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NAFTA Rules of Origin Regulations Revised to Reflect Changes

Tuesday, May 12, 2015
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued a final rule that, effective July 13, will conform the NAFTA rules of origin regulations within the appendix to 19 CFR part 181 to (a) technical corrections to the NAFTA Uniform Regulations for Chapter Four and Annex 403.1 agreed by the U.S., Canada and Mexico and (b) systemic revisions to the Harmonized Tariff Schedule of the United States.

According to CBP, this rule makes technical rectifications to the following provisions within the NAFTA rules of origin regulations.

- Part II, Section 5, subsection (4)(i), pertaining to exceptions to the de minimis rule for non-originating materials that do not undergo, subject to authorization, a required tariff change

- Part III, Section 6, subsection (6)(d)(iv), pertaining to regional value content and application of the net cost method in certain circumstances

- Part VI, Section 16, subsection (3), pertaining to exceptions to transshipment rules for certain goods

- Schedule IV, pertaining to the list of tariff provisions for the purposes of section 9 of the appendix

This rule also makes technical corrections to the Schedule IV light-duty automotive tracing list within these regulations to reflect pre-2007 modifications to the HTSUS.

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