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  1. NAFTA Rules of Origin Regulations - SOR/94-14 (SCHEDULE VIII : Value of Materials)
    Regulations Respecting the Uniform Interpretation, Application and Administration of the Rules of Origin Under the North American Free Trade Agreement

    [...]

    • 1 (1) For purposes of this Schedule, unless otherwise stated,

      producer

      producer refers to

      • (a) in the case of subparagraph 10(1)(b)(i) of these Regulations, the producer of the listed material, and

    • (2) Where it is to be determined under subsection 9(3) of these Regulations whether the customs value of a material was determined in a manner consistent with this Schedule for purposes of paragraph 9(2)(c) or (d) of these Regulations, a reference in this Schedule to “producer” shall be read as a reference to “person other than the producer who imports the traced material from outside the territories of the NAFTA countries”.

    • 2 (1) Except as provided under subsections (2) and (3), the transaction value of a material under paragraph 7(1)(b) and subsections 9(5) and 10(2) of these Regulations shall be the price actually paid or payable for the material determined in accordance with section 4 and adjusted in accordance with section 5.

    • [...]

    • (8) A number of factors must be taken into consideration for the purpose of determining whether the transaction value of the identical materials or similar materials closely approximates the transaction value of the material being valued. These factors include the nature of the material, the nature of the industry itself, the season in which the material is sold, and whether the difference in values is commercially significant. Since these factors may vary from case to case, it would be impossible to apply an acceptable standardized difference such as a fixed amount or fixed percentage difference in each case. For an illustration of this, a small difference in value in a case involving one type of material could be unacceptable, while a large difference in a case involving another type of material might be acceptable for the purposes of determining whether the transaction value closely approximates a test value set out in subsection (4).

    [...]

    • 5 (1) In determining the transaction value of the material, the following shall be added to the price actually paid or payable:

      • [...]

      • (b) the value, reasonably allocated in accordance with subsection (12), of the following elements where they are supplied directly or indirectly to the seller by the producer free of charge or at reduced cost for use in connection with the production and sale of the material, to the extent that the value is not included in the price actually paid or payable:

        • [...]

        • (iii) an indirect material, other than those referred to in subparagraph (ii) or in paragraphs (c), (e) or (f) of the definition indirect material set out in subsection 2(1) of these Regulations, used in the production of the material being valued, and

    • [...]

    • (12) The producer shall choose the method of allocating to the material the value of the elements referred to in subparagraphs (1)(b)(ii) through (iv), provided that the value is reasonably allocated to the material in a manner appropriate to the circumstances. The methods the producer may choose to allocate the value include allocating the value over the number of units produced up to the time of the first shipment or allocating the value over the entire anticipated production where contracts or firm commitments exist for that production. For an illustration of this, a producer provides the seller with a mould to be used in the production of the material and contracts with the seller to buy 10,000 units of that material. By the time the first shipment of 1,000 units arrives, the seller has already produced 4,000 units. In these circumstances, the producer may choose to allocate the value of the mould over 4,000 units or 10,000 units but shall not choose to allocate the value of the elements to the first shipment of 1,000 units. The producer may choose to allocate the entire value of the elements to a single shipment of material only where that single shipment comprises all of the units of the material acquired by the producer under the contract or commitment for that number of units of the material between the seller and the producer.

    • 6 (1) If there is no transaction value under subsection 2(2) or the transaction value is unacceptable under subsection 2(3), the value of the material, referred to in subparagraph 7(1)(b)(ii) of Part IV of these Regulations, shall be the transaction value of identical materials sold, at or about the same time as the material being valued was shipped to the producer, to a buyer located in the same country as the producer.

    • 7 (1) If there is no transaction value under subsection 2(2) or the transaction value is unacceptable under section 2(3), and the value of the material cannot be determined under section 6, the value of the material, referred to in subparagraph 7(1)(b)(ii) of Part IV of these Regulations, shall be the transaction value of similar materials sold, at or about the same time as the material being valued was shipped to the producer, to a buyer located in the same country as the producer.

    8 If there is no transaction value under subsection 2(2) or the transaction value is unacceptable under subsection 2(3), and the value of the material cannot be determined under section 6 or 7, the value of the material, referred to in subparagraph 7(1)(b)(ii) of Part IV of these Regulations, shall be determined under section 9 or, when the value cannot be determined under that section, under section 10 except that, at the request of the producer, the order of application of sections 9 and 10 shall be reversed.

    • 9 (1) Under this section, if identical materials or similar materials are sold in the territory of the NAFTA country in which the producer is located, in the same condition as the material was in when received by the producer, the value of the material, referred to in subparagraph 7(1)(b)(ii) of Part IV of these Regulations, shall be based on the unit price at which those identical materials or similar materials are sold, in the greatest aggregate quantity by the producer or, where the producer does not sell those identical materials or similar materials, by a person at the same trade level as the producer, at or about the same time as the material being valued is received by the producer, to persons located in that territory who are not related to the seller, subject to deductions for the following:

      [...]

    • 10 (1) Under this section, the value of a material, referred to in subparagraph 7(1)(b)(ii) of Part IV of these Regulations, shall be the sum of

      [...]

    • 11 (1) Where there is no transaction value under subsection 2(2) or the transaction value is unacceptable under subsection 2(3), and the value of the material cannot be determined under sections 6 through 10, the value of the material, referred to in subparagraph 7(1)(b)(ii) of Part IV of these Regulations, shall be determined under this section using reasonable means consistent with the principles and general provisions of this Schedule and on the basis of data available in the country in which the producer is located.

    [...]


  2. NAFTA Rules of Origin Regulations - SOR/94-14 (SCHEDULE VII : Reasonable Allocation of Costs)
    Regulations Respecting the Uniform Interpretation, Application and Administration of the Rules of Origin Under the North American Free Trade Agreement

    [...]

    [...]

    1 For purposes of this Schedule,

    costs

    costs means any costs that are included in total cost and that need to be allocated pursuant to subsections 5(9), 6(11) and 7(6) and subparagraphs 10(1)(a)(i) and (ii) of these Regulations, subsection 4(7) of Schedule II and subsections 5(7) and 10(2) of Schedule VIII; (coûts)

    • [...]

    • (2) In this Schedule, reference to “good” shall,

      • (a) for purposes of subsection 6(15) of these Regulations, be read as a reference to “identical goods or similar goods, or any combination thereof”;

      • (b) for purposes of subsection 7(6) of these Regulations, be read as a reference to “intermediate material”;

      • (c) for purposes of section 11 of these Regulations, be read as a reference to “category of vehicles that is chosen pursuant to subsection 11(1) of these Regulations”;

      • (d) for purposes of section 12 of these Regulations, be read as a reference to “category of goods chosen pursuant to subsection 12(1) of these Regulations”;

      • (e) for purposes of subsection 13(4) of these Regulations, be read as a reference to “category of vehicles chosen pursuant to subsection 13(4) of these Regulations”;

    [...]

    5 Any cost allocation method referred to in section 3, 4 or 4.1 that is used by a producer for the purposes of these Regulations shall be used throughout the producer’s fiscal year.

    [...]

    [...]

    [...]

    Excluded Costs

    Under paragraph 6(11)(b) of these Regulations, where excluded costs are included in costs to be allocated to a good, the cost ratio used to allocate that cost to the good is used to determine the amount of excluded costs to be subtracted from the costs allocated to the good.

    [...]

    [...]

    [...]

    Excluded Costs

    Under paragraph 6(11)(b) of these Regulations, where excluded costs are included in overhead to be allocated to a good, the direct labour and direct material ratio used to allocate overhead to the good is used to determine the amount of excluded costs to be subtracted from the overhead allocated to the good.

    “Examples”

    Example 1

    The following example illustrates the application of the direct labour and direct material ratio method used by a producer of a good to allocate overhead where the producer chooses to calculate the net cost of the good in accordance with paragraph 6(11)(a) of these Regulations.

    [...]

    Example 2

    The following example illustrates the application of the direct labour and direct material ratio method used by a producer of a good to allocate overhead where the producer chooses to calculate the net cost of the good in accordance with paragraph 6(11)(b) of these Regulations and where excluded costs are included in overhead.

    [...]

    [...]

    [...]

    Excluded Costs

    Under paragraph 6(11)(b) of these Regulations, where excluded costs are included in

    [...]

    “Examples”

    Example 1

    The following example illustrates the application of the direct cost ratio method used by a producer of a good to allocate indirect overhead where the producer chooses to calculate the net cost of the good in accordance with paragraph 6(11)(a) of these Regulations.

    [...]

    Example 2

    The following example illustrates the application of the direct cost ratio method used by a producer of a good to allocate indirect overhead where the producer has chosen to calculate the net cost of the good in accordance with paragraph 6(11)(b) of these Regulations and where excluded costs are included in indirect overhead.

    [...]

    [...]


  3. NAFTA Rules of Origin Regulations - SOR/94-14 (SCHEDULE I : Specific Rules of Origin)
    Regulations Respecting the Uniform Interpretation, Application and Administration of the Rules of Origin Under the North American Free Trade Agreement

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    [...]

    Chapter 7 Edible Vegetables and Certain Roots and Tubers

    • Note: Notwithstanding paragraph 5(4)(l), subsection 5(1) of these Regulations applies to non-originating truffles of subheading 0709.59 used in the production of mixtures of mushrooms and truffles of subheading 0709.59 and non-originating capers of subheading 0711.90 used in the production of mixtures of vegetables of subheading 0711.90.

    [...]

    Chapter 8 Edible Fruit and Nuts; Peel of Citrus Fruit or Melons

    • Note: Notwithstanding paragraph 5(4)(l), subsection 5(1) of these Regulations does not apply to non-originating macadamia nuts of subheading 0802.60 used in the production of mixtures of nuts of subheading 0802.90.

    [...]

    Chapter 9 Coffee, Tea, Maté and Spices
    0910.99

    • Note: Notwithstanding paragraph 5(4)(l), subsection 5(1) of these Regulations applies to non-originating thyme, bay leaves or curry of subheading 0910.99 used in the production of mixtures of subheading 0910.99.

    [...]

    Chapter 12 Oil Seeds and Oleaginous Fruits; Miscellaneous Grains, Seeds and Fruit; Industrial or Medicinal Plants; Straw and Fodder
    1209.10-1209.30

    • Note: Notwithstanding paragraph 5(4)(l) of these Regulations, subsection 5(1) applies to non-originating timothy grass seed when used in the production of mixtures of subheading 1209.29.

    [...]

    [...]

    Chapter 13 Lac; Gums, Resins and Other Vegetable Saps and Extracts
    13.01

    [...]

    • Note: Notwithstanding paragraph 5(4)(l), subsection 5(1) of these Regulations applies to non-originating saps and extracts of pyrethrum or of the roots of plants containing rotenone when used in the production of goods of subheading 1302.19

    [...]

    Chapter 20 Preparations of Vegetables, Fruit, Nuts or Other Parts of Plants

    • [...]

    • Note: Notwithstanding paragraph 5(4)(l), subsection 5(1) of these Regulations does not apply to non-originating bamboo shoots of subheading 2005.91 used in the production of mixtures of vegetables of subheading 2005.99.

    [...]

    Chapter 61 Articles of Apparel and Clothing Accessories, Knitted or Crocheted
    6104.22-6104.29

    A change to subheadings 6104.22 through 6104.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54 or headings 55.08 through 55.16 or 60.01 through 60.06, provided that:

    • [...]

    • (b) with respect to a garment of heading 61.02, a jacket or a blazer of heading 61.04, or a skirt of heading 61.04, of wool, fine animal hair, cotton or man-made fibres, 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.

    [...]

    Chapter 62 Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted
    6203.22-6203.29

    A change to subheadings 6203.22 through 6203.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54 or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that:

    • [...]

    • (b) with respect to a garment of heading 62.01or a jacket or a blazer of heading 62.03, of wool, fine animal hair, cotton or man-made fibres, 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.
    6204.21-6204.29

    A change to subheadings 6204.21 through 6204.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that:

    • [...]

    • (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 fibres, 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.

    [...]

    Chapter 74 Copper and Articles Thereof
    74.04 No required change in tariff classification to heading 74.04, provided the waste and scrap are as described in paragraph 4(1)(i) of these Regulations.

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    Chapter 84 Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof
    8486.20

    • [...]

    • (15) A change to other machinery for working rubber or plastics or for the manufacture of products from these materials of subheading 8486.20 from any other good of subheading 8486.20 or any other heading, except from heading 84.77 or blow moulding machines of subheading 8486.20; or

    • (16) A change to other machinery for working rubber or plastics or for the manufacture of products from these materials of subheading 8486.20 from subheading 8486.90, whether or not there is also a change from any other good of subheading 8486.20 or any other heading, except from heading 84.77 or blow moulding machines of subheading 8486.20, provided there is a regional value content of not less than:

      [...]
    8486.90

    • [...]

    • (5) A change to parts of machinery for working rubber or plastics or for the manufacture of products from these materials of subheading 8486.90 from any other heading, except from heading 84.77;

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    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
    8523.52

    • Note: Notwithstanding section 16 (Transshipment) of these Regulations, “smart cards” of subheading 8523.52 qualifying under the rule below as originating goods may undergo further production outside the territory of the NAFTA countries and, when imported into the territory of a NAFTA country, will originate in the territory of a NAFTA country, provided that such further production did not result in a change to any other subheading.
    85.41-85.42

    • Note: Notwithstanding section 16 (Transshipment) of these Regulations, a good of subheadings 8541.10 through 8541.60 or 8542.10 through 8542.39 qualifying under the rule below as an originating good may undergo further production outside the territory of the NAFTA countries and, when imported into the territory of a NAFTA country, will originate in the territory of a NAFTA country, provided that such further production did not result in a change to a subheading outside that group.
    8543.90

    • Note: Notwithstanding section 16 (Transshipment) of these Regulations, electronic microassemblies of subheading 8543.90 qualifying under the rule below as an originating good may undergo further production outside the territory of the NAFTA countries and, when imported into the territory of a NAFTA country, will originate in the territory of a NAFTA country, provided that such further production did not result in a change to any other subheading.

      [...]
    8548.90

    • Note: Notwithstanding section 16 (Transshipment) of these Regulations, electronic microassemblies of subheading 8548.90 qualifying under the rule below as an originating good may undergo further production outside the territory of the NAFTA countries and, when imported into the territory of a NAFTA country, will originate in the territory of a NAFTA country, provided that such further production did not result in a change to any other subheading.

      [...]

    [...]


  4. NAFTA Rules of Origin Regulations - SOR/94-14 (Section 2)
    Regulations Respecting the Uniform Interpretation, Application and Administration of the Rules of Origin Under the North American Free Trade Agreement

    • 2 (1) For purposes of these Regulations,

      customs value

      customs value means

      • (a) in the case of Canada, value for duty as defined in the Customs Act, except that for purposes of determining that value the reference in section 55 of that Act to “in accordance with the regulations made under the Currency Act” shall be read as a reference to “in accordance with subsection 3(1) of these Regulations”,

      • (b) in the case of Mexico, the valor en aduana as determined in accordance with the Ley Aduanera, converted, in the event such value is not expressed in Mexican currency, to Mexican currency at the rate of exchange determined in accordance with subsection 3(1) of these Regulations, and

      • (c) in the case of the United States, the value of imported merchandise as determined by the Customs Service in accordance with section 402 of the Tariff Act of 1930, as amended, converted, in the event such value is not expressed in United States currency, to United States currency at the rate of exchange determined in accordance with subsection 3(1) of these Regulations; (valeur en douane)

      non-originating good

      non-originating good means a good that does not qualify as originating under these Regulations; (produit non originaire)

      non-originating material

      non-originating material means a material that does not qualify as originating under these Regulations; (matière non originaire)

      originating good

      originating good means a good that qualifies as originating under these Regulations; (produit originaire)

      originating material

      originating material means a material that qualifies as originating under these Regulations; (matière originaire)

      subject to a regional value-content requirement

      subject to a regional value-content requirement means, with respect to a good, that the provisions of these Regulations that are applied to determine whether the good is an originating good include a regional value-content requirement; (assujetti à une prescription de teneur en valeur régionale)

    • [...]

    • (3) For purposes of these Regulations,

      • [...]

      • (e) any reference to a tariff item in Chapter Four of the Agreement or these Regulations that includes letters shall be reflected as the appropriate eight-digit number in the Harmonized System as implemented in each NAFTA country; and

    • (4) Where an example, referred to as an “Example”, is set out in these Regulations, the example is for purposes of illustrating the application of a provision, and where there is any inconsistency between the example and the provision, the provision prevails to the extent of the inconsistency.

    • (5) Except as otherwise provided, references in these Regulations to domestic laws of the NAFTA countries apply to those laws as they are currently in effect and as they may be amended or superseded.

    [...]


  5. NAFTA Rules of Origin Regulations - SOR/94-14 (Section 2)
    Regulations Respecting the Uniform Interpretation, Application and Administration of the Rules of Origin Under the North American Free Trade Agreement

    • 2 (1) For purposes of these Regulations,

      customs value

      customs value means

      • (a) in the case of Canada, value for duty as defined in the Customs Act, except that for purposes of determining that value the reference in section 55 of that Act to “in accordance with the regulations made under the Currency Act” shall be read as a reference to “in accordance with subsection 3(1) of these Regulations”,

      • (b) in the case of Mexico, the valor en aduana as determined in accordance with the Ley Aduanera, converted, in the event such value is not expressed in Mexican currency, to Mexican currency at the rate of exchange determined in accordance with subsection 3(1) of these Regulations, and

      • (c) in the case of the United States, the value of imported merchandise as determined by the Customs Service in accordance with section 402 of the Tariff Act of 1930, as amended, converted, in the event such value is not expressed in United States currency, to United States currency at the rate of exchange determined in accordance with subsection 3(1) of these Regulations; (valeur en douane)

      non-originating good

      non-originating good means a good that does not qualify as originating under these Regulations; (produit non originaire)

      non-originating material

      non-originating material means a material that does not qualify as originating under these Regulations; (matière non originaire)

      originating good

      originating good means a good that qualifies as originating under these Regulations; (produit originaire)

      originating material

      originating material means a material that qualifies as originating under these Regulations; (matière originaire)

      subject to a regional value-content requirement

      subject to a regional value-content requirement means, with respect to a good, that the provisions of these Regulations that are applied to determine whether the good is an originating good include a regional value-content requirement; (assujetti à une prescription de teneur en valeur régionale)

    • [...]

    • (3) For purposes of these Regulations,

      • [...]

      • (e) any reference to a tariff item in Chapter Four of the Agreement or these Regulations that includes letters shall be reflected as the appropriate eight-digit number in the Harmonized System as implemented in each NAFTA country; and

    • (4) Where an example, referred to as an “Example”, is set out in these Regulations, the example is for purposes of illustrating the application of a provision, and where there is any inconsistency between the example and the provision, the provision prevails to the extent of the inconsistency.

    • (5) Except as otherwise provided, references in these Regulations to domestic laws of the NAFTA countries apply to those laws as they are currently in effect and as they may be amended or superseded.

    [...]


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