North American Free Trade Agreement (NAFTA)

Part Two: Trade in Goods

Chapter Three: National Treatment and Market Access for Goods

Section

Article 300: Scope and Coverage

This Chapter applies to trade in goods of a Party, including:

Section A - National Treatment

Article 301: National Treatment

1. Each Party shall accord national treatment to the goods of another Party in accordance with Article III of the General Agreement on Tariffs and Trade (GATT), including its interpretative notes, and to this end Article III of the GATT and its interpretative notes, or any equivalent provision of a successor agreement to which all Parties are party, are incorporated into and made part of this Agreement.

2. The provisions of paragraph 1 regarding national treatment shall mean, with respect to a state or province, treatment no less favorable than the most favorable treatment accorded by such state or province to any like, directly competitive or substitutable goods, as the case may be, of the Party of which it forms a part.

3. Paragraphs 1 and 2 do not apply to the measures set out in Annex 301.3.

Section B - Tariffs

Article 302: Tariff Elimination

1. Except as otherwise provided in this Agreement, no Party may increase any existing customs duty, or adopt any customs duty, on an originating good.

2. Except as otherwise provided in this Agreement, each Party shall progressively eliminate its customs duties on originating goods in accordance with its Schedule to Annex 302.2.

3. On the request of any Party, the Parties shall consult to consider accelerating the elimination of customs duties set out in their Schedules. An agreement between two or more Parties to accelerate the elimination of a customs duty on a good shall supersede any duty rate or staging category determined pursuant to their Schedules for such good when approved by each such Party in accordance with its applicable legal procedures.

4. Each Party may adopt or maintain import measures to allocate in-quota imports made pursuant to a tariff rate quota set out in Annex 302.2, provided that such measures do not have trade restrictive effects on imports additional to those caused by the imposition of the tariff rate quota.

5. On written request of any Party, a Party applying or intending to apply measures pursuant to paragraph 4 shall consult to review the administration of those measures.

Article 303: Restriction on Drawback and Duty Deferral Programs

1. Except as otherwise provided in this Article, no Party may refund the amount of customs duties paid, or waive or reduce the amount of customs duties owed, on a good imported into its territory, on condition that the good is:

2. No Party may, on condition of export, refund, waive or reduce:

3. Where a good is imported into the territory of a Party pursuant to a duty deferral program and is subsequently exported to the territory of another Party, or is used as a material in the production of another good that is subsequently exported to the territory of another Party, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of another Party, the Party from whose territory the good is exported:

4. In determining the amount of customs duties that may be refunded, waived or reduced pursuant to paragraph 1 on a good imported into its territory, each Party shall require presentation of satisfactory evidence of the amount of customs duties paid to another Party on the good that has been subsequently exported to the territory of that other Party.

5. Where satisfactory evidence of the customs duties paid to the Party to which a good is subsequently exported under a duty deferral program described in paragraph 3 is not presented within 60 days after the date of exportation, the Party from whose territory the good was exported:

6. This Article does not apply to:

7. Except for paragraph 2(d), this Article shall apply as of the date set out in each Party's Section of Annex 303.7.

8. Notwithstanding any other provision of this Article and except as specifically provided in Annex 303.8, no Party may refund the amount of customs duties paid, or waive or reduce the amount of customs duties owed, on a non-originating good provided for in item 8540.11.aa (color cathode-ray television picture tubes, including video monitor tubes, with a diagonal exceeding 14 inches) or 8540.11.cc (color cathoderay television picture tubes for high definition television, with a diagonal exceeding 14 inches) that is imported into the Party's territory and subsequently exported to the territory of another Party, or is used as a material in the production of another good that is subsequently exported to the territory of another Party, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of another Party.

9. For purposes of this Article:

customs duties are the customs duties that would be applicable to a good entered for consumption in the customs territory of a Party if the good were not exported to the territory of another party;

identical or similar goods means "identical or similar goods" as defined in Article 415 (Rules of Origin Definitions);

material means "material" as defined in Article 415;

used means "used" as defined in Article 415.

10. For purposes of the Article:

Where a good referred to by a tariff item number in this Article is described in parentheses following the tariff item number, the description is provided for purposes of reference only.

Article 304: Waiver of Customs Duties

1. Except as set out in Annex 304.1, no Party may adopt any new waiver of customs duties, or expand with respect to existing recipients or extend to any new recipient the application of an existing waiver of customs duties, where the waiver is conditioned, explicitly or implicitly, on the fulfillment of a performance requirement.

2. Except as set out in Annex 304.2, no Party may, explicitly or implicitly, condition on the fulfillment of a performance requirement the continuation of any existing waiver of customs duties.

3. If a waiver or a combination of waivers of customs duties granted by a Party with respect to goods for commercial use by a designated person can be shown by another Party to have an adverse impact on the commercial interests of a person of that Party, or of a person owned or controlled by a person of that Party that is located in the territory of the Party granting the waiver, or on the other Party's economy, the Party granting the waiver shall either cease to grant it or make it generally available to any importer.

4. This Article shall not apply to measures subject to Article 303.

Article 305: Temporary Admission of Goods

1. Each Party shall grant duty-free temporary admission for:

imported from the territory of another Party, regardless of their origin and regardless of whether like, directly competitive or substitutable goods are available in the territory of the Party.

2. Except as otherwise provided in this Agreement, no Party may condition the duty-free temporary admission of a good referred to in paragraph 1(a), (b) or (c), other than to require that such good:

3. Except as otherwise provided in this Agreement, no Party may condition the duty-free temporary admission of a good referred to in paragraph 1(d), other than to require that such good:

4. A Party may impose the customs duty and any other charge on a good temporarily admitted duty-free under paragraph 1 that would be owed on entry or final importation of such good if any condition that the Party imposes under paragraph 2 or 3 has not been fulfilled.

5. Subject to Chapters Eleven (Investment) and Twelve (Cross Border Trade in Services):

6. For purposes of paragraph 5, "vehicle" means a truck, a truck tractor, tractor, trailer unit or trailer, a locomotive, or a railway car or other railroad equipment.

Article 306: Duty-Free Entry of Certain Commercial Samples and Printed Advertising Materials

Each Party shall grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of another Party, regardless of their origin, but may require that:

Article 307: Goods Re-Entered after Repair or Alteration

1. Except as set out in Annex 307.1, no Party may apply a customs duty to a good, regardless of its origin, that re enters its territory after that good has been exported from its territory to the territory of another Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory.

2. Notwithstanding Article 303, no Party may apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of another Party for repair or alteration.

3. Annex 307.3 applies to the Parties specified in that Annex respecting the repair and rebuilding of vessels.

Article 308: Most­Favored­Nation Rates of Duty on Certain Goods

1. Annex 308.1 applies to certain automatic data processing goods and their parts.

2. Annex 308.2 applies to certain color television tubes.

3. Each Party shall accord most­favored­nation duty-free treatment to any local area network apparatus imported into its territory, and shall consult in accordance with Annex 308.3.

Section C - Non-Tariff Measures

Article 309: Import and Export Restrictions

1. Except as otherwise provided in this Agreement, no Party may adopt or maintain any prohibition or restriction on the importation of any good of another Party or on the exportation or sale for export of any good destined for the territory of another Party, except in accordance with Article XI of the GATT, including its interpretative notes, and to this end Article XI of the GATT and its interpretative notes, or any equivalent provision of a successor agreement to which all Parties are party, are incorporated into and made a part of this Agreement.

2. The Parties understand that the GATT rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, export price requirements and, except as permitted in enforcement of countervailing and antidumping orders and undertakings, import price requirements.

3. In the event that a Party adopts or maintains a prohibition or restriction on the importation from or exportation to a non-Party of a good, nothing in this Agreement shall be construed to prevent the Party from:

4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on request of any Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing and distribution arrangements in another Party.

5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 301.3.

Article 310: Customs User Fees

1. No Party may adopt any customs user fee of the type referred to in Annex 310.1 for originating goods.

2. The Parties specified in Annex 310.1 may maintain existing such fees in accordance with that Annex.

Article 311: Country of Origin Marking

Annex 311 applies to measures relating to country of origin marking.

Article 312: Wine and Distilled Spirits

1. No Party may adopt or maintain any measure requiring that distilled spirits imported from the territory of another Party for bottling be blended with any distilled spirits of the Party.

2. Annex 312.2 applies to other measures relating to wine and distilled spirits.

Article 313: Distinctive Products

Annex 313 applies to standards and labelling of the distinctive products set out in that Annex.

Article 314: Export Taxes

Except as set out in Annex 314, no Party may adopt or maintain any duty, tax or other charge on the export of any good to the territory of another Party, unless such duty, tax or charge is adopted or maintained on:

Article 315: Other Export Measures

1. Except as set out in Annex 315, a Party may adopt or maintain a restriction otherwise justified under Articles XI:2(a) or XX(g), (i) or (j) of the GATT with respect to the export of a good of the Party to the territory of another Party, only if:

2. The Parties shall cooperate in the maintenance and development of effective controls on the export of each other's goods to a non-Party in implementing this Article.

Section D - Consultations

Article 316: Consultations and Committee on Trade in Goods

1. The Parties hereby establish a Committee on Trade in Goods, comprising representatives of each Party.

2. The Committee shall meet on the request of any Party or the Commission to consider any matter arising under this Chapter.

3. The Parties shall convene at least once each year a meeting of their officials responsible for customs, immigration, inspection of food and agricultural products, border inspection facilities, and regulation of transportation for the purpose of addressing issues related to movement of goods through the Parties' ports of entry.

Article 317: Third Country Dumping

1. The Parties affirm the importance of cooperation with respect to actions under Article 12 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade.

2. Where a Party presents an application to another Party requesting antidumping action on its behalf, those Parties shall consult within 30 days respecting the factual basis of the request, and the requested Party shall give full consideration to the request.

Section E - Definitions

Article 318: Definitions

For purposes of this Chapter:

advertising films means recorded visual media, with or without soundtracks, consisting essentially of images showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of any Party, provided that the films are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public, and provided that they are imported in packets that each contain no more than one copy of each film and that do not form part of a larger consignment;

commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the currency of another Party, or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or for use except as commercial samples;

consumed means:

customs duty includes any customs or import duty and a charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:

distilled spirits include distilled spirits and distilled spirit­containing beverages;

duty deferral program includes measures such as those governing foreign trade zones, temporary importations under bond, bonded warehouses, "maquiladoras", and inward processing programs;

duty-free means free of customs duty;

goods imported for sports purposes means sports requisites for use in sports contests, demonstrations or training in the territory of the Party into whose territory such goods are imported;

goods intended for display or demonstration includes their component parts, ancillary apparatus and accessories;

item means a tariff classification item at the eight- or 10-digit level set out in a Party's tariff schedule;

local area network apparatus means a good dedicated for use solely or principally to permit the interconnection of automatic data processing machines and units thereof for a network that is used primarily for the sharing of resources such as central processor units, data storage devices and input or output units, including in-line repeaters, converters, concentrators, bridges and routers, and printed circuit assemblies for physical incorporation into automatic data processing machines and units thereof suitable for use solely or principally with a private network, and providing for the transmission, receipt, error-checking, control, signal conversion or correction functions for non-voice data to move through a local area network;

performance requirement means a requirement that:

printed advertising materials means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote, publicize or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge;

repair or alteration does not include an operation or process that either destroys the essential characteristics of a good or creates a new or commercially different good;

satisfactory evidence means:

total export shipments means all shipments from total supply to users located in the territory of another Party;

total supply means all shipments, whether intended for domestic or foreign users, from:

waiver of customs duties means a measure that waives otherwise applicable customs duties on any good imported from any country, including the territory of another Party.

Annex 301.3: Exceptions to Articles 301 and 309

Section A - Canadian Measures

1. Articles 301 and 309 shall not apply to controls by Canada on the export of logs of all species.

2. Articles 301 and 309 shall not apply to controls by Canada on the export of unprocessed fish pursuant to the following existing statutes, as amended as of August 12, 1992:

3. Articles 301 and 309 shall not apply to:

to the extent that such provisions were mandatory legislation at the time of Canada's accession to the GATT and have not been amended so as to decrease their conformity with the GATT.

4. Articles 301 and 309 shall not apply to quantitative import restrictions on goods that originate in the territory of the United States, considering operations performed in, or materials obtained from, Mexico as if they were performed in, or obtained from, a non-Party, and that are indicated by asterisks in Chapter 89 in Annex 401.2 (Tariff Schedule of Canada) of the Canada United States Free Trade Agreement for as long as the measures taken under the Merchant Marine Act of 1920, 46 App. U.S.C. §§ 883, and the Merchant Marine Act of 1936, 46 App. U.S.C. §§ 1171, 1176, 1241 and 1241o, apply with quantitative effect to comparable Canadian origin goods sold or offered for sale into the U.S. market.

5. Articles 301 and 309 shall not apply to:

Section B - Mexican Measures

1. Articles 301 and 309 shall not apply to controls by Mexico on the export of logs of all species.

2. Articles 301 and 309 shall not apply to:

3. Articles 301 and 309 shall not apply to:

4.

Note: (For purposes of reference only, descriptions are provided next to the corresponding item.)

8407.34.99
Gasoline engines of more than 1,000 cm3, except for motorcycles

8413.11.01
Distributors fitted with a measuring device even if it includes a totalizing mechanism

8413.40.01
Trailer type, from 36 up to 60 m3/hr capacity; without hydraulic elevator for the discharge hose

8426.12.01
Mobile portals on tires and straddle carriers

8426.19.01
Other (overhead travelling cranes, bridge cranes and straddle carriers)

8426.30.01
Portal cranes

8426.41.01
Cranes with structural iron jib (lattice) with mechanical working, self-propelled, with unit weight up to 55 tons

8426.41.02
Cranes with hydraulically actuated rigid jib, selfpropelled with maximum capacity above 9.9 tons and not exceeding 30 tons

8426.41.99
Other (machinery and apparatus, self propelled, on tires)

8426.49.01
Cranes with structural iron jib (lattice) with mechanical working, with unit weight up to 55 tons

8426.49.02
Cranes with hydraulically actuated rigid jib, selfpropelled, with load capacity above 9.9 tons and not exceeding 30 tons

8426.91.01
Cranes, other than those provided for in items 8426.91.02, 8426.91.03 and 8426.91.04

8426.91.02
Cranes with hydraulic working, with articulated or rigid booms, with capacity up to 9.9 tons at 1 meter radius

8426.91.03
Isolated elevating cranes, basket type, with carrying capacity equal to or less than 1 ton and up to 15 meters lift

8426.91.99
Other (machinery and apparatus; designed for mounting on road vehicles)

8426.99.01
Cranes, other than those provided for in items 8426.91.02

8426.99.02
Swivel cranes

8426.99.99
Other (cranes and air cables ("blondines"); overhead travelling cranes, handling or unloading frames, bridge cranes, straddle carriers and straddle cranes)

8427.10.01
With load capacity up to 3,500 kilograms, measured at 620 millimeters from the frontal surface of the forks, without battery or loader

8427.20.01
With explosion or internal combustion engine, with carrying capacity up to 7,000 kilograms, measured at 620 millimeters from the frontal surface of the forks

8428.40.99
Other (escalators and moving walkways)

8428.90.99
Other (machinery and apparatus for lifting, loading, unloading or handling)

8429.11.01
Caterpillar type

8429.19.01
Other (bulldozers and angledozers)

8429.20.01
Graders

8429.30.01
Scrapers

8429.40.01
Tamping machines

8429.51.02
Frontend loader with hydraulic working, wheeltype, with capacity equal or less than 335 HP

8429.51.03
Mechanical shovels, other than those provided for in item 8429.51.01

8429.51.99
Other (mechanical shovels, excavators, loaders and frontend shovel loaders)

8429.52.02
Draglines or excavators, other than those provided for in item 8429.52.01

8429.52.99
Other (machinery with a 360 revolving superstructure)

8429.59.01
Trenchers

8429.59.02
Draglines, with dragging load capacity up to 4,000 kilograms

8429.59.03
Draglines or excavators, other than those provided for in item 8429.59.04

8429.59.99
Other (selfpropelled bulldozers, angledozers, graders, scrapers, mechanical shovels, excavators, loaders, shovel loaders, tamping machines and road rollers)

8430.31.01
Rotation and/or percussion perforators

8430.31.99
Other (selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)

8430.39.01
Boring shields

8430.39.99
Other (not selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)

8430.41.01
Boring or sinking machinery, other than those provided for in item 8430.41.02

8430.41.99
Other (selfpropelled probing or boring machinery)

8430.49.99
Other (not selfpropelled probing or boring machinery)

8430.50.01
Excavators, frontal carriers with hydraulic mechanism, with capacity equal to or less than 335 h.p

8430.50.02
Scrapers

8430.50.99
Other (selfpropelled machinery and apparatus)

8430.61.01
Graders (pushers)

8430.61.02
Tamping or compacting rollers

8430.61.99
Other (machinery and apparatus, not selfpropelled)

8430.62.01
Scarification machine (ripping machine)

8430.69.01
Scrapers, not selfpropelled

8430.69.02
Trencher machine, other than those provided for in item 8430.69.03

8430.69.99
Other (trenchers, other than those provided for in items 8430.69.01, 8430.69.02 and 8430.69.03)

8452.10.01
Sewing machines of the household type

8452.21.04
Industrial machines, other than those provided for in items 8452.21.02, 8452.21.03 and 8452.21.05

8452.21.99
Other (automatic sewing machines)

8452.29.05
Machines or heads for industrial use, with straight seams, straight needle and a rotating and oscillating thread linking device, double backstitching, flat bed and transportation only

8452.29.06
Industrial machines, other than those provided for in items 8452.29.01, 8452.29.03 and 8452.29.05

8452.29.99
Other (non-automatic sewing machines)

8452.90.99
Other (parts of sewing machines)

8471.10.01
Analogue or hybrid automatic data processing machines

8471.20.01
Digital or numerical automatic data processing machines, containing in the same housing at least a central processing unit and an input and output unit

8471.91.01
Numerical or digital processing units, even if presented with the rest of the system, including one or two of the following types of units contained in the same housing: storage units, input units, output unit

8471.92.99
Other (input or output units whether or not entered with the rest of a system and whether or not containing storage units in the same housing)

8471.93.01
Storage units, including the rest of the system

8471.99.01
Other (automatic data processing machines and units thereof)

8474.20.01
Crushing and grinding with two or more cylinders

8474.20.02
Crushing jawbone and grinding millstone

8474.20.03
Blade crushing machines

8474.20.04
Crushing machines of balls or bars

8474.20.05
Drawer cone crushing, with diameter no more than 1200 millimeters

8474.20.06
Grinding hammer percussion

8474.20.99
Other (machines and apparatus to break, crush or grind or pulverize dirt, stones and other solid mineral materials)

8474.39.99
Other (mixing machines)

8474.80.99
Other (machines and apparatus to classify, sieve, separate, break, crush, grind, mix, or knead dirt, stones and other mineral materials)

8475.10.01
Machines for assembling lamps

8477.10.01
Injectionmolding machines for thermoplastic materials, up to 5 kg capacity for one molding model

8701.30.01
Caterpillar tractors with an engine power at the flywheel equal to or above 105 h.p., but less than 380 h.p. measured at 1,900 rpm, including pushing blade

8701.90.02
Railroad tractors, on tires with mechanical mechanism for pavement

8711.10.01
Motorcycles fitted with an auxiliary motor with reciprocating piston engine not exceeding 50 cm3

8711.20.01
Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 50 cm3 but not over 250 cm3

8711.30.01
Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 250 cm3 but not over 500 cm3

8711.40.01
Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 500 cm3 but less than 550 cm3

8711.90.99
Other (motorcycles, cycles fitted with an auxiliary motor and sidecars without a reciprocating piston engine, and that are not sidecars for motorcycles and velocipedes of any kind presented separately)

8712.00.02
Bicycles, other than of the type for racing

8712.00.99
Other (cycles, not motorized, except bicycles, and tricycles for the transport of merchandise)

8716.10.01
Trailers and semitrailers for housing and camping, of the caravan type

8716.31.02
Steeltank type tankers, including cryogenic or hoppers

8716.31.99
Other (tankers except of the steeltank type, and of the thermal type for the transportation of milk)

8716.39.01
Trailers or semitrailers of the platform type, with or without stakes, including those accepted for the transport of boxes or metal baskets for cans and bottles or container carriers, or low beds, except those with hydraulic or pneumatic suspension and collapsible gooseneck

8716.39.02
Trailers or semitrailers for the transport of vehicles

8716.39.04
Trailers of the modularplatform type with directional axis, including transporter bridge section, hydraulic couplings or gooseneck or motor for hydraulic conditioning of the equipment

8716.39.05
Semitrailers of the lowbed type, with pneumatic or hydraulic suspension and collapsible gooseneck

8716.39.06
Trailers and semitrailers of the closedbox type, including refrigerated

8716.39.07
Trailers and semitrailers of the steeltank type, including cryogenic and hoppers

8716.39.99
Other (trailers and semitrailers for the transportation of goods, other than those provided for in items 8716.39.01, 8716.39.02, 8716.39.04, 8716.39.05, 8716.39.06 and 8716.39.07, and that are not vehicles for the transport of goods, with solid rubber wheels, nor doubledecker trailers or semitrailers of the type recognized as used exclusively for hauling cattle

8716.40.01
Other trailers and semitrailers not used for transporting goods

8716.80.99
Other (non-automotive vehicles except trailers or semitrailers, wheel barrows and handcarts, or wheel barrows of hydraulic operation)

8413.11.01
Distributors fitted with a measuring device even if it includes a totalizing mechanism

8413.40.01
Concrete pumps for liquids, not fitted with a measuring device from 36 up to 60 m3/hr capacity

8426.12.01
Mobile portals on tires and straddle carriers

8426.19.01
Other (overhead travelling cranes, bridge cranes and straddle carriers)

8426.30.01
Portal cranes

8426.41.01
Cranes with hydraulically actuated rigid jib, selfpropelled with maximum capacity above 9.9 tons and not exceeding 30 tons

8426.41.02
Cranes with structural iron jib (lattice) with mechanical working, selfpropelled, with unit weight up to 55 tons

8426.41.99
Other (machinery and apparatus, self propelled, on tires)

8426.49.01
Cranes with structural iron jib (lattice) with mechanical working, with unit weight up to 55 tons

8426.49.02
Cranes with hydraulically actuated rigid jib, selfpropelled, with load capacity above 9.9 tons and not exceeding 30 tons

8426.91.01
Cranes, other than those provided for in items 8426.91.02, 8426.91.03 and 8426.91.04

8426.99.01
Cranes

8426.99.02
Swivel cranes

8426.99.99
Other (cranes and air cables ("blondines"); overhead travelling cranes, handling or unloading frames, bridge cranes, straddle carriers and straddle cranes)

8427.10.01
With load capacity up to 3,500 kilograms, measured at 620 millimeters from the frontal surface of the forks, without battery or loader

8428.40.99
Other (escalators and moving walkways)

8428.90.99
Other (machinery and apparatus for lifting, loading, unloading or handling)

8429.11.01
Caterpillar type

8429.19.01
Other (bulldozers and angledozers)

8429.30.01
Scrapers

8429.40.01
Tamping machines

8429.51.02
Frontend loader with hydraulic working, wheeltype, with capacity equal or less than 335 HP

8429.51.03
Mechanical shovels, other than those provided for in item 8429.51.01

8429.51.99
Other (mechanical shovels, excavators, loaders and frontend shovel loaders)

8429.52.02
Draglines or excavators, other than those provided for in item 8429.52.01

8429.52.99
Other (machinery with a 360 revolving superstructure)

8429.59.01
Trenchers

8429.59.02
Draglines, with dragging load capacity up to 4,000 kilograms

8429.59.03
Draglines or excavators, other than those provided for in item 8429.59.04

8429.59.99
Other (selfpropelled bulldozers, angledozers, graders, scrapers, mechanical shovels, excavators, loaders, shovel loaders, tamping machines and road rollers)

8430.31.01
Rotation and/or percussion perforators

8430.31.99
Other (selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)

8430.39.01
Boring shields

8430.39.99
Other (not selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)

8430.41.01
Boring or sinking machinery, other than those provided for in item 8430.41.02

8430.41.99
Other (selfpropelled probing or boring machinery)

8430.49.99
Other (not selfpropelled probing or boring machinery)

8430.50.01
Excavators, frontal loaders with hydraulic mechanism, with capacity equal to or less than 335 h.p.

8430.50.02
Scrapers

8430.50.99
Other (selfpropelled machinery and apparatus)

8430.61.01
Graders (pushers)

8430.61.02
Tamping or compacting rollers

8430.62.01
Scarification machine (ripping machine)

8430.69.01
Scrapers, not selfpropelled

8430.69.02
Trencher machine, other than those provided for in item 8430.69.03

8430.69.99
Other (trenchers, other than those provided for in items 8430.69.01, 8430.69.02 and 8430.69.03)

8452.10.01
Sewing machines of the household type

8452.21.04
Industrial machines, other than those provided for in items 8452.21.02, 8452.21.03 and 8452.21.05

8452.21.99
Other (automatic sewing machines)

8452.29.06
Industrial machines, other than those provided for in items 8452.29.01, 8452.29.03 and 8452.29.05

8452.29.99
Other (non-automatic sewing machines)

8452.90.99
Other (parts of sewing machines)

8471.10.01
Analogue or hybrid automatic data processing machines

8474.20.01
Crushing and grinding with two or more cylinders

8474.20.03
Blade crushing machines

8474.20.04
Crushing machines of balls or bars

8474.20.99
Other (machines and apparatus to break, crush or grind or pulverize dirt, stones and other solid mineral materials)

8474.39.99
Other (mixing machines)

8474.80.99
Other (machines and apparatus to classify, sieve, separate, break, crush, grind, mix, or knead dirt, stones and other mineral materials)

8477.10.01
Injectionmolding machines for thermoplastic materials, up to 5 kg capacity for one molding model

8701.30.01
Caterpillar tractors with an engine power at the flywheel equal to or above 105 h.p., but less than 380 h.p. measured at 1,900 rpm, including pushing blade

Section C - U.S. Measures

1. Articles 301 and 309 shall not apply to controls by the United States on the export of logs of all species.

2. Articles 301 and 309 shall not apply to:

3. Articles 301 and 309 shall not apply to:

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):

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, 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:

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:

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:

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

8. Paragraphs 4, 5 and 6 shall not apply to agricultural goods as defined in Article 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 Agreementto an originating good when the good qualifies to be marked as a good of the United States pursuant to Annex 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, 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) and 401(8) 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, 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, 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, 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, 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)

Annex 303.6: Goods Not Subject to Article 303

1. For exports from the territory of the United States to the territory of Canada or Mexico, a good provided for in U.S. tariff item 1701.11.02 that is imported into the territory of the United States and used as a material in the production of, or substituted by an identical or similar good used as a material in the production of, a good provided for in Canadian tariff item 1701.99.00 or Mexican tariff items 1701.99.01 and 1701.99.99 (refined sugar) is not subject to Article 303.

2. For trade between Canada and the United States the following are not subject to Article 303:

Annex 303.7: Effective Dates for the Application of Article 303

Section A - Canada

For Canada, Article 303 shall apply to a good imported into the territory of Canada that is:

Section B - Mexico

For Mexico, Article 303 shall apply to a good imported into the territory of Mexico that is:

Section C - United States

For the United States, Article 303 shall apply to a good imported into the territory of the United States that is:

Annex 303.8: Exception to Article 303(8) for Certain Color Cathode-Ray Television Picture Tubes

Mexico

Mexico may refund customs duties paid, or waive or reduce the amount of customs duties owed, on a good provided for in item 8540.11.aa (color cathode-ray television picture tubes, including video monitor cathode-ray tubes, with a diagonal exceeding 14 inches) or 8540.11.cc (color cathode-ray television picture tubes for high definition television, with a diagonal exceeding 14 inches) for a person who, during the period July 1, 1991 through June 30, 1992, imported into its territory no fewer than 20,000 units of such good that would not have been considered to be an originating good had this Agreement been in force during that period, where the good is:

Annex 304.1: Exceptions for Existing Waiver Measures

Article 304(1) shall not apply in respect of existing Mexican waivers of customs duties, except that Mexico shall not:

Annex 304.2: Continuation of Existing Waivers of Customs Duties

For purposes of Article 304(2):

Annex 307.1: Goods Re-Entered after Repair or Alteration

Section A - Canada

Canada may impose customs duties on goods, regardless of their origin, that re-enter its territory after such goods have been exported from its territory to the territory of another Party for repair or alteration as follows:

Section B - Mexico

Mexico may impose customs duties on goods set out in Section D, regardless of their origin, that re-enter its territory after such goods have been exported from its territory to the territory of another Party for repair or alteration, by applying to the value of the repair or alteration of those goods the rate of customs duty for such goods that would apply if such goods were included in staging category B in Mexico's Schedule to Annex 302.2.

Section C - United States

1. The United States may impose customs duties on:

regardless of their origin, that reenter its territory after such goods have been exported from its territory to the territory of Canada for repair or alteration, by applying to the value of the repair or alteration of such goods the rate of customs duty applicable under the Canada United States Free Trade Agreement, as incorporated into Annex 302.2 of this Agreement.

2. The United States may impose customs duties on goods set out in Section D, regardless of their origin, that re­enter its territory after such goods have been exported from its territory to the territory of Mexico for repair or alteration, by applying to the value of the repair or alteration of such goods a rate of customs duty of 50 percent reduced in five equal annual stages beginning on January 1, 1994, and the value of such repair or alteration shall be duty-free on January 1, 1998.

Section D - List of Goods

Any vessel, including the following goods, documented by a Party under its law to engage in foreign or coastwise trade, or a vessel intended to be employed in such trade:

Annex 307.3: Repair and Rebuilding of Vessels

United States

For the purpose of increasing transparency regarding the types of repairs that may be performed in shipyards outside the territory of the United States that do not result in any loss of privileges for such vessel to:

the United States shall,

Annex 308.1: Most-Favored-Nation Rates of Duty on Certain Automatic Data Processing Goods and Their Parts

Section A - General Provisions

1. Each Party shall reduce its most-favored-nation rate of duty applicable to a good provided for under the tariff provisions set out in Tables 308.1.1 and 308.1.2 in Section B to the rate set out therein, to the lowest rate agreed by any Party in the Uruguay Round of Multilateral Trade Negotiations, or to such reduced rate as the Parties may agree, in accordance with the schedule set out in Section B, or with such accelerated schedule as the Parties may agree.

2. Notwithstanding Chapter Four (Rules of Origin), when the most-favored-nation rate of duty applicable to a good provided for under the tariff provisions set out in Table 308.1.1 in Section B conforms with the rate established under paragraph 1, each Party shall consider the good, when imported into its territory from the territory of another Party, to be an originating good.

3. A Party may reduce in advance of the schedule set out in Table 308.1.1 or Table 308.1.2 in Section B, or of such accelerated schedule as the Parties may agree, its most-favored-nation rate of duty applicable to any good provided for under the tariff provisions set out therein, to the lowest rate agreed by any Party in the Uruguay Round of Multilateral Trade Negotiations, or the rate set out in Table 308.1.1 or 308.1.2, or to such reduced rate as the Parties may agree.

4. For greater certainty, most-favored-nation rate of duty does not include any other concessionary rate of duty.

Section B - Rates of Duty and Schedule for Reduction

Table 308.1.1 - Rates of Duty and Schedule for Reduction
 Tariff RateScheduleFootnote 1
Automatic Data Processing Machines (ADP)
8471.303.9%S
8471.413.9%S
8471.493.9%S
8471.503.9%S
[Digital processing units, containing CPU and input & output unit in the same housing, whether or not combined]
8471.303.9%S
8471.413.9%S
Digital Processing Units
[Digital processing units, whether or not w/system]
8471.493.9%S
8471.503.9%S
Input or Output Units
Combined Input/Output Units:
Canada:
8471.60.103.7%S
Mexico:
8471.60.023.7%S
United States:
8471.60.103.7%S
Display Units:
Canada:
8528.41.00 [monochrome monitors]3.7%S
8528.51.00FreeS
8528.61.003.7%S
Mexico:
8528.41.01, 8528.41.993.7%S
8528.51.01, 8528.51.99, 8528.61.01FreeS
United States:
8528.51.00 [display units, w/out CRT, < 30.5 cm diag.]FreeS
8528.41.00 [display units, w/ CRT, not color]3.7%S
8528.51.00 [display units, w/out CRT]3.7%S
8528.61  
Other Input or Output Units:
Canada:
8471.60.40 [Optical scanners and magnetic ink recognition devices]FreeS
8471.60.50 [Card readers; Badge readers; Paper tape readers]FreeS
8471.60.90 [other]FreeS
Mexico:
8471.60.03 [optical scanners and magnetic ink recognition devices]3.7%S
8471.60.99 [other]  
United States:
8471.60.20 [keyboards]FreeS
8471.60.70 [units suitable for physical incorporation...]FreeS
8471.60.90.30 [card key & magnetic media entry devices]FreeS
8471.60.80 [optical scanners and magnetic ink recognition devices]3.7%S
8471.60.90.50 [other output devices, nes]FreeS
8471.60.90.50 [other input or output units, whether or not w/system, nes]FreeS
Storage Units
8471.70FreeS
Other Units of Automatic Data Processing Machines
8471.80FreeS
8517.62 [LAN equipment]  
Parts of Computers
8473.30 [parts of ADP machines and units thereof]FreeR
8443.99 [parts of machines of subheading 8443.31 and 8443.32, excluding facsimile machines and teleprinters]  
8517.70 [parts of LAN equipment of subheading 8517.62]  
8529.90 [parts of monitors and projectors of subheading 8528.41, 8528.51 and 8528.61]  
Computer Power Supplies
Canada:
8504.40.30  
8504.90.20  
Mexico:
8504.40.10FreeS
8504.40.14FreeS
United States:
8504.40.60 [Suitable for physical incorporation into automatic data processing machines or units thereof]FreeS
8504.40.70 [Computer power supplies other than those suitable for physical incorporation into automatic data processing machines or units thereof]FreeS
8504.90.20  
8504.90.40  
Table 308.1.2 - Rates of Duty and Schedule for Reduction
 Tariff RateScheduleTFoot 1
Metal Oxide Varistors
Canada:
8533.40.10FreeR
Mexico:
8533.40.05FreeR
United States:
8533.40.40 [metal oxide varistors]FreeR
Diodes, Transistors and Similar Semiconductor Devices; Photosensitive Semiconductor Devices; Light Emitting Diodes; Mounted Piezo-electric Crystals
8541.10 [diodes]FreeR
8541.21 [transistors, other than photosensitive]FreeR
8541.29 [other transistors, not photosensitive]FreeR
8541.30 [thyristors, discs and triacs]FreeR
8541.50 [semiconductors, nes]FreeR
8541.60 [mounted piezoelectronic crystals]FreeR
8541.90 [parts]FreeR
Canada:
8541.40FreeR
Mexico:
8541.40.01FreeR
United States:
8541.40.20 [LED’s]FreeS
8541.40.60 [other diodes]FreeR
8541.40.70 [transistors, photosensitive]FreeR
8541.40.80 [optical coupled isolators]FreeR
8541.40.95 [other photosensitive semiconductors]FreeR
Electronic Integrated Circuits
Canada:
8542.31.10  
8542.32.10  
8542.33.10  
8542.39.10  
8542.90.00  
Ex 8548.90.10 [electronic microassemblies]FreeR
Mexico:
85.42FreeR
8548.90.04 [electronic integrated circuits & microassemblies; parts]FreeR
United States:
85.42, ex 85.48 [electronic integrated circuits & microassemblies; parts]FreeR

Annex 308.2: Most-Favored-Nation Rates of Duty on Certain Color Cathode-Ray Television Picture Tubes

1. Any Party considering the reduction of its most-favored-nation rate of customs duty for goods provided for in item 8540.11.aa (color cathode-ray television picture tubes, including video monitor cathode-ray tubes, with a diagonal exceeding 14 inches) or 8540.11.cc (color cathode-ray television picture tubes for high definition television, with a diagonal exceeding 14 inches) during the first 10 years after the date of entry into force of this Agreement shall consult with the other Parties in advance of such reduction.

2. If any other Party objects in writing to such reduction, other than a reduction in the Uruguay Round of Multilateral Trade Negotiations, and the Party proceeds with the reduction, any objecting Party may raise its applicable rate of duty on originating goods provided for in the corresponding tariff item set out in its Schedule to Annex 302.2, up to the applicable rate of duty as if such good had been placed in staging category C for purpose of tariff elimination.

Annex 308.3: Most-Favored-Nation Duty-Free Treatment of Local Area Network Apparatus

To facilitate the operation of Article 308(3), the Parties shall consult regarding the tariff classification of local area network apparatus and shall endeavor to agree, no later than January 1, 1994, on the classification of such goods in each Party's tariff schedule.

Annex 310.1: Existing Customs User Fees

Section A - Mexico

Mexico shall not increase its customs processing fee ("derechos de trímite aduanero") on originating goods, and shall eliminate such fee on originating goods by June 30, 1999.

Section B - United States

1. The United States shall not increase its merchandise processing fee and shall eliminate such fee according to the schedule set out in Article 403 of the Canada - United States Free Trade Agreement on originating goods where those goods qualify to be marked as goods of Canada pursuant to Annex 311, without regard to whether the goods are marked.

2. The United States shall not increase its merchandise processing fee and shall eliminate such fee by June 30, 1999, on originating goods where those goods qualify to be marked as goods of Mexico pursuant to Annex 311, without regard to whether the goods are marked.

Annex 311: Country of Origin Marking

1. The Parties shall establish by January 1, 1994, rules for determining whether a good is a good of a Party ("Marking Rules") for purposes of this Annex, Annex 300-B and Annex 302.2, and for such other purposes as the Parties may agree.

2. Each Party may require that a good of another Party, as determined in accordance with the Marking Rules, bear a country of origin marking, when imported into its territory, that indicates to the ultimate purchaser of that good the name of its country of origin.

3. Each Party shall permit the country of origin marking of a good of another Party to be indicated in English, French or Spanish, except that a Party may, as part of its general consumer information measures, require that an imported good be marked with its country of origin in the same manner as prescribed for goods of that Party.

4. Each Party shall, in adopting, maintaining and applying any measure relating to country of origin marking, minimize the difficulties, costs and inconveniences that the measure may cause to the commerce and industry of the other Parties.

5. Each Party shall:

6. Except for a good described in subparagraphs 5(b)(vi), (vii), (viii), (ix), (x), (xii), (xiii) and (xiv), a Party may provide that, wherever a good is exempted under subparagraph 5(b), its outermost usual container shall be marked so as to indicate the country of origin of the good it contains.

7. Each Party shall provide that:

8. Each Party shall, wherever administratively practicable, permit an importer to mark a good of a Party subsequent to importation but prior to release of the good from customs control or custody, unless there have been repeated violations of the country of origin marking requirements of the Party by the same importer and that importer has been previously notified in writing that such good is required to be marked prior to importation.

9. Each Party shall provide that, except with respect to importers that have been notified under paragraph 8, no special duty or penalty shall be imposed for failure to comply with country of origin marking requirements of that Party, unless the good is removed from customs custody or control without being properly marked, or a deceptive marking has been used.

10. The Parties shall cooperate and consult on matters related to this Annex, including additional exemptions from a country of origin marking requirement, in accordance with Article 513 (Customs Procedures - Working Group and Customs Subgroup).

11. For purposes of this Annex:

conspicuous means capable of being easily seen with normal handling of the good or container;

customs value means the value of a good for purposes of levying duties of customs on an imported good;

legible means capable of being easily read;

sufficiently permanent means capable of remaining in place until the good reaches the ultimate purchaser, unless deliberately removed;

the form in which it was imported means the condition of the good before it has undergone one of the changes in tariff classification described in the Marking Rules;

ultimate purchaser means the last person in the territory of an importing Party that purchases the good in the form in which it was imported; such purchaser need not be the last person that will use the good; and

usual container means the container in which a good will ordinarily reach its ultimate purchaser.

Annex 312.2: Wine and Distilled Spirits

Section A - Canada and the United States

As between Canada and the United States, any measure related to the internal sale and distribution of wine and distilled spirits, other than a measure covered by Article 312(1) or 313, shall be governed under this Agreement exclusively in accordance with the relevant provisions of the Canada - United States Free Trade Agreement, which for this purpose are hereby incorporated into and made a part of this Agreement.

Section B - Canada and Mexico

As between Canada and Mexico:

1. Except as provided in paragraphs 3 through 6, in respect of any measure related to the internal sale and distribution of wine and distilled spirits, Article 301 shall not apply to:

2. The Party asserting that paragraph 1 applies to one of its measures shall have the burden of establishing the validity of such assertion.

3.

4.

5.

6. Unless otherwise specifically provided in this Annex, the Parties retain their rights and obligations under the GATT and agreements negotiated under the GATT.

7. For purposes of this Annex:

wine includes wine and wine-containing beverages.

Annex 313: Distinctive Products

1. Canada and Mexico shall recognize Bourbon Whiskey and Tennessee Whiskey, which is a straight Bourbon Whiskey authorized to be produced only in the State of Tennessee, as distinctive products of the United States. Accordingly, Canada and Mexico shall not permit the sale of any product as Bourbon Whiskey or Tennessee Whiskey, unless it has been manufactured in the United States in accordance with the laws and regulations of the United States governing the manufacture of Bourbon Whiskey and Tennessee Whiskey.

2. Mexico and the United States shall recognize Canadian Whisky as a distinctive product of Canada. Accordingly, Mexico and the United States shall not permit the sale of any product as Canadian Whisky, unless it has been manufactured in Canada in accordance with the laws and regulations of Canada governing the manufacture of Canadian Whisky for consumption in Canada.

3. Canada and the United States shall recognize Tequila and Mezcal as distinctive products of Mexico. Accordingly, Canada and the United States shall not permit the sale of any product as Tequila or Mezcal, unless it has been manufactured in Mexico in accordance with the laws and regulations of Mexico governing the manufacture of Tequila and Mezcal. This provision shall apply to Mezcal, either on the date of entry into force of this Agreement, or 90 days after the date when the official standard for this product is made obligatory by the Government of Mexico, whichever is later.

Annex 314: Export Taxes

Mexico

1. Mexico may adopt or maintain a duty, tax or other charge on the export of those basic foodstuffs set out in paragraph 4, on their ingredients or on the goods from which such foodstuffs are derived, if such duty, tax or other charge is adopted or maintained on the export of such goods to the territory of all other Parties, and is used:

2. Notwithstanding paragraph 1, Mexico may adopt or maintain a duty, tax or other charge on the export of any foodstuff to the territory of another Party if such duty, tax or other charge is temporarily applied to relieve critical shortages of that foodstuff. For purposes of this paragraph, "temporarily" means up to one year, or such longer period as the Parties may agree.

3. Mexico may maintain its existing tax on the export of goods provided for under tariff item 4001.30.02 of the Tariff Schedule of the General Export Duty Act ("Tarifa de la Ley del Impuesto General de Exportación") for up to 10 years after the date of entry into force of this Agreement.

4. For purposes of paragraph 1, "basic foodstuffs" means:

Annex 315: Other Export Measures

Article 315 shall not apply as between Mexico and the other Parties.

Date Modified: