&&The goods are decorative cushions to be produced under one of three scenarios as outlined below:&&&&Scenario One - An inner insert from China, with a cotton cover and filled with feathers, will be inserted into a cotton shell with zipper from China, and closed by means of the zipper.&&&&Scenario Two - Polyester fabric from China will be cut and sewn and a zipper will be added to form a cushion cover. Inner inserts from China, with cotton covers and filled with feathers, will be inserted into the cushion covers and closed by means of the zipper.&&&&Scenario Three - Polyester fabric from China will be cut and sewn to form a cushion cover. Polyester fibres from China will be blown into the covers which will then be sewn closed.&&The production steps described above will occur in the United States.&&&&When imported into Canada under scenario one, the goods are classified under 9404.90.10.39. When imported into Canada under scenario two, the goods are classified under 9404.90.90.29. When imported into Canada under scenario three, the goods are classified under 9404.90.90.21.

&&At issue is whether the cushions produced as described under scenarios one, two and three described above qualify for preferential tariff treatment under the Canada-United States-Mexico Agreement (CUSMA) Rules of Origin Regulations and Chapter 4 (Rules of Origin) of the CUSMA.&&&&Based on the information provided, the cushions will be produced in the US from non-originating materials. Therefore the products are not wholly obtained or produced as per Article 4.2(a) of the CUSMA, and as defined in Article 4.3 of the CUSMA, nor are they produced entirely in the territory of one or more of the Parties exclusively from originating materials as per Article 4.2(c).&&&&Per Article 4.2(b) of the CUSMA, goods originate if they are produced entirely in the territory of one or more of the Parties using non-originating materials provided that the goods satisfy all applicable requirements of Annex 4-B (Product-Specific Rules of Origin). The product-specific rule of origin applicable to the products under review requires a change to subheading 9404.90 from any other chapter, except from heading 50.07, 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.&&&&Under scenario one, the inner, feather-filled insert from China will be classified in Chapter 94, and will, therefore, not make the change required by the rule of origin.&&&&Under scenario two, the inner, feather-filled insert from China will be classified in Chapter 94 and will not make the change required by the rule of origin. The polyester fabric from China will be classified in a heading specifically excluded by the rule of origin and will also, therefore, not make the change required by the rule of origin.&&&&Under scenario three, the polyester fabric from China will be classified in a heading specifically excluded by the rule of origin and will, therefore, not make the change required by the rule of origin.&&&&Per Article 4.2(d) of the CUSMA, goods are originating if, except for a good provided for in Chapter 61-63 of the Harmonized System, they are:&&(i) produced entirely in the territory of one or more of the Parties;&&(ii) one or more of the non-originating materials provided for as parts under the Harmonized System used in the production of the good cannot satisfy the requirements set out in Annex 4-B (Product-Specific Rules of Origin) because both the good and its materials are classified in the same subheading or same heading that is not further subdivided into subheadings or, the good was imported into the territory of a Party in an unassembled or a disassembled form but was classified as an assembled good pursuant to rule 2(a) of the General Rules of Interpretation of the Harmonized System; and&&(iii) the regional value content of the good, determined in accordance with Article 4.5 (Regional Value Content), is not less than 60 percent if the transaction value method is used, or not less than 50 percent if the net cost method is used.&&&&Although the goods are produced in the territory as required by 4.2(d)(i), the requirements of 4.2(d)(ii) are not met, and therefore the requirements of 4.2(d)(iii) were not considered.