&&These are rug hooking kits comprised of bundles of pre-cut 100% acrylic, multi-ply yarn in various colours, a woven canvas with a printed image, and instructions. The series 429 kits also include a latch hook tool. The two samples submitted with your request - item 429108, 'Love' and item 426155, 'Daisy' - each measure 12 inches by 12 inches when completed. The kits are classified under HS number 6308.00.00.00, which provides for sets "consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered table cloths or serviettes, or similar textile articles, put up in packings for retail sale."&&The rug hooking kits are assembled at Spinrite's manufacturing facility in Washington, North Carolina and will be exported to Canada for subsequent resale. Information provided in your request indicates that the canvas, instructions and packaging are originating materials that have been produced in the United States. The latch hook, classified under heading 73.19, originates in Taiwan. The acrylic yarn of heading 55.09 is spun in the United States by National Spinning of North Carolina from acrylic fibre of subheading 5506.30 that is imported from Turkey.&&This acrylic yarn is considered a non-originating material as the fibre fails to meet the tariff change required by the applicable specific rule of origin, which is: "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".&&

&&At issue is whether the Wonderart Latch Hook Kits qualify for preferential NAFTA tariff treatment under the NAFTA Rules of Origin Regulations. As these kits are not wholly obtained or produced entirely in one of the NAFTA territories, they will qualify as originating goods only if the non-originating materials used in their manufacture meet the requirements of the Specific Rules of Origin found in Schedule I of the NAFTA Rules of Origin Regulations. The specific rule of origin for the kits requires:&&&&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 or 53.10 through 53.11, Chapters 54 through 55, or headings 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA countries.&&&&The non-originating latch hook in the series 429 kits meets this tariff change; however, the acrylic yarn of heading 55.09 is unable to meet the required change in tariff classification and therefore the Wonderart Latch Hook Kits are not considered originating goods under Article 401(b) of the NAFTA.&&&&With respect to your inquiry regarding the marking of the rug hooking kits, Schedule I of the Determination of Country of Origin for the Purpose of Marking Goods (NAFTA Countries) Regulations identifies goods that require country of origin marking. Rug hooking kits are not listed in Schedule I as goods which require marking, thus the Wonderart Latch Hook Kits are not subject to the country of origin marking requirements upon importation into Canada. Please be advised that these goods may be subject to the marking and/or labelling requirements of other government departments/agencies.&&