Details of Presidential Proclamation on GSP, NAFTA Rules of Origin Changes, CBERA/CBTPA Footwear, Etc.(Part III)

This is Part III of a multi-part series of summaries on this proclamation, and highlights the proclamation's modifications to the NAFTA tariff classification rules (TCRs) for certain originating textile articles from Canada, and CBERA and CBTPA changes for footwear. See future ITT issues for additional summaries. (See ITT's Online Archives or 07/01/05 and 07/05/05 news, 05070105 and 05070512 for BP summaries of Part I (overview) and Part II (July 1^st GSP changes).)

Modification of NAFTA Tariff Shift rules for Originating Goods of Canada

Effective for goods of Canada under the terms of HTS General note 12, that are entered, or withdrawn from warehouse, for consumption on or after July 1, 2005, the following changes have been made to the TCRs of General Note 12(t) (NAFTA):

Chapter 51 - Woven fabrics of combed cashmere or combed camel hair yarn. TCR 3 to Chapter 51 is redesignated as TCR 3B, and new TCR 3 and TCR 3A are added that apply only to goods of Canada under the terms of HTS General Note 12.

Chapter 54 - Woven fabrics of viscose rayon filament yarns. TCR 4 to Chapter 54 is redesignated as TCR 4A, and new TCR 4 is added that applies only to goods of Canada under the terms of HTS General Note 12.

Chapter 55 - Yarn spun from acid-dyeable acrylic tow. TCR 1 to Chapter 55 is redesignated as TCR 1A, and new TCR 1 is added that applies only to goods of Canada under the terms of HTS General Note 12.

Chapter 56 - Certain sanitary articles; gimped nylon yarn. The text of the TCR to Chapter 56 is designated as TCR 3, and new TCR 1 is added regarding sanitary towels or tampons that applies only to goods of Canada under the terms of HTS General Note 12.

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In addition, a new TCR 2 and a new Heading rule defining "flat yarns" for purposes of new TCR 2 are added regarding gimped nylon yarn made from flat yarns that applies only to goods of Canada under the terms of HTS General Note 12.

Chapter 58 - Woven pile fabrics containing dry spun acrylic fiber. The text of the TCR to Chapter 58 is designated as TCR 2, and new TCR 1 is added that applies only to goods of Canada under the terms of HTS General Note 12.

(According to two International Trade Commission (ITC) reports on the above modifications to the NAFTA rules of origin, these modifications were expected to apply to originating goods of Canada and/or Mexico; however the proclamation is only implementing these changes for Canada. For descriptions regarding the effects of these rule changes, see ITT's Online Archives or 09/10/04 and 03/04/05 news, 04091020 and 05030420 for BP summaries of ITC report on above changes, except sanitary articles. See ITT's Online Archives or 01/07/05 and 11/08/04 news, 05010760 and 04110835 for BP summaries of ITC reports on sanitary articles.)

CBERA and CBTPA Changes for Footwear

Effective for goods entered, or withdrawn from warehouse, for consumption on or after December 18, 2004, the following changes have been made for certain CBERA or CBTPA footwear:

New CBERA duty-free treatment for footwear in 57 HTS subheadings. The follow 8-digit tariff numbers are newly designated as CBERA-eligible (the symbol "E" is inserted following the duty-rate of "Free" in the Rates of Duty 1-Special subcolumn):

Footwear excluded from CBERA duty-free treatment listed by HTS subheading. HTS General Note 7 is modified by the addition of a new subdivision (h), which states that CBERA duty-free treatment does not apply to the following 8-digit tariff numbers that was not designated on December 18, 2004 as GSP-eligible under HTS General Note 4 (none were so designated as GSP-eligible; in addition, these CBERA exclusions are continuing exclusions):

(Note that footwear under most/all of the above tariff numbers is eligible for reduced duty or is duty-free under the CBTPA.)

More lenient requirements for obtaining CBTPA duty-rate entry for footwear in 4 HTS subheadings. HTS General Note 17 is modified by, among other things, redesignating subdivision (d) as subdivision (e), and adding a new subdivision (d) to state that the requirement that CBTPA goods meet the NAFTA origin rules of HTS General note 12 does not apply if the article of footwear is the growth, product or manufacture of a CBTPA designated beneficiary country and meets all the CBERA requirements of General Note 7 (except the requirement to be the growth, product or manufacture of a CBERA beneficiary country):

(See ITT's Online Archives or 12/01/04 news, 01012330 for BP summary of these footwear provisions as they appear in the Miscellaneous Trade and Technical Corrections Act of 2003.)

Proclamation 7912 (FR Pub 06/30/05) available at http://a257.g.akamaitech.net/7/257/2422/30jun20050800/edocket.access.gpo.gov/2005/pdf/05-13182.pdf