19 C.F.R. §§ 102.1–102.18

7 sections in range

§102.1. Definitions.

19 C.F.R. § 102.1

(a)

Advanced in value. “Advanced in value” means an increase in the value of a good as a result of production with respect to that good, other than by means of those “minor processing” operations described in paragraphs (n)(5), (n)(6), and (n)(7) of this section.

(b)

Commingled. “Commingled” means physically combined or mixed.

(c)

Direct physical identification. “Direct physical identification” means identification by visual or other organoleptic examination.

(d)

Domestic material. “Domestic material” means a material whose country of origin as determined under these rules is the same country as the country in which the good is produced.

(e)

Foreign material. “Foreign material” means a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.

(f)

Fungible goods or fungible materials. “Fungible goods or fungible materials” means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical.

(g)

A good wholly obtained or produced. A good “wholly obtained or produced” in a country means:

(1)

A mineral good extracted in that country;

(2)

A vegetable or plant good harvested in that country;

(3)

A live animal born and raised in that country;

(4)

A good obtained from hunting, trapping or fishing in that country;

(5)

A good (fish, shellfish and other marine life) taken from the sea by vessels registered or recorded with that country and flying its flag;

(6)

A good produced on board factory ships from the goods referred to in paragraph (g)(5) of this section, provided such factory ships are registered or recorded with that country and fly its flag;

(7)

A good taken by that country or a person of that country from the seabed or beneath the seabed outside territorial waters, provided that country has rights to exploit such seabed;

(8)

A good taken from outer space, provided they are obtained by that country or a person of that country;

(9)

Waste and scrap derived from—

(i)

Production in a country, or

(ii)

Used goods collected in that country provided such goods are fit only for the recovery of raw materials; and

(10)

A good produced in that country exclusively from goods referred to in paragraphs (g)(1) through (10) of this section or from their derivatives, at any stage of production.

(h)

Harmonized System. “Harmonized System” means the Harmonized Commodity Description and Coding System, including its general rules of Interpretation, Section Notes and Chapter Notes, as adopted and implemented by the United States.

(i)

Improved in condition. “Improved in condition” means the enhancement of the physical condition of a good as a result of production with respect to that good, other than by means of those “minor processing” operations described in paragraphs (n)(5), (n)(6), and (n)(7) of this section.

(j)

Incorporated. “Incorporated” means physically incorporated into a good as a result of production with respect to that good.

(k)

Indirect materials. “Indirect materials” means a good used in the production, testing or inspection of another good but not physically incorporated into that other good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of that other good, including:

(1)

Fuel and energy;

(2)

Tools, dies and molds;

(3)

Spare parts and materials used in the maintenance of equipment and buildings;

(4)

Lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;

(5)

Gloves, glasses, footwear, clothing, safety equipment and supplies;

(6)

Equipment, devices, and supplies used for testing or inspecting the goods;

(7)

Catalysts and solvents; and

(8)

Any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.

(l)

Inventory management method. “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 (GAAP) of the country in which the production is performed or is otherwise accepted by that country.

(m)

Material. “Material” means a good that is incorporated into another good as a result of production with respect to that other good, and includes parts, ingredients, subassemblies, and components.

(n)

Minor processing. “Minor processing” means the following:

(1)

Mere dilution with water or another substance that does not materially alter the characteristics of the good;

(2)

Cleaning, including removal of rust, grease, paint, or other coatings;

(3)

Application of preservative or decorative coatings, including lubricants, protective encapsulation, preservative or decorative paint, or metallic coatings;

(4)

Trimming, filing or cutting off small amounts of excess materials;

(5)

Unloading, reloading or any other operation necessary to maintain the good in good condition;

(6)

Putting up in measured doses, packing, repacking, packaging, repackaging;

(7)

Testing, marking, sorting, or grading;

(8)

Ornamental or finishing operations incidental to textile good production designed to enhance the marketing appeal or the ease of care of the product, such as dyeing and printing, embroidery and appliques, pleating, hemstitching, stone or acid washing, permanent pressing, or the attachment of accessories notions, findings and trimmings; or

(9)

Repairs and alterations, washing, laundering, or sterilizing.

(o)

Production. “Production” means growing, mining, harvesting, fishing, trapping, hunting, manufacturing, processing or assembling a good.

(p)

Simple assembly. “Simple assembly” means the fitting together of five or fewer parts all of which are foreign (excluding fasteners such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by other means without more than minor processing.

(q)

Value. “Value” means, with respect to § 102.13:

(1)

In the case of a good under NAFTA, its customs value or transaction value within the meaning of the appendix to part 181 of this chapter; or

(2)

In the case of a material under NAFTA, its customs value or value within the meaning of the appendix to part 181 of this chapter.

(3)

In the case of a good or material under the USMCA, its customs value or transaction value within the meaning of appendix A to part 182 of this chapter.

Notes, amendments, and revision history

Amendments

[T.D. 96-48, 61 FR 28955, June 6, 1996, as amended by CBP Dec. 21-10, 86 FR 35581, July 6, 2021]

Authority

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 3592, 4513.

Source

Source: T.D. 94-4, 59 FR 113, Jan. 3, 1994, unless otherwise noted.

Amendments

[T.D. 96-48, 61 FR 28955, June 6, 1996, as amended by CBP Dec. 21-10, 86 FR 35581, July 6, 2021]

§102.11. General rules.

19 C.F.R. § 102.11

The following rules shall apply for purposes of determining the country of origin of imported goods other than textile and apparel products covered by § 102.21.

(a)

The country of origin of a good is the country in which—

(1)

The good is wholly obtained or produced;

(2)

The good is produced exclusively from domestic materials; or

(3)

Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

(b)

Except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section:

(1)

The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good, or

(2)

If the material that imparts the essential character to the good is fungible, has been commingled, and direct physical identification of the origin of the commingled material is not practical, the country or countries of origin may be determined on the basis of an inventory management method.

(c)

Where the country of origin cannot be determined under paragraph (a) or (b) of this section and the good is specifically described in the Harmonized System as a set or mixture, or classified as a set, mixture or composite good pursuant to General Rule of Interpretation 3, the country of origin of the good is the country or countries of origin of all materials that merit equal consideration for determining the essential character of the good.

(d)

Where the country of origin of a good cannot be determined under paragraph (a), (b) or (c) of this section, the country of origin of the good shall be determined as follows:

(1)

If the good was produced only as a result of minor processing, the country of origin of the good is the country or countries of origin of each material that merits equal consideration for determining the essential character of the good;

(2)

If the good was produced by simple assembly and the assembled parts that merit equal consideration for determining the essential character of the good are from the same country, the country of origin of the good is the country of origin of those parts; or

(3)

If the country of origin of the good cannot be determined under paragraph (d)(1) or (d)(2) of this section, the country of origin of the good is the last country in which the good underwent production.

Notes, amendments, and revision history

Amendments

[T.D. 96-48, 61 FR 28956, June 6, 1996, as amended by CBP Dec. 21-10, 86 FR 35581, July 6, 2021]

Authority

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 3592, 4513.

Source

Source: T.D. 94-4, 59 FR 113, Jan. 3, 1994, unless otherwise noted.

Amendments

[T.D. 96-48, 61 FR 28956, June 6, 1996, as amended by CBP Dec. 21-10, 86 FR 35581, July 6, 2021]

§102.12. Fungible goods.

19 C.F.R. § 102.12

When fungible goods of different countries of origin are commingled the country of origin of the goods:

(a)

Is the countries of origin of those commingled goods; or

(b)

If the good is fungible, has been commingled, and direct physical identification of the origin of the commingled good is not practical, the country or countries of origin may be determined on the basis of an inventory management method.

Notes, amendments, and revision history

Amendments

[T.D. 94-4, 59 FR 113, Jan. 3, 1994, as amended by CBP Dec. 21-10, 86 FR 35581, July 6, 2021]

Authority

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 3592, 4513.

Source

Source: T.D. 94-4, 59 FR 113, Jan. 3, 1994, unless otherwise noted.

Amendments

[T.D. 94-4, 59 FR 113, Jan. 3, 1994, as amended by CBP Dec. 21-10, 86 FR 35581, July 6, 2021]

§102.13. De Minimis.

19 C.F.R. § 102.13

(a)

Except as otherwise provided in paragraphs (b) and (c) of this section, foreign materials that do not undergo the applicable change in tariff classification set out in § 102.20 or satisfy the other applicable requirements of that section when incorporated into a good shall be disregarded in determining the country of origin of the good if the value of those materials is no more than 7 percent of the value of the good or 10 percent of the value of a good of Chapter 22, Harmonized System.

(b)

Paragraph (a) of this section does not apply to a foreign material incorporated in a good provided for in Chapter 1, 2, 3, 4, 7, 8, 11, 12, 15, 17, or 20 of the Harmonized System.

(c)

Foreign components or materials that do not undergo the applicable change in tariff classification set out in § 102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel product covered by that section shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good.

Notes, amendments, and revision history

Amendments

[T.D. 96-48, 61 FR 28956, June 6, 1996]

Authority

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 3592, 4513.

Source

Source: T.D. 94-4, 59 FR 113, Jan. 3, 1994, unless otherwise noted.

Amendments

[T.D. 96-48, 61 FR 28956, June 6, 1996]

§102.15. Disregarded materials.

19 C.F.R. § 102.15

(a)

The following materials shall be disregarded when determining whether the good undergoes the applicable change in tariff classification set out in § 102.20 or § 102.21, or satisfies the other applicable requirements of those sections:

(1)

Packaging materials and containers in which a good is packaged for retail sale that are classified with the good;

(2)

Accessories, spare parts or tools delivered with the good that are classified with the good and shipped with the good;

(3)

Packing materials and containers in which a good is packed for shipment; and

(4)

Indirect materials.

(b)

[Reserved]

Notes, amendments, and revision history

Amendments

[T.D. 96-48, 61 FR 28956, June 6, 1996]

Authority

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 3592, 4513.

Source

Source: T.D. 94-4, 59 FR 113, Jan. 3, 1994, unless otherwise noted.

Amendments

[T.D. 96-48, 61 FR 28956, June 6, 1996]

§102.17. Non-qualifying operations.

19 C.F.R. § 102.17

A foreign material shall not be considered to have undergone an applicable change in tariff classification specified in § 102.20 or § 102.21 or to have met any other applicable requirements of those sections merely by reason of one or more of the following:

(a)

A change in end-use;

(b)

Dismantling or disassembly;

(c)

Simple packing, repacking or retail packaging without more than minor processing;

(d)

Mere dilution with water or another substance that does not materially alter the characteristics of the material; or

(e)

Collecting parts that, as collected, are classifiable in the same tariff provision as an assembled good pursuant to General Rule of Interpretation 2(a), without any additional operation other than minor processing.

Notes, amendments, and revision history

Amendments

[T.D. 96-48, 61 FR 28956, June 6, 1996]

Authority

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 3592, 4513.

Source

Source: T.D. 94-4, 59 FR 113, Jan. 3, 1994, unless otherwise noted.

Amendments

[T.D. 96-48, 61 FR 28956, June 6, 1996]

§102.18. Rules of interpretation.

19 C.F.R. § 102.18

(a)

When General Rule of Interpretation (GRI) 2(a) is referred to in § 102.20 as an exception to an allowed change in tariff classification, this means that such change will not be acceptable for purposes of that section if the change results from the assembly of parts into an incomplete or unfinished good which is classifiable in the same manner as a complete or finished good pursuant to GRI 2(a).

(b)

(1)

For purposes of identifying the material that imparts the essential character to a good under § 102.11, the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good. For purposes of this paragraph (b)(1):

(i)

The materials to be considered must be classified in a tariff provision from which a change in tariff classification is not allowed under the specific rule or other requirements applicable to the good under consideration. For example, in the case of a good classified in HTSUS subheading 8607.11 (the rule for which specifies a change to subheading 8607.11 from any other subheading, except from subheading 8607.12, and except from subheading 8607.19 when that change is pursuant to GRI 2(a)), the only materials that may be considered for purposes of identifying the materials that impart the essential character to the good are those that are classified in subheadings 8607.11, 8607.12 and, if the tariff shift is pursuant to GRI 2(a), 8607.19;

(ii)

Materials that may be considered include materials produced by the producer of the good and incorporated in the good. For example, if a producer of a good purchases raw materials and converts those raw materials into a component that is incorporated in the good, that component is a material that may be considered for purposes of identifying the materials that impart the essential character to the good, provided that the component is classified in a tariff provision from which a change in tariff classification is not allowed under the specific rule or other requirements applicable to the good; and

(iii)

If there is only one material that is classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good, then that material will represent the single material that imparts the essential character to the good under § 102.11.

(2)

For purposes of determining which one of two or more materials described in paragraph (b)(1) of this section imparts the essential character to a good under § 102.11, various factors may be examined depending upon the type of good involved. These factors include, but are not limited to, the following:

(i)

The nature of each material, such as its bulk, quantity, weight or value; and

(ii)

The role of each material in relation to the use of the good.

Notes, amendments, and revision history

Amendments

[T.D. 96-48, 61 FR 28957, June 6, 1996]

Authority

Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 3592, 4513.

Source

Source: T.D. 94-4, 59 FR 113, Jan. 3, 1994, unless otherwise noted.

Amendments

[T.D. 96-48, 61 FR 28957, June 6, 1996]

19 C.F.R. §§ 102.1–102.18

§102.1. Definitions.

Amendments

Authority

Source

Amendments

§102.11. General rules.

Amendments

Authority

Source

Amendments

§102.12. Fungible goods.

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Authority

Source

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§102.13. De Minimis.

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Authority

Source

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§102.15. Disregarded materials.

Amendments

Authority

Source

Amendments

§102.17. Non-qualifying operations.

Amendments

Authority

Source

Amendments

§102.18. Rules of interpretation.

Amendments

Authority

Source

Amendments

Cite this provision

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