(Sandler and Travis)
President Bush has issued Proclamation 7870, which makes a number of changes to the NAFTA rules of origin. For products of Canada, these changes are effective with respect to goods that are entered, or withdrawn from
warehouse for consumption, on or after January 1, 2005. The effective date of these changes with respect to Mexico will be announced by the USTR in a future Federal Register notice.
According to information from
Canada's Department of Foreign Affairs and International Trade (DFAIT), these changes affect the NAFTA rules of origin for tea, spices, carrageenan, seasonings, precious metals, speed drive controllers and their printed
assemblies, household appliances, loudspeakers, thermostats, parts for various machinery and equipment, and toys. DFAIT summarizes the changes as follows:
* Tea and spices - Tea that is fermented and/or tea that
is packaged in the NAFTA territory will satisfy the rule of origin. The crushing or grinding in the NAFTA territory of certain non-originating spices such as pepper, cinnamon, cloves, nutmeg, ginger, turmeric, and dill
seeds will confer origin.
* Carrageenan - Originating carrageenan (food thickener) may be blended with specified quantities of non-originating carrageenan without losing its originating status.
*
Seasonings -- Mixed condiments or seasonings containing non-originating ingredients classified in Chapter 21 may qualify as originating.
* Precious metals (gold, silver, platinum, palladium, and rhodium) --
Non-originating unrefined precious metals and secondary precious metals may be used in the production of originating precious metals.
* Speed drive controllers and their printed circuit assemblies -- Speed drive
controllers made with non-originating printed circuit assemblies may qualify as originating; the printed circuit assemblies will be subject to a less onerous tariff change rule.
* Household appliances --
Products like personal fans, food mixers, heaters, hair dryers, microwave ovens, coffee makers, and toasters no longer have to satisfy a regional value content requirement.
* Loudspeakers -- The regional value
content requirement level is reduced and the use of a broader range of non-originating components is allowed, provided the regional value content is met.
* Parts -- Considering that some parts used to make parts
designated for specified equipment or machinery are not separately provided for under different classification provisions, the limits on the type of non-originating inputs that can be used is removed, provided the
regional value content is met.
* Thermostats -- A broader range of non-originating components may be used, provided the regional value content is met.
* Toys -- A broader range of non-originating
components may be used, provided that the toys satisfy the regional value content requirement.
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