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AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND
THE GOVERNMENT OF THE KINGDOM OF BAHRAIN ON THE ESTABLISHMENT OF A
FREE TRADE AREA

[ Index > Chapters 1-9 > 10-21 ]


The Government of the United States of America and the Government of the Kingdom of Bahrain (the “Parties”),

Recognizing the strong bonds of friendship between them and wishing to strengthen their economic relations;

Recognizing that open and competitive markets are key drivers of economic efficiency, innovation, and growth;

Desiring to create new employment opportunities and raise the standard of living for their citizens by liberalizing and expanding trade between them;

Desiring to enhance the competitiveness of their enterprises in global markets;

Desiring to establish clear and mutually advantageous rules governing their trade, complementing the high standards for protection of investment established by the Treaty Between the Government of the United States of America and the Government of the State of Bahrain Concerning the Encouragement and Reciprocal Protection of Investment;

Building on their rights and obligations under the WTO Agreement and other agreements to which they are both parties;

Affirming their commitment to transparency and their desire to eliminate bribery and corruption in international trade and investment;

Desiring to foster creativity and innovation, improve technology, and enhance the protection and enforcement of intellectual property rights;

Desiring to protect, enhance, and enforce basic workers’ rights and to strengthen the development and enforcement of labor laws and policies;

Desiring to strengthen the development and enforcement of environmental laws and policies, promote sustainable development, and implement this Agreement in a manner consistent with the objectives of environmental protection and conservation;

Affirming their desire to establish an expanded free trade area in the Middle East and thereby contribute to economic liberalization and development in the region;

Have agreed as follows:

CHAPTER ONE
INITIAL PROVISIONS AND DEFINITIONS

Section A: Initial Provisions

ARTICLE 1.1: ESTABLISHMENT OF A FREE TRADE AREA

Consistent with Article XXIV of GATT 1994 and Article V of GATS, the Parties hereby establish a free trade area in accordance with the provisions of this Agreement.

ARTICLE 1.2: RELATION TO OTHER AGREEMENTS

1. Each Party affirms its 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.

2. This Agreement shall not be construed to derogate from any legal obligation between the Parties that entitles goods or services, or suppliers of goods or services, to treatment more favorable than that accorded by this Agreement.

Section B: General Definitions

ARTICLE 1.3: DEFINITIONS

For purposes of this Agreement, unless otherwise specified:

Agreement on Textiles and Clothing means the Agreement on Textiles and Clothing, contained in Annex 1A to the WTO Agreement;

Bahrain means the Kingdom of Bahrain;

BIT investment means “covered investment” as defined in Article 1(e) of the Treaty Between the Government of the United States of America and the Government of the State of Bahrain Concerning the Encouragement and Reciprocal Protection of Investment, signed at Washington on September 29, 1999;

central level of government means:

(a) for Bahrain, the government of Bahrain; and

(b) for the United States, the federal level of government;

customs duties 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 the GATT 1994, in respect of like, directly competitive or substitutable goods of the Party, 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 domestic law; and

(c) fee or other charge in connection with importation commensurate with the cost of services rendered;

Customs Valuation Agreement means the WTO Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 199 4, contained in Annex 1A to the WTO Agreement;

days means calendar days as reckoned according to the Gregorian calendar;

enterprise means any entity constituted or organized under applicable law, whether or not for profit, and whether privately owned or governmentally owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;

enterprise of a Party means an enterprise constituted or organized under the law of a Party;

existing means, with respect to a measure, in effect on the date of entry into force of this Agreement;

GATS means the General Agreement on Trade in Service s, contained in Annex 1B to the WTO Agreement;

GATT 1994 means the General Agreement on Tariffs and Trade 199 4, contained in Annex 1A to the WTO Agreement;

goods of a Party means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party;

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;

measure includes any law, regulation, procedure, order, requirement, or practice;

national means:

(a) with respect to Bahrain, any individual possessing Bahraini citizenship in accordance with the laws in force in Bahrain; and

(b) with respect to the United States, “national of the United States” as defined in Title III of the Immigration and Nationality Act;

originating good means a good qualifying under the rules of origin set out in Chapter Four (Rules of Origin) or Chapter Three (Textiles and Apparel);

person means a natural person or enterprise;

person of a Party means a national or an enterprise of a Party;

preferential tariff treatment means the duty rate applicable under this Agreement to an originating good;

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;

regional level of government means:

(a) for Bahrain, “regional level of government” is not applicable; and

(b) for the United States, a state of the United States, the District of Columbia, or Puerto Rico;

Safeguards Agreement means the Agreement on Safeguard s, contained in Annex 1A to the WTO Agreement;

SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measure s, contained in Annex 1A to the WTO Agreement;

state enterprise means an enterprise owned, or controlled through ownership interests, by a Party;

TBT Agreement means the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement;

territory means:

(a) with respect to Bahrain, the territory of Bahrain as well as the maritime areas, seabed, and subsoil over which Bahrain exercises, in accordance with international law, sovereignty, sovereign rights, and jurisdiction;

(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;

TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Right s, contained in Annex 1C to the WTO Agreement;

WTO means the World Trade Organization; and

WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on April 15, 1994.

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

1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretive notes, and to this end Article III of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.

2. The treatment to be accorded by a Party under paragraph 1 means, with respect to a regional level of government, treatment no less favorable than the most favorable treatment that regional level government accords to any like, directly competitive, or substitutable goods, as the case may be, of the Party of which it forms a part.

3. Paragraphs 1 and 2 shall not apply to the measures set out in Annex 2-A.

Section B: Tariff Elimination

ARTICLE 2.3: TARIFF ELIMINATION

1. Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty, or adopt any new customs duty, on an originating good.

2. Except as otherwise provided in this Agreement, each Party shall progressively eliminate its customs duties on originating goods, in accordance with its Schedule to Annex 2-B.

3. On the request of either Party, the Parties shall consult to consider accelerating the elimination of customs duties set out in their Schedules to Annex 2-B. An agreement by the Parties to accelerate the elimination of a customs duty on a good shall supercede any duty rate or staging category determined pursuant to their Schedules to Annex 2-B for that good when approved by each Party in accordance with its applicable legal procedures.

4. For greater certainty, a Party may:

(a) raise a customs duty back to the level established in its Schedule to Annex 2-B following a unilateral reduction; or

(b) maintain or increase a customs duty as authorized by the Dispute Settlement Body of the WTO.

Section C: Special Regimes

ARTICLE 2.4: WAIVER OF CUSTOMS DUTIES

1. Neither Party may adopt any 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 fulfillment of a performance requirement.

2. Neither Party may, explicitly or implicitly, condition on the fulfillment of a performance requirement the continuation of any existing waiver of customs duties.

ARTICLE 2.5: TEMPORARY ADMISSION OF GOODS

1. Each Party shall grant duty-free temporary admission for:

(a) professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, necessary for carrying out the business activity, trade, or  profession of a business person who qualifies for temporary entry pursuant to the laws of the importing Party;

(b) goods intended for display or demonstration;

(c) commercial samples and advertising films and recordings; and

(d) goods imported for sports purposes,

regardless of their origin.

2. Each Party shall, at the request of the person concerned and for reasons its customs authority considers valid, extend the time limit for temporary admission beyond the period initially fixed.

3. Neither Party may condition the duty-free temporary admission of a good referred to in paragraph 1, other than to require that the 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, profession, or sport of that person;

(b) not be sold or leased 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 the departure of the person referenced in subparagraph (a), or within such other period related to the purpose of the temporary admission as the Party may establish;

(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.

4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good.

5. Each Party, through its customs authority, shall adopt procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, these procedures shall provide that when such goods accompany a national or resident of the other Party who is seeking temporary entry, the good shall be  released simultaneously with the entry of that national or resident.

6. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted.

7. Each Party, through its customs authority, shall relieve the importer or other person responsible for a good admitted under this Article from any liability for failure to export the good on destruction of the good in the presence of the Party’s customs authority or presentation of satisfactory proof to its customs authority, in accordance with its law, that the good has been destroyed within the original period fixed for temporary admission or any lawful extension.

8. Subject to Chapter Ten (Cross-Border Trade in Services):

(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 such container;

(b) neither Party may require any bond or impose any penalty or charge solely because of any difference between the port of entry and the port of departure of a container;

(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 such 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 from its territory to the territory of the other Party for repair or alteration, regardless of whether such 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 purposes of this Article, repair or alteration means restoration, renovation, cleaning, resterilizing, or other operation or process that does not:

(a) destroy a good’s essential characteristics or create a new or commercially different good; or

(b) transform an unfinished good into a finished good.

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) such samples be imported solely for the solicitation of orders for goods, or services provided from the territory, of the other Party or a non-Party; or

(b) such advertising materials be imported in packets that each contain no more than one copy of each such material and that neither such materials nor packets form part of a larger consignment.

Section D: Non-Tariff Measures

ARTICLE 2.8: 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 and its interpretive notes, and to this end Article XI of GATT 1994 and its interpretive notes are incorporated into and made a part of this Agreement, mutatis mutandis.1

2. The Parties understand that GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, a Party from adopting or maintaining:

(a) export and import price requirements, except as permitted in enforcement of countervailing and antidumping duty orders and undertakings;

(b) measures conditioning the grant of an import license on the fulfillment of a performance requirement; or

(c) voluntary export restraints inconsistent with Article VI of GATT 1994, as implemented under Article 18 of the WTO Agreement on Subsidies and Countervailing Measures and Article 8.1 of the WTO  Agreement on Implementation of Article VI of GATT 1994.

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, no provision of this Agreement shall be construed to prevent the Party from:

(a) limiting or prohibiting the importation of the good of the non-Party from the territory of the other Party;

(b) requiring as a condition for exporting the 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. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on the request of either Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing, and distribution arrangements in the other Party.

5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 2-A.

ARTICLE 2.9: 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 import and export 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 an indirect protection to domestic goods 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.

4. The United States shall eliminate its merchandise processing fee on originating goods.

ARTICLE 2.10: EXPORT TAXES

Neither Party may adopt or maintain any tax, duty, or other charge on the export of any good to the territory of other Party, unless the tax, duty, or charge is also adopted or maintained on the good when destined for domestic consumption.

Section E: Agriculture

ARTICLE 2.11: AGRICULTURAL EXPORT SUBSIDIES

1. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall work together toward an agreement in the WTO to eliminate those subsidies and prevent their reintroduction in any form.

2. Except as provided in paragraph 3, neither Party may introduce or maintain any export subsidy on any agricultural good destined for the territory of the other Party.

3. 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-on measures, the exporting Party shall refrain from applying any export subsidy to exports of such good to the territory of the importing Party.2

Section F: Definitions

ARTICLE 2.12: DEFINITIONS

For purposes of this Chapter:

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;

agricultural goods means those goods referred to in Article 2 of the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement;

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 Bahrani currency, or so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or use except as commercial samples;

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;

consumed means

(a) actually consumed; or

(b) further processed or manufactured so as to result in a substantial change in value, form, or use of the good or in the production of another good;

duty-free means free of customs duty;

export subsidies means “export subsidies” as defined in Article 1(e) of the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement, including any amendment of that article;

goods imported for sports purposes means sports requisites for use in sports contests, demonstrations, or training in the territory of the importing Party;

goods intended for display or demonstration includes their component parts, ancillary apparatus, and accessories;

import license means a license issued by a Party pursuant to 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 Party;

performance requirement means a requirement that:

(a) a given level or percentage of goods or services be exported;

(b) domestic 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;

(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;

but does not include a requirement that:

(f) an imported good be subsequently exported;

(g) an imported good be used as a material in the production of another good that is subsequently exported;

(h) an imported good be substituted by an identical or similar good used as a material in the production of another good that is subsequently exported; or

(i) an imported good be substituted by an identical or similar good that is subsequently exported; and

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, are essentially intended to advertise a good or service, and are supplied free of charge.

ANNEX 2-A
NATIONAL TREATMENT AND IMPORT AND EXPORT RESTRICTIONS

Section A: Measures of the United States

Paragraphs 1 and 2 of Article 2.2 and paragraphs 1 through 4 of Article 2.8 shall not apply to:

(a) controls on the export of logs of all species;

(b)

(i) measures under existing provisions of the Merchant Marine Act of 192 0, 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 the United States acceded 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 2.8;

(c) actions authorized by the Dispute Settlement Body of the WTO; and

(d) actions authorized by the Agreement on Textiles and Clothing.

Section B: Measures of Bahrain

Paragraphs 1 and 2 of Article 2.2 and paragraphs 1 through 4 of Article 2.8 shall not apply to:

(a) prohibitions on the importation of retreaded tires, for ten years from the effective date of this Agreement; and

(b) actions authorized by the Dispute Settlement Body of the WTO.

CHAPTER THREE
TEXTILES AND APPAREL

ARTICLE 3.1: BILATERAL EMERGENCY ACTION

1. If, as a result of the reduction or elimination of a duty under this Agreement, a textile or apparel good benefiting from preferential tariff treatment 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 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 duty on the good to a level not to exceed the lesser of:

(a) the most-favored-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 of the good 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 shall necessarily be 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. The importing Party shall deliver to the exporting Party, without delay, written notice of its intent to take emergency action and, on the request of the exporting Party, shall enter into consultations with that Party regarding the matter.

5. An importing Party:

(a) shall not maintain an emergency action for a period exceeding three years;

(b) shall not take or maintain an emergency action against a good beyond ten years after the Party must eliminate customs duties on that good pursuant to this Agreement;

(c) shall not take an emergency action more than once against the same good of the other Party; and

(d) shall, on termination of the emergency action, apply to the good that was subject to the emergency action the rate of duty that would have been in effect but for the action.

6. 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 duties expected to result from the emergency action. Such concessions shall be limited to textile and apparel goods, unless the Parties agree otherwise. If the Parties are unable to agree on compensation, the exporting Party may suspend tariff concessions under this Agreement having trade effects substantially equivalent to the trade effects of the emergency action. Such tariff action may be taken 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.

7. Nothing in this Agreement shall be construed to limit a Party’s right to restrain imports of textile and apparel goods in a manner consistent with the Agreement on Textiles and Clothing or the Safeguards Agreement. However, a Party may not take or maintain an emergency action under this Article against a textile or apparel good that is subject, or becomes subject, to a safeguard measure that a Party takes pursuant to either such agreement.

ARTICLE 3.2: RULES OF ORIGIN AND RELATED MATTERS

Application of Chapter Four

1. Except as provided in this Chapter, including its Annexes, Chapter Four (Rules of Origin) applies to textile and apparel goods.

2. For greater certainty, 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 rules of origin applicable to a particular textile or apparel good should be revised to address issues of availability of supply of fibers, yarns, or fabrics in the territories f the Parties. o

4. In the consultations referred to in paragraph 3, each Party shall consider all data presented by the other Party that demonstrate substantial production in its territory of a particular fiber, yarn, or fabric. The Parties shall consider that there is substantial production if a Party demonstrates that its domestic producers are capable of supplying commercial quantities of the fiber, yarn, or fabric in a timely manner.

5. The Parties shall endeavor to conclude consultations within 60 days after delivery of a request. If the Parties agree in the consultations to revise a rule of origin, the agreement shall supersede that rule of origin when approved by the Parties in accordance with Article 21.2 (Amendments).

De Minimis

6. A textile or apparel good that is not an originating good because certain fibers 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 3-A, shall nonetheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than seven percent of the total weight of that component. Notwithstanding the preceding sentence, 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

7. Notwithstanding the specific rules of origin set out in Annex 3-A, textile or apparel goods classified under General Rule of Interpretation 3 of the Harmonized System as goods put up in sets for retail sale 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 10 percent of the value of the set determined for purposes of assessing customs duties.

Preferential Tariff Treatment for Certain Non-Originating Textile and Apparel Goods

8. Subject to paragraph 9, each Party shall accord preferential tariff treatment to the following goods, if they meet the applicable conditions for preferential tariff treatment under this Agreement other than the condition that they be originating goods:

(a) cotton or man-made fiber fabric goods provided for in Chapters 52, 54, 55, 58, and 60 of the Harmonized System that are wholly formed in the territory of a Party from yarn produced or obtained outside the territory of a Party;

(b) cotton or man-made fiber fabric goods provided for in Annex 3-B that are wholly formed in the territory of a Party from yarn spun in the territory of a Party from fiber produced or obtained outside the territory of a Party;

(c) cotton or man-made fiber apparel goods provided for in Chapters 61 or 62 of the Harmonized System that are cut or knit to shape, or both, and sewn or otherwise assembled in the territory of a Party from fabric or yarn produced or obtained outside the territory of a Party; and

(d) cotton or man-made fiber made-up goods provided for in Chapter 63 that are cut or knit to shape, or both, and sewn or otherwise assembled in the territory of a Party from fabric wholly formed in a Party from yarn produced or obtained outside the territory of a Party.

9. The treatment described in paragraph 8 shall be limited to goods imported into the territory of a Party up to an annual total quantity of 65 million square meters equivalent in each of the first ten years after entry into force of this Agreement. Upon the request of an exporting Party, the importing Party shall allocate such quantity among the four categories of goods described in paragraph 8, in accordance with such request. To determine the quantity in square meters equivalent that is charged against the annual quantity, the importing Party shall apply the conversion factors listed in the Correlation: U.S. Textile and Apparel Category System with the Harmonized Tariff Schedule of the United States of America (“The Textile Correlation”), 2003, U.S. Department of Commerce, Office of Textiles and Apparel, or successor publication.

10. At the written request of an exporting Party, an importing Party shall require an importer claiming preferential tariff treatment under paragraph 8 to submit to the importing Party a certificate of eligibility. An importing Party shall not accept such a claim unless the certificate of eligibility is properly completed and signed by an authorized official of the exporting Party and is presented at the time the preferential tariff treatment is claimed.

11. Where an importing Party has reason to question the accuracy of a claim under paragraph 8, or where an importing Party seeks such information in the course of a verification under Article 3.3, it may require an importer claiming preferential tariff treatment for a textile or apparel good under paragraph 8 to prepare, sign, and submit to its competent authority a declaration supporting such a claim for preferential tariff treatment and to provide all pertinent information concerning the production of the good, including:

(a) a description of the good, quantity, invoice numbers, and bills of lading;

(b) a description of the operations performed in the production of the good in the territory of one or both of the Parties;

(c) a reference to the specific provision of paragraph 8 that forms the basis for the claim for preferential tariff treatment; and

(d) a statement as to any fiber, yarn, or fabric of a non-Party and the origin of such materials used in the production of the good.

The importing Party may require the importer to retain all documents relied upon to prepare the declaration for a period of five years.

ARTICLE 3.3: CUSTOMS COOPERATION

1. The Parties shall cooperate for purposes of:

(a) enforcing or assisting in the enforcement of their measures affecting trade in textile or apparel goods;

(b) verifying 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 tariff treatment for the good. The exporting Party also may 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 conduct, on the request of the importing Party, a verification for purposes of enabling the importing Party to determine that the exporter or producer is complying with applicable customs measures regarding 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, or to determine that a claim of origin regarding textile or apparel goods exported or produced by that enterprise is accurate. For purposes of this paragraph, a reasonable suspicion of unlawful activity means a suspicion based on relevant factual information of the type set forth in Article 5.5 (Cooperation) or information that indicates:

(a) circumvention by the exporter or producer of applicable customs measures regarding trade in textile or apparel goods, including measures adopted to implement this Agreement; or

(b) conduct that facilitates the violation of measures relating to any other international agreement regarding 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 pursuant to 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 other enterprise 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 enterprise refuses to consent to a visit by the competent authorities of the importing Party, the importing Party may consider that the verification cannot be completed and the determination described in paragraph 2 or 3 cannot be made and may take appropriate action as described in paragraph 8.

5. Each Party shall provide to the other Party, consistent with the Party’s law, production, trade, and transit documents and other information necessary for the exporting Party to conduct a verification under paragraph 2 or 3. Each Party shall treat any documents or information exchanged in the course of such a verification in accordance with Article 5.6 (Confidentiality).

6. 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 tariff 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 good exported or produced by the person subject to a verification under paragraph 3, where the reasonable suspicion of unlawful activity relates to that good.

7. The Party conducting a verification under paragraph 2 or 3 shall provide the other Party with a written report on the results of the verification, which shall include all documents and facts supporting any conclusion that the Party reaches.

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 law, take appropriate action, including denying preferential tariff 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 a determination described in paragraph 3 within 12 months after its request for a verification, or makes a negative determination, it may, consistent with its law, take appropriate action, including denying preferential tariff 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 tariff treatment or entry under paragraph 8 only after notifying the other Party of its intention to do so.

(b) If the importing Party takes action under paragraph 8 because it is unable to make a determination described in paragraph 2 or 3, it may continue to take appropriate action under paragraph 8 until it receives information sufficient to enable it to make the 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 favorably and promptly.

ARTICLE 3.4: DEFINITIONS

For purposes of this Chapter:

claim of origin means a claim that a textile or apparel good is an originating good;

exporting Party means the Party from whose territory a textile or apparel good is exported;

importing Party means the Party into whose territory a textile or apparel good is imported; and

textile or apparel good means a good listed in the Annex to the Agreement on Textiles and Clothing.
 

ANNEX 3-A
RULES OF ORIGIN FOR TEXTILE OR APPAREL GOODS
FOR CHAPTERS 42, 50 THROUGH 63, 70, AND 94

1. For goods covered in this Annex, a good is an originating good if:

(i) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in this Annex as a result of production occurring entirely in the territory of one or both of the Parties, or the good otherwise satisfies the applicable requirements of this Chapter where a change in tariff classification for each non-originating material is not required; and

(ii) the good satisfies any other applicable requirements of this Chapter and Chapter Four (Rules of Origin).

2. For purposes of interpreting the rules of origin set out in this Annex:

(a) the specific rule, or specific set of rules, that applies to a particular heading or subheading is set out immediately adjacent to the heading or subheading;

(b) a rule applicable to a subheading shall take precedence over a rule applicable to the heading which is parent to that subheading;

(c) a requirement of a change in tariff classification applies only to non-originating materials;

(d) a good is considered to be “wholly” of a material if the good is made entirely of the material; and

(e) the following definitions apply:

chapter means a chapter of the Harmonized System;

heading means the first four digits in the tariff classification number under the Harmonized System;

subheading means the first six digits in the tariff classification number under the Harmonized System.

    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 A 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 Fibers; 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 Fibers
    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,
    15209.31 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 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 cut or knit to shape, or both, 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 satisfies
    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 cut or knit to shape, or both,
    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 cut or knit to shape, or both, 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
    satisfies 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 cut or knit to shape, or both, 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 cut or knit to shape, or both, 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 satisfies 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 cut or knit to shape, or both, 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 cut or knit to shape, or both, 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 satisfies 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 cut or knit to shape, or both, 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 fibers, imported as part
    of an ensemble of these subheadings, any visible lining material
    contained in the apparel article satisfies 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 cut or knit to shape, or both, 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 satisfies
     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 cut or
    knit to shape, or both, 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 cut or knit to shape, or both, 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
     satisfies 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 cut or knit to shape, or both, 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 cut or knit to shape, or both, 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 satisfies 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 cut or knit to shape,
    or both, 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 cut or knit to shape, or both, 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 satisfies 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 cut or knit to shape, or both, 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 fibers, imported as
    part of an ensemble of these subheadings, any visible
    lining material contained in the apparel article satisfies
    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 cut or knit to shape, or both, 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 satisfies 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 cut or knit to shape,
    or both, 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 cut or knit to shape, or both, 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 satisfies 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 cut or knit
    to shape, or both, 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 cut or knit to shape, or both, 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
    satisfies 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 cut or knit to shape,
    or both, 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 cut or knit to shape, or both, 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 satisfies 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 cut or knit to
    shape, or both, 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 cut
    or knit to shape, or both, 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 cut or knit to shape, or both, 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 cut or knit to shape, or both, 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 cut or knit to shape, or both, 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 cut or knit to shape,
    or both, 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 cut or knit to shape,
    or both, 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 cut or knit to shape, or both, 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 cut or knit to shape, or both, 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 cut or knit to
    shape, or both, 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 cut or knit to shape, or both, 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 cut
    or knit to shape, or both, 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 cut
    or knit to shape, or both, 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 cut
    or knit to shape, or both, 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 cut
    or knit to shape, or both, 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 cut or knit to shape, or both, 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 fibers,
    imported as part of a ski-suit of this subheading, any visible lining material
    contained in the apparel article satisfies 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 cut or
    knit to shape, or both, 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 cut or
    knit to shape, or both, 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
    20 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:

    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 centimeter;

    (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 fibers; 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 centimeter, of a weight not exceeding 110 grams per square meter.

    Chapter Rule 3:

    For 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.
    6201.11-6201.13 A change to subheadings 6201.11 through 6201.13 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, 58.01 through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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
    satisfies the requirements of Chapter Rule 1 for Chapter 62.

    6201.19 A change to subheading 6201.19 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,
    58.01 through 58.02 or 60.01 through 60.06, provided that the good is
    both cut and sewn or otherwise assembled in the territory of one or both
    of the Parties.
    6201.91-6201.93 A change to subheadings 6201.91 through 6201.93 from any other chapter,
    except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07
    through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08
    through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 satisfies
    the requirements of Chapter Rule 1 for Chapter 62.

    6201.99 A change to subheading 6201.99 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that the
    good is both cut and sewn or otherwise assembled in the
    territory of one or both of the Parties.
    6202.11-6202.13 A change to subheadings 6202.11 through 6202.13 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, 58.01 through 58.02 or 60.01 through 60.06,
    provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter
    Rule 1 for Chapter 62.

    6202.19 A change to subheading 6202.19 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that the good
    is both cut and sewn or otherwise assembled in the territory
    of one or both of the Parties.
    6202.91-6202.93 A change to subheadings 6202.91 through 6202.93 from
    any other chapter, except from headings 51.06 through
    51.13, 52.04 through 52.12, 53.07 through 53.08 or
    53.10 through 53.11, Chapter 54, or headings 55.08
    through 55.16, 58.01 through 58.02 or 60.01 through
    60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of
    Chapter Rule 1 for Chapter 62.

    6202.99 A change to subheading 6202.99 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that
    the good is both cut and sewn or otherwise assembled in
    the territory of one or both of the Parties.
    6203.11-6203.12 A change to subheadings 6203.11 through 6203.12 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, 58.01 through 58.02 or 60.01 through 60.06,
    provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter Rule 1 for
    Chapter 62.

    6203.19 A change to tariff items 6203.19.50 or 6203.19.90 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that the
    good is both cut and sewn or otherwise assembled in the
    territory of one or both of the Parties.

    A change to subheading 6203.19 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter Rule 1 for
    Chapter 62

    6203.21-6203.29 A change to subheadings 6203.21 through 6203.29
    from any other chapter, except from headings 51.06
    through 51.13, 52.04 through 52.12, 53.07 through
    53.08 or 53.10 through 53.11, Chapter 54, or headings
    55.08 through 55.16, 58.01 through 58.02 or 60.01
    through 60.06, provided that:

    (a) the good is both cut 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
    62.01 or a jacket or a blazer described in heading
    62.03, of wool, fine animal hair, cotton or man-made
    fibers, imported as part of an ensemble of these
    subheadings, any visible lining material contained
    in the apparel article as imported into the U.S.
    satisfies the requirements of Chapter Rule 1 for
    Chapter 62.

    6203.31-6203.33 A change to subheadings 6203.31 through 6203.33
    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, 58.01 through 58.02 or 60.01
    through 60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of
    Chapter Rule 1 for Chapter 62.

    6203.39 A change to tariff items 6203.39.50 or 6203.39.90 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,
    58.01 through 58.02 or 60.01 through 60.06, provided
    that the good is both cut and sewn or otherwise assembled
    in the territory of one or both of the Parties.

    A change to subheading 6203.39 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter Rule 1
    for Chapter 62.

    6203.41-6203.49 A change to subheadings 6203.41 through 6203.49 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that the
    good is both cut and sewn or otherwise assembled in the
    territory of one or both of the Parties.
    6204.11-6204.13 A change to subheadings 6204.11 through 6204.13 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, 58.01 through 58.02 or 60.01 through
    60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter
    Rule 1 for Chapter 62.

    6204.19 A change to tariff items 6204.19.40 or 6204.19.80 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, 58.01 through 58.02 or 60.01
    through 60.06, provided that the good is both cut and
    sewn or otherwise assembled in the territory of one or
    both of the Parties.

    A change to subheading 6204.19 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter
    Rule 1 for Chapter 62.

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

    (a) the good is both cut 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
    62.02, a jacket or a blazer described in heading 62.04,
    or a skirt described in heading 62.04, of wool, fine
    animal hair, cotton or man-made fibers, imported
    as part of an ensemble of these subheadings, any
    visible lining material contained in the apparel article
    "|satisfies the requirements of Chapter Rule 1 for
    Chapter 62.

    6204.31-6204.33 A change to subheadings 6204.31 through 6204.33 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter Rule 1 for
    Chapter 62.

    6204.39 A change to tariff items 6204.39.60 or 6204.39.80
    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, 58.01 through 58.02 or 60.01
    through 60.06, provided that the good is both cut and
    sewn or otherwise assembled in the territory of one or
    both of the Parties.

    A change to subheading 6204.39 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter
    Rule 1 for Chapter 62.

    6204.41-6204.49 A change to subheadings 6204.41 through 6204.49
    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, 58.01 through 58.02 or 60.01
    through 60.06, provided that the good is both cut and
    sewn or otherwise assembled in the territory of one or
    both of the Parties.
    6204.51-6204.53 A change to subheadings 6204.51 through 6204.53
    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, 58.01 through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of Chapter Rule 1
    for Chapter 62.

    6204.59 A change to tariff item 6204.59.40 from any other chapter,
    except from headings 51.06 through 51.13, 52.04 through
    52.12, 53.07 through 53.08 or 53.10 through 53.11,
    Chapter 54, or headings 55.08 through 55.16, 58.01
    through 58.02 or 60.01 through 60.06, provided that the
    good is both cut and sewn or otherwise assembled in the
    territory of one or both of the Parties.

    A change to subheading 6204.59 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 satisfies the requirements of
    Chapter Rule 1 for Chapter 62.

    6204.61-6204.69 A change to subheadings 6204.61 through 6204.69
    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, 58.01 through 58.02 or 60.01
    through 60.06, provided that the good is both cut and
    sewn or otherwise assembled in the territory of one
    or both of the Parties.
    6205.10 A change to subheading 6205.10 from any other chapter,
    except from headings 51.06 through 51.13, 52.04
    through 52.12, 53.07 through 53.08 or 53.10
    through 53.11, Chapter 54, or headings 55.08 through
    55.16, 58.01 through 58.02 or 60.01 through 60.06,
    provided that the good is both cut and sewn or otherwise
    assembled in the territory of one or both of the Parties.
    6205.20-6205.30    

    Subheading Rule:

    Men's or boys' shirts of cotton or man-made fibers
    shall be considered to originate if they are both
    cut and assembled in the territory of one or more
    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) Fabrics of subheading 5208.21, 5208.22,
    5208.29, 5208.31, 5208.32, 5208.39, 5208.41,
    5208.42, 5208.49, 5208.51, 5208.52 or 5208.59,
    of average yarn number exceeding 135 metric;

    (b) Fabrics of subheading 5513.11 or 5513.21,
    not of square construction, containing more
    than 70 warp ends and filling picks per square
    centimeter, of average yarn number exceeding
    70 metric;

    (c) Fabrics of subheading 5210.21 or 5210.31,
    not of square construction, containing more
    than 70 warp ends and filling picks per square
    centimeter, of average yarn number exceeding
    70 metric;

    (d) Fabrics of subheading 5208.22 or 5208.32,
    not of square construction, containing more than
    75 warp ends and filling picks per square centimeter,
    of average yarn number exceeding 65 metric;

    (e) Fabrics of subheading 5407.81, 5407.82
    or 5407.83, weighing less than 170 grams
    per square meter, having a dobby weave
    created by a dobby attachment;

    (f) Fabrics of subheading 5208.42 or 5208.49,
    not of square construction, containing more
    than 85 warp ends and filling picks per square
    centimeter, of average yarn number exceeding
    85 metric;

    (g) Fabrics of subheading 5208.51, of square
    construction, containing more than 75 warp
    ends and filling picks per square centimeter,
    made with single yarns, of average yarn number
    95 or greater metric;

    (h) Fabrics of subheading 5208.41, of square
    construction, with a gingham pattern, containing
    more than 85 warp ends and filling picks per
    square centimeter, made with single yarns, of
    average yarn number 95 or greater metric,
    and characterized by a check effect produced
    by the variation in color of the yarns in the warp
    and filling; or

    (i) Fabrics of subheading 5208.41, with the
    warp colored with vegetable dyes, and the
    filling yarns white or colored with vegetable
    dyes, of average yarn number greater than 65 metric.

    6205.20-6205.30 A change to subheadings 6205.20 through 6205.30 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, 58.01 through 58.02 or 60.01
    through 60.06, provided that the good is both cut and
    sewn or otherwise assembled in the territory of one or
    both of the Parties.
    6205.90 A change to subheading 6205.90 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,
    58.01 through 58.02 or 60.01 through 60.06, provided
    that the good is both cut and sewn or otherwise assembled
    in the territory of one or both of the Parties.
    6206-6210 A change to headings 62.06 through 62.10 from any other chapter,
    except from headings 51.06 through 51.13, 52.04 through
    52.12, 53.07 through 53.08 or 53.10 through 53.11,
    Chapter 54, or headings 55.08 through 55.16, 58.01
    through 58.02 or 60.01 through 60.06, provided that
    the good is both cut and sewn or otherwise assembled
    in the territory of one or both of the Parties.
    6211.11-6211.12 A change to subheadings 6211.11 through 6211.12 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, 58.01 through 58.02 or 60.01 through 60.06,
    provided that the good is both cut and sewn or otherwise
    assembled in the territory of one or both of the Parties.
    6211.20 A change to subheading 6211.20 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, 58.01
    through 58.02 or 60.01 through 60.06, provided that:

    (a) the good is both cut 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 fibers, imported as part of a ski-suit
    of this subheading, any visible lining material contained in
    the apparel article satisfies the requirements of Chapter
    Rule 1 for Chapter 62.

    6211.31-6211.49 A change to subheadings 6211.31 through 6211.49 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, 58.01 through
    58.02 or 60.01 through 60.06, provided that the good is both
    cut and sewn or otherwise assembled in the territory of one or
    both of the Parties.
    6212.10 A change to subheading 6212.10 from any other chapter,
    provided that the good is both cut and sewn or otherwise
    assembled in the territory of one or both of the Parties,
    and provided that, during each annual period, such goods
    of a producer or an entity controlling production shall be
    eligible for preferential treatment under this Agreement only
    if the aggregate cost of fabric(s) (exclusive of findings and
    trimmings) formed in the territory of one or both of the
    Parties that is used in the production of all such articles
    of that producer or entity during the preceding annual
    period is at least 75 percent of the aggregate declared
    customs value of the fabric (exclusive of findings and trimmings)
    contained in all such goods of that producer or entity that are
    entered during the preceding one year period.
    6212.20-6212.90 A change to subheadings 6212.20 through 6212.90
    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, 58.01 through 58.02 or 60.01
    through 60.06, provided that the good is both cut
    and sewn or otherwise assembled in the territory of
    one or both of the Parties.
    6213-6217 A change to headings 62.13 through 62.17 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, 58.01 through 58.02 or 60.01
    through 60.06, provided that the good is both cut and
    sewn or otherwise assembled in the territory of one or
    both of the Parties.
    Chapter 63 - Other Made Up Textile Articles; Sets; Worn Clothing and Worn
    Textile Articles; Rags

    Chapter Rule 1:

    For 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.

    6301-6302 A change to heading 63.01 through 63.02 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, Chapter 54, or
    heading 55.08 through 55.16, 58.01 through 58.02 or 60.01
    through 60.06, provided that the good is cut or knit to shape,
    or both, and sewn or otherwise assembled in the territory of
    one or both of the Parties. 
    6303 A change to tariff item 6303.92.10 from tariff items 5402.43.10
    or 5402.52.10 or any other