Annex 300-B Textile and Apparel Goods
Section 7: Review and Revision of Rules of Origin
1. (a) The Parties shall monitor the effects of the application of the rule of origin set
out in Annex 401 applicable to goods of subheading 6212.10 of the
Harmonized System (HS). No earlier than April 1, 1995, a Party may request
consultations with the other Parties to seek a mutually satisfactory solution to
any difficulties that it considers result from the application of that rule of
origin.
(b) If the consulting Parties fail to reach a mutually satisfactory solution within 90
days of a request for consultations, on request of any Party the rule of origin
applicable to subheading 6212.10 shall change to the rule of origin set out in
Annex 401 applicable to headings 62.06 through 62.11 with respect to trade
between the requesting Party and the other Parties. Any such change shall be
effective 180 days after the request. The Parties shall take measures to ease
any resulting administrative burden on producers.
(c) Unless the Parties agree otherwise, at any time after the completion of
consultations held under subparagraph (a) and during the transition period only,
a Party that has requested such consultations may make one additional request
for consultations under subparagraph (a) and take action under subparagraph
(b).
2. (a) On request of any Party, the Parties shall consult to consider whether particular
goods should be subject to different rules of origin to address issues of
availability of supply of fibers, yarns or fabrics in the free trade area.
(b) In the consultations, each Party shall consider all data presented by a Party
showing substantial production in its territory of the particular good. The
consulting Parties shall consider that substantial production has been shown if
that Party demonstrates that its domestic producers are capable of supplying
commercial quantities of the good in a timely manner.
(c) The Parties shall endeavor to conclude consultations within 60 days of the
request. An agreement between two or more Parties resulting from the
consultations shall supersede any prior rule of origin for such good when
approved by each such Party in accordance with Article 2202(2)
(Amendments). If no agreement is reached, a Party may have recourse to
paragraph B(8) of Appendix 6.
(d) Further to subparagraph (a), on request of any Party, the Parties shall consult to
consider whether the rules of origin set out in Annex 401 applicable to the
following provisions should be amended in view of increasing availability of
supply of relevant yarns or fabrics within the free trade area:
(i) Canadian tariff item 5407.60.10, Mexican tariff item 5407.60.02 and
U.S. tariff item 5407.60.22,
(ii) provisions (a) through (i) of the rule of origin for subheadings 6205.20
through 6205.30,
(iii) goods of subheadings 6107.21, 6108.21 and 6108.31, wholly of fabric of
Canadian tariff item 6002.92.10, Mexican tariff item 6002.92.01, and
U.S. tariff item 6002.92.10, and exclusive of collar, cuffs, waistband,
elastic or lace;
(iv) note 2 to Chapter 62 of Annex 401, and
(v) Canadian tariff item 6303.92.10, Mexican tariff item 6303.92.01 and
U.S. tariff item 6303.92.aa.
3. The Parties shall review the rules of origin applicable to textile and apparel goods
within five years of the date of entry into force of this Agreement to take into account the
effect of increasing global competition on textile and apparel goods and the implications of
any integration into the GATT of textile and apparel goods pursuant to any successor
agreement to the Multifiber Arrangement. The Parties shall give particular consideration to
operative rules in other economic association or integration agreements and developments
relating to textile and apparel production and trade.