NAFTA: Annexes | Page 8

and Revision of Rules of Origin
1. (a) The Parties shall monitor the effects of the application of the rule of origin contained in Annex 401.1 applicable to goods of subheading 6212.10. No earlier than 15 months after the date of entry into force of this Agreement, any Party may request consultations to seek a mutually satisfactory solution to any difficulties that it considers results from the application of that rule of origin.
(b) If the Parties fail to reach a mutually satisfactory solution through consultations within 90 days of a request for consultations, any Party may request that the rule applicable to subheading 6212.10 be changed to the rule applicable to headings 62.06 through 62.11 of the Harmonized System (HS) with respect to trade with the requesting Party. Any such change shall be effective no earlier than 180 days following the request therefor. The Parties shall take measures to ease any resulting administrative burden on producers.
(c) Unless otherwise agreed, at any time after the initial consultations, and within the transition period of this Agreement, any Party may make one request for additional consultations under the same procedures provided in paragraphs (a) and (b).
2. (a) At the request of any Party, the Parties shall consult to consider whether specific goods should be made subject to different rules of origin in order to address issues of availability of supply of fibers, yarns or fabrics within the free trade area.
(b) In the consultations, each Party shall consider all data presented by a Party showing substantial production in its territory for a good submitted for review. A legitimate claim of substantial production of the good in the territory of a Party shall be deemed to exist if that Party can show that its domestic producers are capable of supplying commercial quantities of the good in a timely manner.
(c) The Parties shall make every effort to conclude consultations within sixty days. Any agreement between two or more Parties resulting from these consultations shall be considered part of this Agreement. If agreement is not reached, the Parties have recourse to the provisions of paragraph 8(a) of Appendix 6.6.
(d) In this context, at the request of any Party, the Parties shall consult to consider whether the rules of origin applicable to the following provisions in Annex 401.1 should be amended in view of increasing availability of supply of relevant yarns or fabrics within the free trade area;
(i) Canadian tariff item 5407.60.10, United States tariff item 5407.60.22 and Mexican tariff item 5407.60.02,
(ii) provisions (i) through (viii) of the rule for subheadings 6205.20 through 6205.30,
(iii) note 2 to
Chapter 61
,
(iv) note 2 to
Chapter 62
, and
(v) Canadian tariff item 6303.92.a1, United States tariff item 6303.92.h1 and Mexican tariff item 6303.92.x1.
3. The Parties shall review the rules of origin applicable to textile and apparel goods within five years after the date of entry into force of this Agreement to take into account the effect of increasing global competition on textile and apparel goods, and the implications of any integration into the GATT of textile and apparel goods pursuant to any successor agreement to the Multifiber Arrangement. The Parties shall give particular consideration to operative rules in other economic association or integration agreements and developments related to textile and apparel production and trade between the Parties and worldwide.
Section 8: Labelling Requirements
To facilitate trade in textile and apparel goods between the Parties through the harmonization of domestic labelling requirements and the elimination of unnecessary obstacles to trade resulting from differences in such requirements, the Subcommittee on Labelling of Textile and Apparel Goods established under Article 913(5) shall perform the functions set out in Annex 913-D.
Section 9: Trade in Worn Clothing and Other Worn Articles
1. The Parties hereby establish a Committee on Trade in Worn Clothing comprising representatives of each Party. The purpose of the Committee shall be to assess the potential effects that may result from the elimination of restrictions, maintained by a Party prior to the date of entry into force of this Agreement, on trade in worn clothing and other worn articles as defined in the heading 63.09 of the HS. This Committee shall:
(a) include or consult with a broadly representative group from the manufacturing and retailing sectors in each Party; and
(b) act in a transparent manner and reach recommendations by consensus of all representatives involved.
2. The Committee shall develop and pursue a work program to consider the potential benefits and risks that may be derived from the elimination of restrictions on trade between the Parties in worn clothing and other worn articles, including the effects on business and employment opportunities, and on the market for textile and apparel goods in each Party.
3. Notwithstanding Article 309 and paragraph 2 of Section 3, a Party may maintain restrictions in effect upon the date of entry into force of this Agreement on the importation of