Sewing Thread. Upon entry into force of the agreement, sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread may be sourced from anywhere. However, effective 12 months after the date of entry into force of the agreement, apparel containing sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread shall be considered originating only if such sewing thread is both formed and finished in the territory of one or more of the Parties. Pocket Bag Fabric Upon entry into force of the agreement, the pocket bag fabric may be sourced from anywhere. However, effective 18 months after the date of entry into force of the agreement, if an apparel or other finished product, contains a pocket or pockets, the pocket bag fabric must be both formed and finished in one or more of the Parties from yarn that was wholly formed in one or more of the Parties. The component must also satisfy the tariff change requirement(s) that apply to the good. For apparel made of blue denim fabric of subheadings 5209.42, 5211.42, 5212.24, and 5514.30, the pocket bag fabric rule is effective 30 months from the date of entry into force of the agreement. Coated Fabrics Upon entry into force of the agreement, coated or laminated fabrics used in the assembly of a textile article of Chapter 63 are exempt from the USMCA rules of origin. However, effective 18 months after the date of entry into force of the agreement, a good of Chapter 63 made of fabric classified in 5903, is considered to be originating only if all the fabrics used in the production of the fabrics of heading 5903 are formed and finished in Canada, Mexico or the United States. However, this does not apply to the following goods. • 6305 – Bags, • 6306.12 – Tarpaulins, awnings, and sun-blinds of synthetic fibers, • 6306.22 – Tents of synthetic fibers, and miscellaneous made-up articles of subheading 6307.90 that are not surgical towels or national flags. (Fabrics of heading 5903 are coated, laminated or impregnated.)
Sewing Thread. Upon entry into force of the Agreement, sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread, used in apparel products of Chapter 61 and 62, may be sourced from anywhere. However, effective 12 months after the date of entry into force of the Agreement, apparel containing sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread shall be considered originating only if such sewing thread is both formed and finished in the territory of one or more of the USMCA countries. The apparel article must also satisfy the tariff shift requirements(s) that apply to the good. Sewing thread is considered formed and finished in the territory of one or more USMCA countries if all production processes and finishing operations, starting with the extrusion of filaments, strips, film or sheet, and including slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with the finished single or plied thread ready for use for sewing without further processing, took place in the territories of one or more of the USMCA countries even if non- originating fiber is used in the production of sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread. Pocket Bag Fabric Upon entry into force of the Agreement, the pocket bag fabric used in apparel products of Chapter 61 and 62 may be sourced from anywhere. However, effective 18 months after the date of entry into force of the Agreement, for apparel containing a pocket or pockets, the pocket bag fabric must be both formed and finished in one or more of the USMCA countries from yarn that was wholly formed in one or more of the USMCA countries. The component must also satisfy the tariff shift requirement(s) that apply to the good. For apparel of Chapter 62 made of blue denim fabric of subheadings 5209.42, 5211.42, 5212.24, and 5514.30, the pocket bag fabric rule is effective 30 months from the date of entry into force of the Agreement. Pocket bag fabric is considered formed and finished in the territory of one or more of the USMCA countries if all production processes and finishing operations, starting with the weaving, knitting, needling, tufting, felting, entangling, or other process, and ending with the fabric ready for cutting or assembly without further processing, took place in the territories of one or more of the USMCA countries, even if non-originating fiber is used in the production of the ...
