Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations

11 (1) Foreign materials that are incorporated into goods and do not undergo an applicable change in tariff classification or satisfy any other applicable requirements of these Regulations shall be disregarded in determining the country or countries of origin of the goods

• (a) in the case of goods classified under any of Chapters 50 to 63 of the List of Tariff Provisions, if the combined weight of the foreign materials does not exceed 7% of the total weight of the goods; and

• (b) in the case of goods classified under any other chapter of the List of Tariff Provisions, other than under any of Chapters 1 to 4, 6 to 8, 11, 12, 15, 17 and 20, if the value of the foreign materials is not more than 7% of the value of the goods, or 10% where the goods are classified under Chapter 22 of that List.

(2) For the purpose of this section, the value of materials is, at the choice of the importer of the goods,

• (a) their value for duty, as defined in subsection 2(1) of the Customs Act, except that for the purpose of determining that value, the reference in section 55 of that Act to “in accordance with regulations made under the Currency Act” shall be read as a reference to “in accordance with subsection 2(1) of the CUSMA Rules of Origin Regulations”; or

• (b) their value determined in accordance with Schedule 6 to the CUSMA Rules of Origin Regulations, with any modifications that the circumstances require.

(3) For the purpose of this section, the value of any goods is,

• (a) where the importer of the goods has chosen that the value of the materials incorporated into the goods be determined under paragraph (2)(a), their value for duty, as defined in subsection 2(1) of the Customs Act, except that for the purpose of determining that value, the reference in section 55 of that Act to “in accordance with regulations made under the Currency Act” shall be read as a reference to “in accordance with subsection 2(1) of the CUSMA Rules of Origin Regulations”; and

• (b) where the importer of the goods has chosen that the value of the materials incorporated into the goods be determined under paragraph (2)(b), their value determined in accordance with Schedule 6 to the CUSMA Rules of Origin Regulations, with any modifications that the circumstances require, as though they were a material.