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USTR, ITC Considering Extensive Changes to NAFTA Rules of Origin

The Obama administration is considering extensive changes to NAFTA rules of origin, according to a U.S. Trade Representative request for an International Trade Commission investigation into the amendments. The ITC received the letter March 14. The changes were agreed upon in April 2012 by the NAFTA Free Trade Commission, which comprises representatives of the U.S., Canadian, and Mexican governments, and mark the fourth time the countries have negotiated such wide-ranging rules of origin amendments through the “Track IV” process.

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Extensive changes would be made to NAFTA rules of origin for chemicals under Section VI of the HTS, and in particular for organic chemicals in Chapter 29. Major changes would also be made to chapters 84 and 85, as well as chapter 90. The proposed changes are listed in an attachment to the letter, and affect goods classified under the following chapters of the Harmonized Tariff Schedule:

Section IV: Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and Manufactured Tobacco Substitutes

Chapter 21

Section V: Mineral Products

Chapter 27

Section VI: Products of the Chemical or Allied Industries

Chapters 28, 29, 30, 31, 32, 33, 34, 35, 37, and 38

Section VII: Plastics and Articles Thereof Rubber and Articles Thereof

Section Notes, Chapters 39 and 40

Section IX: Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork; Manufacturers of Straw, of Esparto or of Other Plaiting Materials; Basketware and Wickerwork

Chapter 45

Section XIII: Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic Products; Glass and Glassware

Chapter 70

Section XV: Base Metals and Articles of Base Metal

Chapters 74, 75, 78, 79, 80, and 81

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

Chapters 84 and 85

Section XVII: Vehicles, Aircraft, Vessels and Associated Transport Equipment

Chapters 86 and 87

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

Section XX: Miscellaneous Manufactured Articles

Chapters 94, 95, and 96