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NAFTA - National Treatment and Market Access for Goods
PART TWO
TRADE IN GOODS
Chapter Three
National Treatment and Market Access for Goods
Subchapter 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 province or state, treatment no
less favorable than the most favorable treatment accorded by such
province or state 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 shall not apply to the measures set out
in Annex 301.3.
Subchapter 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 set out in Annex 302.2 or
as otherwise indicated in Annex 300-B.
3. At 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 any two or more Parties
to accelerate the elimination of a customs duty on a good shall
supersede any prior inconsistent duty rate or staging category in
their Schedules for such good when approved by each such Party in
accordance with Article 2202(2) (Amendments).
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 that is:
(a) subsequently exported to the territory of another
Party,
(b) used as a material in the production of another good
that is subsequently exported to the territory of
another Party, or
(c) 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,
in an amount that exceeds the lesser of the total amount of
customs duties paid or owed on the good on importation into its
territory, or the total amount of customs duties paid to another
Party on the good that has been subsequently exported to the
territory of that other Party.
2. No Party may, by reason of an exportation described in
paragraph 1, refund, waive or reduce:
(a) an antidumping or countervailing duty that is applied
pursuant to a Party's domestic law and that is not
applied inconsistently with Chapter Nineteen (Review
and Dispute Settlement in Antidumping and
Countervailing Duty Matters);
(b) a premium offered or collected on an imported good
arising out of any tendering system in respect of the
administration of quantitative import restrictions,
tariff rate quotas or tariff preference levels;
(c) a fee applied pursuant to section 22 of the U.S.
Agricultural Adjustment Act, subject to Chapter Seven
(Agriculture); or
(d) customs duties paid or owed on a good imported into its
territory and substituted by an identical or similar
good that is subsequently exported to the territory of
another Party.
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:
(a) shall assess the customs duties as if the exported good
had been withdrawn for domestic consumption; and
(b) may waive or reduce such customs duties to the extent
permitted under paragraph 1.
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:
(a) shall collect customs duties as if the exported good
had been withdrawn for domestic consumption; and
(b) may refund such customs duties to the extent permitted
under paragraph 1 upon the timely presentation of such
evidence under the laws and regulations of the Party.
6. This Article shall not apply to:
(a) a good entered under bond for transportation and
exportation to the territory of another Party;
(b) a good exported to the territory of another Party in
the same condition as when imported into the territory
of the Party from which the good was exported
(processes such as testing, cleaning, repacking or
inspecting the good, or preserving it in its same
condition, shall not be considered to change a good's
condition). Where originating and non-originating
fungible goods are commingled and exported in the same
form, the origin of the good may be determined on the
basis of the inventory methods provided for in the
Uniform Regulations;
(c) a good imported into the territory of the Party that is
deemed to be exported from the territory of a Party, or
used as a material in the production of another good
that is deemed to be 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 deemed to be exported to the
territory of another Party, by reason of
(i) delivery to a duty-free shop,
(ii) delivery for ship's stores or supplies for ships
or aircraft, or
(iii) delivery for use in joint undertakings of two
more of the Parties and that will
subsequently become the property of the Party
into whose territory the good was imported;
(d) a refund of customs duties by a Party on a particular
good imported into its territory and subsequently
exported to the territory of another Party, where that
refund is granted by reason of the failure of such good
to conform to sample or specification, or by reason of
the shipment of such good without the consent of the
consignee;
(e) a dutiable originating good that is imported into the
territory of a Party and is subsequently exported to
the territory of another Party, or 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; or
(f) a good set out in Annex 303.6.
7. 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 under tariff provision 8540.xx (cathode-ray color television
picture tubes, including video monitor tubes, with a diagonal
exceeding 14") 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.
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, upon 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, and thus not generally available to all
importers, 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 covered by Article
303 (Restriction on Drawback and Duty Deferral).
Article 305: Temporary Admission of Goods
1. Each Party shall grant duty-free temporary admission for:
(a) professional equipment necessary for carrying out the
business activity, trade or profession of a business
person who qualifies for temporary entry pursuant to
Chapter 16 (Temporary Entry for Business Persons),
(b) equipment for the press or for sound or television
broadcasting and cinematographic equipment,
(c) goods imported for sports purposes and goods intended
for display and demonstration, and
(d) commercial samples and advertising films,
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 subparagraph 1(a), (b), or (c), other than to require that
such good:
(a) be imported by a national or resident of another Party
who seeks temporary entry;
(b) be used solely by or under the personal supervision of
such person in the exercise of the business activity,
trade or profession of that person;
(c) not be sold or leased while in its territory;
(d) be accompanied by a bond in an amount no greater than
110 percent of the charges that would otherwise be owed
upon entry or final importation, or by another form of
security, releasable upon exportation of the good,
except that a bond for customs duties shall not be
required for an originating good;
(e) be capable of identification when exported;
(f) be exported upon the departure of that person or within
such other period of time as is reasonably related to
the purpose of the temporary admission; and
(g) be imported in no greater quantity than is reasonable
for its intended use.
3. Except as otherwise provided in this Agreement, no Party may
condition the duty-free temporary admission of a good referred to
in subparagraph 1(d), other than to require that such good:
(a) be imported solely for the solicitation of orders for
goods, or services provided from the territory, of
another Party or non-Party;
(b) not be sold, leased, or put to any use other than
exhibition or demonstration while in its territory;
(c) be capable of identification when exported;
(d) be exported within such period as is reasonably related
to the purpose of the temporary admission; and
(e) be imported in no greater quantity than is reasonable
for its intended use.
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 upon 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):
(a) each Party shall allow a locomotive, truck, truck
tractor, or tractor trailer unit, railway car, other
railroad equipment, trailer ("vehicle") or container,
used in international traffic, that enters its
territory from the territory of another Party to exit
its territory on any route that is reasonably related
to the economic and prompt departure of such vehicle or
container;
(b) no Party may require any bond or impose any penalty or
charge solely by reason of any difference between the
port of entry and the port of departure of a vehicle or
container;
(c) no Party may condition the release of any obligation,
including any bond, that it imposes in respect of the
entry of a vehicle or container into its territory on
its exit through any particular port of departure; and
(d) no Party may require that the vehicle or carrier
bringing a container from the territory of another
Party into its territory be the same vehicle or carrier
that takes such container to the territory of another
Party.
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:
(a) such samples be imported solely for the solicitation of
orders for goods of, or services provided from, the
territory of another Party or non-Party; or
(b) such advertising materials be imported in packets that
each contain no more than one copy of each such
material and that neither such materials nor packets
form part of a larger consignment.
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 on 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 (Duty Drawback), no Party shall
apply a customs duty to a good, regardless of its origin,
imported temporarily from the territory of another Party for
repair or alteration.
3. Each Party shall act in accordance with Annex 307.3
respecting the repair and rebuilding of vessels.
Article 308: Most-Favored-Nation Rates of Duty on Certain Goods
1. Each Party shall act in accordance with Annex 308.1
respecting certain automatic data processing goods and their
parts.
2. Each Party shall act in accordance with Annex 308.2
respecting certain color television tubes.
3. Each Party shall accord most-favored-nation duty-free
treatment to Local Area Network (LAN) apparatus imported into its
territory as set out in each Party's section of Annex 308.3.
Subchapter C - Non-Tariff Measures
Article 309: Import and Export Restrictions
1. Except as otherwise provided in this Agreement, no Party
shall 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 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:
(a) limiting or prohibiting the importation from the
territory of another Party of such good of that non-
Party; or
(b) requiring as a condition of export of such good of the
Party to the territory of another Party, that the good
not be re-exported to that non-Party, directly or
indirectly, without having been increased in value and
improved in condition [subject to review].
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, upon 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:
(a) not apply to the measures set out in Annex 301.3;
(b) apply to automotive goods as modified in Annex 300-A
(Trade and Investment in the Automotive Sector); and
(c) apply to trade in textile and apparel goods, as
modified in Annex 300-B (Textile and Apparel Goods).
6. For purposes of this Article, goods of another Party shall
mean [under review].
Article 310: Non-Discriminatory Administration of Restrictions
(GATT Article XIII)
[need for this Article is under review]
Article 311: Customs User Fees
1. No Party may adopt any customs user fee of the type referred
to in Annex 311 for originating goods.
2. Each Party may maintain existing such fees only in
accordance with Annex 311.2.
Article 312: Country of Origin Marking
Each Party shall comply with Annex 312 with respect to its
measures relating to country of origin marking.
Article 313: Blending Requirements
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.
Article 314: Distinctive Products
Each Party shall comply with Annex 314 respecting standards
and labelling of the distinctive products set out therein.
Article 315: Export Taxes
Except as set out in Annex 315 or Article 604 (Energy -
Export Taxes), 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:
(a) exports of any such good to the territory of all other
Parties; and
(b) any such good when destined for domestic consumption.
Article 316: Other Export Measures
1. Except as set out in Annex 316, a Party may adopt or
maintain a restriction otherwise justified under the provisions
of 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:
(a) the restriction does not reduce the proportion of the
total export shipments of the specific good made
available to that other Party relative to the total
supply of that good of the Party maintaining the
restriction as compared to the proportion prevailing in
the most recent 36-month period for which data are
available prior to the imposition of the measure, or in
such other representative period on which the Parties
may agree;
(b) the Party does not adopt any measure, such as a
license, fee, tax or minimum price requirement, that
has the effect of raising the price for exports of a
good to that other Party above the price charged for
such good when consumed domestically, except that a
measure taken pursuant to subparagraph (a) that only
restricts the volume of exports shall not be considered
to have such effect; and
(c) the restriction does not require the disruption of
normal channels of supply to that other Party or normal
proportions among specific goods or categories of goods
supplied to that other Party.
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.
Subchapter D - Consultations
Article 317: 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 at the request of any Party or the
Commission to consider any matter arising under this Chapter.
Article 318: 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 anti-dumping 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.
Subchapter E - Definitions
Article 319: Definitions
For purposes of this Chapter:
advertising films means recorded visual media, with or without
sound-tracks, 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;
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:
(a) charge equivalent to an internal tax imposed
consistently with Article III:2 of the GATT, or any
equivalent provision of a successor agreement to which
all Parties are party, in respect of like, directly
competitive or substitutable goods of the Party, or in
respect of goods from which the imported good has been
manufactured or produced in whole or in part;
(b) antidumping or countervailing duty that is applied
pursuant to a Party's domestic law and not applied
inconsistently with Chapter Nineteen (Review and
Dispute Settlement in Antidumping and Countervailing
Duty Matters);
(c) fee or other charge in connection with importation
commensurate with the cost of services rendered;
(d) premium offered or collected on an imported good
arising out of any tendering system in respect of the
administration of quantitative import restrictions or
tariff rate quotas or tariff preference levels; and
(e) fee applied pursuant to section 22 of the U.S.
Agricultural Adjustment Act, subject to Chapter Seven
(Agriculture);
distilled spirits include distilled spirits and distilled spirit-
containing 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 ten-
digit level set out in a Party's tariff schedule;
material means "material" as defined in Chapter Four (Rules of
Origin);
most-favored-nation rate of duty does not include any other
concessionary rate of duty;
performance requirement means a requirement that:
(a) a given level or percentage of goods or services be
exported;
(b) domestic goods or services of the Party granting a
waiver of customs duties be substituted for imported
goods or services;
(c) a person benefitting from a waiver of customs duties
purchase other goods or services in the territory of
the Party granting the waiver or accord a preference to
domestically produced goods or services; or
(d) a person benefitting from a waiver of customs duties
produce goods or provide services, in the territory of
the Party granting the waiver, with a given level or
percentage of domestic content; or
(e) relates in any way the volume or value of imports to
the volume or value of exports or to the amount of
foreign exchange inflows;
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:
(a) a receipt, or a copy of a receipt, evidencing payment
of customs duties on a particular entry;
(b) a copy of the entry document with evidence that it was
received by a customs administration;
(c) a copy of a final customs duty determination by a
customs administration respecting the relevant entry;
or
(d) any other evidence of payment of customs duties
acceptable under the Uniform Regulations developed in
accordance with Chapter Five (Customs Procedures);
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:
(a) domestic production;
(b) domestic inventory; and
(c) other imports as appropriate; and
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
[subject to review]
Section A - Canadian Measures
1. Articles 301 and 309 shall not apply to:
(a) controls by Canada on the export of logs of all
species;
(b) controls by Canada on the export of unprocessed fish
pursuant to the following existing statutes:
(i) New Brunswick Fish Processing Act, R.S.N.B. c. F-
18.01 (1982), as amended, and Fisheries
Development Act, S.N.B. c. F-15.1 (1977), as
amended;
(ii) Newfoundland Fish Inspection Act, R.S.N. 1970, c.
132, as amended;
(iii) Nova Scotia Fisheries Act, S.N.S. 1977, c. 9,
as amended;
(iv) Prince Edward Island Fish Inspection Act,
R.S.P.E.I. 1988, c. F-13, as amended; and
(v) Quebec Marine Products Processing Act, No. 38,
S.Q. 1987, c. 51, as amended;
(c) measures by Canada respecting the importation of
certain items on the Prohibited Goods List in Schedule
VII of the Customs Tariff, R.S.C. 1985, c. 41 (3rd
supp.), as amended, as of July 1, 1991;
(d) except as provided in Chapter Seven (Agriculture),
measures by Canada respecting the importation of grains
taken with respect to the United States, (Canadian
Wheat Board Act, R.S.C. 1985, c. C-24, as amended);
(e) measures by Canada respecting the exportation of liquor
for delivery into any country into which the
importation of liquor is prohibited by law under the
existing provisions of Export Act, R.S.C. 1985, c. E-
18, as amended;
(f) measures by Canada respecting the importation and
distribution of imported liquor by designated
government agencies under the existing provisions of
Importation of Intoxicating Liquors Act, R.S.C. 1985,
c. I-3, as amended, to the extent that it creates an
import monopoly consistent with Articles II:4 and XVII
of the GATT and Article 31 of the Havana Charter;
(g) except as provided in Chapter Seven (Agriculture),
measures by Canada respecting preferential freight
rates for grain originating in certain Canadian
provinces under the existing provisions of Western
Grain Transportation Act, R.S.C. 1985, c. W-8, as
amended;
(h) measures by Canada respecting preferential rates for
goods originating in certain Canadian provinces under
the existing provisions of Maritime Freight Rate Act,
R.S.C. 1985, c. M-1, as amended;
(i) Canadian excise taxes on absolute alcohol used in
manufacturing under the existing provisions of Excise
Tax Act, R.S.C. 1985, c. E-15, as amended;
(j) except as provided for in Chapter Seven (Agriculture),
import restrictions imposed under Section 5(1)(b) and
(d) of the Export and Import Permits Act, R.S.C. 1985,
c. E-19, as amended, as of January 1, 1994, that are in
accordance with the provisions of Article XI:2(c)(i) of
the GATT; and
(k) 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 U.S.C. App. 883) and
the Merchant Marine Act of 1936, (46 U.S.C. App. 1171,
1176, 1241 and 1241o) apply with quantitative effect to
comparable Canadian origin goods sold or offered for
sale into the United States market.
2. Notwithstanding any provision of this Agreement, any measure
related to the internal sale and distribution of wine and
distilled spirits, other than those covered by Article 313
(Blending Requirements) or Article 314 (Distinctive Products)
shall, as between Canada and the United States, 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 this
Agreement.
3. In respect of any measure related to the internal sale and
distribution of wine and distilled spirits, the provisions of
Articles 301 and 309 shall not apply as between Canada and Mexico
to:
(a) a non-conforming provision of any existing measure;
(b) the continuation or prompt renewal of a non-conforming
provision of any existing measure;
(c) an amendment to a non-conforming provision of any
existing measure to the extent the amendment does not
decrease its conformity with the provisions of Article
301 or 309; or
(d) measures set out in paragraphs 4 and 5.
4. Further to paragraph 3(d):
(a) automatic listing measures in the province of British
Columbia may be maintained provided they apply only to
existing estate wineries producing less than 30,000
gallons of wine annually and meeting the existing
content rule;
(b) Canada may
(i) adopt or maintain a measure limiting on-premise
sales by a winery or distillery to those wines or
distilled spirits produced on its premises, and
(ii) maintain a measure requiring existing private wine
store outlets in the provinces of Ontario and
British Columbia to discriminate in favor of wine
of those provinces to a degree no greater than the
discrimination required by such existing measure;
and
(c) nothing in this Agreement shall prohibit the Province
of Quebec from requiring that any wine sold in grocery
stores in Quebec be bottled in Quebec, provided that
alternative outlets are provided in Quebec for the sale
of wine of the other Parties, whether or not such wine
is bottled in Quebec.
5. As between Canada and Mexico:
(a) any measure related to listing of wine and distilled
spirits of the other Party shall
(i) conform with Article 301,
(ii) be transparent, non-discriminatory and provide for
prompt decision on any listing application, prompt
written notification of such decision to the
applicant, and in the case of a negative decision,
provide for a statement of the reason for refusal,
(iii) establish administrative appeal procedures
for listing decisions that provide for
prompt, fair and objective rulings,
(iv) be based on normal commercial considerations,
(v) not create disguised barriers to trade, and
(vi) be published and made generally available to
persons of Mexico;
(b) where the distributor is a public entity, the entity
may charge the actual cost-of-service differential
between wine and distilled spirits of the other Party
and domestic wine and distilled spirits. Any such
differential shall not exceed the actual amount by
which the audited cost-of-service for the wine or
distilled spirits of the exporting party exceeds the
audited cost-of-service for the wine and distilled
spirits of the importing party;
(c) notwithstanding Articles 301 and 309, Article I
(Definitions), Article IV.3 (Wine), and Annexes A, B
and C of the Agreement between Canada and the European
Economic Community Concerning Trade and Commerce in
Alcoholic Beverages dated February 28, 1989 shall apply
with such modifications as may be necessary as between
Canada and Mexico;
(d) all discriminatory mark-ups on distilled spirits shall
be eliminated immediately upon the date of entry into
force of this Agreement. Cost-of-service differential
mark-ups as described in subparagraph (b) shall be
permitted;
(e) any other discriminatory pricing measure shall be
eliminated upon the date of entry into force of this Agreement;
(f) any measure related to distribution of wine or
distilled spirits of the other Party shall conform with
Article 301; and
(g) unless otherwise specifically provided in this Annex,
the Parties retain their rights and obligations under
the GATT and agreements negotiated under the GATT.
(The intention of paragraphs 3, 4, and 5 is to
grant Mexico the same concessions granted to the
U.S. under the Canada - United States Free Trade
Agreement respecting wine and distilled spirits.)
=============================================================================
Section B - Mexican Measures
1. Articles 301 and 309 shall not apply to:
(a) controls by Mexico on the export of logs of all
species;
(b) measures under the existing provisions of Articles 192
through 194 of the General Ways of Communication Act
("Ley de Vias Generales de Comunicaci¢n") reserving
exclusively to Mexican vessels all services and
operations not authorized for foreign vessels and
empowering the Mexican Ministry of Communications and
Transportation to deny foreign vessels the right to
perform authorized services if their country of origin
does not grant reciprocal rights to Mexican vessels;
(c) measures taken in accordance with Annex 300-A (Trade in
Automotive Goods) and measures taken in accordance with
existing provisions of Articles 1, 4 and 5 of the
Mexican Foreign Trade Act ("Ley Reglamentaria del
Art¡culo 131 de la Constituci¢n Pol¡tica de los Estados
Unidos Mexicanos en Materia de Comercio Exterior") with
respect to automotive goods referred to in Annex 300-A
(Trade in Automotive Goods);
(d) measures taken in accordance with Sections 3 (Import
and Export Restrictions), 5 (Bilateral Emergency
Actions-Quantitative Restrictions), 6 (Rules of
Origin), and 8 (Trade in Worn Clothing) of Annex 300-B
(Textile and Apparel Goods) and measures taken in
accordance with existing provisions of Articles 1, 4
and 5 of the Mexican Foreign Trade Act ("Ley
Reglamentaria del Art¡culo 131 de la Constituci¢n
Pol¡tica de los Estados Unidos Mexicanos en Materia de
Comercio Exterior") with respect to textile and apparel
goods referred to in Annex 300-B;
(e) measures taken in accordance with Articles 703 (Market
Access) and Annex (permits for Dairy, Poultry and
Eggs) of Chapter Seven (Agriculture) and measures taken
in accordance with existing provisions of Articles 1, 4
and 5 of the Mexican Foreign Trade Act ("Ley
Reglamentaria del Art¡culo 131 de la Constituci¢n
Pol¡tica de los Estados Unidos Mexicanos en Materia de
Comercio Exterior") with respect to agricultural goods
referred to in Chapter Seven;
(f) measures covered by Chapter Six (Energy) and measures
taken in accordance with existing provisions of
Articles 1, 4 and 5 of the Mexican Foreign Trade Act
("Ley Reglamentaria del Art¡culo 131 de la Constituci¢n
Pol¡tica de los Estados Unidos Mexicanos en Materia de
Comercio Exterior") with respect to energy and basic
petrochemical goods referred to in Chapter 6;
(g) export permit measures taken in accordance with
existing provisions of Articles 1, 4 and 5 of the
Mexican Foreign Trade Act ("Ley Reglamentaria del
Art¡culo 131 de la Constituci¢n Pol¡tica de los Estados
Unidos Mexicanos en Materia de Comercio Exterior") with
respect to goods subject to quantitative restrictions,
tariff rate quotas or tariff preference levels adopted
or maintained by another Party; and
(h) with respect to existing provisions, the continuation
or prompt renewal of a non-conforming provision of any
of the above provisions or an amendment to a non-
conforming provision of any of the above provisions to
the extent that the amendment does not decrease its
conformity with the provisions of Articles 301 and 309.
2. Notwithstanding Article 309, and without prejudice to other
rights and obligations under this Agreement concerning import and
export restrictions, for the first 10 years after the date of
entry into force of this Agreement, Mexico may require permits
for the importation of used goods provided for in the following
existing items in the Tariff Schedule of the General Import Duty
Act ("Tarifa de la Ley del Impuesto General de Importaci¢n").
For purposes of reference, the goods covered by those items are
broadly identified next to the corresponding item.
Item Description
8407.3499 Gasoline engines of more than 1,000 cm3, except
for motorcycles.
8413.11.01 Pumps 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 lifting frames on tires and straddle carriers.
8426.19.01 Other (overhead travelling cranes,
transporter cranes, gantry cranes, bridge
cranes, mobile lifting frames and straddle
carriers.
8426.30.01 Portal or pedestal jib cranes.
8426.41.01 Derricks, cranes and other lifting machinery
on tires, self-propelled with mechanical
working and carrying capacity less than 55
tons.
8426.41.02 Derricks, cranes and other lifting machinery
on tires, self-propelled with hydraulic
working and carrying capacity more than 9.9
up to 30 tons.
8426.41.99 Other (Machinery, self propelled, on tires.)
8426.49.01 Derricks, cranes and other lifting machinery
(other than on tires), self-propelled with
mechanical working and carrying capacity less
than 55 tons.
8426.49.02 Derricks, cranes sand other lifting machinery
(other than on tires), self-propelled with
hydraulic working and carrying capacity more
than 9.9 up to 30 tons.
8426.91.01 Derricks, cranes and other lifting machinery
except items 8426.91.02, 03 and 04.
8426.91.02 Derricks, cranes and other lifting machinery
for mounting on road vehicles, with
hydraulical working and carrying capacity up
to 9.9 tons.
8426.91.03 Derricks, cranes and other lifting machinery
(basket type) for mounting on road vehicles,
with carrying capacity up to 1 ton and 15
meters lift.
8426.91.99 Other (machinery designed for mounting on
road vehicles).
8426.99.01 Derricks, cranes and other lifting machinery
except items 8426.91.02
8426.99.02 Swivel cranes.
8426.99.99 Other (derricks; cranes, including cable
cranes; mobile lifting frames, straddle
carriers and works trucks fitted with a
crane).
8427.10.01 Self-propelled work trucks powered by an
electric motor, carrying capacity 3.5 tons.
8427.20.01 Other self-propelled trucks with combustion
piston engines, carrying capacity up to 7
tons.
8428.40.99 Other (escalators and moving walkways).
8428.90.99 Other (continuous-action elevators and
conveyors, for goods or materials).
8429.11.01 Self-propelled bulldozers and angledozers,
for track laying.
8429.19.01 Other (bulldozers and angledozers).
8429.20.01 Self-propelled graders and levelers.
8429.30.01 Self-propelled scrapers.
8429.40.01 Self-propelled tamping machines and road
rollers.
8429.51.02 Self-propelled front-end shovel loaders,
wheel-type, less than 335 HP.
8429.51.03 Self-propelled front-end shovel loaders,
wheel-type, other than item 8429.51.01.
8429.51.99 Other (mechanical shovels, excavators and
shovel loaders).
8429.52.02 Self-propelled backhoes, shovels, clamshells
and draglines, other than 8429.52.01.
8429.52.99 Other (machinery with a 360 revolving
superstructure).
8429.59.01 Excavators.
8429.59.02 Track laying draglines, carrying capacity up
to 4 tons.
8429.59.03 Track laying draglines, other than item
8429.59.04.
8429.59.99 Other (self-propelled bulldozers,
angledozers, graders, levellers, scrapers,
mechanical shovels, excavators, shovel
loaders, tamping machines and road rollers).
8430.31.01 Self-propelled tunneling machinery.
8430.31.99 Other (self-propelled coal or rock cutters
and tunnelling machinery).
8430.39.01 Sinking or boring shields.
8430.39.99 Other (coal or rock cutters and tunnelling
machinery).
8430.41.01 Self-propelled boring or sinking machinery,
other than item 8430.41.02.
8430.41.99 Other (self-propelled boring or sinking
machinery).
8430.49.99 Other (boring or sinking machinery).
8430.50.01 Self-propelled peat excavators, with frontal
carriers and hydraulic mechanism less than
335 hp capacity.
8430.50.02 Scrapers.
8430.50.99 Other (machinery self-propelled).
8430.61.01 Tamping machinery, not self-propelled.
8430.61.02 Compacting machinery, not self-propelled.
8430.61.99 Other (machinery, not self-propelled).
8430.62.01 Scarificationer machine.
8430.69.01 Threshers or scrapers machine.
8430.69.02 Trencher machine, other than 8430.69.03.
8430.69.99 Other (moving, grading, levelling, scraping,
excavating, tamping, compacting, extracting
or boring machinery).
8452.10.01 Sewing machines of the household type.
8452.21.04 Industrial machines, other than 845221.02, 03
and 05.
8452.21.99 Other (automatic sewing machines).
8452.29.05 Pending
8452.29.06 Industrial machines, other than 84522901, 03
and 05.
8452.29.99 Other (sewing machines).
8452.90.99 Other (parts of sewing machines).
8471.10.01 Analog or hybrid automatic data processing
machines.
8471.20.01 Digital automatic data processing machines,
containing in the same housing at least a
central processing unit and an input and
output unit, whether or not combined.
8471.91.01 Numerical or digital units entered with the
rest of a system, which may contain in the
housing one or two of the following types of
units: 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).
8474.20.02 Crushing jawbone and grinding millstone.
8474.20.05 Drawer cone crushing, with diameter no more
than 1200 millimeters.
8474.20.06 Grinding hammer percussion.
8701.30.01 Track-laying tractors with a net engine power
more than 105 h.p. but less than 380 h.p.
including pushing blade.
8701.90.02 Rail road tractors, on tires with mechanical
mechanism for pavement.
8474.20.01 Crushing and grinding with two or more
cylinders.
8474.20.03 Blades crushing machines.
8474.20.04 Blades XXX
8474.20.99 Other (crushing or grinding machines).
8474.39.99 Other (mixing machines).
8474.80.99 Other (kneading machines).
8475.10.01 Machines for assembling electric or
electronic lamps, tubes.
8477.10.01 Injection-molding machines for working rubber
or plastics, up to 5 kg capacity for one
molding model.
8711.10.01 Motorcycles, mopeds and cycles fitted with an
auxiliary motor with reciprocating internal
combustion piston engine not exceeding 50
cm.3.
8711.20.01 Motorcycles, mopeds and cycles fitted with an
auxiliary motor with reciprocating internal
combustion piston engine over 50 cm.3 but not
over 250 cm.3.
8711.30.01 Motorcycles, mopeds and cycles fitted with an
auxiliary motor with reciprocating internal
combustion piston engine over 250 cm.3 but
not over 500 cm.3.
8711.40.01 Motorcycles, mopeds and cycles fitted with an
auxiliary motor with reciprocating internal
combustion piston engine over 500 cm.3 but
less than 550 cm.3.
8711.90.99 Other (motorcycles, mopeds and cycles fitted
with an auxiliary motor without an internal
combustion piston engine, and sidecars which
are not to be used with motocycles and
velocipedes of any kind).
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 semi-trailers for housing and
camping, not mechanically propelled.
8716.31.02 Tanker trailers and tanker semi-trailers for
the transport of goods, not mechanically
propelled, of the steel-tank type.
8716.31.99 Other (Tanker trailers and tanker
semi-trailers for the transport of goods, not
mechanically propelled, except of the
steel-tank type, and of the thermal type for
the transportation of milk).
8716.39.01 Trailers and semi-trailers for the transport
of goods, not mechanically propelled, of the
platform type (more detailed description
pending).
8716.39.02 Trailers and semi-trailers for the transport
of vehicles, not mechanically propelled.
8716.39.04 Trailers and semi-trailers for the transport
of goods, not mechanically propelled, of the
modular-platform type (more detailed
description pending).
8716.39.05 Semi-trailers for the transport of goods, not
mechanically propelled, of the low-bed type
(more detailed description pending).
8716.39.06 Trailers and semi-trailers for the transport
of goods, not mechanically propelled, of the
closed-box type, including those for
refrigeration.
8716.39.07 Trailers and semi-trailers for the transport
of goods, not mechanically propelled, of the
steel-tank type.
8716.39.99 Other. (Trailers and semi-trailers for the
transport of goods, not mechanically
propelled, except those referred to in items
87163901, 02, 04, 05, 06 and 07, those with
two levels which are recognizable as intended
for use exclusively in the transportation of
cattle, and carriages with solid rubber
wheels).
8716.40.01 Other trailers and semi-trailers, not
mechanically propelled. (Other than for the
transport of goods).
8716.80.99 Other. (Vehicles not mechanically propelled,
except trailers and semi-trailers,
hand-wagons, and hand-wagons of hydraulic
operation.
3. Notwithstanding Article 309, and without prejudice to other
rights and obligations under this Agreement concerning import and
export restrictions:
(a) for the first five years after the date of entry into
force of this Agreement, Mexico may require permits for
the importation of new automotive goods provided for in
the following existing items in the Tariff Schedule of
the General Import Duty Act ("Tarifa de la Ley del
Impuesto General de Importaci¢n"). For purposes of
reference, the goods covered by those items are broadly
identified next to the corresponding item;
Item Description
8701.20.01 Road Tractors for semi-trailers
8702.10.01 Public-transport type passenger vehicles, with
diesel or semi-diesel engine, with body mounted on
a chassis.
8702.10.02 Public-transport type passenger vehicles, with
diesel or semi-diesel engine, with an integral
body.
8702.90.03 Public-transport type passenger vehicles, with
gasoline engine, with an integral body.
8703.10.99 Other special vehicles.
8704.22.99 Motor vehicles for the transport of goods with
diesel engine and capacity of cargo of more than 5
tons but less than 20 tons.
8704.23.99 Motor vehicles for the transport of goods with
diesel engine and capacity of cargo of more than
20 tons.
8704.32.99 Motor vehicles for the transport of goods with
gasoline engine and with capacity of cargo of more
than 5 tons.
8705.20.01 Mobile drilling derricks.
8705.40.01 Concrete mixers.
8706.00.01 Chassis fitted with gasoline engine.
8706.00.99 Other chassis fitted with gasoline engine.
(b) for the first 10 years after the date of entry into
force of this Agreement, Mexico may require permits for
the importation of new automotive goods provided for in
the following existing items in the Tariff Schedule of
the General Import Duty Act ("Tarifa de la Ley del
Impuesto General de Importaci¢n"). For purposes of
reference, the goods covered by those items are broadly
identified next to the corresponding item;
Item Description
8407.34.99 Gasoline engines of more than 1,000 cm3, except
for motorcycles.
8702.90.02 Public-transport type passenger vehicles, with
gasoline engine, with body mounted on a chassis.
8703.21.01 Passenger motor vehicles with gasoline engine of
less than or equal to 1,000 cm3.
8703.22.01 Passenger motor vehicles with gasoline engine of
more than 1,000 cm3 but less than 1,500 cm3.
8703.23.01 Passenger motor vehicles with gasoline engine of
more than 1,500 cm3 but less than or equal to
3,000 cm3.
8703.24.01 Passenger motor vehicles with gasoline engine of
more than 3,000 cm3.
8703.31.01 Passenger motor vehicles with diesel engine of
less than or equal to 1,500 cm3.
8703.32.01 Passenger motor vehicles with diesel engine of
more than 1,500 cm3 but less than or equal to
2,500 cm3.
8703.33.01 Passenger motor vehicles with diesel engine of
more than 2,500 cm3.
8703.90.99 Other passenger vehicles.
8704.21.99 Motor vehicles for the transport of goods with
diesel engine and with capacity of cargo of less
than or equal to 5 tons.
8704.31.99 Motor vehicles for the transport of goods with
gasoline engine and with capacity of cargo of less
than or equal to 5 tons.
(c) for the first 25 years after the date of entry into
force of this Agreement, Mexico may require permits for
the importation of used automotive goods provided for
in the following existing items in the Tariff Schedule
of the General Import Duty Act ("Tarifa de la Ley del
Impuesto General de Importaci¢n"). As of the 26th year
after the date of entry into force of this Agreement,
Mexico may require permits for the importation of
non-originating automotive goods provided for under
such items. For purposes of reference, the goods
covered by those items are broadly identified next to
the corresponding item.
Item Description
8701.20.01 Road Tractors for semi-trailers
8702.10.01 Public-transport type passenger vehicles, with
diesel or semi-diesel engine, with body mounted on
a chassis.
8702.10.02 Public-transport type passenger vehicles, with
diesel or semi-diesel engine, with an integral
body.
8702.90.01 Trolleys.
8702.90.02 Public-transport type passenger vehicles, with
gasoline engine, with body mounted on a chassis.
8702.90.03 Public-transport type passenger vehicles, with
gasoline engine, with an integral body.
8703.10.01 Special vehicles with electric engine
(snowmobiles, golf cart).
8703.10.99 Other special vehicles.
8703.21.01 Passenger motor vehicles with gasoline engine of
less than or equal to 1,000 cm3.
8703.22.01 Passenger motor vehicles with gasoline engine of
more than 1,000 cm3 but less than 1,500 cm3.
8703.23.01 Passenger motor vehicles with gasoline engine of
more than 1,500 cm3 but less than or equal to
3,000 cm3.
8703.24.01 Passenger motor vehicles with gasoline engine of
more than 3,000 cm3.
8703.31.01 Passenger motor vehicles with diesel engine of
less than or equal to 1,500 cm3.
8703.32.01 Passenger motor vehicles with diesel engine of
more than 1,500 cm3 but less than or equal to
2,500 cm3.
8703.33.01 Passenger motor vehicles with diesel engine of
more than 2,500 cm3.
8703.90.01 Electrical motor cars.
8703.90.99 Other passenger vehicles.
8704.21.99 Motor vehicles for the transport of goods with
diesel engine and with capacity of cargo of less
than or equal to 5 tons.
8704.22.99 Motor vehicles for the transport of goods with
diesel engine and capacity of cargo of more than 5
tons but less than 20 tons.
8704.23.99 Motor vehicles for the transport of goods with
diesel engine and capacity of cargo of more than
20 tons.
8704.31.99 Motor vehicles for the transport of goods with
gasoline engine and with capacity of cargo of less
than or equal to 5 tons.
8704.32.99 Motor vehicles for the transport of goods with
gasoline engine and with capacity of cargo of more
than 5 tons.
8705.10.01 Mobile crane vehicles.
8705.20.01 Mobile drilling derricks.
8705.20.99 Other drilling derricks.
8705.40.01 Concrete mixers.
8705.90.01 Spraying vehicles.
8705.90.99 Other special purpose vehicles.
8706.00.01 Chassis fitted with gasoline engine.
8706.00.99 Other chassis fitted with gasoline engine.
=============================================================================
Section C - United States Measures
Articles 301 and 309 shall not apply to:
(a) controls by the United States on the export of logs of
all species;
(b) taxes on imported perfume containing distilled spirits
under existing provisions of Section 5001(a)(3) and
5007(b)(2) of the Internal Revenue Code of 1986 (26
U.S.C. 5001(a)(3), 5007(b)(2));
(c) measures under existing provisions of section 27 of the
Merchant Marine Act (46 U.S.C. App. 883), the Passenger
Vessel Act of 1920 (46 U.S.C. App. 289), the Merchant
Ship Sales Act of 1946 (46 U.S.C. App. 292, 316, and 46
U.S.C. 12108); and
(d) import restrictions with respect to Canada imposed
under existing provisions of section 22 of the
Agricultural Adjustment Act of 1933 (7 U.S.C. 624).
=============================================================================
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):
(a) 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;
(b) duties on goods provided for in the items in staging
category B in a Party's Schedule shall be removed in 5
equal annual stages commencing on January 1, 1994, and
such goods shall be duty-free, effective January 1,
1998;
(c) 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 commencing on January 1, 1994, and
such goods shall be duty-free, effective January 1,
2003;
(d) 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 commencing on January 1, 1994,
and such goods shall be duty-free, effective January 1,
2008; and
(e) goods provided for in the items in staging category D
in a Party's Schedule shall continue to receive duty-
free treatment.
(other staging categories will be displayed in the
tariff schedules of each Party and may be incorporated
here.)
2. The base rate of duty and staging category for determining
the interim rate of duty at each stage of reduction for an item
are indicated for the item in each Party's Schedule attached to
this Annex. These rates generally reflect the rate of duty in
effect on July 1, 1991, including rates under 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 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 part of this Agreement, to an
originating good provided that:
(a) notwithstanding any provision in Chapter Four of this
Agreement, 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
(b) 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 the rate applicable under the staging
category set out for an item contained in column I of section A
of this Annex to an originating good provided that:
(a) notwithstanding any provision to the contrary 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
(b) any processing that occurs in the United States 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.
6. Canada shall apply to an originating good to which neither
paragraph 4 nor paragraph 5 applies, the applicable rate
indicated for an item contained in column II, reduced in
accordance with the staging category of column I of section A of
this Annex except as otherwise indicated, or where there is a
letter "X" (to be replaced with descriptive language) in column
II, the applicable rate of duty for the item shall be the higher
of:
(a) the General Preferential Tariff rate of duty for that
item applied on July 1, 1991, reduced in accordance
with the applicable staging category set out for that
item in column I of its Schedule; or
(b) the applicable rate under the staging category for that
item set out in Annex 401.2, as amended, of the Canada -
United States Free Trade Agreement.
7. Paragraphs 4, 5 and 6 shall not apply to goods provided for
under Chapters 50 through 63 of the Harmonized System and to
other goods identified in Appendix 1.1 of Annex 300-B (Textiles
and Apparel Goods).
8. Mexico shall apply the rate applicable under the staging
category set out for an item in column II of section B of this
Annex to an originating good when the good qualifies to be marked
as a good of Canada, pursuant to Annex 312, without regard to
whether the good is marked.
9. Mexico shall apply the rate applicable under the staging
category set out for an item in column I of section B of this
Annex to an originating good when the good qualifies to be marked
as a good of the United States, pursuant to Annex 312, without
regard to whether the good is marked.
10. The United States 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 Canada pursuant to Annex 312, without regard to whether the
good is marked.
11. The United States shall apply the rate applicable under the
staging category set out for an item in section C of this Annex
to an originating good when the good qualifies to be marked as a
good of Mexico pursuant to Annex 312, whether or not the good is
marked.
=============================================================================
SECTION A - SCHEDULE OF CANADA
(TARIFF SCHEDULE TO BE ATTACHED)
SECTION B - SCHEDULE OF MEXICO
(TARIFF SCHEDULE TO BE ATTACHED)
SECTION C - SCHEDULE OF THE UNITED STATES
(TARIFF SCHEDULE TO BE ATTACHED)
=============================================================================
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).
2. For trade between Canada and the United States:
(a) imported citrus products;
(b) an imported good 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 U.S. tariff items 5811.00.20 (quilted cotton piece
goods), 5811.00.30 (quilted man-made piece goods) or
6307.90.99 (furniture moving pads) that are subject to
the most-favored-nation rate of duty when exported to
the territory of the other Party; (Canadian tariff
items to be added) and
(c) an imported good used as a material in the production
of, or substituted by an identical or similar good used
as a material in the production of, apparel that is
subject to the most-favored-nation rate of duty when
exported to the territory of the other Party.
=============================================================================
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:
(a) subsequently exported to the territory of the United
States on or after January 1, 1996, or subsequently
exported to the territory of Mexico on or after January
1, 2001;
(b) used as a material in the production of another good
that is subsequently exported to the territory of the
United States on or after January 1, 1996, or used as a
material in the production of another good that is
subsequently exported to the territory of Mexico on or
after January 1, 2001;
(c) 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 the United
States on or after January 1, 1996, or 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 Mexico on or after January
1, 2001; or
(d) substituted by an identical or similar good that is
subsequently exported to the territory of the United
States on or after January 1, 1996, or substituted by
an identical or similar good that is subsequently
exported to the territory of Mexico on or after January
1, 2001.
Section B - Mexico
For Mexico, Article 303 shall apply to a good imported into the
territory of Mexico that is:
(a) subsequently exported to the territory of another Party
on or after January 1, 2001;
(b) used as a material in the production of another good
that is subsequently exported to the territory of
another Party on or after January 1, 2001;
(c) 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
on or after January 1, 2001; or
(d) substituted by an identical or similar good that is
subsequently exported to the territory of another Party
on or after January 1, 2001.
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:
(a) subsequently exported to the territory of Canada on or
after January 1, 1996, or subsequently exported to the
territory of Mexico on or after January 1, 2001;
(b) used as a material in the production of another good
that is subsequently exported to the territory of
Canada on or after January 1, 1996, or used as a
material in the production of another good that is
subsequently exported to the territory of Mexico on or
after January 1, 2001;
(c) substituted by an identical or similar good used as a
material in the production of another good subsequently
exported to the territory of Canada on or after January
1, 1996, or substituted by an identical or similar good
used as a material in the production of another good
subsequently exported to the territory of Mexico on or
after January 1, 2001; or
(d) substituted by an identical or similar good that is
subsequently exported to the territory of Canada on or
after January 1, 1996, or substituted by an identical
or similar good that is subsequently exported to the
territory of Mexico on or after January 1, 2001.
=============================================================================
ANNEX 303.8
Exception to Article 303(8)
For Certain Cathode-Ray Picture Tubes
Mexico
Mexico may refund customs duties paid, or waive or reduce the
amount of customs duties owed, on goods provided for in
subheading 8540.xx 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 goods that would not have been
considered to be originating goods had this Agreement been in
force during that period, where the goods are:
(a) subsequently exported from the territory of Mexico to
the territory of the United States, or are used as
materials in the production of other goods that are
subsequently exported from the territory of Mexico to
the territory of the United States, or are substituted
by identical or similar goods used as materials in the
production of other goods that are subsequently
exported to the territory of the United States, in an
amount, for all such persons combined, no greater than
(i) 1,200,000 units in 1994,
(ii) 1,000,000 units in 1995,
(iii) 800,000 units in 1996,
(iv) 600,000 units in 1997,
(v) 400,000 units in 1998,
(vi) 200,000 units in 1999, and
(vii) zero units in 2000 and thereafter,
provided that the number of goods on which such customs duties
may be refunded, waived or reduced in any year shall be reduced,
with respect to that year, by the number of such goods qualifying
as originating goods during the year immediately preceding that
year, considering operations performed in, or materials obtained
from, the territories of Canada and the United States as if they
were performed in, or obtained from, a non-Party; or
(b) subsequently exported from the territory of Mexico to
the territory of Canada, or used as materials in the
production of other goods that are subsequently
exported from the territory of Mexico to the territory
of Canada, or are substituted by identical or similar
goods used as materials in the production of other
goods that are subsequently exported to the territory
of Canada, in an amount no greater than
(i) 75,000 units in 1994,
(ii) 50,000 units in 1995, and
(iii) zero units in 1996 and thereafter.
=============================================================================
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:
(a) Mexico shall not increase the ratio of customs duties
waived to customs duties owed relative to the
performance required under any such waiver; or
(b) Mexico shall not add any type of good to those
qualifying on July 1, 1991, in respect of any waiver of
customs duties in effect on that date.
=============================================================================
ANNEX 304.2
Continuation of Existing Waiver Measures
For purposes of Article 304(2):
(a) Canada may condition on the fulfillment of a
performance requirement the waiver of customs duties
under any measure in effect on or before September 28,
1988, on any goods entered or withdrawn from warehouse
for consumption before January 1, 1998;
(b) Mexico may condition on the fulfillment of a
performance requirement the waiver of customs duties
under any measure in effect on July 1, 1991, on any
goods entered or withdrawn from warehouse for
consumption before January 1, 2001;
(c) as between the United States and Canada, Article 405 of
the Canada - United States Free Trade Agreement is
incorporated and made part of this Annex solely with
respect to measures adopted by Canada or the United
States prior to the date of entry into force of this
Agreement; and
(d) Canada may grant duty waivers as set out in Annex 300-
A.
=============================================================================
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:
(a) for goods set out in section D that re-enter its
territory from the territory of Mexico, Canada shall
apply to the value of the repair or alteration of such
goods the rate of duty for such goods applicable under
its Schedule attached to Annex 302.2;
(b) for goods other than those set out in section D that
re-enter its territory from the territory of the United
States or Mexico, other than goods repaired or altered
pursuant to a warranty, Canada shall apply to the value
of the repair or alteration of such goods the rate of
duty for such goods applicable under the Tariff
Schedule of Canada attached to Annex 401.2 of the
Canada - United States Free Trade Agreement.
(c) for goods set out in section D that re-enter its
territory from the territory of the United States,
Canada shall apply to the value of the repair or
alteration of such goods the rate of duty for such
goods applicable under its Schedule attached to Annex
401.2 of the Canada - United States Free Trade
Agreement.
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 duty
for such goods that would apply if such goods were included in
staging category B in the Schedule of Mexico attached to Annex
302.2.
Section C - United States
1. The United States may impose customs duties on:
(a) goods set out in section D, or
(b) goods that are not set out in section D and that are
not repaired or altered pursuant to a warranty,
regardless of their origin, that re-enter 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 duty
applicable under the Canada-U.S. Free Trade Agreement.
2. The United States 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 Mexico for repair or alteration, by applying
to the value of the repair or alteration of such goods a rate of
duty of 50 percent reduced in five equal annual stages
commencing 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 [description under review]
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:
1. Cruise ships, excursion boats, ferry-boats, cargo ships,
barges and similar vessels for the transport of persons or goods,
including:
(a) tankers;
(b) refrigerated vessels, other than tankers; and
(c) other vessels for the transport of goods and other
vessels for the transport of both persons and goods,
including open vessels.
2. Fishing vessels, including factory ships and other vessels
for processing or preserving fishery products of a registered
length not exceeding 30.5m.
3. Light-vessels, fire-floats, dredgers, floating cranes, and
other vessels the navigability of which is subsidiary to their
main function, floating docks, floating or submersible drilling
or production platforms, including drilling ships, drilling
barges and floating drilling rigs.
=============================================================================
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:
(a) remain eligible to engage in coastwise trade or to
access U.S. fisheries,
(b) transport U.S. government cargo, or
(c) participate in U.S. assistance programs, including the
"operating difference subsidy",
the United States shall, no later than the date of entry into
force of this Agreement:
(d) provide written clarification to the other Parties of
current U.S. Customs and Coast Guard practices that
constitute, and differentiate between, the repair and
the rebuilding of vessels, including, where possible,
clarifications on "jumboizing", vessel conversions, and
emergency repairs, and
(e) commence a process to define the terms "repairs",
"emergency repairs", and "rebuilding" under U.S.
maritime legislation, including the Merchant Marine Act
of 1920 (codified at 46 U.S.C. App. 883) and the
Merchant Marine Act of 1936 (codified at 46 U.S.C. App.
1171, 1176, 1241 and 1241(o)).
=============================================================================
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 the goods provided for under the tariff provisions
set out in Tables 308.1.1 and 308.1.2 in section B of this Annex
to the rate set out therein, or to such reduced rate as the
Parties may agree, in accordance with the Schedule set out in
section B of this Annex, or with such accelerated schedule as the
Parties may agree.
2. Notwithstanding Chapter 3, 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 of this Annex
has been reduced in accordance with 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 of this Annex, 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 rate set out
therein or to such reduced rate as the Parties may agree.
=============================================================================
Section B - Rates of Duty and Schedule for Reduction
Table 308.1.1
Tariff Rate Schedule
Automatic Data Processing
Machines (ADP):
8471.10 3.9% S
8471.20 3.9% S
Digital Processing Units:
8471.91 3.9% S
Input or Output Units:
Combined Input/Output Units:
Canada:
8471.92.90.11 3.7% S
8471.92.90.12 3.7% S
8471.92.90.19 3.7% S
Mexico:
8471.92.h1 3.7% S
United States:
8471.92.10 3.7% S
Display Units:
Canada:
8471.92.90.32 3.7% S
8471.92.90.39.a1 3.7% S
8471.92.90.39.a2 Free S
Mexico:
8471.92.h2 3.7% S
8471.92.h3 Free S
United States:
8471.92.30 Free S
8471.92.40.75 3.7% S
=============================================================================
Other Input or Output Units:
Canada:
8471.92.10.20 Free S
8471.92.10.90 Free S
8471.92.90.20 Free S
8471.92.90.40 Free S
8471.92.90.50 3.7% S
8471.92.90.91 Free S
8471.92.90.99 Free S
Mexico:
8471.92.h4 3.7% S
8471.92.h5 Free S
United States:
8471.92.20 Free S
8471.92.80 Free S
8471.92.90.20 Free S
8471.92.90.40 3.7% S
8471.92.90.60 Free S
8471.92.90.80 Free S
=============================================================================
Storage Units
8471.93 Free S
Other Units of Automatic Data Processing
Machines
8471.99 Free S
Parts of Computers
8473.30 Free R
Computer Power Supplies
8504.40.a3 Free S
8504.90.a4 Free S
Table 308.1.2
Metal Oxide Varistors:
8533.40.a4 Free R
Diodes, Transistors and Similar
Semiconductor Devices; Photosensitive
Semiconductor Devices; Light Emitting
Diodes; Mounted Piezo-electric Crystals
8541.10 Free R
8541.21 Free R
8541.29 Free R
8541.30 Free R
8541.50 Free R
8541.60 Free R
8541.90 Free R
Canada:
8541.20 Free R
Mexico:
8541.20 Free R
United States:
8541.40.20 Free S
8541.40.60 Free R
8541.40.70 Free R
8541.40.80 Free R
8541.40.95 Free R
Electronic Integrated Circuits
and Microassemblies
8542 Free R
=============================================================================
ANNEX 308.2
Most-Favored-Nation Rates of Duty
on Certain Color Television Picture Tubes
1. Any Party considering the reduction of its most-favored-
nation rate of customs duty for goods provided for in tariff
provision 8540.11.a2 (cathode-ray color television picture tubes,
including video monitor cathode-ray tubes, 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, 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 provision set out in its Schedule
attached 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
Section A - Canada
Canada shall accord most-favored-nation duty-free treatment
to goods provided for in item(s) [to be provided] of its tariff
schedule.
Section B - Mexico
Mexico shall accord most-favored-nation duty-free treatment
to goods provided for in item(s) [to be provided] of its tariff
schedule.
Section C - United States
The United States shall accord most-favored-nation duty-free
treatment to goods provided for in item(s) [to be provided] of
its tariff schedule.
For purposes of this Annex:
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.
=============================================================================
ANNEX 311.2
Existing Customs User Fees
Section A - Mexico
Mexico shall not increase its customs processing fee
("derechos de tr mite aduanero") on originating goods, and shall
by June 30, 1999, eliminate such fee on originating goods.
Mexico 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 312,
without regard to whether the goods are marked.
2. The United States shall not increase its merchandise
processing fee and shall by June 30, 1999, eliminate such fee, on
originating goods where those goods qualify to be marked as goods
of Mexico pursuant to Annex 312, without regard to whether the
goods are marked.
=============================================================================
ANNEX 312
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 the purposes of this Annex, Annex 300-B and Annex 302.2, and
for such other purposes as may be agreed.
2. Each Party may require that a good of another Party, as
determined in accordance with the Marking Rules, imported into
its territory bear a country of origin marking 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 administering
any measure relating to country of origin marking, minimize the
difficulties, costs and inconveniences that such measure may
cause to the commerce and industry of the other Parties.
5. Each Party shall:
(a) accept any reasonable method of marking, including the
use of stickers, labels, tags or paint, that ensures
that the marking is conspicuous, legible and
sufficiently permanent;
(b) exempt from a country of origin marking requirement a
good of another Party which
(i) is incapable of being marked,
(ii) cannot be marked prior to exportation to the
territory of another Party without causing injury
to the goods,
(iii) cannot be marked except at an expense which
would materially discourage its exportation
to the territory of another Party,
(iv) cannot be marked without materially impairing its
function or substantially detracting from its
appearance,
(v) is in a container that is marked in a manner that
will reasonably indicate the good's origin to the
ultimate purchaser,
(vi) is a crude substance,
(vii) is imported for use by the importer and is
not intended for sale in the form in which it
was imported,
(viii) is to be processed in the importing Party by
the importer, or on its behalf, in a manner
that results in a change of origin for
marking purposes, under the Marking Rules,
(ix) by reason of its character, or the circumstances
of its importation, the ultimate purchaser would
reasonably know its country of origin even though
it is not marked,
(x) was produced more than 20 years prior to its
importation,
(xi) was imported without the required marking and
cannot be marked after its importation except at
an expense that would materially discourage its
importation, provided that the failure to mark the
good before importation was not for the purpose of
avoiding compliance with such requirement,
(xii) for the purposes of temporary duty-free
admission, is in transit or in bond or
otherwise under customs administration
control,
(xiii) is an original work of art, or
(xiv) is provided for in headings 8541 or 8542, and
6904.10.
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 container that ordinarily reaches the ultimate
purchaser shall be marked so as to indicate the country of origin
of the good it contains.
7. Each Party shall provide that:
(a) a usual container imported empty, whether or not
disposable, shall not be required to be marked with its
own country of origin, but the container in which it is
imported may be required to be marked with the country
of origin of its contents; and
(b) a usual container imported filled, whether or not
disposable,
(i) shall not be required to be marked with its own
country of origin, but
(ii) may be required to be marked with the country of
origin of its contents, unless the contents are
marked with their country of origin and the
container can be readily opened for inspection of
the contents, or the marking of the contents is
clearly visible through the container.
8. Each Party shall, whenever administratively practicable,
permit an importer to mark a good 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 that 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, unless a 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 Chapter Five
(Customs Procedures).
11. For purposes of this Annex:
conspicuous means capable of being easily seen with normal
handling of the good or container;
legible means capable of being easily read;
materially discourage means add a cost to the good that is
substantial in relation to its customs value;
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 the
Party into which the good is imported 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 314
Distinctive Products
1. Mexico and Canada 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, Mexico and Canada
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. The United States and Mexico shall recognize Canadian
Whiskey as a distinctive product of Canada. Accordingly, the
United States and Mexico shall not permit the sale of any product
as Canadian Whiskey, unless it has been manufactured in Canada in
accordance with the laws and regulations of Canada governing the
manufacture of Canadian Whiskey for consumption in Canada.
3. The United States and Canada shall recognize Tequila and
Mezcal as distinctive products of Mexico. Accordingly, the
United States and Canada 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 315
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:
(a) to limit to domestic consumers the benefits of a
domestic food assistance program with respect to such
foodstuff; or
(b) to ensure the availability of sufficient quantities of
such foodstuff to domestic consumers or of sufficient
quantities of its ingredients, or of the goods from
which such foodstuffs are derived, to a domestic
processing industry, when the domestic price of such
foodstuff is held below the world price as part of a
governmental stabilization plan, provided that such
duty, tax, or other charge
(i) does not operate to increase the protection
afforded to such domestic industry, and
(ii) is maintained only for such period of time as is
necessary to maintain the integrity of the
stabilization plan.
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 Exportaci¢n") for up to 10 years after the date of
entry into force of this Agreement.
=============================================================================
4. For purposes of paragraph 1, "basic foodstuffs" means:
Beans
Beef steak or pulp
Beef liver
Beef remnants and bones ("retazo con
hueso")
Beer
Bread
Brown sugar
Canned sardines
Canned tuna
Canned peppers
Chicken broth
Condensed milk
Cooked ham
Corn tortillas
Corn flour
Corn dough
Crackers
Eggs
Evaporated milk
French rolls ("pan blanco")
Gelatine
Ground beef
Instant coffee
Low-priced cookies ("galletas dulces
populares)
Margarine
Oat flakes
Pasteurized milk
Powdered chocolate
Powdered milk for children
Powdered milk
Rice
Roasted coffee
Salt
Soft drinks
Soup paste
Tomato puree
Vegetable oil
Vegetable fat
Wheat flour
White sugar
=============================================================================
ANNEX 316
Other Export Measures
Article 316 shall not apply as between Mexico and the other
Parties.
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