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ARTICLES

LEGAL RESOURSES

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$ 17.14

    • Annex 302.2. Tariff Elimination

    1. Except as otherwise provided in a Party's Schedule attached to this Annex, the following staging categories apply to the elimination of customs duties by each Party pursuant to Article 302(2) (TLCAN: Art. 302):

  • Duties on goods provided for in the items in staging category A in a Party's Schedule shall be eliminated entirely and such goods shall be duty-free, effective January 1, 1994;

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  • Duties on goods provided for in the items in staging category B in a Party's Schedule shall be removed in five equal annual stages beginning on January 1, 1994, and such goods shall be duty-free, effective January 1, 1998;

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  • Duties on goods provided for in the items in staging category C in a Party's Schedule shall be removed in 10 equal annual stages beginning on January 1, 1994, and such goods shall be duty-free, effective January 1, 2003;

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  • Duties on goods provided for in the items in staging category C+ in a Party's Schedule shall be removed in 15 equal annual stages beginning on January 1, 1994, and such goods shall be duty-free, effective January 1, 2008; and

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  • Goods provided for in the items in staging category D in a Party's Schedule shall continue to receive duty-free treatment.

    • 2. The base rate of customs duty and staging category for determining the interim rate of customs duty at each stage of the U.S. Generalized System of Preferences and the General Preferential Tariff of Canada.

    3. For the purpose of the elimination of customs duties in accordance with Article 302 (TLCAN: Art. 302), interim staged rates shall be rounded down, except as set out in each Party's Schedule attached to this Annex, at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units, at least to the nearest .001 of the official monetary unit of the Party.

    4. Canada shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement which Annex is hereby incorporated into and made a part of this Agreement, to an originating good provided that:

  • Notwithstanding any provision in Chapter Four, in determining whether such good is an originating good, operations performed in or materials obtained from Mexico are considered as if they were performed in or obtained from a non-Party; and

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  • Any processing that occurs in Mexico after the good would qualify as an originating good in accordance with subparagraph (a) does not increase the transaction value of the good by greater than seven percent.

    • 5. Canada shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Column I of its Schedule to this Annex to an originating good provided that:

  • Notwithstanding any provision in Chapter Four, in determining whether such good is an originating good, operations performed in or materials obtained from the United States are considered as if they were performed in or obtained from a non-Party; and

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  • Any processing that occurs in the United States after subparagraph (a) does not increase the transaction value of the good by greater than seven percent.

    • 6. Canada shall apply to an originating good to which neither paragraph 4 nor 5 applies a rate of customs duty no higher than the rate indicated for its corresponding item in Column II of its Schedule to this Annex. The rate of customs duty in Column II for such good shall be:

  • In each year of the staging category indicated in Column I, the higher of

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  • The rate of customs duty under the staging category set out for the item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement, and

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  • The General Preferential Tariff rate of customs duty for the item applied on July 1, 1991, reduced in accordance with the applicable staging category set out for the item in Column I of its Schedule to this Annex; or

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  • Where specified in Column II of its Schedule to this Annex, the most-favored-nation rate of customs duty for the item applied on July 1, 1991, reduced in accordance with the applicable staging category set out for the item in Column I of its Schedule to this Annex, or reduced in accordance with the applicable staging category otherwise indicated.

    • 7. Paragraphs 4 through 6 and 10 through 13 shall not apply to textile and apparel goods identified in Appendix 1.1 (TLCAN: Apendice 1.1) of Annex 300-B (TLCAN: Anexo 300-B) (Textiles and Apparel Goods).

    8. Paragraphs 4, 5 and 6 shall not apply to agricultural goods as defined in Article 708 (TLCAN: Art. 708). For these goods, Canada shall apply the rate applicable under the staging category set out for an item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement to an originating good when the good qualifies to be marked as a good of the United States pursuant to Annex 311 (TLCAN: Anexo 311), without regard to whether the good is marked. When an originating good qualifies to be marked as a good of Mexico, pursuant to Annex 311 (TLCAN: Anexo 311), whether or not the good is marked, Canada shall apply the rate applicable under the staging category set out for an item in Column I of its Schedule to this Annex.

    9. As between the United States and Canada, Articles 401(7) (TLCAN: Art. 401) and 401(8) (TLCAN: Art. 401) of the Canada-United States Free Trade Agreement is hereby incorporated and made a part of this Annex. The term "goods originating in the territory of the United States of America" in Article 401(7) of that agreement shall be determined in accordance with paragraph 4 of this Annex. The term "goods originating shall be determined in accordance with paragraph 12 of this Annex.

    10. Mexico shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Column I of its Schedule to this Annex to an originating good when the good qualifies to be marked as a good of the United States, pursuant to Annex 311 (TLCAN: Anexo 311), without regard to whether the good is marked.

    11. Mexico shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Column II of its Schedule to this Annex to an originating good when the good qualifies to be marked as a good of Canada, pursuant to Annex 311 (TLCAN: Anexo 311), without regard to whether the good is marked.

    12. The United States shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement to an originating good when the good qualifies to be marked as a good of Canada pursuant to Annex 311 (TLCAN: Anexo 311), without regard to whether the good is marked.

    13. The United States shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in its Schedule to this Annex to an originating good when the good qualifies to be marked as a good of Mexico pursuant to Annex 311 (TLCAN: Anexo 311), whether or not the good is marked.

    Schedule of Canada

    (TARIFF SCHEDULE ATTACHED AS SEPARATE VOLUME)

    Schedule of Mexico

    (TARIFF SCHEDULE ATTACHED AS SEPARATE VOLUME)

    Schedule of the United States

    (TARIFF SCHEDULE ATTACHED AS SEPARATE VOLUME)