Chapter 4 Article 4.2 Of The Agreement

The general principles of origin determination under the USMCA are similar to those under NAFTA, but the USMCA makes some important changes stemming from recent trade agreements such as the TPP. Several of these amendments would provide traders who wish to qualify for preferential tariff treatment with additional flexibility over existing NAFTA rules. Royalties are payments of any kind, including payments for technical assistance or similar agreements, made in return for the use or right to use copyright, literary, artistic or scientific works, patents, trademarks, designs, drawings, drawings, tarpaulins, formulas or secret processes, with the exception of payments made in the context of technical assistance or similar agreements relating to certain services A new rule in the USMCA specifically concerns goods imported in assemblies and classified as such, according to the application of Rule 3 of the General Rules of Interpretation of the Harmonized System. 7 `Used material` is defined as material in the form of one or more elements resulting from: (a) the cutting of a second-hand material into spare parts; (b) the cleaning, inspection, testing or any other transformation of such parts, to the extent necessary to improve their good working order. . . .