October 2018 — Question 37

For textile goods classified in Chapters 50 through 63, the NAFTA de minimis provision allows for non-originating fibers or yarns that are used in the production of a component of the good that determines the tariff classification of the good and do not undergo the required tariff shift as a result of the production occurring entirely in the territory of one or more of the NAFTA countries, to be disregarded when determining whether the good is eligible for preference under NAFTA if:

• AThe value of the non-originating fibers or yarns is not more than 7% of the value of the good.
• BThe total weight of the non-originating fibers or yarns is not more than 7% of the total weight of that component.✓ CBP's answer
• CThe value of the non-originating fibers or yarns is more than 7% of the value of the good.
• DThe total weight of the component incorporating the non-originating fibers or yarns is more than 7% of the total weight of the good.
• EThe value of the non-originating fibers or yarns is more than 15% of the value of the good.