I. Rules for Determining the Place of Origin

In the United States - Mexico - Canada Agreement (USMCA), the determination of the place of origin of construction machinery products needs to consider various factors, including changes in tariff classification and regional value content. For goods using imported raw materials in the manufacturing process, the determination of the place of origin is more complex. The following are the specific requirements for determining the place of origin:

Change in Tariff Classification:After the product is imported into a USMCA member state and undergoes manufacturing and processing, the HS code of the resulting product needs to change. For construction machinery products (such as concrete pump trucks), if the raw materials used come from non - USMCA member states, then after being imported into a member state and processed, the HS code of the final product should change from a heading other than 8413 to 8413.11 to 8413.82. This means that as long as the HS code of the upper structure of the truck is not in heading 8413, and after manufacturing and assembly, the HS code of the concrete pump truck becomes 8413.40.00, the requirements for determining the place of origin can be met.

Regional Value Content:If the HS code of the raw materials is 8413.91 or 8413.92, in addition to meeting the change in tariff classification, the standards for regional value content also need to be met. These standards are:

? The proportion according to the transaction value method reaches 60%;
? The proportion according to the net cost method reaches 50%.

According to Article 4.2 (b) of the USMCA, specific products that are completely produced within USMCA member states but use materials from non - USMCA member states can obtain origin status if they meet the provisions of Annex 4 - B of Chapter 4. These provisions are particularly important for products that change to HS codes 8413.11 to 8413.82.

II. Other Rules Affecting the Determination of the Place of Origin

In addition to changes in tariff classification and regional value content, the following restrictive conditions also need to be considered:

De Minimis Rule:根據(jù)USMCA第4.12條，如果產(chǎn)品中非原產(chǎn)材料的關(guān)稅分類未發(fā)生變化，且所有非原產(chǎn)材料的價(jià)值不超過產(chǎn)品成品交易價(jià)值或總成本的10%，則該產(chǎn)品仍可被認(rèn)定為原產(chǎn)產(chǎn)品。

Transit and Transshipment Requirements:根據(jù)USMCA第4.18條，產(chǎn)品需直接從一個(gè)USMCA成員國運(yùn)至另一個(gè)成員國。如果在非成員國進(jìn)行中轉(zhuǎn)，產(chǎn)品必須保持在海關(guān)監(jiān)管下，且未進(jìn)行任何實(shí)質(zhì)性加工或進(jìn)行重新裝卸、標(biāo)記、儲存等操作，才能維持原產(chǎn)地認(rèn)定。

Application Example: Determination of the Place of Origin of a Concrete Pump Truck

If a company is a construction machinery manufacturer, it transports raw materials (such as the upper structure of a truck) from China to Mexico, and at the same time purchases a truck chassis from the United States to Mexico, and then assembles it into a concrete pump truck (construction machinery product, HS code 8413.40.00) locally. In this case:

Change in Tariff Classification:If the HS code of the upper structure of the truck from China is not 8413, and the HS code of the finally assembled concrete pump truck becomes 8413.40.00, then the product can meet the USMCAs requirements for determining the place of origin.

Regional Value Content:If the HS code of the upper structure of the truck is 8413.91 or 8413.92, then in addition to meeting the change in tariff classification, it is also necessary to ensure that the regional value content reaches the required standards.

De Minimis Rule:If the value of all non - originating materials does not exceed 10% of the transaction value or total cost of the finished product, the concrete pump truck can still be considered an originating product.

Transit and Transshipment Requirements:Ensure that the concrete pump truck is directly transported from Mexico to the United States or Canada, and remains under customs supervision during the transit process without undergoing substantial processing or operations.

In summary, under the premise of meeting the criteria of tariff classification change and regional value content, it can be recognized as originating from Mexico. This not only helps reduce tariffs but also enhances the competitiveness of products in the North American market. Ensuring strict compliance with the provisions of the USMCA is the key to achieving this goal.