ANNEX I 1. The Schedule of a Party sets out the reservations taken by that Party, pursuant to Articles 1108(1) and 1206(2), with respect to existing, non-conforming measures that derogate from an obligation relating to: (a) national treatment, pursuant to Article 1102 (Investment) or 1202 (Services); (b) most-favored-nation treatment, pursuant to Article 1103 (Investment) or 1203 (Services); (c) local presence, pursuant to Article 1205 (Services); (d) performance requirements, pursuant to Article 1106 (Investment); or (e) nationality requirements for senior management or members of boards of directors, pursuant to Article 1107 (Investment). 2. Each reservation sets out the following elements (ftnt 1): (a) SECTOR refers to the general sector in which the reservation is taken; (b) SUB-SECTOR refers to the specific sector in which the reservation is taken; (c) INDUSTRY CLASSIFICATION refers to the activity, where applicable, covered by the reservation according to domestic industry classification codes; (d) TYPE OF RESERVATION specifies the obligation referred to in paragraph 1 for which a reservation is taken; (e) LEVEL OF GOVERNMENT indicates the level of government maintaining the measure for which the Party is taking the reservation; (f) LEGAL CITATION identifies the specific existing measures, where applicable, for which the reservation is taken; (ftnt 2) (g) DESCRIPTION describes the non-conforming aspects of the existing measures for which the reservation is taken and, where applicable, commitments for liberalization upon entry into force of this Agreement; and (h) DURATION sets out the period for which the reservation is taken and the phase-in of commitments for liberalization. 3. In the interpretation of a reservation, all elements of the reservation should be considered. Where the DURATION does not provide for liberalization, the LEGAL CITATION shall govern to the extent of any inconsistency with any other element. Where the DURATION provides for liberalization upon or after entry into force of this Agreement, the DURATION shall govern to the extent of any inconsistency with any other element. 4. Where a Party maintains a measure that requires that a service provider be a citizen, permanent resident or resident of its territory as a condition to the provision of a service in its territory, a reservation for Articles 1202, 1203 or 1205 taken with respect to that measure shall operate as a reservation for Articles 1102 or 1103 with respect to the effect of that measure on the ability of the service provider to establish an investment. 5. For purposes of this Annex: CMAP means Clasificaci˘n Mexicana de Actividades y Productos; concession means an authorization provided by the State to a person to exploit a natural resource or provide a service, for which Mexican nationals and Mexican enterprises are granted priority over foreigners; CPC means Central Product Classification numbers as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991; foreigners' exclusion clause means the express provision in an enterprise's by-laws, stating that the enterprise shall not allow foreigners, directly or indirectly, to become partners or shareholders of the enterprise; international cargo means goods that have an origin or destination outside the territory of a Party; Mexican enterprise means an enterprise constituted under the laws of Mexico; Mexican national means a national of Mexico, as defined by the Constitution of Mexico; person of a Party means a national or an enterprise of a Party; and SIC means: (a) with respect to Canada, Standard Industrial Classification (SIC) numbers as set out in Statistics Canada, Standard Industrial Classification, fourth edition, 1980; and (b) with respect to the United States, Standard Industrial Classification (SIC) numbers as set out in the United States Office of Management and Budget, Standard Industrial Classification Manual, 1987. FOOTNOTE 1: The reservations are current as of September 5, 1992. The three delegations understand that where a Party adopts liberalizing measures prior to the date of entry into force of this Agreement, such measures will be considered to be existing measures. FOOTNOTE 2: The three delegations are considering the need for inclusion of language to the effect that measures set out in the LEGAL CITATION shall be deemed to include existing administrative decisions, interpretations and practices pursuant to the measure cited. ANNEX I Schedule of the United States SECTOR: Energy SUB-SECTOR: Atomic Energy INDUSTRY CLASSIFICATION: Not Applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Atomic Energy Act of 1954, 42 U.S.C. 2133-2134 DESCRIPTION: Investment A license is required for any person in the United States to transfer, manufacture, produce, use or import any facilities that produce or use nuclear materials. Such license may not be issued to any entity known or believed to be owned, controlled or dominated by an alien, a foreign corporation or a foreign government (42 U.S.C. 2133, 2134). The issuance of a license is also prohibited for utilization or production facilities for such uses as medical therapy or research and development activities to any corporation or other entity owned, controlled or dominated by one of the foreign persons described above (42 U.S.C. 2134(d)). DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Business Services SUB-SECTOR: Export Intermediaries INDUSTRY CLASSIFICATION: 7389 Business Services, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Export Trading Company Act of 1982, Public Law 97-290, 96 Stat. 1233, 15 U.S.C. 4011-4021 15 C.F.R. Part 325 DESCRIPTION: Cross-Border Services Title III of the Export Trading Company Act of 1982 authorizes the Secretary of Commerce to issue "certificates of review" with respect to export conduct. The Act calls for the issuance of a certificate of review if the Secretary determines, and the Attorney General concurs, that the export conduct specified in an application will not have the anticompetitive effects proscribed by the Act. A certificate of review limits the liability under federal and state antitrust laws in engaging in the export conduct certified. Only a "person" as defined by the Act can apply for a certificate of review. The term "person" means "an individual who is a resident of the United States; a partnership that is created under and exists pursuant to the laws of any State or of the United States; a State or local government entity; a corporation, whether organized as a profit or nonprofit corporation, that is created under and exists pursuant to the laws of any State or of the United States; or any association or combination, by contract or other arrangement, between such persons." A foreign national or enterprise can receive the protection provided by a certificate of review by becoming a "member" of a qualified applicant. The regulations define "member" to mean "an entity (U.S. or foreign) which is seeking protection under the certificate with the applicant. A member may be a partner in a partnership or a joint venture; a shareholder of a corporation; or a participant in an association, cooperative, or other form of profit or nonprofit organization or relationship, by contract or other arrangement." DURATION:Indeterminate ============================================================================= ANNEX I Schedule of United States SECTOR:Business Services SUB-SECTOR:Export Intermediaries INDUSTRY CLASSIFICATION:7389 Business Services, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Export Administration Act of 1979, Pub. L. 96-72, as amended Export Administration Regulations, 15 C.F.R. parts 768 through 799 DESCRIPTION: Cross-Border Services With some limited exceptions, the export from the United States of all commodities, and all "technical data", requires either a general license or a validated license or other authorization granted by the Office of Export Licensing, United States Department of Commerce. A general license requires no application or documentation and is generally available for use by all persons. An application for a validated license may be made only by a person subject to the jurisdiction of the United States who is in fact the exporter, or by his duly authorized agent. An application may be made on behalf of a person not subject to the jurisdiction of the United States by an authorized agent in the United States, who then becomes the applicant. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of United States SECTOR: Communications SUB-SECTOR: Telecommunications (Enhanced or Value-Added Services) INDUSTRY CLASSIFICATION: CPC 752323 Value-Added Network Services CPC 752329 Other Message Services TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: F.C.C. Decision, International Communications Policies Governing Designation of Recognized Private Operating Agencies, 104 F.C.C. 2d 208, n. 123, n. 126 (1986) 47 C.F.R. 64.702 (1991) (Definition of enhanced or value- added services) DESCRIPTION: Investment If a U.S.-based foreign-owned enhanced service provider obtains voluntary Recognized Private Operating Agency certification from the U.S. Department of State for purposes of negotiating operating agreements with governments other than the U.S. Government, it must submit copies of all operating agreements granted to it by foreign governments and any refusal of a foreign government to grant it an operating agreement. For purposes of this rule, a service provider is generally considered "foreign owned" if 20 percent or more of its stock is owned by persons that are not U.S. citizens. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Manufacturing SUB-SECTOR: Agricultural Chemicals INDUSTRY CLASSIFICATION: SIC 2879 Pesticides and Agricultural Chemicals, not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Federal Insecticide, Fungicide, and Rodenticide Act, as amended, 7 U.S.C. 136 et seq. DESCRIPTION:Investment 7 U.S.C. 135h(g) prevents the Administrator of the Environmental Protection Agency from knowingly disclosing information submitted by an applicant or registrant under the Act (without consent) to any person engaged in the production, sale or distribution of pesticides in countries other than the United States or to any person who intends to deliver such data to such foreign or multinational business or entity. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Mining and Materials SUB-SECTOR: Minerals Mining INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Mineral Lands Leasing Act of 1920; 30 U.S.C. Chapter 3; 10 U.S.C. 7435 DESCRIPTION: Investment 1. Under the Mineral Lands Leasing Act of 1920, aliens and corporations with foreign stockholders may not acquire rights-of-way for oil or gas pipelines, or pipelines carrying products refined from them, across on- shore federal lands, or acquire leases or interests in certain minerals, such as coal or oil. However, non-U.S. citizens may own a 100 percent interest in a domestic corporation that acquires a right-of-way for oil or gas pipelines across on-shore federal lands or lease to develop mineral resources on on-shore federal lands unless the foreign investor's home country denies similar or like privileges for the mineral or access in question to U.S. citizens or corporations, as compared with the privileges it accords to its own (30 U.S.C. 181, 183(a)). 2. Nationalization is not considered to be denial of similar or like privileges. 3. See also 10 U.S.C. 7435, which restricts foreign citizens, or corporations controlled by them, from obtaining access to leases on Naval Petroleum Reserves, should the laws, customs or regulations of their country deny the privilege of leasing public lands to citizens or corporations of the United States. DURATION: Indeterminate. ============================================================================= ANNEX I Schedule of United States SECTOR: Professional Services SUB-SECTOR: Patent Attorneys and Patent Agents and other Practice before the Patent and Trademark Office INDUSTRY CLASSIFICATION: [to be provided] TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 35 USC Chapter 3 (Practice Before Patent and Trademark Office) 37 C.F.R. Part 10 (Representation of Others Before the U.S. Patent and Trademark Office) DESCRIPTION: Cross-Border Services As a condition to be registered to practice for others before the U.S. Patent and Trademark Office (USPTO): (a) a patent attorney must be a U.S. citizen or an alien lawfully residing in the United States (37 C.F.R. 10.6(a)); (b) a patent agent must be a U.S. citizen, an alien lawfully residing in the United States, or a non-resident who is registered to practice in a country that permits patent agents registered to practice before the USPTO to practice in that country (37 C.F.R. 10.6(c)); and (c) a practitioner in trademark and non-patent cases must be an attorney licensed in the United States, a "grandfathered" agent, an attorney licensed to practice in another country that accords equivalent treatment to attorneys licensed in the United States, or an agent registered to practice in such a country (37 C.F.R. 10.14(a)-(c)). DURATION: Citizenship and permanent residency requirements subject to removal within two years after entry into force of this Agreement in accordance with Article 1210(3). ============================================================================= ANNEX I Schedule of the United States SECTOR: Public Administration SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEGAL CITATION: 22 U.S.C. 2194(a), 2194(b) and 2198(c) LEVEL OF GOVERNMENT: Federal DESCRIPTION: Investment The Overseas Private Investment Corporation (OPIC) insurance and loan guarantees under 22 U.S.C. 2194(a), 2194(b) and 2198(c) are not available to certain aliens, foreign enterprises, or foreign controlled domestic enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 3721 Aircraft Repair and Rebuilding on a Factory Basis SIC 4581 Aircraft Repair (Except on a Factory Basis) TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 49 U.S.C. App. 1354, 1421-1430 14 C.F.R. Parts 43 and 145 Agreement Concerning Airworthiness Certification, Exchange of Letters between U.S. and Canada dated August 31, 1984, Treaties and International Agreement Service 11023 DESCRIPTION: Cross-Border For major aircraft repair, overhaul or maintenance activities, during which an aircraft is withdrawn from service, U.S. measures require that, in order to perform work on U.S.-registered aircraft, foreign air repair stations must be certified by the Federal Aviation Administration with continuing oversight provided by the Federal Aviation Administration. Pursuant to a bilateral airworthiness agreement dated August 31, 1984, as amended, between the United States and Canada, the United States recognizes the certifications and oversight provided by Canada for all repair stations and individuals performing the work located in Canada. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: 4512 Air Transportation Scheduled 4522 Air Transportation Non-scheduled 4513 Air Courier Services TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Aviation Act of 1958, as amended; 14 C.F.R. For purposes of this entry, the Description governs. DESCRIPTION: Investment Whether an entity is a U.S. citizen determines the type of commercial air services company that it can own or control. Under the Federal Aviation Act of 1958 (49 U.S.C. App. Ch. 20), "citizens" include (1) individuals who are citizens; (2) a partnership in which each member is a citizen of the U.S.; or (3) a U.S. corporation of which the president and at least two-thirds of the board of directors and other managing officers are U.S. citizens, and at least seventy-five percent of the voting interest in the corporation is owned or controlled by U.S. citizens. 49 U.S.C. App. 1301(16). In addition, this statutory requirement has historically been interpreted by the Department of Transportation (and the Civil Aeronautics Board before it) to require that an air carrier in fact be under the actual control of U.S. citizens. The Department of Transportation makes this determination on a case-by-case basis. Nevertheless, the Department has provided guidance as to some lines of demarcation. For example, total foreign equity investment of up to 49 percent (with a maximum of 25 percent being voting stock), taken alone, is not construed as indicative of foreign control. (See Department of Transportation Order 91-1-41, January 23, 1991.) Only air carriers that are U.S. citizens are permitted to operate domestic air services or operate international air services as a "U.S." carrier; non-U.S. citizens may own and control foreign air carriers that operate between the U.S. and foreign points. See Sections 401, 402, 417(b)(7) and 1108 of the Federal Aviation Act. The different rights of each type of air carrier are usually spelled out in the applicable aviation bilateral agreement. Certain distinctions based on citizenship also exist with regard to other types of air services providers, such as air freight forwarders (14 C.F.R. 297), charter operators (14 C.F.R. 380), and intermodal operators (14 C.F.R. 222). Air freight forwarders may be "U.S. citizens" (defined as indicated above) which use the services of (inter alia) direct air carriers (with a Department of Transportation certificate, regulation, order or permit) to transport property. 14 C.F.R. Part 296. They may also be "foreign air freight forwarders", which similarly use direct air carriers to transport property. 14 C.F.R. Part 296. There is no "U.S. citizenship" requirement for "foreign air freight forwarders." 14 C.F.R. 297.3(d). Foreign air freight forwarders may obtain the same operating exemptions available to U.S. citizens. They must, however, apply for registration with the Department of Transportation. Their application can be rejected "for reasons relating to the failure of effective reciprocity, or if the Department finds that it is in the public interest to do so." 14 C.F.R. 297.22. Charter operators may be "public charter operators", which inter alia must be "U.S. citizens" (defined as indicated above) or "foreign charter operators," for which there is not a citizenship requirement. 14 C.F.R. 380.2. Unlike domestic charter operators, "foreign charter operators" wishing to operate charters which originate in the U.S. must register with the Department of Transportation. 14 C.F.R. 380.61. The Department of Transportation may reject a registration application "for reasons relating to the failure of effective reciprocity or if the Department finds it would be in the public interest to do so." 14 C.F.R.  380.64. A direct foreign air carrier may engage in the surface transport of property (which it has carried by air) in a zone extending 35 miles from the boundary of the airport or city it is authorized to serve. There is no such geographic limitation on a direct U.S. air carrier, or on a U.S. or foreign indirect air carrier. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 0721 Crop Planting, Cultivating, and Protecting (limited to aerial dusting and spraying, dusting crops, with or without fertilizing, spraying crops, with or without fertilizing) SIC 4522 Air Transportation, services, sightseeing airplane services) SIC 7319 Advertising, Not Elsewhere Classified (limited to aerial advertising, sky writing) SIC 7335 Commercial Photography (limited to aerial photographic service, except mapmaking) SIC 7389 Business Services, Not Elsewhere Classified (limited to mapmaking, including aerial, pipeline and powerline inspection services, firefighting service, other than forestry or public) SIC 7997 Membership Sports & Recreation Clubs (limited to aviation clubs, membership) SIC 8299 Schools & Education Services, Not Elsewhere Classified (limited to flying instruction) SIC 8713 Surveying Services (limited to aerial surveying) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Aviation Act of 1958, as amended; 49 U.S.C. App. 1508(b); 14 C.F.R. 375. For purposes of this entry, paragraph 3 of the Description governs. DESCRIPTION: Cross-Border Services 1. Authorization from the Department of Transportation is required for the provision of specialty air services in the territory of the United States. A person of Canada or Mexico that provides aerial construction, heli-logging, aerial sightseeing, flight training, aerial inspection and surveillance and aerial spraying services may not be authorized to provide such services if there is inadequate reciprocity on the part of the country of the applicant, or if approval would otherwise not be in the public interest. 2. A person of Mexico or Canada may be authorized to provide, subject to compliance by that person with U.S. safety regulations, aerial mapping, aerial surveying, aerial photography, forest fire management, fire fighting, aerial advertising, glider towing and parachute jumping. Investment 3. Specialty air enterprises are required to comply with the same requirements as those set out in the exception for air transportation carriers described in the investment exception for air transportation. DURATION:Cross-Border Paragraph 2 of the Description governs on entry into force. A person of Canada or Mexico may obtain, subject to compliance with U.S. safety requirements, authorization to provide the following specialty air services in the territory of the United States: (a) two years after entry into force of the Agreement, aerial construction and heli-logging; (b) three years after entry into force of the Agreement, aerial sightseeing, flight training and aerial inspection and surveillance services; and (c) six years after entry into force of the Agreement, aerial spraying services. Investment: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Land Transportation INDUSTRY CLASSIFICATION: SIC 4213 Trucking, Except Local SIC 4215 Courier Services, Except by Air SIC 4131 Intercity and Rural Bus Transportation SIC 4142 Bus Charter Service, Except Local SIC 4151 School Buses (limited to interstate transportation not related to school activity) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Bus Regulatory Reform Act of 1982, as amended, section 6, 49 U.S.C. 10922(l) (1) and (2) 49 U.S.C. 10530 (3) 49 U.S.C. 10329, 10330 and 11705 and 49 C.F.R. 1044 19 U.S.C. 1202 Memorandum of Understanding Between the United States of America and the United Mexican States on Facilitation of Charter/Tour Bus Service, December 3, 1990. DESCRIPTION: Cross-Border Services Operating authority from the Interstate Commerce Commission (ICC) is required to provide interstate or cross border bus or truck services in the territory of the United States. A moratorium has been imposed on new grants of operating authority for persons of Mexico, except for provision of cross-border charter or tour bus services. Under the moratorium, persons of Mexico without operating authority may operate only within ICC Border Commercial Zones, for which ICC operating authority is not required. Persons of Mexico providing truck services (including for hire, private, and exempt services) without operating authority are required to obtain a certificate of registration from the ICC to enter the United States and operate in the ICC Border Commercial Zones. Persons of Mexico providing bus service are not required to obtain an ICC certificate of registration to provide such service within the ICC Border Commercial Zones. A person providing bus or truck service between points in the United States is required to use United States-registered and either U.S.- built or duty-paid equipment. Investment The moratorium has the effect of being an investment restriction because enterprises of the United States providing bus or truck services that are owned or controlled by persons of Mexico may not obtain ICC operating authority. DURATION: On entry into force of this Agreement, the Description shall govern. Cross-Border Services A person of Mexico will be permitted to obtain operating authority to provide: (a) three years after signature of this Agreement, cross-border truck services to or from border states (California, Arizona, New Mexico, and Texas), and such persons will be permitted to enter and depart the territory of United States through different ports of entry; (b) three years after entry into force of this Agreement, cross-border scheduled bus services; and (c) six years after entry into force of this Agreement, cross-border truck services. Investment A person of Mexico will be permitted to establish an enterprise in the United States to provide: (a) three years after signature of this Agreement, truck services for the distribution of international cargo between points in the United States; and (b) seven years after entry into force of this Agreement, bus services between points in the United States. Indeterminate: The moratorium will remain in place on grants of authority for the provision of truck services by persons of Mexico between points in the United States for the transportation of goods other than international cargo. ============================================================================= ANNEX I Schedule of United States SECTOR: Transportation Services SUB-SECTOR: Customs Brokers INDUSTRY CLASSIFICATION: SIC 4731 Arrangement of Transportation of Freight and Cargo TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 19 U.S.C. 1641(b) DESCRIPTION: Cross-Border Services and Investment Only U.S. citizens may obtain a customs broker's license, which is required to conduct customs business on behalf of another person. A corporation, association, or partnership established under the laws of any state may receive a customs broker's license if at least one officer of the corporation or association, or one member of the partnership, holds a valid customs broker's license. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: All SUB-SECTOR: TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEGAL CITATION: Securities Act of 1933, Rules 251 and 405, 17 C.F.R. 240.251 and 240.405 Securities Exchange Act of 1934, Section 12(b)(2), 15 U.S.C. 1(b)(2) and the Rules thereunder. DESCRIPTION: Investment Foreign issuers, except for certain Canadian issuers, may not use the small business forms under the Securities Act of 1933 to register securities. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: SUBSECTOR: INDUSTRY CLASSIFICATION: SIC 4952 Sewerage System TYPE OF RESERVATION: Performance Requirements (Article 1106) LEGAL CITATION: Clean Water Act, 33 U.S.C. 1251 et seq. DESCRIPTION: Investment The Clean Water Act authorizes grants for the construction of treatment plants for municipal sewage or industrial waste. Grant recipients may be privately-owned enterprises. The Act provides that grants shall be made for treatment works only if such articles, materials, and supplies as have been manufactured, mined or produced in the United States will be used in the treatment works. The Administrator of the Environmental Protection Agency has authority not to apply this provision, e.g., if the cost of the articles in question is unreasonable. 33 U.S.C. 1295. DURATION: Indeterminate ANNEX I Schedule of Canada SECTOR: Agriculture SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Farm Credit Act, R.S.C. 1985, c. F-2 as amended by R.S.C. 1985, c. 1 (4th Supp.); S.C. 1991, c. 5, 53 Farm Credit Regulations, C.R.C. 1978, c. 644 as amended by SOR/81-560; SOR/82-495; SOR/83-198 DESCRIPTION: Investment Loans by the Farm Credit Corporation may be made only to: (a) individuals who are Canadian citizens or permanent residents; (b) farming corporations controlled by Canadian citizens or permanent residents; or (c) cooperative farm associations, all of whose members are Canadian citizens or permanent residents. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Performance Requirements (Article 1106) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c. 28, as amended by S.C.1988, c. 65 Investment Canada Regulations, SOR/85-611, as amended by SOR/189-69 An Act to Amend the Investment Canada Act, (Bill C-89, introduced in Parliament on 18 June 1992) DESCRIPTION: Investment 1. Under the Investment Canada Act, the following acquisitions of Canadian businesses by "non-Canadians" are subject to review by Investment Canada: (1) all direct acquisitions of Canadian businesses with assets of $5 million or more; (2) all indirect acquisitions of Canadian businesses with assets of $50 million or more; and (3) indirect acquisitions of Canadian businesses with assets between $5 million and $50 million which represent more than 50 percent of the value, calculated in the prescribed manner, of the assets of all the entities the control of which is being acquired, directly or indirectly, in the transaction in question. 2. "Canadian business", "Canadian" and "non-Canadian" are defined in the Investment Canada Act. A "non- Canadian" is an individual, government or agency thereof or an entity which is not "Canadian". 3. In addition, specific acquisitions or new businesses in designated types of business activities related to Canada's cultural heritage or national identity, which are normally notifiable, may be reviewed if the Governor in Council authorizes a review in the public interest. 4. Investments subject to review under the Investment Canada Act are not to be implemented unless the Minister responsible for the Investment Canada Act advises the applicant that the investment is likely to be of net benefit to Canada. Such a determination is made in accordance with six factors described in the Act. 5. These factors are summarized as follows: (a) the effect of the investment on the level and nature of economic activity in Canada, including the effect on employment, on the utilization of parts, components and services produced in Canada, and on exports from Canada; (b) the degree and significance of participation by Canadians in the investment; (c) the effect of the investment on productivity, industrial efficiency, technological development and product innovation in Canada; (d) the effect of the investment on competition within any industry or industries in Canada; (e) the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and (f) the contribution of the investment to Canada's ability to compete in world markets. 6. In making a net benefit determination, the Minister, through Investment Canada, may review plans under which the applicant demonstrates the net benefit to Canada of the proposed acquisition. An applicant may also submit undertakings to the Minister in connection with any proposed acquisition which is the subject of review. In the event of noncompliance with an undertaking by an applicant, the Minister may seek a court order directing compliance or any other remedy authorized under the Act. 7. The establishment or acquisition of Canadian businesses by non- Canadians, other than those described above, are to be notified to the agency administering the Act, Investment Canada. 8. Review of "acquisition of control", as defined in the Investment Canada Act, of a Canadian business by an American or Mexican will take place if the value of the gross assets of the Canadian business is not less than the applicable thresholds, effective on the date of entry into force of this Agreement and adjusted on each anniversary thereof. The calculation of the applicable review threshold is set out in the Duration section below. 9. The review threshold applicable to American and Mexican investors is higher than those set out above. However, this higher review threshold does not apply in the following sectors: uranium production and ownership of uranium producing properties; oil and gas; financial services; transportation services and cultural businesses. 10. Indirect "acquisitions of control", as defined in the Investment Canada Act, of Canadian businesses by "American" and "Mexican" investors are not reviewable. Notwithstanding the definition of "investor of a Party" in Chapter Eleven, only investors who are nationals, or entities controlled by nationals, (as defined in the Investment Canada Act) of the United States or Mexico, may benefit from the higher review threshold. 11. Notwithstanding Article 1106(1), Canada reserves the right to impose requirements, or enforce any commitment or undertaking, in connection with the establishment, acquisition, expansion, conduct or operation of an investment of an investor of another Party for the transfer of technology, production process or other proprietary knowledge to a national or enterprise, affiliated to the transferor, in Canada, in connection with the review of an acquisition of an investment pursuant to the Investment Canada Act. 12. Except for requirements, commitments or undertakings related to technology transfer as set out above, Article 1106(1) shall apply to requirements, commitments or undertakings imposed or enforced under the Investment Canada Act. However, Article 1106(1) shall not be construed to apply to any requirement, commitment or undertaking imposed or enforced in connection with a review under the Investment Canada Act, to locate production, carry out research and development, employ or train workers, or to construct or expand particular facilities, in Canada. DURATION: Paragraphs 10, 11 and 12 of the Description setting out Canada's reservations and commitments with respect to Articles 1102, 1106(1), and 1138 shall govern. For American and Mexican investors, the applicable threshold for the review of a direct acquisition of control of a Canadian business shall be: (a) for the twelve month period commencing on the date of entry into force of this Agreement, such monetary amount as determined in accordance with Annex 1607.3 of the Canada-United State Free Trade Agreement; (b) commencing on the first anniversary of the date of entry into force of this Agreement, the monetary amount for the preceding year multiplied by an annual adjustment representing the increase in nominal Gross Domestic Product, as set out below. The calculation of the annual adjustment shall be determined in January of each year after 1994 using the most recently available data as published by Statistics Canada and using the following formula: Ann ual Adjustment = Current nominal GDP at market prices --------------------------------- ----------------------Previous year nominal GDP at market prices "Current nominal GDP at market prices" means the arithmetic mean of the nominal Gross Domestic Product at market prices for the most recent four consecutive quarters (seasonally adjusted at annual rates). "Previous year nominal GDP at market prices" means the arithmetic mean of the nominal Gross Domestic Product at market prices for the four consecutive quarters (seasonally adjusted at annual rates) for the comparable period in the year preceding the year used in calculating the "current nominal GDP at market prices". The amounts determined in this manner shall be rounded to the nearest million dollars. ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal Provincial LEGAL CITATION: DESCRIPTION: Investment When selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity, Canada and each province reserve the right to prohibit or impose limitations on the ownership of such interests or assets, and on the ability of owners of such interests or assets to control any resulting enterprise, by investors of another Party or non-Party or their investments. In addition, Canada and each province reserve the right to adopt or maintain any measure relating to the nationality of senior management or members of the board of directors. For the purposes of this reservation: (a) any measure maintained, or adopted after the entry into force of this Agreement, prohibiting or imposing limitations on the ownership of equity interests or assets or nationality requirements described in this reservation shall be deemed to be an existing measure; and (b) "state enterprise" means an enterprise owned or controlled through ownership interests by Canada or a province and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity. DURATION: The Description shall govern on entry into force of this Agreement. Indeterminate. ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Business Corporations Act, R.S.C. 1985, C. I-44, as amended by R.S.C. 1985, c. 27 (2nd Supp.), R.S.C. 1985, c. 1 (4th Supp.); S.C. 1990, c. 17; S.C. 1991, c. 45, 46, 47 Canada Corporations Act, R.S.C. 1970, C. C-32, as amended by R.S.C. 1970, c. C-10 (1st Supp.); S.C. 1970-71-72, c. 43, 63; S.C. 1972, c. 17; S.C. 1974-75-76, c. 33; S.C. 1978-79, c. 11; S.C. 1985, c. 26; S.C. 1986, c. 26, 35 Canada Business Corporations Act Regulations SOR/79-316, as amended by SOR/79-513, SOR/79-728, SOR/80-873, SOR/81-3, SOR/81-189, SOR/81-868, SOR/82-187, SOR/83-511, SOR/83781, SOR/83-817, SOR/85-384, SOR/86-365, SOR/86-366, SOR/86-421, SOR/86-983, SOR/87-248, SOR/87-629, SOR/8863, SOR/88-491, SOR/89-159, SOR/89-323, SOR/90-660, SOR/91-567 DESCRIPTION: Investment The cited laws and regulations permit constraints to be placed on issue, transfer and ownership of shares in federally incorporated business corporations. The object is to permit corporations to meet Canadian ownership requirements, under certain laws as prescribed in the regulations, in sectors where such ownership is required as a condition to operate. In order to maintain certain "Canadian" ownership levels, corporations are permitted to sell shareholders' shares without the consent of those shareholders, and to purchase the corporation's own shares on the open market. "Canadian" is defined in the regulations. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Business Corporations Act, R.S.C. 1985, c. I-44 as amended R.S.C. 1985, c. 27 (2nd Supp.), R.S.C. 1985, c. 1 (4th Supp.); S.C. 1990, c. 17; S.C. 1991, c. 45, 46, 47 Canada Business Corporations Act Regulations, SOR/79-316, as amended SOR/79-513, SOR/79-728, SOR/80-873, SOR/81-3, SOR/81-189, SOR/81-868, SOR/82-187, SOR/83-511, SOR/83-781, SOR/83-817, SOR/85-384, SOR/86-365, SOR/86-366, SOR/86-421, SOR/86-983, SOR/87-248, SOR/87-629, SOR/88-63, SOR/88-491, SOR/89-159, SOR/89-323, SOR/90-660, SOR/91-567 Canada Corporations Act, R.S.C. 1970, c. C-32 Special Acts of Parliament incorporating specific companies DESCRIPTION: Investment The Canada Business Corporations Act requires that a simple majority of members of the board of directors, or of a committee thereof, of a federally-incorporated company must be resident Canadians. For the purposes of the Act the term "resident Canadian" is defined as an individual who is a Canadian citizen ordinarily resident in Canada, a citizen who is a member of a class as set out in the regulations, or a permanent resident as defined in the Immigration Act except a person who has been ordinarily resident in Canada for more than one year after he became eligible to apply for Canadian citizenship. In the case of a holding corporation, not more than 1/3 of the directors need be resident Canadians if the earnings in Canada of the holding corporation and its subsidiaries are less than 5% of the gross earnings of the holding corporation and its subsidiaries. Under the Canada Corporations Act, a simple majority of the elected directors of a Special Act corporation must be residents of Canada and citizens of a Commonwealth country. This requirement applies to every joint stock company incorporated subsequent to 22 June 1869 by any Special Act of Parliament and any subsequent amendments to such Acts. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Citizenship Act, R.S.C. 1985, c. C-29 as amended by R.S.C. 1985 c. 28 (1st Supp.); c. 30 (3rd Supp.); c. 44 (3rd Supp.); c. 28 (4th Supp.) Foreign Ownership of Land Regulations, SOR/79-416; SOR/79-514; SOR/80-156; SOR/82-544 DESCRIPTION: Investment Under the Citizenship Act, a province is authorized to prohibit or restrict acquisitions of real property located in that province by non-Canadians. The Foreign Ownership of Land Regulations are made pursuant to the Citizenship Act and the Alberta Agricultural and Recreational Land Ownership Act. In Alberta, an ineligible person or foreign owned or controlled corporation may only hold an interest in controlled land consisting of not more than 2 parcels containing, in the aggregate, not more than 20 acres. An "ineligible person" is (1) an individual who is not a Canadian citizen or permanent resident; (2) a foreign government or agency thereof; or (3) a corporation incorporated elsewhere than in Canada. "Controlled land" means land in Alberta but does not include (1) land other than land owned by the Crown; (2) land within a city, town, new town, village, or summer village and (3) mines or minerals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Air Canada Public Participation Act, R.S.C. 1985, c. 35 (4th Supp.) Canada Development Corporation Reorganization Act, S.C. 1985, c. 49 Petro-Canada Public Participation Act, S.C. 1991, c. 10 Canadian Arsenals Limited Divestiture Authorization Act, S.C. 1986, c. 20 Cooperative Energy Act, S.C. 1980-81-82-83, c. 108 Eldorado Nuclear Limited Reorganization and Divestiture Act, S.C. 1988, c. 41 Nordion and Theratronics Divestiture Authorization Act, S.C. 1990, c. 4 DESCRIPTION: Investment Non-residents may not own more than a specified percentage of the voting shares of the corporation to which each Act applies. For each company the restrictions are as follows: Air Canada: 25% Canada Development Corporation: 25% Petro-Canada Inc: 25% Canadian Arsenals Limited: 25% Eldorado Nuclear Limited: ownership not restricted but voting rights restricted to 25% of votes cast at meetings Nordion Limited: 25% Theratronics Limited: 49% Cooperative Energy Corporation: 49% Non-resident is defined in the cited laws to generally mean: (a) an individual, other than a Canadian citizen, who is not ordinarily resident in Canada; (b) a corporation incorporated, formed or otherwise organized outside Canada; (c) the government of a foreign state or any political subdivision thereof, or a person empowered to perform a function or duty on behalf of such a government; (d) a corporation that is controlled directly or indirectly by non-residents as defined in any of paragraphs (a) to (c); (e) a trust (i) established by a non-resident as defined in any of paragraphs (b) to (d), other than a trust for the administration of a pension fund for the benefit of individuals a majority of whom are residents, or (ii) in which non-residents as defined in any of paragraphs (a) to (d) have more than fifty per cent of the beneficial interest; or (f) a corporation that is controlled directly or indirectly by a trust described in paragraph (e). DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Export and Import Permits Act, R.S.C., 1985, c. E-19 DESCRIPTION: Cross-Border Services Only natural persons ordinarily resident in Canada, enterprises having their head office in Canada or branch offices in Canada of a foreign enterprise may apply for and be issued import or export permits or a transit authorization certificate for goods and related services subject to controls pursuant to regulations of the Export and Import Permits Act. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Automotive SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: LEVEL OF GOVERNMENT: Performance Requirements (Article 1106) Federal LEGAL CITATION: Canada-United-States Free Trade Agreement Implementation Act DESCRIPTION: Investment Article 1106(3) shall not apply to the granting of waivers of customs duties conditioned, explicitly or implicitly, upon the fulfillment of performance requirements by those manufacturers of automotive goods: (a) set out in Part One of Annex 1002.1 of the Canada - United- States Free Trade Agreement, in accordance with the headnote to that Part; and (b) for the applicable periods specified in Article 1002(2) and (3) of the Canada - United-States Free Trade Agreement to those manufacturers of automotive goods set out in Parts Two and Three, respectively, of Annex 1002.1 of that Agreement. DURATION: (a) Indeterminate (b) For Part Two, until January 1, 1998; and for Part Three, until January 1, 1996 or such earlier date specified in existing agreements between Canada and the recipient of the waiver. ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Customs Brokerages and Brokers INDUSTRY CLASSIFICATION: SIC 7794 Customs Brokerages and Brokers TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Customs Act, R.S.C., 1985, c. 41 (2nd Supp.) Customs Brokers Licensing Regulations, SOR/86-1067 DESCRIPTION: Cross-Border Services and Investment 1. To be a licensed customs broker in Canada, an individual must be a Canadian citizen or permanent resident. 2. To be a licensed customs brokerage in Canada: (a) a corporation must be incorporated in Canada with a majority of its directors being Canadian citizens or permanent residents; and (b) a partnership must be composed of persons who are Canadian citizens or permanent residents, or corporations incorporated in Canada with a majority of their directors being Canadian citizens or permanent residents. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Duty Free Shops INDUSTRY CLASSIFICATION: SIC 6599 Other Retail Stores, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Customs Act, R.S.C., 1986, c.1 (2nd Supp.) Duty Free Shop Regulations, SOR/86-1072, as amended DESCRIPTION: Cross-Border Services and Investment 1. To be a licensed duty free shop operator at a land border crossing in Canada, an individual must: (a) be a Canadian citizen or permanent resident; (b) be of good character; (c) be principally resident in Canada; and (d) have resided in Canada for at least 183 days of the year preceding the year of application for the licence. 2. To be a licensed duty free shop operator at a border crossing in Canada, a corporation must: (a) be incorporated in Canada; and (b) have all of its shares beneficially owned by Canadian citizens or permanent residents who meet the requirements of paragraph 1. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Examination Services relating to the Export and Import of Cultural Property INDUSTRY CLASSIFICATION: SIC 990 Other Services TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Cultural Property Export and Import Act, R.S.C. 1985, c. C-51 DESCRIPTION: Cross-Border Services For purposes of the Cultural Property Export and Import Act an "expert examiner" of cultural property must be either a natural person who ordinarily resides in Canada or a corporation that has its head office in Canada or maintains one or more establishments in Canada to which employees employed in connection with the business of the corporation ordinarily report for work. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Patent Agents and Agencies INDUSTRY CLASSIFICATION: SIC 7499 Other Financial Intermediaries, Not Elsewhere Classified (Limited to Holders of Intellectual Property Rights) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Patent Act, R.S.C., 1985, c. P-4 Patent Rules, CRC, Vol. XIII, c. 1250, p.10053 Patent Cooperation Treaty Regulations, SOR/89-453 DESCRIPTION: Cross-Border Services 1. To be able to represent persons in the presentation and prosecution of applications for patents or in other business before the Patent Office, a patent agent must be a resident of Canada and registered by the Patent Office. 2. To prosecute an application for a patent in Canada a registered patent agent who is not a resident of Canada must appoint a registered patent agent who is a resident of Canada as an associate to prosecute the application. 3. Any firm may be added to the patent register provided that it has at least one member who is also on the register. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Trade-Mark Agents INDUSTRY CLASSIFICATION: SIC 7499 Other Financial Intermediaries, Not Elsewhere Classified (Limited to Holders of intellectual Property Rights) TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Trade-Marks Act, R.S.C., 1985, c. T-13 Trade-Marks Regulations, CRC, Vol. XVIII, c. 1559, p. 13803, as amended DESCRIPTION: Cross-Border Services 1. To be able to represent persons in the presentation and prosecution of applications for trade-marks or in other business before the Trade-Mark Office, a trade-mark agent must be a resident of Canada and registered by the Trade-Mark Office. 2. To prosecute an application for a trade-mark in Canada, a registered trade-mark agent who is not resident in Canada must appoint a registered trade-mark agent who is resident in Canada as an associate to prosecute the application. 3. Trade-mark agents who reside, and are registered (in good standing), in a Commonwealth country or the United States may be added to the register of trade-mark agents. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Petroleum Resources Act, R.S.C. 1985, c. 36 (2nd Supp.) as amended by R.S.C. 1985, c. 21 (4th Supp.), S.C. 1990, c. 8, 41., S.C. 1991, c. 10 (partly in force), 24 (not in force), 46 (not in force) Territorial Lands Act, R.S.C. 1985, c.T-7 as amended by R.S.C. 1985, c. 7 (3rd Supp.)(partly in force); S.C. 1991, c. 2, 24 (not in force), 50 (not in force) Public Lands Grants Act, R.S.C. 1985, c. P-30 as amended R.S.C. 1985, c. 13 (1st Supp.); S.C. 1991, c. 24 (not in force). Act repealed S.C. 1991, c. 50 (repealing legislation not in force) Canada-Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3 as amended by S.C. 1988, c. 28, S.C. 1990, c. 41; S.C. 1991, c. 46 (not in force), 49, 50 (not in force) Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28 as amended by S.C. 1990, c. 28, 41; S.C. 1991, c. 46 (not in force), 49, 50 (not in force) Canada Oil and Gas Land Regulations, C.R.C. c. 1518 as amended SOR/80-590; SOR/82-663; SOR/89-144 DESCRIPTION: Investment Canadian legislation contains certain qualifications for holders of oil and gas production licenses for discoveries made after March 5, 1982. These qualifications ensure that holders of such licenses, or shares therein, are Canadian citizens ordinarily resident in Canada, permanent residents or corporations incorporated in Canada. Notwithstanding qualification to hold a production license, no production license shall be issued for discoveries made after March 5, 1982 unless the Minister of Energy, Mines and Resources is satisfied that the Canadian ownership rate of the interest-owner in relation to the production license on the date of issuance would not be less than 50%. "Interest-owner" is defined in the Canada Petroleum Resources Act to mean "an interest holder who holds the interest or a group of interest holders who hold all the shares of the interest". With respect to production licenses for discoveries made prior to March 5, 1982, the Canadian ownership requirements are as set out in the Canada Oil and Gas Land Regulations. These qualifications and Canadian ownership requirements are in respect of production licenses issued on "frontier lands" and the "offshore areas" (areas not under provincial jurisdiction) as defined in the legislation. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Uranium INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c. 28, as amended by S.C.1988, c.65 Investment Canada Regulations, SOR/85- 611 as amended by SOR/189-69 An Act to Amend the Investment Canada Act, (Bill C-89, introduced in Parliament on 18 June 1992) Policy on Non-resident Ownership in the Uranium Mining Sector, 1987 DESCRIPTION: Investment Non-resident ownership of a uranium mining property is limited to 49% at the stage of first production. Exceptions to this limit may be permitted if it can be established that the property is in fact Canadian-controlled as defined in the Investment Canada Act. Exemptions from the policy are allowed, subject to Cabinet approval, only in cases where Canadian participants in the ownership of the property cannot be found. Investments in properties by "non-Canadians", as defined in the Investment Canada Act, prior to December 23, 1987, beyond the permitted ownership level, are allowed to remain in place; however no increase in non-Canadian ownership is permitted. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Fisheries SUB-SECTOR: Fish Harvesting and Processing INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Coastal Fisheries Protection Act, R.S.C. 1985, c. C-33 as amended by R.S.C. 1985, c. 31 (1st Supp.); R.S.C. 1985, c. 39 (2nd Supp.); S.C. 1990, c. 44 Fisheries Act, R.S.C. 1985, c. F-14 as amended by R.S.C. 1985, c. 31 (1st Supp.); R.S.C. 1985, c. 35 (1st Supp.); R.S.C. 1985, c. 40 (4th Supp.); S.C. 1990, c. 16; S.C. 1990, c. 17 Policy on Foreign Investment in the Canadian Fisheries Sector, 1985 Commercial Fisheries Licensing Policy Coastal Fisheries Protection Regulations, C.R.C., 1978, c. 413 DESCRIPTION: Investment Under the Coastal Fisheries Protection Act, "foreign" fishing vessels are prohibited from entering Canada's 200 mile fishing zone except under authority of a license or under treaty. "Foreign" vessels are those which are not "Canadian" as defined in the Coastal Fisheries Protection Act. Under the Fisheries Act, The Minister of Fisheries and Oceans has a discretionary authority with respect to the issuance of licenses. Fish processing companies which have a foreign ownership level of more than 49% are prohibited from holding Canadian commercial fishing licenses. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Fisheries SUB-SECTOR: Fishing-Related Services INDUSTRY CLASSIFICATION: SIC 032 Services Incidental to Fishing TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Coastal Fisheries Protection Act, R.S.C., 1985, c. C-33 DESCRIPTION: Cross-Border Services Under the Coastal Fisheries Protection Act, the Department of Fisheries and Oceans is responsible for controlling the activities of foreign fishing vessels in Canada's Exclusive Fisheries Zone (EFZ), including access to Canadian ports (port privileges). In general, the Department grants such port privileges, including the purchase of fuel and supplies, ship repair, crew exchanges and transshipment of fish catches, only to fishing vessels from countries with which it has favorable fishery relations, based primarily on adherence by the foreign country to Canadian and international conservation practices and policies. Exceptions to this general rule are allowed in cases of emergency ("force majeure") and where the specific provisions of bilateral fisheries treaties apply. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Government Finance SUB-SECTOR: Securities INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Financial Administrative Act, R.S.C., 1985, Chap. F-11 and annual Orders-in- Council DESCRIPTION: Investment Canada Savings Bonds are issued annually pursuant to the Financial Administration Act. Terms and conditions are set by Orders-in- Council. Sale of Canada Savings Bonds is restricted to individuals who are Canadian nationals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most Favored Nation Treatment (Article 1103) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: National Transportation Act, 1987, R.S.C. 1985, c. 28 (3rd Supp.), as amended by R.S.C. 1985, c. 29 (3rd Supp.); R.S.C. 1985 c. 19 (4th Supp.); R.S.C. 1985, c. 32 (4th Supp.) Aeronautics Act, R.S.C. 1985, c. A-2 as amended by R.S.C.1985, c. 33 (1st Supp.); R.S.C. 1985, c. 28 (3rd Supp.) Air Regulations, C.R.C. 1978, c. 2 Aircraft Marking and Registration Regulations, SOR/90-591, as amended by SOR/91-504 DESCRIPTION: Investment The following "commercial air services" are reserved to Canadian air carriers or operators: domestic air transportation services (cabotage); international scheduled air transportation services reserved by bilateral agreements to Canadian airlines; and international non-scheduled air transportation services between Canada and a country other than a foreign air carrier's state of registry ("fifth freedom charters"). For specialty air services, see Schedule of Canada, Annex I, p.I-C-42 and Schedule of Canada, Annex II, p.II-C-9. Only qualified persons may provide commercial air services reserved to Canadian air carriers or operators. Non-Canadian investment in voting stock of enterprises providing commercial air services that are reserved to Canadian air carriers or operators is limited to 25% or to a lesser percentage where control in fact of the enterprise is otherwise considered not to be held by Canadians. Non-Canadians are not permitted, through voting interests or other forms of investment, to control Canadian air carriers or operators. Aircraft other than state aircraft may only be registered in Canada by qualified persons. Aircraft not registered in Canada are limited by regulation concerning the period during which they may be operated in Canada by Canadians. A qualified person is a Canadian citizen or permanent resident, or a corporation incorporated by or under the laws of Canada or a province and of which: (a) not less than 75 % of the voting interest is in fact owned and controlled by Canadian citizens or permanent residents or by a corporation meeting the requirements on Canadian ownership and control; (b) not less than 2/3 of its directors are Canadian citizens or permanent residents; (c) the executive head is a Canadian citizen or permanent resident; and (d) the principal place of business is in Canada. A corporation incorporated by or under the laws of Canada or a province but that does not meet the Canadian ownership and control requirements may only register a private aircraft when the corporation is the sole owner and subject to other limitations and requirements of the Air Regulations. The Air Regulations also have the effect of limiting "non-Canadian" corporations operating foreign registered private aircraft within Canada to the carriage of their own employees. A "non-Canadian" corporation is a corporation which does not meet the Canadian ownership and control requirements. All commercial air services operating in Canada require a Canadian operating certificate to ensure their safety and security. An operating certificate authorizing the provision of commercial air services reserved to Canadian operators or air carriers is only issued to qualified persons. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 4513 Non-Scheduled Air Transport, Specialty Industry TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Aeronautics Act, R.S.C., 1985, c. A-2, section 4.2 Air Regulations, C.R.C., Vol. I, c. 2, sections 700 and 702 Air Regulations Series 2, No. 2 (Aircraft Marking and Registration Regulations), SOR/90-591, section 19 DESCRIPTION: Cross-Border Services and Investment 1. A person requires a Canadian operating certificate issued by the Department of Transport to provide specialty air services in the territory of Canada. The Department of Transport will issue an operating certificate to a person applying for authority to provide such services, subject to compliance by such person with Canadian safety requirements. 2. Such operating certificate for the provision of aerial construction, heli-logging, aerial inspection, aerial surveillance, flight training, aerial sightseeing, and aerial spraying services is not issued to a person that is not "Canadian" as defined in the applicable regulations (a Canadian national or a corporation incorporated and having its principal place of business in Canada, its chief executive officer and not fewer than 2/3 of its directors as Canadian nationals, and not less than 75% of its voting interest owned and controlled by persons otherwise meeting these requirements). 3. A person of Mexico or of the United States may obtain an operating certificate, subject to compliance by such person with Canadian safety requirements, for the provision of aerial mapping, aerial surveying, aerial photography, forest fire management, fire-fighting, aerial advertising, glider towing and parachute jumping services. DURATION: Cross-Border Services Paragraph 3 of the Description shall govern upon entry into force of this Agreement. A person of Mexico or of the United States will be permitted to obtain an operating certificate, subject to compliance with Canadian safety requirements, for the provision of the following specialty air services: (a) two years after the entry into force of this Agreement, aerial construction and heli-logging services; (b) three years after the entry into force of this Agreement, aerial inspection, aerial surveillance, flight training, and aerial sightseeing services; and (c) six years after the entry into force of this Agreement, aerial spraying services. ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 4523 Aircraft Servicing Industry SIC 3211 Aircraft and Aircraft Parts Industry TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) Local Presence (1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Aeronautics Act, R.S.C., 1985, c. A-2, section 4.9 Air Regulations, Series 2, No.11 [ ] Airworthiness Manual, chapters 573 and 575 [ ] Agreement Concerning Airworthiness Certification, Exchange of Letters between Canada and the United States, dated August 31, 1984, CTS______. DESCRIPTION: Cross-Border Services Aircraft repair, overhaul and maintenance activities which are required to maintain the airworthiness of Canadian-registered aircraft must be performed by Canadian-certified persons. Such certifications are not provided for enterprises located outside Canada, except sub- organizations of approved maintenance organizations that are themselves located in Canada. Pursuant to an airworthiness agreement between Canada and the United States, Canada recognizes the certifications and oversight provided by the United States for all repair, maintenance and overhaul activities performed by U.S.- certified persons, including the individual performing the work, located in the United States. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Land Transportation INDUSTRY CLASSIFICATION: SIC 456 Truck Transport Industries SIC 4572 Interurban and Rural Transit Systems Industry SIC 4573 School Bus Operations Industry SIC 4574 Charter and Sightseeing Bus Services Industry TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEGAL CITATION: Motor Vehicle Transport Act, 1987, R.S.C., 1985, c. 29, (3rd Supp.), Parts I and II National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.), Part IV Customs Tariff, R.S.C., 1985, c. 41 (3rd Supp.), subsection 19(1) DESCRIPTION: Cross-Border Services Only persons of Canada, using Canadian-built or duty-paid trucks or buses, may provide truck or bus services between points in the territory of Canada. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Water Transport Industries SIC 4553 Marine Salvage Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c. S-9, sections 6 and 7 DESCRIPTION: Cross-Border Services and Investment To register a ship in Canada for the purpose of providing international maritime transportation services, the owner of the ship must be: (a) a Canadian citizen or a citizen of a Commonwealth country, or (b) a corporation incorporated under the laws of, and having its principal place of business in, Canada or a Commonwealth country. For domestic maritime transportation services (cabotage), see Schedule of Canada, Annex II, p.II-C-10. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Water Transport Industries SIC 4553 Marine Salvage Industry SIC 4554 Piloting Service, Water Transport Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c. S-9, Part II DESCRIPTION: Cross-Border Services Masters, mates, and engineers are required to be certified by the Department of Transport as ship's officers while engaged on a Canadian- registered vessel. Only Canadian nationals may be certified as ship's officers. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4554 Piloting Service, Water Transport Industry TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Pilotage Act, R.S.C., 1985, c. P-14 General Pilotage Regulations, C.R.C., Vol. XIII c. 1263 Atlantic Pilotage Authority Regulations, C.R.C. Vol. XIII, c. 1264 Laurentian Pilotage Authority Regulations, C.R.C., Vol. XIII, c. 1268 Great Lakes Pilotage Regulations, C.R.C., Vol. XIII, c. 1266 Pacific Pilotage Regulations, C.R.C., Vol. XIII, c. 1270 DESCRIPTION: Cross-Border Services A licence issued by the Department of Transport is required to provide pilotage services in Canada. Only Canadian citizens or permanent residents may obtain such licence. A permanent resident of Canada who has been issued a pilot's licence must become a Canadian citizen within five years of receipt of such licence in order to retain it. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 454 Water Transport Industry TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Shipping Conference Exemption Act, 1987, R.S.C., 1985, c.17 (3rd Supp.), section 18 DESCRIPTION: Cross-Border Services Members of a shipping conference shall maintain jointly an office or agency in the region of Canada where they operate. A shipping conference is an association of ocean carriers that has the purpose or effect of regulating rates and conditions for the transportation by such carriers of goods by water. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Coasting Trade Act, S.C., 1992, c. 31, subsection 3(5) DESCRIPTION: Cross-Border Services The prohibitions under the Coasting Trade Act set out in Schedule of Canada, Annex II, p. II-C-10 do not apply to any vessel that is owned by the U.S. Government when used solely for the purpose of transporting goods owned by the U.S. Government from the territory of Canada to supply Distant Early Warning sites. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Oil and Gas Operations Act (in force as of September 1, 1992) Hibernia Development Project Act DESCRIPTION: 1. The terms and conditions of government assistance for the Hibernia project require that certain goods and services be sourced in Newfoundland and in Canada and that the project operator undertakes, on a "best efforts" basis, to achieve specific Canadian and Newfoundland content levels. 2. In addition, Canada reserves the right to impose any requirement or enforce any commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a national or enterprise in Canada, in connection with the Hibernia project. DURATION: For purposes of this entry, paragraph 2 of the Description shall govern with respect to Canada's reservation to the obligations of Article 1106(1) (f). Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: Performance Requirements (Article 1106) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Oil and Gas Operation Act, (in force as of September 1, 1992) Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c.28 Canada-Newfoundland Atlantic Accord, S.C. 1987, c.3 Yukon Oil and Gas Accord (under negotiation) Northwest Territories Oil and Gas Accord (under negotiation) DESCRIPTION: 1. Under the Canada Oil and Gas Operations Act, the Minister of Energy, Mines and Resources requires the applicant to submit a "benefits plan". Approval of the benefits plan is required to receive authorization to proceed with any oil and gas development project. 2. A "benefits plan" means a plan for the employment of Canadians and for providing Canadian manufacturers, consultants, contractors and service companies with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in any proposed work or activity referred to in the benefits plan. The Act permits the Minister to impose an additional requirement on the applicant, as part of the benefits plan, to ensure that disadvantaged individuals or groups have access to training and employment opportunities or can participate in the supply of goods and services used in any proposed work referred to in the benefits plan. Similar provisions will be included in the Yukon and Northwest Territories Accords. 3. The Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada- Newfoundland Atlantic Accord Implementation Act have the same requirement for a "benefits plan" but also require that the "benefits plan" ensure that: (a) before carrying out any work or activity in the offshore area the corporation or other body submitting the plan shall establish in the Province an office where appropriate levels of decision-making are to take place; (b) expenditures shall be made for research and development to be carried out in the Province, and for education and training to be provided in the Province; and (c) first consideration shall be given to goods produced or services provided from within the Province, where those goods or services are competitive in terms of fair market price, quality and delivery. 4. The Boards administering the benefits plan under these Acts may also require that the plan include provisions to ensure that disadvantaged individuals or groups or corporations owned or cooperatives operated by them participate in the supply of goods and services used in any proposed work or activity referred in the benefits plan. 5. In addition, Canada reserves the right to impose any requirement or enforce any commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a national or enterprise in Canada, in connection with the approval of development projects under the Acts cited above. DURATION: For purposes of this entry, paragraph 5 of the Description shall govern with respect to Canada's reservation to the obligations of Article 1106(1) (f). For purposes of this entry, the Yukon Oil and Gas Accord and the Northwest Territories Oil and Gas Accord shall be deemed to be existing measures, upon completion of their negotiation. Indeterminate ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). TĦtulo I CapĦtulo I. Ley de Nacionalidad y Naturalizaci˘n (Nationality and Naturalization Law). CapĦtulo VI (Disposiciones generales) Ley Org nica de la Fracci˘n I del ArtĦculo 27 de la Constituci˘n (Organic Law of the First Section of Article 27 of the United Mexican States Political Constitution). Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). CapĦtulos I y IV (Objeto y Fideicomisos en frontera y litorales) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). TĦtulo III CapĦtulo I y TĦtulo III CapĦtulo III. (Inversi˘n extranjera mediante fideicomisos) DESCRIPTION: Investment Foreigners and foreign enterprises, as defined in the Constituci˘n PolĦtica de los Estados Unidos Mexicanos; and Mexican enterprises without a foreigners' exclusion clause may not acquire "direct dominion" (dominio directo) over land and water in a 100 kilometers strip along the country's borders or in a 50 kilometers strip inland from its coasts (the Restricted Zone). Nevertheless, foreigners, foreign enterprises and Mexican enterprises may acquire "Certificados de Participaci˘n Ordinaria" (CPO's). Such CPO's grant to the beneficiaries the right to use and enjoy the real estate and to receive the profits that it may obtain from the profitable use of the property. The CPO's are issued by a Mexican credit institution that has been granted authorization to acquire through trust the title to real estate intended for industrial and tourist activities in the Restricted Zone for a period not to exceed 30 years. The trust is renewable if: (a) The beneficiaries of the trust which is to be extinguished or terminated will be beneficiaries of the new trust; (b) the new trust is to be executed under the same terms and conditions as the trust which is to be extinguished or terminated, in respect of the purposes of the trust, the use of real estate and its characteristics; (c) the respective permits are requested within a period of 360 to 181 days prior to the trust be extinguished or terminated; and (d) the provisions of the Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera and its regulations are observed. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment The Comisi˘n Nacional de Inversiones Extranjeras in order to evaluate the applications submitted to its consideration (acquisitions or establishment of investments in restricted activities as set out in this Schedule), shall take into account the following criteria: (a) Its effects on employment and training; (b) Its technological contribution; (c) In general its contribution to increase the Mexican industrial production and competitiveness. The Comisi˘n Nacional de Inversiones Extranjeras may impose performance requirements which are not prohibited by Article 1106 of the Investment Chapter. DURATION: Description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Mexico will review the acquisition, whether directly or indirectly, of more than 49% of the ownership interest of a Mexican enterprise in an unrestricted sector, that is owned or controlled by Mexican nationals, directly or indirectly, by an investor of another Party if the value of the gross assets of the Mexican enterprise is not less than the applicable thresholds, effective on the date of entry into force of this Agreement and adjusted on each anniversary thereof. The calculation of the applicable review thresholds is set out in the following section below. DURATION: Description shall govern upon entry into force of this Agreement. The basis for calculating the threshold will be: (a) USD 25 million, for the three year period commencing on the date of entry into force of this Agreement; (b) USD 50 million, for the three year period commencing on the fourth year after the date of entry into force of this Agreement; (c) USD 75 million, for the three year period commencing on the seventh year after the entry into force of this Agreement; (d) USD 150 million, for the tenth year after entry into force of this Agreement. Beginning with the Agreement's second year these thresholds shall be adjusted for cumulative inflation based on the US GDP price deflator from the date of entry into force of this Agreement. Beginning with year eleven after entry into force of this Agreement, the threshold will be adjusted for growth in nominal Mexican GDP--but in no case will the threshold to be applied exceed that of Canada. ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley General de Sociedades Cooperativas (General Law of Cooperative Companies). TĦtulo I CapĦtulo I y TĦtulo II CapĦtulo II DESCRIPTION: Investment No more than 10 percent of the persons participating in a Mexican Cooperative Production enterprise may be foreigners. Foreigners cannot engage in general administrative functions. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal para el Fomento de la Microindustria (Law to Promote the Microindustry). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may qualify as microindustry enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Agriculture, Livestock, Forestry, and Lumber Activities SUB-SECTOR: Agriculture, Livestock or Forestry INDUSTRY CLASSIFICATION: CMAP 1111 Agriculture CMAP 1112 Livestock CMAP 120011 Forestry CMAP 120012 Exploitation of Forest Nurseries CMAP 120030 Collection of Forest Products CMAP 120040 Falling Trees TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley Agraria (Agrarian Law). TĦtulo VI, DESCRIPTION: Investment All enterprises constituted in Mexico which own land for agriculture, livestock or forestry purposes, must issue a special type of shares ("T" shares) which represent the value of the aforementioned land at the time of its acquisition. Investors of another Party and their investments may own up to 49 percent of such "T" shares. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting and Multipoint Distribution Systems, (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Repetition of Television Programming (Limited to Production, Transmission and Repetition of Television Programs, MDS, Direct Broadcasting Systems, and High Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi˘n (Radio and Television Federal Law), TĦtulo IV (Funcionamiento), CapĦtulo III (Programaci˘n) Reglamento de la Ley Federal de Radio y Televisi˘n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi˘n (Regulations of the Radio and Television Federal Law and Motion Picture Industry Law relating to Radio o Television Content), TĦtulo III (Programaci˘n) Reglamento del Servicio de Televisi˘n por Cable, (Cable Television Regulations) CapĦtulo VI (Programaci˘n) DESCRIPTION: Cross-Border Services For the protection of copyrights a holder of a concession for a commercial broadcast station or for a cable television system in Mexico is required to obtain an authorization from the SecretarĦa de Gobernaci˘n to import in any form radio or television programming for broadcast or cable distribution of such programming within Mexico. The authorization will be granted if the request includes documentation showing that the foreign government, sponsoring international organization, or the private entrepreneur or organizer has granted the license ("derechos") to retransmit or distribute by cable such program. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to cable television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos(United Mexican States Political Constitution), Article 32 Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Libro I CapĦtulo III (Concesiones, Permisos y Contratos) Ley Federal de Radio y Televisi˘n (Radio and Television Federal Law), TĦtulo III, (Concesiones, Permisos e Instalaciones) Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento del Servicio de Televisi˘n por Cable (Cable Television Regulations), CapĦtulo II (Concesiones) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. A concession granted by the SecretarĦa de Comunicaciones y Transportes is required to construct and operate, or to operate, cable television systems. Such concession is granted only to Mexican nationals or Mexican enterprises. Investment: 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico which owns or operates a cable television systems or provides cable television services. DURATION: Cross-Border Services Indeterminate. Investment Paragraph 2 of the description shall govern upon entry into force of this Agreement; subject to discussion by the Parties five years after the entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services INDUSTRY CLASSIFICATION: CMAP 941103 Private Exhibition of Films (cinema) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de la Industria Cinematogr fica (Motion Picture Industry Law) Reglamento de la Ley de la Industria Cinematogr fica (Regulations of the Motion Picture Industry) DESCRIPTION: Cross-Border Services and Investment On an annual basis, 30 percent of the screen time of every theater may be reserved for films produced, either within or outside Mexico, by Mexican enterprises. DURATION: The description shall govern upon entry into force of this Agreement. Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Production, Transmission and Retransmission of Television Programs, MDS, Direct Broadcasting Systems, High-Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi˘n, (Radio and Television Federal Law), TĦtulo IV (Funcionamiento), CapĦtulo III (Programaci˘n) Reglamento de la Ley Federal de Radio y Televisi˘n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi˘n (Regulation of Radio and Television Federal Law and Regulations of the Motion Picture Industry Law relating to Broadcasting Content), TĦtulo III (Programaci˘n) Reglamento del Servicio de Televisi˘n por Cable (Cable Television Regulations), CapĦtulo VI (Programaci˘n) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language is required for the broadcast, cable or multipoint-distribution-system distribution of radio or television programming, except when the SecretarĦa de Gobernaci˘n authorizes the use of another language. A majority of personnel involved in the production and performance of a live broadcast programming activity must be Mexican nationals. To perform in Mexico, a radio and television announcer or presentor who is not a Mexican national must obtain an authorization from the SecretarĦa de Gobernaci˘n. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, and Multipoint Distribution Systems and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Broadcasting, Cable Television and Multipoint Distribution Systems) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi˘n, (Radio and Television Federal Law), TĦtulo IV (Funcionamiento), CapĦtulo III (Programaci˘n) Reglamento de la Ley Federal de Radio y Televisi˘n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi˘n (Regulations of the Radio and Television Federal Law and Regulation of the Motion Picture Industry Law relating to Broadcasting Content), TĦtulo III (Programaci˘n) Reglamento del Servicio de Televisi˘n por Cable, (Cable Television Regulations), CapĦtulo VI (Programaci˘n) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language or Spanish subtitles is required for advertising broadcast or distributed in Mexico. Advertising included in programs transmitted directly from outside Mexico may not be broadcast in such programs when they are retransmitted or distributed in Mexico DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Telecommunications (Enhanced or Value-Added Services) INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecomunications Services (Limited to Enhanced or Value-Added Services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Libro Primero, CapĦtulo III (Concesiones, Permisos y Contratos) Reglamento de Telecomunicaciones (Telecommunications Regulations), CapĦtulo 4, (Permisos) Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-border Services 1. A provider of enhanced or value-added services must obtain a permit issued by the SecretarĦa de Comunicaciones y Transportes. 2. Persons of Canada or the United States may provide all enhanced or value-added services, except videotext or enhanced packet switching services, without the need to establish local presence. 3. Videotext and enhanced packet switching services may not be provided on a cross-border basis. Investment 1. Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides any telecommunication enhanced or value-added service, other than videotext or enhanced packet switching services. 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. DURATION: Cross-border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, a person of Canada or the United States may provide videotext or enhanced packet switching services without the need to establish a local presence in Mexico. Investment Paragraph 1 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Transport Telecommunications General Means of Communication INDUSTRY CLASSIFICATION: CMAP 7200 Communications CMAP 7100 Transport CMAP 9411 Radio and Television TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) Ley Federal de Radio y Televisi˘n, (Radio and Television Federal Law) Reglamento del Servicio de Televisi˘n por Cable (Cable Television Regulations) Reglamento de Telecomunicaciones (Telecommunications Regulations) DESCRIPTION: Investment Foreign Governments and Foreign state enterprises or their investments may not invest, directly or indirectly, in a Mexican enterprise providing services related to the general means of communication set out herein. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Construction SUB-SECTOR: INDUSTRY CLASSIFICATION: CMAP 501101 Residential or Housing Construction CMAP 501102 Non-residential Construction CMAP 501200 Construction of Urbanization Projects CMAP 501311 Construction of Industrial Plants CMAP 501312 Construction of Electricity Generation Plants CMAP 501321 Construction and Maintenance of Electricity Conduction Lines and Networks CMAP 501411 Mounting or Installing Concrete Structures CMAP 501412 Mounting or Installing Metallic Structures CMAP 501421 Marine and River Works CMAP 501422 Construction of Routes for Land Transportation CMAP 502001 Hydraulic and Sanitation Installations in Buildings CMAP 502002 Electrical Installations in Buildings CMAP 502003 Telecommunications Installations CMAP 502004 Other Special Installations CMAP 503001 Earth Movement CMAP 503002 Cement Works CMAP 503003 Underground Excavations CMAP 503004 Underwater Works CMAP 503005 Installation of Signs and Warnings CMAP 503006 Demolition CMAP 503007 Construction of Water Purification or Treatment Plants CMAP 503009 Drilling Water Wells CMAP 503010 Construction Activities not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment), CapĦtulos II y III Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Prior approval of the Comisi˘n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico that carry out construction activities as set out in the classification mentioned above. DURATION: Five years after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of such enterprises without Comisi˘n Nacional de Inversiones Extranjeras' prior approval. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Construction SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 503008 Exploration and drilling works and services done by specialized contractors excluding the case when these same works and services are done by personnel of PEMEX in the activities classified under industrial classification 220000. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), TĦtulo I CapĦtulo I. Ley Reglamentaria del ArtĦculo 27 Constitucional en el Ramo del Petr˘leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution in matters related with Petroleum) Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) CapĦtulo I Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Risk-sharing services contracts are prohibited. Prior approval of the Comisi˘n Nacional de Inversiones Extranjeras is required for investors of another Party and their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico involved in "non-risk sharing" service contracts for the drilling of petroleum and gas wells. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Educational Services SUB-SECTOR: Private Schools INDUSTRY CLASSIFICATION: CMAP 921101 Preschool Private Educational Services CMAP 921102 Primary School Private Educational Services CMAP 921103 Secondary School Private Educational Services CMAP 921104 Middle High School Private Educational Services CMAP 921105 Higher Private Educational Services CMAP 921106 Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher Instruction TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley Para la Coordinaci˘n de la Educaci˘n Superior (Law for the Coordination of the Higher Education), CapĦtulo II Ley Federal de Educaci˘n (Education Law), CapĦtulo III DESCRIPTION: Investment Prior approval of the Comisi˘n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico that operates educational services as set out in the classification mentioned above. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 623050 Retail Sales of Gas of liquified petroleum gas (LPG), including the installation of fixed deposits when the facilities are built by the same establishment. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del ArtĦculo 27 Constitucional en el Ramo del Petr˘leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). CapĦtulo I Reglamento de la Ley Reglamentaria del ArtĦculo 27 Constitucional en el Ramo de Petr˘leo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Distribuci˘n de Gas.(Regulations of the Distribution of LPG). CapĦtulos I y II (Autorizaciones y permisos) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may engage in the distribution of liquified Petroleum gas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 6260000 Retail Outlets of Gasoline and Diesel. Includes Lubricants, Oils and Additives for Resale in these Retail Outlets. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del ArtĦculo 27 Constitucional en el Ramo del Petr˘leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Ley Reglamentaria del ArtĦculo 27 Constitucional en el Ramo del Petr˘leo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). DESCRIPTION: Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may acquire, establish and operate retail outlets engaged in the resale of gasoline, diesel, lubricants, oils and additives. DURATION: The description shall govern upon entry into force of this Agreement ============================================================================= ANNEX I Schedule of Mexico SECTOR: Fishing SUBÄSECTOR: Fishing INDUSTRY CLASSIFICATION: CMAP 130011 Fishing on the High Seas CMAP 130012 Coastal Fishing CMAP 130013 Fresh Water Fishing CMAP 130014 Fishing in the Economic Exclusive Zone TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Pesca (Fishing Law) CapĦtulo I. Ley de Navegaci˘n y Comercio MarĦtimo (Navigation and Maritime Commerce Law), Libro II TĦtulo Unico CapĦtulo V Ley Federal del Mar (Federal Sea Law) Ley Federal de Aguas (Federal Law of Water) Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment With respect to enterprises established or to be established in Mexico performing coastal fishing, fresh water fishing and fishing in the exclusive economic zone, investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of such enterprises. With respect to enterprises established or to be established in Mexico performing fishing on the high seas, prior approval of the Comision Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of enterprises established or to be established in Mexico performing fishing on the high seas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacturing and Assembly of Goods SUB-SECTOR: Auto Parts Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks Motors and Their Parts CMAP 384123 Manufacture of Car and Truck Transmission System Parts CMAP 384124 Manufacture of Car and Truck Suspension System Parts CMAP 384125 Manufacture of Car and Truck Brake System Parts and Accessories CMAP 384126 Manufacture of Other Car and Truck Parts and Accessories TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Industry Sector) of this Agreement. Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). Decreto para el fomento y modernizaci˘n de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree"). Decreto que Determina Reglas para la Aplicaci˘n del Decreto para el Fomento y Modernizaci˘n de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations"). DESCRIPTION: Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownwership interests of an enterprise established or to be established in Mexico and engaged in the auto parts industry. Investors of another Party and their investments that qualify as "national suppliers" may own 100% of an enterprise established or to be established in Mexico engaged in the manufactured of specified auto parts. To qualify as "national supplier", the enterprise must: (a) obtain a national value added calculated as set out in the "Auto Decree Implementing Regulations" of at least 20%; and (b) not be controlled or related, directly or indirectly, to a manufacturer of motor vehicles. DURATION: Annex 300-A (Trade and Investment in the Automotive Sectors) of Chapter Three (National Treatment and Market Access) shall govern. Commencing on the sixth year after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in auto parts industry. (See also page I-M-39 of this Schedule - performance requirements) ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Automotive Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 3841 Automotive Industry. CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks Motors and Their Parts CMAP 384123 Manufacture of Car and Truck Transmission System Parts CMAP 384124 Manufacture of Car and Truck Suspension System Parts CMAP 384125 Manufacture of Car and Truck Brake System Parts and Accessories CMAP 384126 Manufacture of Other Car and Truck Parts and Accessories TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) of this Agreement Decreto para el fomento y modernizaci˘n de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree") Decreto que Determina Reglas para la Aplicaci˘n del Decreto para el Fomento y Modernizaci˘n de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations") DESCRIPTION: Investment Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern. A summary of performance requirements in the automotive industry follows: (a) National value added shall constitute at least 20% of the total value of sales of an enterprise of the autoparts industry or of a "National Supplier". In calculating the national value added, custom duties shall be included in the value of imports. (b) A manufacturer of motor vehicles must attain specified levels of national value added from suppliers of Mexican parts (enterprises of the autoparts industry and national suppliers) and must comply with specified trade balance requirements in order to receive permits for the importation of new motor vehicles. (c) Manufacturers of autotransportation vehicles may only import the types of autotransportation vehicles it produces in Mexico and in a quantity not exceed 50% of the number of such vehicles it produces in Mexico in a year. DURATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern upon entry into force of this Agreement Commencing on the sixth year after entry into force of this Agreement Mexico will eliminate restrictions on the number of an autotransportation vehicles that a manufacture autotransportation vehicles may import. Commencing on the eleventh year after the entry into force of this Agreement, Mexico will eliminate all performance requirements in the Auto Decree and the "Auto Decree Implementing Regulations". ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Maquiladora Industry INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera (Customs Law) Decreto para el Fomento y Operaci˘n de la Industria Maquiladora de Exportaci˘n (Decree for the Promotion and Operation of Maquiladora Industry for Export) DESCRIPTION: Investment Persons authorized by the SecretarĦa de Comercio y Fomento Industrial to operate under the "Maquiladora Decree" may not sell to the domestic market more than 50% of the total value of its exports. DURATION: Domestic market may not exceed: (a) during the first year of entry into force of this Agreement, 55% of the total value of its exports; (b) during the second year after the date of entry into force of this Agreement, 60% of the total value of its exports; (c) during the third year after the date of entry into force of this Agreement, 65% of the total value of its exports; (d) during the fourth year after the date of entry into force of this Agreement, 70% of the total value of its exports; (e) during the fifth year after the date of entry into force of this Agreement, 75% of the total value of its exports; (f) during the sixth year after the date of entry into force of this Agreement, 80% of the total value of its exports; (g) during the seventh year after the date of entry into force of this Agreement, 85% of the total value of its exports; (h) from the eighth year after the date of entry into force of this Agreement and thereafter, persons may not be subject to this requirement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del ArtĦculo 131 de la Constituci˘n PolĦtica de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act) Decreto para el Fomento y Operaci˘n de las Empresas Altamente Exportadoras" (Decree for the Promotion and Operation of High-Export Firms) DESCRIPTION: Investment 1. "Direct exporters" authorized by the SecretarĦa de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 40% of their total sales or $2,000,000. U.S. dollars. 2. "Indirect exporters" authorized by the SecretarĦa de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 50% of their total sales. DURATION: Seven years after the entry into force of this Agreement, direct and indirect exporters will not be subject to the above mencioned percentage. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del ArtĦculo 131 de la Constituci˘n PolĦtica de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act). Ley Aduanera (Customs Law). Programa de Importaci˘n Temporal para Producir ArtĦculos de Exportaci˘n (Temporal Import Program to Produce Export Goods). DESCRIPTION: Investment Persons authorized by SecretarĦa de Comercio y Fomento Industrial to operate under the "PITEX Decree" are required to: (a) export at least 30% of their total production for the temporary entry of machinery, equipment, instruments, molds and durable tools used in the manufacturing process; equipment used to handle materials directly related to exported such goods; and research, industrial security, quality control, communication, training personnel, computer and environmental devices, equipment and accessories or others related with the process of the goods exported. (b) export at least 10% of their total production or $500,000 U.S.dollars for the temporary import of raw materials, parts and components totally used as inputs on the export merchandise, packages, bottles, containers and trailer's containers which are fully used to contain export merchandise; fuel, lubricants, auxiliary materials, reparation of tools and equipment consumed in the export process. DURATION: As from the eighth year after the date of entry into force of this Agreement such persons will not be subject to the above mentioned percentages. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacturing Industry SUB-SECTOR: Artificial explosives, fireworks, firearms and cartridges INDUSTRY CLASSIFICATION: CMAP 352236 Manufacturing of Artificial Explosives and Fireworks CMAP 382208 Manufacturing of Firearms and Cartridges TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y Explosivos (Federal Law of Firearms and Explosives) TĦtulo III CapĦtulo I Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Federal de Armas de Fuego y Explosivos (Regulations of the Federal Law of Firearms and Explosives) CapĦtulo IV Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that manufacture artificial explosives and fireworks, and ammunition as set out in the classification mentioned above. Foreigners cannot appoint directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Mining SUB-SECTOR: Extraction and Exploitation of Minerals INDUSTRY CLASSIFICATION: CMAP 210000 Exploitation of Mineral Carbon CMAP 231000 Extraction of Minerals Containing Iron CMAP 232001 Extraction of Minerals Containing Gold, Silver and Other Precious Minerals and Metals CMAP 232002 Extraction of Mercury and Antimony CMAP 232003 Extraction of Industrial Minerals Containing Lead and Zinc CMAP 232004 Extraction of Minerals Containing Copper CMAP 232006 Extraction of Other Metallic Minerals Not Containing Iron CMAP 291001 Extraction of Sand and Gravel CMAP 291002 Extraction of Marble and other Gravels for construction CMAP 291003 Exploitation of Feldspar CMAP 291004 Extraction of Kaolin, Clay and Refractory Minerals CMAP 291005 Extraction of Limestones CMAP 291006 Exploitation of Gypsum CMAP 292001 Extraction of Barium Oxide CMAP 292002 Extraction of Phosphoric Rock CMAP 292003 Extraction of Fluorite CMAP 292004 Extraction of Sulphur CMAP 292005 Extraction of Other Minerals in Order to Obtain Chemicals CMAP 292006 Extraction of Salt CMAP 292007 Extraction of Graphite CMAP 292008 Extraction of other Non Metallic Minerals TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Minera (Mining Law) Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Minera (Mining Law Regulations) Reglamento de la Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Prior approval of the Comisi˘n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in the extraction or exploitation of all kind of minerals. DURATION: The description shall govern upon the entry into force of this Agreement. Commencing on the sixth year after the entry into force of this Agreement investors of another Party and their investments may own 100 percent of ownership interests of an enterprise established or to be established in Mexico engaged in such activities. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Printing, Editing and Associated Industries SUB-SECTOR: Newspaper Publishing INDUSTRY CLASSIFICATION: CMAP 342001 Newspaper Publishing TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico engaged in the simultaneous printing and distribution in Mexico of a daily newspaper that is published outside of Mexico. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico engaged in the publication of daily newspapers written primarily for a Mexican audience and distributed in Mexico. For purposes of this reservation, daily newspapers are those published at least five days a week. DURATION: The description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Other Services Provider by natural persons SUB-SECTOR: Medical Doctors INDUSTRY CLASSIFICATION: CMAP 9231 Private Medical, Odontological and Veterinary Services (limited to medical and odontological services) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal del Trabajo (Federal Labor Law) DESCRIPTION: Cross-Border Services Only Mexican nationals licensed as doctors in Mexico may provide medical in-house services in Mexican enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provider by natural persons SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: CMAP 951012 Custom Brokers and Representation Agency Services (limited to shippers' export declarations) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera, (Customs Law) CapĦtulo Unico, TĦtulo Noveno DESCRIPTION: Cross-Border Services A shipper's export declaration must be processed by a Mexican national licensed as a customs broker (agente aduanal) or by the representative (apoderado aduanal) employed by the exporter and authorized by the SecretarĦa de Hacienda y Cr‚dito P£blico for this purpose. DURATION: Indeterminate; subject to discussion by the Parties five years after the entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Other Services Provider by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 9510 Professional, Technical and Specialized Services (limited to Professional Services) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley Reglamentaria del ArtĦculo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal y sus regulaciones (Regulatory Law of Article 5 of the United Mexican States Political Constitution in relation to Professional Services and its regulations) CapĦtulo III, Secci˘n Tercera, CapĦtulos IV y V Equivalent State Laws Ley General de Poblaci˘n (General Population Law) CapĦtulo III DESCRIPTION: Cross-Border Services Only Mexican nationals may be licensed at the federal level, in the Distrito Federal, and in the States of Baja California Sur, Colima, Chihuahua, Durango, Jalisco, Estado de M‚xico, Morelos, Nayarit, Nuevo Le˘n, Puebla, Quer‚taro, Sonora, Tabasco and Veracruz in professions that require a "c‚dula professional". Only a permanent resident (inmigrado or inmigrante) in Mexico may be granted a waiver of the citizenship requirement by the Supreme Court to be licensed as a professional at the federal level. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. With respect to legal services see Mexico's Schedule in Annex II, p. M- 10. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951002 Legal Services and Foreign Legal Consultants TYPE OF RESERVATION: National Treatment (Article 1102 and 1202) Most-Favored-Nation Treatment (Articles 1103 and 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley Reglamentaria del ArtĦculo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal (Regulatory Law of Article 5' of the United Mexican States Political Constitution in relation to Professional Services), CapĦtulo I, CapĦtulo III, Secci˘n Tercera Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross Border Services and Investment Except as provided for in this reservation, only lawyers licensed in Mexico may have an ownership interest in a law firm established in Mexico. Lawyers licensed in a Canadian province that allows partnerships between lawyers licensed in that province and lawyers licensed in Mexico, will be permitted to form partnerships with lawyers licensed in Mexico. The number of lawyers licensed in Canada serving as partners, and their ownership interest in the partnership, shall not exceed the number of lawyers licensed in Mexico serving as partners, and their ownership interest in the partnership. A lawyer licensed in Canada shall not be allowed to practice or advise on Mexican law. A law firm established in Mexico resulting from the partnership of lawyers licensed in Canada and lawyers licensed in Mexico may hire lawyers licensed in Mexico as employees. Lawyers licensed in Canada will be subject to the regime for foreign legal consultants established in page M-2 of Schedule VI. DURATION: The description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951003 Accounting and Auditing Services (limited to accounting services) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: C˘digo Fiscal de la Federaci˘n, (Federal Tax Code), TĦtulo Tercero, CapĦtulo Unico Reglamento del C˘digo Fiscal de la Federaci˘n, (Regulations of the Federal Tax Code) Reglamento de la Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services Only Mexican nationals who are licensed as accountants in Mexico are authorized to perform audits for tax purposes on behalf of the following: (a) state enterprises, (b) enterprises that are authorized to receive tax-deductible donations, (c) enterprises with income, capital stock, number of employees, and operations above levels specified annually by the SecretarĦa de Hacienda y Cr‚dito P£blico, or (d) enterprises undergoing a merger or divestiture. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 951001 Notary Public (limited to Corredores P£blicos) TYPE OF RESERVATION: National Treatment (Articles 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: C˘digo de Comercio (Commerce Code), Libro Primero, TĦtulo Tercero Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. Only a Mexican by birth may be licensed to be a commercial notary public. 2. A commercial notary public may not have any business affiliations with any person to provide commercial notary public services. DURATION: 1. Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. 2. Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 951001 Notary Public TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley del Notariado del Distrito Federal (Notary Law of the Federal District, and its equivalents at state laws) Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services and Investment Only Mexicans by birth may be licensed to be notaries public. A notary public may not have any business affiliations with any person to provide notary public services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 923121 Private Veterinary Services to Cattle TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal, State and Local LEGAL CITATION: Reglamento de Control de Productos QuĦmico-Farmac‚uticos, Biol˘gicos, Alimenticios, Equipos y Servicios para Animales, (Chemical Products Control Regulations) CapĦtulos IV y V DESCRIPTION: Cross-Border Services Veterinarians responsible for enterprises managing chemical, pharmaceutical and biological goods for application to animals must be Mexican nationals. A Mexican national who is a licensed professional must be responsible for the laboratories of such enterprises. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Retail Commerce SUB-SECTOR: Sales of Non-Food Products in Specialized Establishment INDUSTRY CLASSIFICATION: CMAP 623087 Sales of Firearms, Cartridges and Ammunition CMAP 612024 Wholesale Commerce, not elsewhere Classified (limited to a firearms, cartridges and ammunition) TYPE OF RESERVATION: National Treatment (Article 1102) Senior Managment (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y Explosivos (Federal Law of Firearms and Explosives), TĦtulo Tercero, CapĦtulo I Reglamento de la Ley de Armas de Fuego y Explosivos (Regulation of the Federal Law of Firearms and Explosives), CapĦtulo IV Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own, directly and indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that sells firearms, cartridges and ammunition as set out in the classification mentioned above Foreigners cannot appoint or elect members to be directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Religious Services SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 929001 Religious Services TYPE OF RESERVATION: Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Asociaciones Religiosas y Culto Privado (Religious Associations Law). TĦtulo II, CapĦtulo II DESCRIPTION: Investment The representatives of the religious associations in Mexico must be Mexican nationals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Services to Agriculture and Cattle SUB-SECTOR: Services to Agriculture INDUSTRY CLASSIFICATION: CMAP 971010 Agriculture Services Supply TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, (United Mexican States Political Constitution) Article 32 Reglamento de la Ley de Sanidad Fitopecuaria (Regulation of the Phitosanitary Law), CapĦtulo VII DESCRIPTION: Cross-Border Services A concession granted by the SecretarĦa de Agricultura y Recursos Hidr ulicos is required to spray pesticides. Only Mexican nationals or Mexican enterprises may obtain such concession. DURATION: The requirement of a concession will be replaced with a permit requirement, and the citizenship requirement will be eliminated, in accordance with the schedule of liberalization for specialty air services. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 713001 Transportation Services on Mexican-Registered Aircraft CMAP 713002 Air Taxi Transportation Services TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera(Law to Promote Mexican Investment and to Regulate Foreign Investment), CapĦtulo I Reglamento de la Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera(Regulation of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley de VĦas Generales de Comunicaci˘n(General Means of Communications Law), Libro Cuarto, CapĦtulo I-XII DESCRIPTION: Investment Investors of another Party and their investments may own directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in Mexico that provides commercial air services. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such enterprises must be Mexican nationals. DURATION: Description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 973303 Specialty Air Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Libro Cuarto, CapĦtulo XII DESCRIPTION: Cross-Border Services 1. A permit issued by the SecretarĦa de Comunicaciones y Transportes (SCT) is required to provide all specialty air services in the territory of Mexico. 2. Such permit may be issued to a person of Canada and the United States to provide services related to flight training, forest fire-management, fire-fighting, glider towing, and parachute jumping in Mexico, subject to compliance with national safety rules. 3. Such permit may not be issued to a person of Canada or the United States to provide: aerial advertising, aerial sightseeing services, aerial construction, heli-logging, inspection (surveillance), mapping, photography, surveying and aerial spraying services. Investment Investors of another Party and their investments may own, directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in Mexico that provides specialty air services. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such enterprises must be Mexican nationals. DURATION: Cross-Border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. A person of Canada or the United States will be issued a permit by SCT to provide, subject to compliance with safety requirements, the following specialty air services: (a) three years after entry into force of the Agreement, aerial advertising, aerial sightseeing services, aerial construction and heli-logging. (b) six years after entry into force of this Agreement, inspection (surveillance), mapping, photography, surveying and aerial spraying services. Investment Description shall govern upon entry into force of this Agreement ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 384205 Aircraft Building, Assembly and Repair (limited to aircraft repair) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), ArtĦculo 32 Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Libro Cuarto, CapĦtulo XV Reglamento de Talleres Aeron uticos (Aeronautical Workshops Regulation) Article 8 DESCRIPTION: Cross-Border Services A concession granted by the SecretarĦa de Comunicaciones y Transportes is required to establish and operate an aircraft repair facility. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 973301 Air Navigation Services CMAP 973302 Airport and Heliport Administration Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), ArtĦculo 32 Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Libro Primero, CapĦtulo II y II, Libro Cuarto, CapĦtulo IX Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera(Law to Promote Mexican Investment and to Regulate Foreign Investment) Libro Primero, CapĦtulo II y III, Libro Cuarto, CapĦtulo IX Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera(Regulation of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services A concession granted by the SecretarĦa de Comunicaciones y Transportes is required to construct and operate, or operate, airports and heliports and to provide air navigation services. Only Mexican nationals and Mexican enterprises may obtain such concession. Investment Prior approval of the Comisi˘n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest of an enterprise established or to be established in Mexico engaged in the following activities: (a) construction and operation of airports or heliports; (b) operation of airports or heliports; or (c) provision of air navigation services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973101 Bus and Truck Station Administration and Ancillary Services (main bus and truck terminals and bus and truck stations) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Libro Primero, CapĦtulo II y III, Libro Segundo, TĦtulo Segundo, CapĦtulos I y II, TĦtulo Tercero, CapĦtulo Unico Reglamento para el Aprovechamiento del Derecho de VĦa de las Carreteras Federales y Zonas Aleda¤as (Regulations for the Use of the Right of Way of Federal Roads and their Adjacent Areas), CapĦtulos II y IV Reglamento del Autotransporte Federal de Pasajeros, (Regulations of the Federal Transport of Passengers), and 34 CapĦtulo IV DESCRIPTION: Cross-Border Services A permit issued by the SecretarĦa de Comunicaciones y Transportes is required to establish or operate a bus or truck station or terminal. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may obtain such permit. Investment Foreign investment is not permitted in an enterprise established or to be established in Mexico engaged in the establishment or operation of bus or truck station or terminals as described in the industry classification mentioned above. DURATION: Cross-Border Services Description shall govern upon entry into force of this Agreement. Three years after signature of this Agreement, such permit may be obtained by Mexican nationals and Mexican enterprises. Investment With respect to enterprises established or to be established in Mexico providing such service investors of another Party and their investment may own: (a) three years after the signature of this Agreement, up to 49 percent of ownership interest of the enterprise; (b) seven years after the entry into force of this Agreement, up to 51 percent of the ownership interest of the enterprise; and (c) ten years after the entry into force of this Agreement, up to 100 percent of the enterprise. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973102 Road and Bridge Administration Services and Ancillary Services TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), ArtĦculo 32 Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Libro Primero, CapĦtulos I, II y III, Libro Segundo, TĦtulo Segundo, CapĦtulo II, TĦtulo Tercero, CapĦtulo Unico DESCRIPTION: Cross-Border Services A concession granted by the SecretarĦa de Comunicaciones y Transportes is required to provide road and bridge administration services and ancillary services. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711312 Urban and Suburban Passenger Transportation Service by Bus CMAP 711315 Collective Automobile Transportation Service CMAP 711316 Established Route Automobile Transportation Service CMAP 711317 Automobile Transportation Service from a Specific Station CMAP 711318 School and Tourist Transportation Service (limited to school transportation service) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote General Investment and to Regulate Foreign Investment) Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulation of the Law to Promote General Investment and to Regulate Foreign Investment) Reglamento para el Autotransporte Federal de Pasajeros (Regulations of the Federal Transport of Passengers) State laws [to be provided] DESCRIPTION: Cross-Border Services and Investment Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may provide local bus services, school bus services and taxi and other collective transportation services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for Construction Materials CMAP 711202 Road Transport Moving Services CMAP 711203 Other Services of Specialized Cargo Transportation CMAP 711204 General Trucking Services CMAP 711311 Inter-City Busing Services CMAP 711318 School and Tourist Transportation Services (limited to tourist transportation services). TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: State LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), ArtĦculo 32 State laws and its regulations equivalent to Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) [to be provided] Libro Primero, TĦtulo Segundo, CapĦtulo II, Libro Primero, CapĦtulo III DESCRIPTION: Cross-Border Services In each state, a concession is required to provide intrastate bus and truck services on roads under the jurisdiction of such state. Such concession is provided on the basis of economic needs tests. Preferences in the granting of such concessions by states is accorded to natural persons born in such states and enterprises constitued by persons born in such states, including the states of Michoac n, San Luis PotosĦ, Tamaulipas, Tlaxcala and Zacatecas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for Construction Materials CMAP 711202 Road Transport Moving Services CMAP 711203 Other Services of Specialized Cargo Transportation CMAP 711204 General Trucking Services CMAP 711311 Inter-City Busing Services CMAP 711318 School and Tourist Transportation Services (limited to tourist transportation services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), and its regulations [to be provided] Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera, (Law to Promote General Investment and to Regulate Foreign Investment) Memorandum de Entendimiento entre los Estados Unidos Mexicanos y los Estados Unidos de Norteam‚rica para la promoci˘n de Servicios de Transporte TurĦstico de Ruta Fija, (Memorandum of Understanding Between the United States of America and the United Mexican States on Facilitation of Charter/Tour Bus Service) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera, (Regulation of the Law to Promote General Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services A permit issued by the SecretarĦa de Comunicaciones y Transportes is required to provide bus or truck services for the transportation of goods or passengers to or from the territory of Mexico. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may provide such services, except that a person of Canada or the United States may be granted permanent operating authority to provide international charter or tour bus services into the territory of Mexico. Only Mexican nationals, and Mexican enterprises with a foreigners' exclusion clause, using Mexican registered equipment and drivers who are Mexican nationals, may provide bus and truck services for the transportation of goods and passangers between two points in the territory of Mexico. Investment Foreign investment is not permitted in an enterprise established or to be established in Mexico engaged in bus or truck transportation services as described in the industry classification mentioned above. DURATION: Cross-Border Services Description shall govern upon entry into force of this Agreement. A person of Canada or of the United States will be permitted to provide: (a) three years after signature of this Agreement, cross-border truck services to or from the territory of border states (Baja California, Sonora, Chihuahua, Coahuila, Tamaulipas and Nuevo Le˘n), and such person will be permitted to enter and depart Mexico through different ports of entry in such states; (b) three years after signature of this Agreement, only Mexican nationals and Mexican enterprises, using Mexican-registered equipment and drivers who are Mexican nationals, may provide bus and truck services for the transportation of goods and passengers between two points in the territory of Mexico. (c) three years after entry into force of this Agreement, cross-border scheduled bus services to or from the territory of Mexico; and (d) six years after entry into force of this Agreement, cross-border truck services to or from the territory of Mexico. Investment With respect to enterprises established or to be established in Mexico providing such services, investors of another Party may own: (a) three years after signature of this Agreement, up to 49 percent of ownership of an enterprise providing bus services, tourist transportation services and truck services for the transportation of international cargo, between points in the territory of Mexico; (b) seven years after entry into force of this Agreement, up to 51 percent of the ownership interest of an enterprise providing bus services, tourist transportation services or truck services for the transportation of international cargo, between points in the territory of Mexico; and (c) ten years after entry into force of this Agreement, up to 100 percent ownership interest of an enterprise providing bus services, tourist services and truck services for the transportation of international cargo, between points in the territory of Mexico. Foreign ownership in enterprises providing truck services for the carriage of domestic cargo will not be permitted. Indeterminate. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUB-SECTOR: Land Transportation and Water Transportation INDUSTRY CLASSIFICATION: CMAP 501421 Marine and River Works CMAP 501422 Construction of Roads for Land Transportation TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, (Political Constitution of the United Mexican States) ArtĦculo 32 Ley de VĦas Generales de Comunicaci˘n (General Means of Communications Law) Libro Primero, CapĦtulos I, Libro Segundo, CapĦtulo I DESCRIPTION: Cross-Border Services A concession granted by the SecretarĦa de Comunicaciones y Transportes is required to construct and operate, or operate, marine and river works and roads for land transportation. Such concession may be granted only to Mexican nationals and Mexican enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Non-energy pipelines INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Articles 8, 12 and 5 Ley Federal de Aguas(Waters Federal Law) DESCRIPTION: Cross-Border Services A concession granted by the SecretarĦa de Comunicaciones y Transportes is required to construct and operate, or operate, pipelines carrying non-energy goods, excluding basic petrochemicals. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Freight and Passenger Water Transportation INDUSTRY CLASSIFICATION: CMAP 712011 International Maritime Transportation Services CMAP 712012 Cabotage Maritime Services CMAP 712013 International and Cabotage Towing Services CMAP 712021 River and Lake Transportation Services CMAP 712022 Internal Port Water Transportation Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (Articles 1103, 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), CapĦtulo III, Libro Tercero Ley para el Desarrollo de la Marina Mercante (Law for the Development of the Merchant Navy), CapĦtulos I y III Ley de Navegaci˘n y Comercio MarĦtimos (Navigation and Maritime Navigation Law) Libro Segundo, TĦtulo Unico, CapĦtulos I y IIILey Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services and Investment Maritime cabotage services, including off-shore maritime services, are reserved to Mexican-flagged vessels. A waiver may be granted by the SecretarĦa de Comunicaciones y Transportes when Mexican-flagged vessels are not able to provide such services.Only Mexican flagged vessels may transport cargo owned by the Federal Government. Foreign-flagged vessels may provide international maritime services in Mexico on the basis of reciprocity with the relevant country. Only Mexican-flagged towing vessels may provide towing services from Mexican ports to foreign ports. When such towing vessels are not able to provide such services, the SecretarĦa de Comunicaciones y Transporte may provide a permit to foreign-flagged towing vessels.Only a Mexican national or a Mexican enterprise with a foreigners' exclusion clause may own vessels registered and flagged as Mexican. All members of the board of directors and managers of such enterprise must be Mexican nationals. Prior approval of the Comisi˘n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments, to own, directly or indirectly, more the 49 percent of the ownership interest of an enterprise established or to be established in Mexico operating foreign-flagged vessels providing international maritime transport services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: CMAP 951012 Customs Brokers (Agentes Aduanales) TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley Aduanera (Customs Law) DESCRIPTION: Investment Only Mexican nationals by birth may serve as customs brokers. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 1300 Fishing TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican Stated Political Constitution), ArtĦculo 32 Ley de Pesca (Fishing Law), CapĦtulos I y II Ley de Navegaci˘n y Comercio MarĦtimo (Navigation and Maritime Commerce Law) Libro Segundo, TĦtulo Unico, CapĦtulo I DESCRIPTION: Cross-Border Services A concession granted, or permit issued, by the SecretarĦa de Pesca is required to engage in fishing activities in Mexican jurisdictional waters. Only Mexican nationals and Mexican enterprises, using Mexican-flagged vessels, may obtain such concession or permit. Permits may exceptionally be issued to persons operating vessels flagged in a foreign country that provides equivalent treatment to Mexican-flagged vessels to engage in fishing activities in the Exclusive Economic Zone (EEZ). Only Mexican nationals and Mexican enterprises may obtain authorization from the SecretarĦa de Pesca for deep sea fishing on Mexican-flagged vessels, fixed rigging installation, recollection from the natural milieu of larvae, post-larvae, eggs, seeds or alevines, for research or acuaculture purposes, introduction of live species into Mexican jurisdictional waters, and for educational fishing in accordance with the programmes of the fishing educational institutions. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 384201 Shipbuilding and Ship Repairs TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican Stated Political Constitution), ArtĦculo 32 Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) CapĦtulo XV, Libro Tercero Ley Para el Desarrollo de la Marina Mercante (Law for the Development of the Merchant Navy), CapĦtulo IV DESCRIPTION: Cross-Border Services and Investment A concession granted by the SecretarĦa de Comunicaciones y Transportes is required to establish and operate a shipyard. Only Mexican nationals and Mexican enterprises may obtain such concession. For the owner of a Mexican-flagged vessel to be eligible for government cargo preferences, subsidies and tax benefits granted under the Ley para el Desarrollo de la Marina Mercante, such person must carry out repair and maintenance operations in shipyards and repair facilities in Mexico. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 973203 Maritime and Inland (Lake and Rivers) Ports Administration TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Navegaci˘n y Comercio MarĦtimo (Navigation and Maritime Commerce Law), Libro Segundo, CapĦtulo II Secciones A y B, TĦtulo Unico Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), CapĦtulo XI DESCRIPTION: Cross-Border Services All port workers must be Mexican nationals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 973201 Loading and Unloading Services Related to Water Transportation (includes operation and maintenance of docks; Loading and unloading of vessels at shore-side; marine cargo handling; operation and maintenance of piers; ship and boat cleaning; stevedoring; transfer of cargo between ships and trucks, trains, pipelines and wharfs; waterfront terminal operations) TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), ArtĦculo 32 Ley de Navegaci˘n y Comercio MarĦtimo (Navigation and Maritime Commerce Law), Libro Primero, TĦtulo Unico, CapĦtulo I, Libro Segundo, TĦtulo Segundo Ley Org nica de la Administraci˘n P£blica Federal (Federal Public Administration Law) Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) Libro Tercero, CapĦtulo II Reglamento del Servicio de Maniobras en las Zonas Federales de Puertos, Articles 1, 2, 13 and 14 (Operation Services in the Federal Port Zones Regulation), Libro Primero, TĦtulo Unico, CapĦtulo I, Libro Segundo, TĦtulo Unico, CapĦtulo II, Secci˘n A y Libro Cuarto, TĦtulo Unico Reglamento para el Uso y Aprovechamiento del Mar Territorial, VĦas Navegables, Playas, Zona Federal MarĦtimo Terrestre y Terrenos Ganados al Mar, (Regulation for the Use of the Territorial Sea, Navigable Ways, Beaches, Maritime and Terrestrial Federal Zones) DESCRIPTION: Cross-Border Services A concession granted by the SecretarĦa de Comunicaciones y Transportes is required to construct and operate, or operate, maritime and inland port terminals, including dock, cranes and related facilities. Only Mexican nationals and Mexican enterprises may obtain such concession. A permit issued by the SecretarĦa de Comunicaciones y Transportes is required to provide stevedoring and warehousing services. Only Mexican nationals and Mexican enterprises may obtain such permit. Investment Prior approval of the Comisi˘n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own directly or indirectly, more than 49 percent of the ownership interest of an enterprise established or to be established in Mexico providing to third persons the following services: operation and maintenance of docks; loading and unloading of vessels at shore-side; marine cargo handling; operation and maintenance of piers; ship and boat cleaning; stevedoring; transfer of cargo between ships and trucks, trains, pipelines and wharves; and waterfront terminal operations. DURATION: Cross-Border Services Indeterminate Investment Description shall govern upon entry into force of this Agreement. ANNEX II 1. The Schedule of a Party sets out the reservations taken by that Party, pursuant to Articles 1108(4) and 1206(4), with respect to specific sectors, sub-sectors or activities for which it may maintain existing, non-conforming measures or adopt new or more restrictive measures. Such measures may derogate from an obligation relating to: (a) national treatment, pursuant to Article 1102 (Investment) or 1202 (Services); (b) most-favored-nation treatment, pursuant to Article 1103 (Investment) or 1203 (Services); (c) local presence, pursuant to Article 1205 (Services); (d) performance requirements, pursuant to Article 1106 (Investment); or (e) nationality requirements for senior management or members of boards of directors, pursuant to Article 1107 (Investment). 2. Each reservation sets out the following elements: (a) SECTOR refers to the general sector in which the reservation is taken; (b) SUB-SECTOR refers to the specific sector in which the reservation is taken; (c) INDUSTRY CLASSIFICATION refers to the activity, where appropriate, covered by the reservation according to domestic industry classification codes; (d) TYPE OF RESERVATION specifies the obligation referred to in paragraph 1 for which a reservation is taken; (e) DESCRIPTION describes the scope of the sector, sub-sector or activities covered by the reservation; and (f) LEGAL CITATION OF EXISTING MEASURES identifies existing measures that apply to the sector, sub-sector or activities covered by the reservation. 3. In the interpretation of a reservation, all elements of the reservation should be considered. In the event of any inconsistency between DESCRIPTION and any other element of the reservation, the DESCRIPTION shall govern to the extent of the inconsistency. 4. For purposes of this Annex: CMAP means Clasificaci˘n Mexicana de Actividades y Productos; CPC means Central Product Classification numbers as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991; Mexican enterprise means an enterprise constituted under the laws of Mexico; Mexican national means a national of Mexico, as defined by the Constitution of Mexico; person of a Party means a national or an enterprise of a Party; and SIC means: (a) with respect to Canada, Standard Industrial Classification (SIC) numbers as set out in Statistics Canada, Standard Industrial Classification, fourth edition, 1980; and (b) with respect to the United States, Standard Industrial Classification (SIC) numbers as set out in the United States Office of Management and Budget, Standard Industrial Classification Manual, 1987. ANNEX II Schedule of United States SECTOR: Communication SUB-SECTOR: Cable Television INDUSTRY CLASSIFICATION: SIC 4841 Cable and Other Pay Television Services TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) DESCRIPTION:Investment Subject to Article 2106, the United States reserves the right to adopt or maintain any measure that accords equivalent treatment to persons of any country that limits ownership by persons of the United States in an enterprise engaged in the operation of a cable television system in that country. LEGAL CITATION OF EXISTING MEASURES: None ============================================================================= ANNEX II Schedule of United States SECTOR: Communications SUB-SECTOR: Telecommunications Transport Networks and Services and Radio Communications INDUSTRY CLASSIFICATION: CPC 752 Telecommunications Services (Not Including CPC 752323 Value-Added Network Services or CPC 752329 Other Message Services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment The United States reserves the right to adopt or maintain any measure relating to investment in, or the provision of, telecommunications transport networks and telecommunications transport services or to radio communications. These measures apply to such matters as market entry, spectrum assignment, tariffs, intercarrier agreements, terms and conditions of service, and interconnection between networks and services. Telecommunications transport services typically involve the real- time transmission of customer-supplied information between two or more points without end-to-end change in the form or content of the customer's information, whether or not such services are offered to the public generally. These services include voice and data services provided by any electromagnetic means. Radio communications include all communications by radio, including broadcasting. This reservation does not apply to measures relating to enhanced or value-added services. LEGAL CITATION OF EXISTING MEASURES: Communications Act of 1934, as amended, 47 U.S.C. 151 et seq., see particularly 310(a), (b) (1988) (radio licenses for common carrier, aeronautical en route, aeronautical en route, aeronautical fixed, and broadcasting services), and any Federal Communications Commission rules or policies adopted pursuant to Title 47 of the United States Code, including F.C.C. Decision, International Competitive Carrier, 102 F.C.C. 2d 812 (1985) An Act relating to the Landing and Operation of Submarine Cables in the United States, as amended, 47 U.S.C. 34-9 (1988), see particularly 35 (Submarine Cable Landing Act) (undersea cables) Communications Satellite Act of 1962, as amended, 47 U.S.C. 701-57 (1988) Telegraph Act, as amended, 47 U.S.C. 17 (1988) (telegraph cables serving Alaska) Children's Television Act of 1990, 47 U.S.C. 303a (1990) Television Program Improvement Act of 1990, 47 U.S.C. 303c (1990) ============================================================================= ANNEX II Schedule of United States SECTOR: Social Services SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment The United States reserves the right to adopt or maintain any measure with respect to the provision of public law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care. LEGAL CITATION OF EXISTING MEASURES: ============================================================================= ANNEX II Schedule of the United States SECTOR: Minority Affairs SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment The United States reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities, including corporations organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) ============================================================================= ANNEX II Schedule of United States SECTOR: Professional Services SUB-SECTOR: Attorneys INDUSTRY CLASSIFICATION: SIC 8111 Legal Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment Subject to page VI-U-3, the United States reserves the right to adopt or maintain any measure relating to the provision of legal services, including foreign legal consultancy services, by persons of Mexico. LEGAL CITATION OF EXISTING MEASURES: None ============================================================================= ANNEX II Schedule of the United States SECTOR: Publishing SUB-SECTOR: Newspaper Publishing INDUSTRY CLASSIFICATION: SIC 2711 Newspapers: Publishing, or Publishing and Printing TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) DESCRIPTION: Investment Subject to Article 2106, the United States reserves the right to adopt or maintain any measure that accords equivalent treatment to persons of any country that limits ownership by persons of the United States in an enterprise engaged in the publication of daily newspapers primarily written for audiences and distributed in that country. For purposes of this reservation, daily newspapers are newspapers published at least five days each week. LEGAL CITATION OF EXISTING MEASURES: None ============================================================================= ANNEX II Schedule of the United States SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4412 Deep Sea Foreign Transportation of Freight (limited to promotional programs) SIC 4424 Deep Sea Domestic Transportation of Freight (includes coastwise transportation of freight, deep sea domestic freight transportation, intercoastal transportation of freight, water transportation of freight to noncontiguous territories) SIC 4432 Freight Transportation on the Great Lakes and St. Lawrence Seaway SIC 4449 Water Transportation of Freight, Not Elsewhere Classified (includes canal barge operations, canal freight transportation, intracoastal freight transportation, lake freight transportation except on the Great Lakes, log rafting and towing, river freight transportation except on the St. Lawrence Seaway, transportation of freight on bays and sounds of the oceans) SIC 4481 Deep Sea Transportation of Passengers, Except by Ferry (limited to promotional programs) SIC 4482 Ferries SIC 4489 Water Transportation of Passengers, Not Elsewhere Classified (includes airboats, swamp buggy rides, excursion boat operations, passenger water transportation on rivers and canals, sightseeing boats, water taxis) SIC 4492 Towing and Tugboat Services SIC 4499 Water Transportation Services, Not Elsewhere Classified (limited to cargo salvaging, chartering of commercial boats, lighterage, bunkering, marine salvage, pilotage, steamship leasing, cable laying) SIC 4491 - Marine Cargo Handling (limited to crew activities aboard vessels transporting supplies and cargo within U.S. territorial waters and longshore work performed by crew affected by reciprocity restrictions) SIC 1629 Heavy Construction, Not Elsewhere Classified (limited to marine dredging) SIC 091 Commercial Fishing (limited to fishing vessels and fishing operations within the Exclusive Economic Zone) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment The United States reserves the right to adopt or maintain any measure relating to the provision of maritime transportation services and the operation of U.S.-flagged vessels, including the following: (a) requirements for investment in, ownership and control of, and operation of vessels and other marine structures, including drill rigs, in maritime cabotage services, including maritime cabotage services performed in the domestic offshore trades, the coastwise trades, U.S. territorial waters, waters above the continental shelf, and in the inland waterways; (b) requirements for investment in, ownership and control of, and operation of U.S.-flagged vessels in foreign trades; (c) requirements for investment in, ownership and control of, and operation of vessels engaging in fishing and related activities in U.S. territorial waters and the Exclusive Economic Zone (EEZ); (d) requirements related to documenting a vessel under the U.S. flag; (e) promotional programs, including tax benefits, available for shipowners, operators and vessels meeting certain requirements; (f) certification, licensing and citizenship requirements for crew members on U.S.-flagged vessels; (g) manning requirements of U.S.-flagged vessels; (h) all matters falling under the jurisdiction of the Federal Maritime Commission; (i) negotiation and implementation of bilateral and other international maritime agreements and understandings; (j) limitations on longshore work performed by crew members; (k) tonnage duties and light money assessments for entering U.S. waters; and (l) certification, licensing, and citizenship requirements for pilots performing pilotage services in U.S. territorial waters. The following activities are not included in this reservation: (a) vessel construction and repair; and (b) landside aspects of port activities including operation and maintenance of docks, loading and unloading of vessels directly to or from land, marine cargo handling, operation and maintenance of piers, ship cleaning, stevedoring, transfer of cargo between a ship and trucks, trains, pipelines and wharves, waterfront terminal operations, boat cleaning, canal operation, dismantling of ships, operation of marine railways for drydocking, marine surveyors, except cargo, marine wrecking of ships for scrap and ship classification societies. LEGAL CITATION OF EXISTING MEASURES: Merchant Marine Act of 1920, 27, 46 App. U.S.C. 883 et seq. (Jones Act, including Bowaters Corporations, 46 App. U.S.C. 883-1); Jones Act Waiver Statute, Act of December 27, 1950, 46 U.S.C. App., note preceding Sec. 1; Shipping Act of 1916, 9, 46 U.S.C. App. 808; Shipping Act of 1916, 2, 46 U.S.C. App. 802; Merchant Marine Act of 1936, 905(c), 46 U.S.C. App. 1244; Merchant Ship Sales Act of 1946, 50 U.S.C. App. 1738; 46 U.S.C. App. 292; 46 U.S.C. 12101 et seq. and 31301 et seq.; 46 U.S.C. App. 316 and 8904; Passenger Vessel Act, 46 U.S.C. 289; Merchant Marine Act of 1936, Title VI, 46 U.S.C. App. 1171, et seq. (includes Capital Construction Fund -- 46 App. U.S.C. 1177, 26 U.S.C. 7518) and the Merchant Marine Act of 1936, Title V, 46 U.S.C. App. 1151, et seq. (includes Capital Reserves Fund, 46 App. U.S.C. 1161 and trade in of obsolete vessels, 46 App. U.S.C. 1160(1) and for National Defense Reserve Fleet, 46 App. 1160(i)); 46 U.S.C. 31328(2); Merchant Marine Act of 1936, Title XI, 46 U.S.C. App. 1271, et seq. (includes Marine Hull Insurance Requirements -- 46 App. U.S.C. 1273(b) and 46 U.S.C. Part 249); Tonnage Duties, 46 App. U.S.C. 121; Merchant Marine Act of 1936, 901(a) and (b), 46 App. U.S.C. 1241(b); Public Resolution 17, 46 App. U.S.C. 1241-1; and the Cargo Preference Act of 1904, 10 U.S.C. 2631; Environmental laws: CERCLA (superfund) 42 U.S.C. 9601 et seq.; and Oil Pollution Act of 1990, 33 U.S.C. 2701; Clean Water Act, 33 U.S.C. 1251 et seq.; 46 U.S.C. 3301 et seq.; 46 U.S.C. 3701, et seq.; Controlled Carrier Act, Shipping Act of 1984, 9, 46 App U.S.C. 1708; Merchant Marine Act of 1920, 19 as amended, 46 App. U.S.C. 876; Shipping Act of 1984, 13(b)(5); 46 App. U.S.C. 1712 (b)(5); and the Foreign Shipping Practices Act of 1988; Omnibus Trade and Competitiveness Act of 1988, Title X, 46 App. U.S.C. 1710a; Immigration Act of 1990, 203, 8 U.S.C. 1288, restrictions on stevedoring by crews of foreign vessels; 46 U.S.C. 8103; Nicholson Act, 46 U.S.C. App. 251; Commercial Fishing Industry Vessel Anti-Reflagging Act of 1987, 46 U.S.C. 2101 and 46 U.S.C. 12108; 43 U.S.C. 1841; 22 U.S.C. 1980; Intercoastal Shipping Act, 46 App. U.S.C. 843; 46 U.S.C. 9302, 46 U.S.C. 8502; Agreement Governing the Operation of Pilotage on the Great Lakes, Exchange of Notes at Ottawa, August 23, 1978, and March 29, 1979, Treaties and International Agreements Service 9445; 46 U.S.C. 12107(b); and Magnuson Fisheries Conservation and Management Act, 16 U.S.C. 1801, et seq. ANNEX II Schedule of Canada SECTOR: Aboriginal Affairs SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (Article 1107) DESCRIPTION:Investment and Cross-Border Services Canada reserves the right to adopt or maintain any measure denying investors of another Party and their investments, or service providers of another Party, any rights or preferences provided to aboriginal peoples. LEGAL CITATION OF EXISTING MEASURES: [Constitution Act, 1982 and any relevant legislation or policy] ============================================================================= ANNEX II Schedule of Canada SECTOR: Social Services SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) DESCRIPTION: Investment and Cross-Border Services Canada reserves the right to adopt or maintain any measure with respect to the provision of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care. LEGAL CITATION OF EXISTING MEASURES: ============================================================================= ANNEX II Schedule of Canada SECTOR: Communications SUB-SECTOR: Telecommunications Transport Networks and Services, Radiocommunications and Submarine Cables INDUSTRY CLASSIFICATION: CPC 752 Telecommunications Services TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) Senior Management (Article 1107) DESCRIPTION: Investment Canada reserves the right to adopt or maintain any measure relating to investment in telecommunications transport networks and telecommunications transport services, radiocommunications and submarine cables, including ownership restrictions and measures concerning corporate officers and directors and place of incorporation. This reservation does not apply to providers of Value-Added Networks (CPC 752323) and Other Message Services (CPC 752329) whose underlying telecommunications transmission facilities are leased from providers of public telecommunications transport networks. LEGAL CITATION OF EXISTING MEASURES: Bell Canada Act, S.C. 1987, c.19 British Columbia Telephone Company Special Act, S.C. 1916, c.66 Teleglobe Canada Reorganization and Divestiture Act, R.S.C. 1985, c.T-4 Telesat Canada Act, R.S.C. 1985, c.T-6 Radiocommunication Act, R.S.C. 1985, c.R-2; as amended by S.C.1989 c.1, c.17 Telegraphs Act R.S.C. 1985, c.T-5 Telecommunications Policy Framework, 1987 Telecommunications Act (Bill C-62) ============================================================================= ANNEX II Schedule of Canada SECTOR: Communications SUB-SECTOR: Telecommunications Transport Networks and Services, Radiocommunications and Submarine Cables INDUSTRY CLASSIFICATION: CPC 752 Telecommunication Services (not including CPC 752323 value-Added Network Service or CPC 752329 Other Message Services) TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) DESCRIPTION: Cross-Border Services Canada reserves the right to adopt or maintain any measure relating to radio-communications, submarine cables, and the provision of telecommunications transport networks and telecommunications transport services. These measures apply to such matters as market entry, spectrum assignment, tariffs, intercarrier agreements, terms and conditions of service, interconnection between networks and services, and routing requirements that impede the provision of telecommunications transport networks and telecommunications transport services, radio communication and submarine cables, on a cross-border basis. Telecommunications transport services typically involve the real-time transmission of customer-supplied information between two or more points without any end-to-end change in the form or content of the customer's information, whether or not such services are offered to the public generally. These services include voice and data services by wire, radiocommunication or any other electromagnetic means of transmission. This reservation does not apply to measures relating to the cross-border provision of enhanced or value-added services. LEGAL CITATION OF EXISTING MEASURES: Bell Canada Act, S.C. 1987, c. 19 British Columbia Telephone Company Special Act, S.C. 1916, c.66 Railway Act, R.S.C. 1985, c.R-3 Radiocommunication Act, R.S.C. 1985, c.R-2; as amended by S.C. 1989, c.1, c.17 Telegraphs Act, R.S.C. 1985, c.T-5 Telecommunications Policy Framework, 1987 Telecommunications Act (Bill C-62) CRTC Decisions, including (85-19), (90-3), (91-10), (91-21), (92-11), (92-12) ============================================================================= Annex II Schedule of Canada SECTOR: Government Finance SUB-SECTOR: Securities INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) DESCRIPTION: Investment Canada reserves the right to adopt or maintain any measure relating to the acquisition or sale or other disposition of bonds, treasury bills, or other kinds of debt securities issued by the Government of Canada, a province or local government by nationals of another Party. LEGAL CITATION OF EXISTING MEASURES: Financial Administrative Act, R.S.C., 1985, Chap. F-11 ============================================================================ ANNEX II Schedule of Canada SECTOR: minority Affairs SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment Canada reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities. LEGAL CITATION OF EXISTING MEASURES: None ============================================================================= ANNEX II Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 4513 Non-Scheduled Air Transport, Specialty Industry TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) Senior Management (Article 1107) DESCRIPTION: Investment Canada reserves the right to adopt or maintain any measure that restricts the acquisition or establishment of an investment in Canada for the provision of specialty air services to a Canadian national or a corporation incorporated and having its principal place of business in Canada, its chief executive officer and not fewer than 2/3 of its directors as Canadian nationals, and not less than 75% of its voting interest owned and controlled by persons otherwise meeting these requirements. LEGAL CITATION OF EXISTING MEASURES: Aeronautics Act, R.S.C., 1985, c. A-2 Air Regulations, C.R.C., Vol.I, c.2 Air Regulations Series 2, No.2 (Aircraft Marking and Registration Regulations), SOR/90-591 ============================================================================= ANNEX II Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Water Transport Industries SIC 4552 Harbour and Port Operation Industries SIC 4553 Marine Salvage Industry SIC 4554 Piloting Service, Water Transport Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment Canada reserves the right to adopt or maintain any measure relating to the investment in or provision of maritime cabotage services, including: (a) the transportation of goods or passengers by vessel between points in the territory of Canada and the Exclusive Economic Zone; (b) with respect to waters above the continental shelf, the transportation of goods in relation to the exploration, exploitation, or transportation of the mineral or non-living natural resources of the continental shelf; and (c) the engaging by vessel in any maritime activity of a commercial nature in the territory of Canada and the Exclusive Economic Zone and, with respect to waters above the continental shelf, in such other maritime activities of a commercial nature in relation to the exploration, exploitation or transportation of mineral or non- living natural resources of the continental shelf. This reservation relates to, among other things, local presence requirements for service providers entitled to participate in these activities, the criteria for the issuance of a temporary cabotage license to foreign vessels, and limits on the number of cabotage licenses issued to foreign vessels. LEGAL CITATION OF EXISTING MEASURES: Coasting Trade Act, S.C., 1992, c. 31 Canada Shipping Act, R.S.C., 1985, c. S-9 Customs Act, R.S.C., 1985, c.1 (2nd Supp.) Customs and Excise Offshore Application Act, R.S.C., 1985, c. C-53 ============================================================================= ANNEX II Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Marine Transport Industries SIC 4551 Marine Cargo Handling Industry SIC 4552 Harbour and Port OperationIndustry SIC 4553 Marine Salvage Industry SIC 4554 Piloting Service, Water Transport Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment Canada reserves the right to adopt or maintain any measure denying service providers or investors of the United States, or their investments, the benefits accorded service providers or investors of Mexico or any other country, or their investments, in sectors equivalent to those subject to the maritime services reservation inscribed in page II-U-8. LEGAL CITATION OF EXISTING MEASURES: None ============================================================================= ANNEX II Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Marine Transport Industries SIC 4551 Marine Cargo Handling Industry SIC 4552 Harbour and Port Operation Industry SIC 4553 Marine Salvage Industry SIC 4554 Piloting Service, Water Transport Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) DESCRIPTION: Cross-Border Services Canada reserves the right to adopt or maintain any measure relating to the implemention of agreements, arrangements and other formal or informal undertakings with other countries with respect to maritime activities in waters of mutual interest in such areas as pollution control (including double hull requirements for oil tankers), safe navigation, barge inspection standards, water quality, pilotage, salvage, drug abuse control, and maritime communications. LEGAL CITATION OF EXISTING MEASURES: United States Wreckers Act, R.S.C. 1985, c. U-3 Various Agreements and Arrangements, including: (a) Memorandum or Arrangement on Great Lakes Pilotage; (b) Canada-United-States Joint Marine Pollution Circumpolar Agreement; (c) Agreement with the United States on Loran "C" Service on the East and West Coasts; and (d) Denmark - Canada Joint Marine Pollution Circumpolar Agreement. ANNEX II Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) DESCRIPTION: Cross-Border Services and Investment Mexico reserves the right to adopt or maintain any measure restricting the ownership of bonds, treasury bills or any other kind of debt or security issued by the federal, state or local governments except with respect to ownership by financial institutions of another Party, as such term is defined in Chapter Fourteen (Financial Services). LEGAL CITATION OF EXISTING MEASURES: ============================================================================= ANNEX II Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting and Multipoint Distribution Systems (MDS)) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Repetition of Television Programming (Limited to Transmission and Repetition of Television Programs, MDS, and High-Definition Television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (Articles 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1106) DESCRIPTION: Cross-Border Services and Investment Mexico reserves the right to adopt or maintain any measure relating to investment in or provision of broadcasting, multipoint distribution systems, uninterrupted music and high-definition television services. LEGAL CITATION OF EXISTING MEASURES: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) Ley Federal de Radio y Televisi˘n (Radio and Television Federal Law) Ley Para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) ============================================================================= ANNEX II Schedule of Mexico SECTOR: Communications SUB-SECTOR: Telecommunications INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecommunications Services (Limited to Aeronautical Mobile and Fixed Services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (Articles 1103, 1203) Local Presence (Article 1205) DESCRIPTION: Cross-Border Services and Investment Mexico reserves the right to adopt or maintain any measure relating to investment in or provision of air traffic control, aeronautical meteorology, aeronautical telecommunications, flight control and other telecommunication services relating to air navigation services. LEGAL CITATION OF EXISTING MEASURES: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) Decree creating the entity "Servicios a la navegaci˘n en el espacio a‚reo mexicano" (SENEAM) (Air Services in the Mexican Air Space), 3 de octubre de 1978 Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) ============================================================================= ANNEX II Schedule of Mexico SECTOR: Communications SUB-SECTOR: Telecommunications Transport Networks INDUSTRY CLASSIFICATION: CMAP 720003 Telephone Services CMAP 720004 Telephone Booth Services CMAP 720006 Other Telecommunications Services (Not Including Enhanced or Value-Added Services) CMAP 502003 Telecommunications installations TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (Articles 1103, 1203) Local Presence (Article 1205) DESCRIPTION: Cross-Border Services and Investment Mexico reserves the right to adopt or maintain any measure relating to investment in, or provision of, telecommunications transport networks and telecommunication transport services. Telecommunications transport networks include the facilities to provide telecommunications transport services such as local basic telephone services, long-distance telephone services (national and international), rural telephone services, cellular telephone services, telephone booth services, satellite services, trunking, paging, mobile telephony, maritime telecommunication services, air telephone, telex, and data transmission services. Telecommunications transport services typically involve the real-time transmission of customer-supplied information between two or more points without any end-to-end change in the form or content of the customer's information, whether or not such services are offered to the public generally. LEGAL CITATION OF EXISTING MEASURES: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) Reglamento de Telecomunicaciones (Telecommunications Regulations) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) ============================================================================= ANNEX II Schedule of Mexico SECTOR: Communications and Transportation SUB-SECTOR: Postal Services, Telecommunications, Railroads INDUSTRY CLASSIFICATION: CMAP 720001 Postal Services CMAP 720005 Telegraphic Services, Radiotelegraphic Services, Wireless Telegraphy CMAP 720006 Other Telecommunications services (limited to satellite communications) CMAP 711101 Railway Transportation Service (limited to operation, administration and control of traffic within the Mexican railway system, supervision and management of railway rights-of-way, construction, operation, and maintenance of basic railway infrastructure) TYPE OF RESERVATION: National Treatment (Article 1202) Most-favored-Nation Treatment (Article 1203) Local Presence (Article 1205) DESCRIPTION: Cross-Border Services Mexico reserves the right to adopt or mantain any measure related to the provision of the following services: postal services (operation, administration and organization of first class mail), telegraph, radiotelegraphy, satellite communications (establishment, ownership and operation of satellite systems, and establishment, ownership and operation of earth stations with international links), and railroads (operation, administration and control of traffic within the Mexican railway system, supervision and management of railway rights-of-way, construction, operation, and maintenance of basic railway infrastructure). LEGAL CITATION OF EXISTING MEASURES: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, (United Mexican States Political Constitution) Article 28 Ley de VĦas Generales de Comunicaci˘n (General Means of Communications Law and its regulations) Ley Org nica de Ferrocarriles Nacionales de M‚xico (Mexican National Railroad Law) Ley del Servicio Postal Mexicano (Mexican Postal Services Law and its regulations) ============================================================================= ANNEX II Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Other Services Provided by Natural Persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951002 Legal Services/Foreign Legal Consultants TYPE OF RESERVATION: National Treament (Article 1102, 1202) Most-Favored-Nation Treatment (Article 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment Subject to page VI-M-2, Mexico reserves the right to adopt or maintain any measure relating to the provision of legal services and foreign legal consultancy services by person of the United States. LEGAL CITATION OF EXISTING MEASURES: Ley Reglamentaria del ArtĦculo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal (Regulatory Law of Article 5' of the United Mexican States Political Constitution in relation to Professional Services) Reglamento de la Ley para Promover la Inversi˘n Mexicana y Regular la Inversi˘n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). ============================================================================= ANNEX II Schedule of Mexico SECTOR: Social Services SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment Mexico reserves the right to adopt or maintain any measure with respect to the provision of public law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care. LEGAL CITATION OF EXISTING MEASURES: ============================================================================= ANNEX II Schedule of Mexico SECTOR: Transportation SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: Ship Captains (Capitanes) Aircraft Pilots (Pilotos) Ship Masters (Patrones) Ship Machinists (Maquinistas) Ship Mechanics (Mec nicos) Airport Administrators (Comandantes de Aer˘dromos) Harbor Masters (Capitanes de Puerto) Harbor Pilots (Pilotos de Puerto) Customs Brokers (Agentes Aduanales) Crew on Mexican flagged vessels and aircraft (Personal que tripule cualquier embarcaci˘n o aeronave con bandera o insignia mercante mexicana) TYPE OF RESERVATION: National Treament (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) DESCRIPTION: Cross-Border Services Only Mexicans by birth may serve as captains, pilots, ship masters, machinists, mechanics and crew members manning vessels or aircraft under the Mexican flag; as harbor pilots, harbor masters and airport administrators; and as customs brokers. LEGAL CITATION OF EXISTING MEASURES: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, (Political Constitution of United Mexican States) ANNEX III Schedule of Mexico I. The Mexican State reserves the right to perform exclusively, and to refuse to permit the establishment of investments in, the following activities: 1. Petroleum, other Hydrocarbons and Basic Petrochemicals (a) Description of activities (i) exploration and exploitation of crude oil and natural gas; refining or processing of crude oil and natural gas; and production of artificial gas, basic petrochemicals and their feedstocks and pipelines; and, (ii) foreign trade; transportation, storage and distribution up to and including first hand sales of the following goods: crude oil; natural and artificial gas; goods obtained from the refining or processing of crude oil and natural gas; and basic petrochemicals. (b) Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25, 27 and 28 (United Mexican States Political Constitution, Articles 25, 27 and 28). Ley Reglamentaria del ArtĦculo 27 Constitucional en el Ramo del Petr˘leo y sus reglamentos (Regulatory Law of Article 27 of the United Mexican States Constitution related to Oil, and its regulations). Ley Org nica de Petr˘leos Mexicanos y Organismos Subsidiarios (Statutory Law of Petr˘leos Mexicanos and its Subsidiaries). ============================================================================= ANNEX III Schedule of Mexico 2. Electricity (a) Description of activities: the supply of electricity as a public service in Mexico, including, except as provided in Annex 602.3 of the Energy Chapter, the generation, transmission, transformation, distribution and sale of electricity. (b) Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Articles 25 and 28). Ley del Servicio P£blico de EnergĦa El‚ctrica y su reglamento (Public Service of Electric Energy Law, and its Regulations) 3. Nuclear Power and Treatment of Radioactive Minerals (a) Description of activities: the generation of nuclear energy; the exploration, exploitation and processing of radioactive minerals; the nuclear fuel cycle; the use and reprocessing of nuclear fuels and the regulation of their applications for other purposes; the transportation and storage of nuclear wastes; and the production of heavy water. (b) Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25, 27 and 28 (United Mexican Constitution, Article 25, 27 and 28). Ley Reglamentaria del ArtĦculo 27 Constitucional en Materia de EnergĦa Nuclear (Regulatory Law of the Aticle 27 of the United Mexican Constitution related to Atomic Energy). ============================================================================= ANNEX III Schedule of Mexico 4. Satellite Communications (a) Description of activities: the establishment, operation and ownership of satellite systems and earth stations with international links. (b) Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States, Articles 25 and 26). Ley de VĦas Generales de Comunicaci˘n y sus reglamentos (General Means of Communication Law) 5. Telegraph Services Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States, Articles 25 and 28) Ley de VĦas Generales de Comunicaci˘n y sus reglamentos (General Means Communication Law) 6. Radiotelegraph Services Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Article 25 and 28) Ley de VĦas Generales de Comunicaci˘n y sus reglamentos (Genral Means of Communication Law). ============================================================================= ANNEX III Schedule of Mexico 7. Postal Services (a) Description of activities: operation, administration and organization of first class mail. (b) Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Articles 25 and 28). Ley del Servicio Postal Mexicano (Mexican Postal Service Law) 8. Railroads (a) Description of activities: the operation, administration and control of traffic within the Mexican railway system; supervision and management of railway right-of-way; operation, construction and maintenance of basic railway infrastructure. (b) Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Articles 25 y 28). Ley Org nica de Ferrocarriles Nacionales de M‚xico (Statutory Law of Mexican Railroads). 9. Issuance of Bills (currency) and Minting of Coinage Legal citation: Constituci˘n PolĦtica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Articles 25 and 28). ============================================================================= ANNEX III Schedule of Mexico Ley Org nica del Banco de M‚xico (Statutory Law of Banco de M‚xico). Ley Org nica de la Casa de Moneda de M‚xico (Statutory Law of the Mexican Coining Agency). 10. Control, Inspection and Surveillance of Maritime and Inland (Lake and River) Ports Legal citation: Ley de Navegaci˘n y Comercio MarĦtimo (Commercial and Navigation Law), Articles 43 and 47. Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) Article 272. 11. Control, Inspection and Surveillance of Airports and Heliports Legal citation: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication) Article 327. The legal citations are provided only for transparency purposes. II. Deregulation of Activities Reserved to the State 1. The activities set out in Section I are reserved to the Mexican State, and private equity investment is prohibited under Mexican Law. Where Mexico allows private investment to participate in such activities through service contracts, concessions, lending arrangements or any other type of contractual arrangement, such participation shall not be construed to affect the State's reservation of those activities. 2. If Mexican laws or regulations are amended to allow private equity investment in an activity set out in Section I, Mexico may impose restrictions on foreign investment ============================================================================= ANNEX III Schedule of Mexico participation notwithstanding Article 1102 and describe them in Annex I. Mexico may also impose derogations from 1102 on foreign equity investment participation when selling an asset or ownership interest in an enterprise in activities set out in Section I and describe them in Annex I. III. Activities Formerly Reserved to the Mexican State Where an activity was reserved to the Mexican State on January 1, 1992 and is not reserved to the Mexican State upon entry into force of this Agreement, Mexico may restrict the initial sale of a state-owned asset or an ownership interest in a state enterprise that performs that activity to enterprises with majority ownership by Mexican nationals, as defined by the Mexican Constitution. For a period not to exceed three years from the initial sale, Mexico may restrict the transfer of such asset or ownership interest to other enterprises with majority ownership by Mexican nationals, as defined by the Mexican Constitution. Upon expiration of the three year period , the obligations of national treatment set out in Article 1102 (National Treatment) shall apply. This provision is subject to Article 1108 (Reservations and exceptions). ANNEX IV The Schedule of a Party sets out the reservations taken by that Party pursuant to Article 1108(7) with respect to Article 1103 (Most-Favored-Nation Treatment). Each reservation sets out the sector, subsector or activities to which it applies. ANNEX IV Schedule of the United States The United States takes an exception to Article 1103 for all international agreements (bilateral and multilateral) in force or signed prior to the date of entry into force of this Agreement. As for international agreements other than those in force or signed prior to the date of entry into force of this Agreement, the United States takes an exception to Article 1103 for those agreements involving: 1. Aviation; 2. Fisheries; 3. Maritime matters, including salvage; or 4. Telecommunications. With respect to state measures not yet described in Annex I, pursuant to paragraph 2 of Article 1108, the United States takes an exception to Article 1103 for international agreements signed within two years of the entry into force of this Agreement. For greater certainty, the Parties note that Article 1103 does not apply to any current or future foreign aid programs to promote economic development, such as those governed by the Energy Economic Cooperation Program with Central America and the Caribbean (Pacto de San Jos‚) and the OECD Agreement on Export Credits. ANNEX IV Schedule of Canada Canada takes an exception to Article 1103 for all international agreements (bilateral and multilateral) in force or signed prior to the date of entry into force of this Agreement. As for international agreements other than those in force or signed prior to the date of entry into force of this Agreement, Canada takes an exception to Article 1103 for those agreements involving: 1. Aviation; 2. Fisheries; 3. Maritime matters, including salvage; or 4. Telecommunications. With respect to provincial measures not yet described in Annex I, pursuant to paragraph 2 of Article 1108, Canada takes an exception for international agreements signed within two years of the entry into force of this Agreement. For greater certainty, the Parties note that Article 1103 does not apply to any current or future foreign aid programs to promote economic development, such as those governed by the Energy Economic Cooperation Program with Central America and the Caribbean (Pacto de San Jos‚) and the OECD Agreement on Export Credits. ANNEX IV Schedule of Mexico Mexico takes an exception to Article 1103 for all international agreements (bilateral and multilateral) in force or signed prior to the date of entry into force of this Agreement. As for international agreements other than those in force or signed prior to the date of entry into force of this Agreement, Mexico takes an exception to Article 1103 for those agreements involving: 1. Aviation; 2. Fisheries; 3. Maritime matters, including salvage; or 4. Telecommunications. With respect to state measures not yet described in Annex I, pursusant to paragraph 2 of Article 1108, Mexico takes an exception to Article 1103 for international agreements signed within two years of the entry into force of this Agreement. For greater certainty, the Parties note that Article 1103 does not apply to any current or future foreign aid programs to promote economic development, such as those governed by the Energy Economic Cooperation Program with Central America and the Caribbean (Pacto de San Jos‚) and the OECD Agreement on Export Credits. ANNEX V Schedule of United States SECTOR: Communications SUB-SECTOR: Telecommunications (Radio Communications) INDUSTRY CLASSIFICATION: CPC 752 Telecommunications Services LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Communications Act of 1934, as amended, Sections 1, 2, 4, and Title III, 47 U.S.C. 151 et. seq. (1988) DESCRIPTION: The Communications Act of 1934 (the Act) requires anyone wishing to engage in communications by radio within the United States and between the United States and points outside the United States to obtain a license from the Federal Communications Commission (FCC) for the use, but not the ownership, of all channels of radio communications; and no such license shall be construed to create any right beyond the terms, conditions and periods of the license. The Act requires the FCC, in granting radio station licenses, to determine if such a license would serve the public interest, convenience and necessity and empowers the FCC to impose conditions pursuant to this determination. The Act also empowers the FCC to deny applications for radio licenses where it is unable to find that such grant would serve the public interest, convenience and necessity. ============================================================================= ANNEX V Schedule of United States SECTOR: Communications SUB-SECTOR: Cable Television Services INDUSTRY CLASSIFICATION: CPC 753 Radio and Television Cable Services LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Communications Act of 1934, as amended, 47 U.S.C. 151 et. seq. (1988) Federal Communications Commission Rules, Sections 76.501, 74.931(e)(5), 63.54, and 21.912 47 C.F.R. 76.501, 74.931(e)(5), 63.54, and 21.912 DESCRIPTION: A cable television system is not allowed to carry any television broadcast signal if the cable system owns, operates, controls or has an interest in a television broadcast station whose Grade B contour overlaps the service area of such cable system. (76.501(a)) A cable television system may directly or indirectly own, operate, control, or have an interest in a national television network (such as ABC, CBS, or NBC) only if such system does not pass more than (i) 10 percent of homes passed on a nationwide basis when aggregated with all other cable systems in which the network holds such a cognizable interest, and (ii) 50 percent of homes passed within any one ADI (Arbitron Area of Dominant Influence), except that a cable television system facing a competing system will not be counted toward this 50 percent limit. (76.501(b)) A cable television company may not lease excess transmission time or capacity from a licensee of an Instructional Television Fixed Service (ITFS) station (television services intended for use in educational institutions) if the ITFS station is located within 20 miles of that cable television company's franchise area. (74.931(e)(5)) A telephone common carrier may not engage in the provision (e.g., ownership, control, or production) of video programming to the viewing public in its telephone service area, but may distribute such programming on a common carrier basis and may only have up to a five percent non- controlling financial interest in video programmers. (63.54(a)) A telephone common carrier may not provide channels of communications or pole line conduit space, or other rental arrangements to any entity which is directly or indirectly owned, operated or controlled by, or under common control with, such telephone common carrier, where such facilities or arrangements are to be used for, or in connection with, the provision of video programming to the viewing public in the telephone service area of the telephone common carrier. (63.54(b)) In cable television franchise areas served by a single cable operator, that operator may not be authorized to use frequencies assigned to the Multichannel Multipoint Distribution Service (MMDS) (the 2150-2165 Mhz and 2596-2644 Mhz bands), if a portion of an MMDS station's protected service area lies within that cable television operator's franchise area. (21.912) ============================================================================= ANNEX V Schedule of the United States SECTOR: Energy SUB-SECTOR: Natural Gas Transportation INDUSTRY CLASSIFICATION: SIC 4922 Natural Gas Transmission SIC 4923 Natural Gas Transmission and Distribution SIC 4924 Natural Gas Distribution LEGAL CITATION: 15 U.S.C. section 717(f) 18 C.F.R. part 157 DESCRIPTION: Section 7(c) of the Natural Gas Act of 1938, as amended, requires a natural gas company, or a person which will be a natural gas company upon completion of proposed construction or extension of transportation facilities, to obtain a certificate of public convenience and necessity to construct, extend, acquire, or operate such facilities. In addition, a certificate is required to transport or sell for resale natural gas in interstate commerce. The Act requires the FERC to hold hearings on applications for permanent certificates and to give interested persons notice of such hearings and notices of applications are published in the Federal Register. The FERC does not require a certificate of pubic convenience and necessity for certain replacement construction, maintenance, emergency facilities, auxiliary installations, and certain types of taps. Natural gas services for drilling oil wells, or for testing or purging new natural gas pipeline facilities are exempt from the certificate requirement. Certain "emergency" sales, transportation, or exchanges are exempt from the certificate requirement. When a certificate is required, the FERC may grant a temporary certificate for sale or transportation in emergency circumstances, pending the determination on a permanent certificate. ============================================================================= ANNEX V Schedule of the United States SECTOR: Postal Services SUB-SECTOR: Postal Services INDUSTRY CLASSIFICATION: SIC 4311 United States Postal Service LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 39 U.S.C.  401 et seq. 18 U.S.C.  1693 39 C.F.R. Parts 310 and 320 DESCRIPTION: The United States Postal Service is generally authorized to "receive, transmit, and deliver throughout the United States, its territories and possessions ... written and printed matter, parcels and like materials." The Postal Service also has the exclusive authority to "provide and sell postage stamps." A carrier other than the U.S. Postal Service may carry letters if, among other things, each letter is enclosed in an envelope, proper postage has been paid in stamps, the stamp is canceled by the sender, and the carrier endorses the envelope. The postal regulations define "letters" to exclude telegrams, books and magazines, and other materials. The regulations also permit letters to be carried accompanying cargo, by the sender, by others without compensation, and by special messengers. The Postal Service has suspended its regulations with respect to private "express mail" services. ============================================================================= ANNEX V Schedule of United States SECTOR: Recreation SUB-SECTOR: National Parks Concessions INDUSTRY CLASSIFICATION: SIC 7999 Amusement and Recreation Services, Not Elsewhere Classified LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 16 U.S.C.  20 and 20a DESCRIPTION: A concession is required to operate hotels, restaurants, gift shops, snack bars, equipment rentals, horseback riding services, guide services, fishing guides, mountain climbing, bus transportation, and other services facilities in U.S. national parks. The National Park Service regulates all aspects of these services, including building specifications, rates for the services, and hours of operation. The National Park Service awards concessions only where they are determined to be "necessary and appropriate." In developing its plans for the operation of a national park, the Park Service determines what operations, including concessions, are "necessary and appropriate." As a result of this determination, the Park Service may determine that a given concession is not needed. ANNEX V Schedule of Canada SECTOR: Communication Industries SUB-SECTOR: Postal Services INDUSTRY CLASSIFICATION: SIC 4841 Postal Service Industry LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Post Corporation Act, R.S.C., c. C-10 Letter Definition Regulations, SOR/83-481 DESCRIPTION: Canada Post Corporation has the exclusive privilege to collect, transmit and deliver "letters", as defined in the Letter Definition Regulations, addressed in the territory of Canada, and its assent is required in order for other persons to sell stamps. ============================================================================= ANNEX V Schedule of Canada SECTOR: Communications SUB-SECTOR: Radiocommunications INDUSTRY CLASSIFICATION: CPC 752 Telecommunication LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Radiocommunication Act, R.S.C. 1985, c.R-2; as amended by S.C 1989 c.1, c.17, ss. 5, 6 DESCRIPTION: A person desiring to operate a private radio transmission system must obtain a licence from the Department of Communications. The issuance of such licence is subject to spectrum availability and policies regarding its use. In general, priority is given to the use of spectrum for the purpose of developing non-private networks. ============================================================================= ANNEX V Schedule of Canada SECTOR: Energy SUB-SECTOR: Electricity Transmission INDUSTRY CLASSIFICATION: [To be provided] LEVEL OF GOVERNMENT: Federal LEGAL CITATION: National Energy Board Act, R.S.C., 1985, c. N-6 DESCRIPTION: Under Part III of the Act, construction and operation of international electricity transmission lines may require approval by the National Energy Board. ============================================================================= ANNEX V Schedule of Canada SECTOR: Energy SUB-SECTOR: Oil and Gas Transportation INDUSTRY CLASSIFICATION: [To be provided] LEVEL OF GOVERNMENT: Federal LEGAL CITATION: National Energy Board Act R.S.C., 1985 c. N-6 DESCRIPTION: The approval of the National Energy Board (NEB) is required for the construction and operation of all interprovincial or international pipelines for the transmission of oil or gas. A public hearing must be held and a certificate of public convenience and necessity issued where the pipeline in question is longer than 40 kilometers. Pipelines shorter than 40 kilometers may be authorized by an order without a public hearing. All modifications to and extension of pipelines must be approved by the Board. Part IV of the Act requires that all tolls for the transmission of oil and gas on NEB-regulated pipelines and all tariff matters shall be filed with or approved by the NEB. A public hearing may be held in considering toll and tariff matters. ============================================================================= ANNEX V Schedule of Canada SECTOR: Food, Beverages and Drug Industries, Retail SUB-SECTOR: Liquor, Wine and Beer Stores INDUSTRY CLASSIFICATION: 6021 Liquor Stores 6022 Wine Stores 6023 Beer Stores LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Importation of Intoxicating Liquors Act, R.S.C., 1985, c. I-3 DESCRIPTION: The Importation of Intoxicating Liquors Act gives each provincial government an import monopoly on any intoxicating liquors entering its territory. ============================================================================= ANNEX V Schedule of Canada SECTOR: Transportation SUB-SECTOR: Land Transportation INDUSTRY CLASSIFICATION: SIC 457 Public Passenger Transit Systems LEVEL OF GOVERNMENT: Federal (administration delegated to provinces) LEGAL CITATION: National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) DESCRIPTION: Provincial transport boards have been delegated the authority to permit persons to provide extra-provincial (inter-provincial and cross-border) bus services in their respective provinces on the same basis as local bus services. All provinces, except New Brunswick, Prince Edward Island and Yukon, permit the provision of local and extra-provincial bus services on the basis of a public convenience and necessity test. ANNEX V Schedule of Mexico SECTOR: Communications SUB-SECTOR: Telecommunications INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecommunications Services (Limited to Private Networks) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law), Libro Primero, CapĦtulo III (Concesiones, Permisos y Contratos) Reglamento de Telecomunicaciones (Telecommunications Regulations), CapĦtulo 2 CapĦtulo 4 (Permisos) DESCRIPTION: Cross-Border Services Resale of circuit capacity of a private network may not exceed 30 percent of such capacity. ============================================================================= ANNEX V Schedule of Mexico SECTOR: Private Educational Services SUB-SECTOR: INDUSTRY CLASSIFICATION: CMAP 921101 Preschool Private Educational Services CMAP 921102 Primary School Private Educational Services CMAP 921103 Secondary School Private Educational Services CMAP 921104 Middle High (Preparatory) School Private Educational Services CMAP 921105 Higher Private Educational Services CMAP 921106 Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher School Instruction LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Constituci˘n PolĦtica de los Estados Unidos Mexicanos (United Mexican States Political Constitution)TĦtulo Primero, CapĦtulo I Ley Federal de Educaci˘n (Federal Education Law) CapĦtulos I, II, III y IV Ley para la Coordinaci˘n de la Educaci˘n Superior (Higher Education Coordination Law) CapĦtulos I y II Ley Reglamentaria del ArtĦculo 5 Constitucional relativo al ejercicio de las profesiones en el Distrito Federal, (Regulatory Law of Article 5 of the United Mexican States Political Constitution in relation to Professional Services) Article 1, related articles and its Regulation Art. 12, CapĦtulos I y III, Secciones I y III Reglamento de la Ley Reglamentaria del ArtĦculo 5 Constitucional relativo al ejercicio de las profesiones en el Distrito Federal, (Regulation of the Regulatory Law of Article 5 of the United Mexican States Political Constitution in relation to Professional Services) CapĦtulo V DESCRIPTION: Cross-Border Services and Investment For the provision of primary, secondary, normal and workers or peasants educational services, prior and express authorization granted by the SecretarĦa de Educaci˘n P£blica or corresponding state authorities is required. Such authorization is granted on a case-by-case basis in accordance with public convenience and necessity. ============================================================================= ANNEX V Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973103 Vehicle Parking services) Services (Parking and garage CMAP 973104 Weight Scale Services for Transportation. CMAP 973105 Towing Services for Vehicles. CMAP 973106 Other Services Related to Land Transportation not mentioned in sections 9731, 7112 and 7113 of the CMAP LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley de VĦas Generales de Comunicaci˘n (General Means of Communication Law) State laws [to be provided] DESCRIPTION: A permit issued by the SecretarĦa de Comunicaciones y Transportes is required to provide services related to land transportation. In some states such permits are granted on a basis of the public convenience and necessity. Annex VI Schedule of United States SECTOR: Communications SUB-SECTOR: Broadcasting INDUSTRY CLASSIFICATION: CPC 7524 Program Transmission Services LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Communications Act of 1934, as amended, Sections 309, 325, 47 U.S.C. 309, 325 (1988) DESCRIPTION: The United States will ensure that in considering applications for a grant of authority to transmit programming to foreign stations for retransmission into the United States under Section 325 of the Communications Act of 1934 (the Act), the Federal Communications Commission (FCC) will not consider the nationality of the affected stations for the purpose of favoring a U.S. station that is competing with a Mexican station for affiliation with a U.S. programmer. Rather the FCC will apply the criteria for the grant of such permit in the same manner as would be applied to a domestic broadcast station application under Section 309 of the Act. In addition, the term of the Section 325 permit shall be extended from one year to five years in all situations where it can be assured that the retransmitting station is and will be in full compliance with applicable treaties. In assessing the public interest, convenience, and necessity required by the Act for the grant of authorization under Section 325, the primary criterion will be avoiding the creation or maintenance of electrical interference to U.S. broadcast stations that violates applicable treaty provisions. In evaluating this and any other criteria permitted under Section 309, the U.S. will ensure that the Section 325 process shall not be conducted in a manner that would constitute an unnecessary restriction on trade. ============================================================================= ANNEX VI Schedule of the United States SECTOR: Professional Services SUB-SECTOR: Attorneys INDUSTRY CLASSIFICATION: SIC 8111 Legal Services LEVEL OF GOVERNMENT: State LEGAL CITATION: [to be provided] DESCRIPTION: Lawyers authorized to practice in Mexico or Canada and law firms headquartered in Mexico or Canada will be permitted to provide foreign legal consultancy services, and to establish for that purpose, in Alaska, California, Connecticut, District of Columbia, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Ohio, Oregon, Texas, and Washington, or in any other state that so permits by the date of entry into force of this agreement. ANNEX VI Schedule of Canada SECTOR: Professional Services SUB-SECTOR: Lawyers INDUSTRY CLASSIFICATION: SIC [To be provided] LEVEL OF GOVERNMENT: Provincial LEGAL CITATION: [To be provided] DESCRIPTION: Lawyers authorized to practise in Mexico or the United States and law firms headquartered in Mexico or the United States will be permitted to provide foreign legal consultancy services and to establish for that purpose, in British Columbia, Ontario, and Saskatchewan, and in any other province that so permits by the date of entry into force of this Agreement. ANNEX VI Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Cinema) INDUSTRY CLASSIFICATION: CMAP 941102 Private Services of Distribution and Films Rental LEGAL CITATION: Ley de la Industria Cinematogr fica (Motion Picture Industry Law) Reglamento de la Ley de la Industria Cinematogr fica. (Regulations of the Motion Picture Industry Law) DESCRIPTION: Cross-Border Services A distributor of films produced outside of Mexico is required to provide to the Cineteca Nacional no more than one copy of two film titles of each five film titles imported by such distributor into Mexico. ============================================================================= ANNEX VI Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951002 Legal Services and Foreign Legal Consultants LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: [to be provided] DESCRIPTION: 1. Mexico will ensure that: (a) a lawyer authorized to practice in a province of Canada or a state of the United States of America who seeks to practice as a foreign legal consultant in Mexico shall be granted a license to do so if lawyers licensed in Mexico are accorded equivalent treatment in such province or state; and (b) a law firm headquartered in a province of Canada or a state of the United States of America that seeks to establish in Mexico to provide legal services through licensed foreign legal consultants shall be authorized to do so if law firms headquartered in Mexico are accorded equivalent treatment in such province or state. 2. Mexico will, pursuant to paragraph 1(a), deny benefits to foreign lawyers employed by or associated with foreign legal consultancy firms established in Mexico, pursuant to paragraph 1(b), if such lawyers are not authorized to practice in a province of Canada or a state of the United States of America that authorizes lawyers licensed in Mexico to practice as foreign legal consultants in its territory. 3. Subject to paragraphs 1 and 2, Mexico will adopt rules and procedures regarding the practice of foreign legal consultants in Mexico, including matters related to association and hiring of lawyers licensed in Mexico. ============================================================================= ANNEX VI Schedule of Mexico SECTOR: Transportation SUBSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for Construction Materials CMAP 711202 Road Transport Moving Services CMAP 711203 Other Services of Specialized Cargo Transportation CMAP 711204 General Trucking Services CMAP 711311 Inter-City Busing Services CMAP 711318 School and Tourist Transportation Services (limited to Tourist Transportation Services) LEGAL CITATION: Federal regulations will be established in relation to leasing and rental operations. DESCRIPTION: An enterprise authorized in Mexico to provide bus or truck transportation services may use equipment of its own, leased vehicles with option to purchase (financial leasing), leased vehicles (operational leasing), or short-term rental vehicles. ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1409 (Staffing) MEASURE: U.S. citizenship requirements for chief executive officers of national banks not affiliated or owned by foreign banks LEVEL OF GOVERNMENT: Federal LEGAL CITATION: The National Bank Act, 12 U.S.C.  72. DESCRIPTION: All directors of a national bank must be citizens of the United States. Because it is also required that chief executive officers of all national banks be directors, a chief executive officer of a national bank must be a citizen of the United States. An exception from these requirements exists for national banks affiliated or owned by foreign banks. Such banks are only required to have citizens constitute a simple majority of the directors and need not employ citizens as chief executive officers. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1409 (Staffing) MEASURE: Residency requirements on boards of directors of national banks LEVEL OF GOVERNMENT: Federal LEGAL CITATION: The National Bank Act, 12 U.S.C.  72. DESCRIPTION: Two-thirds of the directors of a national bank must have (i) resided for one year prior to their election, and (ii) continue to reside, in the state in which the bank is located or within 100 miles of the national bank. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Limitations on acquisition of interests in banks on an interstate basis LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Bank Holding Company Act of 1956, as amended, 12 U.S.C.  1842(d); International Banking Act of 1978, as amended, 12 U.S.C.  3103(a)(5). DESCRIPTION: Federal authorities may not approve the establishment of, or acquisition of an interest in, a bank subsidiary within a state ("the host state") by a foreign bank that has a full-service branch or bank subsidiary in the United States, unless the measures of the host state expressly permit the transaction. Thus, foreign banks may not acquire interests in banks in some states on the same basis as domestic bank holding companies from the foreign bank's home state. For purposes of determining national treatment under paragraph 6(b) of Article 1407, foreign banks are located in their "home state," as that term is used in the International Banking Act of 1978. The following types of measures, inter alia, fall into this category: (a) Foreign banks are expressly excluded from the authority to own banks in certain regional holding company laws. (b) Foreign banks are implicitly excluded through a definition of eligible owner in certain state laws that requires a majority of the parent bank's deposits to be in the United States, in a particular region of the United States, or in a particular state. (c) Foreign banks that do not already own a banking subsidiary in the United States are interpreted as not qualifying as an eligible "bank holding company" entitled to own a bank. DURATION:Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Limitations on ownership of corporations organized under section 25A of the Federal Reserve Act ("Edge corporations") LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Reserve Act, 12 U.S.C.  619. DESCRIPTION: Edge corporations (specialized international banking companies chartered under Federal law) may be owned by domestically-owned banks and bank holding companies, and by domestic non-bank companies willing to restrict their business activities to those closely related to banking. Foreign ownership of Edge corporations is limited to foreign banks and U.S. subsidiaries of foreign banks. Other foreign persons may neither directly nor indirectly own Edge corporations. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Exemption from limitations for federal- and state-owned companies that own banks LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Bank Holding Company Act of 1956, as amended, 12 U.S.C.  1841(b) DESCRIPTION: The Bank Holding Company Act does not apply to companies that are majority-owned by the Federal and state governments, whereas companies owned by foreign governments are not excepted. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Limitations on the ability of foreign banks to accept certain types of deposits through any form other than an insured banking subsidiary LEVEL OF GOVERNMENT: Federal LEGAL CITATION: International Banking Act of 1978, 12 U.S.C. 3104 (as amended by The Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.L. 102-242, Title II,  214(a)). DESCRIPTION: After December 19, 1991, in order to accept or maintain deposit accounts having balances of less than $100,000, a foreign bank must establish an insured banking subsidiary. As a result, foreign bank branches are prohibited from taking insured deposits unless engaged in that activity on December 19, 1991. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Limitations on membership in the Federal Reserve System LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Reserve Act, 12 U.S.C.  321, 221, 302; International Banking Act of 1978, 12 U.S.C.  3106(d). DESCRIPTION: Foreign banks with branches and agencies in the United States may not be members of the Federal Reserve System, and may thus not vote for directors of a Federal Reserve Bank. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Articles 1407 and 1408 (National Treatment, Most-Favored-Nation Treatment) MEASURE: Limitation on designation of foreign firms as primary dealers in U.S. government securities LEVEL OF GOVERNMENT: Federal LEGAL CITATION: The Primary Dealers Act of 1988, 22 U.S.C.  5341-5342. DESCRIPTION: The Primary Dealers Act of 1988 prohibits a foreign firm to be designated as a primary dealer in U.S. government debt obligations unless the home country of the foreign firm accords to U.S. firms the same competitive opportunities as are accorded to domestic firms in the underwriting and distribution of government debt instruments in the firm's home country. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Articles 1407, 1408 and 1409 (National Treatment, MFN Treatment, Staffing) MEASURE: Eligibility of foreign trust indentures LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Trust Indenture Act of 1939, 15 U.S.C.  77jjj(a)(1) and rules thereunder. DESCRIPTION: Under the Trust Indenture Act of 1939, foreign firms located outside the United States may be prohibited from acting as sole trustees under an indenture for debt securities sold in the United States if U.S. institutional trustees cannot act as sole trustee for securities sold in the foreign country. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Article 1409 (MFN Treatment) MEASURE: Special reserve bank account LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Rule 15c3-3 of the Securities Exchange Act of 1934, 17 C.F.R.  240.15c3-3. DESCRIPTION: Broker-dealers that maintain their principal place of business in Canada may maintain their reserve requirement at a Canadian bank subject to supervision by an authority of Canada; however, other foreign broker-dealers not in the U.S. or Canada must maintain reserves in the U.S. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Commodity Futures and Options TYPE OF RESERVATION: Articles 1405 and 1406 (Cross-Border Trade, New Financial Services) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Commodity Exchange Act, 7 U.S.C.  2. DESCRIPTION: Federal law prohibits the offer or sale of futures contracts on onions, options contracts on onions and options on futures contracts on onions in the United States and services related thereto. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Insurance TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 31 U.S.C.  9304 DESCRIPTION: Branches of foreign insurance companies are not permitted to provide surety bonds for U.S. Government contracts. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Differential treatment of foreign and domestic banks under the federal securities laws LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Advisors Act of 1940, 15 U.S.C.  80b-2 and  80b-3 and the rules thereunder. DESCRIPTION: Foreign banks may be required to register as investment advisers under the Investment Advisors Act of 1940 to engage in securities advisory services in the United States, while domestic banks are exempt from registration. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Securities TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Application of the disclosure provisions of the federal securities laws to the U.S. government, government-owned enterprises, and state and local governments. LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Securities Exchange Act of 1934, 15 U.S.C.  78c(a)(12)(A)(i), 78c(a)(12)(A)(ii) and the rules thereunder; Securities Act of 1933, 15 U.S.C.  77c(a)(2) and the rules thereunder. DESCRIPTION: U.S. federal, state and local government securities are exempt from the registration and disclosure provisions of the federal securities laws. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Securities TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Application of the federal securities laws to the U.S. government, government owned enterprises, and state and local governments LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Company Act of 1940, 15 U.S.C.  80a-2(b), and the rules thereunder; Investment Advisers Act of 1940, 15 U.S.C.  80-2(b), and the rules thereunder. DESCRIPTION: The Investment Company Act of 1940 and the Investment Advisers Act of 1940 do not apply to investment companies and investment advisers, respectively, that are owned by the federal, state and local governments, whereas investment companies and investment advisers owned by foreign governments are not excepted. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Application of the federal securities laws to the U.S. government, government-owned enterprises, and state and local governments. LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Securities Exchange Act of 1934, 15 U.S.C.  78c(a)(43)(A), 78c(a)(44)(A) and 78c(d) the rules thereunder. DESCRIPTION: No provision of the Exchange Act applies to the U.S. government. Thus, U.S.-owned exchanges, clearing agencies, brokers, dealers, and banks are not regulated under the Exchange Act. In addition, U.S. government enterprises are exempt from government securities broker and dealer registration and regulation. State and local government officials are also exempted from the registration as brokers, dealers, and municipal securities dealers. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: LEVEL OF GOVERNMENT: Federal LEGAL CITATION: DESCRIPTION: Foreign government owned firms are not entitled to extend credit backed by the guarantees of the Commodity Credit Corporation. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States The United States shall set out any existing non-conforming measures maintained by California, Florida, Illinois, New York, Ohio, and Texas by the date of entry into force of this Agreement. Existing non-conforming state measures of all other states shall be set out by January 1, 1995. ============================================================================= ANNEX VII PART B Schedule of the United States The United States reserves the right to derogate from Articles 1405(1) and 1408 for the securities sector with respect to Canada. With respect to these Articles, the United States may adopt or maintain measures affecting cross-border trade in securities services that are more restrictive than measures existing on the date of entry into force of this Agreement. ============================================================================= ANNEX VII PART C Schedule of the United States The United States commits to permit an eligible grupo financiero that, in formation of the grupo in Mexico before the entry into force of this Agreement, lawfully acquires an eligible Mexican bank and a Mexican securities firm which owns or controls a securities company in the United States, to continue to engage through that U.S. securities company in the activities in which that securities company was engaged on the date of acquisition by the grupo for a time period of five years from the date of such acquisition. The U.S. securities firm: (i) shall not be permitted to expand through acquisition in the United States during such period; and (ii) shall be subject to measures consistent with national treatment that restrict transactions between the firms and their affiliates. For purposes of this paragraph: an "eligible grupo financiero" is a Mexican financial group that has not previously benefitted from this commitment; and an "eligible Mexican bank" means any Mexican instituci˘n de cr‚dito that owned or controlled a subsidiary bank, or operated a branch or agency, in the United States on January 1, 1992. ============================================================================= ANNEX VII PART D Schedule of the United States For the purposes of Article 1413(2), the United States designates the Department of the Treasury as its governmental agency responsible for banking and other financial services, and the United States Department of Commerce for insurance services. ANNEX VII PART A Schedule of Canada SECTOR: Financial Services SUB-SECTOR: Insurance TYPE OF RESERVATION: Article 1404 (Cross-Border Trade) MEASURE: Limitation on purchase of reinsurance from non-resident reinsurers LEVEL OF GOVERNMENT: Federal LEGAL CITATION: The Insurance Companies Act; S.C. 1991, c.47; Reinsurance (Canadian Companies) Regulations; SOR/92-298; Reinsurance (Foreign Companies) Regulations; SOR/92-596. DESCRIPTION: The purchase of reinsurance services by a Canadian insurer, other than a life insurer or a reinsurer, from a non- resident reinsurer is limited to no more than 25 percent of the risks undertaken by the insurer purchasing the reinsurance. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Canada Canada shall set out any existing non-conforming measure maintained at the provincial level by the date of entry into force of this Agreement. ============================================================================= ANNEX VII PART B Schedule of Canada Canada reserves the right to derogate from Article 1405(1) for the securities sector. With respect to this Article, Canada reserves the right to adopt and maintain new measures affecting cross-border trade in securities services that are more restrictive than such measures existing on the entry into force of this Agreement. ============================================================================= ANNEX VII PART C Schedule of Canada For the purposes of restrictions that limit foreign ownership of Canadian-controlled financial institutions and for the purposes of limitations on total domestic assets of foreign bank subsidiaries in Canada, Canada commits to give to Mexico the same treatment that Canada gives under the Bank Act, the Insurance Companies Act (Canada), the Trust and Loan Companies Act (Canada), and the Investment Companies Act, to United States residents and to institutions controlled by United States residents. Canada commits to exempt foreign bank subsidiaries in Canada controlled by Mexican residents from the requirement to obtain approval of the Minister of Finance prior to opening branches within Canada in the same manner as it exempts foreign bank subsidiaries in Canada controlled by United States residents. ============================================================================= ANNEX VII PART D Schedule of Canada For the purposes of Article 1413(2), Canada designates the Department of Finance of Canada as its governmental agency responsible for financial services. ============================================================================= ANNEX VII PART E Schedule of Canada For the purposes of restrictions that limit foreign ownership of Canadian-controlled financial institutions and for the purposes of restrictions on total domestic assets of foreign bank subsidiaries in Canada, an enterprise of another Party, to be considered an enterprise of such other Party must meet the terms and conditions of being controlled by one or more residents of the other Party. For these purposes: (a) an enterprise controlled by one or more residents of another Party means controlled, directly or indirectly by such residents; (b) an enterprise that is a body corporate is controlled by one or more persons if (i) securities of the enterprise to which are attached more than fifty percent of the votes that may be cast to elect directors of the enterprise are beneficially owned by the person or persons and the votes attached to those shares are sufficient, if exercised, to elect a majority of the directors of the enterprise, and (ii) the person or persons has or have, directly or indirectly, control in fact of the enterprise, (c) an enterprise that is an unincorporated entity is controlled by one or more persons if (i) more than fifty percent of ownership interests, however designated, into which the enterprise is divided is beneficially owned by the person or persons and the person or persons are able to direct the business and affairs of the enterprise, and (ii) the person or persons has or have, directly or indirectly, control in fact of the enterprise, (d) a limited partnership is controlled by the general partner; (e) ordinarily resident in a country generally means sojourning in that country for a period of, or periods the aggregate of which is, 183 days or more during the relevant year; and (f) a person ordinarily resident in another Party means; (i) in the case of an enterprise, an enterprise legally constituted or organized under the laws of that Party and controlled, directly or indirectly, by one or more individuals of that Party described in clause (ii), and (ii) in the case of an individual, an individual who is ordinarily resident in the territory of that Party. ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Holding Companies INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Regular las Agrupaciones Financieras (Law Regulating Financial Groups), Art. 18 DESCRIPTION: Aggregate foreign investments in financial holding companies are limited to 30% of common stock capital (capital ordinario). These limits do not apply to financial holding companies established pursuant to Parts B and C of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Commercial Banks (Instituciones de Cr‚dito) INDUSTRY CLASSIFICATION: 811030 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Instituciones de Cr‚dito (Law of the Credit Institutions), Arts. 11 y 15 DESCRIPTION: Aggregate foreign investments in commercial banks are limited to 30% of common stock capital (capital ordinario). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Securities Firms (Casas de Bolsa) INDUSTRY CLASSIFICATION: 812001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitations on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley del Mercado de Valores (Law of the Stock Market), Art. 17-II DESCRIPTION: Aggregate foreign investments in securities firms are limited to 30% of capital (capital social) and individual foreign investments are limited to 10% of capital, while individual investments by Mexicans may, with approval from the Ministry of Finance and Public Credit, rise to 15% of capital. These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Securities Specialists (Especialistas Burs tiles) INDUSTRY CLASSIFICATION: 812001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitations on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley del Mercado de Valores (Law of the Stock Market), Art. 17-II DESCRIPTION: Aggregate foreign investments in securities specialists are limited to 30% of capital (capital social) and individual foreign investments are limited to 10% of capital, while individual investments by Mexicans may, with approval from the Ministry of Finance and Public Credit, rise to 15% of capital. These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: General Deposit Warehouses (Almacenes Generales de Dep˘sito) INDUSTRY CLASSIFICATION: 811042 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Leasing Companies (Arrendadoras Financieras) INDUSTRY CLASSIFICATION: 811043 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Factoring Companies (Empresas de Factoraje Financiero) INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Credit Unions (Uniones de Cr‚dito) INDUSTRY CLASSIFICATION: 811041 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign capital investment in these entities is prohibited. This limitation does not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Foreign Exchange Firms (Casas de Cambio) INDUSTRY CLASSIFICATION: 811044 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit Organizations and Activities), Art. 82-III DESCRIPTION: Foreign investors may not participate in the capital of these entities. This limitation does not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Agents (Comisionistas Financieros) INDUSTRY CLASSIFICATION: 811045 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Instituciones de Cr‚dito (Law of Credit Institutions), Art. 92 Reglas de SHCP (Regulations of the Ministry of Finance and Public Credit) DESCRIPTION: Foreign investors may not participate in the capital of these entities. This limitation does not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Bonding Companies (Instituciones de Fianzas) INDUSTRY CLASSIFICATION: 813001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Instituciones de Fianzas (Federal Law of Bonding Companies), Art. 15-XIII DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Insurance Companies (Instituciones de Seguros) INDUSTRY CLASSIFICATION: 813002 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Instituciones y Sociedades Mutualistas de Seguros (General Law on Insurance Institutions and Mutual Societies), Art. 29-I DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Holding Companies INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Limitation on foreign ownership MEASURE: Articles 1404, 1407 (Establishment, National Treatment) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Regular las Agrupaciones Financieras (Law Regulating Financial Groups), Art. 18 DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a financial holding company. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Commercial Banks (Instituciones de Cr‚dito) INDUSTRY CLASSIFICATION: 811030 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Instituciones de Cr‚dito (Law of Credit Institutions), Art. 15 DESCRIPTION: Foreign entities that exercise governmental functions may not invest, directly or indirectly, in a commercial bank. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Securities Firms (Casas de Bolsa) INDUSTRY CLASSIFICATION: 812001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley del Mercado de Valores (Law of the Stock Market), Art. 17-II-b DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a securities firm. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Securities Specialists (Especialistas Burs tiles) INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley del Mercado de Valores (Law of the Stock Market), Art. 17-II DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a securities specialist. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: General Deposit Warehouses (Almacenes Generales de Dep˘sito) INDUSTRY CLASSIFICATION: 811042 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a general deposit warehouse. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Leasing Companies (Arrendadoras Financieras) INDUSTRY CLASSIFICATION: 811043 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a financial leasing company. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Factoring Companies (Empresas de Factoraje Financiero) INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a financial factoring company. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Savings and Loan Companies (Sociedades de Ahorro y Pr‚stamo) INDUSTRY CLASSIFICATION: 811046 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr‚dito (General Law of Auxiliary Credit Organizations and Activities), Art. 38-G DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a savings and loan company. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Managing Companies of Investment Companies (Sociedades Operadoras de Sociedades de Inversi˘n) INDUSTRY CLASSIFICATION: 812003 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Sociedades de Inversi˘n (Law of Investment Companies), Art. 29-VI DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in an operator of an investment company. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Investment Companies (Sociedades de Inversi˘n) INDUSTRY CLASSIFICATION: 812002 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Sociedades de Inversi˘n (Law of Investment Companies), Art. 9-III DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in an investment company. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Bonding Companies (Instituciones de Fianzas) INDUSTRY CLASSIFICATION: 813001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Instituciones de Fianzas (Federal Law of Bonding Companies), Art. 15 bis-IV-a DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a bonding company. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Insurance Companies (Instituciones de Seguros) INDUSTRY CLASSIFICATION: 813002 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Instituciones y Sociedades de Mutualistas de Seguros (General Law on Insurance Institutions and Mutual Societies), Art. 29-I DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in an insurance company. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Insurance INDUSTRY CLASSIFICATION: 813002 TYPE OF RESERVATION: Article 1405 (Cross-Border Trade) MEASURE: Restrictions on cross-border insurance LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Instituciones y Sociedades Mutualistas de Seguros (General Law on Insurance Institutions and Mutual Societies), Art. 3§ DESCRIPTION: Mexico reserves its existing prohibitions and restrictions on cross-border trade in insurance services, which do not now include restrictions on the right of individuals to purchase, by physical mobility, life and health insurance. Mexico is not reserving its present restrictions with respect to the ability of residents of Mexico to purchase from non-resident insurance companies of another Party, the following types of insurance: (a) tourist insurance (including travel accident and motor vehicle insurance for non- resident tourists, but not insurance of risks of liability to third parties) for individuals, purchased without solicitation via physical mobility of such individuals; (b) cargo insurance to and from each Party purchased without solicitation for goods in international transit from point of origin to final destination and for the vehicle during the period of its use in transportation of such goods, provided such vehicle is licensed and registered outside Mexico (including vehicles in maritime shipping, commercial aviation, space launching and freight (including satellites)); and (c) intermediary services incidental to (a) and (b) without solicitation. DURATION: For greater clarity, this reservation does not apply to reinsurance. ============================================================================= ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Banking INDUSTRY CLASSIFICATION: 811021 811030 TYPE OF RESERVATION: Articles 1404, 1405, 1407 (Establishment, Cross-Border Trade, National Treatment) MEASURE: Activities reserved for development banks LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Org nica de Nacional Financiera (Organic Law of Nacional Financiera), Art. 7; Ley Org nica del Banco Nacional del Ej‚rcito, la Fuerza A‚rea y la Armada (Organic Law of the National Bank of the Army, Air Force and Navy) DESCRIPTION: The following activities are reserved solely to Mexican development banks: (1) acting as custodians of securities and cash funds deposited by or in the administrative or judiciary authorities, and acting as custodian of goods that have been confiscated according to Mexican measures; (2) managing the savings funds, retirement plans and any other funds or property of the personnel of the SecretarĦa de la Defensa Nacional, SecretarĦa de Marina and the Mexican armed forces, and performing other financial activities pertaining to the financial resources of such personnel. DURATION: Indeterminate ANNEX VII ============================================================================= PART B Schedule of Mexico TRANSITIONAL EXCEPTIONS Reservations to Articles 1404 and 1407 1. The provisions of paragraphs 2 through 10 of this Part B of the Schedule of Mexico shall apply during the Transition Period, except as otherwise specifically provided in paragraphs 9 and 10 of this Part B. 2. For the types of financial institutions listed in the chart in this paragraph 2, the maximum capital to be authorized for a Foreign Financial Affiliate, measured as a percentage of the aggregate capital of all financial institutions of the same type in Mexico, shall not exceed the percentage set forth in the chart in this paragraph 2: Type of Financial Institution Maximum Individual Capital to be Authorized (Percentage of the Aggregate Capital of all Institutions of the same type) Commercial Banks 1.5% Securities Firms 4.0% Insurance Companies Casualty 1.5% Life and Health 1.5% In the case of an acquisition by a financial service provider of another Party of a financial institution established in Mexico, the sum of the authorized capital of the acquired institution and the authorized capital of any Foreign Financial Affiliate already controlled by the acquiror may not, at the time of acquisition or at any time thereafter during the Transition Period, exceed the applicable limit set forth in the chart in this paragraph 2. This paragraph 2 will not apply to new or existing Mexican insurance companies invested in by insurance providers of another Party (or their affiliates) pursuant to paragraph 7 of this Part 3 or paragraph 4 of Part C of the Schedule of Mexico. 3. For purposes of the proper administration of the capital limits in the Schedule of Mexico, the following provisions shall apply: i. Each Foreign Financial Affiliate shall have a paid-in capital not less than that authorized by Mexico at the time of approval of its establishment. The authorized capital shall be determined by Mexico. After the time of establishment, Mexico may permit authorized capital to exceed paid-in capital. Authorized capital shall not be reduced by any measure of Mexico (other than prudential measures) below paid-in capital. The maximum size of the operations of each Foreign Financial Affiliate shall be determined, on a national treatment basis, as a function of the lesser of its capital or its authorized capital. ii. Mexico reserves the right to impose limitations on transfers of assets or liabilities by Foreign Financial Affiliates that have the effect of evading the capital limits set forth in the Schedule of Mexico. This subparagraph does not apply to bona fide transfers of funds to make overnight deposits or bona fide transfers of banking liabilities. 4. A Foreign Financial Affiliate shall not issue subordinated debentures, except to its parent outside of Mexico. 5. The aggregate of the authorized capital of all Foreign Financial Affiliates of the same type, measured as a percentage of the aggregate capital of all financial institutions of such type in Mexico, shall not exceed the percentage set forth in the chart in this paragraph 5 for that type of institution, except for the case of insurance which is addressed in paragraph 6 of this Part B. Beginning one year after the entry into force of the Agreement, these initial limits shall increase annually in equal increments so as to reach the final limits specified in the chart in this paragraph 5 at the beginning of the last year of the Transition Period. Type of Financial Institution Percentage of Total Capital Initial Final Limit Limit Commercial banks 8% 15% Securities firms 10% 20% Factoring companies 10% 20% Leasing companies 10% 20% Any capital in existence as of the date of signature of this Agreement of a foreign bank branch established in Mexico prior to such date shall be excluded from each of the aggregate capital limits referred to in the Schedule of Mexico. 6. In the case of insurance, the aggregate of the authorized capital of all Foreign Insurance Affiliates, measured as a percentage of the aggregate capital of all insurance companies in Mexico, shall not exceed the percentage set forth in the chart in this paragraph 6 for the respective one-year periods beginning on each of the following dates: Date Percentage of Total Capital January 1, 1994 6% January 1, 1995 8% January 1, 1996 9% January 1, 1997 10% January 1, 1998 11% January 1, 1999 12% If the entry into force of the Agreement occurs on a date prior to January 1, 1994, that date shall become the initial date for purposes of this chart, and each succeeding anniversary of the entry into force of the Agreement shall become the next succeeding date in this chart, with the percentages listed in this chart applying to each of the respective periods as so adjusted. If the entry into force of the Agreement occurs on a date after January 1, 1994, the dates and corresponding limits in this chart shall nonetheless not be changed. The individual and aggregate capital limits described in paragraphs 2 and 6 of this Part B shall be measured separately (through separate accounting) for life and non-life insurance operations; but both types of insurance operations may be conducted either by a single or separate Foreign Financial Affiliates. 7. Insurance providers of another Party may elect an alternative procedure for entering Mexico through phasing-in an equity interest in a new or existing Mexican insurance company, and thereby exempt such Mexican company from the capital limits of paragraphs 2 and 6 of this Part B. In order to qualify, the percentage of the Mexican insurance company's voting common stock that is owned by Mexican persons must not be less than the levels set forth in the chart in this paragraph 7 for the respective one-year periods beginning on each of the following dates: Date Mexican Interest January 1, 1994 70% January 1, 1995 65% January 1, 1996 60% January 1, 1997 55% January 1, 1998 49% January 1, 1999 25% If the entry into force of the Agreement occurs on a date prior to January 1, 1994, that date shall become the initial date for purposes of this chart, and each succeeding anniversary of the entry into force of the Agreement shall become the next succeeding date in this chart, with the percentages listed in this chart applying to each of the respective periods as so adjusted. If the entry into force of the Agreement occurs on a date after January 1, 1994, the dates and corresponding limits in this chart shall nonetheless not be changed. On and after January 1, 2000 (or, if the entry into force of the Agreement occurs on a date prior to January 1, 1994, on and after the sixth anniversary of such date), the percentage requirement of Mexican ownership set forth in this paragraph 7 shall no longer apply. This paragraph 7 is further modified by paragraph 4 of Part C of the Schedule of Mexico to the extent set forth therein. 8. The aggregate assets of Foreign Financial Affiliates that are limited scope financial institutions within the meaning of paragraph 2 of Part C of the Schedule of Mexico shall not exceed 3% of the sum of (1) the aggregate assets of all commercial banks in Mexico plus (2) the aggregate assets of all types of limited scope financial institutions in Mexico. Lending by affiliates of automobile manufacturing companies with respect to their vehicles shall not be subject to or taken into account in determining compliance with this 3% limit. 9. The capital limits in paragraphs 2, 5, 6 and 8 of this Part B shall be removed at the end of the Transition Period. If the sum of the authorized capital of Foreign Financial Affiliates, measured as a percentage of the aggregate capital of all financial institutions of such type in Mexico, reaches the percentage set forth in the chart in this paragraph 9 for such type of institutions, then Mexico shall have the right, once during the four years following the end of the Transition Period, to freeze such aggregate capital percentage at its then-existing level: Commercial banks 25% Securities firms 30% If applied, such a restriction will have a duration not to exceed a period of 3 years. 10. No additional license to establish a Foreign Financial Affiliate shall be granted during the Transition Period (and, in the case of paragraph 9 of this Part B, during the additional periods described in that paragraph) if after such issuance the sum of the authorized capital of all Foreign Financial Affiliates of the same type would exceed the applicable percentage limit for that type of institution in paragraph 5, 6, 8 or 9 of this Part B. OTHER EXCEPTIONS 11. The provisions of the following paragraphs 12 through 15 of this Part B shall apply immediately upon the entry into force of the Agreement and at all times thereafter, except as otherwise specifically provided in such paragraphs. Any amendment or modification to a measure adopted or maintained pursuant to paragraphs 12 through 15 of this Part B shall not decrease the conformity of the measure, as it existed immediately before such amendment or modification, with Articles 1404 to 1409 of the Agreement. Reservation to Article 1407 12. Mexico may require that a Foreign Financial Affiliate (other than a Foreign Insurance Affiliate) be wholly-owned by a financial service provider of another Party (except for directors' nominal qualifying shares). Mexico may also restrict any Foreign Financial Affiliate from establishing agencies, branches, or other direct or indirect subsidiaries in the territory of any other country. Reservations to Articles 1404 and 1407 13. Following the Transition Period, acquisition of a commercial bank established in Mexico, or of the assets or liabilities thereof, by a financial service provider of another Party will only be authorized by Mexico, subject to reasonable prudential considerations on a case by case basis, if the sum of the authorized capital of the acquired commercial bank and the authorized capital of any commercial bank in Mexico already controlled by the acquiror would not exceed 4% of the aggregate capital of all commercial banks in Mexico. 14. Mexico may adopt measures that (i) limit eligibility to establish a Foreign Financial Affiliate in Mexico to a financial service provider of another Party that is, directly or through any of its affiliates, engaged in the same general type of financial services in the territory of the other Party; and (ii) limit such provider (together with its affiliates) to no more than one institution of the same type in Mexico. In determining what types of operations a financial service provider of another Party is engaged in for purposes of the preceding sentence, all types of insurance shall be considered to be only one type of financial service; but both life and non-life insurance operations may be conducted either by a single or separate Foreign Financial Affiliates. Reservation to Articles 1404, 1405 and 1407 15. The existing activities and operations of Mexican governmental insurance programs conducted by Aseguradora Mexicana, S.A. or Aseguradora Hidalgo, S.A. (including insurance for government employees, agencies, instrumentalities and public entities) are excluded from Articles 1404, 1405 and 1407 for so long as such firm is controlled by the government of Mexico and for a commercially reasonable time after such governmental control ceases. Reservation to Article 1405 16. In order not to impair the conduct of Mexico's monetary and exchange rate policies, non-resident financial service providers of another Party shall not be permitted to provide financial services into the territory of Mexico or to residents of Mexico, and residents of Mexico may not purchase financial services from non-resident financial service providers of another Party, if such transactions are denominated in Mexican pesos. Reservation to Articles 1404-1409 17. The benefits of this Agreement shall not be extended to a foreign bank branch existing in Mexico on the date of entry into force of this Agreement. The existing legal regime will continue to apply to such a branch for so long as it operates in that form. Such a branch shall be permitted to convert to a subsidiary pursuant to the terms of this Schedule, and upon conversion shall be covered by this Agreement. The existing capital of such branch on the date of signature of this Agreement shall not be counted against such Foreign Commercial Bank Affiliate's individual capital limit, or the aggregate capital limits for commercial banks in the event of conversion. Definitions For purposes of Part B of Mexico's schedule: capital means the following, as defined in Mexican measures, applied on a national treatment basis: Type of Financial Institution Concept of "Capital" commercial banks capital neto securities firms capital global insurance companies casualty requerimiento bruto de solvencia (allocation to casualty insurance) life and health requerimiento bruto de solvencia (allocation to life and health insurance) factoring companies capital contable leasing companies capital contable Foreign Commercial Bank Affiliate means a Foreign Financial Affiliate that is a commercial bank; Foreign Financial Affiliate means a financial institution established in Mexico and owned and controlled by a financial service provider of another Party; Foreign Insurance Affiliate means a Foreign Financial Affiliate that is an insurance company; and Transition Period means the period beginning with the entry into force of the Agreement and ending on the earlier of i) January 1, 2000, or ii) six years from the entry into force of the Agreement. ============================================================================= ANNEX VII PART C Schedule of Mexico SPECIFIC COMMITMENTS 1. Mexico shall retain discretion to approve, on a case-by-case basis, any affiliation of a commercial bank or securities firm with a commercial or industrial corporation that has a commercial presence in Mexico, if Mexico determines that such affiliation is harmless and, in the case of banking, either (a) not substantial, or (b) the financial-related activities of the commercial or industrial commercial corporation are at least 90 percent of its annual income worldwide, and the non-financial activities of such commercial or industrial corporation are of a type that Mexico determines to be acceptable. Affiliation with a non-resident commercial or industrial corporation that has no commercial presence in Mexico will not be a reason for denial of an application to establish or acquire a commercial bank or securities firm in Mexico. 2. Non-bank financial service providers of another Party shall be permitted to establish one or more limited scope financial institutions in Mexico to provide separately consumer lending, commercial lending, mortgage lending or credit card services on terms no less favorable than those applied to like domestic firms under Mexican measures. Mexico may permit lending services closely related to the principal authorized business of a limited scope financial institution to be carried out by that institution. Such firms shall be provided the opportunity to raise funds in the securities market for business operations subject to normal terms and conditions. Mexico may restrict such limited scope financial institutions from taking deposits. 3. Within two years of the entry into force of the Agreement, Mexico shall conduct a study of the desirability and, if desirable, the possible methods of establishing limited scope securities firms which would have more limited powers than current securities firms. Such limited scope securities firms would be subject to differing capital requirements, depending on the type and extent of business conducted, that would permit lower minimum capital requirements than those currently applicable to Mexican securities firms. The basis of the study would be prudential considerations and opportunities for investment in the securities sector. As part of the second annual meeting of the Committee required under Article 1414, Mexico shall report to the other Parties on the outcome of the study, including any plans for the establishment of new categories of securities firms. 4. Notwithstanding Part B (paragraph 7) of the Schedule of Mexico, an insurance provider of another Party, together with its affiliates, that as of July 1, 1992 collectively have an active investment or ownership interest that has been specifically approved by the Mexico of 10% or more in a Mexican insurance company may: (1) exercise any contract right or option in existence as of July 1, 1992 with respect to ownership interests in such Mexican insurance company; and (2) effective the earlier of January 1, 1996 or two years following the date of entry into force of the Agreement, acquire a controlling interest of up to 100% in such Mexican insurance company. Before the effective date described in clause (2) of the preceding sentence, an insurance provider of another Party (together with its affiliates) described in that sentence may exercise any existing contract right or option described in clause (1) of that sentence, and choose to maintain its existing interest or expand its interest in such Mexican insurance company to the extent consistent with Part B (paragraph 7) of the Schedule of Mexico. Mexico shall maintain discretion to permit acceleration of the schedule for equity participation in a Mexican insurance company by an insurance provider of another Party described in the first sentence of this paragraph. 5. A bank or securities provider of another Party that is authorized to and establishes or acquires a commercial bank or securities firm, respectively, in Mexico may also establish a financial holding company in Mexico, and thereby establish or acquire other types of financial institutions in Mexico, under the terms of Mexican measures. 6. Mexico shall administer its licensing and approval procedures during the Transition Period (as defined in Part B of the Schedule of Mexico) in a manner that does not deny the benefits of the liberalization of existing measures described in the Schedule of Mexico to enterprises of another Party ultimately controlled by nationals of that Party. ============================================================================= ANNEX VII PART D Schedule of Mexico The agency of the government of Mexico responsible for financial services is the SecretarĦa de Hacienda y Cr‚dito P£blico. Annex 0 SECTION III Animal or Vegetable Fats and Oils and Their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes (Ch. 15) Chapter 15 Animal or Vegetable Fats and Oils and Their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes 15.01-15.18 A change to headings 15.01 through 15.18 from any other chapter. 1519.11-1519.13 A change to subheadings 1519.11 through 1519.13 from any other heading, except from heading 15.20. 1519.19 A change to subheading 1519.19 from any other subheading. 1519.20 A change to subheading 1519.20 from any other heading, except from heading 15.20. 1520.10 A change to subheading 1520.10 from any other heading, except from heading 15.19. 1520.90 A change to subheading 1520.90 from any other subheading. 15.21-15.22 A change to headings 15.21 through 15.22 from any other chapter. Annex 00 SECTION IX Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork; Manufactures of Straw, of Esparto or of Other Plaiting Materials; Basketware and Wickerwork (Ch. 44-46) Chapter 44 Wood and Articles of Wood; Wood Charcoal 44.01-44.21 A change to headings 44.01 through 44.21 from any other heading, including another heading within that group. Chapter 45 Cork and Articles of Cork 45.01-45.02 A change to headings 45.01 through 45.02 from any other chapter. 45.03-45.04 A change to headings 45.03 through 45.04 from any other heading outside that group. Chapter 46 Manufactures of Straw, of Esparto or of Other Plaiting Materials; Basketware and Wickerwork 46.01 A change to heading 46.01 from any other chapter. 46.02 A change to heading 46.02 from any other heading. Annex 00 SECTION V Mineral Products (Ch. 25-27) Chapter 25 Salt; Sulphur; Earths and Stone; Plastering Materials, Lime and Cement 25.01-25.30 A change to headings 25.01 through 25.30 from any other chapter. Chapter 26 Ores, Slag and Ash 26.01-26.21 A change to headings 26.01 through 26.21 from any other chapter. Chapter 27 Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral Waxes 27.01-27.03 A change to headings 27.01 through 27.03 from any other chapter. 27.04 A change to heading 27.04 from any other heading. 27.05-27.09 A change to headings 27.05 through 27.09 from any other chapter. 27.10-27.15 A change to headings 27.10 through 27.15 from any other heading outside that group. 27.16 A change to heading 27.16 from any other heading. Annex 00 SECTION VI Products of the Chemical or Allied Industries (Ch. 28-38) Chapter 28 Inorganic Chemicals; Organic or Inorganic Compounds of Precious Metals, of Rare- Earth Metals, of Radioactive Elements or of Isotopes 28.01-28.24 A change to subheadings 2801.10 through 2824.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2801.10 through 2824.90 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 2825.10-2825.60 A change to subheadings 2825.10 through 2825.60 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2825.10 through 2825.60 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 2825.70 A change to subheading 2825.70 from any other subheading, except from subheading 2613.10. 2825.80-2825.90 A change to subheadings 2825.80 through 2825.90 from any chapter, except from Chapters 28 through 38; or A change to subheadings 2825.80 through 2825.90 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content must be not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 28.26-28.29 A change to subheadings 2826.11 through 2829.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2826.11 through 2829.90 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 2830.10-2830.30 A change to subheadings 2830.10 through 2830.30 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2830.10 through 2830.30 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 2830.90 A change to subheading 2830.90 from any other subheading, except from subheading 2613.90. 28.31-28.40 A change to subheadings 2831.10 through 2840.30 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2831.10 through 2840.30 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 2841.10-2841.60 A change to subheadings 2841.10 through 2841.60 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2841.10 through 2841.60 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 2841.70 A change to subheading 2841.70 from any other subheading, except from subheading 2613.10. 2841.80-2841.90 A change to subheadings 2841.80 through 2841.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2841.80 through 2841.90 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 28.42-28.51 A change to subheadings 2842.10 through 2851.00 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2842.10 through 2851.00 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 29 Organic Chemicals 29.01-29.42 A change to subheadings 2901.10 through 2942.00 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2901.10 through 2942.00 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 30 Pharmaceutical Products 30.01 A change to subheadings 3001.10 through 3001.90 from any other heading; or A change to subheadings 3001.10 through 3001.90 from any other subheading within heading 30.01, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 30.02 A change to subheadings 3002.10 through 3002.90 from any other heading; or A change to subheadings 3002.10 through 3002.90 from any other subheading within heading 30.02, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 30.03 A change to subheadings 3003.10 through 3003.90 from any other heading; or A change to subheadings 3003.10 through 3003.90 from any other subheading within heading 30.03, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 30.04 A change to subheadings 3004.10 through 3004.90 from any other heading, except from heading 30.03; or A change to subheadings 3004.10 through 3004.90 from any other subheading within heading 30.04, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 30.05 A change to subheadings 3005.10 through 3005.90 from any other heading; or A change to subheadings 3005.10 through 3005.90 from any other subheading within heading 30.05, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 30.06 A change to subheadings 3006.10 through 3006.60 from any other heading; or A change to subheadings 3006.10 through 3006.60 from any other subheading within heading 30.06, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 31 Fertilisers 31.01-31.05 A change to subheadings 3101.00 through 3105.90 from any other chapter; or A change to subheadings 3101.00 through 3105.90 from any other subheading within Chapter 31, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 32 Tanning or Dyeing Extracts; Tannins and Their Derivatives; Dyes, Pigments and Other Colouring Matter; Paints and Varnishes; Putty and Other Mastics; Inks 32.01-32.03 A change to subheadings 3201.10 through 3203.00 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3201.10 through 3203.00 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3204.11-3204.16 A change to subheadings 3204.11 through 3204.16 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3204.11 through 3204.16 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3204.17 For any colour, as defined under the Colour Index, identified in the List of Colours below, a change to subheading 3204.17 from any other subheading. List of Colours pigment yellow: 1, 3, 16, 55, 61, 62, 65, 73, 74, 75, 81, 97, 120, 151, 152, 154, 156, and 175 pigment orange: 4, 5, 13, 34, 36, 60, and 62 pigment red: 2, 3, 5, 12, 13, 14, 17, 18, 19, 22, 23, 24, 31, 32, 48, 49, 52, 53, 57, 63, 112, 119, 133, 146, 170, 171, 175, 176, 183, 185, 187, 188, 208, and 210; or For any colour, as defined under the Colour Index, not identified in the List of Colours above: 1) a change to subheading 3204.17 from any other subheading, except from Chapter 29; or 2) a change to subheading 3204.17 from any other subheading within Chapter 29, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3204.19-3204.90 A change to subheadings 3204.19 through 3204.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3204.19 through 3204.90 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 32.05 A change to heading 32.05 from any other heading. 32.06-32.07 A change to subheadings 3206.10 through 3207.40 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3206.10 through 3207.40 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 32.08-32.10 A change to headings 32.08 through 32.10 from any other heading outside that group. 32.11-32.12 A change to headings 32.11 through 32.12 from any other heading outside that group. 32.13-32.15 A change to headings 32.13 through 32.15 from any other heading outside that group, except from headings 32.08 through 32.10. Chapter 33 Essential Oils and Resinoids; Perfumery, Cosmetics or Toilet Preparations 33.01 A change to subheadings 3301.11 through 3301.90 from any other chapter; or A change to subheadings 3301.11 through 3301.90 from any other subheading within Chapter 33, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 33.02 A change to heading 33.02 from any other heading, except from headings 22.07 through 22.08. 33.03 A change to heading 33.03 from any other chapter; or A change to heading 33.03 from any other heading within Chapter 33, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 33.04-33.07 A change to subheadings 3304.10 through 3307.90 from any other heading outside that group; or A change to subheadings 3304.10 through 3307.90 from any other subheading within that group, whether or not there is also a change from any other heading outside that group, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 34 Soap, Organic Surface-active Agents, Washing Preparations, Lubricating Preparations, Artificial Waxes, Prepared Waxes, Polishing or Scouring Preparations, Candles and Similar Articles, Modelling Pastes, "Dental Waxes" and Dental Preparations with a Basis of Plaster 34.01 A change to subheadings 3401.11 through 3401.20 from any other heading; or A change to subheadings 3401.11 through 3401.20 from any other subheading within heading 34.01, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 3402.11-3402.19 A change to subheadings 3402.11 through 3402.19 from any other heading; or A change to subheadings 3402.11 through 3402.19 from any other subheading within heading 34.02, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 3402.20-3402.90 A change to subheadings 3402.20 through 3402.90 from any other subheading outside that group; or A change to subheadings 3402.20 through 3402.90 from any other subheading within that group, whether or not there is also a change from any other subheading outside that group, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 34.03 A change to subheadings 3403.11 through 3403.99 from any other heading; or A change to subheadings 3403.11 through 3403.99 from any other subheading within heading 34.03, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 34.04 A change to subheadings 3404.10 through 3404.90 from any other heading; or A change to subheadings 3404.10 through 3404.90 from any other subheading within heading 34.04, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 34.05 A change to subheadings 3405.10 through 3405.90 from any other heading; or A change to subheadings 3405.10 through 3405.90 from any other subheading within heading 34.05, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 34.06-34.07 A change to headings 34.06 through 34.07 from any other heading, including another heading within that group. Chapter 35 Albuminoidal Substances; Modified Starches; Glues; Enzymes 35.01 A change to subheadings 3501.10 through 3501.90 from any other heading; or A change to subheadings 3501.10 through 3501.90 from any other subheading within heading 35.01, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 35.02 A change to subheadings 3502.10 through 3502.90 from any other heading; or A change to subheadings 3502.10 through 3502.90 from any other subheading within heading 35.02, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 35.03-35.04 A change to headings 35.03 through 35.04 from any other heading, including another heading within that group. 35.05 A change to subheadings 3505.10 through 3505.20 from any other heading; or A change to subheadings 3505.10 through 3505.20 from any other subheading within heading 35.05, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 35.06 A change to subheadings 3506.10 through 3506.99 from any other heading; or A change to subheadings 3506.10 through 3506.99 from any other subheading within heading 35.06, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 35.07 A change to subheadings 3507.10 through 3507.90 from any other heading; or A change to subheadings 3507.10 through 3507.90 from any other subheading within heading 35.07, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 36 Explosives; Pyrotechnic Products; Matches; Pyrophoric Alloys; Certain Combustible Preparations 36.01-36.03 A change to headings 36.01 through 36.03 from any other heading, including another heading within that group. 36.04 A change to subheadings 3604.10 through 3604.90 from any other heading; or A change to subheadings 3604.10 through 3604.90 from any other subheading within heading 36.04, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. 36.05 A change to heading 36.05 from any other heading. 36.06 A change to subheadings 3606.10 through 3606.90 from any other heading; or A change to subheadings 3606.10 through 3606.90 from any other subheading within heading 36.06, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 37 Photographic or Cinematographic Goods 37.01-37.03 A change to headings 37.01 through 37.03 from any other chapter. 37.04 A change to heading 37.04 from any other heading. 37.05-37.06 A change to headings 37.05 through 37.06 from any other heading outside that group. 37.07 A change to subheadings 3707.10 through 3707.90 from any other chapter; or A change to subheadings 3707.10 through 3707.90 from any other subheading within Chapter 37, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 65% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 38 Miscellaneous Chemical Products 38.01-38.07 A change to subheadings 3801.10 through 3807.00 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3801.10 through 3807.00 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 38.08 Note: A material, imported into the territory of a Party for use in the production of a good classified under heading 38.08, shall be treated as a material originating in the territory of a Party if: a) such material is eligible, in the territories of both that Party and the Party to whose territory the good is exported, for duty-free treatment at the rates provided for most-favoured-nations; or b) the good is exported to the territory of the United States of America and such material would, if imported into the territory of the United States of America, be free of duty under a trade agreement that is not subject to a competitive need limitation. A change to heading 38.08 from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or 80% where the transaction value method is used and the goods contain more than one active ingredient; or b) 50% where the net cost method is used, or 70% where the net cost method is used and the goods contain more than one active ingredient. 38.09-38.23 A change to subheadings 3809.10 through 3823.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3809.10 through 3823.90 from any other subheading within Chapters 28 through 38, including another subheading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Annex 00 SECTION VII Plastics and Articles Thereof; Rubber and Articles Thereof (Ch. 39-40) Chapter 39 Plastics and Articles Thereof 39.01-39.20 A change to headings 39.01 through 39.20 from any other heading, including another heading within that group, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3921.11-3921.13 A change to subheadings 3921.11 through 3921.13 from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3921.14 A change to subheading 3921.14 from any other heading, except from subheading 3920.20 or 3920.71. In addition, the regional value content must be not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3921.19 A change to subheading 3921.19 from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3921.90 A change to subheading 3921.90 from any other heading, except from subheading 3920.20 or 3920.71. In addition, the regional value content percentage must be not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 39.22 A change to heading 39.22 from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3923.10-3923.21 A change to subheadings 3923.10 through 3923.21 from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 3923.29 A change to subheading 3923.29 from any other heading, except from subheading 3920.20 or 3920.71. In addition, the regional value content percentage must be not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 3923.30-3923.90 A change to subheadings 3923.30 through 3923.90 from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 39.24-39.26 A change to headings 39.24 through 39.26 from any other heading, including another heading within that group, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 40 Rubber and Articles Thereof 40.01-40.06 A change to headings 40.01 through 40.06 from any other chapter; or A change to headings 40.01 through 40.06 from any other heading within Chapter 40, including another heading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is us 40.07-40.08 A change to headings 40.07 through 40.08 from any other heading outside that group. 4009.10-4009.40 A change to subheadings 4009.10 through 4009.40 from any other heading, except from headings 40.10 through 40.17. 4009.50 A change to tubes, pipes or hoses of subheading 4009.50, of a kind used for motor vehicles of heading 87.02 for the transport of 15 or fewer persons, motor cars or other motor vehicles of heading 87.03, motor vehicles of subheading 8704.21 or 8704.31 or motorcycles of heading 87.11, from any other heading, except from headings 40.10 through 40.17; or A change to tubes, pipes or hoses of subheading 4009.50, of a kind used for motor vehicles of heading 87.02 for the transport of 15 or fewer persons, motor cars or other motor vehicles of heading 87.03, motor vehicles of subheading 8704.21 or 8704.31 or motorcycles of heading 87.11, from subheadings 4009.10 through 4017.00, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction method is used, or b) 50% where the net cost method is used; or A change to tubes, pipes or hoses of subheading 4009.50, other than those of a kind used for motor vehicles of heading 87.02 for the transport of 15 or fewer persons, motor cars or other motor vehicles of heading 87.03, motor vehicles of subheading 8704.21 or 8704.31 or motorcycles of heading 87.11 from any other heading, except from headings 40.10 through 40.17 40.10-40.11 A change to headings 40.10 through 40.11 from any other heading, except from headings 40.09 through 40.17. 4012.10 A change to subheading 4012.10 from any other subheading, except from Canadian tariff item 4012.20.20, U.S. tariff item 4012.20.15 or 4012.20.18, Mexican tariff item 4012.20.01. 4012.20-4012.90 A change to subheadings 4012.20 through 4012.90 from any other heading, except from headings 40.09 through 40.17. 40.13-40.15 A change to headings 40.13 through 40.15 from any other heading, except from headings 40.09 through 40.17. 4016.10-4016.92 A change to subheadings 4016.10 through 4016.92 from any other heading, except from headings 40.09 through 40.17. 4016.93 4016.93.10 A change to Canadian tariff item 4016.93.10, U.S. tariff item 4016.93.10, Mexican tariff item 4016.93.04 from any other heading, except from Canadian tariff item 4008.19.10 or 4008.29.10, U.S. tariff item 4008.19.05 or 4008.29.10, Mexican tariff item 4008.19.01 or 4008.29.01. 4016.93 A change to subheading 4016.93 from any other heading, except from headings 40.09 through 40.17. 4016.94-4016.95 A change to subheadings 4016.94 through 4016.95 from any other heading, except from headings 40.09 through 40.17. 4016.99 4016.99.a1 A change to Canadian tariff item 4016.99.a1, U.S. tariff item 4016.99.h1, Mexican tariff item 4016.99.x1 from any other subheading, provided there is a regional value content of not less than 50% under the net cost method. 4016.99 A change to subheading 4016.99 from any other heading, except from headings 40.09 through 40.17. 40.17 A change to heading 40.17 from any other heading, except from headings 40.09 through 40.16. Annex 00 SECTION VIII Raw Hides and Skins, Leather, Furskins and Articles Thereof; Saddlery and Harness; Travel Goods, Handbags, and Similar Containers; Articles of Animal Gut (Other Than Silkworm Gut) (Ch.41-43) Chapter 41 Raw Hides and Skins (Other Than Furskins) and Leather 41.01-41.03 A change to headings 41.01 through 41.03 from any other chapter. 41.04 A change to heading 41.04 from any other heading, except from headings 41.05 through 41.11. 41.05 A change to heading 41.05 from Canadian tariff item 4105.19.10, U.S. tariff item 4105.19.10, Mexican tariff item 4105.19.01, headings 41.01 through 41.03 or any other chapter. 41.06 A change to heading 41.06 from Canadian tariff item 4106.19.10, U.S. tariff item 4106.19.10, Mexican tariff item 4106.19.01, headings 41.01 through 41.03 or any other chapter. 41.07 A change to heading 41.07 from Canadian tariff item 4107.10.10, U.S. tariff item 4107.10.10, Mexican tariff item 4107.10.02, headings 41.01 through 41.03 or any other chapter. 41.08-41.11 A change to headings 41.08 through 41.11 from any other heading, except from headings 41.04 through 41.11. Chapter 42 Articles of Leather; Saddlery and Harness; Travel Goods, Handbags and Similar Containers; Articles of Animal Gut (Other Than Silk-Worm Gut) 42.01 A change to heading 42.01 from any other chapter. 4202.11 A change to subheading 4202.11 from any other chapter. 4202.12 A change to subheading 4202.12 from any other chapter, except from headings 54.07, 54.08 or 55.12 through 55.16. 4202.19-4202.21 A change to subheadings 4202.19 through 4202.21 from any other chapter. 4202.22 A change to subheading 4202.22 from any other chapter, except from headings 54.07, 54.08 or 55.12 through 55.16. 4202.29-4202.31 A change to subheadings 4202.29 through 4202.31 from any other chapter. 4202.32 A change to subheading 4202.32 from any other chapter, except from headings 54.07, 54.08 or 55.12 through 55.16. 4202.39-4202.91 A change to subheadings 4202.39 through 4202.91 from any other chapter. 4202.92 A change to subheading 4202.92 from any other chapter, except from headings 54.07, 54.08 or 55.12 through 55.16. 4202.99 A change to subheading 4202.99 from any other chapter. 42.03-42.06 A change to headings 42.03 through 42.06 from any other chapter. Chapter 43 Furskins and Artificial Fur; Manufactures Thereof 43.01 A change to heading 43.01 from any other chapter. 43.02 A change to heading 43.02 from any other heading. 43.03-43.04 A change to headings 43.03 through 43.04 from any other heading outside that group. Annex 00 SECTION X Pulp of Wood or of other Fibrous Cellulosic Material; Waste and Scrap of Paper or Paperboard; Paper and Paperboard and Articles Thereof (Ch. 47-49) Chapter 47 Pulp of Wood or of Other Fibrous Cellulosic Material; Waste and Scrap of Paper or Paperboard 47.01-47.07 A change to headings 47.01 through 47.07 from any other chapter. Chapter 48 Paper and Paperboard; Articles of Paper Pulp, of Paper or of Paperboard 48.01-48.07 A change to headings 48.01 through 48.07 from any other chapter. 48.08-48.09 A change to headings 48.08 through 48.09 from any other heading outside that group. 48.10-48.13 A change to headings 48.10 through 48.13 from any other chapter. 48.14-48.15 A change to headings 48.14 through 48.15 from any other heading outside that group. 48.16 A change to heading 48.16 from any other heading, except from heading 48.09. 48.17-48.23 A change to headings 48.17 through 48.23 from any other heading outside that group. Chapter 49 Printed Books, Newspapers, Pictures and Other Products of the Printing Industry; Manuscripts, Typescripts and Plans 49.01-49.11 A change to headings 49.01 through 49.11 from any other chapter. Annex 00 SECTION XI Textiles and Textile Articles (Ch. 50-63) Note: For purposes of the textiles provisions, the term "wholly" is interpreted to mean that the product is made entirely or solely of the named material. Chapter 50 Silk 50.01-50.03 A change to headings 50.01 through 50.03 from any other chapter. 50.04-50.06 A change to headings 50.04 through 50.06 from any other heading outside that group. 50.07 A change to heading 50.07 from any other heading. Chapter 51 Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric 51.01-51.05 A change to headings 51.01 through 51.05 from any other chapter. 51.06-51.10 A change to headings 51.06 through 51.10 from any other heading outside that group. 51.11-51.13 A change to headings 51.11 through 51.13 from any other heading outside that group, except from headings 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04, or 55.09 through 55.10. Chapter 52 Cotton 52.01-52.07 A change to headings 52.01 through 52.07 from any other chapter, except from headings 54.01 through 54.05 or 55.01 through 55.07. 52.08-52.12 A change to headings 52.08 through 52.12 from any other heading outside that group, except from headings 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04, or 55.09 through 55.10. Chapter 53 Other Vegetable Textile Fibres; Paper Yarn and Woven Fabrics of Paper Yarn 53.01-53.05 A change to headings 53.01 through 53.05 from any other chapter. 53.06-53.08 A change to headings 53.06 through 53.08 from any other heading outside that group. 53.09 A change to heading 53.09 from any other heading, except from headings 53.07 through 53.08. 53.10-53.11 A change to headings 53.10 through 53.11 from any other heading outside that group, except from headings 53.07 through 53.08. Chapter 54 Man-Made Filaments 54.01-54.06 A change to headings 54.01 through 54.06 from any other chapter, except from headings 52.01 through 52.03 or 55.01 through 55.07. 54.07 5407.60.10 A change to Canadian tariff item 5407.60.10, U.S. tariff item 5407.60.22, Mexican tariff item 5407.60.02 from any other chapter or from Canadian tariff item 5402.43.10 or 5402.52.10, U.S. tariff item 5402.43.10 or 5402.52.10, Mexican tariff item 5402.43.01 or 5402.52.02, except from headings 51.06 through 51.10, 52.05 through 52.06 or 55.09 through 55.10. 54.07 A change to heading 54.07 from any other chapter, except from headings 51.06 through 51.10, 52.05 through 52.06 or 55.09 through 55.10. 54.08 A change to heading 54.08 from any other chapter, except from headings 51.06 through 51.10, 52.05 through 52.06 or 55.09 through 55.10. Chapter 55 Man-Made Staple Fibres 55.01-55.11 A change to headings 55.01 through 55.11 from any other chapter, except from headings 52.01 through 52.03 or 54.01 through 54.05. 55.12-55.16 A change to headings 55.12 through 55.16 from any other heading outside that group, except from headings 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04 or 55.09 through 55.10. Chapter 56 Wadding, Felt and Nonwovens; Special Yarns; Twine; Cordage, Ropes and Cables and Articles Thereof 56.01-56.09 A change to headings 56.01 through 56.09 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, or Chapters 54 through 55. Chapter 57 Carpets and Other Textile Floor Coverings 57.01-57.05 A change to headings 57.01 through 57.05 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.08, 53.11, 55.08 through 55.16, or Chapter 54. Chapter 58 Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries; Trimmings; Embroidery 58.01-58.11 A change to headings 58.01 through 58.11 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, or Chapters 54 through 55. Chapter 59 Impregnated, Coated, Covered or Laminated Textile Fabrics; Textile Articles of a Kind Suitable For Industrial Use 59.01 A change to heading 59.01 from any other chapter, except from headings 51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08, or 55.12 through 55.16. 59.02 A change to heading 59.02 from any other heading, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.06 through 53.11, or Chapters 54 through 55. 59.03-59.08 A change to headings 59.03 through 59.08 from any other chapter, except from headings 51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08, or 55.12 through 55.16. 59.09 A change to heading 59.09 from any other chapter, except from headings 51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 55.12 through 55.16, or Chapter 54. 59.10 A change to heading 59.10 from any other heading, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, or Chapters 54 through 55. 59.11 A change to heading 59.11 from any other chapter, except from headings 51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08, or 55.12 through 55.16. Chapter 60 Knitted or Crocheted Fabrics 60.01-60.02 A change to headings 60.01 through 60.02 from any other chapter, except from headings 51.06 through 51.13, 53.07 through 53.08, 53.10 through 53.11, or Chapters 52, 54 through 55. Chapter 61 Articles of Apparel and Clothing Accessories, Knitted or Crocheted Note 1: A change to any of the following headings or subheadings for visible lining fabrics: 51.11-51.12, 5208.31-5208.59, 5209.31-5209.59, 5210.31-5210.59, 5211.31-5211.59, 5212.13-5212.15, 5212.23-5212.25, 5407.42-5407.44, 5407.52-5407.54, 5407.60, 5407.72-5407.74, 5407.82-5407.84, 5407.92-5407.94, 5408.22-5408.24 (excluding Canadian tariff item 5408.22.10, 5408.23.10 or 5408.24.10, U.S. tariff item 5408.22.h1, 5408.23.h1 or 5408.24.h1, Mexican tariff item 5408.22.x1, 5408.23.x1 or 5408.24.x1), 5408.32-5408.34, 5512.19, 5512.29, 5512.99, 5513.21-5513.49, 5514.21-5515.99, 5516.12-5516.14, 5516.22-5516.24, 5516.32-5516.34, 5516.42-5516.44, 5516.92-5516.94, 6001.10, 6001.92, 6002.43, or 6002.91-6002.93, from any other heading outside that group. Note 2: Apparel products of this Chapter shall be considered to originate in the territory of a Party if they are both cut and sewn or otherwise assembled in the territory of one or more of the Parties and if the outer shell, exclusive of collars or cuffs, is wholly of fabrics of Canadian tariff item 6002.92.a1, U.S. tariff item 6002.92.10, Mexican tariff item 6002.92.01. Note 3: For the purpose of determining the origin of a good of this Chapter, the rule applicable to that good shall only apply to the fabric which imparts to the good its essential character and such fabric must satisfy the tariff change requirements set out in the rule for that good. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in Note 1, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings. 6101.10-6101.30 A change to subheadings 6101.10 through 6101.30 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6101.90 A change to subheading 6101.90 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6102.10-6102.30 A change to subheadings 6102.10 through 6102.30 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6102.90 A change to subheading 6102.90 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6103.11-6103.12 A change to subheadings 6103.11 through 6103.12 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6103.19 6103.19.90 A change to Canadian tariff item 6103.19.90, U.S. tariff item 6103.19.40, Mexican tariff item 6103.19.02 or 6103.19.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6103.19 A change to subheading 6103.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6103.21-6103.29 A change to subheadings 6103.21 through 6103.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties and, with the additional requirement that garments described in heading 61.01 or jackets or blazers described in heading 61.03, of wool, fine animal hair, cotton or man-made fibres, imported as part of the ensembles of these subheadings, the visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6103.31-6103.33 A change to subheadings 6103.31 through 6103.33 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6103.39 6103.39.90 A change to Canadian tariff item 6103.39.90, U.S. tariff item 6103.39.20, Mexican tariff item 6103.39.02 or 6103.39.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6103.39 A change to subheading 6103.39 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6103.41-6103.49 A change to subheadings 6103.41 through 6103.49 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6104.11-6104.13 A change to subheadings 6104.11 through 6104.13 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.19 6104.19.90 A change to Canadian tariff item 6104.19.90, U.S. tariff item 6104.19.20, Mexican tariff item 6104.19.02 or 6104.19.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6104.19 A change to subheading 6104.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.21-6104.29 A change to subheadings 6104.21 through 6104.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties and, with the additional requirement that garments described in heading 61.02, jackets or blazers described in heading 61.04, or skirts described in heading 61.04, of wool, fine animal hair, cotton or man-made fibres, imported as part of the ensembles of these subheadings, the visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.31-6104.33 A change to subheadings 6104.31 through 6104.33 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.39 6104.39.90 A change to Canadian tariff item 6104.39.90, U.S. tariff item 6104.39.20, Mexican tariff item 6104.39.02 or 6104.39.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6104.39 A change to subheading 6104.39 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.41-6104.49 A change to subheadings 6104.41 through 6104.49 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6104.51-6104.53 A change to subheadings 6104.51 through 6104.53 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.59 6104.59.90 A change to Canadian tariff item 6104.59.90, U.S. tariff item 6104.59.20, Mexican tariff item 6104.59.02 or 6104.59.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 6104.59 A change to subheading 6104.59 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.61-6104.69 A change to subheadings 6104.61 through 6104.69 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. 61.05-61.17 A change to headings 61.05 through 61.17 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. Chapter 62 Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted Note 1: A change to any of the following headings or subheadings for visible lining fabrics: 51.11-51.12, 5208.31-5208.59, 5209.31-5209.59, 5210.31-5210.59, 5211.31-5211.59, 5212.13-5212.15, 5212.23-5212.25, 5407.42-5407.44, 5407.52-5407.54, 5407.60, 5407.72-5407.74, 5407.82-5407.84, 5407.92-5407.94, 5408.22-5408.24 (excluding Canadian tariff item 5408.22.10, 5408.23.10 or 5408.24.10, U.S. tariff item 5408.22.h1, 5408.23.h1 or 5408.24.h1, Mexican tariff item 5408.22.x1, 5408.23.x1 or 5408.24.x1), 5408.32-5408.34, 5512.19, 5512.29, 5512.99, 5513.21-5513.49, 5514.21-5515.99, 5516.12-5516.14, 5516.22-5516.24, 5516.32-5516.34, 5516.42-5516.44, 5516.92-5516.94, 6001.10, 6001.92, 6002.43, or 6002.91-6002.93, from any other heading outside that group. Note 2: Apparel products of this Chapter shall be considered to originate if they are both cut and sewn or otherwise assembled in the territory of one or more of the Parties and if the outer shell, exclusive of collars or cuffs, is wholly of one or more of the following fabrics: (i) Velveteen fabrics of subheading 5801.23, containing 85 per cent or more by weight of cotton; (ii) Corduroy fabrics of subheading 5801.22, containing 85 per cent or more by weight of cotton and containing more than 7.5 wales per centimetre; (iii) Fabrics of subheading 5111.11 or 5111.19, if hand-woven, with a loom width of less than 76 cm, woven in the United Kingdom in accordance with the rules and regulations of the Harris Tweed Association, Ltd., and so certified by the Association; (iv) Fabrics of subheading 5112.30, weighing not more than 340 grams per square metre, containing wool, not less than 20 per cent by weight of fine animal hair and not less than 15 per cent by weight of man-made staple fibres; (v) Batiste fabrics of subheading 5513.11 or 5513.21, of square construction, of single yarns exceeding 76 metric count, containing between 60 and 70 warp ends and filling picks per square centimetre, of a weight not exceeding 110 grams per square metre. Note 3: For the purpose of determining the origin of a good of this Chapter, the rule applicable to that good shall only apply to the fabric which imparts to the good its essential character and such fabric must satisfy the tariff change requirements set out in the rule for that good. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in Note 1, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to removable linings. 6201.11-6201.13 A change to subheadings 6201.11 through 6201.13 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6201.19 A change to subheading 6201.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6201.91-6201.93 A change to subheadings 6201.91 through 6201.93 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6201.99 A change to subheading 6201.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6202.11-6202.13 A change to subheadings 6202.11 through 6202.13 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6202.19 A change to subheading 6202.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6202.91-6202.93 A change to subheadings 6202.91 through 6202.93 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6202.99 A change to subheading 6202.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6203.11-6203.12 A change to subheadings 6203.11 through 6203.12 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6203.19 6203.19.90 A change to Canadian tariff item 6203.19.90, U.S. tariff item 6203.19.40, Mexican tariff item 6203.19.02 or 6203.19.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6203.19 A change to subheading 6203.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6203.21-6203.29 A change to subheadings 6203.21 through 6203.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties and, with the additional requirement that garments described in heading 62.01 or jackets or blazers described in heading 62.03, of wool, fine animal hair, cotton or man-made fibres, imported as part of the ensembles of these subheadings, the visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6203.31-6203.33 A change to subheadings 6203.31 through 6203.33 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6203.39 6203.39.a1 A change to Canadian tariff item 6203.39.a1, U.S. tariff item 6203.39.40, Mexican tariff item 6203.39.02 or 6203.39.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6203.39 A change to subheading 6203.39 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6203.41-6203.49 A change to subheadings 6203.41 through 6203.49 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6204.11-6204.13 A change to subheadings 6204.11 through 6204.13 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6204.19 6204.19.a1 A change to Canadian tariff 6204.19.a1, U.S. tariff item 6204.19.30, Mexican tariff item 6204.19.02 or 6204.19.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6204.19 A change to subheading 6204.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6204.21-6204.29 A change to subheadings 6204.21 through 6204.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties and, with the additional requirement that garments described in heading 62.02, jackets or blazers described in heading 62.04, or skirts described in heading 62.04, of wool, fine animal hair, cotton or man-made fibres, imported as part of the ensembles of these subheadings, the visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6204.31-6204.33 A change to subheadings 6204.31 through 6204.33 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6204.39 6204.39.90 A change to Canadian tariff item 6204.39.90, U.S. tariff item 6204.39.60 or 6204.39.80, Mexican tariff item 6204.39.02 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6204.39 A change to subheading 6204.39 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6204.41-6204.49 A change to subheadings 6204.41 through 6204.49 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6204.51-6204.53 A change to subheadings 6204.51 through 6204.53 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6204.59 6204.59.90 A change to Canadian tariff item 6204.59.90, U.S. tariff item 6204.59.40, Mexican tariff item 6204.59.02 or 6204.59.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6204.59 A change to subheading 6204.59 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6204.61-6204.69 A change to subheadings 6204.61 through 6204.69 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6205.10 A change to subheading 6205.10 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6205.20-6205.30 Note: Men's or boys' shirts of cotton or man-made fibres shall be considered to originate if they are both cut and assembled in the territory of one or more of the Parties and if the outer shell, exclusive of collars or cuffs, is wholly of one or more of the following fabrics: (i) Fabrics of subheading 5208.21, 5208.22, 5208.29, 5208.31, 5208.32, 5208.39, 5208.41, 5208.42, 5208.49, 5208.51, 5208.52 or 5208.59, of average yarn number exceeding 135 metric; (ii) Fabrics of subheading 5513.11 or 5513.21, not of square construction, containing more than 70 warp ends and filling picks per square centimetre, of average yarn number exceeding 70 metric; (iii) Fabrics of subheading 5210.21 or 5210.31, not of square construction, containing more than 70 warp ends and filling picks per square centimetre, of average yarn number exceeding 70 metric; (iv) Fabrics of subheading 5208.22 or 5208.32, not of square construction, containing more than 75 warp ends and filling picks per square centimetre, of average yarn number exceeding 65 metric; (v) Fabrics of subheading 5407.81, 5407.82 or 5407.83, weighing less than 170 grams per square metre, having a dobby weave created by a dobby attachment; (vi) Fabrics of subheading 5208.42 or 5208.49, not of square construction, containing more than 85 warp ends and filling picks per square centimetre, of average yarn number exceeding 85 metric; (vii) Fabrics of subheading 5208.51, of square construction, containing more than 75 warp ends and filling picks per square centimetre, made with single yarns, of average yarn number 95 or greater metric; (viii) Fabrics of subheading 5208.41, of square construction, with a gingham pattern, containing more than 85 warp ends and filling picks per square centimetre, made with single yarns, of average yarn number 95 or greater metric, and characterized by a check effect produced by the variation in color of the yarns in the warp and filling. A change to subheadings 6205.20 through 6205.30 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6205.90 A change to subheading 6205.90 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 62.06-62.11 A change to headings 62.06 through 62.11 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6212.10 A change to subheading 6212.10 from any other chapter; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 6212.20-6212.90 A change to subheadings 6212.20 through 6212.90 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 62.13-62.17 A change to headings 62.13 through 62.17 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. Chapter 63 Other Made Up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; Rags Note 1: For the purpose of determining the origin of a good of this Chapter, the rule applicable to that good shall only apply to the fabric which imparts to the good its essential character and such fabric must satisfy the tariff change requirements set out in the rule for that good. 63.01-63.02 A change to headings 63.01 through 63.02 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, Chapters 54 through 55, headings 58.01 through 58.02 or 60.01 through 60.02; provided the goods are both cut and sewn (or knit to shape) or otherwise assembled in the territory of one or more of the Parties. 63.03 6303.92.a1 A change to Canadian tariff item 6303.92.a1, U.S. tariff item 6302.92.h1, Mexican tariff item 6302.92.x1 from any other chapter or from Canadian tariff item 5402.43.10 or 5402.52.10, U.S. tariff item 5402.43.10 or 5402.52.10, Mexican tariff item 5402.43.01 or 5402.52.02, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, Chapters 54 through 55, headings 58.01 through 58.02, 60.01 or 60.02; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. 63.03 A change to heading 63.03 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, Chapters 54 through 55, headings 58.01 through 58.02 or 60.01 through 60.02; provided the goods are both cut and sewn (or knit to shape) or otherwise assembled in the territory of one or more of the Parties. 63.04-63.10 A change to headings 63.04 through 63.10 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, Chapters 54 through 55, headings 58.01 through 58.02 or 60.01 through 60.02; provided the goods are both cut and sewn (or knit to shape) or otherwise assembled in the territory of one or more of the Parties. Annex 00 SECTION XII Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks, Seat- Sticks, Whips, Riding-Crops and Parts Thereof; Prepared Feathers and Articles Made Therewith; Artificial Flowers; Articles of Human Hair (Ch. 64-67) Chapter 64 Footwear, Gaiters and the Like; Parts of Such Articles 6401.10-6406.10 A change to subheadings 6401.10 through 6406.10 from any other subheading outside that group, provided there is a regional value content of not less than 55% under the net cost method. 6406.20-6406.99 A change to subheadings 6406.20 through 6406.99 from any other chapter. Chapter 65 Headgear and Parts Thereof 65.01-65.02 A change to headings 65.01 through 65.02 from any other chapter. 65.03-65.07 A change to headings 65.03 through 65.07 from any heading outside that group. Chapter 66 Umbrellas, Sun Umbrellas, Walking-Sticks, Seat-Sticks, Whips, Riding-Crops and Parts Thereof 66.01 A change to heading 66.01 from any other heading, except from a combination of both: a) subheading 6603.20; and b) headings 39.20 through 39.21, 50.07, 51.11 through 51.13, 52.08 through 52.12, 53.09 through 53.11, 54.07 through 54.08, 55.12 through 55.16, 56.02 through 56.03, 58.01 through 58.11, 59.01 through 59.11, 60.01 through 60.02. 66.02 A change to heading 66.02 from any other heading. 66.03 A change to heading 66.03 from any other chapter. Chapter 67 Prepared Feathers and Down and Articles Made of Feathers or of Down; Artificial Flowers; Articles of Human Hair 67.01 6701.00.10 A change to Canadian tariff item 6701.00.10, U.S. tariff item 6701.00.10, Mexican tariff item 6701.00.01 or 6701.00.02 from any other tariff item. 67.01 A change to heading 67.01 from any other chapter. 67.02 A change to heading 67.02 from any other heading. 67.03 A change to heading 67.03 from any other chapter. 67.04 A change to heading 67.04 from any other heading. Annex 00 SECTION XIII Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic Products; Glass and Glassware (Ch. 68-70) Chapter 68 Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials 68.01-68.11 A change to headings 68.01 through 68.11 from any other chapter. 6812.10 A change to subheading 6812.10 from any other chapter. 6812.20 A change to subheading 6812.20 from any other subheading. 6812.30-6812.40 A change to subheadings 6812.30 through 6812.40 from any other subheading outside that group. 6812.50 A change to subheading 6812.50 from any other subheading. 6812.60-6812.90 A change to subheadings 6812.60 through 6812.90 from any other subheading outside that group. 68.13 A change to heading 68.13 from any other heading. 68.14-68.15 A change to headings 68.14 through 68.15 from any other chapter. Chapter 69 Ceramic Products 69.01-69.14 A change to headings 69.01 through 69.14 from any other chapter. Chapter 70 Glass and Glassware 70.01-70.02 A change to headings 70.01 through 70.02 from any other chapter. 70.03-70.09 A change to headings 70.03 through 70.09 from any other heading outside that group. 70.10-70.20 A change to headings 70.10 through 70.20 from any other heading, except from headings 70.07 through 70.20. Annex 00 SECTION XIV Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious Metals, Metals Clad with Precious Metal, and Articles Thereof; Imitation Jewellery; Coin (Ch. 71) Chapter 71 Natural or Cultured Pearls, Precious or Semi-Precious Stones, Precious Metals, Metals Clad with Precious Metal, and Articles Thereof; Imitation Jewellery; Coin (Ch. 71) 71.01-71.12 A change to headings 71.01 through 71.12 from any other chapter. 71.13-71.18 Note: Pearls, temporarily or permanently strung but without the addition of clasps or other ornamental features of precious metals or stones, shall be treated as a good of the country in which the pearls were obtained. A change to headings 71.13 through 71.18 from any other heading outside that group. Annex 00 SECTION XIX Arms and Ammunition; Parts and Accessories Thereof (Ch. 93) Chapter 93 Arms and Ammunition; Parts and Accessories Thereof 93.01-93.04 A change to headings 93.01 through 93.04 from any other chapter; or A change to headings 93.01 through 93.04 from heading 93.05, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 93.05 A change to heading 93.05 from any other heading. 93.06-93.07 A change to headings 93.06 through 93.07 from any other chapter. Annex 00 SECTION XV Base Metals and Articles of Base Metal (Ch. 72-83) Chapter 72 Iron and Steel 72.01 A change to heading 72.01 from any other chapter. 7202.11-7202.60 A change to subheadings 7202.11 through 7202.60 from any other chapter. 7202.70 A change to subheading 7202.70 from any other chapter, except from subheading 2613.10. 7202.80-7202.99 A change to subheadings 7202.80 through 7202.99 from any other chapter. 72.03-72.05 A change to headings 72.03 through 72.05 from any other chapter. 72.06-72.07 A change to headings 72.06 through 72.07 from any other heading outside that group. 72.08-72.16 A change to headings 72.08 through 72.16 from any other heading outside that group. 72.17 A change to heading 72.17 from any other heading, except from headings 72.13 through 72.15. 72.18-72.22 A change to headings 72.18 through 72.22 from any other heading outside that group. 72.23 A change to heading 72.23 from any other heading, except from headings 72.21 through 72.22. 72.24-72.28 A change to headings 72.24 through 72.28 from any other heading outside that group. 72.29 A change to heading 72.29 from any other heading, except from headings 72.27 through 72.28. Chapter 73 Articles of Iron or Steel 73.01-73.03 A change to headings 73.01 through 73.03 from any other chapter. 7304.10-7304.39 A change to subheadings 7304.10 through 7304.39 from any other chapter. 7304.41 7304.41.10 A change to Canadian tariff item 7304.41.10, U.S. tariff item 7304.41.10, Mexican tariff item 7304.41.02 or 7304.41.03 from subheading 7304.49 or from any other chapter. 7304.41 A change to subheading 7304.41 from any other chapter. 7304.49-7304.90 A change to subheadings 7304.49 through 7304.90 from any other chapter. 73.05-73.07 A change to headings 73.05 through 73.07 from any other chapter. 73.08 A change to heading 73.08 from any other heading, except for changes resulting from the following processes performed on angles, shapes, or sections of heading 72.16: a) drilling, punching, notching, cutting, cambering, or sweeping, whether performed individually or in combination; b) adding attachments or weldments for composite construction; c) adding attachments for handling purposes; d) adding weldments, connectors or attachments to H-sections or I- sections; provided that the maximum dimension of the weldments, connectors, or attachments is not greater than the dimension between the inner surfaces of the flanges of the H-sections or I-sections e) painting, galvanizing, or otherwise coating; or f) adding a simple base plate without stiffening elements, individually or in combination with drilling, punching, notching, or cutting, to create an article suitable as a column. 73.09-73.11 A change to headings 73.09 through 73.11 from any other heading outside that group. 73.12-73.14 A change to headings 73.12 through 73.14 from any other heading, including another heading within that group. 7315.11-7315.12 A change to subheadings 7315.11 through 7315.12 from any other heading; or A change to subheadings 7315.11 through 7315.12 from subheading 7315.19, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 7315.19 A change to subheading 7315.19 from any other heading. 7315.20-7315.89 A change to subheadings 7315.20 through 7315.89 from any other heading; or A change to subheadings 7315.20 through 7315.89 from subheading 7315.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 7315.90 A change to subheading 7315.90 from any other heading. 73.16 A change to heading 73.16 from any other heading, except from heading 73.12 or 73.15. 73.17-73.18 A change to headings 73.17 through 73.18 from any other heading outside that group. 73.19-73.20 A change to headings 73.19 through 73.20 from any other heading outside that group. 7321.11 7321.11.19 A change to Canadian tariff item 7321.11.19, U.S. tariff item 7321.11.30, Mexican tariff item 7321.11.02 or 7321.11.03 from any other subheading, except from Canadian tariff item 7321.90.51, 7321.90.52 or 7321.90.53, U.S. tariff item 7321.90.32, 7321.90.34 or U.S. tariff item 7321.90.36, Mexican tariff item 7321.90.05, 7321.90.06 or 7321.90.07. 7321.11 A change to subheading 7321.11 from any other heading; or A change to subheading 7321.11 from subheading 7321.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 7321.12-7321.83 A change to subheadings 7321.12 through 7321.83 from any other heading; or A change to subheadings 7321.12 through 7321.83 from subheading 7321.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 7321.90 7321.90.51 A change to Canadian tariff item 7321.90.51, U.S. tariff item 7321.90.32, Mexican tariff item 7321.90.05 from any other tariff item. 7321.90.52 A change to Canadian tariff item 7321.90.52, U.S. tariff item 7321.90.34, Mexican tariff item 7321.90.06 from any other tariff item. 7321.90.53 A change to Canadian tariff item 7321.90.53, U.S. tariff item 7321.90.36, Mexican tariff item 7321.90.07 from any other tariff item. 7321.90 A change to subheading 7321.90 from any other heading. 73.22-73.23 A change to headings 73.22 through 73.23 from any other heading outside that group. 7324.10-7324.29 A change to subheadings 7324.10 through 7324.29 from any other heading; or A change to subheadings 7324.10 through 7324.29 from subheading 7324.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 7324.90 A change to subheading 7324.90 from any other heading. 73.25-73.26 A change to headings 73.25 through 73.26 from any other heading outside that group. Chapter 74 Copper and Articles Thereof 74.01-74.02 A change to headings 74.01 through 74.02 from any other chapter. 74.03 A change to heading 74.03 from any other chapter; or A change to heading 74.03 from any of Canadian tariff item 7404.00.11, 7404.00.21 or 7404.11.91, U.S. tariff item 7404.00.10, Mexican tariff item 7404.00.01 or 7404.11.02, heading 74.01 or 74.02, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 74.04 A change to heading 74.04 from any other chapter. 74.05-74.07 A change to headings 74.05 through 74.07 from any other chapter; or A change to headings 74.05 through 74.07 from any of Canadian tariff item 7404.00.11, 7404.00.21 or 7404.00.91, U.S. tariff item 7404.00.10, Mexican tariff item 7404.00.01 or 7404.00.02, heading 74.01 or 74.02, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 7408.11 7408.11.11 A change to Canadian tariff item 7408.11.11 or 7408.11.21, U.S. tariff item 7408.11.60, Mexican tariff item 7408.11.01 from any other chapter; or A change to Canadian tariff item 7408.11.11 or 7408.11.21, U.S. tariff item 7408.11.60, Mexican tariff item 7408.11.01 from any of Canadian tariff item 7404.00.11, 7404.00.21 or 7404.00.91, U.S. tariff item 7404.00.10, Mexican tariff item 7404.00.01 or 7404.00.02, or heading 74.01 or 74.02, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 7408.11 A change to subheading 7408.11 from any other heading, except from heading 74.07. 7408.19-7408.29 A change to subheadings 7408.19 through 7408.29 from any other heading, except from heading 74.07. 74.09 A change to heading 74.09 from any other heading. 74.10 A change to heading 74.10 from any other heading, except from heading 74.09. 74.11 A change to heading 74.11 from any other heading, except from heading 74.09 or Canadian tariff item 7407.10.13, 7407.10.22, 7407.21.13, 7407.21.22, 7407.22.13, 7407.22.22, 7407.29.13, or 7407.29.22, U.S. tariff item 7407.10.20, 7407.21.20, 7407.22.20 or 7407.29.20, Mexican tariff item 7407.10.02, 7407.21.02, 7407.22.02 or 7407.29.02. 74.12 A change to heading 74.12 from any other heading, except from heading 74.11. 74.13 A change to heading 74.13 from any other heading, except from headings 74.07 through 74.08; or A change to heading 74.13 from any of headings 74.07 through 74.08, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 74.14-74.18 A change to headings 74.14 through 74.18 from any other heading, including another heading within that group. 7419.10 A change to subheading 7419.10 from any other heading, except from heading 74.07. 7419.91-7419.99 A change to subheadings 7419.91 through 7419.99 from any other heading. Chapter 75 Nickel and Articles Thereof 75.01-75.04 A change to headings 75.01 through 75.04 from any other chapter. 75.05 A change to heading 75.05 from any other heading. 75.06 7506.10.22 A change to Canadian tariff item 7506.10.22, U.S. tariff item 7506.10.50, Mexican tariff item 7506.10.01 from any other tariff item. 7506.20.92 A change to Canadian tariff item 7506.20.92, U.S. tariff item 7506.20.50, Mexican tariff item 7506.20.01 from any other tariff item. 75.06 A change to heading 75.06 from any other heading. 75.07-75.08 A change to headings 75.07 through 75.08 from any other heading outside that group. Chapter 76 Aluminum and Articles Thereof 76.01-76.03 A change to headings 76.01 through 76.03 from any other chapter. 76.04-76.06 A change to headings 76.04 through 76.06 from any other heading outside that group. 76.07 A change to heading 76.07 from any other heading. 76.08-76.09 A change to headings 76.08 through 76.09 from any other heading outside that group. 76.10-76.13 A change to headings 76.10 through 76.13 from any other heading, including another heading within that group. 76.14 A change to heading 76.14 from any other heading, except from headings 76.04 through 76.05. 76.15-76.16 A change to headings 76.15 through 76.16 from any other heading, including another heading within that group. Chapter 78 Lead and Articles Thereof 78.01-78.02 A change to headings 78.01 through 78.02 from any other chapter. 78.03-78.06 A change to headings 78.03 through 78.06 from any other chapter; or A change to headings 78.03 through 78.06 from any other heading within Chapter 78, including another heading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 79 Zinc and Articles Thereof 79.01-79.03 A change to headings 79.01 through 79.03 from any other chapter. 79.04-79.07 A change to headings 79.04 through 79.07 from any other chapter; or A change to headings 79.04 through 79.07 from any other heading within Chapter 79, including another heading within that group, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. Chapter 80 Tin and Articles Thereof 80.01-80.02 A change to headings 80.01 through 80.02 from any other chapter. 80.03-80.04 A change to headings 80.03 through 80.04 from any other heading outside that group. 80.05-80.07 A change to headings 80.05 through 80.07 from any other heading outside that group. Chapter 81 Other Base Metals; Cermets; Articles Thereof 8101.10-8101.91 A change to subheadings 8101.10 through 8101.91 from any other chapter. 8101.92 A change to subheading 8101.92 from any other subheading. 8101.93 A change to subheading 8101.93 from any other chapter. 8101.99 A change to subheading 8101.99 from any other subheading. 8102.10-8102.91 A change to subheadings 8102.10 through 8102.91 from any other chapter. 8102.92 A change to subheading 8102.92 from any other subheading. 8102.93 A change to subheading 8102.93 from any other subheading, except from Canadian tariff item 8102.92.10, U.S. tariff item 8102.92.10, Mexican tariff item 8102.92.01. 8102.99 A change to subheading 8102.99 from any other subheading. 8103.10 A change to subheading 8103.10 from any other chapter. 8103.90 A change to subheading 8103.90 from any other subheading. 8104.11-8104.30 A change to subheadings 8104.11 through 8104.30 from any other chapter. 8104.90 A change to subheading 8104.90 from any other subheading. 8105.10 A change to subheading 8105.10 from any other chapter. 8105.90 A change to subheading 8105.90 from any other subheading. 81.06 A change to heading 81.06 from any other chapter. 8107.10 A change to subheading 8107.10 from any other chapter. 8107.90 A change to subheading 8107.90 from any other subheading. 8108.10 A change to subheading 8108.10 from any other chapter. 8108.90 A change to subheading 8108.90 from any other subheading. 8109.10 A change to subheading 8109.10 from any other chapter. 8109.90 A change to subheading 8109.90 from any other subheading. 81.10 A change to heading 81.10 from any other chapter. 81.11 8111.00.21 A change to Canadian tariff item 8111.00.21. 8111.00.22, 8111.00.40, U.S. tariff item 8111.00.60, Mexican tariff item 8111.00.01 from any other tariff item. 81.11 A change to heading 81.11 from any other chapter. 81.12-81.13 A change to headings 81.12 through 81.13 from any other chapter. Chapter 82 Tools, Implements, Cutlery, Spoons and Forks, of Base Metal; Parts Thereof of Base Metal 82.01-82.15 A change to headings 82.01 through 82.15 from any other chapter. Chapter 83 Miscellaneous Articles of Base Metal 8301.10-8301.50 A change to subheadings 8301.10 through 8301.50 from any chapter; or A change to subheadings 8301.10 through 8301.50 from subheading 8301.60, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 8301.60-8301.70 A change to subheadings 8301.60 through 8301.70 from any other chapter. 83.02-83.04 A change to headings 83.02 through 83.04 from any other chapter. 8305.10-8305.20 A change to subheadings 8305.10 through 8305.20 from any other chapter; or A change to subheadings 8305.10 through 8305.20 from subheading 8305.90, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 8305.90 A change to subheading 8305.90 from any other chapter. 83.06-83.07 A change to headings 83.06 through 83.07 from any other chapter.; or A change to headings 83.06 through 83.07 from within headings 83.06 through 83.07, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% the transaction value method is used, or b) 50% where the net cost method is used. 8308.10-8308.20 A change to subheadings 8308.10 through 8308.20 from any other chapter; or A change to subheadings 8308.10 through 8308.20 from subheading 8308.90, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 8308.90 A change to subheading 8308.90 from any other chapter. 83.09-83.10 A change to headings 83.09 through 83.10 from any other chapter. 8311.10-8311.30 A change to subheadings 8311.10 through 8311.30 from any other chapter; or A change to subheadings 8311.10 through 8311.30 from subheading 8311.90, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or b) 50% where the net cost method is used. 8311.90 A change to subheading 8311.90 from any other chapter. Annex 00 SECTION XVI Machinery and Mechanical Appliances; Electrical Equipment; Parts Thereof; Sound Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories of Such Articles (Ch. 84-85) Note: For purposes of this Section, the term, "printed circuit assembly", means goods consisting of one or more printed circuits of heading 85.34 with one or more active elements assembled thereon, with or without passive elements. For purposes of this Note, "active elements" means diodes, transistors and similar semiconductor devices, whether or not photosensitive, of heading 85.41, and integrated circuits and microassemblies of heading 85.42. Chapter 84 Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof Note X: Tariff item 8473.30.a3 covers the following parts of printers: (1) Control or command assemblies for printers of subheading 8471.92, incorporating at least two of the following: printed circuit assembly; hard or flexible (floppy) disc drive; keyboard; user interface; (2) Light source assemblies for printers of subheading 8471.92, incorporating at least two of the following: light emitting diode assembly; gas laser; mirror polygon assembly; base casting; (3) Laser imaging assemblies for the printers of subheading 8471.92, incorporating at least two of the following: photoreceptor belt or cylinder; toner receptacle unit; toner developing unit; charge/discharge unit; cleaning unit; (4) Image fixing assemblies for the printers of subheading 8471.92, incorporating at least two of the following: fuser; pressure roller; heating element; release oil dispenser; cleaning unit; electrical control; (5) Ink jet marking assemblies for the printers of subheading 8471.92, incorporating at least two of the following: thermal print head; ink dispensing unit; nozzle and reservoir unit; ink heater; (6) Maintenance/sealing assemblies for the printers of subheading 8471.92, incorporating at least two of the following: vacuum unit; ink jet covering unit; sealing unit; purging unit; (7) Paper handling assemblies for the printers of subheading 8471.92, incorporating at least two of the following: paper transport belt; roller; print bar; carriage; gripper roller; paper storage unit; exit tray; (8) Thermal transfer imaging assemblies for the printers of subheading 8471.92, incorporating at least two of the following: thermal print head; cleaning unit; supply or take-up roller; (9) Ionographic imaging assemblies for the printers of subheading 8471.92, incorporating at least two of the following: ion generation and emitting unit; air assist unit; printed circuit assembly; charge receptor belt or cylinder; toner receptacle unit; toner distribution unit; developer receptacle and distribution unit; developing unit; charge/discharge unit; cleaning unit; and (10) Combinations of the above specified assemblies. 8401.10-8401.30 A change to subheadings 8401.10 through 8401.30 from any other heading; or A change to subheadings 8401.10 through 8401.30 from subheading 8401.40, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8401.40 A change to subheading 8401.40 from any other heading. 8402.11-8402.20 A change to subheadings 8402.11 through 8402.20 from any other heading; or A change to subheadings 8402.11 through 8402.20 from subheading 8402.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8402.90 A change to subheading 8402.90 from any other heading; or A change to subheading 8402.90 from within subheading 8402.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8403.10 A change to subheading 8403.10 from any other heading; or A change to subheading 8403.10 from subheading 8403.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8403.90 A change to subheading 8403.90 from any other heading. 8404.10-8404.20 A change to subheadings 8404.10 through 8404.20 from any other heading; or A change to subheadings 8404.10 through 8404.20 from subheading 8404.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8404.90 A change to subheading 8404.90 from any other heading. 8405.10 A change to subheading 8405.10 from any other heading; or A change to subheadings 8405.10 from subheading 8405.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8405.90 A change to subheading 8405.90 from any other heading. 8406.11-8406.19 A change to subheadings 8406.11 through 8406.19 from any other subheading outside that group, except from Canadian tariff item 8406.90.32 or 8406.90.34, U.S. tariff item 8406.90.20, 8406.90.40, 8406.90.50 or 8406.90.70, Mexican tariff item 8406.90.x1 or 8406.90.x2. 8406.90 8406.90.a1 A change to Canadian tariff item 8406.90.32, U.S. tariff item 8406.90.20, Mexican tariff item 8406.90.x1 from Canadian tariff item 8406.90.31, U.S. tariff item 8406.90.30 or 8406.90.60, Mexican tariff item 8406.90.x3 or any other heading. US8406.90.50 A change to U.S. tariff item 8406.90.50 from Canadian tariff item 8406.90.31, U.S. tariff item 8406.90.30 or 8406.90.60, Mexican tariff item 8406.90.x3 or any other heading. 8406.90.a2 A change to Canadian tariff item 8406.90.34, U.S. tariff item 8406.90.40, Mexican tariff item 8406.90.x2 from any other tariff item. 8406.90.a3 A change to Canadian tariff item 8406.90.31, U.S. tariff item 8406.90.30, Mexican tariff item 8406.90.x3 from any other tariff item. US8406.90.60 A change to U.S. tariff item 8406.90.60 from any other tariff item. US8406.90.70 A change to U.S. tariff item 8406.90.70 from any other tariff item. 8406.90 A change to subheading 8406.90 from any other heading. 84.07-84.08 A change to headings 84.07 through 84.08 from any other heading, including another heading within that group, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8409.10 A change to subheading 8409.10 from any other heading. 8409.91 A change to subheading 8409.91 from any other heading; or A change to subheading 8409.91 from within subheading 8409.91, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8409.99 A change to subheading 8409.99 from any other heading; or A change to subheading 8409.99 from within subheading 8409.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8410.11-8410.13 A change to subheadings 8410.11 through 8410.13 from any other heading; or A change to subheadings 8410.11 through 8410.13 from subheading 8410.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8410.90 A change to subheading 8410.90 from any other heading. 8411.11-8411.82 A change to subheadings 8411.11 through 8411.82 from any other heading; or A change to subheadings 8411.11 through 8411.82 from any of subheadings 8411.91 through 8411.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8411.91-8411.99 A change to subheadings 8411.91 through 8411.99 from any other heading. 8412.10-8412.80 A change to subheadings 8412.10 through 8412.80 from any other heading; or A change to subheadings 8412.10 through 8412.80 from subheading 8412.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8412.90 A change to subheading 8412.90 from any other heading. 8413.11-8413.82 A change to subheadings 8413.11 through 8413.82 from any other heading; or A change to subheadings 8413.11 through 8413.82 from any of subheadings 8413.91 through 8413.92, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8413.91 A change to subheading 8413.91 from any other heading. 8413.92 A change to subheading 8413.92 from any other heading; or A change to subheading 8413.92 from within subheading 8409.92, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8414.10-8414.20 A change to subheadings 8414.10 through 8414.20 from any other heading; or A change to subheadings 8414.10 through 8414.20 from subheading 8414.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8414.30 A change to subheading 8414.30 from any other subheading, except from Canadian tariff item 8414.90.21 or 8414.90.51, U.S. tariff item 8414.90.20, Mexican tariff item 8414.90.x1. 8414.40-8414.80 A change to subheadings 8414.40 through 8414.80 from any other heading; or A change to subheadings 8414.40 through 8414.80 from subheading 8414.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8414.90 A change to subheading 8414.90 from any other heading; or A change to subheading 8414.90 from within subheading 8414.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8415.10 A change to subheading 8415.10 from any other subheading, except from Canadian tariff item 8415.90.a1, U.S. tariff item 8415.90.h1, Mexican tariff item 8415.90.x1 or from assemblies incorporating at least two of the following: compressor, condenser,evaporator, connecting tubing. 8415.81-8415.83 A change to subheadings 8415.81 through 8415.83 from any other subheading outside that group, except from Canadian tariff item 8415.90.a1, U.S. tariff item 8415.90.h1, Mexican tariff item 8415.90.x1 or from assemblies for goods of subheadings 8415.10 through 8415.83, incorporating at least two of the following: compressor, condenser,evaporator, connecting tubing; or A change to subheadings 8415.81 through 8415.83 from any of Canadian tariff item 8415.90.a1, U.S. tariff item 8415.90.h1, Mexican tariff item 8415.90.x1 or assemblies for goods of subheadings 8415.10 through 8415.83, incorporating at least two of the following: compressor, condenser,evaporator, connecting tubing, whether or not there is also a change from any other subheading outside that group, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8415.90 8415.90.a1 A change to Canadian tariff item 8415.90.a1, U.S. tariff item 8415.90.h1, Mexican tariff item 8415.90.x1 from any other tariff item. 8415.90 A change to subheading 8415.90 from any other heading. 8416.10-8416.30 A change to subheadings 8416.10 through 8416.30 from any other heading; or A change to subheadings 8416.10 through 8416.30 from subheading 8416.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8416.90 A change to subheading 8416.90 from any other heading. 8417.10-8417.80 A change to subheadings 8417.10 through 8417.80 from any other heading; or A change to subheadings 8417.10 through 8417.80 from subheading 8417.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8417.90 A change to subheading 8417.90 from any other heading. 8418.10-8418.21 A change to subheadings 8418.10 through 8418.21 from any other subheading, except from subheading 8418.91 or Canadian tariff item 8418.99.a1, U.S. tariff item 8418.99.h1, Mexican tariff item 8418.99.x1, or from assemblies incorporating at least two of the following: compressor, condenser, evaporator, connecting tubing. 8418.22 A change to subheading 8418.22 from any other heading; or A change to subheadings 8418.22 from any of subheadings 8418.91 through 8418.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8418.29-8418.40 A change to subheadings 8418.29 through 8418.40 from any other subheading outside that group, except from subheading 8418.91 or Canadian tariff item 8418.99.a1, U.S. tariff item 8418.99.h1, Mexican tariff item 8418.99.x1, or from assemblies incorporating at least two of the following: compressor, condenser, evaporator, connecting tubing. 8418.50-8418.69 A change to subheadings 8418.50 through 8418.69 from any other heading; or A change to subheadings 8418.50 through 8418.69 from any of subheadings 8418.91 through 8418.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8418.91 A change to subheading 8418.91 from any other subheading. 8418.99 8418.99.a1 A change to Canadian tariff item 8418.99.a1, U.S. tariff item 8418.99.h1, Mexican tariff item 8418.99.x1 from any other tariff item. 8418.99 A change to subheading 8418.99 from any other heading. 8419.11-8419.89 A change to subheadings 8419.11 through 8419.89 from any other heading; or A change to subheadings 8419.11 through 8419.89 from subheading 8419.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8419.90 A change to subheading 8419.90 from any other heading; or A change to subheading 8419.90 from within subheading 8419.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8420.10 A change to subheading 8420.10 from any other heading; or A change to subheadings 8420.10 from any of subheadings 8420.91 through 8420.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8420.91-8420.99 A change to subheadings 8420.91 through 8420.99 from any other heading. 8421.11 A change to subheading 8421.11 from any other heading; or A change to subheading 8421.11 from subheading 8421.91, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8421.12 A change to subheading 8421.12 from any other subheading, except from Canadian tariff item 8421.91.a1, 8421.91.a2 or 8537,10.a1, U.S. tariff item 8421.91.h1, 8421.91.h2 or 8537.10.h1, Mexican tariff item 8421.91.x1, 8421.91.x2 or 8537.10.x1. 8421.19-8421.39 A change to subheadings 8421.19 through 8421.39 from any other heading; or A change to subheadings 8421.19 through 8421.39 from any of subheadings 8421.91 through 8421.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8421.91 8421.91.a1 A change to Canadian tariff item 8421.91.a1, U.S. tariff item 8421.91.h1, Mexican tariff item 8421.91.x1 from any other tariff item. 8421.91.a2 A change to Canadian tariff item 8421.91.a2, U.S. tariff item 8421.91.h2, Mexican tariff item 8421.91.x2 from any other tariff item. 8421.91 A change to subheading 8421.91 from any other heading. 8421.99 A change to subheading 8421.99 from any other heading; or A change to subheading 8421.99 from within subheading 8421.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8422.11 A change to subheading 8422.11 from any other subheading, except from Canadian tariff item 8422.90.a1, 8422.90.a2 or 8537.10.a1, U.S. tariff item 8422.90.h1, 8422.90.h2 or 8537.10.h1, Mexican tariff item 8422.90.x1. 8422.90.x2 or 8537.10.x1, or from water circulation systems incorporating a pump, whether or not motorized, and auxiliary apparatus for controlling, filtering, or dispersing a spray. 8422.19-8422.40 A change to subheadings 8422.19 through 8422.40 from any other heading; or A change to subheadings 8422.19 through 8422.40 from subheading 8422.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8422.90 8422.90.a1 A change to Canadian tariff item 8422.90.a1, U.S. tariff item 8422.90.h1, Mexican tariff item 8422.90.x1 from any other tariff item. 8422.90.a2 A change to Canadian tariff item 8422.90.a2, U.S. tariff item 8422.90.h2, Mexican tariff item 8422.90.h2 from any other tariff item. 8422.90 A change to subheading 8422.90 from any other heading. 8423.10-8423.89 A change to subheadings 8423.10 through 8423.89 from any other heading; or A change to subheadings 8423.10 through 8423.89 from subheading 8423.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8423.90 A change to subheading 8423.90 from any other heading. 8424.10-8424.89 A change to subheadings 8424.10 through 8424.89 from any other heading; or A change to subheadings 8424.10 through 8424.89 from subheading 8424.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8424.90 A change to subheading 8424.90 from any other heading. 84.25-84.26 A change to headings 84.25 through 84.26 from any other heading, except from heading 84.31; or A change to headings 84.25 through 84.26 from heading 84.31, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8427.10 8427.10.a1 A change to Canadian tariff item 8427.10.a1, U.S. tariff item 8427.10.h1, Mexican tariff item 8427.10.x1 from any other heading, except from heading 84.07 or 84.08 or subheading 8431.20 or 8483.40; or A change to Canadian tariff item 8427.10.a1, U.S. tariff item 8427.10.h1, Mexican tariff item 8427.10.x1 from any of headings 84.07 or 84.08 or subheadings 8431.20 or 8483.40, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8427.10 A change to subheading 8427.10 from any other heading, except from subheading 8431.20; or A change to subheading 8427.10 from subheading 8431.20, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8427.20 8427.20.a1 A change to Canadian tariff item 8427.20.a1, U.S. tariff item 8427.20.h1, Mexican tariff item 8427.20.x1 from any other heading, except from heading 84.07 or 84.08 or subheading 8431.20 or 8483.40; or A change to Canadian tariff item 8427.20.a1, U.S. tariff item 8427.20.h1, Mexican tariff item 8427.20.x1 from any of headings 84.07 or 84.08 or subheadings 8431.20 or 8483.40, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8427.20 A change to subheading 8427.20 from any other heading, except from subheading 8431.20; or A change to subheading 8427.20 from subheading 8431.20, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8427.90 A change to subheading 8427.90 from any other heading, except from subheading 8431.20; or A change to subheading 8427.90 from subheading 8431.20, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 84.28-84.30 A change to headings 84.28 through 84.30 from any other heading outside that group, except from heading 84.31; or A change to headings 84.28 through 84.30 from heading 84.31, whether or not there is also a change from any other heading outside that group, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8431.10 A change to subheading 8431.10 from any other heading; or A change to subheading 8431.10 from within subheading 8431.10, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8431.20 A change to subheading 8431.20 from any other heading outside that group. 8431.31 A change to subheading 8431.31 from any other heading; or A change to subheading 8431.31 from within subheading 8431.31, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8431.39 A change to subheading 8431.39 from any other heading; or A change to subheading 8431.39 from within subheading 8431.39, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8431.41-8431.42 A change to subheadings 8431.41 through 8431.42 from any other heading. 8431.43 A change to subheading 8431.43 from any other heading; or A change to subheading 8431.43 from within subheading 8431.43, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8431.49 A change to subheading 8431.49 from any other heading; or A change to subheading 8431.49 from within subheading 8431.49, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8432.10-8432.80 A change to subheading 8432.10 through 8432.80 from any other heading; or A change to subheadings 8432.10 through 8432.80 from subheading 8432.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8432.90 A change to subheading 8432.90 from any other heading. 8433.11-8433.60 A change to subheadings 8433.11 through 8433.60 from any other heading; or A change to subheadings 8433.11 through 8433.60 from subheading 8433.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8433.90 A change to subheading 8433.90 from any other heading. 8434.10-8434.20 A change to subheadings 8434.10 through 8434.20 from any other heading; or A change to subheadings 8434.10 through 8434.20 from subheading 8434.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8434.90 A change to subheading 8434.90 from any other heading. 8435.10 A change to subheading 8435.10 from any other heading; or A change to subheading 8435.10 from subheading 8435.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8435.90 A change to subheading 8435.90 from any other heading. 8436.10-8436.80 A change to subheadings 8436.10 through 8436.80 from any other heading; or A change to subheadings 8436.10 through 8436.80 from any of subheadings 8436.91 through 8436.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8436.91-8436.99 A change to subheadings 8436.91 through 8436.99 from any other heading. 8437.10-8437.80 A change to subheadings 8437.10 through 8437.80 from any other heading; or A change to subheadings 8437.10 through 8437.80 from subheading 8437.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8437.90 A change to subheading 8437.90 from any other heading. 8438.10-8438.80 A change to subheadings 8438.10 through 8438.80 from any other heading; or A change to subheadings 8438.10 through 8438.80 from subheading 8438.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8438.90 A change to subheading 8438.90 from any other heading. 8439.10-8439.30 A change to subheadings 8439.10 through 8439.30 from any other heading; or A change to subheadings 8439.10 through 8439.30 from any of subheadings 8439.91 through 8439.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8439.91-8439.99 A change to subheadings 8439.91 through 8439.99 from any other heading. 8440.10 A change to subheading 8440.10 from any other heading; or A change to subheading 8440.10 from subheading 8440.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8440.90 A change to subheading 8440.90 from any other heading. 8441.10-8441.80 A change to subheadings 8441.10 through 8441.80 from any other heading; or A change to subheadings 8441.10 through 8441.80, from subheading 8441.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8441.90 A change to subheading 8441.90 from any other heading; or A change to subheading 8441.90 from within subheading 8441.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8442.10-8442.30 A change to subheadings 8442.10 through 8442.30 from any other heading; or A change to subheadings 8442.10 through 8442.30 from any of subheadings 8442.40 through 8442.50, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8442.40-8442.50 A change to subheadings 8442.40 through 8442.50 from any other heading. 8443.11-8443.50 A change to subheadings 8443.11 through 8443.50 from any other heading; or A change to subheadings 8443.11 through 8443.50 from any of subheadings 8443.60 or 8443.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8443.60 A change to subheading 8443.60 from any other heading; or A change to subheading 8443.60 from subheading 8443.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8443.90 A change to subheading 8443.90 from any other heading. 84.44-84.47 A change to headings 84.44 through 84.47 from any other heading outside that group, except from heading 84.48; or A change to headings 84.44 through 84.47 from heading 84.48, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8448.11-8448.19 A change to subheadings 8448.11 through 8448.19 from any other heading; or A change to subheadings 8448.11 through 8448.19 from any of subheadings 8448.20 through 8448.59, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8448.20-8448.59 A change to subheadings 8448.20 through 8448.59 from any other heading. 84.49 A change to heading 84.49 from any other heading. 8450.11-8450.20 A change to subheadings 8450.11 through 8450.20 from any other subheading outside that group, except from Canadian tariff item 8450.90.a1, 8450.90.a2 or 8537.10.a1, U.S. tariff item 8450.90.h1, 8450.90.h2 or 8537.10.h1, Mexican tariff item 8450.90.x1, 8450.90.x2 or 8537.10.x1, or from washer assemblies incorporating at least two of the following: agitator, motor, transmission, clutch. 8450.90 8450.90.a1 A change to Canadian tariff item 8450.90.a1, U.S. tariff item 8450.90.h1, Mexican tariff item 8450.90.x1 from any other tariff item. 8450.90.a2 A change to Canadian tariff item 8450.90.a2, U.S. tariff item 8450.90.h2, Mexican tariff item 8450.90.x2 from any other tariff item. 8450.90 A change to subheading 8450.90 from any other heading. 8451.10 A change to subheading 8451.10 from any other heading; or A change to subheadings 8451.10 from subheading 8451.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8451.21-8451.29 A change to subheadings 8451.21 through 8451.29 from any other subheading outside that group, except from Canadian tariff item 8451.90.a1 or 8451.90.a2, U.S. tariff item 8451.90.h1 or 8451.90.h2, Mexican tariff item 8451.90.x1 or 8451.90.x2, or subheading 8537.10. 8451.30-8451.80 A change to subheadings 8451.30 through 8451.80 from any other heading; or A change to subheadings 8451.30 through 8451.80 from subheading 8451.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8451.90 8451.90.a1 A change to Canadian tariff item 8451.90.a1, U.S. tariff item 8451.90.h1, Mexican tariff item 8451.90.x1 from any other tariff item. 8451.90.a2 A change to Canadian tariff item 8451.90.a2, U.S. tariff item 8451.90.h2, Mexican tariff item 8451.90.x2 from any other tariff item. 8451.90 A change to subheading 8451.90 from any other heading. 8452.10-8452.30 A change to subheadings 8452.10 through 8452.30 from any other heading; or A change to subheadings 8452.10 through 8452.30 from any of subheadings 8452.40 or 8452.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8452.40-8452.90 A change to subheadings 8452.40 through 8452.90 from any other heading. 8453.10-8453.80 A change to subheadings 8453.10 through 8453.80 from any other heading; or A change to subheadings 8453.10 through 8453.80 from subheading 8453.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8453.90 A change to subheading 8453.90 from any other heading. 8454.10-8454.30 A change to subheadings 8454.10 through 8454.30 from any other heading; or A change to subheadings 8454.10 through 8454.30 from subheading 8454.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8454.90 A change to subheading 8454.90 from any other heading. 8455.10-8455.22 A change to subheadings 8455.10 through 8455.22 from any other subheading outside that group, except from Canadian tariff item 8455.90.a1, U.S. tariff item 8455.90.h1, Mexican tariff item 8455.90.x1. 8455.30 A change to subheading 8455.30 from any other heading; or A change to subheadings 8455.30 from subheading 8455.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8455.90 A change to subheading 8455.90 from any other heading. 8456.10 A change to subheading 8456.10 from any other heading, except from more than one of the following: o Canadian tariff item 8466.93.a1, U.S. tariff 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8537.10, o subheading 9013.20. 8456.20-8456.90 A change to subheadings 8456.20 through 8456.90 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 84.57 A change to heading 84.57 from any other heading, except from heading 84.59 or from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8458.11 A change to subheading 8458.11 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8458.19 A change to subheading 8458.19 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8458.91 A change to subheading 8458.91 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8458.99 A change to subheading 8458.99 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8459.10 A change to subheading 8459.10 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8459.21 A change to subheading 8459.21 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10; or A change to subheading 8459.21 from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8459.29 A change to subheading 8459.29 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8459.31 A change to subheading 8459.31 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10; or A change to subheading 8459.31 from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8459.39 A change to subheading 8459.39 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8459.40-8459.51 A change to subheadings 8459.40 through 8459.51 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10; or A change to subheadings 8459.40 through 8459.51 from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8459.59 A change to subheading 8459.59 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8459.61 A change to subheading 8459.61 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10; or A change to subheading 8459.61 from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8459.69 A change to subheading 8459.69 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8459.70 8459.70.a1 A change to Canadian tariff item 8459.70.a1, U.S. tariff item 8459.70.h1, Mexican tariff item 8459.70.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10; or A change to Canadian tariff item 8459.70.a1, U.S. tariff item 8459.70.h1, Mexican tariff item 8459.70.x1 from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8459.70 A change to subheading 8459.70 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8460.11 A change to subheading 8460.11 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8460.19 A change to subheading 8460.19 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8460.21 A change to subheading 8460.21 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8460.29 A change to subheading 8460.29 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8460.31 A change to subheading 8460.31 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8460.39 A change to subheading 8460.39 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8460.40 8460.40.a1 A change to Canadian tariff item 8460.40.a1, U.S. tariff item 8460.40.h1, Mexican tariff item 8460.40.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8460.40 A change to subheading 8460.40 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8460.90 8460.90.a1 A change to Canadian tariff item 8460.90.a1, U.S. tariff item 8460.90.h1, Mexican tariff item 8460.90.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8460.90 A change to subheading 8460.90 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. 8461.10 8461.10.a1 A change to Canadian tariff item 8461.10.a1, U.S. tariff item 8461.10.h1, Mexican tariff item 8461.10.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8461.10 A change to subheading 8461.10 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.83.x1. 8461.20 8461.20.a1 A change to Canadian tariff item 8461.20.a1, US. tariff item 8461.20.h1, Mexican tariff item 8461.20.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8461.20 A change to subheading 8461.20 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.83.x1. 8461.30 8461.30.a1 A change to Canadian tariff item 8461.30.a1, U.S. tariff item 8461.30.h1, Mexican tariff item 8461.30.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8461.30 A change to subheading 8461.30 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1. 8461.40 A change to subheading 8461.40 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1. 8461.50 8461.50.a1 A change to Canadian tariff item 8461.50.a1, U.S. tariff item 8461.50.h1, Mexican tariff item 8461.50.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8461.50 A change to subheading 8461.50 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1. 8461.90 8461.90.a1 A change to Canadian tariff item 8461.90.a1, U.S. tariff item 8461.90.h1, Mexican tariff item 8461.90.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8461.90 A change to subheading 8461.90 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1. 8462.10 A change to subheading 8462.10 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. 8462.21 A change to subheading 8462.21 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8462.29 A change to subheading 8462.29 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. 8462.31 A change to subheading 8462.31 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8462.39 A change to subheading 8462.29 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. 8462.41 A change to subheading 8462.41 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8462.49 A change to subheading 8462.49 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. 8462.91 8462.91.a1 A change to Canadian tariff item 8462.91.a1, U.S. tariff item 8462.91.h1, 8462.91.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8462.91 A change to subheading 8462.91 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. 8462.99 8462.99.a1 A change to Canadian tariff item 8462.99.a1, U.S. tariff item 8462.99.h1, Mexican tariff item 8462.99.x1 from any other heading, except from more than one of the following: o subheadings 8413.50 through 8413.60, o Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, o subheading 8501.32 or 8501.52, o subheading 8537.10. 8462.99 A change to subheading 8462.99 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. 84.63 A change to heading 84.63 from any other heading, except from Canadian tariff 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1 or subheading 8501.32 or 8501.52. 84.64 A change to heading 84.64 from any other heading, except from subheading 8466.91; or A change to heading 84.64 from subheading 8466.91, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 84.65 A change to heading 84.65 from any other heading, except from subheading 8466.92; or A change to heading 84.65 from subheading 8466.92, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 84.66 A change to heading 84.66 from any other heading. 8467.11-8467.89 A change to subheadings 8467.11 through 8467.89 from any other heading; or A change to subheadings 8467.11 through 8467.89 from any of subheadings 8467.91, 8467.92 or 8467.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8467.91-8467.99 A change to subheadings 8467.91 through 8467.99 from any other heading. 8468.10-8468.80 A change to subheadings 8468.10 through 8468.80 from any other heading; or A change to subheadings 8468.10 through 8468.80 from subheading 8468.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8468.90 A change to subheading 8468.90 from any other heading. 84.69 8469.10.a1 A change to Canadian tariff item 8469.10.20, U.S.tariff item 8469.10.h1, Mexican tariff item 8469.10.x1 from any other heading, except from heading 84.73; or A change to Canadian tariff item 8469.10.a1, U.S. tariff item 8469.10.h1, Mexican tariff item 8469.10.x1 from heading 84.73, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50% under the net cost method. 84.69 A change to headings 84.69 from any other heading, except from heading 84.73; or A change to heading 84.69 from heading 84.73, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 84.70 A change to headings 84.70 from any other heading, except from heading 84.73; or A change to heading 84.70 from heading 84.73, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8471.10 A change to subheading 8471.10 from any other heading, except from heading 84.73; or A change to subheading 8471.10 from heading 84.73, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8471.20-8471.91 A change to subheadings 8471.20 through 8471.91 from any other subheading outside that group. 8471.92 8471.92.a1 A change to Canadian tariff item 8471.92.a1, U.S. tariff item 8471.92.h1, Mexican tariff item 8471.92.x1 from any other subheading, except from subheading 8540.30. 8471.92.a2 A change to Canadian tariff item 8471.92.a2, U.S. tariff item 8471.92.h2, Mexican tariff item 8471.92.x2 from any other tariff item, except from Canadian tariff item 8473.30.a3, 8473.30.a1 or 8548.00.a1, U.S. tariff item 8473.30.h3, 8473.30.h1 or 8548.00.h1, Mexican tariff item 8473.30.x3, 8473.30.x1 or 8548.00.x1. 8471.92.a3 A change to Canadian tariff item 8471.92.a3, U.S. tariff item 8471.92.h3, Mexican tariff item 8471.92.x3 from any other tariff item, except from Canadian tariff item 8473.30.a1 or 8548.00.a1, U.S. tariff item 8473.30.h1 or 8548.00.h1, Mexican tariff item 8473.30.x1 or 8548.00.x1. 8471.92.a4 A change to Canadian tariff item 8471.92.a4, U.S. tariff item 8471.92.h4, Mexican tariff item 8471.92.x4 from any other tariff item, except from Canadian tariff item 8473.30.a3, 8473.30.a1 or 8548.00.a1, U.S. tariff item 8473.30.h3, 8473.30.h1 or 8548.00.h1, Mexican tariff item 8473.30.x3, 8473.30.x1 or 8548.00.x1. 8471.92.a5 A change to Canadian tariff item 8471.92.a5, U.S. tariff item 8471.92.h5, Mexican tariff item 8471.92.x5 from any other tariff item, except from Canadian tariff item 8473.30.a3, U.S. tariff item 8473.30.h3, Mexican tariff item 8473.30.x3. 8471.92.a6 A change to Canadian tariff item 8471.92.a6, U.S. tariff item 8471.92.h6, Mexican tariff item 8471.92.x6 from any other tariff item, except from Canadian tariff item 8473.30.a3, U.S. tariff item 8473.30.h3, Mexican tariff item 8473.30.x3. 8471.92.a7 A change to Canadian tariff item 8471.92.a7, U.S. tariff item 8471.92.h7, Mexican tariff item 8471.92.x7 from any other tariff item, except from Canadian tariff item 8473.30.a3, U.S. tariff item 8473.30.h3, Mexican tariff item 8473.30.x3. 8471.92 A change to subheading 8471.92 from any other subheading. 8471.93 A change to subheading 8471.93 from any other subheading. 8471.99 8471.99.a1 A change to Canadian tariff item 8471.99.a1, U.S. tariff item 8471.99.15, Mexican tariff item 8471.99.x1 from any other tariff item. 8471.99.a2 A change to Canadian tariff item 8471.99.a2, U.S. tariff item 8471.99.32 or 8471.99.34, Mexican tariff item 8471.99.x2 from any other tariff item. 8471.99.a3 A change to Canadian tariff item 8471.99.a3, U.S. tariff item 8471.99.60, Mexican tariff item 8471.99.x3 from any other tariff item. 8471.99 A change to any tariff item within subheading 8471.99 from any other tariff item, including another tariff item within that subheading. 84.72 A change to heading 84.72 from any other heading, except from heading 84.73; or A change to heading 84.72 from heading 84.73, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8473.10 8473.10.a1 A change to Canadian tariff item 8473.10.a1, U.S. tariff item 8473.10.h1, Mexican tariff item 8473.10.x1 from any other heading. 8473.10.a2 A change to Canadian tariff item 8473.10.a2, U.S. tariff item 8473.10.h2, Mexican tariff item 8473.10.x2 from any other heading; or A change to Canadian tariff item 8473.10.a2, U.S. tariff item 8473.10.h2, Mexican tariff item 8473.10.x2 from within Canadian tariff item 8473.10.a2, U.S. tariff item 8473.10.h2, Mexican tariff item 8473.10.x2, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8473.21 A change to subheading 8473.21 from any other heading; or A change to subheading 8473.21 from within subheading 8473.21, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8473.29 A change to subheading 8473.29 from any other heading; or A change to subheading 8473.29 from within subheading 8473.29, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8473.30 8473.30.a1 A change to Canadian tariff item 8473.30.a1, U.S. tariff item 8473.30.h1, Mexican tariff item 8473.30.x1 from any other tariff item. 8473.30.a2 A change to Canadian tariff item 8473.30.a2, U.S. tariff item 8473.30.h2, Mexican tariff item 8473.30.x2 from any other tariff item. 8473.30.a3 A change to Canadian tariff item 8473.30.a3, U.S. tariff item 8473.30.h3, Mexican tariff item 8473.30.x3 from any other tariff item. 8473.30 A change to subheading 8473.30 from any other heading. 8473.40 A change to subheading 8473.40 from any other heading; or A change to subheading 8473.40 from within heading 8473.40, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8474.10-8474.80 A change to subheadings 8474.10 through 8474.80 from any other heading; or A change to subheadings 8474.10 through 8474.80 from subheading 8474.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8474.90 A change to subheading 8474.90 from any other heading; or A change to subheading 8474.90 from within subheading 8474.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8475.10-8475.20 A change to subheadings 8475.10 through 8475.20 from any other heading; or A change to subheadings 8475.10 through 8475.20 from subheading 8475.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8475.90 A change to subheading 8475.90 from any other heading. 8476.11-8476.19 A change to subheadings 8476.11 through 8476.19 from any other heading; or A change to subheadings 8476.11 through 8476.19 from subheading 8476.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8476.90 A change to subheading 8476.90 from any other heading. 8477.10 A change to subheading 8477.10 from any other subheading, except from Canadian tariff item 8477.90.a1, U.S. tariff item 8477.90.h1, Mexican tariff item 8477.90.x1 or from more than one of the following: o Canadian tariff item 8477.90.a2, U.S. tariff item 8477.90.h2, Mexican tariff item 8477.x2, o Canadian tariff item 8537.10.a1, U.S. tariff item 8537.10.h1, Mexican tariff item 8537.10.x1. 8477.20 A change to subheading 8477.20 from any other subheading, except from Canadian tariff item 8477.90.a1, U.S. tariff item 8477.90.h1, Mexican tariff item 8477.90.x1 or from more than one of the following: o Canadian tariff item 8477.90.a2, U.S. tariff item 8477.90.h2, Mexican tariff item 8477.x2, o Canadian tariff item 8537.10.a1, U.S. tariff item 8537.10.h1, Mexican tariff item 8537.10.x1. 8477.30 A change to subheading 8477.30 from any other subheading, except from Canadian tariff item 8477.90.a1, U.S. tariff item 8477.90.h1, Mexican tariff item 8477.90.x1 or from more than one of the following: o Canadian tariff item 8477.90.a3, U.S. tariff item 8477.90.h3, Mexican tariff item 8477.90.x3, o Canadian tariff item 8537.10.a1, U.S. tariff item 8537.10.h1, Mexican tariff item 8537.10.x1. 8477.40-8477.80 A change to subheadings 8477.40 through 8477.80 from any other heading; or A change to subheadings 8477.40 through 8477.80 from subheading 8477.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8477.90 A change to subheading 8477.90 from any other heading. 8478.10 A change to subheading 8478.10 from any other heading; or A change to subheading 8478.10 from subheading 8478.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8478.90 A change to subheading 8478.90 from any other heading. 8479.10-8479.81 A change to subheadings 8479.10 through 8479.81 from any other heading; or A change to subheadings 8479.10 through 8479.81 from subheading 8479.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8479.82 8479.82.x1 A change to Mexican tariff item 8479.82.x1 from any other tariff item, except from Canadian tariff item 8479.90.a1, 8479.90.a2, 8479.90.a3 or 8479.90.a4, U.S. tariff item 8479.90.h1, 8479.90.h2, 8479.90.h3 or 8479.90.h4, Mexican tariff item 8479.90.x1, 8479.90.x2, 8479.90.x3 or 8479.90.x4, or combinations thereof. 8479.82 A change to subheading 8479.82 from any other heading; or A change to subheading 8479.82 from subheading 8479.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8479.89 8479.89.a1 A change to Canadian tariff item 8479.89.a1, U.S. tariff item 8479.89.h1 from any other tariff item, except from Canadian tariff item 8479.90.a1, 8479.90.a2, 8479.90.a3 or 8479.90.a4, U.S. tariff item 8479.90.h1, 8479.90.h2, 8479.90.h3 or 8479.90.h4, Mexican tariff item 8479.90.x1, 8479.90.x2, 8479.90.x3 or 8479.90.x4, or combinations thereof. 8479.89 A change to subheading 8479.89 from any other heading; or A change to subheading 8479.89 from subheading 8479.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8479.90 8479.90.a1 A change to Canadian tariff item 8479.90.a1, U.S. tariff item 8479.90.h1, Mexican tariff item 8479.90.x1 from any other tariff item. 8479.90.a2 A change to Canadian tariff item 8479.90.a2, U.S. tariff item 8479.90.h2, Mexican tariff item 8479.90.x2 from any other tariff item. 8479.90.a3 A change to Canadian tariff item 8479.90.a3, U.S. tariff item 8479.90.h3, Mexican tariff item 8479.90.x3 from any other tariff item. 8479.90.a4 A change to Canadian tariff item 8479.90.a4, U.S. tariff item 8479.90.h4, Mexican tariff item 8479.90.x4 from any other tariff item. 8479.90 A change to subheading 8479.90 from any other heading. 84.80 A change to heading 84.80 from any other heading. 8481.10-8481.80 A change to subheadings 8481.10 through 8481.80 from any other heading; or A change to subheadings 8481.10 through 8481.80 from subheading 8481.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8481.90 A change to subheading 8481.90 from any other heading. 8482.10-8482.80 A change to subheadings 8482.10 through 8482.80 from any other subheading outside that group, except from Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1; or A change to subheadings 8482.10 through 8482.80 from Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8482.91-8482.99 A change to subheadings 8482.91 through 8482.99 from any other heading. 8483.10 A change to subheading 8483.10 from any other heading; or A change to subheadings 8483.10 from subheading 8483.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8483.20 A change to subheading 8483.20 from any other subheading, except from subheadings 8482.10 through 8482.80, Canadian tariff item 8482.99.a1, U.S. tariff item 8482.90.h1, Mexican tariff item 8482.90.x1 or subheading 8483.90; or A change to subheadings 8483.20 from any of subheadings 8482.10 through 8482.80, Canadian tariff item 8482.99.a1, U.S. tariff item 8482.90.h1, Mexican tariff item 8482.90.x1 or subheading 8483.90, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8483.30 A change to subheading 8483.30 from any other heading; or A change to subheadings 8483.30 from subheading 8483.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8483.40-8483.60 A change to subheadings 8483.40 through 8483.60 from any other subheading, except from subheadings 8482.10 through 8482.80, Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1 or subheading 8483.90; or A change to subheadings 8483.40 through 8483.60 from any of subheadings 8482.10 through 8482.80, Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1 or subheading 8483.90, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8483.90 A change to subheading 8483.90 from any other heading. 84.84-84.85 A change to headings 84.84 through 84.85 from any other heading, including another heading within that group. Chapter 85 Electrical Machinery and Equipment and Parts Thereof; Sound Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories of Such Articles Note X: Canadian tariff item 8517.90.a3, U.S. tariff item 8517.90.h3, Mexican tariff item 8517.90.x3 covers the following parts of facsimile machines: (1) Control or command assemblies, incorporating at least two of the following: printed circuit assembly; modem; hard or flexible (floppy) disc drive; keyboard; user interface; (2) Optics module assemblies, incorporating at least two of the following: optics lamp; charge couples device and appropriate optics; lenses; mirror; (3) Laser imaging assemblies, incorporating at least two of the following: photoreceptor belt or cylinder; toner receptacle unit; toner developing unit; charge/discharge unit; cleaning unit; (4) Ink jet marking assemblies, incorporating at least two of the following: thermal print head; ink dispensing unit; nozzle and reservoir unit; ink heater; (5) Thermal transfer imaging assemblies, incorporating at least two of the following: thermal print head; cleaning unit; supply or take-up roller; (6) Ionographic imaging assemblies, incorporating at least two of the following: ion generation and emitting unit; air assist unit; printed circuit assembly; charge receptor belt or cylinder; toner receptacle unit; toner distribution unit; developer receptacle and distribution unit; developing unit; charge/discharge unit; cleaning unit; (7) Image fixing assemblies, incorporating at least two of the following: fuser; pressure roller; heating element; release oil dispenser; cleaning unit; electrical control; (8) Paper handling assemblies, incorporating at least two of the following: paper transport belt; roller; print bar; carriage; gripper roller; paper storage unit; exit tray; (9) Combinations of the above specified assemblies. Note Y: For the purposes of this Chapter, references to "high definition" as it applies to television receivers and cathode-ray tubes refers to goods having: (1) an aspect ratio of the screen equal to or greater than 16:9; and (2) a viewing screen capable of displaying more than 700 scanning lines. For the purposes of this Chapter, the video display diagonal is determined by measuring the maximum straight line dimension across the visible portion of the face plate used for displaying video. Note Z: Canadian tariff item 8529.90.a3, U.S. tariff item 8529.90.h3, Mexican tariff item 8529.90.x3 covers the following parts of television receivers: (1) Video intermediate (IF) amplifying and detecting systems; (2) Video processing and amplification systems; (3) Synchronizing and deflection circuitry; (4) Tuners and tuner control systems; (5) Audio detection and amplification systems. Note XX: For the purposes of Canadian tariff item 8540.91.a1, U.S. tariff item 8540.91.h1, Mexican tariff item 8540.91.x1, the term "front panel assembly" refers to an assembly which consists of a glass panel and a shadow mask or aperture grille, attached for ultimate use, which is suitable for incorporation into a colour cathode ray television picture tube (including video monitor cathode-ray tube), and which has undergone the necessary chemical and physical processes for imprinting phosphors on the glass panel with sufficient precision to render a video image when excited by a stream of electrons. 85.01 A change to heading 85.01 from any other heading, except from Canadian tariff item 8503.00.a1, U.S. tariff item 8503.00.h1, Mexican tariff item 8503.00.x1; or A change to heading 85.01 from Canadian tariff item 8503.00.a1, U.S. tariff item 8503.00.h1, Mexican tariff item 8503.00.x1, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 85.02 A change to heading 85.02 from any other heading, except from heading 84.06, 84.11, 85.01 or 85.03; or A change to heading 85.02 from any of headings 84.06, 84.11, 85.01 or 85.03, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 85.03 A change to heading 85.03 from any other heading. 8504.10-8504.34 A change to subheadings 8504.10 through 8504.34 from any other heading; or A change to subheadings 8504.10 through 8504.34 from subheading 8504.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8504.40.a1 A change to Canadian tariff item 8504.40.a1, U.S. tariff item 8504.40.h1, Mexican tariff item 8504.40.x1 from any other subheading. 8504.40.a2 A change to Canadian tariff item 8504.40.a2, U.S. tariff item 8504.40.h2, Mexican tariff item 8504.40.x2 from any other subheading, except from Canadian tariff item 8504.90.a1, U.S. tariff item 8504.40.h1, Mexican tariff item 8504.40.x1. 8504.40 A change to subheading 8504.40 from any other heading; or A change to subheadings 8504.40 from subheading 8504.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8504.50 A change to subheading 8504.50 from any other heading; or A change to subheading 8504.50 from subheading 8504.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8504.90 8504.90.a2 A change to Canadian tariff item 8504.90.a2, U.S. tariff item 8504.90.h2, Mexican tariff item 8504.90.x2 from any other tariff item. 8504.90 A change to subheading 8504.90 from any other heading. 8505.11-8505.30 A change to subheadings 8505.11 through 8505.30 from any other heading;or A change to subheadings 8505.11 through 8505.30 from subheading 8505.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8505.90 A change to subheading 8505.90 from any other heading. 8506.11-8506.20 A change to subheadings 8506.11 through 8506.20 from any other heading; or A change to subheadings 8506.11 through 8506.20 from subheading 8506.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8506.90 A change to subheading 8506.90 from any other heading. 8507.10-8507.80 A change to subheadings 8507.10 through 8507.80 from any other heading; or A change to subheadings 8507.10 through 8507.80 from subheading 8507.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8507.90 A change to subheading 8507.90 from any other heading. 8508.10-8508.80 A change to subheadings 8508.10 through 8508.80 from any other subheading outside that group, except from heading 85.01 or Canadian tariff item 8508.90.a1, U.S. tariff item 8508.90.h1, Mexican tariff item 8508.90.x1; or A change to subheadings 8508.10 through 8508.80 from any of heading 85.01 or Canadian tariff item 8508.90.a1, U.S. tariff item 8508.90.h1, Mexican tariff item 8508.90.x1, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8508.90 A change to subheading 8508.90 from any other heading. 8509.10-8509.40 A change to subheadings 8509.10 through 8509.40 from any other subheading outside that group, except from heading 85.01 or Canadian tariff item 8509.90.a1, U.S. tariff item 8509.90.h1, Mexican tariff item 8509.90.x1; or A change to subheadings 8509.10 through 8509.40 from any of heading 85.01 or Canadian tariff item 8509.90.a1, U.S. tariff item 8509.90.h1, Mexican tariff item 8509.90.x1, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8509.80 A change to subheading 8509.80 from any other heading; or A change to subheading 8509.80 from subheading 8509.90, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used; or b) 50% where the net cost method is used. 8509.90 A change to subheading 8509.90 from any other heading. 8510.10-8510.20