08/27/2025
CUSMA Compliance — Since my fabrics and threads are imported from Europe, they do not currently qualify as CUSMA-compliant. At present, there are no fabric or thread manufacturers based in the United States, Canada, or Mexico. My customs broker is reviewing the regulations to confirm whether compliance might be possible; however, based on the information I have, it appears that my floss and fabric will not qualify for tariff-free status.
Why German Fabric Hand-Dyed in Canada Does Not Qualify Under CUSMA
Under the Canada-United States-Mexico Agreement (CUSMA), a good qualifies for preferential duty treatment only if it meets the rules of origin set out in Annex 4-B of the agreement.
For cotton woven fabrics under HS 5211.20.21.20, the rule is commonly referred to as yarn-forward. This means:
• The fabric must be woven in Canada, the U.S., or Mexico, and
• The yarn used to weave the fabric must also be originating (produced in one or more CUSMA countries).
Hand-dyeing in Canada does not change the origin because:
• Dyeing and finishing are considered minor processing operations and do not satisfy the origin requirements.
• The origin of the fabric remains where it was formed by weaving, which in this case is Germany.
Result:
The hand-dyed fabric is considered non-originating under CUSMA and cannot claim preferential tariff treatment, even though value was added in Canada.
Update on U.S. Pricing and Shipping
We’re making these changes to ensure a smoother, stress-free shipping experience for you.
Our shipping partner has moved to a DDP (Delivery Duty Paid) model. This means all duties and fees will now be included in the shipping cost at checkout—so you won’t have any surprise charges on delivery.
To accommodate this, product prices will be updated to reflect the estimated tariff rate, and shipping costs will increase slightly to include customs clearance fees charged by our broker. These amounts are based on the average tariff rate for our products plus the per-shipment clearance fee.
If the actual costs are significantly lower than estimated, we’ll refund the difference. If they’re higher, we’ll cover the extra amount—so you’re never charged more than expected.
Thank you for your understanding and continued support as we make this transition to provide you with the best possible service.