On June 23, 2010, CBP proposed ruling HQ H024323, intended to revoke HQ 735542 (Mar. 21, 1994) with respect to the country-oforigin marking of a rubber hose assembly imported into the United States from Canada. Under the North American Free Trade Agreement (NAFTA) country-of-origin marking rules, the country of origin of a good not wholly obtained or produced in Canada is Canada only if each foreign component undergoes the requisite shift in tariff classification.

In proposed HQ H024323, CBP determined that the NAFTA Preference Override applied, which provides that the country of origin is the last country in which a good was advanced in value or improved in condition where the country of origin is determined to be the United States after a good has been exported from, and returned to the United States following advancement in value or improvement in condition in another NAFTA country. Here, the US-originating rubber hose was exported from, and returned to, the United States after having been advanced in value (i.e., fitted with steel connectors and adapters for use with a vacuum cleaner) in Canada. Accordingly, CBP determined that the country of origin for duty purposes was Canada.