---
kind: "range"
citation: "19 C.F.R. §§ 10.530–10.543"
title: "19"
from: "10.530"
to: "10.543"
count: 14
url: "https://uscodex.org/cfr/19/10.530..10.543"
---

# §10.530. Definitions.


For purposes of [§§ 10.530 through 10.542](/cfr/19/10.530..10.542.md):

- (a) **Adjusted value.** “Adjusted value” means the value determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, adjusted, if necessary, to exclude:
  - (1) Any costs, charges, or expenses incurred for transportation, insurance and related services incident to the international shipment of the merchandise from the country of exportation to the place of importation; and
  - (2) The value of packing materials and containers for shipment as defined in [paragraph (j)](#j) of this section;
- (b) **Exporter.** “Exporter” means a person who exports goods from the territory of a Party;
- (c) **Fungible goods or materials.** “Fungible goods or materials” means goods or materials, as the case may be, that are interchangeable for commercial purposes and the properties of which are essentially identical;
- (d) **Generally Accepted Accounting Principles.** “Generally Accepted Accounting principles” means the recognized consensus or substantial authoritative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements. These standards may encompass broad guidelines of general application as well as detailed standards, practices, and procedures;
- (e) **Good.** “Good” means any merchandise, product, article, or material;
- (f) **Goods wholly obtained or produced entirely in the territory of one or both of the Parties.** “Goods wholly obtained or produced entirely in the territory of one or both of the Parties” means:
  - (1) Mineral goods extracted in the territory of one or both of the Parties;
  - (2) Vegetable goods, as such goods are defined in the Harmonized System, harvested in the territory of one or both of the Parties;
  - (3) Live animals born and raised in the territory of one or both of the Parties;
  - (4) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of one or both of the Parties;
  - (5) Goods (fish, shellfish and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag;
  - (6) Goods produced exclusively from products referred to in [subparagraph (f)(5)](#f-5) of this section on board factory ships registered or recorded with a Party and flying its flag;
  - (7) Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed;
  - (8) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party;
  - (9) **Waste and scrap derived from—**
    - (i) Production in the territory of one or both of the Parties; or
    - (ii) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials;
  - (10) Recovered goods derived in the territory of one or both of the Parties from used goods; or
  - (11) Goods produced in one or both of the Parties exclusively from goods referred to in [paragraphs (f)(1) through (f)(9)](#f-1..f-9) of this section or from the derivatives of such goods;
- (g) **Material.** “Material” means a good that is used in the production of another good;
- (h) **Non-originating good.** “Non-originating good” means a good that does not qualify as originating under General Note 25, HTSUS;
- (i) **Non-originating material.** “Non-originating material” means a material that does not qualify as originating under General Note 25, HTSUS;
- (j) **Packing materials and containers for shipment.** “Packing materials and containers for shipment” means the goods used to protect a good during its transportation to the United States, and does not include the packaging materials and containers in which a good is packaged for retail sale;
- (k) **Producer.** “Producer” means a person who grows, raises, mines, harvests, fishes, traps, hunts, manufactures, processes, assembles or disassembles a good;
- (l) **Production.** “Production” means growing, mining, harvesting, fishing, raising, trapping, hunting, manufacturing, processing, assembling, or disassembling a good;
- (m) **Recovered goods.** “Recovered goods” means materials in the form of individual parts that are the result of:
  - (1) The complete disassembly of used goods into individual parts; and
  - (2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition by one or more of the following processes: Welding, flame spraying, surface machining, knurling, plating, sleeving, and rewinding, in order for such parts to be assembled with other parts, including other recovered parts, in the production of a remanufactured good as defined in [paragraph (o)](#o) of this section;
- (n) **Relationship.** “Relationship” means whether the buyer and seller are related parties in accordance with Article 15.4 of the Customs Valuation Agreement;
- (o) **Remanufactured good.** “Remanufactured good” means an industrial good assembled in the territory of Singapore or the United States that is enumerated in Annex 3C, SFTA, and:
  - (1) Is entirely or partially comprised of recovered goods;
  - (2) Has the same life expectancy and meets the same performance standards as a new good; and
  - (3) Enjoys the same factory warranty as such a new good;
- (p) **Self-produced material.** “Self-produced material” means a good, such as a part or ingredient, produced by the producer and used by the producer in the production of another good; and
- (q) **Value.** “Value” means the value of a good or material for purposes of calculating customs duties or for purposes of applying this subpart.

# §10.531. Originating goods.


Except as provided in [§ 10.543](/cfr/19/10.543.md) of this subpart, a good imported into the customs territory of the United States will be considered an originating good under the SFTA only if:

- (a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties;
- (b) **The good is transformed in one or both of the Parties so that—**
  - (1) Each non-originating material undergoes an applicable change in tariff classification specified in General Note 25(o), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; and
  - (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 25(o), HTSUS; or
- (c) The good, in its condition as imported into the United States, is enumerated as an Integrated Sourcing Initiative good in General Note 25(m), HTSUS, and is imported from the territory of Singapore.

# §10.532. Integrated Sourcing Initiative.

- (a) For purposes of General Note 25(b)(ii), HTSUS, a good is eligible for treatment as an originating good under the Integrated Sourcing Initiative if:
  - (1) The good, in its condition as imported, is both classified in a tariff provision enumerated in the first column of General Note 25(m), HTSUS, and described opposite that tariff provision in the list of information technology articles set forth in the second column of General Note 25(m), HTSUS;
  - (2) The good, regardless of its origin, is imported into the territory of the United States from the territory of Singapore. If a product of a non-Party, the good must have been imported into Singapore prior to its importation into the territory of the United States; and
  - (3) The good satisfies the conditions and requirements of [§ 10.542](/cfr/19/10.542.md) relating to third country transportation.
- (b) A good enumerated in General Note 25(m), HTSUS, that is used in the production of another good in Singapore will not be considered an originating material for purposes of determining the eligibility for preferential tariff treatment of such other good unless:
  - (1) The good enumerated in General Note 25(m), HTSUS, satisfies an applicable rule of origin set out in General Note 25(o), HTSUS; or
  - (2) The good enumerated in General Note 25(m), HTSUS, is imported into the territory of Singapore from the territory of the United States prior to being used in the production of a good in Singapore.

# §10.533. De minimis.

- (a) Except as provided in paragraphs [(b)](#b) and [(c)](#c) of this section, a good that does not undergo a change in tariff classification pursuant to General Note 25(o), HTSUS, will nonetheless be considered to be an originating good if:
  - (1) The value of all non-originating materials used in the production of the good that do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good;
  - (2) The value of the non-originating materials described in [paragraph (a)(1)](#a-1) of this section is included in calculating the value of non-originating materials for any applicable regional value content requirement for the good under General Note 25(o), HTSUS; and
  - (3) **The good meets all other applicable requirements of General Note 25, HTSUS.**
- (b) **Paragraph (a) does not apply to—**
  - (1) A non-originating material provided for in Chapter 4, HTSUS, or in subheading 1901.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS;
  - (2) A non-originating material provided for in Chapter 4, HTSUS, or in subheading 1901.90, HTSUS, that is used in the production of a good provided for in one of the following HTSUS provisions: Subheading 1901.10, 1901.20 or 1901.90; heading 2105; or subheading 2106.90, 2202.90 or 2309.90;
  - (3) A non-originating material provided for in heading 0805, HTSUS, or subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for in subheadings 2009.11 through 2009.39, HTSUS, or in subheading 2106.90 or 2202.90, HTSUS;
  - (4) A non-originating material provided for in Chapter 15, HTSUS, that is used in the production of a good provided for in headings 1501 through 1508, 1512, 1514 or 1515, HTSUS;
  - (5) A non-originating material provided for in heading 1701, HTSUS, that is used in the production of a good provided for in headings 1701 through 1703, HTSUS;
  - (6) A non-originating material provided for in Chapter 17, HTSUS, or heading 1805, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS;
  - (7) A non-originating material provided for in headings 2203 through 2208, HTSUS, that is used in the production of a good provided for in heading 2207 or 2208, HTSUS; and
  - (8) A non-originating material used in the production of a good provided for in [Chapters 1 through 21](/cfr/19/ch1..21.md), HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being determined.
- (c) A textile or apparel good provided for in [Chapters 50 through 63](/cfr/19/ch50..63.md), HTSUS, that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 25(o), HTSUS, will nevertheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than 7 percent of the total weight of that component. Notwithstanding the preceding sentence, a textile or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification of the good will be considered an originating good only if such yarns are wholly formed in the territory of a Party.

# §10.534. Accumulation.

- (a) Originating materials of Singapore or the United States that are used in the production of a good in the territory of the other party will be considered to originate in the territory of the other party.
- (b) A good that is produced in the territory of one or both of the Parties by one or more producers, will be considered an originating good if the good satisfies:
  - (1) The applicable requirements of [§ 10.531](/cfr/19/10.531.md) of this subpart and General Note 25, HTSUS; or
  - (2) The provisions of [§ 10.532](/cfr/19/10.532.md) of this subpart.

# §10.535. Regional value content.

- (a) **General.** Where General Note 25(o), HTSUS, sets forth a rule that specifies a regional value content test for a good, the regional value content of such good must be calculated, at the choice of the person claiming the preferential tariff treatment for such good, on the basis of the build-down method or the build-up method described in paragraphs [(b)](#b) and [(c)](#c) of this section, unless otherwise specified in General Note 25(o), HTSUS.
- (b) **Build-down method.** Under the build-down method, the regional value content must be calculated on the basis of the formula RVC = ((AV −VNM)/AV) × 100, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value; and VNM is the value of non-originating materials that are acquired and used by the producer in the production of the good.
- (c) **Build-up method.** Under the build-up method, the regional value content must be calculated on the basis of the formula RVC = (VOM /AV) × 100, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value; and VOM is the value of originating materials that are acquired or self-produced and used by the producer in the production of the good.

# §10.536. Value of materials.

- (a) **Calculating the value of materials.** Except as provided in [§ 10.541](/cfr/19/10.541.md), for purposes of calculating the regional value content of a good under General Note 25(o), HTSUS, and for purposes of applying the de minimis (see [§ 10.533](/cfr/19/10.533.md) of this subpart) provisions of General Note 25(o), HTSUS, the value of a material is:
  - (1) In the case of a material imported by the producer of the good, the adjusted value of the material;
  - (2) In the case of a material acquired by the producer in the territory where the good is produced, except for a material to which [paragraph (a)(3)](#a-3) of this section applies, the adjusted value of the material with reasonable modifications to the provisions of the Customs Valuation Agreement so as to permit their application to the domestic acquisition by the producer. Such reasonable modifications include, but are not limited to, treating a domestic purchase by the producer as if it were a sale for export to the country of importation; or
  - (3) In the case of a self-produced material, or in a case in which the relationship between the producer of the good and the seller of the material influenced the price actually paid or payable for the material, including a material obtained without charge, the sum of:
    - (i) All expenses incurred in the production of the material, including general expenses; and
    - (ii) **A reasonable amount for profit.**
- (b) **Permissible additions to, and deductions from, the value of materials—**
  - (1) **Additions to originating materials.** For originating materials, the following expenses, if not included under [paragraph (a)](#a) of this section, may be added to the value of the originating material:
    - (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material to the location of the producer;
    - (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; and
    - (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-product; and
  - (2) **Deductions from non-originating materials.** For non-originating materials, if included under [paragraph (a)](#a) of this section, the following expenses may be deducted from the value of the non-originating material:
    - (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material to the location of the producer;
    - (ii) Duties, taxes, and customs brokerage fees on the material paid in one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable;
    - (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products;
    - (iv) The cost of processing incurred in the territory of Singapore or the United States in the production of the non-originating material; and
    - (v) The cost of originating materials used in the production of the non-originating material in the territory of Singapore or the United States.
- (c) **Accounting method.** Any cost or value referenced in General Note 25, HTSUS and this subpart, must be recorded and maintained in accordance with the Generally Accepted Accounting Principles applicable in the territory of the country in which the good is produced (whether Singapore or the United States).

# §10.537. Accessories, spare parts, or tools.


Accessories, spare parts, or tools that are delivered with a good and that form part of the good's standard accessories, spare parts, or tools will be treated as originating goods if the good is an originating good, and will be disregarded in determining whether all the non-originating materials used in the production of the good undergo an applicable change in tariff classification specified in General Note 25(o), HTSUS, provided that:

- (a) The accessories, spare parts, or tools are not invoiced separately from the good;
- (b) The quantities and value of the accessories, spare parts, or tools are customary for the good; and
- (c) If the good is subject to a regional value content requirement, the value of the accessories, spare parts, or tools will be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good under [§ 10.535](/cfr/19/10.535.md) of this subpart.

# §10.538. Fungible goods and materials.

- (a) A person claiming preferential treatment under the SFTA for a good may claim that a fungible good or material is originating either based on the physical segregation of each fungible good or material or by using an inventory management method. For purposes of this subpart, the term “inventory management method” means:
  - (1) Averaging;
  - (2) “Last-in, first-out;”
  - (3) “First-in, first-out;” or
  - (4) Any other method that is recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by that country.
- (b) A person selecting an inventory management method under [paragraph (a)](#a) of this section for particular fungible goods or materials must continue to use that method for those fungible goods or materials throughout the fiscal year of that person.

# §10.539. Retail packaging materials and containers.


Packaging materials and containers in which a good is packaged for retail sale, if classified with the good for which preferential treatment under the SFTA is claimed, will be disregarded in determining whether all non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in General Note 25(o), HTSUS. If the good is subject to a regional value content requirement, the value of such packaging materials and containers will be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.


# §10.540. Packing materials and containers for shipment.

- (a) Packing materials and containers for shipment, as defined in [§ 10.530(j)](/cfr/19/10.530.md?p=j) of this subpart, are to be disregarded in determining whether the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in General Note 25(o), HTSUS. Accordingly, such materials and containers are not required to undergo the applicable change in tariff classification even if they are non-originating.
- (b) Packing materials and containers for shipment, as defined in [§ 10.530(j)](/cfr/19/10.530.md?p=j) of this subpart, are to be disregarded in determining the regional value content of a good imported into the United States. Accordingly, in applying either the build-down or build-up method for determining the regional value content of the good imported into the United States, the value of such packing materials and containers for shipment (whether originating or non-originating) is disregarded and not included in AV, adjusted value, VNM, value of non-originating materials, or VOM, value of originating materials.

# §10.541. Indirect materials.


An indirect material, as defined in [§ 10.502(j)](/cfr/19/10.502.md?p=j) of this subpart, will be considered to be an originating material without regard to where it is produced, and its value will be the cost registered in the accounting records of the producer of the good.


# §10.542. Third country transportation.

- (a) **General.** A good will not be considered an originating good by reason of having undergone production that would enable the good to qualify as an originating good if subsequent to that production the good undergoes further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other process necessary to preserve the good in good condition or to transport the good to the territory of a Party.
- (b) **Documentary evidence.** An importer making a claim that a good is originating may be required to demonstrate, to CBP's satisfaction, that no further production or subsequent operation, other than permitted under [paragraph (a)](#a) of this section, occurred outside the territories of the Parties. An importer may demonstrate compliance with this section by submitting documentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, commercial invoices, receiving and inventory records, and customs entry and exit documents.

# §10.543. Certain apparel goods made from fabric or yarn not available in commercial quantities.


Notwithstanding the provisions of [§ 10.531](/cfr/19/10.531.md) of this subpart, a textile apparel article of Chapter 61 or 62, HTSUS, will be considered an originating good under the SFTA if it is both cut (or knit to shape) and sewn or otherwise assembled in one or both of the Parties from fabric or yarn, regardless of origin, designated by the Committee for the Implementation of Textile Agreements (“CITA”) as not available in commercial quantities in a timely manner in the United States. Such designations by CITA, identifying apparel goods made from such fabric or yarn as eligible for entry under subheading 9819.11.24 or 9820.11.27, HTSUS, must have been made by notices published in the Federal Register no later than November 15, 2002. 1 For purposes of this section, any reference in these notices to fabric or yarn formed in the United States will be interpreted as also including fabric or yarn formed in Singapore.