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On July 1, 2021, the United States-Mexico-Canada Free Trade Agreement (USMCA) implemented this new sewing thread requirement for apparel goods that fall under chapters 61 and 62 of the Harmonized Tariff Schedule of the United States (HTSUS).
Sewing thread of headings 5204, 5401, 5508, or yarn of heading 5402 (used as sewing thread) and used in apparel products of Chapters 61 and 62 of the Harmonized Tariff Schedule of the United States, will only be considered originating if the thread is both formed and finished in the territory of one or more USMCA parties.
Sewing thread is considered formed and finished in one or more USMCA countries, if all production processes and finishing operations, starting with the extrusion of filaments, strips, film or sheets, and including slitting of a film or sheet into strips, or the spinning of all fibers into yarn, or both, and ending with the finished single or plied thread ready for use for sewing without further processing. (Non-originating fiber maybe used in the production of sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread.)
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