NAFTA Rules of Origin Regulations (SOR/94-14)

Regulations are current to 2013-04-29 and last amended on 2009-09-01. Previous Versions

SCHEDULE VI

REGIONAL VALUE-CONTENT CALCULATION FOR CAMI

  • 1. In this Schedule,

    “closed”

    “closed” means, with respect to a plant, a closure

    • (a) for purposes of re-tooling for a change in model line, or

    • (b) as a result of any event or circumstance (other than the imposition of antidumping duties or countervailing duties, or an interruption of operations resulting from a labour strike, lock-out, labour dispute, picketing or boycott of or by employees of CAMI Automotive, Inc. or General Motors of Canada Limited) that CAMI Automotive, Inc. or General Motors of Canada Limited 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 a delay in obtaining raw materials, parts, fuel or utilities; (fermée)

    “GM”

    “GM” means 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)

    “producer”

    “producer” means CAMI Automotive, Inc. ((producteur))

  • 2. For purposes of section 11 of these Regulations, for purposes of determining the regional value content, in a fiscal year, of a motor vehicle of a class of motor vehicles or a model line produced by the producer in the territory of Canada and imported into the territory of the United States, the producer may elect to calculate the regional value content by

    • (a) calculating

      • (i) the sum of

        • (A) the net cost incurred by the producer, during that fiscal year, in the production in the territory of Canada of motor vehicles of a category referred to in section 3 that is chosen by the producer, and

        • (B) the net cost incurred by General Motors of Canada Limited, during the fiscal year that corresponds most closely to the producer’s fiscal year, in the production in the territory of Canada of a corresponding class of motor vehicles or model line, and

      • (ii) the sum of

        • (A) the value, determined in accordance with section 9 of these Regulations for light-duty vehicles and section 10 of these Regulations for heavy-duty vehicles, of the non-originating materials that are used by the producer, during that fiscal year, in the production in the territory of Canada of motor vehicles of a category referred to in section 3 that is chosen by the producer, and

        • (B) the value, determined in accordance with section 9 of these Regulations for light-duty vehicles and section 10 of these Regulations for heavy-duty vehicles, of the non-originating materials that are used by General Motors of Canada Limited, during the fiscal year that corresponds most closely to the producer’s fiscal year, in the production in the territory of Canada of a corresponding class of motor vehicles or model line, and

    • (b) using the sums referred to in subparagraphs (a)(i) and (ii) as the net cost and the value of non-originating materials, respectively, in the calculation referred to in subsection 6(3) of these Regulations,

    provided that

    • (c) at the beginning of the producer’s fiscal year, General Motors of Canada Limited owns 50 per cent or more of the voting common stock of the producer, and

    • (d) GM acquires 75 per cent or more by unit of quantity of the class of motor vehicles or model line, as the case may be, that the producer produced in the territory of Canada in the producer’s fiscal year for sale in the territory of one or more of the NAFTA countries.

  • 3. The categories referred to in clauses 2(a)(i)(A) and (ii)(A) are the following:

    • (a) the class of motor vehicles that the producer produced in the territory of Canada in the producer’s fiscal year for sale in the territory of one or more of the NAFTA countries; and

    • (b) the model line that the producer produced in the territory of Canada in the producer’s fiscal year for sale in the territory of one or more of the NAFTA countries.

  • 4. Where GM does not satisfy the requirement set out in paragraph 2(d), the producer may choose that the regional value content be calculated in accordance with section 2 only for those motor vehicles that are acquired by GM for distribution under the GEO marque or another GM marque.

    • 5. (1) The producer may choose that the calculation referred to in section 2 be made over a period of two fiscal years where

      • (a) any plant operated by the producer or by General Motors of Canada Limited is closed for more than two consecutive months; and

      • (b) the motor vehicles of a category referred to in section 3, with respect to which the producer elects that the regional value content be calculated in accordance with section 2, are produced in that plant.

    • (2) Subject to subsection (3), the period of two fiscal years referred to in subsection (1) corresponds to the fiscal year in which the plant is closed and, at the choice of the producer, the preceding or the subsequent fiscal year.

    • (3) Where the plant is closed for a period that spans two fiscal years, the calculation referred to in section 2 may be made only over those two fiscal years.

    • (4) Where the producer has elected that the regional value content be calculated over two fiscal years under this section, the election referred to in subsection 11(6) of these Regulations shall be filed not later than 10 days after the end of the period during which the plant is closed, or at such later time as the customs administration may accept.

  • 6. For purposes of this Schedule, a motor vehicle producer shall be deemed to be GM where, as a result of an amalgamation, reorganization, division or similar transaction, that motor vehicle producer

    • (a) acquires all or substantially all of the assets used by GM; and

    • (b) directly or indirectly controls, or is controlled by, GM, or both that motor vehicle producer and GM are controlled by the same person.

  • SOR/95-382, s. 2.