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  3. Chapter 2 - Rules of Origin
  4. Produced in the NAFTA Territory Wholly of Originating Materials

Produced in the NAFTA Territory Wholly of Originating Materials

Goods also originate if they are produced entirely in Canada, Mexico and/or the United States exclusively from materials that are considered to be originating according to the terms of the Agreement.

Company A imports whole raw bovine skins (HTS 41.01) into Mexico from Argentina and processes them into finished leather (HTS 41.04). The finished leather is then purchased by Company B to make leather eyeglass cases (HTS 4202.31). The rule of origin for HTS 41.04 states:

A change to heading 41.04 from any other heading, except from heading 41.05 through 41.11.

The finished leather originates in Mexico because it meets the Annex 401 criterion. Assuming the eyeglass cases do not contain any non-originating materials, they originate since they are made wholly of a material that is originating (because the finished leather satisfied the Annex 401 criterion).

Last Modified: Mar 06, 2024