&&These goods are various styles of men’s and women’s woven trousers sold under the brand names Brax, and Lagrand. These trousers are composed of different fabrics including: cotton, cotton and linen, cotton and synthetic fabric, of Chapter 52 of the Customs Tariff; corduroy of Chapter 58; linen of Chapter 53; synthetic fabrics of Chapter 55. All of these fabrics originate outside the Ukraine and Canada.&&&&The non-originating fabrics are imported into the Ukraine where they are produced into finished trousers at the Lesya facility in Novograd-Volynski. Production of the trousers includes cutting the fabrics, sewing (including the addition of buttons, zippers, trim), washing, dyeing (if required), pressing/steaming, and quality control inspection. The origin of the thread(s) used to sew the trousers and any buttons, zippers, and trim that may be used has not been disclosed and will therefore be considered non-originating.&&&&The men’s woven trousers are classified in heading 62.03, specifically subheading 6203.42 if made of cotton, or subheading 6203.49 if made of other textile materials. The women’s woven trousers are classified in heading 62.04, specifically subheading 6204.62 if made of cotton, subheading 6204.63 if made of synthetic fibres, or subheading 6203.69 if made of other textile materials.&&

&&At issue is whether the Brax brand and Lagrand brand men’s and women’s trousers qualify as originating goods under Article 3.2 to the CUFTA. As these products are not wholly obtained in either Canada or the Ukraine nor produced exclusively from originating materials, they will qualify as originating goods only if they have undergone sufficient production within the meaning of Article 3.5 to the Agreement and satisfy all other applicable requirements of CUFTA. Article 3.5 states in pertinent part that “for the purposes of Article 3.2, a product which is not wholly obtained is considered to have undergone sufficient production when the conditions set out in Annex 3-A are fulfilled.” Annex 3-A of the CUFTA contains the Product-Specific Rules of Origin (PSRO); the PSRO applicable to the trousers requires “A change from any other chapter, provided that the product is both cut and sewn or otherwise assembled in the territory of one or both of the Parties.” However, the Annex 3-A Chapter 62 Note directs that when “determining the origin of a product of this chapter, the rule applicable to that product shall apply only to the component that determines the tariff classification of the product and that component must satisfy the tariff change requirements set out in the rule for that product.”&&&&The components that determine the tariff classification of the trousers are the fabrics from which the trousers are composed. These fabrics, all of which are non-originating, meet the tariff shift required by the PSRO; the trousers are cut, sewn and assembled from these fabrics in the Ukraine. Therefore, the Brax brand and Lagrand brand men’s and women’s trousers meet the requirements of the PSRO, and are considered originating goods under Article 3.2 of the CUFTA.&&