Issue 468, March 14, 2005

Presidential Proclamation 7870 liberalizing certain NAFTA rules of origin on certain goods has been published in the Federal Register.

The modifications made by the Proclamation shall be effective with respect to Canadian goods that are entered on or after January 1, 2005. They will become effective with respect to Mexican goods on a future, as yet undetermined date.

Importers who have imported and paid duties on Canadian goods affected by these changes since January 1, 2005 may make post-importation claims. The time frame for making a claim is one year from the date of importation.

The modifications affect some of the goods in the following chapters to the Harmonized Tariff Schedule of the United States (HTS):

	9: Spices, etc.
	12: Oil Seeds, oleaginous fruits, etc.
	13: Gums, resins and other vegetable saps and extracts, etc.
	21: Miscellaneous edible preparations,
	71: Jewelry, etc.
	85: Electrical machinery, etc.
	90: Measuring devices and instruments, etc.
	95: Toys, etc.

Notice that all of the rules of origin changes in Presidential Proclamation 7870 are liberalizations of last year's rules. Goods that did not qualify last year under the rules of origin may now qualify under the new rules. For example, grinding ginger from unground ginger now is an activity that results in a NAFTA qualifying article. Last year it would not have qualified.

Producers and exporters wishing to certify affected goods as originating for export to Mexico must continue to comply with the previous, stricter rules of origin until such time as the new rules take effect regarding Mexico. Exports to Canada, however, need only comply with the new, more liberal rules. This uneven application of rules of origin will remain in effect until an announcement is made by the US Trade Representative in the Federal Register.

For more information regarding these changes, please refer to the Federal Register proclamation online at: http://a257.g.akamaitech.net/7/257/2422/15feb20050800/edocket.access.gpo.gov/2005/pdf/05-2937.pdf

Our contributing writer, Karl Krueger, is the Technical Advisor for DHL Danzas Air & Ocean in Port Huron, Michigan. If you have any questions or require further information, please contact Mr. Krueger at Karl.Krueger@dhl.com or 810-987-0567.

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.