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UNITED STATES - AUSTRALIA
FREE TRADE AGREEMENT
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Index > Chapters > 1-13 > 14-23 >
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PREAMBLE
The Government of the United States of America and the Government of
Australia (“the Parties”), resolved to:
REINFORCE the longstanding ties of friendship and
cooperation between them;
STRENGTHEN their economic relations and further
liberalize and expand bilateral trade and investment;
ESTABLISH clear and mutually advantageous rules
governing their trade and reduce the barriers to trade that exist between them;
ENCOURAGE a closer economic partnership that will
bring economic and social benefits, create new employment opportunities, and improve living standards for their people;
PROMOTE a predictable, transparent, and consistent
business environment that will assist enterprises to plan effectively and use resources efficiently;
FOSTER creativity and innovation and promote
stronger links between dynamic sectors of their economies;
IMPLEMENT this Agreement in a manner consistent
with their commitment to high labour standards, sustainable development, and environmental protection; and
BUILD on their rights and obligations under the WTO
Agreement and other agreements to which they are both parties;
HAVE AGREED as follows:
CHAPTER ONE
ESTABLISHMENT OF A FREE TRADE
AREA AND DEFINITIONS
ARTICLE 1.1 : GENERAL
1. The Parties to this Agreement, consistent with Article XXIV of GATT 1994
and Article V of GATS, hereby establish a free trade area in accordance with the
provisions of this Agreement. 2. The Parties affirm their existing rights and obligations with respect to
each other under existing bilateral and multilateral agreements to which both Parties are
party, including the WTO Agreement. 3. This Agreement shall not be construed to derogate from any international
legal obligation between the Parties that entitles goods or services, or suppliers of goods or
services, to treatment more favourable than that accorded by this Agreement. ARTICLE 1.2 : GENERAL DEFINITIONS
For the purposes of this Agreement, unless otherwise specified: 1. Agreement on Textiles and Clothing means the Agreement on
Textiles and Clothing, contained in Annex 1A to the WTO Agreement; 2. central government or central level of government means:
(a) for the United States, the federal government; and (b) for Australia, the Commonwealth government;
3. covered investment means, with respect to a Party, an investment in
its territory of an investor of the other Party, in existence as of the date of entry into force
of this Agreement or established, acquired, or expanded thereafter; 4. customs duty includes any customs or import duty and a charge of
any kind imposed in connection with the importation of a good, including any form of surtax or
surcharge in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article
III:2 of GATT 1994 in respect of the like domestic good or in respect of goods from which the imported good has been manufactured or produced in whole or in
part; (b) antidumping or countervailing duty that is applied pursuant to a Party’s
law; or (c) fee or other charge in connection with importation commensurate with the
cost of services rendered;
5. Customs Valuation Agreement means the Agreement on
Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A
to the WTO Agreement; 6. days means calendar days; 7. enterprise means any entity constituted or organized under
applicable law, whether or not for profit, and whether privately-owned or governmentally-owned or
controlled, including any corporation, trust, partnership, sole proprietorship, joint venture,
association, or similar organization; 8. enterprise of a Party means an enterprise constituted or organized
under a Party’s law; 9. existing means in effect on the date of entry into force of this
Agreement; 10. GATS means the General Agreement on Trade in Services,
contained in Annex 1B to the WTO Agreement; 11. GATT 1994 means the General Agreement on Tariffs and Trade 1994,
contained in Annex 1A to the WTO Agreement; 12. goods of a Party means domestic products as these are understood
in GATT 1994 or such goods as the Parties determine under the rules of origin applied in the
normal course of trade, and includes originating goods of a Party; 13. government procurement means the process by which a government
obtains the use of or acquires goods or services, or any combination thereof, for governmental
purposes and not with a view to commercial sale or resale or use in the production or supply
of goods or services for commercial sale or resale; 14. Harmonized System (HS) means the Harmonized Commodity
Description and Coding System, including its General Rules of Interpretation, Section Notes, and
Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws; 15. measure includes any law, regulation, procedure, requirement, or
practice; 16. national means a natural person referred to in Annex 1-A to this
Agreement; 17. originating means qualifying under the rules of origin set out in
Chapter Five (Rules of Origin); 18. person means a natural person or an enterprise; 19. person of a Party means a national or an enterprise of a Party; 20. regional government or regional level of government means,
(a) for the United States, a state of the United States, the District of
Colombia, or Puerto Rico; and (b) for Australia, a state of Australia, the Australian Capital Territory, or
the Northern Territory;
21. Safeguards Agreement means the Agreement on Safeguards,
contained in Annex 1A to the WTO Agreement; 22. service supplied in the exercise of governmental authority means
any service which is supplied neither on a commercial basis, nor in competition with one or more
service suppliers; 23. SPS Agreement means the Agreement on Application of Sanitary
and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement; 24. state enterprise means an enterprise that is owned, or controlled
through ownership interests, by the central or a regional government of a Party; 25. TBT Agreement means the Agreement on Technical Barriers to
Trade, contained in Annex 1A to the WTO Agreement; 26. territory means, with respect to a Party, the territory of that
Party as set out in Annex 1-A to this Agreement; 27. textile or apparel good means a good listed in the Annex to the
Agreement on Textiles and Clothing; 28. TRIPS Agreement means the Agreement on Trade-Related Aspects of
Intellectual Property Rights, contained in Annex 1C to the WTO Agreement; 29. WTO means the World Trade Organization; and 30. WTO Agreement means the Marrakesh Agreement Establishing the
World Trade Organization, done on April 15, 1994.
ANNEX 1-A CERTAIN DEFINITIONS
For the purposes of this Agreement: 1. national means:
(a) with respect to Australia, an Australian citizen as defined in the Australian Citizenship Act 1948, or a permanent resident; and (b) with respect to the United States, a national of the United States as
defined in Title III of the Immigration and Nationality Act or a permanent
resident; and
2. territory means:
(a) with respect to Australia, the territory of the Commonwealth of
Australia:
(i) excluding all external territories other than the Territory of Norfolk
Island, the Territory of Christmas Island, the Territory of Cocos (Keeling) Islands, the Territory of Ashmore and Cartier Islands, the Territory of Heard Island and McDonald Islands, and the Coral Sea Islands Territory; and
(ii) including Australia’s territorial sea, contiguous zone, exclusive
economic zone, and continental shelf; and
(b) with respect to the United States:
(i) the customs territory of the United States, which includes the 50 states,
the District of Columbia, and Puerto Rico; (ii) the foreign trade zones located in the United States and Puerto Rico;
and (iii) any areas beyond the territorial seas of the United States within
which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources.
CHAPTER TWO NATIONAL TREATMENT AND MARKET
ACCESS FOR GOODS
ARTICLE 2.1 : SCOPE AND COVERAGE
Except as otherwise provided, this Chapter applies to trade in goods of a
Party.
Section A : National Treatment
ARTICLE 2.2 : NATIONAL TREATMENT
Each Party shall accord national treatment to the goods of the other Party in
accordance with Article III of GATT 1994, including its interpretative notes. To this end,
Article III of GATT 1994 and its interpretative notes are incorporated into and made a part of
this Agreement, subject to Annex 2-A (Application of Chapter 2).
Section B : Tariffs
ARTICLE 2.3 : ELIMINATION OF CUSTOMS
DUTIES
1. Except as otherwise provided in this Agreement, each Party shall
progressively eliminate its customs duties on originating goods of the other Party in accordance with
Annex 2-B (Tariff Elimination). 2. Neither Party may increase an existing customs duty or introduce a new
customs duty on imports of an originating good, other than as permitted by this Agreement,
subject to Annex 2-A (Application of Chapter 2). ARTICLE 2.4 : CUSTOMS VALUE
The Parties shall apply the provisions of the Customs Valuation Agreement for
the purposes of determining the customs value of goods traded between the Parties. ARTICLE 2.5 : TEMPORARY ADMISSION
1. Each Party shall grant duty-free temporary admission for the following
goods, imported by or for the use of a resident of the other Party:
(a) professional equipment, including software and broadcasting and
cinematographic equipment, necessary for carrying out the business activity, trade, or
profession of a person who qualifies for temporary entry pursuant to the laws of the
importing Party; (b) goods intended for display or demonstration at exhibitions, fairs, or
similar events, including commercial samples for the solicitation of orders, and advertising films and recordings; and (c) goods temporarily admitted for sports purposes,
regardless of their origin.
2. Neither Party may condition the duty-free temporary admission of a good
referred to in paragraph 1, other than to require that such good:
(a) be used solely by or under the personal supervision of a national or
resident of the other Party in the exercise of the business activity, trade, or profession of
that person; (b) not be sold, leased, or consumed while in its territory; (c) be accompanied by a security in an amount no greater than the charges
that would otherwise be owed on entry or final importation, releasable on exportation of
the good; (d) be capable of identification when exported; (e) be exported on or before the departure of that person or within such
other period as is reasonably related to the purpose of the temporary admission, not to
exceed three years after the date of importation; (f) be imported in no greater quantity than is reasonable for its intended
use; and (g) be otherwise admissible into the Party’s territory under its laws.
3. If any condition that a Party imposes under paragraph 2 has not been
fulfilled, the Party may apply the customs duty and any other charge that would normally be owed
on entry or final importation of the good. 4. Each Party, through its customs authorities, shall adopt procedures
providing for the expeditious release of the goods described in paragraph 1. To the extent
possible, when such goods accompany a national or resident of the other Party seeking temporary
entry, and are imported by that person for use in the exercise of a business activity,
trade, or profession of that person, the procedures shall allow for the goods to be released
simultaneously with the entry of that person subject to the necessary documentation required by the customs
authorities of the importing Party. 5. Each Party shall, at the request of the person concerned and for reasons
deemed valid by its customs authorities, extend the time limit for temporary admission beyond
the period initially fixed. 6. Each Party shall permit temporarily admitted goods to be exported through
a customs port other than that through which they were imported. 7. Each Party shall relieve the importer of liability for failure to export a
temporarily admitted good on presentation of satisfactory proof to the Party’s customs
authorities that the good has been destroyed within the original time limit for temporary
admission or any lawful extension. Prior approval will have to be sought from the customs authorities
of the importing Party before the good can be so destroyed. 8. Subject to Chapters Ten (Cross-Border Trade in Services) and Eleven
(Investment):
(a) each Party shall allow a container used in international traffic that
enters its territory from the territory of the other Party to exit its territory on any
route that is reasonably related to the economic and prompt departure of the container; (b) neither Party may require any bond or impose any penalty or charge solely
by reason of any difference between the container’s port of entry and its port
of departure; (c) neither Party may condition the release of any obligation, including any
bond, that it imposes in respect of the entry of a container into its territory on its
exit through any particular port of departure; and (d) neither Party may require that the carrier bringing a container from the
territory of the other Party into its territory be the same carrier that takes the
container to the territory of the other Party.
ARTICLE 2.6 : GOODS RE-ENTERED
AFTER REPAIR OR ALTERATION
1. Neither Party may apply a customs duty to a good, regardless of its
origin, that re-enters its territory after that good has been exported temporarily from its
territory to the territory of the other Party for repair or alteration, regardless of whether the repair or
alteration could be performed in its territory. 2. Neither Party may apply a customs duty to a good, regardless of its
origin, imported temporarily from the territory of the other Party for repair or alteration. 3. For the purposes of this Article:
(a) the repairs or alterations shall not destroy the essential
characteristics of the good, or change it into a different commercial item; (b) operations carried out to transform unfinished goods into finished goods shall not be considered repairs or alterations; and
(c) parts or pieces of the goods may be subject to repairs or alterations.
ARTICLE 2.7 : DUTY-FREE
ENTRY OF COMMERCIAL SAMPLES
OF NEGLIGIBLE VALUE AND PRINTED ADVERTISING MATERIALS
Each Party shall grant duty-free entry to commercial samples of negligible
value, and to printed advertising materials, imported from the territory of the other Party,
regardless of their origin, but may require that:
(a) the samples be imported solely for the solicitation of orders for goods
of, or services provided from the territory of, the other Party or a non-Party; or (b) the advertising materials be imported in packets that each contain no
more than one copy of each such material and that neither those materials nor packets
form part of a larger consignment.
ARTICLE 2.8 : WAIVER OF CUSTOMS
DUTIES
1. Neither Party may adopt a new waiver of customs duties, or expand with
respect to existing recipients or extend to any new recipient the application of an
existing waiver of customs duties, where the waiver is conditioned, explicitly or implicitly, on
the fulfilment of a performance requirement. 2. Neither Party may condition, explicitly or implicitly, the continuation of
any existing waiver of customs duties on the fulfilment of a performance requirement. 3. This Article shall not apply to drawback or duty deferral programs.
Section C : Non-Tariff Measures
ARTICLE 2.9 : IMPORT AND EXPORT
RESTRICTIONS
1. Except as otherwise provided in this Agreement, neither Party may adopt or
maintain any prohibition or restriction on the importation of any good of the other Party
or on the exportation or sale for export of any good destined for the territory of the other Party,
except in accordance with Article XI of GATT 1994, including its interpretative notes, and to this
end Article XI of GATT 1994, including its interpretative notes, is incorporated into and made
a part of this Agreement. 2. The Parties understand that the rights and obligations incorporated by
paragraph 1 prohibit, in any circumstances in which any other form of restriction is
prohibited, import licensing conditioned on the fulfilment of a performance requirement, export
price requirements, and, except as permitted in enforcement of countervailing and antidumping
orders and undertakings, import price requirements. 3. In the event that a Party adopts or maintains a prohibition or restriction
on the importation from or exportation to a non-Party of a good, nothing in this
Agreement shall be construed as preventing the Party from:
(a) limiting or prohibiting the importation from the territory of the other
Party of such good of that non-Party; or (b) requiring as a condition of export of such good of the Party to the
territory of the other Party, that the good not be re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.
4. Paragraphs 1 through 3 shall not apply to the measures set out in Annex
2-A. 5. Nothing in this Article shall be construed as affecting a Party’s rights
and obligations under the Agreement on Textiles and Clothing. ARTICLE 2.10 : ADMINISTRATIVE FEES
AND FORMALITIES
1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994
and its interpretive notes, that all fees and charges of whatever character (other
than customs duties, charges equivalent to an internal tax or other internal charges applied
consistently with Article III:2 of GATT 1994, and antidumping and countervailing duties applied
pursuant to a Party’s law), imposed on or in connection with importation or exportation, are
limited in amount to the approximate cost of services rendered and do not represent indirect
protection of domestic products or a taxation of imports or exports for fiscal purposes. 2. Neither Party may require consular transactions, including related fees
and charges, in connection with the importation of any good of the other Party. 3. Each Party shall make available on the Internet a current list of the fees
and charges it imposes in connection with importation or exportation. ARTICLE 2.11 : EXPORT TAXES
Neither Party may adopt or maintain any duty, tax, or other charge on the
export of any good to the territory of the other Party, unless such duty, tax, or charge is adopted
or maintained on any such good when destined for consumption in its territory.
Section D : Other Measures
ARTICLE 2.12 : MERCHANDISE PROCESSING
FEE
Neither Party may adopt or maintain a merchandise processing fee on
originating goods.
Section E : Institutional Provisions
ARTICLE 2.13 : COMMITTEE ON TRADE
IN GOODS
1. The Parties hereby establish a Committee on Trade in Goods, comprising
representatives of each Party. 2. The Committee shall meet on the request of either Party or the Joint
Committee established in Chapter 21 (Institutional Arrangements and Dispute Settlement)
to consider any matter arising under this Chapter, Chapter Five (Rules of Origin), or Chapter
Six (Customs Administration). 3. The Committee’s functions shall include:
(a) promoting trade in goods between the Parties; and (b) addressing barriers to trade in goods between the Parties, especially
those related to the application of non-tariff measures, and, if appropriate, referring
such matters to the Joint Committee for its consideration.
Section F : Definitions
ARTICLE 2.13 : DEFINITIONS
For the purposes of this Chapter: 1. advertising films and recordings means recorded visual media or
audio materials, consisting essentially of images and/or sound, showing the nature or
operation of goods or services offered for sale or lease by a person established or resident in the
territory of a Party, provided that such materials are of a kind suitable for exhibition to
prospective customers but not for broadcast to the general public; 2. commercial samples of negligible value means commercial samples
having a value, individually or in the aggregate as shipped, of not more than one U.S.
dollar, or the equivalent amount in Australian currency, or so marked, torn, perforated, or otherwise
treated that they are unsuitable for sale or for use except as commercial samples; 3. consular transactions means requirements that goods of a Party
intended for export to the territory of the other Party must first be submitted to the supervision
of the consul of the importing Party in the territory of the exporting Party for the purpose of
obtaining consular invoices or consular visas for commercial invoices, certificates of origin,
manifests, shippers’ export declarations, or any other customs documentation required on or in
connection with importation; 4. consumed means:
(a) actually consumed; or (b) further processed or manufactured so as to result in a substantial change
in the value, form, or use of the good, or in the production of another good;
5. drawback means measures in which a Party refunds the amount of
customs duties paid on a good imported into its territory, on condition that the good is:
(a) subsequently exported to the territory of the other Party; (b) substituted by an identical or similar good exported to the territory of
the other Party; (c) used as a material in the production of another good that is subsequently
exported to the territory of another Party; (d) substituted by an identical or similar good used as a material in the
production of another good that is subsequently exported to the territory of another Party;
6. duty-free means free of customs duty; 7. duty deferral program includes measures such as those governing
foreign-trade zones, temporary importations under bond, bonded warehouses, and inward processing
programs; 8. goods intended for display or demonstration includes their
component parts, ancillary apparatus, and accessories; 9. goods temporarily admitted for sports purposes means:
(a) sports requisites for use in sports contests, demonstrations, or
training; and (b) for such events as deemed valid by competent authorities,
in the territory of the Party into whose territory such goods are
admitted;
10. import licensing means an administrative procedure requiring the
submission of an application or other documentation (other than that generally required for
customs clearance purposes) to the relevant administrative body as a prior condition for
importation into the territory of the importing Party; 11. performance requirement means a requirement that:
(a) a given level or percentage of goods or services be exported; (b) goods or services of the Party granting a waiver of customs duties or an
import license be substituted for imported goods or services; (c) a person benefiting from a waiver of customs duties or an import license
purchase other goods or services in the territory of the Party granting the waiver of
customs duties or the import license, or accord a preference to domestically produced goods or services; (d) a person benefiting from a waiver of customs duties or an import license
produce goods or supply services, in the territory of the Party granting the waiver
of customs duties or the import license, with a given level or percentage of
domestic content; or (e) relates in any way the volume or value of imports to the volume or value
of exports or to the amount of foreign exchange inflows; and
12. printed advertising materials means those goods classified in
Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade
catalogues, yearbooks published by trade associations, tourist promotional materials, and posters,
that are used to promote, publicize, or advertise a good or service, or are essentially
intended to advertise a good or service, and are supplied free of charge.
ANNEX 2-A APPLICATION OF CHAPTER TWO
Section A-Measures of the United States
Articles 2.2, 2.3, and 2.9 shall not apply to:
(a) controls by the United States on the export of logs of all species; (b)
(i) measures under existing provisions of the Merchant Marine Act of
1920, 46 App. U.S.C. § 883; the Passenger Vessel Act, 46 App. U.S.C. §§ 289, 292, and 316; and 46 U.S.C. § 12108, to the extent that such measures were mandatory legislation at the time of the accession of the United States to the
General Agreement on Tariffs and Trade 1947 (“GATT 1947”) and have not been amended so as to decrease their conformity with Part II of GATT 1947; (ii) the continuation or prompt renewal of a non-conforming provision of any statute referred to in clause (i); and
(iii) the amendment to a non-conforming provision of any statute referred to
in clause (i) to the extent that the amendment does not decrease the conformity of the provision with Articles 2.2 and 2.9; and
(c) actions by the United States authorized by the Dispute Settlement Body of
the WTO.
Section B – Measures of Australia
Articles 2.2, 2.3, and 2.9 shall not apply to:
(a) controls by Australia on the exports of woodchips and unprocessed forest products (e.g., whole logs) sourced from native forests outside Regional
Forest Agreement regions, or plantation forests within States where Codes of
Practice have not been approved by the Australian Government, and Sandalwood (Santalum spicatum) sourced from any State, the Australian Capital
Territory, or the Northern Territory; (b) controls on importation of second hand motor vehicles under Section 17A
of the Motor Vehicles Standards Act of 1989 and the Motor Vehicles Standards Regulations of 1989; (c) wheat marketing arrangements under the Wheat Marketing Act 1989 and the Customs (Prohibited Exports) Regulations 1958, as amended;
(d) grain marketing arrangements under the New South Wales Grain Marketing
Act 1991 and Marketing of Primary Products Act 1983, the South Australian Barley Marketing Act 1993, the Western Australian Grain Marketing Act 2002
and Grain Marketing Regulations 2002, and the Queensland Grain Industry (Restructuring) Act 1991, as amended; (e) sugar marketing arrangements under the Queensland Sugar Industry
Amendment Act 2000, as amended; (f) rice marketing arrangements under the New South Wales Marketing of
Primary Products Act 1983, as amended; (g) horticulture export efficiency licensing arrangements under the Horticulture Marketing and Research and Development Services Act 2000 and Horticulture Marketing and Research and Development (Export Efficiency) Regulations 2002, as amended;
(h) the provisions of and measures under the Livestock Export (Merino)
Orders, made under the Export Control Act of 1982, as amended; and (i) actions by Australia authorized by the Dispute Settlement Body of the
WTO.
ANNEX 2-B TARIFF ELIMINATION
1. Base Rates of Customs Duty. Except as otherwise indicated, the base rates
of customs duty set forth in this schedule reflect the HTSUS Column 1 General rates of
duty in effect January 1, 2004, for the United States and the general rates of duty in
Schedule 3 to the Australian Customs Tariff Act 1995, in effect January 1, 2004, for Australia. 2. Staging. Except as otherwise provided in a Party’s Schedule attached to
this Annex, the following staging categories apply to the elimination of duties by each Party
pursuant to Article 2.3:
(a) duties on goods provided for in the items in staging category A shall be eliminated entirely and such goods shall be duty-free on the date this
Agreement enters into force; (b) duties on goods provided for in the items in staging category B shall be
removed in equal annual stages beginning on the date this Agreement enters into
force, and such goods shall be duty-free, effective January 1 of year four; (c) duties on goods provided for in the items in staging category C shall be
removed in equal annual stages beginning on the date this Agreement enters into
force, and such goods shall be duty-free, effective January 1 of year eight; (d) duties on goods provided for in the items in staging category D shall be
removed in equal annual stages beginning on the date this Agreement enters into
force, and such goods shall be duty-free, effective January 1 of year ten; and (e) goods provided for in staging category E shall continue to receive
duty-free treatment.
ANNEX 2-C PHARMACEUTICALS
1. AGREED PRINCIPLES
The Parties are committed to facilitating high quality health care and
continued improvements in public health for their nationals. In pursuing these objectives, the Parties
are committed to the following principles:
(a) the important role played by innovative pharmaceutical products in
delivering high quality health care; (b) the importance of research and development in the pharmaceutical industry
and of appropriate government support, including through intellectual property protection and other policies; (c) the need to promote timely and affordable access to innovative
pharmaceuticals through transparent, expeditious, and accountable procedures, without
impeding a Party’s ability to apply appropriate standards of quality, safety, and
efficacy; and (d) the need to recognize the value of innovative pharmaceuticals through the operation of competitive markets or by adopting or maintaining procedures
that appropriately value the objectively demonstrated therapeutic significance of
a pharmaceutical.
2. TRANSPARENCY 2C-1
To the extent that a Party’s federal healthcare authorities operate or
maintain procedures for listing new pharmaceuticals or indications for reimbursement purposes, or for
setting the amount of reimbursement for pharmaceuticals, under its federal healthcare programs,
it shall:
(a) ensure that consideration of all formal proposals for listing are
completed within a specified time; (b) disclose procedural rules, methodologies, principles, and guidelines used
to assess a proposal; (c) afford applicants timely opportunities to provide comments at relevant
points in the process; (d) provide applicants with detailed written information regarding the basis
for recommendations or determinations regarding the listing of new
pharmaceuticals or for setting the amount of reimbursement by federal healthcare authorities; (e) provide written information to the public regarding its recommendations
or determinations, while protecting information considered to be confidential
under the Party’s law; and (f) make available an independent review process that may be invoked at the
request of an applicant directly affected by a recommendation or determination.
3. MEDICINES WORKING GROUP
(a) The Parties hereby establish a Medicines Working Group. (b) The objective of the Working Group shall be to promote discussion and
mutual understanding of issues relating to this Annex (except those issues covered
in paragraph 4), including the importance of pharmaceutical research and development to continued improvement of healthcare outcomes.2C-2 (c) The Working Group shall comprise officials of federal government agencies responsible for federal healthcare programs and other appropriate federal government officials.
4. REGULATORY COOPERATION
The Parties shall seek to advance the existing dialogue between the
Australian Therapeutic Goods Administration and the U.S. Food and Drug Administration with a view to
making innovative medical products more quickly available to their nationals. 5. DISSEMINATION OF INFORMATION
Each Party shall permit a pharmaceutical manufacturer to disseminate to
health professionals and consumers through the manufacturer’s Internet site registered in the
territory of the Party, and on other Internet sites registered in the territory of the Party linked to that
site, truthful and not misleading information regarding its pharmaceuticals that are approved for
sale in the Party’s territory as is permitted to be disseminated under the Party’s laws,
regulations, and procedures, provided that the information includes a balance of risks and benefits and
encompasses all indications for which the Party’s competent regulatory authorities have
approved the marketing of the pharmaceuticals. 6. DEFINITIONS
For the purposes of this Annex:
federal healthcare program means a health care program in which the
Party’s federal health authorities make the decisions regarding matters to which this Annex applies.
CHAPTER THREE
AGRICULTURE
ARTICLE 3.1 : MULTILATERAL COOPERATION
1. The Parties shall work together to reach an agreement on agriculture in
the WTO that substantially improves market access for agricultural goods, reduces, with a
view to phasing out, all forms of agricultural export subsidies, develops disciplines that
eliminate restrictions on a person’s right to export, and substantially reduces trade-distorting domestic
support. 2. The Parties shall consult on agricultural issues arising in the WTO and in
other multilateral fora in which they both participate. ARTICLE 3.2 : COMMITTEE ON AGRICULTURE
1. The Parties hereby establish a Committee on Agriculture, comprising
representatives of each Party. 2. The Committee shall provide a forum for:
(a) promoting trade in agricultural goods between the Parties; (b) addressing barriers to trade in agricultural goods; (c) conducting consultations between the Parties on agricultural export
competition issues; and (d) considering any matters arising under this Chapter.
3. The Committee shall meet at least once a year unless the Parties otherwise
agree. 4. The Committee shall report the results of each meeting to the Joint
Committee. ARTICLE 3.3 : EXPORT SUBSIDIES
1. Except as provided in paragraph 2, neither Party may introduce or maintain
any export subsidy on any agricultural good destined for the territory of the other
Party. 2. Where an exporting Party considers that a non-Party is exporting an
agricultural good to the territory of the other Party with the benefit of export subsidies, the
importing Party shall, on written request of the exporting Party, consult with the exporting Party with
a view to agreeing on specific measures that the importing Party may adopt to counter the effect
of such subsidized imports. If the importing Party adopts the agreed-upon measures, the
exporting Party shall refrain from applying any export subsidy to exports of such good to the
territory of the importing Party. ARTICLE 3.4 : AGRICULTURAL SAFEGUARD
MEASURES
1. Notwithstanding Article 2.3 (Elimination of Duties), a Party may apply a
measure in the form of an additional customs duty on an originating agricultural good listed
in that Party’s Schedule to Annex 3-A (Agricultural Safeguard Measures), provided that the
conditions in paragraphs 2 through 5 are met. The sum of any such additional customs duty
and any other customs duty on such good shall not exceed the lesser of:
(a) the prevailing most-favoured-nation (“MFN”) applied rate of duty; or (b) the MFN applied rate of duty in effect on the day immediately preceding
the date of entry into force of this Agreement.
2. The additional customs duty under paragraph 1 shall be set according to
each Party’s Schedule to Annex 3-A. 3. Neither Party may apply or maintain an agricultural safeguard measure and
at the same time apply or maintain, with respect to the same good:
(a) a safeguard measure under Chapter Nine (Safeguards); or (b) a measure under Article XIX of GATT 1994 and the Safeguards Agreement.
4. Neither Party may apply or maintain an agricultural safeguard measure on
an originating agricultural good:
(a) on or after the date that a good is subject to duty-free treatment under
the Party’s Schedule to Annex 2-B, except as provided in Section C of Annex 3-A; or (b) that increases the in-quota duty on a good subject to a tariff-rate
quota.
5. A Party shall implement an agricultural safeguard measure in a transparent
manner. Within 60 days after applying a measure, the Party applying the measure shall
notify the Party whose good is subject to the measure, in writing, and shall provide it
relevant data concerning the measure. On request, the Party applying the measure shall consult with
the Party whose good is subject to the measure regarding the application of the measure. 6. The operation of this Article may be the subject of discussion and review
in the Committee on Agriculture. On request of either Party, the Committee on
Agriculture shall review a trigger price set out in Annex 3-A. ARTICLE 3.5 : ADMINISTRATION OF TARIFF-RATE
QUOTAS
Where an importing Party considers that an exporting Party has increased its
imports of an agricultural good of a non-Party and thereby increased its exports of a
domestically-produced good subject to a tariff-rate quota administered by the importing Party, the exporting Party shall, on the written request of the
importing Party, immediately consult with the importing Party to develop appropriate actions
to remedy the situation. ARTICLE 3.6 : REVIEW OF DAIRY
MARKET ACCESS COMMITMENTS
On request of either Party after year 20 of the Agreement, the Parties shall
consult on and consider the possibility of modifying market access commitments for the dairy
goods listed in each Party’s Schedule to Annex 2-B. An agreement by the Parties to modify the
market access commitment on a dairy good listed in Annex 2-B, when approved by both Parties
in accordance with their applicable legal procedures, shall supersede the terms established
for the good in each Party’s Schedule to Annex 2-B. ARTICLE 3.7 : DEFINITIONS
For the purposes of this Chapter: 1. agricultural goods means those agricultural products referred to in
Article 2 of the WTO
Agreement on Agriculture, contained in Annex 1A to the WTO Agreement;
2. agricultural safeguard measure means a measure described in Article
3.4.1; and 3. export subsidy shall have the meaning assigned to that term in
Article 1(e) of the WTO
Agreement on Agriculture, contained in Annex 1A to the WTO Agreement,
including any amendment of that article.
ANNEX 3-A AGRICULTURAL SAFEGUARD MEASURES
Schedule of the United States Section A : Price-Based Safeguard for Horticulture
1. The United States may apply an agricultural safeguard measure, pursuant to
Article 3.4, on an originating agricultural good listed in this Section if the good enters
the customs territory of the United States at a unit import price below the trigger price for that
good set out in this Section.
(a) The unit import price shall be determined on the basis of the F.O.B.
import price of the good in U.S. dollars. (b) The trigger prices shall reflect historic unit import values for the
products concerned.
2. For the purposes of Article 3.4.2, any additional customs duty shall
conform to the following schedule:
(a) if the difference between the unit import price of the good expressed in
terms of domestic currency (“import price”) and the trigger price listed in this
Section for the good is less than or equal to 10 percent of the trigger price, no
additional duty shall be imposed; (b) if the difference between the import price and the trigger price is
greater than 10 percent but less than or equal to 40 percent of the trigger price, the
additional duty shall equal 30 percent of the difference between the MFN rate of duty as described in Article 3.4.1 and the tariff rate applied to the good in the
U.S. Schedule to Annex 2-B; (c) if the difference between the import price and the trigger price is
greater than 40 percent but less than or equal to 60 percent of the trigger price, the
additional duty shall equal 50 percent of the difference between the MFN rate of duty as described in Article 3.4.1 and the tariff rate applied to the good in the
U.S. Schedule to Annex 2-B; (d) if the difference between the import price and the trigger price is
greater than 60 percent but less than or equal to 75 percent of the trigger price, the
additional duty shall equal 70 percent of the difference between the MFN rate of duty as described in Article 3.4.1 and the tariff rate applied to the good in the
U.S. Schedule to Annex 2-B; and (e) if the difference between the import price and the trigger price is
greater than 75 percent of the trigger price, the additional duty shall equal 100 percent of
the difference between the MFN rate of duty as described in Article 3.4.1 and the tariff rate applied to the good in the U.S. Schedule to Annex 2-B.
United States Horticulture Safeguard List
(US$/Kg or US$/Liter where noted) | HS | Description
| Trigger
Price | | 0712202000 | ONION POWDER OR FLOUR
| 0.77 | | 0712204000 | ONIONS, DRIED, EXCEPT POWDER
OR FLOUR | 1.26 | | 0712904020 |
GARLIC POWDER OR FLOUR
| 0.53 | | 0712904040 |
GARLIC, DRIED, EXCEPT POWDER
OR FLOUR | 0.48 | | 2002100020
| TOMATOES, PREPARED/PRESERVED,
WHOLE OR IN PIECES, IN CONTAINERS HOLDING LESS THAN 1.4 KG | 0.41 | |
2002100080
| TOMATOES PREPARED/PRESERVED IN
CONTAINERS 1.4KG OR MORE, NESOI | 0.43 | | 2002908010
| TOMATO PASTE IN CONTAINERS
HOLDING LESS THAN 1.4 KG | 0.64 | | 2002908020
| TOMATO PASTE, IN CONTAINERS
HOLDING 1.4 KG OR MORE | 0.56 | | 2002908030
| TOMATO PUREE IN CONTAINERS
HOLDING LESS THAN 1.4 KG | 0.46 | | 2002908040
| TOMATO PUREE, IN CONTAINERS
HOLDING 1.4 KG OR MORE | 0.31 | | 2002908050
| TOMATOES PREPARED/PRESERVED
NESOI | 0.69 | | 2005600000
| ASPARAGUS, PREPARED OR
PRESERVED NESOI, NOT FROZEN | 1.59 | | 2008400020
| PEARS, PREPARED/PRESERVED
NESOI, IN CONTAINERS LESS THAN 1.4 KG | 0.65 | | 2008400040
| PEARS, PREPARED/PRESERVED
NESOI, IN CONTAINERS OF 1.4 KG OR MORE | 0.58 | | 2008504000
| APRICOTS, PREPARED OR
PRESERVED NESOI | 0.90 | | 2008702020
| PEACHES, PREPARED/PRESERVED
NESOI, IN CONTAINERS LESS THAN 1.4 KG EACH | 0.32 | |
2008702040
| PEACHES, PREPARED/PRESERVED
NESOI, IN CONTAINERS 1.4 KG OR MORE EACH | 0.54 | |
2008929030
| FRUIT MIXTURES WITH PEACHES OR
PEARS PACKED IN LIQUID MEDIUM IN AIRTIGHT CONTAINERS HOLDING LESS THAN 1.4
KG EACH | 0.83 | | 2008929035 |
FRUIT MIXTURES WITH PEACHES OR
PEARS PACKED IN LIQUID MEDIUM IN AIR TIGHT CONTAINERS HOLDING GREATER THAN
1.4 KG | 0.75 | | 2008929040
| FRUIT MIXTURES
CONTAININGORANGES OR GRAPEFRUIT PACKED IN LIQUID MEDIUM IN AIRTIGHT
CONTAINERS | 1.21 | | 2008929050
| FRUIT MIXTURES NESOI PACKED IN
LIQUID MEDIUM IN AIRTIGHT CONTAINERS | 0.80 | | 2009110020
| ORANGE JUICE UNFERMENTED
FROZEN IN CONTAINERS UNDER .946 LITER (IN LITERS) | 0.23 | |
2009110040
| ORANGE JUICE UNFERMENTED
FROZEN IN CONTAINERS OF .946-3.785 LITER (IN LITERS) | 0.23 | |
2009110060
| ORANGE JUICE UNFERMENTED
FROZEN IN CONTAINERS OVER 3.785 LITER (IN LITERS) | 0.20 | |
2009124500
| ORANGEUICE,UNFERMENTED,NOT
FROZEN, NESOI, <20 BRIX IN LITERS | 0.49 | | 2009190000
| ORANGE JUICE, UNFERMENTED,
NESOI IN LITERS | 0.49 | | 2009610020
| GRAPE JUICE & MUST,
UNFERMENTED, NOT CONCENTRATED IN LITERS | 0.56 | |
2009610040
| GRAPE JUICE & MUST, <20 BRIX,
CONCENTRATED FROZEN (IN LITERS) | 0.34 | | 2009610060
| GRAPE JUICE & MUST, <20 BRIX,
CONCENTRATED NOT FROZEN (IN LITERS) | 0.27 | | 2009690040
| GRAPE JUICE & MUST, NESOI,
FROZEN (IN LITERS) | 0.32 | | 2009690060
| GRAPE JUICE & MUST, NESOI, NOT
FROZEN (IN LITERS) | 0.25 | | 2103204020 |
TOMATO SAUCES NESOI IN
CONTAINERS LESS THAN 1.4 KG | 0.84 | | 2103204040
| TOMATO SAUCES NESOI IN
CONTAINERS HOLDING 1.4 KG OR MORE | 0.94 |
Section B: Quantity-Based Safeguard for Beef
1. The United States shall apply an agricultural safeguard measure in years
nine through 18 of the Agreement on originating agricultural goods listed in paragraph 3 of
Annex I of the U.S. Schedule to Annex 2-B if, in any calendar year, the aggregate volume of
imports of goods exceeds 110 percent of the volume set out for the goods in that year in
paragraph 3 of Annex I of the U.S. Schedule to Annex 2-B. 2. For the purposes of Article 3.4.2, the additional customs duty shall equal
75 percent of the difference between the MFN rate of duty as described in Article 3.4.1 and
the applicable tariff rate in the U.S. Schedule to Annex 2-B on the agricultural goods. 3. The United States shall maintain an agricultural safeguard measure under
this Section only until the end of the calendar year in which it applies the measure. 4. The United States shall have the discretion not to apply an agricultural
safeguard measure under this Section.
Section C: Price-Based Safeguard for Beef
1. The United States shall apply an agricultural safeguard measure, pursuant
to Article 3.4, on a good entered under subheadings 02011050, 02012080, 02013080, 02021050,
02022080, or 02023080 of the Harmonized Tariff Schedule of the United States starting in
year 19 of the Agreement. 2. For the purposes of Article 3.4.2, the additional customs duty shall equal
65 percent of the MFN rate of duty for the good as described in Article 3.4.1. 3. The United States shall apply the measure as follows:
(a) if the monthly average index price falls below the 24-month trigger price
in any two months during the previous quarter of any calendar year, the United
States shall apply the measure during the current quarter of the calendar year; or (b) if the monthly average index price falls below the 24-month trigger price
in any month of the fourth quarter of any calendar year, or in the month immediately preceding the fourth quarter, the United States shall apply the measure
during the remainder of the fourth quarter of the calendar year.
4. The measure shall apply to goods that enter the United States in any
calendar year in aggregate quantities greater than the sum of:
(a) the quantity of goods eligible to be entered under Additional Note 3 to
Chapter 2 of the Harmonized Tariff Schedule of the United States, identified by
certificates issued by the Government of Australia; and (b) 70,000 metric tons, which quantity shall grow at a compound annual rate
of 0.6 percent starting in year 19 of the Agreement, identified by certificates
issued by the Government of Australia.
5. The United States shall have the discretion not to apply an agricultural
safeguard measure under this Section. 6. The Parties shall review the operation of this Section every five years
after the date of entry into force of this Agreement. 7. For the purposes of this Section:
(a) monthly average index price means the monthly average index price
for Wholesale Boxed Beef Cut-Out Value Select 1-3 Central U.S. 600-750 lbs., or
its equivalent, as reported by the United States Department of Agriculture’s Agricultural Marketing Service; and (b) 24-month trigger price means the price that is 6.5 percent less
than the average of the previous 24 monthly average index prices.
CHAPTER FOUR
TEXTILES AND APPAREL
ARTICLE 4.1: BILATERAL EMERGENCY
ACTIONS
1. If, as a result of the reduction or elimination of a customs duty under
this Agreement, a textile or apparel good benefiting from preferential treatment under this
Agreement is being imported into the territory of a Party in such increased quantities, in
absolute terms or relative to the domestic market for that good, and under such conditions as to cause
serious damage, or actual threat thereof, to a domestic industry producing a like or directly
competitive good, the importing Party may, to the extent and for such time as may be necessary to
prevent or remedy such damage and to facilitate adjustment, take emergency action, consisting
of an increase in the rate of customs duty on the good to a level not to exceed the lesser of:
(a) the most-favoured-nation (MFN) applied rate of duty in effect at the time
the action is taken; and (b) the MFN applied rate of duty in effect on the date of entry into force of
this Agreement.
2. In determining serious damage, or actual threat thereof, the importing
Party:
(a) shall examine the effect of increased imports from the exporting Party on
the particular industry, as reflected in changes in such relevant economic
variables as output, productivity, utilization of capacity, inventories, market share,
exports, wages, employment, domestic prices, profits, and investment, none of which is necessarily decisive; and (b) shall not consider changes in technology or consumer preference as
factors supporting a determination of serious damage or actual threat thereof.
3. The importing Party may take an emergency action under this Article only following an investigation by its competent authorities. 4. In the event that the importing Party decides to take an emergency action
under this Article, the importing Party shall deliver to the exporting Party, without
delay, written notice of its decision, and, on the request of the exporting Party, shall consult with
that Party. 5. In critical circumstances where delay would cause damage which it would be
difficult to repair, a Party may take emergency action under this Article on a provisional
basis pursuant to a preliminary determination that there is clear evidence that imports from the
exporting Party have increased as the result of the reduction or elimination of a customs duty
under this Agreement, and such imports are causing serious damage, or actual threat thereof, to a
domestic industry producing a like or directly competitive good. The duration of such a provisional measure shall
not exceed 200 days, during which time an investigation by its competent authorities shall
be undertaken. Any additional customs duty paid as a result of a provisional measure shall be
promptly refunded if the investigation does not result in a finding of serious damage or actual
threat thereof consistent with paragraph 1. The duration of any provisional measure shall be counted as
part of the period described in paragraph 6(a). 6. The following conditions and limitations shall apply to any emergency
action taken under this Article:
(a) no emergency action against a good may be maintained for a period
exceeding two years, except that the period may be extended by up to two years if the competent authorities of the importing Party determine, in conformity with
the procedures set out in this Article, that:
(i) the emergency action continues to be necessary to prevent or remedy serious damage and to facilitate adjustment by the domestic industry, and (ii) there is evidence that the industry is adjusting;
(b) no emergency action against a good may be taken or maintained beyond the period ending ten years after customs duties on that good have been
eliminated pursuant to this Agreement; (c) no emergency action may be taken by an importing Party against any
particular good of the exporting Party more than once; and (d) on termination of the emergency action, the rate of customs duty shall be
the rate that would have been in effect but for the emergency action.
7. The importing Party shall provide to the exporting Party mutually agreed
trade liberalizing compensation in the form of concessions having substantially
equivalent trade effects or equivalent to the value of the additional customs duties expected
to result from the emergency action. Such concessions shall be limited to textile or apparel
goods, unless the Parties otherwise agree. If the Parties are unable to agree on compensation,
the exporting Party may take tariff action having trade effects substantially equivalent to the
trade effects of the emergency action taken under this Article. The exporting Party may take such
tariff action against any goods of the importing Party. The exporting Party shall apply the
tariff action only for the minimum period necessary to achieve the substantially equivalent
trade effects. The importing Party’s obligation to provide trade compensation and the exporting
Party’s right to take tariff action shall terminate when the emergency action terminates. 8.
(a) Each Party retains its rights and obligations under Article XIX of the
GATT 1994 and the Safeguards Agreement, and the Agreement on Textiles and Clothing. (b) Neither Party may apply, with respect to the same good at the same time,
an emergency action under this Article and:
(i) a safeguard measure under Chapter Nine (Safeguards); or (ii) a measure under Article XIX of GATT 1994 and the Safeguards Agreement, or the Agreement on Textiles and Clothing.
ARTICLE 4.2: RULES OF ORIGIN
AND RELATED MATTERS
Rules of Origin
1. This Chapter, including its Annexes, and Chapter Five (Rules of Origin)
shall apply with respect to determining whether a textile or apparel good is an originating
good. 2. For greater clarity, the rules of origin set forth in this Agreement shall
not apply in determining the country of origin of a textile or apparel good for
non-preferential purposes.
Consultations
3. On the request of either Party, the Parties shall consult to consider
whether the rule of origin applicable to a particular textile or apparel good should be revised
to address issues of availability of supply of fibres, yarns, or fabrics in the territories of the
Parties. 4. In the consultations referred to in paragraph 3, each Party shall consider
all data presented by the other Party showing substantial production in its territory
of the particular good. The Parties shall consider that substantial production has been shown if a
Party demonstrates that its domestic producers are capable of supplying commercial quantities of the
good in a timely manner. 5. The Parties shall endeavour to conclude consultations within 60 days of a
request. An agreement between the Parties resulting from the consultations on revising a
rule of origin for a good shall supersede any prior rule of origin for such good when approved by
the Parties in accordance with Article 23.3 (Amendments).
De Minimis
6. A textile or apparel good that is not an originating good because certain
fibres or yarns used in the production of the component of the good that determines the
tariff classification of the good do not undergo an applicable change in tariff classification set out
in Annex 4-A, shall nonetheless be considered to be an originating good if the total weight of
all such fibres or yarns in that component is not more than seven percent of the total weight of that component.4-1
7. Notwithstanding paragraph 6, a good containing elastomeric yarns in the
component of the good that determines the tariff classification of the good shall be
considered to be an originating good only if such yarns are wholly formed in the territory of a
Party.
Treatment of Sets
8. Notwithstanding the textile and apparel specific rules of origin set out
in Annex 4-A, textile or apparel goods classifiable as goods put up in sets for retail sale
as provided for in General Rule of Interpretation 3 of the Harmonized System shall not be
regarded as originating goods unless each of the goods in the set is an originating good or the total
value of the non-originating goods in the set does not exceed ten percent of the customs value of the set. ARTICLE 4.3: CUSTOMS COOPERATION
1. The Parties shall cooperate for the purposes of:
(a) enforcing or assisting in the enforcement of their measures affecting
trade in textile or apparel goods; (b) ensuring the accuracy of claims of origin; (c) enforcing or assisting in the enforcement of measures implementing
international agreements affecting trade in textile or apparel goods; and (d) preventing circumvention of international agreements affecting trade in
textile or apparel goods.
2. On the request of the importing Party, the exporting Party shall conduct a
verification for purposes of enabling the importing Party to determine that a claim of origin
for a textile or apparel good is accurate. The exporting Party shall conduct such a
verification, regardless of whether an importer claims preferential treatment for the good. The exporting
Party may also conduct such a verification on its own initiative. 3. Where the importing Party has a reasonable suspicion that an exporter or
producer of the exporting Party is engaging in unlawful activity relating to trade in textile
or apparel goods, the exporting Party shall, on the request of the importing Party, conduct a
verification for purposes of enabling the importing Party to determine that the exporter or producer is
complying with applicable customs measures affecting trade in textile or apparel goods,
including measures that the exporting Party adopts and maintains pursuant to this Agreement and
measures of either Party implementing other international agreements affecting trade in textile
or apparel goods, and to determine that a claim of origin for a textile or
apparel good exported or produced by that person is accurate. For the purposes of this paragraph, a
reasonable suspicion of unlawful activity shall be based on relevant factual information of the
type set forth in Article 6.5 (Cooperation) or factors that indicate:
(a) circumvention by the exporter or producer of applicable customs measures affecting trade in textile or apparel goods, including measures adopted to implement this Agreement; or (b) the existence of conduct that would facilitate the violation of measures
relating to other international agreements affecting trade in textile or apparel goods.
4. The exporting Party, through its competent authorities, shall permit the
importing Party, through its competent authorities, to assist in a verification conducted in
response to a request under paragraph 2 or 3, including by conducting, along with the competent
authorities of the exporting Party, visits in the territory of the exporting Party to the
premises of an exporter, producer, or any person involved in the movement of a textile or apparel good
from the territory of the exporting Party to the territory of the importing Party. If an
exporter, producer, or other person refuses to consent to a visit by the competent authorities of the
importing Party, and if the importing Party is unable to make the determination described in paragraph 2
or 3 within 12 months after its request for a verification, the importing Party may take
appropriate action as described in paragraph 8. 5. In conducting a verification pursuant to paragraph 2 or 3, the exporting
Party shall coordinate its activities with the importing Party and shall conclude the
verification and report the results to the importing Party within a mutually agreed time. The report
shall include all documents and facts supporting any conclusion that the exporting Party
reaches. If the Parties cannot agree on a time for concluding the verification and providing a report
or if the exporting Party does not conclude the verification and report the results to the
importing Party within the agreed time, the importing Party may take appropriate action under paragraph
8. 6. Each Party shall provide to the other Party, consistent with its law,
production, trade, and transit documents and other information necessary to conduct verifications
under paragraphs 2 and 3. Any documents or information exchanged between the Parties in the
course of such a verification shall be treated in accordance with Article 22.4.2 (Disclosure
of Information). 7. While a verification is being conducted, the importing Party may,
consistent with its law, take appropriate action, which may include suspending the application of
preferential treatment, to:
(a) the textile or apparel good for which a claim of origin has been made, in
the case of a verification under paragraph 2; or (b) any textile or apparel goods exported or produced by the person subject
to a verification under paragraph 3, where the reasonable suspicion of unlawful activity relates to those goods.
8.
(a) If the importing Party is unable to make the determination described
in paragraph 2 within 12 months after its request for a verification, or makes a negative determination, it may, consistent with its laws, regulations, and procedures,
take appropriate action, including denying preferential treatment to the textile
or apparel good subject to the verification and to similar goods exported or
produced by the person that exported or produced the good. (b) If the importing Party is unable to make one of the determinations
described in paragraph 3 within 12 months after its request for a verification, or makes a negative determination, it may, consistent with its laws, regulations, and procedures, take appropriate action, including deny preferential treatment to
any textile or apparel good exported or produced by the person subject to the verification.
9.
(a) The importing Party may deny preferential treatment or entry under
paragraph 8 only after providing a written determination to the importer of the reason
for the denial. (b) If the importing Party takes action under paragraph 8 because it is
unable to make the determination described in paragraph 2 or 3, as the case may be, it may continue to take appropriate action under paragraph 8 until it receives
information sufficient to enable it to make that determination.
10. On the request of either Party, the Parties shall consult to resolve any
technical or interpretive difficulties that may arise under this Article or to discuss
ways to improve the effectiveness of their cooperative efforts. In addition, either Party may
request technical or other assistance from the other Party in implementing this Article. The Party
receiving such a request shall make every effort to respond favourably and promptly to it. ARTICLE 4.4: DEFINITIONS
For the purposes of this Chapter: 1. claim of origin means a claim that a textile or apparel good is an
originating good or a good of a Party; 2. exporting Party means the Party from whose territory a textile or
apparel good is exported; and 3. importing Party means the Party into whose territory a textile or
apparel good is imported.
Annex 4-A Textile Or Apparel Specific Rules of Origin For Chapters 42, 50 through 63, 70, and 94
Note: For the purposes of the rules in this Annex, a good is considered to be
“wholly” of a material if the good is made entirely of the material.
| Chapter 42 - Luggage |
4202.12 |
A change to subheading 4202.12 from any other chapter,
except from headings 54.07, 54.08 or 55.12 through 55.16 or tariff items
5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18,
5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25,
5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60. |
|
| 4202.22 |
A change to subheading 4202.22 from any other chapter,
except from headings 54.07, 54.08 or 55.12 through 55.16 or tariff items
5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18,
5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25,
5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60. |
|
| 4202.32 |
A change to subheading 4202.32 from any other chapter,
except from headings 54.07, 54.08 or 55.12 through 55.16 or tariff items
5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18,
5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25,
5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60. |
|
| 4202.92 |
A change to subheading 4202.92 from any other chapter,
except from headings 54.07, 54.08 or 55.12 through 55.16 or tariff items
5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18,
5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25,
5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60. |
|
| Chapter 50 - Silk |
|
|
| 5001-5003 |
A change to heading 50.01 through 50.03 from any other
chapter. |
|
|
| 5004-5006 |
A change to heading 50.04 through 50.06 from any heading
outside that group. |
|
|
| 5007 |
A change to heading 50.07 from any other heading. |
|
| Chapter 51 - Wool, Fine or Coarse Animal
Hair; Horsehair Yarn and Woven Fabric |
|
|
| 5101-5105 |
A change to heading 51.01 through 51.05 from any other
chapter. |
5106-5110 |
change to heading 51.06 through 51.10 from any heading
outside that group. |
5111-5113 |
A change to heading 51.11 through 51.13 from any heading
outside that group, except from heading 51.06 through 51.10, 52.05 through
52.06, 54.01 through 54.04 or 55.09 through 55.10. |
|
| Chapter 52 - Cotton |
| 5201-5207 |
A change to heading 52.01 through 52.07 from any other
chapter, except from heading 54.01 through 54.05 or 55.01 through 55.07. |
5208-5212 |
A change to heading 52.08 through 52.12 from any heading
outside that group, except from heading 51.06 through 51.10, 52.05 through
52.06, 54.01 through 54.04 or 55.09 through 55.10. |
|
| Chapter 53 - Other Vegetable Textile
Fibres; Paper Yarn and Woven Fabrics of Paper Yarn |
5301-5305 |
A change to heading 53.01 through 53.05 from any other
chapter. |
5306-5308 |
A change to heading 53.06 through 53.08 from any heading
outside that group. |
5309 |
A change to heading 53.09 from any other heading, except
from heading 53.07 through 53.08. |
| 5310-5311 |
A change to heading 53.10 through 53.11 from any heading
outside that group, except from heading 53.07 through 53.08. |
|
| Chapter 54 – Man-Made Filaments |
| 5401-5406 |
A change to heading 54.01 through 54.06 from any other
chapter, except from heading 52.01 through 52.03 or 55.01 through 55.07. |
| 5407 |
A change to tariff items 5407.61.11, 5407.61.21 or
5407.61.91 from tariff items 5402.43.10 or 5402.52.10, or from any other
chapter, except from headings 51.06 through 51.10, 52.05 through 52.06 or
55.09 through 55.10. |
| |
A change to heading 54.07 from any other chapter, except
from heading 51.06 through 51.10, 52.05 through 52.06 or 55.09 through
55.10. |
| 5408 |
A change to heading 54.08 from any other chapter, except
from heading 51.06 through 51.10, 52.05 through 52.06 or 55.09 through
55.10. |
|
| Chapter 55 – Man-Made Staple Fibres |
| 5501-5511 |
A change to heading 55.01 through 55.11 from any other
chapter, except from heading 52.01 through 52.03 or 54.01 through 54.05. |
| 5512-5516 |
A change to heading 55.12 through 55.16 from any heading
outside that group, except from heading 51.06 through 51.10, 52.05 through
52.06, 54.01 through 54.04 or 55.09 through 55.10. |
|
|
| Chapter 56 - Wadding, Felt and Nonwovens;
Special Yarns; Twine, Cordage, Ropes and Cables and Articles Thereof |
| 5601-5609 |
A change to heading 56.01 through 56.09 from any other
chapter, except from heading 51.06 through 51.13, 52.04 through 52.12,
53.07 through 53.08 or 53.10 through 53.11, or Chapter 54 through 55. |
|
| Chapter 57 - Carpets and Other Textile
Floor Coverings |
| 5701-5705 |
A change to heading 57.01 through 57.05 from any other
chapter, except from heading 51.06 through 51.13, 52.04 through 52.12,
53.08 or 53.11, Chapter 54, or heading 55.08 through 55.16. |
|
| Chapter 58 - Special Woven Fabrics; Tufted
Textile Fabrics; Lace; Tapestries; Trimmings; Embroidery |
| 5801-5811 |
A change to heading 58.01 through 58.11 from any other
chapter, except from heading 51.06 through 51.13, 52.04 through 52.12,
53.07 through 53.08 or 53.10 through 53.11, or Chapter 54 through 55. |
|
|
| Chapter 59 - Impregnated, Coated, Covered
or Laminated Textile Fabrics; Textile Articles of a Kind Suitable For
Industrial Use |
| 5901 |
A change to heading 59.01 from any other chapter, except
from heading 51.11 through 51.13, 52.08 through 52.12, 53.10 through
53.11, 54.07 through 54.08 or 55.12 through 55.16. |
| 5902 |
A change to heading 59.02 from any other heading, except
from heading 51.06 through 51.13, 52.04 through 52.12 or 53.06 through
53.11, or Chapter 54 through 55. |
| 5903-5908 |
A change to heading 59.03 through 59.08 from any other
chapter, except from heading 51.11 through 51.13, 52.08 through 52.12,
53.10 through 53.11, 54.07 through 54.08 or 55.12 through 55.16. |
| 5909 |
A change to heading 59.09 from any other chapter, except
from heading 51.11 through 51.13, 52.08 through 52.12 or 53.10 through
53.11, Chapter 54, or heading 55.12 through 55.16. |
| 5910 |
A change to heading 59.10 from any other heading, except
from heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08
or 53.10 through 53.11, or Chapter 54 through 55. |
| 5911 |
A change to heading 59.11 from any other chapter, except
from heading 51.11 through 51.13, 52.08 through 52.12, 53.10 through
53.11, 54.07 through 54.08 or 55.12 through 55.16. |
|
| Chapter 60 - Knitted or Crocheted Fabrics |
| 6001-6006 |
A change to heading 60.01 through 60.06 from any other
chapter, except from heading 51.06 through 51.13, Chapter 52, heading
53.07 through 53.08 or 53.10 through 53.11, or Chapter 54 through 55. |
|
| Chapter 61 - Articles of Apparel and
Clothing Accessories, Knitted or Crocheted |
|
|
|
Chapter Rule 1:
|
Except for fabrics classified in 5408.22.10,
5408.23.11, 5408.23.21, and 5408.24.10, the fabrics identified in the
following sub-headings and headings, when used as visible lining material
in certain men's and women's suits, suit-type jackets, skirts, overcoats,
carcoats, anoraks, windbreakers, and similar articles, must be both formed
from yarn and finished in the territory of a Party: |
|
|
| |
5111 through 5112, 5208.31 through 5208.59, 5209.31
through 5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59 5212.13
through 5212.15, 5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52
through 5407.54, 5407.61, 5407.72 through 5407.74, 5407.82 through
5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24, 5408.32 through
5408.34, 5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 5514.21
through 5515.99, 5516.12 through 5516.14, 5516.22 through 5516.24, 5516.32
through 5516.34, 5516.42 through 5516.44, 5516.92 through 5516.94,
6001.10, 6001.92, 6005.31 through 6005.44 or 6006.10 through 6006.44. |
|
|
|
Chapter Rule 2:
|
For the purposes of determining the origin of a good of
this Chapter, the rule applicable to that good shall only apply to the
component that determines the tariff classification of the good and such
component must satisfy the tariff change requirements set out in the rule
for that good. If the rule requires that the good must also satisfy the
tariff change requirements for visible lining fabrics listed in chapter
rule 1 to this Chapter, such requirement shall only apply to the visible
lining fabric in the main body of the garment, excluding sleeves, which
covers the largest surface area, and shall not apply to removable linings. |
|
|
| 6101.10-6101.30
|
A change to subheadings 6101.10 through 6101.30 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
6101.90 |
A change to subheading 6101.90 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 the good is both cut
(or knit to shape) and sewn or otherwise assembled in the territory of one
or both of the Parties. |
6102.10-6102.30 |
A change to subheadings 6102.10 through 6102.30 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: |
| |
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
6102.90 |
A change to subheading 6102.90 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 the good is both cut
(or knit to shape) and sewn or otherwise assembled in the territory of one
or both of the Parties. |
6103.11-6103.12 |
A change to subheadings 6103.11 through 6103.12 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: |
| |
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
6103.19 |
A change to tariff items 6103.19.60 or 6103.19.90 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
| |
A change to subheading 6103.19 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
| 6103.21-6103.29
|
A change to subheadings 6103.21 through 6103.29 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) with respect to a garment described in heading 61.01 or a jacket
or a blazer described in heading 61.03, of wool, fine animal hair,
cotton or man-made fibres, imported as part of an ensemble of these
subheadings, any visible lining material contained in the apparel
article must satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
6103.31-6103.33 |
A change to subheadings 6103.31 through 6103.33 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
| 6103.39 |
A change to tariff items 6103.39.40 or 6103.39.80 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. A change to subheading 6103.39 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
6103.41-6103.49 |
A change to subheadings 6103.41 through 6103.49 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6104.11-6104.13 |
A change to subheadings 6104.11 through 6104.13 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
6104.19 |
A change in tariff items 6104.19.40 or 6104.19.80 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 the good is both cut
(or knit to shape) and sewn or otherwise assembled in the territory of one
or both of the Parties.
A change to subheading 6104.19 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
6104.21-6104.29 |
A change to subheadings 6104.21 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) with respect to a garment described in heading 61.02, a jacket or
a blazer described in heading 61.04, or a skirt described in heading
61.04, of wool, fine animal hair, cotton or man-made fibres, imported as
part of an ensemble of these subheadings, any visible lining material
contained in the apparel article must satisfy the requirements of
Chapter Rule 1 for Chapter 61.
|
6104.31-6104.33 |
A change to subheadings 6104.31 through 6104.33 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
|
|
| 6104.39 |
A change to tariff items 6104.39.20 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 the good is both cut
(or knit to shape) and sewn or otherwise assembled in the territory of one
or both of the Parties.
A change to subheading 6104.39 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
| 6104.41-6104.49
|
A change to subheadings 6104.41 through 6104.49 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6104.51-6104.53 |
A change to subheadings 6104.51 through 6104.53 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
| 6104.59 |
A change to tariff items 6104.59.40 or 6104.59.80 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties.
A change to subheading 6104.59 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) any visible lining material contained in the apparel article must
satisfy the requirements of Chapter Rule 1 for Chapter 61.
|
| 6104.61-6104.69
|
A change to subheadings 6104.61 through 6104.69 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6105-6106 |
A change to headings 61.05 through 61.06 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 the good is both cut
(or knit to shape) and sewn or otherwise assembled in the territory of one
or both of the Parties. |
6107.11-6107.19 |
A change to subheadings 6107.11 through 6107.19 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6107.21 |
A change to subheading 6107.21 from:
(a) tariff items 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10
provided that the good, exclusive of collar, cuffs, waistband or
elastic, is wholly of such fabric and the good is both cut and sewn or
otherwise assembled in the territory of one or both of the Parties, or
(b) 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 the good is both cut (or
knit to shape) and sewn or otherwise assembled in the territory of one
or both of the Parties.
|
| 6107.22-6107.99
|
A change to subheadings 6107.22 through 6107.99 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6108.11-6108.19 |
A change to subheadings 6108.11 through 6108.19 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6108.21 |
A change to subheading 6108.21 from:
(a) tariff items 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10
provided that the good, exclusive of waistband, elastic or lace, is
wholly of such fabric and the good is both cut and sewn or otherwise
assembled in the territory of one or both of the Parties, or
(b) 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 the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties.
|
| 6108.22-6108.29
|
A change to subheadings 6108.22 through 6108.29 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6108.31 |
A change to subheading 6108.31 from:
(a) tariff items 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10
provided that the good, exclusive of collar, cuffs, waistband, elastic
or lace, is wholly of such fabric and the good is both cut and sewn or
otherwise assembled in the territory of one or both of the Parties, or
(b) 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 the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties.
|
| 6108.32-6108.39
|
A change to subheadings 6108.32 through 6108.39 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6108.91-6108.99 |
A change to subheadings 6108.91 through 6108.99 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6109-6111 |
A change to headings 61.09 through 61.11 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 the good is both cut
(or knit to shape) and sewn or otherwise assembled in the territory of one
or both of the Parties. |
6112.11-6112.19 |
A change to subheadings 6112.11 through 6112.19 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6112.20 |
A change to subheading 6112.20 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:
(a) the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or both of the Parties, and
(b) with respect to a garment described in heading 61.01, 61.02,
62.01 or 62.02, of wool, fine animal hair, cotton or man-made fibres,
imported as part of a ski-suit of this subheading, any visible lining
material contained in the apparel article must satisfy the requirements
of Chapter Rule 1 for Chapter 61.
|
| 6112.31-6112.49
|
A change to subheadings 6112.31 through 6112.49 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 the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of
one or both of the Parties. |
6113-6117 |
A change to headings 61.13 through 61.17 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 the good is both cut
(or knit to shape) and sewn or otherwise assembled in the territory of one
or both of the Parties. |
|
| Chapter 62 Articles of Apparel and Clothing
Accessories, Not Knitted or Crocheted |
|
Chapter Rule 1:
|
Except for fabrics classified in 5408.22.10, 5408.23.11,5408.23.21, and
5408.24.10, the fabrics identified in the following sub-headings and
headings, when used as visible lining material in certain men's and
women's suits, suit-type jackets, skirts, overcoats, carcoats, anoraks,
windbreakers, and similar articles, must be both formed from yarn and
finished in the territory of a Party:
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 5209.59,
5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15,
5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52 through 5407.54,
5407.61, 5407.72 through 5407.74, 5407.82 through 5407.84, 5407.92 through
5407.94,
5408.22 through 5408.24, 5408.32 through 5408.34, 5512.19, 5512.29,
5512.99, 5513.21 through 5513.49, 5514.21 through 5515.99, 5516.12 through
5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, 5516.42 through
5516.44, 5516.92 through 5516.94, 6001.10, 6001.92, 6005.31 through
6005.44 or 6006.10 through 6006.44. |
|
|
|
Chapter Rule 2:
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Apparel goods of this Chapter shall be
considered to originate if they are both cut and sewn or otherwise
assembled in the territory of one or both of the Parties and if the fabric
of the outer shell, exclusive of collars or cuffs, is wholly of one or
more of the following: |
(a) Velveteen fabrics of subheading 5801.23, containing 85 per cent or
more by weight of cotton; (b) Corduroy fabrics of subheading 5801.22, containing 85 per cent
or more by weight of cotton and containing more than 7.5 wales per
centrimetre;
(c) Fabrics of subheading 5111.11 or 5111.19, if hand-woven, with a
loom width of less than 76 cm, woven in the United Kingdom in
accordance with the rules and regulations of the Harris Tweed
Association, Ltd., and so certified by the Association;
(d) Fabrics of subheading 5112.30, weighing not more than 340 grams
per square meter, containing wool, not less than 20 per cent by weight
of fine animal hair and not less than 15 per cent by weight of
man-made staple fibres; or
(e) Batiste fabrics of subheading 5513.11 or 5513.21, of square
construction, of single yarns exceeding 76 metric count, containing
between 60 and 70 warp ends and filling picks per square centimetre,
of a weight not exceeding 110 grams per square meter.
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