---
kind: "range"
citation: "19 C.F.R. §§ 10.251–10.257"
title: "19"
from: "10.251"
to: "10.257"
count: 7
url: "https://uscodex.org/cfr/19/10.251..10.257"
---

# §10.251. Applicability.


Title XXXI of Public Law 107-210 (116 Stat. 933), entitled the Andean Trade Promotion and Drug Eradication Act (ATPDEA), amended sections 202, 203, 204, and 208 of the Andean Trade Preference Act (the ATPA, [19 U.S.C. 3201-3206](/usc/19/3201-3206.md)) to authorize the President to extend additional trade benefits to ATPA beneficiary countries that have been designated as ATPDEA beneficiary countries. Sections [204(b)(1)](/cfr/19/204.md?p=b-1) and [(b)(4)](/cfr/19/204.md?p=b-4) of the ATPA (19 U.S.C. [3203(b)(1)](/usc/19/3203.md?p=b-1) and [(b)(4)](/usc/19/3203.md?p=b-4)) provide for the preferential treatment of certain non-textile articles that were not entitled to duty-free treatment under the ATPA prior to enactment of the ATPDEA. The provisions of [§§ 10.251-10.257](/cfr/19/10.251-10.257.md) of this part set forth the legal requirements and procedures that apply for purposes of obtaining preferential treatment pursuant to ATPA sections [204(b)(1)](/cfr/19/204.md?p=b-1) and [(b)(4)](/cfr/19/204.md?p=b-4).


# §10.252. Definitions.


When used in [§§ 10.251 through 10.257](/cfr/19/10.251..10.257.md), the following terms have the meanings indicated:

ATPA. “ATPA” means the Andean Trade Preference Act, [19 U.S.C. 3201-3206](/usc/19/3201-3206.md).

ATPDEA beneficiary country. “ATPDEA beneficiary country” means a “beneficiary country” as defined in [§ 10.202(a)](/cfr/19/10.202.md?p=a) for purposes of the ATPA which the President also has designated as a beneficiary country for purposes of preferential treatment of products under 19 U.S.C. [3203(b)(1)](/usc/19/3203.md?p=b-1) and [(b)(4)](/usc/19/3203.md?p=b-4) and which has been the subject of a finding by the President or his designee, published in the Federal Register, that the beneficiary country has satisfied the requirements of [19 U.S.C. 3203(b)(5)(A)(ii)](/usc/19/3203.md?p=b-5-A-ii).

ATPDEA beneficiary country vessel. “ATPDEA beneficiary country vessel” means a vessel:

- (a) Which is registered or recorded in an ATPDEA beneficiary country;
- (b) Which sails under the flag of an ATPDEA beneficiary country;
- (c) Which is at least 75 percent owned by nationals of an ATPDEA beneficiary country or by a company having its principal place of business in an ATPDEA beneficiary country, of which the manager or managers, chairman of the board of directors or of the supervisory board, and the majority of the members of those boards are nationals of an ATPDEA beneficiary country and of which, in the case of a company, at least 50 percent of the capital is owned by an ATPDEA beneficiary country or by public bodies or nationals of an ATPDEA beneficiary country;
- (d) Of which the master and officers are nationals of an ATPDEA beneficiary country; and
- (e) **Of which at least 75 percent of the crew are nationals of an ATPDEA beneficiary country.** HTSUS. “HTSUS” means the Harmonized Tariff Schedule of the United States.

  Preferential treatment. “Preferential treatment” means entry, or withdrawal from warehouse for consumption, in the customs territory of the United States free of duty and free of any quantitative restrictions in the case of tuna described in [§ 10.253(a)(1)](/cfr/19/10.253.md?p=a-1) and free of duty in the case of any article described in [§ 10.253(a)(2)](/cfr/19/10.253.md?p=a-2).

  United States vessel. “United States vessel” means either: a vessel having a certificate of documentation with a fishery endorsement under chapter 121 of title 46 of the United States Code; or a vessel that is documented under the laws of the United States and for which a license has been issued pursuant to section 9 of the South Pacific Tuna Act of 1988.


# §10.253. Articles eligible for preferential treatment.

- (a) **General.** Preferential treatment applies to any of the following articles, provided that the article in question is imported directly into the customs territory of the United States from an ATPDEA beneficiary country within the meaning of [paragraph (b)](#b) of this section:
  - (1) Tuna that is harvested by United States vessels or ATPDEA beneficiary country vessels, that is prepared or preserved in any manner, in an ATPDEA beneficiary country, in foil or other flexible airtight containers weighing with their contents not more than 6.8 kilograms each; and
  - (2) Any of the following articles that the President has determined are not import-sensitive in the context of imports from ATPDEA beneficiary countries, provided that the article in question meets the country of origin and value content requirements set forth in paragraphs [(c)](#c) and [(d)](#d) of this section:
    - (i) Footwear not designated on December 4, 1991, as eligible articles for the purpose of the Generalized System of Preferences (GSP) under Title V, Trade Act of 1974, as amended ([19 U.S.C. 2461 through 2467](/usc/19/2461..2467.md));
    - (ii) Petroleum, or any product derived from petroleum, provided for in headings 2709 and 2710 of the HTSUS;
    - (iii) Watches and watch parts (including cases, bracelets, and straps), of whatever type including, but not limited to, mechanical, quartz digital or quartz analog, if those watches or watch parts contain any material which is the product of any country with respect to which HTSUS column 2 rates of duty apply; and
    - (iv) Handbags, luggage, flat goods, work gloves, and leather wearing apparel that were not designated on August 5, 1983, as eligible articles for purposes of the GSP.
- (b) **Imported directly defined.** For purposes of [paragraph (a)](#a) of this section, the words “imported directly” mean:
  - (1) Direct shipment from any ATPDEA beneficiary country to the United States without passing through the territory of any country that is not an ATPDEA beneficiary country;
  - (2) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, the articles in the shipment do not enter into the commerce of any country that is not an ATPDEA beneficiary country while en route to the United States and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or
  - (3) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon arrival in the United States are imported directly only if they:
    - (i) Remained under the control of the customs authority of the intermediate country;
    - (ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the Center director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the producer's sales agent; and
    - (iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition.
- (c) **Country of origin criteria—**
  - (1) **General.** Except as otherwise provided in [paragraph (c)(2)](#c-2) of this section, an article described in [paragraph (a)(2)](#a-2) of this section may be eligible for preferential treatment if the article is either:
    - (i) Wholly the growth, product, or manufacture of an ATPDEA beneficiary country; or
    - (ii) A new or different article of commerce which has been grown, produced, or manufactured in an ATPDEA beneficiary country.
  - (2) **Exceptions.** No article will be eligible for preferential treatment by virtue of having merely undergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article. The principles and examples set forth in [§ 10.195(a)(2)](/cfr/19/10.195.md?p=a-2) will apply equally for purposes of this paragraph.
- (d) **Value content requirement—**
  - (1) **General.** An article may be eligible for preferential treatment only if the sum of the cost or value of the materials produced in an ATPDEA beneficiary country or countries, plus the direct costs of processing operations performed in an ATPDEA beneficiary country or countries, is not less than 35 percent of the appraised value of the article at the time it is entered.
  - (2) **Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI beneficiary countries.** For the specific purpose of determining the percentage referred to in [paragraph (d)(1)](#d-1) of this section, the term “ATPDEA beneficiary country” includes the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and any CBI beneficiary country as defined in [§ 10.191(b)(1)](/cfr/19/10.191.md?p=b-1). Any cost or value of materials or direct costs of processing operations attributable to the Virgin Islands or any CBI beneficiary country must be included in the article prior to its final exportation to the United States from an ATPDEA beneficiary country as defined in [§ 10.252](/cfr/19/10.252.md).
  - (3) **Materials produced in the United States.** For purposes of determining the percentage referred to in [paragraph (d)(1)](#d-1) of this section, an amount not to exceed 15 percent of the appraised value of the article at the time it is entered may be attributed to the cost or value of materials produced in the customs territory of the United States (other than the Commonwealth of Puerto Rico). The principles set forth in [paragraph (d)(4)(i)](#d-4-i) of this section will apply in determining whether a material is “produced in the customs territory of the United States” for purposes of this paragraph.
  - (4) **Cost or value of materials—**
    - (i) **“Materials produced in an ATPDEA beneficiary country or countries” defined.** For purposes of [paragraph (d)(1)](#d-1) of this section, the words “materials produced in an ATPDEA beneficiary country or countries” refer to those materials incorporated in an article which are either:
      - (A) Wholly the growth, product, or manufacture of an ATPDEA beneficiary country or two or more ATPDEA beneficiary countries; or
      - (B) Substantially transformed in any ATPDEA beneficiary country or two or more ATPDEA beneficiary countries into a new or different article of commerce which is then used in any ATPDEA beneficiary country as defined in [§ 10.252](/cfr/19/10.252.md) in the production or manufacture of a new or different article which is imported directly into the United States. For purposes of this [paragraph (d)(4)(i)(B)](#d-4-i-B), no material will be considered to be substantially transformed into a new or different article of commerce by virtue of having merely undergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article. The examples set forth in [§ 10.196(a)](/cfr/19/10.196.md?p=a), and the principles and examples set forth in [§ 10.195(a)(2)](/cfr/19/10.195.md?p=a-2), will apply for purposes of the corresponding context under [paragraph (d)(4)(i)](#d-4-i) of this section.
    - (ii) **Failure to establish origin.** If the importer fails to maintain adequate records to establish the origin of a material, that material may not be considered to have been grown, produced, or manufactured in an ATPDEA beneficiary country or in the customs territory of the United States for purposes of determining the percentage referred to in [paragraph (d)(1)](#d-1) of this section.
    - (iii) **Determination of cost or value of materials.**
      - (A) The cost or value of materials produced in an ATPDEA beneficiary country or countries or in the customs territory of the United States includes:

        (1) The manufacturer's actual cost for the materials;

        (2) When not included in the manufacturer's actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer's plant;

        (3) The actual cost of waste or spoilage, less the value of recoverable scrap; and

        (4) Taxes and/or duties imposed on the materials by any ATPDEA beneficiary country or by the United States, provided they are not remitted upon exportation.

      - (B) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value will be determined by computing the sum of:

        (1) All expenses incurred in the growth, production, or manufacture of the material, including general expenses;

        (2) An amount for profit; and

        (3) Freight, insurance, packing, and all other costs incurred in transporting the material to the manufacturer's plant.

  - (5) **Direct costs of processing operations—**
    - (i) **Items included.** For purposes of [paragraph (d)(1)](#d-1) of this section, the words “direct costs of processing operations” mean those costs either directly incurred in, or which can be reasonably allocated to, the growth, production, manufacture, or assembly of the specific merchandise under consideration. Those costs include, but are not limited to the following, to the extent that they are includable in the appraised value of the imported merchandise:
      - (A) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel;
      - (B) Dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise;
      - (C) Research, development, design, engineering, and blueprint costs insofar as they are allocable to the specific merchandise; and
      - (D) **Costs of inspecting and testing the specific merchandise.**
    - (ii) **Items not included.** For purposes of [paragraph (d)(1)](#d-1) of this section, the words “direct costs of processing operations” do not include items which are not directly attributable to the merchandise under consideration or are not costs of manufacturing the product. These include, but are not limited to:
      - (A) Profit; and
      - (B) General expenses of doing business which either are not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses.
  - (6) **Articles wholly the growth, product, or manufacture of an ATPDEA beneficiary country.** Any article which is wholly the growth, product, or manufacture of an ATPDEA beneficiary country as defined in [§ 10.252](/cfr/19/10.252.md), and any article produced or manufactured in an ATPDEA beneficiary country as defined in [§ 10.252](/cfr/19/10.252.md) exclusively from materials which are wholly the growth, product, or manufacture of an ATPDEA beneficiary country or countries, will normally be presumed to meet the requirement set forth in [paragraph (d)(1)](#d-1) of this section.

# §10.254. Certificate of Origin.


A Certificate of Origin as specified in [§ 10.256](/cfr/19/10.256.md) must be employed to certify that an article described in [§ 10.253(a)](/cfr/19/10.253.md?p=a) being exported from an ATPDEA beneficiary country to the United States qualifies for the preferential treatment referred to in [§ 10.251](/cfr/19/10.251.md). The Certificate of Origin must be prepared in the ATPDEA beneficiary country by the producer or exporter or by the producer's or exporter's authorized agent. If the person preparing the Certificate of Origin is not the producer of the article, the person may complete and sign a Certificate on the basis of:

- (a) The person's reasonable reliance on the producer's written representation that the article qualifies for preferential treatment; or
- (b) A completed and signed Certificate of Origin for the article voluntarily provided to the person by the producer.

# §10.255. Filing of claim for preferential treatment.

- (a) **Declaration.** In connection with a claim for preferential treatment for an article described in [§ 10.253(a)](/cfr/19/10.253.md?p=a), the importer must make a written declaration that the article qualifies for that treatment. The written declaration should be made by including on the entry summary, or equivalent documentation, the symbol “J + ” as a prefix to the subheading of the HTSUS in which the article in question is classified. Except in any of the circumstances described in [§ 10.256(d)(1)](/cfr/19/10.256.md?p=d-1), the declaration required under this paragraph must be based on a complete and properly executed original Certificate of Origin that covers the article being imported and that is in the possession of the importer.
- (b) **Corrected declaration.** If, after making the declaration required under [paragraph (a)](#a) of this section, the importer has reason to believe that a Certificate of Origin on which a declaration was based contains information that is not correct, the importer must within 30 calendar days after the date of discovery of the error make a corrected declaration and pay any duties that may be due. A corrected declaration will be effected by submission of a letter or other written statement to the Customs port where the declaration was originally filed.

# §10.256. Maintenance of records and submission of Certificate by importer.

- (a) **Maintenance of records.** Each importer claiming preferential treatment for an article under [§ 10.255](/cfr/19/10.255.md) must maintain in the United States, in accordance with the provisions of [part 163](/cfr/19/part163.md) of this chapter, all records relating to the importation of the article. Those records must include the original Certificate of Origin referred to in [§ 10.255(a)](/cfr/19/10.255.md?p=a) and any other relevant documents or other records as specified in [§ 163.1(a)](/cfr/19/163.1.md?p=a) of this chapter.
- (b) **Submission of Certificate.** An importer who claims preferential treatment on an article under [§ 10.255(a)](/cfr/19/10.255.md?p=a) must provide, at the request of the Center director, a copy of the Certificate of Origin pertaining to the article. A Certificate of Origin submitted to Customs under this paragraph:
  - (1) Must be on CBP Form 449, including privately-printed copies of that Form, or, as an alternative to CBP Form 449, in an approved computerized format or other medium or format as is approved by the Office of International Trade, U.S. Customs and Border Protection, Washington, DC 20229. An alternative format must contain the same information and certification set forth on CBP Form 449;
  - (2) Must be signed by the producer or exporter or by the producer's or exporter's authorized agent having knowledge of the relevant facts;
  - (3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is completed in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and
  - (4) **May be applicable to—**
    - (i) A single importation of an article into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
    - (ii) Multiple importations of identical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph, “identical articles” means articles that are the same in all material respects, including physical characteristics, quality, and reputation.
- (c) **Correction and nonacceptance of Certificate.** If the Center director determines that a Certificate of Origin is illegible or defective or has not been completed in accordance with [paragraph (b)](#b) of this section, the importer will be given a period of not less than five working days to submit a corrected Certificate. A Certificate will not be accepted in connection with subsequent importations during a period referred to in [paragraph (b)(4)(ii)](#b-4-ii) of this section if the Center director determined that a previously imported identical article covered by the Certificate did not qualify for preferential treatment.
- (d) **Certificate not required—**
  - (1) **General.** Except as otherwise provided in [paragraph (d)(2)](#d-2) of this section, an importer is not required to have a Certificate of Origin in his possession for:
    - (i) An importation of an article for which the Center director has in writing waived the requirement for a Certificate of Origin because the Center director is otherwise satisfied that the article qualifies for preferential treatment;
    - (ii) A non-commercial importation of an article; or
    - (iii) A commercial importation of an article whose value does not exceed US$2,500, provided that, unless waived by the Center director, the producer, exporter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed statement:
  - (2) **Exception.** If the Center director determines that an importation described in [paragraph (d)(1)](#d-1) of this section forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding a Certificate of Origin requirement under [§§ 10.254 through 10.256](/cfr/19/10.254..10.256.md), the Center director will notify the importer in writing that for that importation the importer must have in his possession a valid Certificate of Origin to support the claim for preferential treatment. The importer will have 30 calendar days from the date of the written notice to obtain a valid Certificate of Origin, and a failure to timely obtain the Certificate of Origin will result in denial of the claim for preferential treatment. For purposes of this paragraph, a “series of importations” means two or more entries covering articles arriving on the same day from the same exporter and consigned to the same person.

# §10.257. Verification and justification of claim for preferential treatment.

- (a) **Verification by Customs.** A claim for preferential treatment made under [§ 10.255](/cfr/19/10.255.md), including any statements or other information contained on a Certificate of Origin submitted to Customs under [§ 10.256](/cfr/19/10.256.md), will be subject to whatever verification the Center director deems necessary. In the event that the Center director for any reason is prevented from verifying the claim, the Center director may deny the claim for preferential treatment. A verification of a claim for preferential treatment may involve, but need not be limited to, a review of:
  - (1) All records required to be made, kept, and made available to Customs by the importer or any other person under [part 163](/cfr/19/part163.md) of this chapter;
  - (2) Documentation and other information regarding the country of origin of an article and its constituent materials, including, but not limited to, production records, information relating to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and
  - (3) Evidence to document the use of U.S. or ATPDEA beneficiary country materials in the production of the article in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents.
- (b) **Importer requirements.** In order to make a claim for preferential treatment under [§ 10.255](/cfr/19/10.255.md), the importer:
  - (1) Must have records that explain how the importer came to the conclusion that the article qualifies for preferential treatment. Those records must include documents that support a claim that the article in question qualifies for preferential treatment because it meets the country of origin and value content requirements set forth in § [10.253(c)](/cfr/19/10.253.md?p=c) and [(d)](/cfr/19/10.253.md?p=d). A properly completed Certificate of Origin in the form prescribed in [§ 10.254(b)](/cfr/19/10.254.md?p=b) is a record that would serve this purpose;
  - (2) Must establish and implement internal controls which provide for the periodic review of the accuracy of the Certificate of Origin or other records referred to in [paragraph (b)(1)](#b-1) of this section;
  - (3) Must have shipping papers that show how the article moved from the ATPDEA beneficiary country to the United States. If the imported article was shipped through a country other than an ATPDEA beneficiary country and the invoices and other documents from the ATPDEA beneficiary country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in [§ 10.253(b)(3)(i) through (iii)](/cfr/19/10.253.md?p=b-3-i..b-3-iii) were met; and
  - (4) Must be prepared to explain, upon request from Customs, how the records and internal controls referred to in [paragraphs (b)(1) through (b)(3)](#b-1..b-3) of this section justify the importer's claim for preferential treatment.