2020 October No.67 – Free Trade Agreements


A Plastics Milling Plant located in New York City imports Canadian polypropylene pellets (correctly classified in 3902.10.0000, HTSUS) for grinding into polypropylene powder (correctly classified 3902.10.0000, HTSUS). The powder is made solely from the foreign material. The company claims the good has been substantially transformed making the country of origin the United States. Which of the following statements is CORRECT?

A. The term, ??country of origin??, always means the country of exportation of any article of foreign origin entering the United States

B. Any further work added to an article in another country is always enough to render such other country the, ??country of origin??

C. The ??NAFTA Marking Rules?? are never used to determine the country of origin for a NAFTA country

D. The ??NAFTA Marking Rules?? never require that each foreign material incorporated in that good undergoes an applicable change in tariff classification

E. The ??NAFTA Marking Rules?? require a change to heading 3901 through 3915 from any other heading, including another heading within that group. The required tariff heading change does not occur, therefore, the country of origin of the product remains Canadian

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The Answer is : E

Citation: 19CFR?? 102.20(g)

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