Article 309: Import and Export Restrictions

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

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

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

a) limiting or prohibiting the importation from the territory of another Party of such good of that non- Party; or

b) requiring as a condition of export of such good of the Party to the territory of another Party, that the good not be re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.

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

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

Article 310: Customs User Fees

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

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

Article 311: Country of Origin Marking

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

Article 312: Wine and Distilled Spirits

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

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

Article 313: Distinctive Products

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

Article 314: Export Taxes

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

a) exports of any such good to the territory of all other Parties; and

b) any such good when destined for domestic consumption.

Article 315: Other Export Measures

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

a) the restriction does not reduce the proportion of the total export shipments of the specific good made available to that other Party relative to the total supply of that good of the Party maintaining the restriction as compared to the proportion prevailing in the most recent 36month period for which data are available prior to the imposition of the measure, or in such other representative period on which the Parties may agree;

b) the Party does not impose a higher price for exports of a good to that other Party than the price charged for such good when consumed domestically, by means of any measure, such as licenses, fees, taxation and minimum price requirements. The foregoing provision does not apply to a higher price that may result from a measure taken pursuant to subparagraph (a) that only restricts the volume of exports; and

c) the restriction does not require the disruption of normal channels of supply to that other Party or normal proportions among specific goods or categories of goods supplied to that other Party.

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

Article 316: Consultations and Committee on Trade in Goods

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

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

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

Article 317: Third Country Dumping

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

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

Article 318: Definitions

For purposes of this Chapter:

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

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

consumed means:

a) actually consumed; or

b) further processed or manufactured so as to result in a substantial change in value, form or use of the good or in the production of another good;

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

a) charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT, or any equivalent provision of a successor agreement to which all Parties are party, in respect of like, directly competitive or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;

b) antidumping or countervailing duty that is applied pursuant to a Party's domestic law and not applied inconsistently with Chapter Nineteen (Review and Dispute Settlement in Antidumping and Countervailing Duty Matters);

c) fee or other charge in connection with importation commensurate with the cost of services rendered;

d) premium offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions, tariff rate quotas or tariff preference levels; and

e) fee applied pursuant to section 22 of the U.S. Agricultural Adjustment Act , subject to Chapter Seven (Agriculture and Sanitary and Phytosanitary Measures);

distilled spirits include distilled spirits and distilled spirit­containing beverages;

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

duty-free means free of customs duty;

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

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

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

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

performance requirement means a requirement that:

a) a given level or percentage of goods or services be exported;

b) domestic goods or services of the Party granting a waiver of customs duties be substituted for imported goods or services;

c) a person benefitting from a waiver of customs duties purchase other goods or services in the territory of the Party granting the waiver or accord a preference to domestically produced goods or services;

d) a person benefitting from a waiver of customs duties produce goods or provide services, in the territory of the Party granting the waiver, with a given level or percentage of domestic content; or

e) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows;

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

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

satisfactory evidence means:

a) a receipt, or a copy of a receipt, evidencing payment of customs duties on a particular entry;

b) a copy of the entry document with evidence that it was received by a customs administration;

c) a copy of a final customs duty determination by a customs administration respecting the relevant entry;

d) any other evidence of payment of customs duties acceptable under the Uniform Regulations established in accordance with Chapter Five (Customs Procedures);

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

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

a) domestic production;

b) domestic inventory; and

c) other imports as appropriate; and

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

Annex 301.3

Section A - Canadian Measures

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

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

a) New Brunswick Fish Processing Act , R.S.N.B. c. F­18.01 (1982), and Fisheries Development Act, S.N.B. c. F15.1 (1977);

b) Newfoundland Fish Inspection Act , R.S.N. 1990, c. F­12;

c) Nova Scotia Fisheries Act , S.N.S. 1977, c. 9;

d) Prince Edward Island Fish Inspection Act , R.S.P.E.I. 1988, c. F­13; and

e) Quebec Marine Products Processing Act , No. 38, S.Q. 1987, c. 51.

3. Articles 301 and 309 shall not apply to:

a) except as provided in Annex 300-A, Appendix 300-A.1, paragraph 4, measures by Canada respecting the importation of any goods enumerated or referred to in Schedule VII of the Customs Tariff , R.S.C. 1985, c. 41 (3rd Supp.), as amended,

b) measures by Canada respecting the exportation of liquor for delivery into any country into which the importation of liquor is prohibited by law under the existing provisions of the Export Act , R.S.C. 1985, c. E18, as amended,

c) measures by Canada respecting preferential rates for certain freight traffic under the existing provisions of the Maritime Freight Rate Act , R.S.C. 1985, c. M-1, as amended,

d) Canadian excise taxes on absolute alcohol used in manufacturing under the existing provisions of the Excise Tax Act , R.S.C. 1985, c. E-14, as amended, and

e) measures by Canada prohibiting the use of foreign or non-duty paid ships in the coasting trade of Canada unless granted a license under the Coasting Trade Act , S.C. 1992, c. 31,

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

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

5. Articles 301 and 309 shall not apply to:

a) the continuation or prompt renewal of a non-conforming provision of any statute referred to in paragraph 2 or 3; and

b) the amendment to a non-conforming provision of any statute referred to in paragraph 2 or 3 to the extent that the amendment does not decrease the conformity of the provision with Articles 301 and 309.

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

2. Articles 301 and 309 shall not apply to:

a) measures under the existing provisions of Articles 192 through 194 of the General Ways of Communication Act ("Ley de Vias Generales de Comunicación") reserving exclusively to Mexican vessels all services and operations not authorized for foreign vessels and empowering the Mexican Ministry of Communications and Transportation to deny foreign vessels the right to perform authorized services if their country of origin does not grant reciprocal rights to Mexican vessels; and

b) export permit measures applied to goods for exportation to another Party that are subject to quantitative restrictions or tariff rate quotas adopted or maintained by that other Party.

3. Articles 301 and 309 shall not apply to:

a) the continuation or prompt renewal of a non-conforming provision of the statute referred to in paragraph 2(a); and

b) the amendment to a non-conforming provision of the statute referred to in paragraph 2(a) to the extent that the amendment does not decrease the conformity of the provision with Articles 301 and 309.

4.

(a) Notwithstanding Article 309, for the first 10 years after the date of entry into force of this Agreement, Mexico may adopt or maintain prohibitions or restrictions on the importation of used goods provided for in the items, as of August 12, 1992, in the Tariff Schedule of the General Import Duty Act (Tarifa de la "Ley del Impuesto General de Importación") set out below:

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

Item	Description
8407.34.99	Gasoline engines of more than 1,000 cm3, except for motorcycles
8413.11.01	Distributors fitted with a measuring device even if it includes a totalizing mechanism
8413.40.01	Trailer type, from 36 up to 60 m3/hr capacity; without hydraulic elevator for the discharge hose
8426.12.01	Mobile portals on tires and straddle carriers
8426.19.01	Other (overhead travelling cranes, bridge cranes and straddle carriers)
8426.30.01	Portal cranes
8426.41.01	Cranes with structural iron jib (lattice) with mechanical working, self-propelled, with unit weight up to 55 tons
8426.41.02	Cranes with hydraulically actuated rigid jib, selfpropelled with maximum capacity above 9.9 tons and not exceeding 30 tons
8426.41.99	Other (machinery and apparatus, self propelled, on tires)
8426.49.01	Cranes with structural iron jib (lattice) with mechanical working, with unit weight up to 55 tons
8426.49.02	Cranes with hydraulically actuated rigid jib, selfpropelled, with load capacity above 9.9 tons and not exceeding 30 tons
8426.91.01	Cranes, other than those provided for in items 8426.91.02, 8426.91.03 and 8426.91.04
8426.91.02	Cranes with hydraulic working, with articulated or rigid booms, with capacity up to 9.9 tons at 1 meter radius
8426.91.03	Isolated elevating cranes, basket type, with carrying capacity equal to or less than 1 ton and up to 15 meters lift
8426.91.99	Other (machinery and apparatus; designed for mounting on road vehicles)
8426.99.01	Cranes, other than those provided for in items 8426.91.02
8426.99.02	Swivel cranes
8426.99.99	Other (cranes and air cables ("blondines"); overhead travelling cranes, handling or unloading frames, bridge cranes, straddle carriers and straddle cranes)
8427.10.01	With load capacity up to 3,500 kilograms, measured at 620 millimeters from the frontal surface of the forks, without battery or loader
8427.20.01	With explosion or internal combustion engine, with carrying capacity up to 7,000 kilograms, measured at 620 millimeters from the frontal surface of the forks
8428.40.99	Other (escalators and moving walkways)
8428.90.99	Other (machinery and apparatus for lifting, loading, unloading or handling)
8429.11.01	Caterpillar type
8429.19.01	Other (bulldozers and angledozers)
8429.20.01	Graders
8429.30.01	Scrapers
8429.40.01	Tamping machines
8429.51.02	Frontend loader with hydraulic working, wheeltype, with capacity equal or less than 335 HP
8429.51.03	Mechanical shovels, other than those provided for in item 8429.51.01
8429.51.99	Other (mechanical shovels, excavators, loaders and frontend shovel loaders)
8429.52.02	Draglines or excavators, other than those provided for in item 8429.52.01
8429.52.99	Other (machinery with a 360 revolving superstructure)
8429.59.01	Trenchers
8429.59.02	Draglines, with dragging load capacity up to 4,000 kilograms
8429.59.03	Draglines or excavators, other than those provided for in item 8429.59.04
8429.59.99	Other (selfpropelled bulldozers, angledozers, graders, scrapers, mechanical shovels, excavators, loaders, shovel loaders, tamping machines and road rollers)
8430.31.01	Rotation and/or percussion perforators
8430.31.99	Other (selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)
8430.39.01	Boring shields
8430.39.99	Other (not selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)
8430.41.01	Boring or sinking machinery, other than those provided for in item 8430.41.02
8430.41.99	Other (selfpropelled probing or boring machinery)
8430.49.99	Other (not selfpropelled probing or boring machinery)
8430.50.01	Excavators, frontal carriers with hydraulic mechanism, with capacity equal to or less than 335 h.p
8430.50.02	Scrapers
8430.50.99	Other (selfpropelled machinery and apparatus)
8430.61.01	Graders (pushers)
8430.61.02	Tamping or compacting rollers
8430.61.99	Other (machinery and apparatus, not selfpropelled)
8430.62.01	Scarification machine (ripping machine)
8430.69.01	Scrapers, not selfpropelled
8430.69.02	Trencher machine, other than those provided for in item 8430.69.03
8430.69.99	Other (trenchers, other than those provided for in items 8430.69.01, 8430.69.02 and 8430.69.03)
8452.10.01	Sewing machines of the household type
8452.21.04	Industrial machines, other than those provided for in items 8452.21.02, 8452.21.03 and 8452.21.05
8452.21.99	Other (automatic sewing machines)
8452.29.05	Machines or heads for industrial use, with straight seams, straight needle and a rotating and oscillating thread linking device, double backstitching, flat bed and transportation only
8452.29.06	Industrial machines, other than those provided for in items 8452.29.01, 8452.29.03 and 8452.29.05
8452.29.99	Other (non-automatic sewing machines)
8452.90.99	Other (parts of sewing machines)
8471.10.01	Analogue or hybrid automatic data processing machines
8471.20.01	Digital or numerical automatic data processing machines, containing in the same housing at least a central processing unit and an input and output unit
8471.91.01	Numerical or digital processing units, even if presented with the rest of the system, including one or two of the following types of units contained in the same housing: storage units, input units, output unit
8471.92.99	Other (input or output units whether or not entered with the rest of a system and whether or not containing storage units in the same housing)
8471.93.01	Storage units, including the rest of the system
8471.99.01	Other (automatic data processing machines and units thereof)
8474.20.01	Crushing and grinding with two or more cylinders
8474.20.02	Crushing jawbone and grinding millstone
8474.20.03	Blade crushing machines
8474.20.04	Crushing machines of balls or bars
8474.20.05	Drawer cone crushing, with diameter no more than 1200 millimeters
8474.20.06	Grinding hammer percussion
8474.20.99	Other (machines and apparatus to break, crush or grind or pulverize dirt, stones and other solid mineral materials)
8474.39.99	Other (mixing machines)
8474.80.99	Other (machines and apparatus to classify, sieve, separate, break, crush, grind, mix, or knead dirt, stones and other mineral materials)
8475.10.01	Machines for assembling lamps
8477.10.01	Injectionmolding machines for thermoplastic materials, up to 5 kg capacity for one molding model
8701.30.01	Caterpillar tractors with an engine power at the flywheel equal to or above 105 h.p., but less than 380 h.p. measured at 1,900 rpm, including pushing blade
8701.90.02	Railroad tractors, on tires with mechanical mechanism for pavement
8711.10.01	Motorcycles fitted with an auxiliary motor with reciprocating piston engine not exceeding 50 cm3
8711.20.01	Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 50 cm3 but not over 250 cm3
8711.30.01	Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 250 cm3 but not over 500 cm3
8711.40.01	Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 500 cm3 but less than 550 cm3
8711.90.99	Other (motorcycles, cycles fitted with an auxiliary motor and sidecars without a reciprocating piston engine, and that are not sidecars for motorcycles and velocipedes of any kind presented separately)
8712.00.02	Bicycles, other than of the type for racing
8712.00.99	Other (cycles, not motorized, except bicycles, and tricycles for the transport of merchandise)
8716.10.01	Trailers and semitrailers for housing and camping, of the caravan type
8716.31.02	Steeltank type tankers, including cryogenic or hoppers
8716.31.99	Other (tankers except of the steeltank type, and of the thermal type for the transportation of milk)
8716.39.01	Trailers or semitrailers of the platform type, with or without stakes, including those accepted for the transport of boxes or metal baskets for cans and bottles or container carriers, or low beds, except those with hydraulic or pneumatic suspension and collapsible gooseneck
8716.39.02	Trailers or semitrailers for the transport of vehicles
8716.39.04	Trailers of the modularplatform type with directional axis, including transporter bridge section, hydraulic couplings or gooseneck or motor for hydraulic conditioning of the equipment
8716.39.05	Semitrailers of the lowbed type, with pneumatic or hydraulic suspension and collapsible gooseneck
8716.39.06	Trailers and semitrailers of the closedbox type, including refrigerated
8716.39.07	Trailers and semitrailers of the steeltank type, including cryogenic and hoppers
8716.39.99	Other (trailers and semitrailers for the transportation of goods, other than those provided for in items 8716.39.01, 8716.39.02, 8716.39.04, 8716.39.05, 8716.39.06 and 8716.39.07, and that are not vehicles for the transport of goods, with solid rubber wheels, nor doubledecker trailers or semitrailers of the type recognized as used exclusively for hauling cattle
8716.40.01	Other trailers and semitrailers not used for transporting goods
8716.80.99	Other (non-automotive vehicles except trailers or semitrailers, wheel barrows and handcarts, or wheel barrows of hydraulic operation)

b) Notwithstanding subparagraph (a), Mexico shall not prohibit or restrict the importation, on a temporary basis, of used goods provided for in the items set out in subparagraph (c) for the provision of a crossborder service subject to Chapter Twelve (CrossBorder Trade in Services) or the performance of a contract subject to Chapter Ten (Government Procurement), provided that the imported goods

(i) are necessary to the provision of the cross border service or the performance of the contract awarded to a supplier of another Party,

(ii) are used solely by or under the supervision of the service provider or the supplier performing the contract,

(iii) are not sold, leased or loaned while in the territory of Mexico,

(iv) are imported in no greater quantity than is necessary for the provision of the service or the performance of the contract,

(v) are reexported promptly on completion of the service or the contract, and

(vi) comply with other applicable requirements on the importation of such goods to the extent they are not inconsistent with this Agreement.

c) Subparagraph (b) applies to used goods provided for in the following items:

Item	Description
8413.11.01	Distributors fitted with a measuring device even if it includes a totalizing mechanism
8413.40.01	Concrete pumps for liquids, not fitted with a measuring device from 36 up to 60 m3/hr capacity
8426.12.01	Mobile portals on tires and straddle carriers
8426.19.01	Other (overhead travelling cranes, bridge cranes and straddle carriers)
8426.30.01	Portal cranes
8426.41.01	Cranes with hydraulically actuated rigid jib, selfpropelled with maximum capacity above 9.9 tons and not exceeding 30 tons
8426.41.02	Cranes with structural iron jib (lattice) with mechanical working, selfpropelled, with unit weight up to 55 tons
8426.41.99	Other (machinery and apparatus, self propelled, on tires)
8426.49.01	Cranes with structural iron jib (lattice) with mechanical working, with unit weight up to 55 tons
8426.49.02	Cranes with hydraulically actuated rigid jib, selfpropelled, with load capacity above 9.9 tons and not exceeding 30 tons
8426.91.01	Cranes, other than those provided for in items 8426.91.02, 8426.91.03 and 8426.91.04
8426.99.01	Cranes
8426.99.02	Swivel cranes
8426.99.99	Other (cranes and air cables ("blondines"); overhead travelling cranes, handling or unloading frames, bridge cranes, straddle carriers and straddle cranes)
8427.10.01	With load capacity up to 3,500 kilograms, measured at 620 millimeters from the frontal surface of the forks, without battery or loader
8428.40.99	Other (escalators and moving walkways)
8428.90.99	Other (machinery and apparatus for lifting, loading, unloading or handling)
8429.11.01	Caterpillar type
8429.19.01	Other (bulldozers and angledozers)
8429.30.01	Scrapers
8429.40.01	Tamping machines
8429.51.02	Frontend loader with hydraulic working, wheeltype, with capacity equal or less than 335 HP
8429.51.03	Mechanical shovels, other than those provided for in item 8429.51.01
8429.51.99	Other (mechanical shovels, excavators, loaders and frontend shovel loaders)
8429.52.02	Draglines or excavators, other than those provided for in item 8429.52.01
8429.52.99	Other (machinery with a 360 revolving superstructure)
8429.59.01	Trenchers
8429.59.02	Draglines, with dragging load capacity up to 4,000 kilograms
8429.59.03	Draglines or excavators, other than those provided for in item 8429.59.04
8429.59.99	Other (selfpropelled bulldozers, angledozers, graders, scrapers, mechanical shovels, excavators, loaders, shovel loaders, tamping machines and road rollers)
8430.31.01	Rotation and/or percussion perforators
8430.31.99	Other (selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)
8430.39.01	Boring shields
8430.39.99	Other (not selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)
8430.41.01	Boring or sinking machinery, other than those provided for in item 8430.41.02
8430.41.99	Other (selfpropelled probing or boring machinery)
8430.49.99	Other (not selfpropelled probing or boring machinery)
8430.50.01	Excavators, frontal loaders with hydraulic mechanism, with capacity equal to or less than 335 h.p.
8430.50.02	Scrapers
8430.50.99	Other (selfpropelled machinery and apparatus)
8430.61.01	Graders (pushers)
8430.61.02	Tamping or compacting rollers
8430.62.01	Scarification machine (ripping machine)
8430.69.01	Scrapers, not selfpropelled
8430.69.02	Trencher machine, other than those provided for in item 8430.69.03
8430.69.99	Other (trenchers, other than those provided for in items 8430.69.01, 8430.69.02 and 8430.69.03)
8452.10.01	Sewing machines of the household type
8452.21.04	Industrial machines, other than those provided for in items 8452.21.02, 8452.21.03 and 8452.21.05
8452.21.99	Other (automatic sewing machines)
8452.29.06	Industrial machines, other than those provided for in items 8452.29.01, 8452.29.03 and 8452.29.05
8452.29.99	Other (non-automatic sewing machines)
8452.90.99	Other (parts of sewing machines)
8471.10.01	Analogue or hybrid automatic data processing machines
8474.20.01	Crushing and grinding with two or more cylinders
8474.20.03	Blade crushing machines
8474.20.04	Crushing machines of balls or bars
8474.20.99	Other (machines and apparatus to break, crush or grind or pulverize dirt, stones and other solid mineral materials)
8474.39.99	Other (mixing machines)
8474.80.99	Other (machines and apparatus to classify, sieve, separate, break, crush, grind, mix, or knead dirt, stones and other mineral materials)
8477.10.01	Injectionmolding machines for thermoplastic materials, up to 5 kg capacity for one molding model
8701.30.01	Caterpillar tractors with an engine power at the flywheel equal to or above 105 h.p., but less than 380 h.p. measured at 1,900 rpm, including pushing blade

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

2. Articles 301 and 309 shall not apply to:

a) taxes on imported perfume containing distilled spirits under existing provisions of section 5001(a)(3) and 5007(b)(2) of the Internal Revenue Code of 1986, 26 U.S.C. 5001(a)(3), 5007(b)(2), and

b) measures under existing provisions of the Merchant Marine Act of 1920, 46 App. U.S.C. 883; the Passenger Vessel Act, 46 App. U.S.C. 289, 292, and 316; and 46 U.S.C. 12108, to the extent that such measures were mandatory legislation at the time of the United States' accession to the GATT and have not been amended so as to decrease their conformity with the GATT.

3. Articles 301 and 309 shall not apply to:

a) the continuation or prompt renewal of a non-conforming provision of any statute referred to in paragraph 2; and

b) the amendment to a non-conforming provision of any statute referred to in paragraph 2 to the extent that the amendment does not decrease the conformity of the provision with Articles 301 and 309.

Annex 302.2

Tariff Elimination

1. Except as otherwise provided in a Party's Schedule attached to this Annex, the following staging categories apply to the elimination of customs duties by each Party pursuant to Article 302(2):

a) duties on goods provided for in the items in staging category A in a Party's Schedule shall be eliminated entirely and such goods shall be duty-free, effective January 1, 1994;

b) duties on goods provided for in the items in staging category B in a Party's Schedule shall be removed in five equal annual stages beginning on January 1, 1994, and such goods shall be duty-free, effective January 1, 1998;

c) duties on goods provided for in the items in staging category C in a Party's Schedule shall be removed in 10 equal annual stages beginning on January 1, 1994, and such goods shall be duty-free, effective January 1, 2003;

d) duties on goods provided for in the items in staging category C+ in a Party's Schedule shall be removed in 15 equal annual stages beginning on January 1, 1994, and such goods shall be duty-free, effective January 1, 2008; and

e) goods provided for in the items in staging category D in a Party's Schedule shall continue to receive duty-free treatment.

2. The base rate of customs duty and staging category for determining the interim rate of customs duty at each stage of the U.S. Generalized System of Preferences and the General Preferential Tariff of Canada.

3. For the purpose of the elimination of customs duties in accordance with Article 302, interim staged rates shall be rounded down, except as set out in each Party's Schedule attached to this Annex, at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units, at least to the nearest .001 of the official monetary unit of the Party.

4. Canada shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement which Annex is hereby incorporated into and made a part of this Agreement, to an originating good provided that:

a) notwithstanding any provision in Chapter Four, in determining whether such good is an originating good, operations performed in or materials obtained from Mexico are considered as if they were performed in or obtained from a non-Party; and

b) any processing that occurs in Mexico after the good would qualify as an originating good in accordance with subparagraph (a) does not increase the transaction value of the good by greater than seven percent.

5. Canada shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Column I of its Schedule to this Annex to an originating good provided that:

a) notwithstanding any provision in Chapter Four, in determining whether such good is an originating good, operations performed in or materials obtained from the United States are considered as if they were performed in or obtained from a non-Party; and

b) any processing that occurs in the United States after subparagraph (a) does not increase the transaction value of the good by greater than seven percent.

6. Canada shall apply to an originating good to which neither paragraph 4 nor 5 applies a rate of customs duty no higher than the rate indicated for its corresponding item in Column II of its Schedule to this Annex. The rate of customs duty in Column II for such good shall be:

a) in each year of the staging category indicated in Column I, the higher of

(i) the rate of customs duty under the staging category set out for the item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement , and

(ii) the General Preferential Tariff rate of customs duty for the item applied on July 1, 1991, reduced in accordance with the applicable staging category set out for the item in Column I of its Schedule to this Annex; or

b) where specified in Column II of its Schedule to this Annex, the most-favored-nation rate of customs duty for the item applied on July 1, 1991, reduced in accordance with the applicable staging category set out for the item in Column I of its Schedule to this Annex, or reduced in accordance with the applicable staging category otherwise indicated.

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

8. Paragraphs 4, 5 and 6 shall not apply to agricultural goods as defined in Article 708. For these goods, Canada shall apply the rate applicable under the staging category set out for an item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement to an originating good when the good qualifies to be marked as a good of the United States pursuant to Annex 311, without regard to whether the good is marked. When an originating good qualifies to be marked as a good of Mexico, pursuant to Annex 311, whether or not the good is marked, Canada shall apply the rate applicable under the staging category set out for an item in Column I of its Schedule to this Annex.

9. As between the United States and Canada, Articles 401(7) and 401(8) of the Canada-United States Free Trade Agreement is hereby incorporated and made a part of this Annex. The term "goods originating in the territory of the United States of America" in Article 401(7) of that agreement shall be determined in accordance with paragraph 4 of this Annex. The term "goods originating shall be determined in accordance with paragraph 12 of this Annex.

10. Mexico shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Column I of its Schedule to this Annex to an originating good when the good qualifies to be marked as a good of the United States, pursuant to Annex 311, without regard to whether the good is marked.

11. Mexico shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Column II of its Schedule to this Annex to an originating good when the good qualifies to be marked as a good of Canada, pursuant to Annex 311, without regard to whether the good is marked.

12. The United States shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement to an originating good when the good qualifies to be marked as a good of Canada pursuant to Annex 311, without regard to whether the good is marked.

13. The United States shall apply a rate of customs duty no higher than the rate applicable under the staging category set out for an item in its Schedule to this Annex to an originating good when the good qualifies to be marked as a good of Mexico pursuant to Annex 311, whether or not the good is marked.

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

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

Annex 303.7

Effective Dates for the Application of Article 303

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

a) subsequently exported to the territory of the United States on or after January 1, 1996, or subsequently exported to the territory of Mexico on or after January 1, 2001;

b) used as a material in the production of another good that is subsequently exported to the territory of the United States on or after January 1, 1996, or used as a material in the production of another good that is subsequently exported to the territory of Mexico on or after January 1, 2001; or

c) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of the United States on or after January 1, 1996, or substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of Mexico on or after January 1, 2001.

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

a) subsequently exported to the territory of another Party on or after January 1, 2001;

b) used as a material in the production of another good that is subsequently exported to the territory of another Party on or after January 1, 2001; or

c) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of another Party on or after January 1, 2001.

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

a) subsequently exported to the territory of Canada on or after January 1, 1996, or subsequently exported to the territory of Mexico on or after January 1, 2001;

b) used as a material in the production of another good that is subsequently exported to the territory of Canada on or after January 1, 1996, or used as a material in the production of another good that is subsequently exported to the territory of Mexico on or after January 1, 2001; or

c) substituted by an identical or similar good used as a material in the production of another good subsequently exported to the territory of Canada on or after January 1, 1996, or substituted by an identical or similar good used as a material in the production of another good subsequently exported to the territory of Mexico on or after January 1, 2001.

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

a) subsequently exported from the territory of Mexico to the territory of the United States, or is used as a material in the production of another good that is subsequently exported from the territory of Mexico to the territory of the United States, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of the United States, in an amount, for all such persons combined, no greater than

(i) 1,200,000 units in 1994,

(ii) 1,000,000 units in 1995,

(iii) 800,000 units in 1996,

(iv) 600,000 units in 1997,

(v) 400,000 units in 1998,

(vi) 200,000 units in 1999, and

(vii) zero units in 2000 and thereafter, provided that the number of units of the good on which such customs duties may be refunded, waived or reduced in any year shall be reduced, with respect to that year, by the number of units of such good that qualifies as an originating good during the year immediately preceding that year, considering operations performed in, or materials obtained from, the territories of Canada and the United States as if they were performed in, or obtained from, a non-Party; or

b) subsequently exported from the territory of Mexico to of another good that is subsequently exported from the territory of Mexico to the territory of Canada, or is substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of Canada, for all such persons combined, in an amount no greater than

(i) 75,000 units in 1994,

(ii) 50,000 units in 1995, and

(iii) zero units in 1996 and thereafter.

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

a) increase the ratio of customs duties waived to customs duties owed relative to the performance required under any such waiver; or

b) add any type of imported good to those qualifying on July 1, 1991, in respect of any waiver of customs duties in effect on that date.

For purposes of Article 304(2): ):

a) as between Canada and Mexico, Canada may condition on the fulfillment of a performance requirement the waiver of customs duties under any measure in effect on or before January 1, 1989, on any goods entered or withdrawn from warehouse for consumption before January 1, 1998;

b) as between Canada and the United States, Article 405 of the Canada-United States Free Trade Agreement is hereby incorporated and made a part of this Annex solely with respect to measures adopted by Canada or the United States prior to the date of entry into force of this Agreement;

c) Mexico may condition on the fulfillment of a performance requirement the waiver of customs duties under any measure in effect on July 1, 1991, on any goods entered or withdrawn from warehouse for consumption before January 1, 2001; and

d) Canada may grant waivers of customs duties as set out in Annex 300-A (Trade and Investment in the Automotive Sector).

Annex 307.1

Goods Re-Entered after Repair or Alteration