Theratronics Limited: 49 percent
(a) an individual, other than a Canadian
Sub-Sector:
Sector: All Sectors
citizen, who is not ordinarily resident
(i) established by a non-resident as
(d) a corporation that is controlled
(b) a corporation incorporated, formed or
otherwise organized outside Canada;
political subdivision thereof, or a
person empowered to perform a function
(e) a trust
(c) the government of a foreign state or any
through (c);
as defined in any of paragraphs (a)
in Canada;
or duty on behalf of such a government;
directly or indirectly by non-residents
the administration of a pension
in any of paragraphs (a) through
fund for the benefit of individuals
a majority of whom are residents,
(d) have more than 50 percent of
the beneficial interest; or
(ii) in which non-residents as defined
or
directly or indirectly by a trust
(f) a corporation that is controlled
referred to in paragraph (e).
defined in any of paragraphs (b)
Phase-Out: None through (d), other than a trust for
Annex I - Canada
Industry
Classification:
Type of Local Presence (Article 1205)
Reservation:
Level of Federal
Government:
Measures: Export and Import Permits Act, R.S.C. 1985,
c. E-19
Description: Cross-Border Services
Only individuals ordinarily resident in
Canada, enterprises having their head offices
in Canada or branch offices in Canada of
foreign enterprises may apply for and be
issued import or export permits or transit
authorization certificates for goods and
related services subject to controls under
the Export and Import Permits Act.
Phase-Out: None
Annex I - Canada
Sector: Automotive
Sub-Sector:
Industry Classification:
Type of Performance Requirements (Article 1106)
Reservation:
Federal
Level of
Government:
Measures: Canada - United States Free Trade Agreement
Implementation Act, S.C. 1988, c. 65
Description: Investment
Canada may grant waivers of customs duties
conditioned, explicitly or implicitly, on the
fulfillment of performance requirements:
(a) to those manufacturers of automotive
goods set out in Part One of Annex
1002.1 of the Canada - United States
Free Trade Agreement, in accordance with
the headnote to that Part; and
(b) for the applicable periods specified in
Article 1002(2) and (3) of the Canada -
United States Free Trade Agreement to
those manufacturers of automotive goods
set out in Parts Two and Three,
respectively, of Annex 1002.1 of that
Agreement.
Phase-Out: (a) None
(b) For Part Two, until January 1, 1998; and
for Part Three, until January 1, 1996 or
such earlier date specified in existing
agreements between Canada and the
recipient of the waiver.
Annex I - Canada
Sector: Business Service Industries
Sub-Sector: Customs Brokerages and Brokers
Industry SIC 7794 Customs Brokers
Classification:
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)
Customs Brokers Licensing Regulations,
SOR/86-1067
Description: Cross-Border Services and Investment
To be a licensed customs broker or brokerage
in Canada:
(a) an individual must be a Canadian citizen
or permanent resident;
(b) a corporation must be incorporated in
Canada with a majority of its directors
being Canadian citizens or permanent
residents; and
(c) a partnership must be composed of
persons who are Canadian citizens or
permanent residents, or corporations
incorporated in Canada with a majority
of their directors being Canadian
citizens or permanent residents.
An individual who is not a licensed customs
broker but who transacts business as a
customs broker on behalf of a licensed
customs broker or brokerage must be a
Canadian citizen or permanent resident.
Phase-Out: None. Subject to discussion by the Parties
Annex I - Canada
five years after the date of entry into force
of this Agreement.
Annex I - Canada
Sector: Business Service Industries
Sub-Sector: Duty Free Shops
Industry SIC 6599 Other Retail Stores, Not Elsewhere
Classification: Classified (limited to duty free
shops)
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)
Duty Free Shop Regulations, SOR/86-1072
Description: Cross-Border Services and Investment
1. To be a licensed duty free shop operator
at a land border crossing in Canada, an
individual must:
(a) be a Canadian citizen or permanent
resident;
(b) be of good character;
(c) be principally resident in Canada;
and
(d) have resided in Canada for at least
183 days of the year preceding the
year of application for the
license.
2. To be a licensed duty free shop operator
at a land border crossing in Canada, a
corporation must:
(a) be incorporated in Canada; and
(b) have all of its shares beneficially
owned by Canadian citizens or
permanent residents who meet the
requirements of paragraph 1.
Phase-Out: None
Annex I - Canada
Sector: Business Service Industries
Sub-Sector: Examination Services relating to the Export
and Import of Cultural Property
Industry SIC 999 Other Services, Not Elsewhere
Classification: Classified (limited to cultural
property examination services)
Type of Local Presence (Article 1205)
Reservation:
Level of Federal
Government:
Measures: Cultural Property Export and Import Act,
R.S.C. 1985, c. C-51
Description: Cross-Border Services
Only a "resident of Canada" or an
"institution" in Canada may be designated as
an "expert examiner" of cultural property for
purposes of the Cultural Property Export and
Import Act. A "resident" of Canada is an
individual who is ordinarily resident in
Canada, or a corporation that has its head
office in Canada or maintains one or more
establishments in Canada to which employees
employed in connection with the business of
the corporation ordinarily report for work.
An "institution" is an institution that is
publicly owned and operated solely for the
benefit of the public, that is established
for educational or cultural purposes and that
conserves objects and exhibits them.
Phase-Out: None
Annex I - Canada
Sector: Business Service Industries
Sub-Sector: Patent Agents and Agencies
Industry SIC 999 Other Services, Not Elsewhere
Classification: Classified (limited to patent
agency)
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Patent Act, R.S.C. 1985, c. P-4
Patent Rules, C.R.C. 1978, c. 1250
Patent Cooperation Treaty Regulations,
SOR/89-453
Description: Cross-Border Services
To represent persons in the presentation and
prosecution of applications for patents or in
other business before the Patent Office, a
patent agent must be resident in Canada and
registered by the Patent Office.
A registered patent agent who is not resident
in Canada must appoint a registered patent
agent who is resident in Canada as an
associate to prosecute an application for a
patent.
An enterprise may be added to the patent
register provided that it has at least one
member who is also on the register.
Phase-Out: Citizenship and permanent residency
requirements are subject to removal within
two years of the date of entry into force of
this Agreement in accordance with Article
1210(3).
Annex I - Canada
Sector: Business Service Industries
Sub-Sector: Trade-Mark Agents
Industry SIC 999 Other Services, Not Elsewhere
Classification: Classified (limited to trade-mark
agency)
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)
Level of Federal
Government:
Measures: Trade-Marks Act, R.S.C. 1985, c. T-13
Trade-Marks Regulations, C.R.C. 1978, c. 1559
Description: Cross-Border Services
To represent persons in the presentation and
prosecution of applications for trade-marks
or in other business before the Trade-Mark
Office, a trade-mark agent must be resident
in Canada and registered by the Trade-Mark
Office.
A registered trade-mark agent who is not
resident in Canada must appoint a registered
trade-mark agent who is resident in Canada as
an associate to prosecute an application for
a trade-mark.
Trade-mark agents who are resident, and are
registered (in good standing), in a
Commonwealth country or the United States may
be added to the register of trade-mark
agents.
Phase-Out: Citizenship and permanent residency
requirements are subject to removal within
two years of the date of entry into force of
this Agreement in accordance with Article
1210(3).
Annex I - Canada
Sector: Energy
Sub-Sector: Oil and Gas
Industry SIC 071 Crude Petroleum and Natural Gas
Classification: Industries
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Canada Petroleum Resources Act, R.S.C. 1985,
c. 36 (2nd Supp.)
Territorial Lands Act, R.S.C. 1985, c. T-7
Public Lands Grants Act, R.S.C. 1985, c. P-30
Canada - Newfoundland Atlantic Accord
Implementation Act, S.C. 1987, c. 3
Canada - Nova Scotia Offshore Petroleum
Resources Accord Implementation Act, S.C.
1988, c. 28
Canada Oil and Gas Land Regulations, C.R.C.
1978, c. 1518
Description: Investment
This reservation applies to production
licenses issued with respect to "frontier
lands" and "offshore areas" (areas not under
provincial jurisdiction) as defined in the
applicable measures.
Persons who hold oil and gas production
licenses or shares therein for discoveries
made after March 5, 1982 must be Canadian
citizens ordinarily resident in Canada,
permanent residents or corporations
incorporated in Canada. No production
license may be issued for discoveries made
after March 5, 1982 unless the Minister of
Energy, Mines and Resources is satisfied that
the Canadian ownership rate of the
Annex I - Canada
interest-owner in relation to the production
license on the date of issuance would not be
less than 50 percent. "Interest-owner" is
defined in the Canada Petroleum Resources Act
to mean "the interest holder who owns an
interest or the group of interest holders who
hold all the shares of an interest".
The Canadian ownership requirements for oil
and gas production licenses for discoveries
made prior to March 5, 1982, are set out in
the Canada Oil and Gas Land Regulations.
Phase-Out: None
Annex I - Canada
Sector: Energy
Sub-Sector: Oil and Gas
Industry SIC 071 Crude Petroleum and Natural Gas
Classification: Industries
Type of Performance Requirements (Article 1106)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Canada Oil and Gas Production and
Conservation Act, R.S.C. 1985, c. O-7, as
amended by Canada Oil and Gas Operations Act,
S.C. 1992, c. 35
Canada - Nova Scotia Offshore Petroleum
Resources Accord Implementation Act, S.C.
1988, c. 28
Canada - Newfoundland Atlantic Accord
Implementation Act, S.C. 1987, c. 3
Measures implementing Yukon Oil and Gas
Accord
Measures implementing Northwest Territories
Oil and Gas Accord
As qualified by paragraphs 5 and 6 of the
Description element
Description: Cross-Border Services and Investment
1. Under the Canada Oil and Gas Operations
Act, the approval of the Minister of Energy,
Mines and Resources of a "benefits plan" is
required to receive authorization to proceed
with any oil and gas development project.
2. A "benefits plan" is a plan for the
employment of Canadians and for providing
Canadian manufacturers, consultants,
contractors and service companies with a full
and fair opportunity to participate on a
competitive basis in the supply of goods and
Annex I - Canada
services used in any proposed work or
activity referred to in the benefits plan.
The Act permits the Minister to impose an
additional requirement on the applicant, as
part of the benefits plan, to ensure that
disadvantaged individuals or groups have
access to training and employment
opportunities or can participate in the
supply of goods and services used in any
proposed work referred to in the benefits
plan.
3. The Canada - Nova Scotia Offshore
Petroleum Resources Accord Implementation Act
and the Canada - Newfoundland Atlantic Accord
Implementation Act have the same requirement
for a benefits plan but also require that the
benefits plan ensure that:
(a) prior to carrying out any work or
activity in the offshore area, the
corporation or other body submitting the
plan establish in the applicable
province an office where appropriate
levels of decision-making are to take
place;
(b) expenditures be made for research and
development to be carried out in the
province, and for education and training
to be provided in the province; and
(c) first consideration be given to goods
produced or services provided from
within the province, where those goods
or services are competitive in terms of
fair market price, quality and delivery.
4. The Boards administering the benefits
plan under these Acts may also require that
the plan include provisions to ensure that
disadvantaged individuals or groups, or
corporations owned or cooperatives operated
by them, participate in the supply of goods
and services used in any proposed work or
activity referred to in the plan.
Annex I - Canada
5. In addition, Canada may impose any
requirement or enforce any commitment or
undertaking for the transfer of technology,
a
production process or other proprietary
knowledge to a person of Canada in connection
with the approval of development projects
under the applicable Acts.
6. Provisions similar to those set out
above will be included in laws or regulations
to implement the Yukon Oil and Gas Accord and
Northwest Territories Oil and Gas Accord
which for purposes of this reservation shall
be deemed, once concluded, to be existing
measures.
Phase-Out: None
Annex I - Canada
Sector: Energy
Sub-Sector: Oil and Gas
Industry SIC 071 Crude Petroleum and Natural Gas
Classification: Industries
Type of Performance Requirements (Article 1106)
Reservation:
Level of Federal
Government:
Measures: Canada - Newfoundland Atlantic Accord
Implementation Act, S.C. 1987, c. 3
Hibernia Development Project Act, S.C. 1990,
c. 41
Description: Investment
Pursuant to the Hibernia Development Project
Act, Canada and the "Hibernia Project Owners"
may enter into agreements whereby the Project
Owners undertake to perform certain work in
Canada and Newfoundland and to use their
"best efforts" to achieve specific Canadian
and Newfoundland "target levels" in relation
to the provisions of any "benefit plan"
required under the Canada-Newfoundland
Atlantic Accord Implementation Act.
"Benefits plans" are further described in
Schedule of Canada, Annex I, page I-C-25.
In addition, Canada may impose in connection
with the Hibernia project any requirement or
enforce any commitment or undertaking for the
transfer of technology, a production process
or other proprietary knowledge to a national
or enterprise in Canada.
Phase-Out: None
Annex I - Canada
Sector: Energy
Sub-Sector: Uranium
Industry SIC 0616 Uranium Mines
Classification:
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Level of Federal
Government:
Measures: Investment Canada Act, R.S.C. 1985, c. 28
(1st Supp.)
Investment Canada Regulations, SOR/85-611
Policy on Non-Resident Ownership in the
Uranium Mining Sector, 1987
Description: Investment
Ownership by "non-Canadians", as defined in
the Investment Canada Act, of a uranium
mining property is limited to 49 percent at
the stage of first production. Exceptions
to this limit may be permitted if it can be
established that the property is in fact
"Canadian-controlled" as defined in the
Investment Canada Act.
Exemptions from the policy are permitted,
subject to approval of the Governor in
Council, only in cases where Canadian
participants in the ownership of the property
are not available. Investments in properties
by non-Canadians, made prior to December 23,
1987 and that are beyond the permitted
ownership level, may remain in place. No
increase in non-Canadian ownership is
permitted.
Phase-Out: None
Annex I - Canada
Sector: Fisheries
Sub-Sector: Fish Harvesting and Processing
Industry SIC 031 Fishing Industry
Classification:
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Level of Federal
Government:
Measures: Coastal Fisheries Protection Act, R.S.C.
1985, c. C-33
Fisheries Act, R.S.C. 1985, c. F-14
Coastal Fisheries Protection Regulations,
C.R.C. 1978, c. 413
Policy on Foreign Investment in the Canadian
Fisheries Sector, 1985
Commercial Fisheries Licensing Policy
Description: Investment
Under the Coastal Fisheries Protection Act,
foreign fishing vessels are prohibited from
entering Canada's Exclusive Economic Zone
except under authority of a license or under
treaty. "Foreign" vessels are those which
are not "Canadian" as defined in the Coastal
Fisheries Protection Act. Under the
Fisheries Act, the Minister of Fisheries and
Oceans has discretionary authority with
respect to the issuance of licenses.
Fish processing enterprises that have a
foreign ownership level of more than 49
percent are prohibited from holding Canadian
commercial fishing licenses.
Phase-Out: None
Annex I - Canada
Sector: Fisheries
Sub-Sector: Fishing-Related Services
Industry SIC 032 Services Incidental to Fishing
Classification:
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article 1203)
Level of Federal
Government:
Measures: Coastal Fisheries Protection Act, R.S.C.
1985, c. C-33
Description: Cross-Border Services
Under the Coastal Fisheries Protection Act,
the Department of Fisheries and Oceans is
responsible for controlling the activities of
foreign fishing vessels in Canada's Exclusive
Economic Zone, including access to Canadian
ports (port privileges).
In general, the Department grants such port
privileges, including the purchase of fuel
and supplies, ship repair, crew exchanges and
transshipment of fish catches, only to
fishing vessels from a country with which it
has favorable fishery relations, based
primarily on adherence by that country to
Canadian and international conservation
practices and policies. Exceptions to this
general rule are permitted in cases of
emergency ("force majeure") and where the
specific provisions of bilateral fisheries
treaties apply.
Phase-Out: None
Annex I - Canada
Sector: Transportation
Sub-Sector: Air Transportation
Industry SIC 451 Air Transport Industries
Classification:
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: National Transportation Act, 1987, R.S.C.
1985, c. 28 (3rd Supp.)
Aeronautics Act, R.S.C. 1985, c. A-2
Air Regulations, C.R.C. 1978, c. 2
Aircraft Marking and Registration
Regulations, SOR/90-591
Description: Investment
Only "Canadians" may provide the following
commercial air transportation services:
(a) "domestic services" (air services
between points, or from and to the same
point, in the territory of Canada, or
between a point in the territory of
Canada and a point not in the territory
of another country);
(b) "scheduled international services"
(scheduled air services between a point
in the territory of Canada and a point
in the territory of another country)
where those services have been reserved
to Canadian carriers under existing or
future bilateral agreements; and
(c) "non-scheduled international services"
(non-scheduled air services between a
point in the territory of Canada and a
point in the territory of another
country) where those services have been
Annex I - Canada
reserved to Canadian carriers under the
National Transportation Act, 1987.
"Canadian" is defined in the National
Transportation Act, 1987 to mean a Canadian
citizen or permanent resident, a government
in Canada or agent thereof or any other
person or entity that is controlled in fact
by, and of which at least 75 percent of the
voting interests are owned and controlled by,
persons otherwise meeting these requirements.
Regulations made under the Aeronautics Act
also require that a Canadian air carrier
operate Canadian-registered aircraft. To be
qualified to register aircraft in Canada, a
carrier must be a Canadian citizen or
permanent resident, or a corporation
incorporated and having its principal place
of business in Canada, its chief executive
officer and not fewer than two-thirds of its
directors as Canadian citizens or permanent
residents and not less than 75 percent of its
voting interest owned and controlled by
persons otherwise meeting these requirements.
In addition, all commercial air services in
Canada require a Canadian operating
certificate to ensure their safety and
security. An operating certificate for the
provision of services restricted to Canadian
carriers is issued only to qualified persons.
A corporation incorporated in Canada but that
does not meet the Canadian ownership and
control requirements may only register a
private aircraft when the corporation is the
sole owner of the aircraft. The regulations
also have the effect of limiting
"non-Canadian" corporations operating
foreign-registered private aircraft within
Canada to the carriage of their own
employees.
For specialty air services, see Schedule of
Canada, Annex II, page II-C-10.
Phase-Out: None
Annex I - Canada
Sector: Transportation
Sub-Sector: Air Transportation
Industry SIC 4513 Non-Scheduled Air Transport,
Classification: Specialty, Industry
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Aeronautics Act, R.S.C. 1985, c. A-2
Air Regulations, C.R.C. 1978, c. 2
Aircraft Marking and Registration
Regulations, SOR/90-591
Foreign Air Carrier Certification Manual, TP
11524, and the Personnel Licensing Handbook,
TP 193 (Department of Transport)
As qualified by paragraph 2 of the
Description element
Description: Cross-Border Services
1. An operating certificate issued by the
Department of Transport is required to
provide specialty air services in the
territory of Canada. The Department of
Transport will issue an operating certificate
to a person applying for authority to provide
specialty air services, subject to compliance
by that person with Canadian safety
requirements. An operating certificate for
the provision of aerial construction, heli-
logging, aerial inspection, aerial
surveillance, flight training, aerial
sightseeing, and aerial spraying services is
not issued to a person that is not Canadian
Annex I - Canada
as provided for in the applicable
regulations. For investment, see Schedule of
Canada, Annex II, page II-C-10.
2. A person of Mexico or of the United
States may obtain an operating certificate,
subject to compliance by that person with
Canadian safety requirements, for the
provision of aerial mapping, aerial
surveying, aerial photography, forest fire
management, fire-fighting, aerial
advertising, glider towing and parachute
jumping services.
Phase-Out: Cross-Border Services
A person of Mexico or of the United States
will be permitted to obtain an operating
certificate, subject to compliance by that
person with Canadian safety requirements, for
the provision of the following specialty air
services:
(a) two years after the date of entry into
force of this Agreement, aerial
construction and heli-logging services;
(b) three years after the date of entry into
force of this Agreement, aerial
inspection, aerial surveillance, flight
training, and aerial sightseeing
services; and
(c) six years after the date of entry into
force of this Agreement, aerial spraying
services.
Annex I - Canada
Sector: Transportation
Sub-Sector: Air Transportation
Industry SIC 4523 Aircraft Servicing Industry
Classification: SIC 3211 Aircraft and Aircraft Parts
Industry
Type of Most-Favored-Nation Treatment (Article 1203)
Reservation: Local Presence (1205)
Level of Federal
Government:
Measures: Aeronautics Act, R.S.C. 1985, c. A-2
Airworthiness Manual, chapters 573 and 575,
made under the authority of Air Regulations,
C.R.C. 1978, c. 2
Agreement Concerning Airworthiness
Certification, Exchange of Letters between
Canada and the United States, dated August
31, 1984, CTS 1984/26
Description: Cross-Border Services
Aircraft repair, overhaul or maintenance
activities required to maintain the
airworthiness of Canadian-registered aircraft
must be performed by Canadian-certified
persons (approved maintenance organizations
and aircraft maintenance engineers).
Certifications are not provided for persons
located outside Canada, except sub-
organizations of approved maintenance
organizations that are themselves located in
Canada.
Pursuant to an airworthiness agreement
between Canada and the United States, Canada
recognizes the certifications and oversight
provided by the United States for all repair,
overhaul and maintenance facilities and
individuals performing the work located in
the United States.
Phase-Out: None I-C-38
Annex I - Canada
Sector: Transportation
Sub-Sector: Land Transportation
Industry SIC 456 Truck Transport Industries
Classification: SIC 4572 Interurban and Rural Transit
Systems Industry
SIC 4573 School Bus Operations Industry
SIC 4574 Charter and Sightseeing Bus
Services Industry
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Measures: Motor Vehicle Transport Act, 1987, R.S.C.
1985, c. 29 (3rd Supp.), Parts I and II
National Transportation Act, 1987, R.S.C.
1985, c. 28 (3rd Supp.), Part IV
Customs Tariff, R.S.C. 1985, c. 41 (3rd
Supp.)
Description: Cross-Border Services
Only persons of Canada, using Canadian-
registered and either Canadian-built or duty-
paid trucks or buses, may provide truck or
bus services between points in the territory
of Canada.
Phase-Out: None
Annex I - Canada
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 4541 Freight and Passenger Water
Classification: Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
SIC 4549 Other Water Transport Industries
SIC 4553 Marine Salvage Industry
SIC 4559 Other Service Industries Incidental
to Water Transport
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)
Level of Federal
Government:
Measures: Canada Shipping Act, R.S.C. 1985, c. S-9,
Part II
Description: Cross-Border Services
To register a vessel in Canada for purposes
of providing international maritime
transportation services, the owner of that
vessel must be:
(a) a Canadian citizen or a citizen of a
Commonwealth country; or
(b) a corporation incorporated under the
laws of, and having its principal place
of business in, Canada or a Commonwealth
country.
For domestic maritime transportation services
(cabotage), see Schedule of Canada, Annex II,
page II-C-11.
Phase-Out: None
Annex I - Canada
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 4541 Freight and Passenger Water
Classification: Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
SIC 4549 Other Water Transport Industries
SIC 4553 Marine Salvage Industry
SIC 4554 Piloting Service, Water Transport
Industry
SIC 4559 Other Service Industries Incidental
to Water Transport
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Canada Shipping Act, R.S.C. 1985, c. S-9,
Part II
Description: Cross-Border Services
Masters, mates, and engineers must be
certified by the Department of Transport as
ship's officers while engaged on a Canadian-
registered vessel. Only Canadian citizens or
permanent residents may be certified as
ship's officers.
Phase-Out: None
Annex I - Canada
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 4554 Piloting Service, Water Transport
Classification: Industry
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Pilotage Act, R.S.C. 1985, c. P-14
General Pilotage Regulations, C.R.C. 1978, c.
1263
Atlantic Pilotage Authority Regulations,
C.R.C. 1978, c. 1264
Laurentian Pilotage Authority Regulations,
C.R.C. 1978, c. 1268
Great Lakes Pilotage Regulations, C.R.C.
1978, c. 1266
Pacific Pilotage Regulations, C.R.C. 1978, c.
1270
Description: Cross-Border Services
Subject to Schedule of Canada, Annex II, page
II-C-14, a license issued by the Department
of Transport is required to provide pilotage
services in the territory of Canada. Only
Canadian citizens or permanent residents may
obtain such a license. A permanent resident
of Canada who has been issued a pilot's
license must become a Canadian citizen within
five years of receipt of the license in order
to retain it.
Phase-Out: None
Annex I - Canada
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 454 Water Transport Industries
Classification:
Type of Local Presence (Article 1205)
Reservation:
Level of Federal
Government:
Measures: Shipping Conferences Exemption Act, 1987,
R.S.C. 1985, c. 17 (3rd Supp.)
Description: Cross-Border Services
Members of a shipping conference must
maintain jointly an office or agency in the
region of Canada where they operate. A
shipping conference is an association of
ocean carriers that has the purpose or effect
of regulating rates and conditions for the
transportation by those carriers of goods by
water.
Phase-Out: None
Annex I - Canada
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 4541 Freight and Passenger Water
Classification: Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
Type of Most-Favored-Nation Treatment (Article 1203)
Reservation:
Level of Federal
Government:
Measures: Coasting Trade Act, S.C. 1992, c. 31
Description: Cross-Border Services
The prohibitions under the Coasting Trade
Act, set out in Schedule of Canada, Annex II,
page II-C-11, do not apply to any vessel that
is owned by the U.S. Government when used
solely for the purpose of transporting goods
owned by the U.S. Government from the
territory of Canada to supply Distant Early
Warning sites.
Phase-Out: None
Title:Annex II -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length: 26428
Annex II
Schedule of Canada
Sector: Aboriginal Affairs
Sub-Sector:
Industry
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles
1103,
1203)
Local Presence (Article 1205)
Performance Requirements (Article 1106)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Canada reserves the right to adopt or
maintain any measure denying investors of
another Party and their investments, or
service providers of another Party, any
rights or preferences provided to
aboriginal
peoples.
Existing Measures: Constitution Act, 1982, being Schedule B of
the Canada Act 1982 (U.K.), 1982, c. 11
Annex II - Canada
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Description: Investment
Canada reserves the right to adopt or
maintain any measure relating to residency
requirements for the ownership by investors
of another Party, or their investments, of
oceanfront land.
Existing Measures:
Annex II - Canada
Sector: Communications
Sub-Sector: Telecommunications Transport Networks and
Services, Radiocommunications and Submarine
Cables
Industry CPC 752 Telecommunications Services
Classification: CPC 7543 Connection Services
CPC 7549 Other Telecommunications Services
Not Elsewhere Classified (limited
to telecommunications transport
networks and services)
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article
1103)
Senior Management and Boards of Directors
(Article 1107)
Description: Investment
Canada reserves the right to adopt or
maintain any measure relating to investment
in telecommunications transport networks
and
telecommunications transport services,
radiocommunications and submarine cables,
including ownership restrictions and
measures
concerning corporate officers and directors
and place of incorporation.
This reservation does not apply to
providers
of enhanced or value-added services whose
underlying telecommunications transmission
facilities are leased from providers of
public telecommunications transport
networks.
Existing Measures: Bell Canada Act, S.C. 1987, c. 19
British Columbia Telephone Company Special
Act, S.C. 1916, c. 66
Teleglobe Canada Reorganization and
Divestiture Act,
S.C. 1987, c. 12
Telesat Canada Reorganization and
Divestiture
Act,
Annex II - Canada
S.C 1991, c. 52
Radiocommunication Act, R.S.C. 1985, c. R-2
Telegraphs Act, R.S.C. 1985, c. T-5
Telecommunications Policy Framework, 1987
Annex II - Canada
Sector: Communications
Sub-Sector: Telecommunications Transport Networks and
Services, Radiocommunications and Submarine
Cables
Industry CPC 752 Telecommunications Services (not
Classification: including enhanced or value-added
services)
CPC 7543 Connection Services
CPC 7549 Other Telecommunications Services
Not Elsewhere Classified (limited
to telecommunications transport
networks and services)
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article
1203)
Local Presence (Article 1205)
Description: Cross-Border Services
Canada reserves the right to adopt or
maintain any measure relating to
radiocommunications, submarine cables and
the
provision of telecommunications transport
networks and telecommunications transport
services. These measures may apply to such
matters as market entry, spectrum
assignment,
tariffs, intercarrier agreements, terms and
conditions of service, interconnection
between networks and services, and routing
requirements that impede the provision on
a
cross-border basis of telecommunications
transport networks and telecommunications
transport services, radiocommunications and
submarine cables.
Telecommunications transport services
typically involve the real-time
transmission
of customer-supplied information between
two
or more points without any end-to-end
change
in the form or content of the customer's
information, whether or not such services
are
offered to the public generally. These
services include voice and data services by
Annex II - Canada
wire, radiocommunications or any other
electromagnetic means of transmission.
This reservation does not apply to measures
relating to the cross-border provision of
enhanced or value-added services.
Existing Measures: Bell Canada Act, S.C. 1987, c. 19
British Columbia Telephone Company Special
Act, S.C. 1916,
c. 66
Railway Act, R.S.C. 1985, c. R-3
Radiocommunication Act, R.S.C. 1985, c. R-2
Telegraphs Act, R.S.C. 1985, c. T-5
Telecommunications Policy Framework, 1987
Telecommunications Decisions, C.R.T.C.,
including (85-19), (90-3), (91-10), (91-21),
(92-11) and (92-12)
Annex II - Canada
Sector: Government Finance
Sub-Sector: Securities
Industry SIC 8152 Finance and Economic
Administration
Classification:
Type of National Treatment (Article 1102)
Reservation:
Description: Investment
Canada reserves the right to adopt or
maintain any measure relating to the
acquisition, sale or other disposition by
nationals of another Party of bonds,
treasury
bills or other kinds of debt securities
issued by the Government of Canada, a
province or local government.
Existing Measures: Financial Administration Act, R.S.C. 1985,
c.
F-11
Annex II - Canada
Sector: Minority Affairs
Sub-Sector:
Industry
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Performance Requirements (Article 1106)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Canada reserves the right to adopt or
maintain any measure according rights or
preferences to socially or economically
disadvantaged minorities.
Existing Measures:
Annex II - Canada
Sector: Social Services
Sub-Sector:
Industry
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Article
1203)
Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Canada reserves the right to adopt or
maintain any measure with respect to the
provision of public law enforcement and
correctional services, and the following
services to the extent that they are social
services established or maintained for a
public purpose: income security or
insurance,
social security or insurance, social
welfare,
public education, public training, health,
and child care.
Existing Measures:
Annex II - Canada
Sector: Transportation
Sub-Sector: Air Transportation
Industry SIC 4513 Non-Scheduled Air Transport,
Classification: Specialty, Industry
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Senior Management and Boards of Directors
(Article 1107)
Description: Investment
Canada reserves the right to adopt or
maintain any measure that restricts the
acquisition or establishment of an investment
in Canada for the provision of specialty air
services to a Canadian national or a
corporation incorporated and having its
principal place of business in Canada, its
chief executive officer and not fewer than
two-thirds of its directors as Canadian
nationals, and not less than 75 percent of
its voting interest owned and controlled by
persons otherwise meeting these requirements.
Existing Measures: Aeronautics Act, R.S.C. 1985, c. A-2
Air Regulations, C.R.C. 1978, c. 2
Aircraft Marking and Registration
Regulations, SOR/90-591
Annex II - Canada
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 4129 Other Heavy Construction (limited
Classification: to dredging)
SIC 4541 Freight and Passenger Water
Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
SIC 4549 Other Water Transport Industries
SIC 4552 Harbour and Port Operation
Industries (limited to berthing,
bunkering and other vessel
operations in a port)
SIC 4553 Marine Salvage Industry
SIC 4554 Piloting Service, Water Transport
Industry
SIC 4559 Other Service Industries
Incidental
to Water Transport (not including
landside aspects of port
activities)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles
1103,
1203)
Local Presence (Article 1205)
Performance Requirements (Article 1106)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Canada reserves the right to adopt or
maintain any measure relating to investment
in or provision of maritime cabotage
services, including:
(a) the transportation of goods or
passengers by vessel between points in
the territory of Canada and in its
Exclusive Economic Zone;
(b) with respect to waters above the
continental shelf, the transportation
of
goods or passengers in relation to the
Annex II - Canada
exploration, exploitation or
transportation of the mineral or non-
living natural resources of the
continental shelf; and
(c) the engaging by vessel in any maritime
activity of a commercial nature in the
territory of Canada and in its Exclusive
Economic Zone and, with respect to
waters above the continental shelf, in
such other maritime activities of a
commercial nature in relation to the
exploration, exploitation or
transportation of mineral or non-living
natural resources of the continental
shelf.
This reservation relates to, among other
things, local presence requirements for
service providers entitled to participate in
these activities, criteria for the issuance
of a temporary cabotage license to foreign
vessels and limits on the number of cabotage
licenses issued to foreign vessels.
Existing Measures: Coasting Trade Act, S.C. 1992, c. 31
Canada Shipping Act, R.S.C. 1985, c. S-9
Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)
Customs and Excise Offshore Application Act,
R.S.C. 1985,
c. C-53
Annex II - Canada
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 4541 Freight and Passenger Water
Classification: Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
SIC 4549 Other Water Transport Industries
SIC 4551 Marine Cargo Handling Industry
SIC 4552 Harbour and Port Operation
Industries
SIC 4553 Marine Salvage Industry
SIC 4554 Piloting Service, Water Transport
Industry
SIC 4559 Other Service Industries
Incidental
to Water Transport
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles
1103,
1203)
Local Presence (Article 1205)
Performance Requirements (Article 1106)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Canada reserves the right to adopt or
maintain any measure denying service
providers or investors of the United
States,
or their investments, the benefits accorded
service providers or investors of Mexico or
any other country, or their investments, in
sectors or activities equivalent to those
subject to Schedule of the United States,
Annex II, page II-U-9.
Existing Measures:
Annex II - Canada
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 4541 Freight and Passenger Water
Classification: Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
SIC 4549 Other Water Transport Industries
SIC 4551 Marine Cargo Handling Industry
SIC 4552 Harbour and Port Operation
Industries
SIC 4553 Marine Salvage Industry
SIC 4554 Piloting Service, Water Transport
Industry
SIC 4559 Other Service Industries Incidental
to Water Transport
Type of Most-Favored-Nation Treatment (Article 1203)
Reservation:
Description: Cross-Border Services
Canada reserves the right to adopt or
maintain any measure relating to the
implementation of agreements, arrangements
and other formal or informal undertakings
with other countries with respect to maritime
activities in waters of mutual interest in
such areas as pollution control (including
double hull requirements for oil tankers),
safe navigation, barge inspection standards,
water quality, pilotage, salvage, drug abuse
control and maritime communications.
Existing Measures: United States Wreckers Act, R.S.C. 1985, c.
U-3
Various agreements and arrangements,
including:
(a) Memorandum of Arrangements on Great
Lakes Pilotage;
(b) Canada - United States Joint Marine
Pollution Contingency Plan;
Annex II - Canada
(c) Agreement with the United States on
Loran "C" Service on the East and West
Coasts; and
(d) Denmark - Canada Joint Marine
Pollution
Circumpolar Agreement.
Title:Annex IV -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:1961
Annex IV
Schedule of Canada
Canada takes an exception to Article 1103 for treatment
accorded under all bilateral or multilateral international
agreements in force or signed prior to the date of entry into
force of this Agreement.
For international agreements in force or signed after the
date of entry into force of this Agreement, Canada takes an
exception to Article 1103 for treatment accorded under those
agreements involving:
(a) aviation;
(b) fisheries;
(c) maritime matters, including salvage; or
(d) telecommunications transport networks and
telecommunications transport services (this exception
does not apply to measures covered by Chapter Thirteen
(Telecommunications)).
With respect to state measures not yet set out in Annex I
pursuant to Article 1108(2), Canada takes an exception to Article
1103 for international agreements signed within two years of the
date of entry into force of this Agreement.
For greater certainty, Article 1103 does not apply to any
current or future foreign aid program to promote economic
development, such as those governed by the Energy Economic
Cooperation Program with Central America and the Caribbean (Pacto
de San Jos ) and the OECD Agreement on Export Credits.
Title:Annex V -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:7538
Annex V
Schedule of Canada
Sector: Communications
Sub-Sector: Postal Services
Industry SIC 4841 Postal Service Industry
Classification:
Level of Federal
Government:
Measures: Canada Post Corporation Act, R.S.C. c. C-10
Letter Definition Regulations, SOR/83-481
Description: Canada Post Corporation has the exclusive
privilege to collect, transmit and deliver
"letters", as defined in the Letter
Definition Regulations, addressed in Canada,
and its consent is required for other persons
to sell stamps.
Annex V - Canada
Sector: Communications
Sub-Sector: Radiocommunications
Industry CPC 752 Telecommunications
Classification:
Level of Federal
Government:
Measures: Radiocommunication Act, R.S.C. 1985, c. R-2
Description: A person that proposes to operate a private
radio transmission system must obtain a
license from the Department of
Communications. The issuance of such a
license is subject to spectrum availability
and policies regarding its use. In general,
priority is given to the use of the spectrum
for the purpose of developing non-private
networks.
Annex V - Canada
Sector: Energy
Sub-Sector: Electricity Transmission
Industry SIC 4911 Electric Power Systems Industry
Classification:
Level of Federal
Government:
Measures: National Energy Board Act, R.S.C. 1985, c. N-
7
Description: The approval of the National Energy Board is
required for the construction and operation
of international electricity transmission
lines.
Annex V - Canada
Sector: Energy
Sub-Sector: Oil and Gas Transportation
Industry SIC 461 Pipeline Transport Industry
Classification:
Level of Federal
Government:
Measures: National Energy Board Act, R.S.C. 1985, c. N-
7
Description: The approval of the National Energy Board
(NEB) is required for the construction and
operation of all interprovincial or
international pipelines for the transmission
of oil or gas. A public hearing must be held
and a certificate of public convenience and
necessity issued where the pipeline in
question is longer than 40 kilometers.
Pipelines shorter than 40 kilometers may be
authorized by an order without a public
hearing. All modifications to and extensions
of pipelines must be approved by the NEB.
All tolls for the transmission of oil and gas
on NEB-regulated pipelines and all tariff
matters must be filed with or approved by the
NEB. A public hearing may be held to
consider toll and tariff matters.
Annex V - Canada
Sector: Food, Beverage and Drug Industries
Sub-Sector: Liquor, Wine and Beer Stores
Industry 6021 Liquor Stores
Classification: 6022 Wine Stores
6023 Beer Stores
Level of Federal
Government:
Measures: Importation of Intoxicating Liquors Act,
R.S.C. 1985, c. I-3
Description: The Importation of Intoxicating Liquors Act
gives each provincial government an import
monopoly on any intoxicating liquors entering
its territory.
Annex V - Canada
Sector: Transportation
Sub-Sector: Land Transportation
Industry SIC 457 Public Passenger Transit Systems
Classification:
Level of Federal (administration delegated to
Government: provinces)
Measures: National Transportation Act, 1987, R.S.C.
1985, c. 28 (3rd Supp.)
Description: Provincial transport boards have been
delegated the authority to permit persons to
provide extra-provincial (inter-provincial
and cross-border) bus services in their
respective provinces on the same basis as
local bus services. All provinces, except
New Brunswick, Prince Edward Island and
Yukon, permit the provision of local and
extra-provincial bus services on the basis of
a public convenience and necessity test.
Title:Annex VI -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:1813
Annex VI
Schedule of Canada
Sector: Professional Services
Sub-Sector: Lawyers
Industry SIC 7761 Offices of Lawyers and Notaries
Classification:
Level of Provincial
Government:
Measures: British Columbia: Legal Profession Act,
S.B.C. 1987, c. 25
Ontario: Law Society Act, R.S.O.
1990, c. L-8
Saskatchewan: Legal Profession Act, S.Sask.
1990,
c. L-10.1
Description: Lawyers authorized to practice in Mexico or
the United States and law firms headquartered
in Mexico or the United States will be
permitted to provide foreign legal
consultancy services, and to establish for
that purpose, in British Columbia, Ontario
and Saskatchewan, and in any other province
that so permits by the date of entry into
force of this Agreement.
Title:Annex VII -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6979
Annex VII
Schedule of Canada
Section A
Sector: Financial Services
Sub-Sector: Insurance
Industrial
Classification:
Type of Article 1404 (Cross-Border Trade)
Reservation:
Level of Federal
Government:
Measures: Insurance Companies Act, S.C. 1991, c. 47
Reinsurance (Canadian Companies) Regulations,
SOR/92-298
Reinsurance (Foreign Companies) Regulations,
SOR/92-596
Description: The purchase of reinsurance services by a
Canadian insurer, other than a life insurer
or a reinsurer, from a non-resident reinsurer
is limited to no more than 25 percent of the
risks undertaken by the insurer purchasing
the reinsurance.
Phase-Out: None
Annex VII(B) - Canada
Section B
1. Canada reserves the right to adopt any measure relating to
cross-border trade in securities services that derogates from
Article 1404(1) or, with respect to the United States, that
derogates from Article 1406.
2. For purposes of restrictions that limit foreign ownership
of Canadian-controlled financial institutions, and for purposes
of restrictions on total domestic assets of foreign bank
subsidiaries in Canada, Canada reserves the right to adopt or
maintain measures that require an enterprise of another Party
be controlled by one or more residents of the other Party in
order to be entitled to the benefits of this Chapter. For
these purposes:
(a) an enterprise controlled by one or more residents of
another Party means controlled, directly or
indirectly, by such residents;
(b) an enterprise that is a body corporate is controlled
by one or more persons if
(i) securities of the enterprise to which are
attached more than 50 percent of the votes that
may be cast to elect directors of the enterprise
are beneficially owned by the person or persons
and the votes attached to those shares are
sufficient, if exercised, to elect a majority of
the directors of the enterprise, and
(ii) the person or persons has or have, directly or
indirectly, control in fact of the enterprise;
(c) an enterprise that is an unincorporated entity is
controlled by one or more persons if
(i) more than 50 percent of ownership interests,
however designated, into which the enterprise is
divided is beneficially owned by the person or
persons and the person or persons is or are able
to direct the business and affairs of the
enterprise, and
(ii) the person or persons has or have, directly or
indirectly, control in fact of the enterprise;
Annex VII(B) - Canada
(d) a limited partnership is controlled by the general
partner;
(e) ordinarily resident in a country generally means
sojourning in that country for a period of, or
periods the aggregate of which is, 183 days or more
during the relevant year; and
(f) a person ordinarily resident in another Party means
(i) in the case of an enterprise, an enterprise
legally constituted or organized under the laws
of that Party and controlled, directly or
indirectly, by one or more individuals of that
Party described in clause (ii), and
(ii) in the case of an individual, an individual who
is ordinarily resident in the territory of that
Party.
Annex VII(C)-Canada
Section C
1. For purposes of restrictions that limit foreign ownership
of Canadian-controlled financial institutions and for purposes
of limitations on total domestic assets of foreign bank
subsidiaries in Canada, Canada shall give to Mexico the same
treatment that Canada gives under the Bank Act, the Insurance
Companies Act (Canada), the Trust and Loan Companies Act
(Canada) and the Investment Companies Act, to United States
residents and to institutions controlled by United States
residents.
2. Canada shall exempt foreign bank subsidiaries in Canada
controlled by Mexican residents from the requirement to obtain
approval of the Minister of Finance prior to opening branches
within Canada in the same manner as it exempts foreign bank
subsidiaries in Canada controlled by United States residents.
Title:Annex I -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain CHARSET=US-ASCII
Content-Length: 182377
Annex I
Schedule of Mexico
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 27
Ley de Nacionalidad y Naturalizaci n,
Cap tulos IV, VI
Ley Org nica de la Fracci n I del Art culo 27
de la Constituci n
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
IV, V
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulos I,
II; T tulo III, Cap tulo III; T tulo VI;
T tulo VIII, Cap tulo IV
Description: Investment
Foreign nationals or foreign enterprises, or
Mexican enterprises without a foreigners'
exclusion clause, may not acquire property
rights ("dominio directo") over land and
water in a 100-kilometer strip along the
country's borders or in a 50-kilometer strip
inland from its coasts (the Restricted Zone).
Lease of land for more than 10 years is
deemed to be an acquisition.
Foreign nationals, foreign enterprises or
Annex I - Mexico
Mexican enterprises may acquire "Certificados
de Participaci n Inmobiliaria" (CPI's).
CPI's grant the beneficiaries the right to
use and enjoy property and to receive the
profits that it may obtain from the
profitable use of property.
CPI's are issued by a Mexican credit
institution that has been granted
authorization to acquire through trust the
title to real estate intended for industrial
and tourism activities in the Restricted Zone
for a period not to exceed 30 years. The
trust is renewable if:
(a) the beneficiaries of the trust that is
to be extinguished or terminated will be
the beneficiaries of the new trust;
(b) the new trust is to be executed under
the same terms and conditions as the
trust that is to be extinguished or
terminated, in respect of the purposes
of the trust, the use of the property
and its characteristics;
(c) the respective permits are requested
within a period of 360 to 181 days
preceding the termination or extinction
of the trust; and
(d) the provisions of the Ley para Promover
la Inversi n Mexicana y Regular la
Inversi n Extranjera are observed.
Phase-Out: None
Annex I - Mexico
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Federal
Level of
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulos I,
III, IV; T tulo IV; T tulo V; T tulo VIII,
Cap tulos I-V; T tulo IX, Cap tulos I, II,
III
As qualified by the Description element
Description: Investment
The Comisi n Nacional de Inversiones
Extranjeras, in order to evaluate
applications submitted for its consideration
(acquisitions or establishment of investments
in restricted activities as set out in this
Schedule), shall take into account the
following criteria:
(a) its effects on employment and training;
(b) its technological contribution; or
(c) in general, its contribution to increase
Mexican industrial productivity and
competitiveness.
The Comisi n Nacional de Inversiones
Extranjeras may impose performance
requirements that are not prohibited by
Article 1106.
Phase-Out: None
Annex I - Mexico
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley Para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I-V; T tulo IX, Cap tulos I, II, III
As qualified by the Description element
Description: Investment
The Comisi n Nacional de Inversiones
Extranjeras will only review direct or
indirect acquisitions by an investor of
another Party of more than 49 percent of the
ownership interest in a Mexican enterprise in
an unrestricted sector, that is directly or
indirectly owned or controlled by Mexican
nationals, if the value of the gross assets
of the Mexican enterprise is not less than
the applicable threshold.
Phase-Out: For investors and investments of investors of
Canada or the United States, the applicable
threshold for the review of an acquisition of
a Mexican enterprise will be:
(a) US$25 million, for the three-year period
beginning on the date of entry into
force of this Agreement;
Annex I - Mexico
(b) US$50 million, for the three-year period
beginning three years after the date of
entry into force of this Agreement;
(c) US$75 million, for the three-year period
beginning six years after the date of
entry into force of this Agreement; and
(d) US$150 million, beginning nine years
after the date of entry into force of
this Agreement.
Beginning one year after the date of entry
into force of this Agreement, each of these
thresholds will be adjusted annually for
cumulative inflation from the date of entry
into force of this Agreement, based on the
implicit price deflator for U.S. Gross
Domestic Product (GDP) or any successor index
published by the Council of Economic Advisors
in "Economics Indicators".
The value of a threshold adjusted for
cumulative inflation up to January of each
year following 1994 shall be equal to the
original value of the threshold multiplied by
the following ratio:
(a) the implicit GDP price deflator or any
successor index published by the Council
of Economic Advisors in "Economic
Indicators", current as of January of
that year; to
(b) the implicit GDP price deflator or any
successor index published by the Council
of Economic Advisors in "Economic
Indicators", current as of the date of
entry into force of this Agreement,
provided that the implicit GDP price
deflators under paragraphs (a) and (b) have
the same base year.
The resulting adjusted threshold will be
rounded to the nearest million dollars.
Annex I - Mexico
Beginning 10 years after the date of entry
into force of this Agreement, the threshold
will be adjusted annually by the rate of
growth of the nominal Mexican GDP, as
published by the Instituto Nacional de
Estad stica, Geograf a e Inform tica.
Whenever the U.S. dollar amount calculated
for the threshold is, at the prevailing
market exchange rate, equal to or higher than
the amount calculated pursuant to Schedule of
Canada, Annex I, page I-C-2, the calculation
of the applicable threshold will be made
according to the rules established therein.
In no case will the threshold, as converted
into U.S. dollars, exceed that of Canada.
Annex I - Mexico
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation: Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 25
Ley General de Sociedades Cooperativas,
T tulo I, Cap tulo I; T tulo II, Cap tulo II
Description: Investment
No more than 10 percent of the persons
participating in a Mexican cooperative
production enterprise may be foreign
nationals.
No foreign national may engage in general
administrative functions or perform
managerial activities in that enterprise.
Phase-Out: None
Annex I - Mexico
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley Federal para el Fomento de la
Microindustria, Cap tulos I, II, III
Description: Investment
Only Mexican nationals may apply for a
license ("c dula") to qualify as a
microindustry enterprise.
Mexican "microindustry enterprises" may not
have foreign persons as partners.
The Ley Federal para el Fomento de las
Microindustria defines "microindustry
enterprise" as including enterprises with up
to fifteen workers and with sales of amounts
periodically determined by the Secretar a de
Comercio y Fomento Industrial.
Phase-Out: None
Annex I - Mexico
Sector: Agriculture, Livestock, Forestry and Lumber
Activities
Sub-Sector: Agriculture, Livestock or Forestry
Industry CMAP 1111 Agriculture
Classification: CMAP 1112 Livestock and Game (limited to
livestock)
CMAP 1200 Forestry and Felling Trees
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 27
Ley Agraria, T tulos V, VI
Description: Investment
Only Mexican nationals or Mexican enterprises
may own land for agriculture, livestock or
forestry purposes. Such enterprises must
issue a special type of share ("T" shares)
representing the value of that land at the
time of its acquisition. Investors of
another Party or their investments may only
own up to 49 percent of "T" shares.
Phase-Out: None
Annex I - Mexico
Sector: Communications
Sub-Sector: Entertainment Services (Broadcasting,
Multipoint Distribution Systems (MDS) and
Cable Television)
Industry CMAP 941104 Private Production and
Classification: Transmission of Radio Programs
(limited to production and
transmission of radio
programs, MDS and
uninterrupted music)
CMAP 941105 Private Services of
Production, Transmission and
Retransmission of Television
Programming (limited to
production, transmission and
retransmission of television
programming, MDS, direct
broadcasting systems and high-
definition television and
cable television)
Type of National Treatment (Article 1202)
Reservation: Performance Requirements (Article 1106)
Level of Federal
Government:
Measures: Ley Federal de Radio y Televisi n, T tulo IV,
Cap tulo III
Reglamento de la Ley Federal de Radio y
Televisi n y de la Ley de la Industria
Cinematogr fica Relativo al Contenido de las
Transmisiones de Radio y Televisi n, T tulo
III
Reglamento del Servicio de Televisi n por
Cable, Cap tulo VI
Description: Cross-Border Services and Investment
For the protection of copyrights, the holder
of a concession for a commercial broadcast
station or for a cable television system is
Annex I - Mexico
required to obtain an authorization from the
Secretar a de Gobernaci n to import in any
form radio or television programming for
broadcast or cable distribution within the
territory of Mexico.
The authorization will be granted if the
application for authorization includes
documentation showing that the copyright
holder has granted the license ("derechos")
to broadcast or distribute by cable such
programming.
Phase-Out: None
Annex I - Mexico
Sector: Communications
Sub-Sector: Entertainment Services (Broadcasting,
Multipoint Distribution Systems (MDS) and
Cable Television)
Industry CMAP 941104 Private Production and
Classification: Transmission of Radio Programs
(limited to production and
transmission of radio
programs, MDS and
uninterrupted music)
CMAP 941105 Private Services of
Production, Transmission and
Retransmission of Television
Programming (limited to
production, transmission and
retransmission of television
programming, MDS, direct
broadcasting systems,
high-definition television and
cable television)
Type of National Treatment (Article 1202)
Reservation: Performance Requirements (Article 1106)
Level of Federal
Government:
Measures: Ley Federal de Radio y Televisi n, T tulo IV,
Cap tulo III
Reglamento de la Ley Federal de Radio y
Televisi n y de la Ley de la Industria
Cinematogr fica Relativo al Contenido de las
Transmisiones de Radio y Televisi n, T tulo
III
Reglamento del Servicio de Televisi n por
Cable, Cap tulo VI
Description: Cross-Border Services and Investment
The use of the Spanish language is required
for the broadcast, cable or multipoint
distribution system distribution of radio or
television programming, except when the
Annex I - Mexico
Secretar a de Gobernaci n authorizes the use
of another language.
A majority of the time of each day's live
broadcast programs must feature Mexican
nationals.
A radio or television announcer or presenter
who is not a Mexican national must obtain an
authorization from the Secretar a de
Gobernaci n to perform in Mexico.
Phase-Out: None
Annex I - Mexico
Sector: Communications
Sub-Sector: Entertainment Services (Broadcasting,
Multipoint Distribution Systems (MDS) and
Cable Television)
Industry CMAP 941105 Private Services of
Classification: Production, Transmission and
Retransmission of Television
Programming (limited to
broadcasting, cable television
and MDS)
Type of National Treatment (Article 1202)
Reservation: Performance Requirements (Article 1106)
Level of Federal
Government:
Measures: Ley Federal de Radio y Televisi n, T tulo IV,
Cap tulo III
Reglamento de la Ley Federal de Radio y
Televisi n y de la Ley de la Industria
Cinematogr fica Relativo al Contenido de las
Transmisiones de Radio y Televisi n, T tulo
III
Reglamento del Servicio de Televisi n por
Cable, Cap tulo VI
Description: Cross-Border Services and Investment
The use of the Spanish language or Spanish
subtitles is required for advertising
broadcast or otherwise distributed in the
territory of Mexico.
Advertising included in programs transmitted
directly from outside the territory of Mexico
may not be distributed in those programs when
they are retransmitted in the territory of
Mexico.
Phase-Out: None
Annex I - Mexico
Sector: Communications
Sub-Sector: Entertainment Services (Cable Television)
Industry CMAP 941105 Private Services of
Classification: Production, Transmission and
Retransmission of Television
Programming (limited to cable
television)
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley Federal de Radio y Televisi n, T tulo
III, Cap tulos I, II, III
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento del Servicio de Televisi n por
Cable, Cap tulo II
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
As qualified by the Description element
Description: Investment
Investors of another Party or their
investments may only own, directly or
indirectly, up to 49 percent of the ownership
interest in an enterprise, established or to
be established in the territory of Mexico,
that owns or operates a cable television
system or provides cable television services.
Phase-Out: None. Subject to discussion by the Parties
five years after the date of entry into force
of this Agreement.
Annex I - Mexico
Sector: Communications
Sub-Sector: Entertainment Services (Cable Television)
Industry CMAP 941105 Private Services of
Classification: Production, Transmission and
Retransmission of Television
Programming (limited to cable
television)
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulo III
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Ley Federal de Radio y Televisi n, T tulo
III, Cap tulos I, II, III
Reglamento del Servicio de Televisi n por
Cable, Cap tulo II
Description: Cross-Border Services
A concession granted by the Secretar a de
Comunicaciones y Transportes is required to
construct and operate, or to operate, a cable
television system. Only Mexican nationals
and Mexican enterprises may obtain such a
concession.
Phase-Out: None
Annex I - Mexico
Sector: Communications
Sub-Sector: Entertainment Services (Cinema)
Industry CMAP 941103 Private Exhibition of Films
Classification:
Type of National Treatment (Article 1202)
Reservation: Performance Requirements (Article 1106)
Level of Federal
Government:
Measures: Ley de la Industria Cinematogr fica
Reglamento de la Ley de la Industria
Cinematogr fica
As qualified by the Description element
Description: Cross-Border Services and Investment
Thirty percent of the screen time of every
theater, assessed on an annual basis, may be
reserved for films produced by Mexican
persons either within or outside the
territory of Mexico.
Phase-Out: None
Annex I - Mexico
Sector: Communications
Sub-Sector: Telecommunications (Enhanced or Value-Added
Services)
Industry CMAP 720006 Other Telecommunications
Classification: Services (limited to enhanced
or value-added services)
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Ley de V as Generales de Comunicaci n, Libro
I, Cap tulo III
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de Telecomunicaciones, Cap tulo IV
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
As qualified by paragraphs 2 and 4 of the
Description element
Description: Cross-Border Services
1. A provider of enhanced or value-added
services must obtain a permit issued by the
Secretar a de Comunicaciones y Transportes.
2. Persons of Canada or the United States
may provide all enhanced or value-added
services, except videotext or enhanced packet
switching services, without the need to
establish local presence.
3. Videotext and enhanced packet switching
services may not be provided on a
Annex I - Mexico
cross-border basis.
Investment
4. Investors of another Party or their
investments may own 100 percent of the
ownership interest in an enterprise,
established or to be established in the
territory of Mexico, that provides any
enhanced or value-added service, other than
videotext or enhanced packet switching
services.
5. Investors of another Party or their
investments may only own, directly or
indirectly, up to 49 percent of the ownership
interest in an enterprise, established or to
be established in the territory of Mexico,
that provides videotext or enhanced packet
switching services.
Phase-Out: Cross-Border Services
Beginning July 1, 1995, a person of Canada or
the United States may provide videotext or
enhanced packet switching services on a
cross-border basis without the need to
establish a local presence in the territory
of Mexico.
Investment
Beginning July 1, 1995, investors of another
Party or their investments may own 100
percent of the ownership interest in an
enterprise established or to be established
in the territory of Mexico that provides
videotext or enhanced packet switching
services.
Annex I - Mexico
Sector: Communications
Sub-Sector: Transportation and Telecommunications
Industry CMAP 7200 Communications (including
Classification: telecommunications and postal
services)
CMAP 7100 Transportation
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos III, V
Reglamento de Telecomunicaciones, Cap tulo
III
DESCRIPTION: Investment
Foreign governments and foreign state
enterprises or their investments may not
invest, directly or indirectly, in Mexican
enterprises engaged in communications,
transportation and other general means of
communication ("v as generales de
comunicaci n") activities, as defined in the
Ley de V as Generales de Comunicaci n.
Phase-Out: None
Annex I - Mexico
Sector: Construction
Sub-Sector:
Industry CMAP 501101 Residential or Housing
Classification: Construction
CMAP 501102 Non-residential Construction
CMAP 501200 Construction of Urbanization
Projects
CMAP 501311 Construction of Industrial
Plants
CMAP 501312 Construction of Electricity
Generation Plants
CMAP 501321 Construction and Maintenance
of Electricity Conduction
Lines and Networks
CMAP 501411 Mounting or Installing
Concrete Structures
CMAP 501412 Mounting or Installing
Metallic Structures
CMAP 501421 Marine and River Works
CMAP 501422 Construction of Routes for
Land Transportation
CMAP 502001 Hydraulic and Sanitation
Installations in Buildings
CMAP 502002 Electrical Installations in
Buildings
CMAP 502003 Telecommunications
Installations
CMAP 502004 Other Special Installations
CMAP 503001 Earth Movements
CMAP 503002 Cement Works
CMAP 503003 Underground Excavations
CMAP 503004 Underwater Works
CMAP 503005 Installation of Signs and
Warnings
CMAP 503006 Demolition
CMAP 503007 Construction of Water
Purification or Treatment
Plants
CMAP 503009 Drilling Water Wells
CMAP 503010 Construction Activities, Not
Elsewhere Classified
Type of National Treatment (Article 1102)
Reservation:
Annex I - Mexico
Level of Federal
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Investment
Prior approval of the Comisi n Nacional de
Inversiones Extranjeras is required for
investors of another Party or their
investments to own, directly or indirectly,
more than 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
that performs construction activities as set
out in the Industry Classification element.
Phase-Out: Subject to Schedule of Mexico, Annex I, page
I-M-4, five years after the date of entry
into force of this Agreement, investors of
another Party and their investments may own
100 percent of the ownership interest in an
enterprise established or to be established
in the territory of Mexico without prior
approval of the Comisi n Nacional de
Inversiones Extranjeras.
Annex I - Mexico
Sector: Construction
Sub-Sector:
Industry CMAP 501322 Construction of Means for the
Classification: Transportation of Petroleum
and its Derivatives (limited
to specialized contractors
only)
CMAP 503008 Petroleum and Gas, Exploration
and Drilling Works and
Services (limited to
specialized contractors only)
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 27
Ley Reglamentaria del Art culo 27
Constitucional en el Ramo del Petr leo
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley Reglamentaria del
Art culo 27 Constitucional en el Ramo del
Petr leo , Cap tulos I, V, IX, XII
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Investment
Risk-sharing contracts are prohibited.
Prior approval of the Comisi n Nacional de
Inversiones Extranjeras is required for
investors of another Party or their
investments to own, directly or indirectly,
Annex I - Mexico
more than 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
involved in "non-risk sharing" contracts for
the exploration and drilling works of
petroleum and gas wells and the construction
of means for the transportation of petroleum
and its derivatives. See also Schedule of
Mexico, Annex III, page III-M-1.
Phase-Out: None
Annex I - Mexico
Sector: Educational Services
Sub-Sector: Private Schools
Industry CMAP 921101 Private Preschool Educational
Classification: Services
CMAP 921102 Private Primary School
Educational Services
CMAP 921103 Private Secondary School
Educational Services
CMAP 921104 Private Middle High
(Preparatory) School
Educational Services
CMAP 921105 Private Higher School
Educational Services
CMAP 921106 Private Educational Services
that Combine Preschool,
Primary, Secondary, Middle
High and Higher School
Instruction
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Ley para la Coordinaci n de la Educaci n
Superior, Cap tulo II
Ley Federal de Educaci n, Cap tulo III
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Investment
Prior approval of the Comisi n Nacional de
Inversiones Extranjeras is required for
investors of another Party or their
investments to own, directly or indirectly,
Annex I - Mexico
more than 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
that provides preschool, primary, secondary,
preparatory, higher, worker or peasant, or
"normal" educational services.
Phase-Out: None
Annex I - Mexico
Sector: Energy
Sub-Sector: Petroleum Products
Industry CMAP 623050 Retail Sales of Liquified
Classification: Petroleum Gas (LPG)
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley Reglamentaria del Art culo 27
Constitucional en el Ramo del Petr leo
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley Reglamentaria del
Art culo 27 Constitucional en el Ramo del
Petr leo, Cap tulos I, IX, XII
Reglamento de la Distribuci n de Gas,
Cap tulos I, II
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Investment
Only Mexican nationals and Mexican
enterprises with a foreigners' exclusion
clause may engage in the distribution,
transportation, storage, or sale of liquified
petroleum gas and the installation of fixed
deposits.
Phase-Out: None
Sector: Energy
Annex I - Mexico
Sub-Sector: Petroleum Products
Industry CMAP 626000 Retail Outlets of Gasoline and
Classification: Diesel (including lubricants,
oils and additives for resale
in these retail outlets)
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Reglamento de la Ley Reglamentaria del
Art culo 27 Constitucional en el Ramo del
Petr leo, Cap tulos I, II, III, V, VII, IX,
XII
As qualified by the Description element
Description: Investment
Only Mexican nationals and Mexican
enterprises with a foreigners' exclusion
clause may acquire, establish or operate
retail outlets engaged in the sale or
distribution of gasoline, diesel, lubricants,
oils or additives.
Phase-Out: None
Annex I - Mexico
Sector: Fishing
Sub-Sector:
Industry CMAP 130011 Fishing on the High Seas
Classification: CMAP 130012 Coastal Fishing
CMAP 130013 Fresh Water Fishing
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Level of Federal
Government:
Measures: Ley de Pesca, Cap tulos I, II, IV
Ley de Navegaci n y Comercio Mar timos, Libro
II, T tulo Unico, Cap tulo V
Ley Federal del Mar, T tulo I, Cap tulo I
Ley Federal de Aguas
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Reglamento de la Ley de Pesca, Cap tulos I,
II, III, V, VI, IX, XV
Description: Investment
With respect to an enterprise established or
to be established in the territory of Mexico
performing coastal fishing, fresh water
fishing and fishing in the exclusive economic
zone, investors of another Party or their
investments may only own, directly or
indirectly, up to 49 percent of the ownership
interest in such an enterprise.
Annex I - Mexico
With respect to an enterprise established or
to be established in the territory of Mexico
performing fishing on the high seas, prior
approval of the Comisi n Nacional de
Inversiones Extranjeras is required for
investors of another Party or their
investments to own, directly or indirectly,
more than 49 percent of the ownership
interest in such an enterprise.
Phase-Out: None
Annex I - Mexico
Sector: Manufacturing and Assembly of Goods
Sub-Sector: Auto Parts Industry
Industry CMAP 383103 Manufacturing of Parts and
Classification: Accessories for Electrical
Automotive Systems
CMAP 384121 Manufacture and Assembly of
Car and Truck Bodies and Tows
CMAP 384122 Manufacture of Car and Truck
Motors and their Parts
CMAP 384123 Manufacture of Car and Truck
Transmission System Parts
CMAP 384124 Manufacture of Car and Truck
Suspension System Parts
CMAP 384125 Manufacture of Car and Truck
Brake System Parts and
Accessories
CMAP 384126 Manufacture of Other Car and
Truck Parts and Accessories
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Decreto para el Fomento y Modernizaci n de la
Industria Automotriz ("Auto Decree")
Acuerdo que Determina Reglas para la
Aplicaci n del Decreto para el Fomento y
Modernizaci n de la Industria Automotriz
As qualified by the Description element
Description: Investment
Annex I - Mexico
1. Investors of another Party or their
investments may only own, directly or
indirectly, up to 49 percent of the ownership
interest in an "enterprise of the autoparts
industry", as defined in Annex 300-A,
established or to be established in the
territory of Mexico.
2. Investors of another Party or their
investments that qualify as "national
suppliers", as defined in Annex 300-A, may
own 100 percent of the ownership interest in
an enterprise established or to be
established in the territory of Mexico and
that engages in the supply of specified
autoparts to producers of motor vehicles.
3. Investors of another Party or their
investments may own up to 100 percent of the
ownership interest in an enterprise producing
autoparts established or to be established in
the territory of Mexico, provided that the
enterprise does not register with the
Secretar a de Comercio y Fomento Industrial
for purposes of the Auto Decree nor receive
benefits under the Auto Decree. After the
five-year transition period set out in the
Phase-Out element, such firms shall be
eligible to register or to receive benefits
set forth in the Auto Decree as modified by
Appendix 300-A.2 provided that such
enterprise meets the requirements set out
therein for national supplier or "enterprise
of the autoparts industry" status.
Phase-Out: Five years after the date of entry into force
of this Agreement, investors of another Party
or their investments may own 100 percent of
the ownership interest in any enterprise of
the autoparts industry established or to be
established in the territory of Mexico.
See Schedule of Mexico, Annex I, page I-M-33.
Annex I - Mexico
Sector: Manufacture of Goods
Sub-Sector: Automotive Industry
Industry CMAP 383103 Manufacturing of Parts and
Classification: Accessories for Electrical
Automotive Systems
CMAP 3841 Automotive Industry
CMAP 384121 Manufacture and Assembly of
Car and Truck Bodies and Tows
CMAP 384122 Manufacture of Car and Truck
Motors and their Parts
CMAP 384123 Manufacture of Car and Truck
Transmission System Parts
CMAP 384124 Manufacture of Car and Truck
Suspension System Parts
CMAP 384125 Manufacture of Car and Truck
Brake System Parts and
Accessories
CMAP 384126 Manufacture of Other Car and
Truck Parts and Accessories
Type of Performance Requirements (Article 1106)
Reservation:
Level of Federal
Government:
Measures: Decreto para el Fomento y Modernizaci n de la
Industria Automotriz ("Auto Decree")
Acuerdo que Determina Reglas para la
Aplicaci n del Decreto para el Fomento y
Modernizaci n de la Industria Automotriz
As qualified by Description element
Description: Investment
As set out in Annex 300-A
Phase-Out: As set out in Annex 300-A
Sector: Manufacture of Goods
Sub-Sector: Maquiladora Industry
Industry
Annex I - Mexico
Classification:
Type of Performance Requirements (Article 1106)
Reservation:
Level of Federal
Government:
Measures: Ley Aduanera, T tulo IV, Cap tulos I, III;
T tulo V, Cap tulo II; T tulo VI
Decreto para el Fomento y Operaci n de la
Industria Maquiladora de Exportaci n
("Maquiladora Decree")
As qualified by the Description element
Description: Investment
Persons authorized by the Secretar a de
Comercio y Fomento Industrial to operate
under the Maquiladora Decree may not sell to
the domestic market more than 55 percent of
the total value of their annual exports in
the previous year.
Phase-Out: Sales of a maquiladora to the domestic market
may not exceed:
(a) one year after the date of entry into
force of this Agreement, 60 percent of
the total value of its annual exports in
the previous year;
(b) two years after the date of entry into
force of this Agreement, 65 percent of
the total value of its annual exports in
the previous year;
(c) three years after the date of entry into
force of this Agreement, 70 percent of
the total value of its annual exports in
the previous year;
(d) four years after the date of entry into
force of this Agreement, 75 percent of
the total value of its annual exports in
the previous year;
Annex I - Mexico
(e) five years after the date of entry into
force of this Agreement, 80 percent of
the total value of its annual exports in
the previous year; and
(f) six years after the date of entry into
force of this Agreement, 85 percent of
the total value of its annual exports in
the previous year.
Seven years after the date of entry into
force of this Agreement, sales of a
maquiladora to the domestic market will not
be subject to any percentage requirement.
Annex I - Mexico
Sector: Manufacture of Goods
Sub-Sector:
Industry
Classification:
Type of Performance Requirements (Article 1106)
Reservation:
Level of Federal
Government:
Measures: Ley Reglamentaria del Art culo 131 de la
Constituci n Pol tica de los Estados Unidos
Mexicanos en Materia de Comercio Exterior,
Cap tulo I
Decreto para el Fomento y Operaci n de las
Empresas Altamente Exportadoras, ("ALTEX
Decree")
Description: Investment
1. "Direct exporters", as defined in the
ALTEX Decree, authorized by the Secretar a
de Comercio y Fomento Industrial to operate
under that decree must export at least 40
percent of their total sales or US$2,000,000.
2. "Indirect exporters", as defined in
ALTEX Decree, authorized by the Secretar a de
Comercio y Fomento Industrial to operate
under that decree must export at least 50
percent of their total sales.
Phase-Out: Seven years after the date of entry into
force of this Agreement, "direct and indirect
exporters" will not be subject to the
percentage requirements set out in the
Description element.
Annex I - Mexico
Sector: Manufacture of Goods
Sub-Sector:
Industry
Classification:
Type of Performance Requirements (Article 1106)
Reservation:
Level of Federal
Government:
Measures: Ley Reglamentaria del Art culo 131 de la
Constituci n Pol tica de los Estados Unidos
Mexicanos en Materia de Comercio Exterior,
Cap tulo I
Ley Aduanera, T tulo III, Cap tulo IV; T tulo
IV, Cap tulos I, III
Decreto que Establece Programas de
Importaci n Temporal para Producir Art culos
de Exportaci n, ("PITEX Decree")
Description: Investment
Persons authorized by the Secretar a de
Comercio y Fomento Industrial to operate
under the PITEX Decree are required to export
at least:
(a) 30 percent of their total production in
order to be permitted to temporarily
import duty-free
(i) machinery, equipment, instruments,
molds and durable tools used in the
manufacturing process, and
equipment used to handle materials
directly related to the exportation
of goods, and
(ii) devices, equipment, accessories or
other items related to the
production of exported goods,
including those used for research,
industrial security, quality
control, communication, training of
Annex I - Mexico
personnel, informatics and
environmental purposes; and
(b) 10 percent of their total production or
US$500,000 in order to be permitted to
temporarily import duty-free
(i) raw materials, parts and components
totally used in the production of
exported goods,
(ii) packages, bottles, containers and
trailer's containers which are
totally used to contain exported
goods, and
(iii) fuel, lubricants, auxiliary
materials, reparation tools
and equipment consumed in the
production of exported goods.
Phase-Out: Seven years after the date of entry into
force of this Agreement, such persons will
not be subject to the percentage requirements
set out in the Description element.
Annex I - Mexico
Sector: Manufacture of Goods
Sub-Sector: Artificial Explosives, Fireworks, Firearms
and Cartridges
Industry CMAP 352236 Manufacturing of Artificial
Classification: Explosives and Fireworks
CMAP 382208 Manufacturing of Firearms and
Cartridges
Type of National Treatment (Article 1102)
Reservation: Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Ley Federal de Armas de Fuego y Explosivos,
T tulo III, Cap tulo I
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley Federal de Armas de
Fuego y Explosivos, Cap tulo IV
Reglamento de la Ley Para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I,
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Investment
Investors of another Party or their
investments may only own, directly or
indirectly, up to 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
that manufactures artificial explosives and
fireworks, firearms, cartridges and
ammunition.
No foreign national may appoint or be
appointed a member of the board of directors
or an officer of such an enterprise.
Phase-Out: None
Annex I - Mexico
Sector: Mining
Sub-Sector: Extraction and Exploitation of Minerals
Industry CMAP 210000 Exploitation of Mineral Carbon
Classification:
CMAP 231000 Extraction of Minerals
Containing Iron
CMAP 232001 Extraction of Minerals
Containing Gold, Silver and
other Precious Minerals and
Metals
CMAP 232002 Extraction of Mercury and
Antimony
CMAP 232003 Extraction of Industrial
Minerals Containing Lead and
Zinc
CMAP 232004 Extraction of Minerals
Containing Copper
CMAP 232006 Extraction of other Metallic
Minerals not containing Iron
CMAP 291001 Extraction of Sand and Gravel
CMAP 291002 Extraction of Marble and
other Gravels for Construction
CMAP 291003 Exploitation of Feldspar
CMAP 291004 Extraction of Kaolin, Clay and
Refractory Minerals
CMAP 291005 Extraction of Limestones
CMAP 291006 Exploitation of Gypsum
CMAP 292001 Extraction of Barium Oxide
CMAP 292002 Extraction of Phosphoric Rock
CMAP 292003 Extraction of Fluorite
CMAP 292004 Extraction of Sulphur
CMAP 292005 Extraction of other Minerals
in order to Obtain Chemicals
CMAP 292006 Extraction of Salt
CMAP 292007 Extraction of Graphite
CMAP 292008 Extraction of other Non-
Metallic Minerals
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley Minera, Cap tulos I, II
Annex I - Mexico
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley Minera
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I,
T tulo IV; T tulo V; T tulo VIII; T tulo IX,
Cap tulo I
As qualified by the Description element
Description: Investment
Prior approval of the Comisi n Nacional de
Inversiones Extranjeras is required for
investors of another Party or their
investments to own, directly or indirectly,
more than 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
engaged in the extraction or exploitation of
any mineral.
Phase-Out: Subject to Schedule of Mexico, Annex I, page
I-M-4, five years after the date of entry
into force of this Agreement, investors of
another Party or their investments may own
100 percent of the ownership interest in an
enterprise established or to be established
in the territory of Mexico engaged in
extraction or exploitation of any mineral,
without the prior approval of the Comisi n
Nacional de Inversiones Extranjeras.
Annex I - Mexico
Sector: Printing, Editing and Associated Industries
Sub-Sector: Newspaper Publishing
Industry CMAP 342001 Newspaper Publishing
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
As qualified by the Description element
Description: Investment
Investors of another Party or their
investments may own, directly or indirectly,
100 percent of the ownership interest in an
enterprise established or to be established
in the territory of Mexico engaged in the
simultaneous printing and distribution in the
territory of Mexico of a daily newspaper that
is published outside of the territory of
Mexico.
Investors of another Party or their
investments may only own, directly or
indirectly, up to 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
engaged in the printing or publication of
daily newspapers written primarily for a
Mexican audience and distributed in the
territory of Mexico.
For purposes of this reservation, daily
newspapers are those published at least five
days a week.
Phase-Out: None
Annex I - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Medical Doctors
Industry CMAP 9231 Private Medical, Odontological and
Classification: Veterinary Services (limited to
medical and odontological services)
Type of National Treatment (Article 1202)
Reservation:
Level of Federal
Government:
Measures: Ley Federal del Trabajo, Cap tulo I
Description: Cross-Border Services
Only Mexican nationals licensed as doctors in
the territory of Mexico may provide in-house
medical services in Mexican enterprises.
Phase-Out: None
Annex I - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Specialized Personnel
Industry CMAP 951012 Customs Brokers and
Classification: Representation Agency Services
(limited to shippers' export
declarations)
Type of National Treatment (Article 1202)
Reservation:
Level of Federal
Government:
Measures: Ley Aduanera, T tulo IX, Cap tulo Unico
Description: Cross-Border Services
A shipper's export declaration must be
processed by a Mexican national licensed as
a
customs broker ("agente aduanal") or by a
representative ("apoderado aduanal") employed
by the exporter and authorized by the
Secretar a de Hacienda y Cr dito P blico for
this purpose.
Phase-Out: None. Subject to discussion by the Parties
five years after the date of entry into force
of this Agreement.
Annex I - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Professional Services
Industry CMAP 9510 Professional, Technical and
Classification: Specialized Services (limited to
professional services)
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal and State
Government:
Measures: Ley Reglamentaria del Art culo 5o.
Constitucional, Relativo al Ejercicio de las
Profesiones en el Distrito Federal, Cap tulo
III, Secci n Tercera, Cap tulos IV, V
Ley General de Poblaci n,T tulo III, Cap tulo
III
Reglamento de la Ley Reglamentaria del
Art culo 5o. Constitucional, relativo al
Ejercicio de las Profesiones en el Distrito
Federal, Cap tulo III
Description: Cross-Border Services
Only Mexican nationals may be licensed in
professions that require a professional
license ("c dula profesional").
An "inmigrado" or an "inmigrante" may seek a
judicial order to obtain such a license.
Phase-Out: Citizenship and permanent residency
requirements are subject to removal within
two years of the date of entry into force of
this Agreement in accordance with Article
1210(3). On removal of these requirements,
a
foreign professional will be required to have
an address in Mexico.
With respect to legal services, see Schedule
of Mexico, Annex I, page I-M-46, Schedule of
Mexico Annex II, page II-M-10, and Schedule
of Mexico, Annex VI, page VI-M-2.
Annex I - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Professional Services
Industry CMAP 951002 Legal Services (including
Classification: foreign legal consultancy)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Level of Federal
Government:
Measures: Ley Reglamentaria del Art culo 5o.
Constitucional, Relativo al Ejercicio de las
Profesiones en el Distrito Federal, Cap tulo
I, Cap tulo III, Secci n III
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley Reglamentaria del
Art culo 5o. Constitucional, relativo al
Ejercicio de las Profesiones en el Distrito
Federal, Cap tulos I, II, V
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
As qualified by the Description element
Description: Cross Border Services and Investment
Except as provided for in this reservation,
only lawyers licensed in Mexico may have an
ownership interest in a law firm established
in the territory of Mexico.
Annex I - Mexico
Lawyers licensed in a Canadian province that
permits partnerships between those lawyers
and lawyers licensed in Mexico will be
permitted to form partnerships with lawyers
licensed in Mexico.
The number of lawyers licensed in Canada
serving as partners, and their ownership
interest in the partnership, may not exceed
the number of lawyers licensed in Mexico
serving as partners, and their ownership
interest in the partnership. A lawyer
licensed in Canada may not practice or advise
on Mexican law.
A law firm established by a partnership of
lawyers licensed in Canada and lawyers
licensed in Mexico may hire lawyers licensed
in Mexico as employees.
Lawyers licensed in Canada will be subject to
Schedule of Mexico, Annex VI, page VI-M-2.
Lawyers licensed in the United States will be
subject to Schedule of Mexico, Annex II, page
II-M-10 and Schedule of Mexico, Annex VI,
page VI-M-2.
Phase-Out: None
Annex I - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Professional Services
Industry CMAP 951003 Accounting and Auditing
Classification: Services (limited to
accounting services)
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: C digo Fiscal de la Federaci n, T tulo III
Reglamento del C digo Fiscal de la
Federaci n, Cap tulo II
Description: Cross-Border Services
Only Mexican nationals who are licensed as
accountants in Mexico are authorized to
perform audits for tax purposes on behalf of:
(a) state enterprises;
(b) enterprises that are authorized to
receive tax-deductible donations;
(c) enterprises with income, capital stock,
number of employees and operations above
levels specified annually by the
Secretar a de Hacienda y Cr dito
P blico; or
(d) enterprises undergoing a merger or
divestiture.
Phase-Out: Citizenship and permanent residency
requirements are subject to removal within
two years of the date of entry into force of
this Agreement in accordance with Article
1210(3). On removal of these requirements,
a
foreign professional will be required to have
an address in Mexico.
Annex I - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Specialized Services (Commercial Public
Notaries)
Industry
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: C digo de Comercio, Libro I, T tulo III
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y
Regular la Inversi n Extranjera, T tulo I;
T tulo II, Cap tulo I; T tulo IV; T tulo V;
T tulo VIII, Cap tulos I, II, III, V; T tulo
II, Cap tulo I
Description: Cross-Border Services and Investment
1. Only a Mexican national by birth may be
licensed to be a commercial public notary
("corredor p blico").
2. A commercial public notary may not have
a business affiliation with any person for
the provision of commercial public notary
services.
Phase-Out: 1. Citizenship and permanent residency
requirements are subject to removal within
two years of the date of entry into force of
this Agreement in accordance with Article
1210(3). On removal of these requirements,
a
foreign professional will be required to have
an address in Mexico.
2. None
Annex I - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Specialized Services
Industry CMAP 951001 Public Notary
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Level of Federal and State
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Leyes del Notariado para los Estados de:
Aguascalientes, Baja California, Baja
California Sur, Campeche, Coahuila, Colima,
Chiapas, Chihuahua, Distrito Federal,
Durango, Guanajuato, Guerrero, Hidalgo,
Jalisco, M xico, Michoac n, Morelos, Nayarit,
Nuevo Le n, Oaxaca, Puebla, Quer taro,
Quintana Roo, San Luis Potos , Sonora,
Tabasco, Tamaulipas, Tlaxcala, Veracruz,
Yucat n and Zacatecas.
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Cross-Border Services and Investment
Only Mexican nationals by birth may be
granted a fiat ("patente") to be public
notaries ("notarios p blicos").
A public notary may not have a business
affiliation with any person for the provision
of public notary services.
Phase-Out: None
Annex I - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Professional Services
Industry CMAP 951023 Other Professional Services
Classification: (limited to private veterinary
services)
Type of National Treatment (Article 1202)
Reservation:
Level of Federal
Government:
Measures: Ley de Sanidad Fitopecuaria de los Estados
Unidos Mexicanos, T tulo II, Cap tulo IV
Reglamento de Control de Productos
Qu mico-Farmac uticos, Biol gicos,
Alimenticios, Equipos y Servicios para
Animales, Cap tulos IV, V
Description: Cross-Border Services
For enterprises that manage chemical,
pharmaceutical and biological goods for
application to animals, only a Mexican
national may be:
(a) a veterinarian responsible for
management of such goods; or
(b) a licensed professional responsible for
laboratories of such enterprises.
Phase-Out: Citizenship and permanent residency
requirements are subject to removal within
two years of the date of entry into force of
this Agreement in accordance with Article
1210(3). On removal of these requirements,
a
foreign professional will be required to have
an address in Mexico.
Annex I - Mexico
Sector: Retail Commerce
Sub-Sector: Sale of Non-Food Products in Specialized
Establishments
Industry CMAP 623087 Sale of Firearms, Cartridges
Classification: and Ammunition
CMAP 612024 Wholesale Commerce, Not
Elsewhere Classified (limited
to firearms, cartridges and
ammunition)
Type of National Treatment (Article 1102)
Reservation: Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Ley Federal de Armas de Fuego y Explosivos,
T tulo III, Cap tulo I
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley Federal de Armas de
Fuego y Explosivos, Cap tulo IV
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Investment
Investors of another Party or their
investments may only own, directly or
indirectly, up to 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
that sells firearms, cartridges and
ammunition.
No foreign national may appoint or be
appointed a member of the board of directors
or managing officer of such an enterprise.
Phase-Out: None I-M-55
Annex I - Mexico
Sector: Religious Services
Sub-Sector:
Industry CMAP 929001 Religious Services
Classification:
Type of Local Presence (Article 1205)
Reservation: Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Ley de Asociaciones Religiosas y Culto
Privado, T tulo II, Cap tulos I, II
Description: Cross-Border Services
Religious associations must be associations
constituted in accordance with the Ley de
Asociaciones Religiosas y Cultos Privados.
Investment
Representatives of religious associations in
Mexico must be Mexican nationals.
Phase-Out: None
Annex I - Mexico
Sector: Services to Agriculture
Sub-Sector:
Industry CMAP 971010 Supply of Agricultural
Classification: Services
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de Sanidad Fitopecuaria de los Estados
Unidos Mexicanos, T tulo II
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Reglamento de la Ley de Sanidad Fitopecuaria
de los Estados Unidos Mexicanos, Cap tulo VII
Description: Cross-Border Services
A concession granted by the Secretar a de
Agricultura y Recursos Hidr ulicos is
required to spray pesticides.
Only Mexican nationals or Mexican enterprises
may obtain such a concession.
Phase-Out: Six years after the date of entry into force
of this Agreement, the requirement of a
concession will be replaced with a permit
requirement and the citizenship requirement
will be eliminated.
Annex I - Mexico
Sector: Transportation
Sub-Sector: Air Transportation
Industry CMAP 713001 Transportation Services on
Classification: Mexican-Registered Aircraft
CMAP 713002 Air Taxi Transportation
Services
Type of National Treatment (Article 1102)
Reservation: Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Ley de V as Generales de Comunicaci n, Libro
IV, Cap tulo I, X, XI
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
As qualified by the Description element
Description: Investment
Investors of another Party or their
investments may only own, directly or
indirectly, up to 25 percent of the voting
interest in an enterprise established or to
be established in the territory of Mexico
that provides commercial air services on
Mexican-registered aircraft. The chairman
and at least two-thirds of the board of
directors and two-thirds of managing officers
of such an enterprise must be Mexican
nationals.
Only Mexican nationals and Mexican
enterprises in which 75 percent of the voting
Annex I - Mexico
interests is owned or controlled by Mexican
nationals and of which the chairman and at
least two-thirds of the managing officers are
Mexican nationals may register aircraft in
Mexico.
Only Mexican-registered aircraft may provide
the following commercial air transport
services:
(a) "domestic services" (air services
between points, or from and to the same
point, in the territory of Mexico, or
between a point in the territory of
Mexico and a point not in the territory
of another country);
(b) "scheduled international services"
(scheduled air services between a point
in the territory of Mexico and a point
in the territory of another country)
where those services have been reserved
to Mexican carriers under existing or
future bilateral agreements; and
(c) "non-scheduled international services"
(non-scheduled air services between a
point in the territory of Mexico and a
point in the territory of another
country) where those services have been
reserved to Mexican carriers under
existing or future bilateral agreements.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Specialty Air Services
Industry
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro IV, Cap tulo
XII
As qualified by paragraphs 2, 3 and 4 of the
Description element
Description: Cross-Border Services
1. A permit issued by the Secretar a de
Comunicaciones y Transportes (SCT) is
required to provide all specialty air
services in the territory of Mexico.
2. A person of Canada or the United States
may obtain such a permit to provide flight
training, forest fire-management, fire-
fighting, glider towing, and parachute
jumping services in Mexico, subject to
compliance with Mexican safety requirements.
3. Such a permit may not be issued to a
person of Canada or the United States to
provide aerial advertising, aerial
sightseeing, aerial construction,
heli-logging, inspection and surveillance,
mapping, photography, surveying and aerial
spraying services.
Annex I - Mexico
Investment
4. Investors of another Party or their
investments may only own, directly or
indirectly, up to 25 percent of the voting
interests in an enterprise established or to
be established in the territory of Mexico
that provides specialty air services using
Mexican-registered aircraft. The chairman
and at least two-thirds of the board of
directors and two-thirds of managing officers
of such an enterprise must be Mexican
nationals. Only Mexican nationals and
Mexican enterprises in which 75 percent of
the voting interests is owned or controlled
by Mexican nationals and of which the
chairman and at least two-thirds of the
managing officers are Mexican nationals may
register aircraft in Mexico.
Phase-Out: Cross-Border Services
A person of Canada or the United States will
be allowed to obtain a permit by SCT to
provide, subject to compliance with Mexican
safety requirements, the following specialty
air services:
(a) three years after the date of entry into
force of this Agreement, aerial
advertising, aerial sightseeing
services, aerial construction and heli-
logging; and
(b) six years after the date of entry into
force of this Agreement, inspection and
surveillance, mapping, photography,
surveying and aerial spraying services.
Investment
None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Air Transportation
Industry CMAP 384205 Aircraft Building, Assembly
Classification: and Repair (limited to
aircraft repair)
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro IV, Cap tulo
XV
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Reglamento de Talleres Aeron uticos, Cap tulo
I
Description: Cross-Border Services
A concession granted by the Secretar a de
Comunicaciones y Transportes is required to
establish and operate, or operate, an
aircraft repair facility. Only Mexican
nationals and Mexican enterprises may obtain
such a concession.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Air Transportation
Industry CMAP 973301 Air Navigation Services
Classification: CMAP 973302 Airport and Heliport
Administration Services
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro IV, Cap tulo
IX
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Cross-Border Services
A concession granted by the Secretar a de
Comunicaciones y Transportes is required to
construct and operate, or operate, airports
and heliports and to provide air navigation
services. Only Mexican nationals and Mexican
enterprises may obtain such a concession.
Annex I - Mexico
Investment
Prior approval of the Comisi n Nacional de
Inversiones Extranjeras is required for
investors of another Party or their
investments to own, directly or indirectly,
more than 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
engaged in the following activities:
(a) construction and operation of airports
or heliports;
(b) operation of airports or heliports; or
(c) provision of air navigation services.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Land Transportation
Industry CMAP 973101 Bus and Truck Station
Classification: Administration and Ancillary
Services (main bus and truck
terminals and bus and truck
stations)
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Ley de V as Generales de Comunicaci n, Libro
I, Cap tulo I, II, III; Libro II, T tulo II,
Cap tulos I, II; T tulo III, Cap tulo Unico
Reglamento para el Aprovechamiento del
Derecho de V a de las Carreteras Federales y
Zonas Aleda as, Cap tulos II, IV
Reglamento del Servicio P blico de
Autotransporte Federal de Pasajeros, Cap tulo
III, IV
As qualified by paragraph 1 of the
Description element
Description: Cross-Border Services
1. A permit issued by the Secretar a de
Comunicaciones y Transportes is required to
establish, or operate, a bus or truck station
or terminal. Only Mexican nationals and
Mexican enterprises with a foreigners'
exclusion clause may obtain such a permit.
Investment
2. Investors of another Party or their
investments may not own, directly or
indirectly, ownership interest in an
enterprise established or to be established
in the territory of Mexico engaged in the
Annex I - Mexico
establishment or operation of bus or truck
stations or terminals.
Phase-Out: Cross-Border Services
Three years after the date of signature of
this Agreement, such a permit may be obtained
by Mexican nationals and Mexican enterprises.
Investment
With respect to an enterprise established or
to be established in the territory of Mexico
engaged in the establishment or operation of
bus or truck station or terminals, investors
of another Party or their investments may
own, directly or indirectly:
(a) three years after the date of signature
of this Agreement, only up to 49 percent
of the ownership interest in the
enterprise;
(b) seven years after the date of entry into
force of this Agreement, only up to 51
percent of the ownership interest in the
enterprise; and
(c) ten years after the date of entry into
force of this Agreement, 100 percent of
the ownership interest in the
enterprise.
Annex I - Mexico
Sector: Transportation
Sub-Sector: Land Transportation
Industry CMAP 711101 Railway Transport Services
Classification: (limited to railway crew)
Type of National Treatment (Article 1202)
Reservation:
Level of Federal
Government:
Measures: Ley Federal del Trabajo, Cap tulo I
Description: Cross-Border Services
Railway crew members must be Mexican
nationals.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Land Transportation
Industry CMAP 973102 Road and Bridge Administration
Classification: Services and Ancillary
Services
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro II, T tulo II,
Cap tulo II; T tulo III, Cap tulo Unico
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Description: Cross-Border Services
A concession granted by the Secretar a de
Comunicaciones y Transportes is required to
provide road and bridge administration
services and ancillary services. Only
Mexican nationals and Mexican enterprises may
obtain such a concession.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Land Transportation
Industry CMAP 711312 Urban and Suburban Passenger
Classification: Transportation Service by Bus
CMAP 711315 Collective Automobile
Transportation Service
CMAP 711316 Established Route Automobile
Transportation Service
CMAP 711317 Automobile Transportation
Services from a Specific
Station
CMAP 711318 School and Tourist
Transportation Services
(limited to school
transportation services)
Type of National Treatment (Article 1102, 1202)
Reservation:
Level of Federal
Government:
Measures: Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro II, T tulo II,
Cap tulo II
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Reglamento del Servicio P blico de
Autotransporte Federal de Pasajeros, Cap tulo
II
Annex I - Mexico
Description: Cross-Border Services and Investment
Only Mexican nationals and Mexican
enterprises with a foreigners' exclusion
clause may provide local bus services, school
bus services and taxi and other collective
transportation services.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Land Transportation
Industry CMAP 711201 Road Transport Services for
Classification: Construction Materials
CMAP 711202 Road Transport Moving Services
CMAP 711203 Other Services of Specialized
Cargo Transportation
CMAP 711204 General Trucking Services
CMAP 711311 Inter-City Busing Services
CMAP 711318 School and Tourist
Transportation Services
(limited to tourist
transportation services)
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Memorandum de Entendimiento entre los Estados
Unidos Mexicanos y los Estados Unidos de
Norteam rica para la Promoci n de Servicios
de Transporte Tur stico de Ruta Fija, 3 de
diciembre de 1990
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro II, T tulo II,
Cap tulo II; T tulo III, Cap tulo Unico
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
As qualified by paragraphs 1, 3 and 4 of the
Description element.
Description: Cross-Border Services
Annex I - Mexico
1. A permit issued by the Secretar a de
Comunicaciones y Transportes is required to
provide inter-city bus services, tourist
transportation services or truck services for
the transportation of goods or passengers to
or from the territory of Mexico.
2. Only Mexican nationals and Mexican
enterprises with a foreigners' exclusion
clause may provide such services.
3. Notwithstanding paragraph 2, a person of
Canada or the United States will be permitted
to provide international charter or tour bus
services to or from the territory of Mexico.
4. Only Mexican nationals and Mexican
enterprises with a foreigners' exclusion
clause, using Mexican-registered equipment
that is Mexican-built or legally imported and
drivers who are Mexican nationals, may
provide bus or truck services for the
transportation of goods or passengers between
points in the territory of Mexico.
Investment
5. Investors of another Party or their
investments may not own directly or
indirectly, an ownership interest in an
enterprise established or to be established
in the territory of Mexico engaged in bus or
truck transportation services as set out in
the Industry Classification element.
Phase-Out: Cross-Border Services
A person of Canada or of the United States
will be permitted to provide:
(a) three years after the date of signature
of this Agreement, cross-border truck
services to or from the territory of
border states (Baja California,
Annex I - Mexico
Chihuahua, Coahuila, Nuevo Le n, Sonora
and Tamaulipas), and such a person will
be permitted to enter and depart Mexico
through different ports of entry in such
states;
(b) three years after the date of entry into
force of this Agreement, cross-border
scheduled bus services to or from the
territory of Mexico; and
(c) six years after the date of entry into
force of this Agreement, cross-border
truck services to or from the territory
of Mexico.
Three years after the date of signature of
this Agreement, only Mexican nationals and
Mexican enterprises, using Mexican-registered
equipment that is Mexican-built or legally
imported and drivers who are Mexican
nationals, may provide bus or truck services
for the transportation of international cargo
or passengers between points in the territory
of Mexico. For domestic cargo, paragraph 4
of the Description element will continue to
apply.
Investment
With respect to an enterprise established or
to be established in the territory of Mexico
providing inter-city bus services, tourist
transportation services, or truck services
for the transportation of international cargo
between points in the territory of Mexico,
investors of another Party or their
investments may own, directly or indirectly:
(a) three years after the date of signature
of this Agreement, only up to 49 percent
of ownership interest in such an
enterprise;
(b) only own, seven years after the date of
entry into force of this Agreement, only
Annex I - Mexico
up to 51 percent of the ownership
interest in such an enterprise; and
(c) ten years after the date of entry into
force of this Agreement, 100 percent of
the ownership interest in such an
enterprise.
Investors of another Party or their
investments may not own, directly or
indirectly, an ownership interest in an
enterprise providing truck services for the
carriage of domestic cargo.
Annex I - Mexico
Sector: Transportation
Sub-Sector: Land Transportation and Water Transportation
Industry CMAP 501421 Marine and River Works
Classification: CMAP 501422 Construction of Roads for Land
Transportation
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro II, T tulo II,
Cap tulo II; Libro III, Cap tulos II, XV
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Description: Cross-Border Services
A concession granted by the Secretar a de
Comunicaciones y Transportes is required to
construct and operate, or operate, marine or
river works or roads for land transportation.
Such a concession may be granted only to
Mexican nationals and Mexican enterprises.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Non-Energy Pipelines
Industry
Classification:
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III
Ley Federal de Aguas, T tulo I, Cap tulo I
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Description:
Cross-Border Services
A concession granted by the Secretar a de
Comunicaciones y Transportes is required to
construct and operate, or operate, pipelines
carrying goods other than energy or basic
petrochemicals. Only Mexican nationals and
Mexican enterprises may obtain such a
concession.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Specialized Personnel
Industry CMAP 951012 Customs Brokers
Classification:
Type of National Treatment (Article 1102)
Reservation:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley Aduanera, T tulo II, Cap tulo Unico
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Description: Investment
Investors of another Party or their
investments may not own, directly or
indirectly, an ownership interest in a
customs broker enterprise ("agencia
aduanal").
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Water Transportation
Industry CMAP 1300 Fishing
Classification:
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de Pesca, Cap tulos I, II
Ley de Navegaci n y Comercio Mar timos,
Libro II, T tulo Unico, Cap tulo I
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Reglamento de la Ley de Pesca, Cap tulo I,
III, IV, V, VI, IX, XV
Description: Cross-Border Services
A concession granted, or permit issued, by
the Secretar a de Pesca is required to engage
in fishing activities in "Mexican
jurisdictional waters". Only Mexican
nationals and Mexican enterprises, using
Mexican-flagged vessels, may obtain such a
concession or permit. Permits may
exceptionally be issued to persons operating
vessels flagged in a foreign country that
provides equivalent treatment to
Mexican-flagged vessels to engage in fishing
activities in the Exclusive Economic Zone.
Only Mexican nationals and Mexican
enterprises may obtain authorization from the
Secretar a de Pesca for deep sea fishing on
Mexican-flagged vessels, fixed rigging
installations, recollection from the natural
Annex I - Mexico
milieu of larvae, post-larvae, eggs, seeds or
fingerlings, for research or aquaculture
purposes, introduction of live species into
"Mexican jurisdictional waters", and for
educational fishing in accordance with the
programs of fishing educational institutions.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Water Transportation
Industry CMAP 384201 Shipbuilding and Ship Repair
Classification:
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Performance Requirements (Article 1106)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro III, Cap tulo
XV
Ley para el Desarrollo de la Marina Mercante,
Cap tulo IV
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Description: Cross-Border Services
A concession granted by the Secretar a de
Comunicaciones y Transportes is required to
establish and operate, or operate, a
shipyard. Only Mexican nationals and Mexican
enterprises may obtain such a concession.
Cross-Border Services and Investment
For the owner of a Mexican-flagged vessel to
be eligible for government cargo preferences,
subsidies and tax benefits granted under the
Ley para el Desarrollo de la Marina Mercante,
that owner must carry out repair and
maintenance operations in shipyards and
repair facilities in the territory of Mexico.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Water Transportation
Industry CMAP 712011 International Maritime
Classification: Transportation Services
CMAP 712012 Cabotage Maritime Services
CMAP 712013 International and Cabotage
Towing Services
CMAP 712022 Internal Port Water
Transportation Services
CMAP 712021 River and Lake Transportation
Services
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II y III; Libro III,
Cap tulos I-XV
Ley para el Desarrollo de la Marina Mercante,
Cap tulos I, III
Ley de Navegaci n y Comercio Mar timos, Libro
II, T tulo Unico, Cap tulos I, III
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo I
IX, Cap tulo I
Annex I - Mexico
Description: Cross-Border Services and Investment
Maritime cabotage services, including off-
shore maritime services, are reserved to
Mexican-flagged vessels. A waiver may be
granted by the Secretar a de Comunicaciones
y
Transportes where Mexican-flagged vessels are
not able to provide such services. Only
Mexican-flagged vessels may transport cargo
owned by the Federal Government.
Foreign-flagged vessels may provide
international maritime services in the
territory of Mexico on the basis of
reciprocity with the relevant country. Only
Mexican-flagged towing vessels may provide
towing services from Mexican ports to foreign
ports. Where such towing vessels are not
able to provide such services, the Secretar
a
de Comunicaciones y Transportes may provide
permits to foreign-flagged towing vessels.
Only a Mexican national or a Mexican
enterprise with a foreigners' exclusion
clause may own vessels registered and flagged
as Mexican. All members of the board of
directors and managers of such enterprise
must be Mexican nationals.
Investment
Prior approval of the Comisi n Nacional de
Inversiones Extranjeras is required for
investors of another Party or their
investments to own, directly or indirectly,
more than the 49 percent of the ownership
interest in an enterprise established or to
be established in the territory of Mexico
operating foreign-flagged vessels providing
international maritime transport services.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Water Transportation
Industry CMAP 973203 Maritime and Inland (Lake and
Classification: Rivers) Ports Administration
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Ley de Navegaci n y Comercio Mar timos, Libro
II, Cap tulo II
Ley de V as Generales de Comunicaci n, Libro
III, Cap tulo XI
Description: Cross-Border Services
All port workers must be Mexican nationals.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Water Transportation
Industry CMAP 973201 Loading and Unloading Services
Classification: Related to Water
Transportation (includes
operation and maintenance of
docks; loading and unloading
of vessels at shore-side;
marine cargo handling;
operation and maintenance of
piers; ship and boat cleaning;
stevedoring; transfer of cargo
between ships and trucks,
trains, pipelines and wharves;
waterfront terminal
operations)
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Ley de Navegaci n y Comercio Mar timos, Libro
I, T tulo Unico, Cap tulo I; Libro II, T tulo
II
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera, Cap tulos I,
II, III, V, VI
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro III, Cap tulo
II
Reglamento de la Ley para Promover la
Inversi n Mexicana y Regular la Inversi n
Extranjera, T tulo I; T tulo II, Cap tulo I;
T tulo IV; T tulo V; T tulo VIII, Cap tulos
I, II, III, V; T tulo IX, Cap tulo I
Reglamento del Servicio de Maniobras en las
Zonas Federales de Puertos, Libro I, T tulo
Unico, Cap tulo I; Libro II, T tulo Unico,
Cap tulo II, Secci n A; Libro IV, T tulo
Unico
Annex I - Mexico
Reglamento para el Uso y Aprovechamiento del
Mar Territorial, V as Navegables, Playas,
Zona Federal Mar timo Terrestre y Terrenos
Ganados al Mar, Cap tulo II, Secci n II
As qualified by the Description element
Description: Investment
Prior approval of the Comisi n Nacional de
Inversiones Extranjeras is required for
investors of another Party or their
investments to own, directly or indirectly,
more than 49 percent of the ownership
interest in an enterprise, established or to
be established in the territory of Mexico
providing to third persons the following
services: operation and maintenance of docks;
loading and unloading of vessels at shore-
side; marine cargo handling; operation and
maintenance of piers; ship and boat cleaning;
stevedoring; transfer of cargo between ships
and trucks, trains, pipelines and wharves;
and waterfront terminal operations.
Phase-Out: None
Annex I - Mexico
Sector: Transportation
Sub-Sector: Water Transportation
Industry CMAP 973201 Loading and Unloading Services
Classification: Related to Water
Transportation (includes
operation and maintenance of
docks; loading and unloading
of vessels at shore-side;
marine cargo handling;
operation and maintenance of
piers; ship and boat cleaning;
stevedoring; transfer of cargo
between ships and trucks,
trains, pipelines and wharves;
waterfront terminal
operations)
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de Navegaci n y Comercio Mar timos, Libro
I, T tulo Unico, Cap tulo I; Libro II, T tulo
II
Ley de V as Generales de Comunicaci n, Libro
I, Cap tulos I, II, III; Libro III, Cap tulo
II
Ley de Nacionalidad y Naturalizaci n,
Cap tulo IV
Reglamento del Servicio de Maniobras en las
Zonas Federales de Puertos, Libro I, T tulo
Unico, Cap tulo I, Libro II, T tulo Unico,
Cap tulo II, Secci n A; Libro IV, T tulo
Unico
Reglamento para el Uso y Aprovechamiento del
Mar Territorial, V as Navegables, Playas,
Annex I - Mexico
Zona Federal Mar timo Terrestre y Terrenos
Ganados al Mar, Cap tulo II, Secci n II
Description: Cross-Border Services
A concession granted by the Secretar a de
Comunicaciones y Transportes is required to
construct and operate, or operate, maritime
and inland port terminals, including docks,
cranes and related facilities. Only Mexican
nationals and Mexican enterprises may obtain
such a concession.
A permit issued by the Secretar a de
Comunicaciones y Transportes is required to
provide stevedoring and warehousing services.
Only Mexican nationals and Mexican
enterprises may obtain such a permit.
Phase-Out: None
Title:Annex II -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:22635
Annex II
Schedule of Mexico
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation:
Description: Cross-Border and Investment
Mexico reserves the right to adopt or
maintain any measure restricting the
acquisition, sale or other disposition of
bonds, treasury bills or any other kind of
debt security issued by the federal, state or
local governments, except with respect to
ownership by "a financial institution of
another Party", as defined in Chapter
Fourteen (Financial Services).
Existing Measures:
Annex II - Mexico
Sector: Communications
Sub-Sector: Entertainment Services (Broadcasting and
Multipoint Distribution Systems (MDS))
Industry CMAP 941104 Private Production and
Classification: Transmission of Radio Programs
(limited to transmission of
radio programs, MDS and
uninterrupted music)
CMAP 941105 Private Services of
Production, Transmission and
Retransmission of Television
Programming (limited to
transmission and
retransmission of television
programs, MDS, and
high-definition television)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Mexico reserves the right to adopt or
maintain any measure relating to investment
in, or provision of, broadcasting, multipoint
distribution systems, uninterrupted music and
high-definition television services. This
reservation does not apply to measures
relating to the production, sale or licensing
of radio or television programming.
Existing Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n
Ley Federal de Radio y Televisi n
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera
Annex II - Mexico
Sector: Communications
Sub-Sector: Telecommunications
Industry CMAP 720006 Other Telecommunications
Classification: Services (limited to
aeronautical mobile and fixed
services)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Description: Cross-Border Services and Investment
Mexico reserves the right to adopt or
maintain any measure relating to investment
in, or provision of, air traffic control,
aeronautical meteorology, aeronautical
telecommunications, and other
telecommunications services relating to air
navigation services.
Existing Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Ley de V as Generales de Comunicaci n
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera
Decreto que Crea el Organismo Desconcentrado
"Servicios a la Navegaci n en el Espacio
A reo Mexicano" (SENEAM), 3 de octubre de
1978
Annex II - Mexico
Sector: Communications
Sub-Sector: Telecommunications Transport Networks
Industry CMAP 720003 Telephone Services
Classification: CMAP 720004 Telephone Booth Services
CMAP 720006 Other Telecommunications
Services (not including
enhanced or value-added
services)
CMAP 502003 Telecommunications
Installations
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Description: Cross-Border Services and Investment
Mexico reserves the right to adopt or
maintain any measure relating to investment
in, or provision of, telecommunications
transport networks and telecommunications
transport services. Telecommunications
transport networks include the facilities to
provide telecommunications transport services
such as local basic telephone services,
long-distance telephone services (national
and international), rural telephone services,
cellular telephone services, telephone booth
services, satellite services, trunking,
paging, mobile telephony, maritime
telecommunications services, air telephone,
telex, and data transmission services.
Telecommunications transport services
typically involve the real-time transmission
of customer-supplied information between two
or more points without any end-to-end change
in the form or content of the customer's
information, whether or not such services are
offered to the public generally.
Existing Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Annex II - Mexico
Ley de V as Generales de Comunicaci n
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera
Reglamento de Telecomunicaciones
Annex II - Mexico
Sector: Communications and Transportation
Sub-Sector: Postal Services, Telecommunications and
Railroads
Industry CMAP 720001 Postal Services
Classification: CMAP 720005 Telegraph Services,
Radiotelegraph Services,
Wireless Telegraphy
CMAP 720006 Other Telecommunications
Services (limited to satellite
communications)
CMAP 711101 Railway Transportation
Services (limited to
operation, administration and
control of traffic within the
Mexican railway system,
supervision and management of
railway rights-of-way,
construction, operation, and
maintenance of basic railway
infrastructure)
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)
Description: Cross-Border Services
Mexico reserves the right to adopt or
maintain any measure related to the provision
of postal services (operation, administration
and organization of first class mail),
telegraph services, radiotelegraphy services,
satellite communications services
(establishment, ownership and operation of
satellite systems, and establishment,
ownership and operation of earth stations
with international links), and railroad
services (operation, administration and
control of traffic within the Mexican railway
system, supervision and management of railway
rights-of-way, construction, operation, and
maintenance of basic railway infrastructure).
Annex II - Mexico
Existing Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 28
Ley de V as Generales de Comunicaci n
Ley Org nica de Ferrocarriles Nacionales de
M xico
Ley del Servicio Postal Mexicano
Annex II - Mexico
Sector: Energy
Sub-Sector: Petroleum and Other Hydrocarbons
Basic Petrochemicals
Electricity
Nuclear Power
Treatment of Radioactive Minerals
Industry
Classification:
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)
Description: Cross-Border Services
Subject to Annex 602.3, Mexico reserves the
right to adopt or maintain any measure
related to services associated with energy
and basic petrochemical goods.
Existing Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culos 27, 28
Ley Reglamentaria del Art culo 27
Constitucional en Materia Nuclear
Ley Reglamentaria del Art culo 27
Constitucional en el Ramo del Petr leo y sus
reglamentos
Ley Org nica de Petr leos Mexicanos y
Organismos Subsidiarios
Annex II - Mexico
Sector: Minority Affairs
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Description: Cross-Border Services
Mexico reserves the right to adopt or
maintain any measure according rights or
preferences to socially or economically
disadvantaged groups.
Existing Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 4
Annex II - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Professional Services
Industry CMAP 951002 Legal Services (including
Classification: foreign legal consultancy)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Subject to Schedule of Mexico, Annex VI, page
VI-M-2, Mexico reserves the right to adopt or
maintain any measure relating to the
provision of legal services and foreign legal
consultancy services by persons of the United
States.
Existing Measures: Ley Reglamentaria del Art culo 5o.
Constitucional, relativo al ejercicio de las
profesiones en el Distrito Federal
Ley para Promover la Inversi n Mexicana y
Regular la Inversi n Extranjera
Annex II - Mexico
Sector: Social Services
Sub-Sector:
Industry
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Mexico reserves the right to adopt or
maintain any measure with respect to the
provision of public law enforcement and
correctional services, and the following
services to the extent they are social
services established or maintained for a
public purpose: income security or insurance,
social security or insurance, social welfare,
public education, public training, health,
and child care.
Existing Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culos 4, 17, 18, 25, 26, 28,
123
Annex II - Mexico
Sector: Transportation
Sub-Sector: Specialized Personnel
Industry CMAP 951023 Other Specialized Services
Classification: (limited to ship captains
(capitanes); aircraft pilots
(pilotos); ship masters
(patrones); ship machinists
(maquinistas); ship mechanics
(mec nicos); airport
administrators (comandantes de
aer dromos); harbor masters
(capitanes de puerto); harbor
pilots (pilotos de puerto);
customs brokers (agentes
aduanales); crew on Mexican-
flagged vessels or aircraft
(personal que tripule
cualquier embarcaci n o
aeronave con bandera o
insignia mercante mexicana))
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)
Description: Cross-Border Services
Only Mexican nationals by birth may serve as:
(a) captains, pilots, ship masters,
machinists, mechanics and crew members
manning vessels or aircraft under the
Mexican flag;
(b) harbor pilots, harbor masters and
airport administrators; and
(c) customs brokers.
Existing Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culo 32
Title:Annex III - Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
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Annex III
Schedule of Mexico
Section A. Activities Reserved to the Mexican State
Mexico reserves the right to perform exclusively, and to
refuse to permit the establishment of investments in, the
following activities:
1. Petroleum, Other Hydrocarbons and Basic Petrochemicals
(a) Description of activities
(i) exploration and exploitation of crude oil and
natural gas; refining or processing of crude oil
and natural gas; and production of artificial gas,
basic petrochemicals and their feedstocks and
pipelines; and
(ii) foreign trade; transportation, storage and
distribution up to and including first hand sales
of the following goods: crude oil; natural and
artificial gas; goods covered by Chapter Six
(Energy and Basic Petrochemicals) obtained from
the refining or processing of crude oil and
natural gas; and basic petrochemicals.
(b) Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 27 y 28
Ley Reglamentaria del Art culo 27 Constitucional en el
Ramo del Petr leo
Ley Org nica de Petr leos Mexicanos y Organismos
Subsidiarios
2. Electricity
(a) Description of activities: the supply of electricity as
a public service in Mexico, including, the generation,
transmission, transformation, distribution and sale of
electricity.
(b) Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 27, 28
Ley del Servicio P blico de Energ a El ctrica
3. Nuclear Power and Treatment of Radioactive Minerals
(a) Description of activities: exploration, exploitation
and processing of radioactive minerals, the nuclear
fuel cycle, the generation of nuclear energy, the
transportation and storage of nuclear waste, the use
and reprocessing of nuclear fuel and the regulation of
their applications for other purposes and the
production of heavy water.
(b) Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 27, 28
Ley Reglamentaria del Art culo 27 Constitucional en
Materia Nuclear
4. Satellite Communications
(a) Description of activities: the establishment, operation
and ownership of satellite systems and earth stations
with international links.
(b) Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 28
Ley de V as Generales de Comunicaci n
5. Telegraph Services
Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 28
Ley de V as Generales de Comunicaci n
6. Radiotelegraph Services
Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 28
Ley de V as Generales de Comunicaci n
7. Postal Services
(a) Description of activities: operation, administration
and organization of first class mail.
(b) Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 28
Ley del Servicio Postal Mexicano
8. Railroads
(a) Description of activities: operation, administration
and control of traffic within the Mexican railway
system; supervision and management of railway
right-of-way; operation, construction and maintenance
of basic railway infrastructure.
(b) Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 28
Ley Org nica de Ferrocarriles Nacionales de M xico
9. Issuance of Bills (currency) and Minting of Coinage
Measures:
Constituci n Pol tica de los Estados Unidos Mexicanos,
Art culos 25, 28
Ley Org nica del Banco de M xico
Ley Org nica de la Casa de Moneda de M xico
Ley Monetaria de los Estados Unidos Mexicanos
10. Control, Inspection and Surveillance of Maritime and Inland
Ports
Measures:
Ley de Navegaci n y Comercio Mar timos
Ley de V as Generales de Comunicaci n
11. Control, Inspection and Surveillance of Airports and
Heliports
Measures:
Ley de V as Generales de Comunicaci n
The measures referred to are provided for transparency purposes
and include any subordinate measure adopted or maintained under
the authority of and consistent with such measures.
1. The activities set out in Section A are reserved to the
Section B. Deregulation of Activities Reserved to the State
2. If Mexican law is amended to allow private equity investment
Mexican State, and private equity investment is prohibited under
participate in such activities through service contracts,
Mexican Law. Where Mexico allows private investment to
concessions, lending arrangements or any other type of
contractual arrangement, such participation shall not be
construed to affect the State's reservation of those activities.
in an activity set out in Section A, Mexico may impose
enterprise engaged in activities set out in Section A, and
impose derogations from Article 1102 on foreign equity investment
from the initial sale, Mexico may restrict the transfer of such
participation when selling an asset or ownership interest in an
Where an activity was reserved to the Mexican State on
Section C. Activities Formerly Reserved to the Mexican State
describe them in Annex I.
date of entry into force of this Agreement, Mexico may restrict
January 1, 1992 and is not reserved to the Mexican State on the
the initial sale of a state-owned asset or an ownership interest
Mexican Constitution. For a period not to exceed three years
with majority ownership by Mexican nationals, as defined by the
in a state enterprise that performs that activity to enterprises
restrictions on foreign investment participation notwithstanding
Article 1102, and describe them in Annex I. Mexico may also
asset or ownership interest to other enterprises with majority
obligations of national treatment set out in Article 1102 apply.
This provision is subject to Article 1108. ownership by
Mexican nationals, as defined by the Mexican
Constitution. On expiration of the three-year period, the
Title:Annex IV -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:2069
Annex IV
Schedule of Mexico
Mexico takes an exception to Article 1103 for treatment
accorded under all bilateral or multilateral international
agreements in force or signed prior to the date of entry into
force of this Agreement.
For international agreements in force or signed after the
date of entry into force of this Agreement, Mexico takes an
exception to Article 1103 for treatment accorded under those
agreements involving:
(a) aviation;
(b) fisheries;
(c) maritime matters, including salvage; or
(d) telecommunications transport networks and
telecomunications transport services (this exception
does not apply to measures covered by Chapter
Thirteen (Telecommunications) or to the production,
sale or licensing of radio or television
programming).
With respect to state measures not yet set out in Annex I
pursuant Article 1108(2), Mexico takes an exception to Article
1103 for international agreements signed within two years of
the date of entry into force of this Agreement.
For greater certainty, Article 1103 does not apply to any
current or future foreign aid programs to promote economic
development, such as those governed by the Energy Economic
Cooperation Program with Central America and the Caribbean
(Pacto de San Jos ) and the OECD Agreement on Export Credits.
Title:Annex V -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6400
Annex V
Schedule of Mexico
Sector: Communications
Sub-Sector: Telecommunications
Industry CMAP 720006 Other Telecommunications
Classification: Services (limited to private
networks)
Level of Federal
Government:
Measures: Ley de V as Generales de Comunicaci n, Libro
I, Cap tulo III
Reglamento de Telecomunicaciones, Cap tulo
II, Cap tulo IV
Description: Resale of circuit capacity of a private
network may not exceed 30 percent of such
capacity.
Annex V - Mexico
Sector: Private Educational Services
Sub-Sector:
Industry CMAP 921101 Private Preschool Educational
Classification: Services
CMAP 921102 Private Primary School
Educational Services
CMAP 921103 Private Secondary School
Educational Services
CMAP 921104 Private Middle High
(Preparatory) School
Educational Services
CMAP 921105 Private Higher School
Educational Services
CMAP 921106 Private Educational Services
that combine Preschool,
Primary, Secondary, Middle
High and Higher School
Instruction
Level of Federal and State
Government:
Measures: Constituci n Pol tica de los Estados Unidos
Mexicanos, Art culos 3, 5
Ley Federal de Educaci n Cap tulos I, II, III
y IV
Ley para la Coordinaci n de la Educaci n
Superior, Cap tulos I y II
Ley Reglamentaria del Art culo 5o.
Constitucional relativo al Ejercicio de las
Profesiones en el Distrito Federal,
Cap tulos I, III, Secciones I, III
Reglamento de la Ley Reglamentaria del
Art culo 5o. Constitucional relativo al
Ejercicio de las Profesiones en el Distrito
Federal, Cap tulo V
Description: For the provision of primary, secondary,
"normal" or worker or peasant educational
services, prior and express authorization
Annex V - Mexico
granted by the Secretar a de Educaci n
P blica or the state competent authority is
required. Such authorization is granted or
canceled on a case-by-case basis in
accordance with public convenience and
necessity, at the discretion of the
Secretar a de Educaci n P blica or the state
competent authority.
No legal remedy is available under Mexican
law for the denial or revocation of such
authorization.
Annex V - Mexico
Sector: Transportation
Sub-Sector: Land Transportation
Industry CMAP 973103 Vehicle Parking Services
Classification: (parking and garage services)
CMAP 973104 Weight Scale Services for
Transportation
CMAP 973105 Towing Services for Vehicles
CMAP 973106 Other Services Related to Land
Transportation (not mentioned
in CMAP 9731, 7112 and 7113)
Level of Federal
Government:
Measures: Ley de V as Generales de Comunicaci n
Description: A permit issued by the Secretar a de
Comunicaciones y Transportes is required to
provide services related to land
transportation.
Title:Annex VI -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6548
Annex VI
Schedule of Mexico
Sector: Communications
Sub-Sector: Entertainment Services (Cinema)
Industry CMAP 941102 Private Services of
Classification: Distribution and Films Rental
Measures: Ley de la Industria Cinematogr fica
Reglamento de la Ley de la Industria
Cinematogr fica
Description: Cross-Border Services
A "distributor" of films produced outside of
Mexico is required to provide to the Cineteca
Nacional no more than one copy of two film
titles for each five film titles imported by
the distributor into Mexico.
Annex VI - Mexico
Sector: Professional, Technical and Specialized
Services
Sub-Sector: Professional Services
Industry CMAP 951002 Legal Services (limited to
Classification: foreign legal consultancy)
Level of Federal and State
Government:
Measures:
Description: 1. Mexico will ensure that:
(a) a lawyer authorized to practice in a
province of Canada or a state of the
United States who seeks to practice as
a
foreign legal consultant in Mexico will
be granted a license to do so if lawyers
licensed in Mexico are accorded
equivalent treatment in such province or
state; and
(b) a law firm headquartered in a province
of Canada or a state of the United
States that seeks to establish in Mexico
to provide legal services through
licensed foreign legal consultants will
be authorized to do so if law firms
headquartered in Mexico are accorded
equivalent treatment in such province or
state.
2. Mexico will, pursuant to paragraph 1(a),
deny benefits to foreign lawyers employed by
or associated with foreign legal consultancy
firms established in Mexico, pursuant to
paragraph 1(b), if such lawyers are not
authorized to practice in a province of
Canada or a state of the United States that
authorizes lawyers licensed in Mexico to
practice as foreign legal consultants in its
territory.
3. Subject to paragraphs 1 and 2, Mexico
will adopt measures regarding the practice of
foreign legal consultants in the territory of
Mexico, including matters related to
association with and hiring of lawyers
Annex VI - Mexico
licensed in Mexico.
Annex VI - Mexico
Sector: Transportation
Sub-Sector: Land Transportation
Industry CMAP 711201 Road Transport Services for
Classification: Construction Materials
CMAP 711202 Road Transport Moving Services
CMAP 711203 Other Services of Specialized
Cargo Transportation
CMAP 711204 General Trucking Services
CMAP 711311 Inter-City Busing Services
CMAP 711318 School and Tourist
Transportation Services
(limited to tourist
transportation services)
Measures:
Description: An enterprise authorized in Mexico to provide
bus or truck transportation services may use
equipment of its own, leased vehicles with an
option to purchase (financial leasing),
leased vehicles (operational leasing), or
short-term rental vehicles.
Federal measures will be established in
relation to leasing and rental operations.
Title:Annex VII -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:54040
Annex VII(A) - Mexico
Annex VII
Schedule of Mexico
Section A
Sector: Financial Services
Sub-Sector: Holding Companies (Sociedades
Controladoras)
Commercial Banks (Instituciones de
Cr dito)
Industry Classification: Holding Companies (Not applicable)
CMAP 811030 Commercial Banks
Type of Reservation: Establishment of Financial
Institutions (Article 1403)
National Treatment (Article 1405)
Level of Government: Federal
Measures: Ley para Regular las Agrupaciones
Financieras, Art culo 18
Ley de Instituciones de Cr dito,
Art culos 11, 15
Description: Aggregate foreign investments in
holding companies and in commercial
banks are limited to 30 percent of
common stock capital ("capital
ordinario"). These percentage limits
do not apply to investments in foreign
financial affiliates as such term is
defined in, and subject to terms and
conditions under, Sections B and C of
this Schedule.
Phase-Out: None
Annex VII(A) - Mexico
Sector: Financial Services
Sub-Sector: Securities Firms (Casas de Bolsa)
Securities Specialists (Especialistas
Burs tiles)
Industry Classification: CMAP 812001 Securities Firms
Securities Specialists
(Not Applicable)
Type of Reservation: Establishment of Financial
Institutions (Article 1403)
National Treatment (Article 1405)
Level of Government: Federal
Measures: Ley del Mercado de Valores, Art culo
17-II
Description: Aggregate foreign investments in
securities firms and securities
specialists are limited to 30 percent
of capital ("capital social") and
individual foreign investments are
limited to 10 percent of capital,
while individual investments by
Mexicans may, with approval from the
Secretar a de Hacienda y Cr dito
P blico, rise to 15 percent of
capital. These percentage limits do
not apply to investments in foreign
financial affiliates as such term is
defined in, and subject to terms and
conditions under, Sections B and C of
this Schedule.
Phase-Out: None
Annex VII(A) - Mexico
Sector: Financial Services
Sub-Sector: General Deposit Warehouses (Almacenes
Generales de Dep sito)
Financial Leasing Companies
(Arrendadoras Financieras)
Financial Factoring Companies
(Empresas de Factoraje Financiero)
Bonding Companies (Instituciones de
Fianzas)
Industry Classification: CMAP 811042 General Deposit
Warehouses
CMAP 811043 Financial Leasing
Companies Financial
Factoring Companies
(Not Applicable)
CMAP 813001 Bonding Companies
Type of Reservation: Establishment of Financial Intitutions
(Article 1403)
National Treatment (Article 1405)
Level of Government: Federal
Measures: Ley General de Organizaciones y
Actividades Auxiliares del Cr dito,
Art culo 8-III-1
Ley Federal de Instituciones de
Fianzas, Art culo 15-XIII
Description: Aggregate foreign investments in
general deposit warehouses, financial
leasing companies, financial factoring
companies and bonding companies must
be less than 50 percent of paid-in
capital ("capital pagado"). These
percentage limits do not apply to
investments in foreign financial
affiliates as such term is defined in,
and subject to terms and conditions
under, Section B of this Schedule.
Phase-Out: None
Annex VII(A) - Mexico
Sector: Financial Services
Sub-Sector: Credit Unions (Uniones de Cr dito)
Financial Agents (Comisionistas
Financieros)
Foreign Exchange Firms (Casas de
Cambio)
Industry Classification: CMAP 811041 Credit Unions
Financial Agents (Not
Applicable)
CMAP 811044 Foreign Exchange Firms
Type of Reservation: Establishment of Financial
Institutions (Article 1403) National
Treatment (Article 1405)
Level of Government: Federal
Measures: Ley General de Organizaciones y
Actividades Auxiliares del Cr dito,
Art culos 8-III-1, 82-III
Ley de Instituciones de Cr dito,
Art culo 92
Reglas de la Secretar a de Hacienda y
Cr dito P blico
Description: Foreign investments in credit unions,
financial agents and foreign exchange
firms are not allowed. This
limitation does not apply to
investments in foreign financial
affiliates as such term is defined in,
and subject to terms and conditions
under, Section B of this Schedule.
Phase-Out: None
Sector: Financial Services
Annex VII(A) - Mexico
Sub-Sector: Development Banks (Bancos de
Desarrollo)
Industry Classification: CMAP 811021 Development Banks
Type of Reservation: Establishment of Financial
Institutions (Article 1403) National
Treatment (Article 1405)
Level of Government: Federal
Measures: Ley de Instituciones de Cr dito,
Art culo 33
Description: Foreign investments in development
banks are not allowed.
Phase-Out: None
Annex VII(A) - Mexico
Sector: Financial Services
Sub-Sector: Insurance Companies (Instituciones de
Seguros)
Industry Classification: CMAP 813002 Insurance Companies
Type of Reservation: Establishment of Financial
Institutions (Article 1403) National
Treatment (Article 1405)
Level of Government: Federal
Measures: Ley General de Instituciones y
Sociedades Mutualistas de Seguros,
Art culo 29-I
Description: Aggregate foreign investments in
insurance companies must be less than
50 percent of paid-in capital
("capital pagado"). This percentage
limit does not apply to investments in
foreign financial affiliates as such
term is defined in Sections B and C of
this Schedule, or in insurance
companies, in both cases subject to
terms and conditions under Sections B
and C of this Schedule.
Phase-Out: None
Annex VII(A) - Mexico
Sector: Financial Services
Sub-Sector: Holding Companies (Sociedades
Controladoras)
Securities Firms (Casas de Bolsa)
Securities Specialists (Especialistas
Burs tiles)
General Deposit Warehouses (Almacenes
Generales de Dep sito)
Financial Leasing Companies
(Arrendadoras Financieras)
Financial Factoring Companies
(Empresas de Factoraje Financiero)
Savings and Loan Companies (Sociedades
de Ahorro y Pr stamo)
Managing Companies of Investment
Companies (Sociedades Operadoras de
Sociedades de Inversi n)
Investment Companies (Sociedades de
Inversi n)
Bonding Companies (Instituciones de
Fianzas)
Insurance Companies (Instituciones de
Seguros)
Industry Classification: Holding Companies (Not
Applicable)
CMAP 812001 Securities Firms
Securities Specialists
(Not Applicable)
CMAP 811042 General Deposit
Warehouses
CMAP 811043 Financial Leasing
Companies
Financial Factoring
Companies (Not
Applicable)
Saving and Loans
Companies (Not
Applicable)
CMAP 812003 Managing Companies of
Investment Companies
CMAP 812002 Investment Companies
CMAP 813001 Bonding Companies
CMAP 813002 Insurance Companies
Type of Reservation: Establishment of Financial
Institutions (Article 1403)
National Treatment (Article 1405)
Annex VII(A) - Mexico
Level of Government: Federal
Measures: Ley para Regular las Agrupaciones
Financieras, Art culo 18
Ley del Mercado de Valores, Art culo
17-II
Ley General de Organizaciones y
Actividades Auxiliares del Cr dito,
Art culos 8-III-1, 38-G
Ley de Sociedades de Inversi n,
Art culos 9-III, 29-VI
Ley Federal de Instituciones de
Fianzas, Art culo 15-XIII
Ley General de Instituciones y
Sociedades Mutualistas de Seguros,
Art culo 29-I
Description: Foreign governments and foreign state
enterprises may not invest, directly
or indirectly, in holding companies,
securities firms, securities
specialists, general deposit
warehouses, financial leasing
companies, financial factoring
companies, savings and loan companies,
managing companies of investment
companies, investment companies,
bonding companies or insurance
companies.
Phase-Out: None
Annex VII(A) - Mexico
Sector: Financial Services
Sub-Sector: Commercial Banks (Instituciones de
Cr dito)
Industry Classification: CMAP 811030 Commercial Banks
Type of Reservation: Establishment of Financial
Institutions (Article 1403) National
Treatment (Article 1405)
Level of Government: Federal
Measures: Ley de Instituciones de Cr dito,
Art culo 15
Description: Foreign entities that exercise
governmental functions may not invest,
directly or indirectly, in commercial
banks.
Phase-Out: None
Annex VII(A) - Mexico
Sector: Financial Services
Sub-Sector: Insurance
Industry Classification: CMAP 813002 Insurance
Type of Reservation: Cross-Border Trade (Article 1404)
National Treatment (Article 1405)
Level of Government: Federal
Measures: Ley General de Instituciones y
Sociedades Mutualistas de Seguros,
Art culo 3
Description: Mexico reserves its existing
prohibitions and restrictions on
cross-border trade in insurance
services, which do not now include
restrictions on the right of
individuals to purchase, by physical
mobility, life and health insurance.
Mexico is not reserving its present
restrictions with respect to the
ability of residents of Mexico to
purchase from cross-border insurance
providers of another Party the
following types of insurance:
(a) tourist insurance (including
travel accident and motor vehicle
insurance for non-resident
tourists, but not insurance of
risks of liability to third
parties) for individuals,
purchased without solicitation
via physical mobility of such
individuals;
(b) (i) cargo insurance to and from
each Party, purchased
without solicitation, for
goods in international
transit from point of origin
to final destination, and
(ii) insurance purchased without
solicitation for a vehicle
during the period of its use
Annex VII(A) - Mexico
in transportation of cargo
(other than insurance of
risks of liabilities to
third parties), provided
such vehicle is licensed and
registered outside Mexico
(including vehicles in
maritime shipping,
commercial aviation, space
launching and freight
(including satellites)); and
(c) intermediary services incidental
to subparagraphs (a) and (b)
purchased without solicitation.
For greater clarity, this reservation
does not apply to reinsurance.
Phase-Out: None
Annex VII(A) - Mexico
Sector: Financial Services
Sub-Sector: Banking
Industry Classification: CMAP 811021 Development Banks
CMAP 811030 Commercial Banks
Type of Reservation: Establishment of Financial
Institutions (Article 1403) Cross-
Border Trade (Article 1404)
National Treatment (Article 1405)
Level of Government: Federal
Measures: Ley Org nica de Nacional Financiera,
Art culo 7
Ley Org nica del Banco Nacional del
Ej rcito, la Fuerza A rea y la Armada
Description: The following activities are reserved
solely to Mexican development banks:
(a) acting as custodians of
securities and cash funds
deposited by or in the
administrative or judiciary
authorities, and acting as
custodian of goods that have been
seized according to Mexican
measures; and
(b) managing the savings funds,
retirement plans and any other
funds or property of the
personnel of the Secretar a de la
Defensa Nacional, Secretar a de
Marina and the Mexican armed
forces, and performing other
financial activities pertaining
to the financial resources of
such personnel.
Phase-Out: None
Annex VII(B) - Mexico
Section B
Establishment and Operation of Financial Institutions
Type of Reservation: Establishment of Financial Institutions
(Article 1403)
National Treatment (Article 1405)
1. The provisions of paragraphs 2 through 10 of this Section
shall apply during the transition period, except as otherwise
specifically provided in paragraphs 9 and 10 of this Section.
2. For the types of financial institutions listed in the chart
in this paragraph, the maximum capital to be authorized by Mexico
for a foreign financial affiliate, measured as a percentage of
the aggregate capital of all financial institutions of the same
type in Mexico, shall not exceed the percentage set forth in the
chart in this paragraph:
Type of Financial Institution Maximum Individual Capital to
_____________________________ _____________________________
Be Authorized (Percentage of
_____________
the Aggregate Capital of All
Institutions of the Same Type)
Commercial Banks 1.5%
Securities Firms 4.0%
Insurance Companies
Casualty 1.5%
Life and Health 1.5%
In the case of an acquisition by an investor of another Party of
a financial institution established in Mexico, the sum of the
authorized capital of the acquired institution and the authorized
capital of any foreign financial affiliate already controlled by
the acquiror may not, at the time of acquisition or at any time
thereafter during the transition period, exceed the applicable
limit set forth in the chart in this paragraph.
This paragraph will not apply to new or existing Mexican
insurance companies invested in by insurance investors of another
Party (or their affiliates) pursuant to paragraph 7 of this
Section or paragraph 4 of Section C of this Schedule.
Annex VII(B) - Mexico
3. For purposes of the proper administration of the capital
limits in this Section, the following provisions shall apply:
(a) Each foreign financial affiliate shall have an
authorized capital determined by Mexico, and the paid-
in capital of such an institution shall not be less
than that authorized at the time of approval of its
establishment. After the time of establishment, Mexico
may permit authorized capital to exceed paid-in
capital. Authorized capital shall not be reduced by
any measure of Mexico (other than prudential measures)
below paid-in capital. The maximum size of the
operations of each foreign financial affiliate shall be
determined, on a national treatment basis, as a
function of the lesser of its capital or its authorized
capital.
(b) Mexico reserves the right to impose limitations on
transfers of assets or liabilities by foreign financial
affiliates that have the effect of evading the capital
limits set forth in this Schedule. This subparagraph
does not apply to bona fide transfers of funds to make
____ ____
overnight deposits or bona fide transfers of banking
____ ____
liabilities.
4. No foreign financial affiliate may issue subordinated
debentures, other than to the investor of another Party that owns
and controls the affiliate.
5. The aggregate of the authorized capital of all foreign
financial affiliates of the same type, measured as a percentage
of the aggregate capital of all financial institutions of such
type in Mexico, shall not exceed the percentage set forth in the
chart in this paragraph for that type of institution, except for
insurance companies as set out in paragraph 6 of this Section.
Beginning one year after the date of entry into force of this
Agreement, these initial limits shall increase annually in equal
increments so as to reach the final limits specified in the chart
in this paragraph at the beginning of the last year of the
transition period:
Type of Financial Institution Percentage of Total Capital
_____________________________ ___________________________
Initial Limit Final Limit
Commercial banks 8% 15%
Annex VII(B) - Mexico
Securities firms 10% 20%
Factoring companies 10% 20%
Leasing companies 10% 20%
Any capital in existence as of the date of signature of this
Agreement of a foreign bank branch established in Mexico prior to
such date shall be excluded from each of the aggregate capital
limits referred to in this Schedule.
6. The aggregate of the authorized capital of all foreign
insurance affiliates, measured as a percentage of the aggregate
capital of all insurance companies in Mexico, shall not exceed
the percentage set forth in the chart in this paragraph for the
respective one-year periods beginning on each of the following
dates:
Date Percentage of Total Capital
____
___________________________
January 1, 1994 6%
January 1, 1995 8%
January 1, 1996 9%
January 1, 1997 10%
January 1, 1998 11%
January 1, 1999 12%
If the date of entry into force of this Agreement occurs on a
date prior to January 1, 1994, that date shall become the initial
date for purposes of this chart, and each succeeding anniversary
of the date of entry into force of this Agreement shall become
the next succeeding date in this chart, with the percentages
listed in this chart applying to each of the respective periods
as so adjusted. If the date of entry into force of this
Agreement occurs on a date after January 1, 1994, the dates and
corresponding limits in this chart shall not be changed.
The individual and aggregate capital limits described in
paragraphs 2 and 6 of this Section shall be measured separately
(through separate accounting) for life and non-life insurance
operations, but both types of insurance operations may be
conducted either by a single or separate foreign financial
affiliates.
7. An insurance investor of another Party may elect an
alternative procedure for investment in Mexico through phasing-in
an equity interest in a new or existing Mexican insurance
company, and thereby exempt such Mexican company from the capital
Annex VII(B) - Mexico
limits in paragraphs 2 and 6 of this Section. In order to
qualify, the percentage of the Mexican insurance company's common
voting stock that is owned by Mexican persons must not be less
than the levels set forth in the chart in this paragraph for the
respective one-year periods beginning on each of the following
dates:
Date Mexican Interest
January 1, 1994 70%
January 1, 1995 65%
January 1, 1996 60%
January 1, 1997 55%
January 1, 1998 49%
January 1, 1999 25%
If the date of entry into force of this Agreement occurs on a
date prior to January 1, 1994, that date shall become the initial
date for purposes of this chart, and each succeeding anniversary
of the date of entry into force of this Agreement shall become
the next succeeding date in this chart, with the percentages
listed in this chart applying to each of the respective periods
as adjusted. If the date of entry into force of this Agreement
occurs on a date after January 1, 1994, the dates and
corresponding limits in this chart shall nonetheless not be
changed.
On and after January 1, 2000 (or, if the date of entry into force
of this Agreement occurs on a date prior to January 1, 1994, on
and after the sixth anniversary of such date), the percentage
requirement of Mexican ownership set forth in this paragraph
shall no longer apply.
This paragraph is further modified by paragraph 4 of Section C of
this Schedule to the extent set forth therein.
8. The aggregate assets of foreign financial affiliates that
are limited scope financial institutions within the meaning of
paragraph 2 of Section C of this Schedule shall not exceed three
percent of the sum of:
(a) the aggregate assets of all commercial banks in Mexico;
plus
(b) the aggregate assets of all types of limited scope
financial institutions in Mexico.
Annex VII(B) - Mexico
Lending by affiliates of automobile manufacturing companies with
respect to the manufacturers' vehicles shall not be subject to or
taken into account in determining compliance with this three
percent limit.
9. The limits in paragraphs 2, 5, 6 and 8 of this Section shall
be removed at the end of the transition period. If the sum of
the authorized capital of foreign financial affiliates, measured
as a percentage of the aggregate capital of all financial
institutions of such type in Mexico, reaches the percentage set
forth in the chart in this paragraph for such type of
institutions, then Mexico shall have the right, once during the
four years following the end of the transition period, to freeze
such aggregate capital percentage at its then-existing level:
Commercial banks 25%
Securities firms 30%
If applied, such a restriction will have a duration not to exceed
a period of three years.
10. Mexico may deny a license to establish a foreign financial
affiliate during the transition period (and, in the case of
paragraph 9 of this Section, during the additional periods
described in that paragraph) if after such issuance the sum of
the authorized capital of all foreign financial affiliates of the
same type would exceed the applicable percentage limit for that
type of institution in paragraph 5, 6, 8 or 9 of this Section.
11. The provisions of paragraphs 12 through 17 of this Section
shall apply immediately upon the date of entry into force of this
Agreement and at all times thereafter, except as otherwise
specifically provided in such paragraphs. Any amendment or
modification to a measure adopted or maintained pursuant to
paragraphs 12 through 15 of this Section shall not decrease the
conformity of the measure, as it existed immediately before such
amendment or modification, with Articles 1403 through 1408.
12. Mexico may require that a foreign financial affiliate (other
than a foreign insurance affiliate) be wholly-owned by an
investor of another Party. Mexico may also restrict any foreign
financial affiliate from establishing agencies, branches, or
other direct or indirect subsidiaries in the territory of any
other country.
13. Following the transition period, acquisition of a commercial
Annex VII(B) - Mexico
bank established in Mexico, or of the assets or liabilities
thereof, by an investor of another Party will only be authorized
by Mexico, subject to reasonable prudential considerations on a
case-by-case basis, if the sum of the capital of the acquired
commercial bank and the capital of any foreign commercial bank
affiliate already controlled by the acquiror would not exceed
four percent of the aggregate capital of all commercial banks in
Mexico.
14. Mexico may adopt measures that (a) limit eligibility to
establish a foreign financial affiliate in Mexico to an investor
of another Party that is, directly or through any of its
affiliates, engaged in the same general type of financial
services in the territory of the other Party; and (b) limit such
investor (together with its affiliates) to no more than one
institution of the same type in Mexico. In determining what
types of operations an investor of another Party is engaged in
for purposes of the preceding sentence, all types of insurance
shall be considered to be only one type of financial service; but
both life and non-life insurance operations may be conducted
either by a single or separate foreign financial affiliates.
Governmental Insurance Programs
Type of Reservation: Establishment of Financial Institutions
(Articles 1403)
Cross-Border Trade (Article 1404)
National Treatment (Article 1405)
15. The activities and operations of the existing Mexican
governmental insurance programs conducted by Aseguradora
Mexicana, S.A. or Aseguradora Hidalgo, S.A. (including insurance
for government employees, agencies, instrumentalities and public
entities) are excluded from Articles 1403, 1404 and 1405 for so
long as such firm is controlled by the Government of Mexico and
for a commercially reasonable time after such governmental
control ceases.
Cross-Border Trade
Type of Reservation: Cross-Border Trade (Article 1404)
16. In order to avoid impairment of the conduct of Mexico's
monetary and exchange rate policies, cross-border financial
service providers of another Party shall not be permitted to
provide financial services into the territory of Mexico or to
Annex VII(B) - Mexico
residents of Mexico, and residents of Mexico may not purchase
financial services from cross-border financial service providers
of another Party, if such transactions are denominated in Mexican
pesos.
Annex VII(B) - Mexico
Existing Operations of Foreign Commercial Banks
Type of Reservation: Establishment of Financial Institutions
(Article 1403)
National Treatment (Article 1405)
Most-Favored-Nation Treatment (Article 1406)
New Financial Services and Data Processing
(Article 1407)
Senior Management and Boards of Directors
(Article 1408)
17. The benefits of this Agreement shall not be extended to a
foreign bank branch existing in Mexico on the date of entry into
force of this Agreement. The existing legal regime will continue
to apply to such a branch for so long as it operates in that
form. Such a branch shall be permitted to convert to a
subsidiary pursuant to the terms of this Schedule, and on
conversion shall be covered by this Agreement. In the event of
conversion the existing capital of such branch on the date of
signature of this Agreement shall not be counted against such
foreign commercial bank affiliate's individual capital limit, or
the aggregate capital limits for commercial banks.
Annex VII(C) - Mexico
Section C
Specific Commitments
1. Mexico shall retain discretion to approve, on a case-by-case
basis, any affiliation of a commercial bank or securities firm
with a commercial or industrial corporation that is established
in Mexico, if Mexico determines that such affiliation is harmless
and, in the case of banking, either (a) not substantial, or (b)
the financial-related activities of the commercial or industrial
corporation account for at least 90 percent of its annual income
worldwide, and the non-financial activities of such commercial or
industrial corporation are of a type that Mexico determines to be
acceptable. Affiliation with a non-resident commercial or
industrial corporation that is not established in Mexico will not
be a reason for denial of an application to establish or acquire
a commercial bank or securities firm in Mexico.
2. Non-bank investors of another Party shall be permitted to
establish one or more limited scope financial institutions in
Mexico to provide separately consumer lending, commercial
lending, mortgage lending or credit card services on terms no
less favorable than those applied to like domestic firms under
Mexican measures. Mexico may permit lending services closely
related to the principal authorized business of a limited scope
financial institution to be carried out by that institution.
Such institutions shall be provided the opportunity to raise
funds in the securities market for business operations subject to
normal terms and conditions. Mexico may restrict such limited
scope financial institutions from taking deposits.
3. Within two years of the date of entry into force of this
Agreement, Mexico shall conduct a study of the desirability of
and, if desirable, the possible methods of establishing limited
scope securities firms which would have more limited powers than
current securities firms. Such limited scope securities firms
would be subject to differing capital requirements, depending on
the type and extent of business conducted, that would permit
lower minimum capital requirements than those currently
applicable to Mexican securities firms. The basis of the study
will be prudential considerations and opportunities for
investment in the securities sector. As part of the second
annual meeting of the Committee required under Article 1412,
Mexico shall report to the other Parties on the outcome of the
study, including any plans for the establishment of new
categories of securities firms.
Annex VII(C) - Mexico
4. Notwithstanding paragraph 7 of Section B of this Schedule,
an insurance investor of another Party that together with its
affiliates had as of July 1, 1992 an active investment or
ownership interest of 10 percent or more in a Mexican insurance
company that was specifically approved by Mexico, may: (a)
exercise any contract right or option in existence as of July 1,
1992 with respect to ownership interests in such Mexican
insurance company; and (b) effective the earlier of January 1,
1996 or two years following the date of entry into force of this
Agreement, acquire a controlling interest of up to 100 percent in
such Mexican insurance company. Before the effective date
described in clause (b) of the preceding sentence, an insurance
investor of another Party (together with its affiliates)
described in that sentence may exercise any existing contract
right or option described in clause (a) of that sentence, and
choose to expand its interest in such Mexican insurance company
to the extent consistent with paragraph 7 of Section B of this
Schedule, or maintain its existing interest. Mexico shall
maintain discretion to permit acceleration of the schedule for
equity participation in a Mexican insurance company by an
insurance investor of another Party described in the first
sentence of this paragraph.
5. An investor of another Party that in accordance with Section
B is authorized to establish or acquire, and establishes or
acquires, a commercial bank or securities firm in Mexico may also
establish a financial holding company in Mexico, and thereby
establish or acquire other types of financial institutions in
Mexico, under the terms of Mexican measures.
6. Mexico shall administer its licensing and approval
procedures during the transition period in a manner that does not
deny the benefits of the liberalization of existing measures
described in its Schedule to enterprises of another Party that
are ultimately controlled by nationals of that Party.
Definitions
For purposes of Sections B and C of this Schedule:
capital means the following, as defined in Mexican measures,
applied on a national treatment basis:
Type of Financial Institution Concept of "Capital"
Annex VII(C) - Mexico
commercial banks capital neto
securities firms capital global
insurance companies
casualty requerimiento bruto
de solvencia (allocation to
casualty insurance)
life and health requerimiento bruto
de solvencia (allocation to
life and health insurance)
factoring companies capital contable
leasing companies capital contable;
investor of another Party means an investor of another Party as
defined in Article 1403(5);
foreign commercial bank affiliate means a foreign financial
affiliate that is a commercial bank;
foreign financial affiliate means a financial institution
established in Mexico and owned and controlled by an investor of
another Party;
foreign insurance affiliate means a foreign financial affiliate
that is an insurance company;
insurance investor of another Party means an investor of another
Party that is an insurance company; and
transition period means the period beginning with the date of
entry into force of this Agreement and ending on the earlier of
January 1, 2000, or six years from the date of entry into force
of this Agreement.
Title:Annex I -- United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain CHARSET=US-ASCII
Content-Length: 51566
Annex I
Schedule of the United States
Sector: Energy
Sub-Sector: Atomic Energy
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: Atomic Energy Act of 1954, 42 U.S.C. 2011
et seq.
Description: Investment
A license is required for any person in the
United States to transfer, manufacture,
produce, use or import any facilities that
produce or use nuclear materials. Such a
license may not be issued to any entity known
or believed to be owned, controlled or
dominated by an alien, a foreign corporation
or a foreign government (42 U.S.C. 2133,
2134). The issuance of a license is also
prohibited for "production or utilization
facilities" for such uses as medical therapy
or research and development activities to any
corporation or other entity owned, controlled
or dominated by one of the foreign persons
described above (42 U.S.C. 2134(d)).
Phase-Out: None
Annex I - United States
Sector: Business Services
Sub-Sector: Export Intermediaries
Industry SIC 7389 Business Services, Not Elsewhere
Classification: Classified
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Export Trading Company Act of 1982, 15 U.S.C.
4011-4021
15 C.F.R. Part 325
Description: Cross-Border Services
Title III of the Export Trading Company Act
of 1982 authorizes the Secretary of Commerce
to issue "certificates of review" with
respect to export conduct. The Act provides
for the issuance of a certificate of review
where the Secretary determines, and the
Attorney General concurs, that the export
conduct specified in an application will not
have the anticompetitive effects proscribed
by the Act. A certificate of review limits
the liability under federal and state
antitrust laws in engaging in the export
conduct certified.
Only a "person" as defined by the Act can
apply for a certificate of review. "Person"
means "an individual who is a resident of the
United States; a partnership that is created
under and exists pursuant to the laws of any
State or of the United States; a State or
local government entity; a corporation,
whether organized as a profit or nonprofit
corporation, that is created under and exists
pursuant to the laws of any State or of the
United States; or any association or
combination, by contract or other
arrangement, between such persons."
Annex I - United States
A foreign national or enterprise may receive
the protection provided by a certificate of
review by becoming a "member" of a qualified
applicant. The regulations define "member"
to mean "an entity (U.S. or foreign) that is
seeking protection under the certificate with
the applicant. A member may be a partner in
a partnership or a joint venture; a
shareholder of a corporation; or a
participant in an association, cooperative,
or other form of profit or nonprofit
organization or relationship, by contract or
other arrangement."
Phase-Out: None
Annex I - United States
Sector: Business Services
Sub-Sector: Export Intermediaries
Industry SIC 7389 Business Services, Not Elsewhere
Classification: Classified
Type of National Treatment (Article 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: Export Administration Act of 1979, Pub. L.
96-72, as amended
Export Administration Regulations, 15 C.F.R.
Parts 768 through 799
Description: Cross-Border Services
With some limited exceptions, the export from
the United States of all commodities, and all
technical data, requires either a general
license or a validated license or other
authorization granted by the Office of Export
Licensing, U.S. Department of Commerce. A
general license requires no application or
documentation and is generally available for
use by all persons.
An application for a validated license may be
made only by a person subject to the
jurisdiction of the United States who is in
fact the exporter, or by his duly authorized
agent. An application may be made on behalf
of a person not subject to the jurisdiction
of the United States by an authorized agent
in the United States, who then becomes the
applicant.
Phase-Out: None
Annex I - United States
Sector: Communications
Sub-Sector: Telecommunications (Enhanced or Value-Added
Services)
Industry CPC 7523 Data and Message Transmission
Classification: Services
CPC 75299 Other Telecommunications Services
Not Elsewhere Classified (limited
to enhanced or value-added
services)
Type of National Treatment (Article 1102)
Reservation:
Level of Federal
Government:
Measures: F.C.C. Decision, International Communications
Policies Governing Designation of Recognized
Private Operating Agencies, 104 F.C.C. 2d
208, n. 123, n. 126 (1986)
47 C.F.R. 64.702 (definition of enhanced or
value-added services)
Description: Investment
If a U.S.-based foreign-owned enhanced
service provider obtains voluntary Recognized
Private Operating Agency certification from
the U.S. Department of State for purposes of
negotiating operating agreements with
governments other than the U.S. Government,
it must submit copies of all operating
agreements granted to it by foreign
governments and evidence of any refusal of a
foreign government to grant it an operating
agreement. For purposes of this rule, a
service provider is generally considered to
be "foreign owned" if 20 percent or more of
its stock is owned by persons who are not
U.S. citizens.
Phase-Out: None
Annex I - United States
Sector: Manufacturing
Sub-Sector: Agricultural Chemicals
Industry SIC 2879 Pesticides and Agricultural
Classification: Chemicals, Not Elsewhere Classified
Type of National Treatment (Article 1102)
Reservation:
Measures: Federal Insecticide, Fungicide, and
Rodenticide Act, 7 U.S.C. 136 et seq.
Description: Investment
The Administrator of the Environmental
Protection Agency may not knowingly disclose
information submitted by an applicant or
registrant under the Federal Insecticide,
Fungicide, and Rodenticide Act, without
consent, to any foreign or multinational
business or entity, or any employee or agent
of such business or entity, engaged in the
production, sale or distribution of
pesticides in countries other than the United
States or to any person who intends to
deliver such data to that business, entity,
employee or agent (7 U.S.C. 136h(g)).
Phase-Out: None
Annex I - United States
Sector: Mining
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Level of Federal
Government:
Measures: Mineral Lands Leasing Act of 1920, 30 U.S.C.
Chapter 3A
43 C.F.R. 3102
43 C.F.R. 2882.2-1
10 U.S.C. 7435
Description: Investment
Under the Mineral Lands Leasing Act of 1920,
aliens and foreign corporations may not
acquire rights-of-way for oil or gas
pipelines, or pipelines carrying products
refined from oil and gas, across on-shore
federal lands or acquire leases or interests
in certain minerals on on-shore federal
lands, such as coal or oil. Non-U.S.
citizens may own a 100 percent interest in a
domestic corporation that acquires a right-
of-way for oil or gas pipelines across on-
shore federal lands, or that acquires a lease
to develop mineral resources on on-shore
federal lands, unless the foreign investor's
home country denies similar or like
privileges for the mineral or access in
question to U.S. citizens or corporations, as
compared with the privileges it accords to
its own citizens or corporations or to the
citizens or corporations of other countries
(30 U.S.C. 181, 185(a)).
Nationalization is not considered to be
Annex I - United States
denial of similar or like privileges.
Foreign citizens, or corporations controlled
by them, are restricted from obtaining access
to federal leases on Naval Petroleum Reserves
if the laws, customs or regulations of their
country deny the privilege of leasing public
lands to citizens or corporations of the
United States (10 U.S.C. 7435).
Phase-Out: None
Annex I - United States
Sector: Professional Services
Sub-Sector: Patent Attorneys and Patent Agents and other
Practice before the Patent and Trademark
Office
Industry SIC 7389 Business Services, Not Elsewhere
Classification: Classified
SIC 8111 Legal Services
Type of National Treatment (Article 1202)
Reservation: Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)
Level of Federal
Government:
Measures: 35 U.S.C. Chapter 3 (practice before the U.S.
Patent and Trademark Office)
37 C.F.R. Part 10 (representation of others
before the U.S. Patent and Trademark Office)
Description: Cross-Border Services
As a condition to be registered to practice
for others before the U.S. Patent and
Trademark Office (USPTO):
(a) a patent attorney must be a U.S. citizen
or an alien lawfully residing in the
United States (37 C.F.R. 10.6(a));
(b) a patent agent must be a U.S. citizen,
an alien lawfully residing in the United
States or a non-resident who is
registered to practice in a country that
permits patent agents registered to
practice before the USPTO to practice in
that country (37 C.F.R. 10.6(c)); and
(c) a practitioner in trademark and non-
patent cases must be an attorney
licensed in the United States, a
"grandfathered" agent, an attorney
licensed to practice in a country that
accords equivalent treatment to
Annex I - United States
attorneys licensed in the United States,
or an agent registered to practice in
such a country (37 C.F.R. 10.14(a)-
(c)).
Phase-Out: Citizenship and permanent residency
requirements are subject to removal within
two years of the date of entry into force of
this Agreement in accordance with Article
1210(3).
Annex I - United States
Sector: Public Administration
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Level of Federal
Government:
Measures: 22 U.S.C. 2194(a) and (b) and 2198(c)
Description: Investment
The Overseas Private Investment Corporation
insurance and loan guarantees are not
available to certain aliens, foreign
enterprises or foreign-controlled domestic
enterprises.
Phase-Out: None
Annex I - United States
_
Sector: Transportation
Sub-Sector: Air Transportation
Industry SIC 3721 Aircraft Repair and Rebuilding on
a
Classification: Factory Basis
SIC 4581 Aircraft Repair (Except on a
Factory Basis)
Type of Most-Favored-Nation Treatment (Article 1203)
Reservation:
Level of Federal
Government:
Measures: 49 U.S.C. App. 1354, 1421-1430
14 C.F.R. 43 and 145
Agreement Concerning Airworthiness
Certification, Exchange of Letters between
the United States and Canada dated August 31,
1984, TIAS 11023, as amended
Description: Cross-Border Services
For aircraft repair, overhaul or maintenance
activities performed outside the territory of
the United States, during which an aircraft
is withdrawn from service, U.S. measures
require that, in order to perform work on
U.S.-registered aircraft, foreign air repair
stations must be certified by the Federal
Aviation Administration with continuing
oversight provided by the Federal Aviation
Administration.
Pursuant to an airworthiness agreement
between the United States and Canada, the
United States recognizes the certifications
and oversight provided by Canada for all
repair and maintenance facilities and
individuals performing the work located in
Canada.
Phase-Out: None
Annex I - United States
Sector: Transportation
Sub-Sector: Air Transportation
Industry SIC 4512 Air Transportation Scheduled
Classification: SIC 4513 Air Courier Services
SIC 4522 Air Transportation Non-scheduled
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Measures: Federal Aviation Act of 1958, 49 U.S.C. App.
Ch. 20
Description: Investment
Only air carriers that are "citizens of the
United States" may operate aircraft in
domestic air service (cabotage) and may
provide international scheduled and non-
scheduled air service as U.S. air carriers.
U.S. citizens also have blanket authority to
engage in indirect air transportation
activities (air freight forwarding and
charter activities other than as actual
operators of the aircraft). In order to
conduct such activities, non-U.S. citizens
must obtain authority from the Department of
Transportation. Applications for such
authority may be rejected for reasons
relating to the failure of effective
reciprocity, or if the Department of
Transportation finds that it is in the public
interest to do so.
Under the Federal Aviation Act of 1958, a
"citizen of the United States" means:
(a) an individual who is a U.S. citizen;
Annex I - United States
(b) a partnership in which each member is a
U.S. citizen; or
(c) a U.S. corporation of which the
president and at least two-thirds of the
board of directors and other managing
officers are U.S. citizens, and at least
75 percent of the voting interest in the
corporation is owned or controlled by
U.S. citizens (49 U.S.C. App.
1301(16)).
In addition, this statutory requirement has
historically been interpreted by the
Department of Transportation (and the Civil
Aeronautics Board before it) to require that
an air carrier in fact be under the actual
control of U.S. citizens. The Department of
Transportation makes this determination on a
case-by-case basis, and has provided guidance
as to certain lines of demarcation. For
example, total foreign equity investment of
up to 49 percent (with a maximum of 25
percent being voting stock), by itself, is
not construed as indicative of foreign
control. See Department of Transportation
Order 91-1-41, January 23, 1991.
Phase-Out: None
Annex I - United States
Sector: Transportation
Sub-Sector: Air Transportation
Industry SIC 0721 Crop Planting, Cultivating, and
Classification: Protecting (limited to aerial
dusting and spraying, dusting
crops, with or without fertilizing,
spraying crops, with or without
fertilizing)
SIC 0851 Forestry Services (limited to
aerial fire fighting)
SIC 4522 Air Transportation, Nonscheduled
(limited to air taxi services,
sightseeing airplane services)
SIC 7319 Advertising, Not Elsewhere
Classified (limited to aerial
advertising, sky writing)
SIC 7335 Commercial Photography (limited to
aerial photographic service, except
mapmaking)
SIC 7389 Business Services, Not Elsewhere
Classified (limited to mapmaking,
including aerial; pipeline and
powerline inspection services; and
firefighting service, other than
forestry)
SIC 7997 Membership Sports & Recreation
Clubs (limited to aviation clubs,
membership)
SIC 8299 Schools & Education Services, Not
Elsewhere Classified (limited to
flying instruction)
SIC 8713 Surveying Services (limited to
aerial surveying)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Level of Federal
Government:
Annex I - United States
Measures: Federal Aviation Act of 1958, 49 U.S.C. App.
Ch. 20
14 C.F.R. 375
As qualified by paragraph 2 of the
Description element
Annex I - United States
Description: Cross-Border Services
1. Authorization from the Department of
Transportation is required for the provision
of specialty air services in the territory of
the United States. A person of Canada or
Mexico that provides aerial construction,
heli-logging, aerial sightseeing, flight
training, aerial inspection and surveillance
and aerial spraying services may not be
authorized to provide those services if there
is inadequate reciprocity on the part of the
country of the applicant, or if approval
would otherwise not be in the public
interest.
2. A person of Mexico or Canada may obtain
such authorization to provide, subject to
compliance by that person with U.S. safety
regulations, aerial mapping, aerial
surveying, aerial photography, forest fire
management, fire fighting, aerial
advertising, glider towing and parachute
jumping.
Investment
3. "Foreign civil aircraft" require
authority from the Department of
Transportation to conduct specialty air
services in the territory of the United
States. "Foreign civil aircraft" are
aircraft of foreign registry or aircraft of
U.S. registry that are owned, controlled or
operated by persons who are not citizens or
permanent residents of the Unites States (14
C.F.R. 375.1). Under the Federal Aviation
Act of 1958, a "citizen of the United States"
means:
(a) an individual who is a U.S. citizen;
(b) a partnership in which each member is a
U.S. citizen; or
(c) a U.S. corporation of which the
president and at least two-thirds of the
Annex I - United States
board of directors and other managing
officers are U.S. citizens, and at least
seventy-five percent of the voting
interest in the corporation is owned or
controlled by U.S. citizens (49 U.S.C.
App. 1301(16)).
In addition, this statutory requirement has
historically been interpreted by the
Department of Transportation (and the Civil
Aeronautics Board before it) to require that
an air carrier in fact be under the actual
control of U.S. citizens. The Department of
Transportation makes this determination on a
case-by-case basis, and has provided guidance
as to certain lines of demarcation. For
example, total foreign equity investment of
up to 49 percent (with a maximum of 25
percent being voting stock), by itself, is
not construed as indicative of foreign
control. See Department of Transportation
Order 91-1-41, January 23, 1991.
Phase-Out: Cross-Border Services
A person of Canada or Mexico will be
permitted to obtain, subject to compliance
with U.S. safety requirements, authorization
to provide the following specialty air
services in the territory of the United
States:
(a) two years after the date of entry into
force of this Agreement, aerial
construction and heli-logging;
(b) three years after the date of entry into
force of this Agreement, aerial
sightseeing, flight training and aerial
inspection and surveillance services;
and
(c) six years after the date of entry into
force of this Agreement, aerial spraying
services.
Investment
Annex I - United States
None
Annex I - United States
Sector: Transportation
Sub-Sector: Land Transportation
Industry SIC 4213 Trucking, Except Local
Classification: SIC 4215 Courier Services, Except by Air
SIC 4131 Intercity and Rural Bus
Transportation
SIC 4142 Bus Charter Service, Except Local
SIC 4151 School Buses (limited to interstate
transportation not related to
school activity)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Level of Federal
Government:
Measures: 49 U.S.C. 10922(l)(1) and (2)
49 U.S.C. 10530(3)
49 U.S.C. 10329, 10330 and 11705
19 U.S.C. 1202
49 C.F.R. 1044
Memorandum of Understanding Between the
United States of America and the United
Mexican States on Facilitation of
Charter/Tour Bus Service, December 3, 1990
As qualified by paragraph 2 of the
Description element
Annex I - United States
Description: Cross-Border Services
1. Operating authority from the Interstate
Commerce Commission (ICC) is required to
provide interstate or cross-border bus or
truck services in the territory of the United
States. A moratorium remains in place on new
grants of operating authority for persons of
Mexico.
2. The moratorium does not apply to the
provision of cross-border charter or tour bus
services.
3. Under the moratorium, persons of Mexico
without operating authority may operate only
within ICC Border Commercial Zones, for which
ICC operating authority is not required.
Persons of Mexico providing truck services,
including for hire, private, and exempt
services, without operating authority are
required to obtain a certificate of
registration from the ICC to enter the United
States and operate to or from the ICC Border
Commercial Zones. Persons of Mexico
providing bus services are not required to
obtain an ICC certificate of registration to
provide these services to or from the ICC
Border Commercial Zones.
4. Only persons of the United States, using
U.S.-registered and either U.S.-built or
duty-paid trucks or buses, may provide truck
or bus service between points in the
territory of the United States.
Investment
5. The moratorium has the effect of being
an investment restriction because enterprises
of the United States providing bus or truck
services that are owned or controlled by
persons of Mexico may not obtain ICC
operating authority.
Annex I - United States
Phase-Out: Cross-Border Services
A person of Mexico will be permitted to
obtain operating authority to provide:
(a) three years after the date of signature
of this Agreement, cross-border truck
services to or from border states
(California, Arizona, New Mexico and
Texas), and such persons will be
permitted to enter and depart the
territory of United States through
different ports of entry;
(b) three years after the date of entry into
force of this Agreement, cross-border
scheduled bus services; and
(c) six years after the date of entry into
force of this Agreement, cross-border
truck services.
Investment
A person of Mexico will be permitted to
establish an enterprise in the United States
to provide:
(a) three years after the date of signature
of this Agreement, truck services for
the transportation of international
cargo between points in the United
States; and
(b) seven years after the date of entry into
force of this Agreement, bus services
between points in the United States.
The moratorium will remain in place on grants
of authority for the provision of truck
services by persons of Mexico between points
in the United States for the transportation
of goods other than international cargo.
Annex I - United States
Sector: Transportation Services
Sub-Sector: Customs Brokers
Industry SIC 4731 Arrangement of Transportation of
Classification: Freight and Cargo
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Level of Federal
Government:
Measures: 19 U.S.C. 1641(b)
Description: Cross-Border Services and Investment
A customs broker's license is required to
conduct customs business on behalf of another
person. Only U.S. citizens may obtain such
a
license. A corporation, association or
partnership established under the law of any
state may receive a customs broker's license
if at least one officer of the corporation or
association, or one member of the
partnership, holds a valid customs broker's
license.
Phase-Out: None. Subject to discussion by the Parties
five years after the date of entry into
force.
Annex I - United States
Sector: All Sectors
Sub-Sector:
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Level of Federal
Government:
Measures: Securities Act of 1933, 15 U.S.C. 77C(b),
77f, 77g, 77h, 77j and 77s(a)
17 C.F.R. 230.251 and 230.405
Securities Exchange Act of 1934, 15 U.S.C.
78l, 78m, 78o(d) and 78w(a)
17 C.F.R. 240.12b-2
Description: Investment
Foreign firms, except for certain Canadian
issuers, may not use the small business
registration forms under the Securities Act
of 1933 to register securities that the firms
issue or qualify to use the less costly
standards under the rules.
Phase-Out: None
Annex I - United States
Sector: Waste Management
Sub-Sector:
Industry SIC 4952 Sewerage System
Classification:
Type of Performance Requirements (Article 1106)
Reservation:
Level of Federal
Government:
Measures: Clean Water Act, 33 U.S.C. 1251 et seq.
Description: Investment
The Clean Water Act authorizes grants for the
construction of treatment plants for
municipal sewage or industrial waste. Grant
recipients may be privately-owned
enterprises. The Act provides that grants
shall be made for treatment works only if
such articles, materials and supplies as have
been manufactured, mined or produced in the
United States will be used in the treatment
works. The Administrator of the
Environmental Protection Agency has authority
not to apply this provision, for example, if
the cost of the articles in question is
unreasonable (33 U.S.C. 1295).
Phase-Out: None
Title:Annex II -- Schedule of United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:28125
Annex II
Schedule of United States
Sector: All Sectors
Sub-Sector:
Industry
Classification:
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Description: Investment
The United States reserves the right to adopt
or maintain any measure relating to residency
requirements for the ownership by investors
of Canada, or their investments, of
oceanfront land.
Existing Measures:
Annex II - United States
Sector: Communications
Sub-Sector: Cable Television
Industry CPC 753 Radio and Television Cable Services
Classification:
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Description: Investment
Subject to Article 2106, the United States
reserves the right to adopt or maintain any
measure that accords equivalent treatment to
persons of any country that limits ownership
by persons of the United States in an
enterprise engaged in the operation of a
cable television system in that country.
Existing Measures:
Annex II - United States
Sector: Communications
Sub-Sector: Telecommunications Transport Networks and
Services and Radiocommunications
Industry CPC 752 Telecommunications Services (not
Classification: including enhanced or value-added
services)
CPC 7543 Connection Services
CPC 7549 Other Telecommunications Services
Not Elsewhere Classified (limited
to telecommunications transport
networks and services)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
The United States reserves the right to adopt
or maintain any measure relating to
investment in, or the provision of,
telecommunications transport networks,
telecommunications transport services or
radiocommunications. These measures may
apply to such matters as market entry,
spectrum assignment, tariffs, intercarrier
agreements, terms and conditions of service,
and interconnection between networks and
services. Telecommunications transport
services typically involve the real-time
transmission of customer-supplied information
between two or more points without end-to-end
change in the form or content of the
customer's information, whether or not such
services are offered to the public generally.
These services include voice and data
services provided by any electromagnetic
means. Radiocommunications include all
communications by radio, including
Annex II - United States
broadcasting. This reservation does not
apply to measures relating to enhanced or
value-added services or to the production,
sale or licensing of radio or television
programming.
Existing Measures: Communications Act of 1934, 47 U.S.C. 151
et seq., see particularly 310(a), (b)
(radio licenses for common carrier,
aeronautical en route, aeronautical fixed,
and broadcasting services)
F.C.C. Decision, International Competitive
Carrier, 102 F.C.C. 2d 812 (1985), as
modified in Regulation of International
Common Carrier Services, CC Docket No. 91-
360, FCC 92-463 (released November 6, 1992)
Submarine Cable Landing Act, 47 U.S.C. 34-
9, see particularly 35 (undersea cables)
Communications Satellite Act of 1962, 47
U.S.C. 701-57
Telegraph Act, 47 U.S.C. 17 (telegraph
cables serving Alaska)
Children's Television Act of 1990, 47 U.S.C.
303a
Television Program Improvement Act of 1990,
47 U.S.C. 303c
Annex II - United States
Sector: Social Services
Sub-Sector:
Industry
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
The United States reserves the right to adopt
or maintain any measure with respect to the
provision of public law enforcement and
correctional services, and the following
services to the extent they are social
services established or maintained for a
public purpose: income security or
insurance, social security or insurance,
social welfare, public education, public
training, health, and child care.
Existing Measures:
Annex II - United States
Sector: Minority Affairs
Sub-Sector:
Industry Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Local Presence (Article 1205)
Performance Requirements (Article 1106)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
The United States reserves the right to adopt
or maintain any measure according rights or
preferences to socially or economically
disadvantaged minorities, including
corporations organized under the laws of the
State of Alaska in accordance with the Alaska
Native Claims Settlement Act.
Existing Measures: Alaska Native Claims Settlement Act, 43
U.S.C. 1601 et seq.
Annex II - United States
Sector: Professional Services
Sub-Sector: Legal Services
Industry SIC 8111 Legal Services
Classification:
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
Subject to Schedule of the United States,
Annex VI, page
VI-U-2, the United States reserves the right
to adopt or maintain any measure relating to
the provision of legal services, including
foreign legal consultancy services, by
persons of Mexico.
Existing Measures:
Annex II - United States
Sector: Publishing
Sub-Sector: Newspaper Publishing
Industry SIC 2711 Newspapers: Publishing, or
Classification: Publishing and Printing
Type of National Treatment (Article 1102)
Reservation: Most-Favored-Nation Treatment (Article 1103)
Description: Investment
Subject to Article 2106, the United States
reserves the right to adopt or maintain any
measure that accords equivalent treatment to
persons of any country that limits ownership
by persons of the United States in an
enterprise engaged in the publication of
daily newspapers primarily written for
audiences and distributed in that country.
For purposes of this reservation, daily
newspapers are newspapers published at least
five days each week.
Existing Measures:
Annex II - United States
Sector: Transportation
Sub-Sector: Water Transportation
Industry SIC 091 Commercial Fishing (limited to
Classification: fishing vessels and fishing
operations within the Exclusive
Economic Zone)
SIC 1629 Heavy Construction, Not Elsewhere
Classified (limited to marine
dredging)
SIC 4412 Deep Sea Foreign Transportation of
Freight (limited to promotional
programs for U.S.-flagged vessels)
SIC 4424 Deep Sea Domestic Transportation of
Freight (includes coastwise
transportation of freight, deep sea
domestic freight transportation,
intercoastal transportation of
freight, water transportation of
freight to noncontiguous
territories)
SIC 4432 Freight Transportation on the Great
Lakes and St. Lawrence Seaway
SIC 4449 Water Transportation of Freight,
Not Elsewhere Classified (includes
canal barge operations, canal
freight transportation,
intracoastal freight
transportation, lake freight
transportation except on the Great
Lakes, log rafting and towing,
river freight transportation except
on the St. Lawrence Seaway,
transportation of freight on bays
and sounds of the oceans)
SIC 4481 Deep Sea Transportation of
Passengers, Except by Ferry
(limited to promotional programs
for U.S.-flagged vessels)
SIC 4482 Ferries
SIC 4489 Water Transportation of Passengers,
Not Elsewhere Classified (includes
airboats, swamp buggy rides,
excursion boat operations,
Annex II - United States
passenger water transportation on
rivers and canals, sightseeing
boats, water taxis)
SIC 4491 Marine Cargo Handling (limited to
crew activities aboard vessels
transporting supplies and cargo
within U.S. territorial waters and
longshore work performed by crew
affected by reciprocity
restrictions)
SIC 4492 Towing and Tugboat Services
SIC 4499 Water Transportation Services, Not
Elsewhere Classified (limited to
cargo salvaging, chartering of
commercial boats, lighterage,
bunkering, marine salvage,
pilotage, steamship leasing, cable
laying)
Type of National Treatment (Articles 1102, 1202)
Reservation: Most-Favored-Nation Treatment (Articles 1103,
1203)
Local Presence (Article 1205)
Performance Requirements (Article 1106)
Senior Management and Boards of Directors
(Article 1107)
Description: Cross-Border Services and Investment
The United States reserves the right to adopt
or maintain any measure relating to the
provision of maritime transportation services
and the operation of U.S.-flagged vessels,
including the following:
(a) requirements for investment in,
ownership and control of, and operation
of vessels and other marine structures,
including drill rigs, in maritime
cabotage services, including maritime
cabotage services performed in the
domestic offshore trades, the coastwise
trades, U.S. territorial waters, waters
above the continental shelf and in the
inland waterways;
Annex II - United States
(b) requirements for investment in,
ownership and control of, and operation
of U.S.-flagged vessels in foreign
trades;
(c) requirements for investment in,
ownership or control of, and operation
of vessels engaged in fishing and
related activities in U.S. territorial
waters and the Exclusive Economic Zone;
(d) requirements related to documenting a
vessel under the U.S. flag;
(e) promotional programs, including tax
benefits, available for shipowners,
operators and vessels meeting certain
requirements;
(f) certification, licensing and citizenship
requirements for crew members on
U.S.-flagged vessels;
(g) manning requirements for U.S.-flagged
vessels;
(h) all matters under the jurisdiction of
the Federal Maritime Commission;
(i) negotiation and implementation of
bilateral and other international
maritime agreements and understandings;
(j) limitations on longshore work performed
by crew members;
(k) tonnage duties and light money
assessments for entering U.S. waters;
and
(l) certification, licensing and citizenship
requirements for pilots performing
pilotage services in U.S. territorial
waters.
Annex II - United States
The following activities are not included in
this reservation:
(a) vessel construction and repair; and
(b) landside aspects of port activities,
including operation and maintenance of
docks, loading and unloading of vessels
directly to or from land, marine cargo
handling, operation and maintenance of
piers, ship cleaning, stevedoring,
transfer of cargo between vessels and
trucks, trains, pipelines and wharves,
waterfront terminal operations, boat
cleaning, canal operation, dismantling
of vessels, operation of marine railways
for drydocking, marine surveyors, except
cargo, marine wrecking of vessels for
scrap and ship classification societies.
Existing Measures: Merchant Marine Act of 1920, 19 and 27, 46
App. U.S.C. 876 and 883 et seq.
Jones Act Waiver Statute, 64 Stat 1120, 46
U.S.C. App., note preceding Section 1
Shipping Act of 1916, 46 U.S.C. App. 802
and 808
Merchant Marine Act of 1936, 46 U.S.C. App.
1151 et seq., 1160-61, 1171 et seq.,
1241(b), 1241-1, 1244, and 1271 et seq.
Merchant Ship Sales Act of 1946, 50 U.S.C.
App. 1738
46 App. U.S.C. 121, 292 and 316
46 U.S.C. 12101 et seq. and 31301 et seq.
46 U.S.C. 8904 and 31328(2)
Passenger Vessel Act, 46 App. U.S.C. 289
Annex II - United States
42 U.S.C. 9601 et seq.; 33 U.S.C. 2701 et
seq.; 33 U.S.C. 1251 et seq.
46 U.S.C. 3301 et seq., 3701 et seq., 8103
and 12107(b)
Shipping Act of 1984, 46 App. U.S.C. 1708
and 1712
Nicholson Act, 46 App. U.S.C. 251
Commercial Fishing Industry Vessel
Anti-Reflagging Act of 1987, 46 U.S.C. 2101
and 46 U.S.C. 12108
43 U.S.C. 1841
22 U.S.C. 1980
Intercoastal Shipping Act, 46 U.S.C. App.
843
46 U.S.C. 9302, 46 U.S.C. 8502; Agreement
Governing the Operation of Pilotage on the
Great Lakes, Exchange of Notes at Ottawa,
August 23, 1978, and March 29, 1979, TIAS
9445
Magnuson Fishery Conservation and Management
Act, 16 U.S.C. 1801 et seq.
19 U.S.C. 1466
North Pacific Anadramous Stocks Convention
Act of 1972, P.L. 102-587; Oceans Act of
1992, Title VII
Tuna Convention Act, 16 U.S.C. 951 et seq.
South Pacific Tuna Act of 1988, 16 U.S.C.
973 et seq.
Northern Pacific Halibut Act of 1982, 16
U.S.C. 773 et seq.
Annex II - United States
Atlantic Tunas Convention Act, 16 U.S.C.
971 et seq.
Antarctic Marine Living Resources Convention
Act of 1984, 16 U.S.C. 2431 et seq.
Pacific Salmon Treaty Act of 1985, 16 U.S.C.
3631 et seq.
Title:Annex IV -- Schedule of the United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:2096
Annex IV
Schedule of the United States
The United States takes an exception to Article 1103 for
treatment accorded under all bilateral or multilateral
international agreements in force or signed prior to the date
of entry into force of this Agreement.
For international agreements in force or signed after the
date of entry into force of this Agreement, the United States
takes an exception to Article 1103 for treatment accorded under
those agreements involving:
(a) aviation;
(b) fisheries;
(c) maritime matters, including salvage; or
(d) telecommunications transport networks and
telecommunications transport services (this exception
does not apply to measures covered by Chapter
Thirteen (Telecommunications) or the production, sale
or licensing of radio or television programming).
With respect to state measures not yet set out in Annex I
pursuant to Article 1108(2), the United States takes an
exception to Article 1103 for international agreements signed
within two years of the date of entry into force of this
Agreement.
For greater certainty, Article 1103 does not apply to any
current or future foreign aid program to promote economic
development, such as those governed by the Energy Economic
Cooperation Program with Central America and the Caribbean
(Pacto de San Jos ) and the OECD Agreement on Export Credits.
Title:Annex V -- Schedule of United State
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:17641
Annex V
Schedule of United States
Sector: Communications
Sub-Sector: Telecommunications (Radiocommunications)
Industry CPC 752 Telecommunications Services
Classification:
Level of Federal
Government:
Measures: Communications Act of 1934, 47 U.S.C. 151
et seq.
Description: Any person wishing to engage in
communications by radio within the United
States and between the United States and
points outside the United States must obtain
a license from the Federal Communications
Commission (FCC) for the use, but not the
ownership, of all channels of
radiocommunications.
Such a license shall not be construed to
create any right beyond the terms, conditions
and periods of the license.
The Communications Act of 1934 requires the
FCC, in granting radio station licenses, to
determine if such a license would serve the
public interest, convenience and necessity
and empowers the FCC to impose conditions
pursuant to this determination. The FCC must
deny applications for radio licenses where it
is unable to find that such grant would serve
the public interest, convenience and
necessity.
Annex V - United States
Sector: Communications
Sub-Sector: Cable Television Services
Industry CPC 753 Radio and Television Cable Services
Classification:
Level of Federal
Government:
Measures: Communications Act of 1934, 47 U.S.C. 151
et seq.
Federal Communications Commission Rules,
76.501, 74.931(e)(5), 63.54 and 21.912
The Cable Television Consumer Protection and
Competition Act of 1992, Pub. L. No. 102-385,
106 Stat. 1460 (1992)
47 C.F.R. 76.501, 74.931(e)(5), 63.54 and
21.912
Description: A cable television system is not allowed to
carry any television broadcast signal if the
cable system owns, operates, controls or has
an interest in a television broadcast station
whose Grade B contour overlaps the service
area of such cable system
( 76.501(a)).
A cable television system may directly or
indirectly own, operate, control or have an
interest in a national television network,
such as ABC, CBS or NBC, only if such system
does not pass more than:
(a) 10 percent of homes passed on a
nationwide basis when aggregated with
all other cable systems in which the
network holds such a cognizable
interest; and
(b) 50 percent of homes passed within any
one Arbitron Area of Dominant Influence
Annex V - United States
(ADI), except that a cable television
system facing a competing system will
not be counted toward this 50 percent
limit ( 76.501(b)).
A cable television company may not lease
excess transmission time or capacity from a
licensee of an Instructional Television Fixed
Service (ITFS) station (television services
intended for use in educational institutions)
if the ITFS station is located within 20
miles of that cable television company's
franchise area
( 74.931(e)(5)).
A telephone common carrier may not engage in
the provision (for example, ownership,
control or production) of video programming
directly to the viewing public in its
telephone service area, but may distribute
such programming on a common carrier basis
and may only have up to a five percent non-
controlling financial interest in video
programmers ( 63.54(a) and (e)).
A telephone common carrier may not provide
channels of communications or pole line
conduit space, or other rental arrangements
to any entity that is directly or indirectly
owned, operated or controlled by, or under
common control with, such telephone common
carrier, where such facilities or
arrangements are to be used for, or in
connection with, the provision of video
programming to the viewing public in the
telephone service area of the telephone
common carrier ( 63.54(b)).
A telephone common carrier may not acquire
cable facilities in its service area and use
those facilities to provide video dialtone
services or to engage in activities related
to the provision of video programming
directly to subscribers ( 63.54(d)(3)).
Annex V - United States
In cable television franchise areas served by
a single cable operator, that operator may
not be authorized to use frequencies assigned
to the Multichannel Multipoint Distribution
Service (MMDS) (the 2150-2165 MHz and 2596-
2644 MHz bands), if a portion of an MMDS
station's protected service area lies within
that cable television operator's franchise
area ( 21.912).
A cable operator may not hold a license for
multichannel multipoint distribution or
satellite master antenna television service,
apart from the franchised service, in the
same area in which it holds a cable system
franchise (The Cable Television Consumer
Protection and Competition Act of 1992 ("1992
Cable Act"), section 11).
A cable operator may not set or otherwise
transfer its ownership in a cable system
within three years following the acquisition
or initial construction of such system (1992
Cable Act, section 13).
Annex V - United States
Sector: Energy
Sub-Sector: Natural Gas Transportation
Industry SIC 4922 Natural Gas Transmission
Classification: SIC 4923 Natural Gas Transmission and
Distribution
SIC 4924 Natural Gas Distribution
Measures: 15 U.S.C. 717f
18 C.F.R. 157
Description: A natural gas company, or a person that will
be a natural gas company upon completion of
proposed construction or extension of
transportation facilities, is required to
obtain a certificate of public convenience
and necessity to construct, extend, acquire
or operate such facilities. In addition, a
certificate is required to transport or sell
for resale natural gas in interstate
commerce.
The Federal Energy Regulatory Commission
(FERC) is required to hold hearings on
applications for permanent certificates and
to give interested persons notice of such
hearings. Notices of applications are
published in the Federal Register.
The FERC does not require a certificate of
public convenience and necessity for certain
replacement construction, maintenance,
emergency facilities, auxiliary installations
and certain types of taps.
Natural gas services for drilling oil wells
or for testing or purging new natural gas
pipeline facilities are exempt from the
certificate requirement.
Certain "emergency" sales, transportation or
exchanges are exempt from the certificate
requirement. Where a certificate is
required, the FERC may grant a temporary
certificate for sale or transportation in
emergency circumstances, pending the
Annex V - United States
determination on a permanent certificate.
Annex V - United States
Sector: Postal Services
Sub-Sector:
Industry SIC 4311 United States Postal Service
Classification:
Level of Federal
Government:
Measures: 39 U.S.C. 401 et seq.
18 U.S.C. 1693
39 C.F.R. 310 and 320
Description: The U.S. Postal Service is generally
authorized to "receive, transmit, and deliver
throughout the United States, its territories
and possessions . . . written and printed
matter, parcels and like materials." The
Postal Service also has the exclusive
authority to "provide and sell postage
stamps."
A carrier other than the U.S. Postal Service
may carry letters if, among other things,
each letter is enclosed in an envelope,
proper postage has been paid in stamps, the
stamp is canceled by the sender and the
carrier endorses the envelope.
The postal regulations define "letters" to
exclude telegrams, books and magazines, and
other materials. The regulations also permit
letters to be carried accompanying cargo, by
the sender, by others without compensation
and by special messengers. The Postal
Service has suspended its regulations with
respect to private "express mail" services.
Annex V - United States
Sector: Recreation
Sub-Sector: National Parks Concessions
Industry SIC 7999 Amusement and Recreation Services,
Classification: Not Elsewhere Classified
Level of Federal
Government:
Measures: 16 U.S.C. 20 and 20a
Description: A concession is required to operate hotels,
restaurants, gift shops, snack bars,
equipment rentals, horseback riding services,
guide services, fishing guide services,
mountain climbing services, bus
transportation and other services in U.S.
national parks. The National Park Service
regulates all aspects of these services,
including building specifications, rates for
the services, and hours of operation.
The National Park Service awards concessions
only where they are determined to be
"necessary and appropriate". In developing
its plans for the operation of a national
park, the Park Service determines what
operations, including concessions, are
"necessary and appropriate". As a result of
this determination, the Park Service may
determine that a given concession is not
needed.
Title:Annex VI -- Schedule of United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6807
Annex VI
Schedule of United States
Sector: Communications
Sub-Sector: Broadcasting
Industry CPC 7524 Program Transmission Services
Classification:
Level of Federal
Government:
Measures: Communications Act of 1934, 47 U.S.C. 309,
325
Description: The United States will ensure that in
considering applications for a grant of
authority to transmit programming to foreign
stations for retransmission into the United
States under section 325 of the
Communications Act of 1934 ("the Act"), the
Federal Communications Commission (FCC) will
not consider the nationality of the affected
stations for the purpose of favoring a U.S.
station that is competing with a Mexican
station for affiliation with a U.S.
programmer. Rather, the FCC will apply the
criteria for the grant of such a permit in
the same manner as they would be applied to
a
domestic broadcast station application under
section 309 of the Act.
In addition, the term of the section 325
permit shall be extended from one year to
five years in all situations where it can be
assured that the retransmitting station is
and will be in full compliance with
applicable treaties. In assessing the public
interest, convenience and necessity required
by the Act for the grant of authorization
under section 325, the primary criterion will
be avoiding the creation or maintenance of
electrical interference to U.S. broadcast
stations that violates applicable treaty
provisions. In evaluating this and any other
Annex VI - United States
criterion permitted under section 309, the
United States will ensure that the section
325 process is not conducted in a manner that
would constitute an unnecessary restriction
on trade.
Annex VI - United States
Sector: Professional Services
Sub-Sector: Legal Services
Industry SIC 8111 Legal Services
Classification:
Level of State
Government:
Measures: Alaska Bar R. 44.1
California R. Ct. 988
Connecticut Pract. Book 24A
D.C. Ct. App. R. 46(c)(4) (Washington, D.C.)
Rules Regulating the Florida Bar, Chapter 16,
as adopted in Amendment to Rules Regulating
the Florida Bar,_____ Fla. L. Weekly ____,
1992 Fla. LEXIS 1398 (Case No. 79,288,
decided on July 23, 1992)
Rules and Regulations of the State Bar of
Georgia, Part II, Rule 2-101, Part D
Hawaii Sup. Ct. R. 14
Illinois Rev. Stat. Ch. 110A, par. 712 (Sup.
Ct. R. 712)
Michigan Bd. of Law Examiners R. 5(E)
New Jersey Sup. Ct. R. 1:21-9
New York Admn. Code tit. 22, Section 521
Ohio Sup. Ct. R. for the Government of the
Bar XI
Rules Regulating Admission to Practice Law in
Oregon, Chapter 10
Texas R. Governing Admission to the Bar of
Texas XVI
Annex VI - United States
Wash. R. of Ct. 14
Description: Lawyers authorized to practice in Canada or
Mexico and law firms headquartered in Canada
or Mexico will be permitted to provide
foreign legal consultancy services, and to
establish for that purpose, in Alaska,
California, Connecticut, District of
Columbia, Florida, Georgia, Hawaii, Illinois,
Michigan, New Jersey, New York, Ohio, Oregon,
Texas and Washington, or in any other state
that so permits by the date of entry into
force of this Agreement.
Title:Annex VII -- Schedule of the United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:23112
Annex VII(A) - United States
Annex VII
Schedule of the United States
Section A
Sector: Financial Services
Sub-Sector: Banking
Industry SIC 6021 National Commercial Banks
Classification:
Type of Senior Management and Boards of Directors
Reservation: (Article 1408)
Level of Federal
Government:
Measures: The National Bank Act, 12 U.S.C. 72
Description: All directors of a national bank must be
citizens of the United States. Because the
president of a national bank must be a
director, the president of a national bank
must be a citizen of the United States. An
exception exists for a national bank
affiliated with or owned by a foreign bank.
Such a bank need only have U.S. citizens
constitute a simple majority of the board and
thus need not employ a U.S. citizen as its
president.
Two-thirds of the directors of a national
bank must (a) have resided for one year prior
to their election, and (b) continue to
reside, in the state in which the bank is
located or within 100 miles of the bank.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Banking
Industry SIC 6021 National Commercial Banks
Classification: SIC 6022 State Commercial Banks
SIC 6029 Other Commercial Banks
SIC 6081 Branches and Agencies of Foreign
Banks
SIC 6712 Bank Holding Companies
Foreign Banks (Not Applicable)
Type of National Treatment (Article 1405)
Reservation:
Level of Federal
Government:
Measures: Bank Holding Company Act of 1956, 12 U.S.C.
1842(d)
International Banking Act of 1978, 12 U.S.C.
3103(a)(5)
Description: Federal authorities may not approve the
establishment of, or acquisition of an
interest in, a bank subsidiary within a state
("the target state") by a foreign bank that
has a full-service branch in the United
States, unless the measures of the target
state expressly permit such an establishment
or acquisition by domestic bank holding
companies with their principal place of
banking operations (as that term is described
under the Bank Holding Company Act) in the
foreign bank's "home state" (as that term is
defined in the International Banking Act).
Federal authorities also may not approve the
establishment of, or acquisition of an
interest in, a bank subsidiary within a state
("the target state") by a bank holding
company, including a foreign bank, that
maintains its principal place of banking
operations in another state, as defined under
the Bank Holding Company Act, unless the
measures of the target state expressly permit
the establishment and acquisition by bank
Annex VII(A) - United States
holding companies from the state of the
company's or bank's principal place of
banking operations.
Due to these Federal measures and certain
state measures, foreign banks with direct
deposit-taking branches or bank subsidiaries
in the United States are not permitted to
establish or acquire interests in banks
located in some states on the same basis as
domestic bank holding companies from the
state of the foreign bank's principal place
of banking operations or the foreign bank's
home state. The following types of measures,
among others, fall into this category:
(a) foreign banks are expressly excluded
from the authority to own banks under
certain regional holding company laws;
(b) foreign banks are implicitly excluded
from the definition of an eligible owner
under certain state laws that require a
majority of a banking company's deposits
to be in the United States, in a
particular region of the United States
or in a particular state;
(c) foreign banks that do not already own a
banking subsidiary in the United States
are interpreted as not qualifying as an
eligible "bank holding company" entitled
to own a bank in the United States; and
(d) where a foreign bank's principal place
of business is in a state which is
different from its home state and the
measures of the target state accord
better treatment to bank holding
companies from one of these states, the
foreign bank will be subject to the more
restrictive rule.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Banking
Industry SIC 6082 Foreign Trade and International
Classification: Banking Institutions
Type of National Treatment (Article 1405)
Reservation:
Level of Federal
Government:
Measures: Federal Reserve Act, 12 U.S.C. 619
Description: Edge corporations (specialized international
banking companies chartered under Federal
law) may be owned by domestically-owned banks
and bank holding companies, and by domestic
non-bank companies willing to restrict their
business activities to those closely related
to banking. Foreign ownership of Edge
corporations is limited to foreign banks and
U.S. subsidiaries of foreign banks. Other
foreign persons may not directly or
indirectly own Edge corporations.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Banking
Industry SIC 6081 Branches of Foreign Banks
Classification:
Type of National Treatment (Article 1405)
Reservation:
Level of Federal
Government:
Measures: International Banking Act of 1978, 12 U.S.C.
3104(c)
Description: In order to accept or maintain domestic
retail deposit accounts having balances of
less than $100,000, a foreign bank must
establish an insured banking subsidiary.
This prohibition does not apply to a foreign
bank branch that was engaged in insured
deposit-taking activities on December 19,
1991.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Banking
Industry SIC 6081 Branches and Agencies of Foreign
Classification: Banks
Type of National Treatment (Article 1405)
Reservation:
Level of Federal
Government:
Measures: Federal Reserve Act, 12 U.S.C. 221, 302,
321
Description: Foreign banks with branches or agencies in
the United States may not be members of the
Federal Reserve System, and thus may not vote
for directors of a Federal Reserve Bank.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Banking and Securities
Industry SIC 6021 National Commercial Banks
Classification: SIC 6022 State Commercial Banks
SIC 6029 Other Commercial Banks
SIC 6081 Branches and Agencies of Foreign
Banks
SIC 6211 Security Brokers, Dealers and
Flotation Companies
Type of National Treatment (Article 1405)
Reservation: Most-Favored-Nation Treatment (Article 1406)
Level of Federal
Government:
Measures: The Primary Dealers Act of 1988, 22 U.S.C.
5341-5342
Description: The Primary Dealers Act of 1988 prohibits a
foreign firm from being designated as a
primary dealer in U.S. government debt
obligations unless the home country of the
foreign firm accords to U.S. firms the same
competitive opportunities as are accorded to
domestic firms in the underwriting and
distribution of government debt instruments
in the firm's home country.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Banking and Securities
Industry SIC 6289 Services Allied with the Exchange
Classification: of Securities or Commodities
Type of Cross-Border Trade (Article 1404)
Reservation: National Treatment (Article 1405)
Most-Favored-Nation Treatment (Article 1406)
Senior Management and Boards of Directors
(Article 1408)
Level of Federal
Government:
Measures: Trust Indenture Act of 1939, 15 U.S.C.
77jjj(a)(1)
Description: Under the Trust Indenture Act of 1939, a
foreign firm located outside the United
States may be prohibited from acting as the
sole trustee under an indenture for debt
securities sold in the United States if U.S.
institutional trustees cannot act as sole
trustees for securities sold in the foreign
firm's home country.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Banking and Securities
Industry SIC 6211 Security Brokers, Dealers and
Classification: Flotation Companies
Type of Most-Favored-Nation Treatment (Article 1406)
Reservation:
Level of Federal
Government:
Measures: Securities Exchange Act of 1934, 15 U.S.C.
78o(c)
17 C.F.R. 240.15c3-3
Description: A broker-dealer that maintains its principal
place of business in Canada may maintain its
required reserves at a bank in Canada subject
to supervision by an authority of Canada. A
broker-dealer that maintains its principal
place of business in any other foreign
country must maintain reserves in the United
States.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Commodity Futures and Options
Industry SIC 6221 Commodity Contracts Broker and
Classification: Dealers
SIC 6231 Commodity Exchanges
SIC 6282 Investment Advice
SIC 6289 Services Allied with the Exchange
of Commodities
Type of Cross-Border Trade (Article 1404)
Reservation: New Financial Services and Data Processing
(Article 1407)
Level of Federal
Government:
Measures: Commodity Exchange Act, 7 U.S.C. 2, 13-1
Description: Federal law prohibits the offer or sale of
futures contracts on onions, options
contracts on onions and options on futures
contracts on onions in the United States and
services related thereto.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Insurance
Industry SIC 6351 Surety Insurance
Classification:
Type of Cross-Border Trade (Article 1404)
Reservation: National Treatment (Article 1405)
Level of Federal
Government:
Measures: 31 U.S.C. 9304
Description: Branches of foreign insurance companies are
not permitted to provide surety bonds for
U.S. Government contracts.
Phase-Out: None
Annex VII(A) - United States
Sector: Financial Services
Sub-Sector: Banking and Securities
Industry SIC 6081 Branches and Agencies of Foreign
Classification: Banks
SIC 6282 Investment Advice
Type of National Treatment (Article 1405)
Reservation:
Level of Federal
Government:
Measures: Investment Advisers Act of 1940, 15 U.S.C.
80b-2, 80b-3
Description: Foreign banks are required to register as
investment advisers under the Investment
Advisers Act of 1940 to engage in securities
advisory services in the United States, while
domestic banks are exempt from registration.
Phase-Out: None
Annex VII(B) - United States
Annex VII
Schedule of the United States
Section B
With respect to Canada, the United States reserves the right
to adopt any measure relating to cross-border trade in securities
services that derogates from Article 1404(1) or 1406.
Annex VII(C) - United States
Annex VII
Schedule of the United States
Section C
The United States commits to permit an eligible grupo
financiero that, in formation of the grupo in Mexico before the
date of entry into force of this Agreement, lawfully acquires an
eligible Mexican bank and a Mexican securities firm which owns or
controls a securities company in the United States, to continue
to engage through the U.S. securities company in the activities
in which that securities company was engaged on the date of
acquisition by the grupo for a time period of five years from the
date of that acquisition. The U.S. securities company:
(a) shall not be permitted to expand through acquisition in
the United States during such period; and
(b) shall be subject to measures consistent with national
treatment that restrict transactions between the
company and its affiliates.
For purposes of this Section: an "eligible grupo financiero" is
a Mexican financial group that has not previously benefitted from
this commitment; and an "eligible Mexican bank" means any Mexican
instituci n de cr dito that owned or controlled a subsidiary
bank, or operated a branch or agency, in the United States on
January 1, 1992.