19 C.F.R. §§ 102.1–102.21

10 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]

§102.19. NAFTA preference override.

19 C.F.R. § 102.19

(a)

Except in the case of goods covered by paragraph (b) of this section, if a good which is originating within the meaning of § 181.1(q) of this chapter is not determined under § 102.11(a) or (b) or § 102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin (see § 181.11 of this chapter) has been completed and signed for the good.

(b)

If, under any other provision of this part, the country of origin of a good which is originating within the meaning of § 181.1(q) of this chapter is determined to be the United States and that good has been exported from, and returned to, the United States after having been advanced in value or improved in condition in another NAFTA country, the country of origin of such good for Customs duty purposes is the last NAFTA country in which that good was advanced in value or improved in condition before its return to the United States.

(c)

Paragraphs (a) and (b) of this section apply only to goods entered for consumption, or withdrawn from warehouse for consumption, prior to July 1, 2020.

Notes, amendments, and revision history

Amendments

[T.D. 96-48, 61 FR 28957, June 6, 1996, as amended by CBP Dec. 21-10, 86 FR 35582, 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 28957, June 6, 1996, as amended by CBP Dec. 21-10, 86 FR 35582, July 6, 2021]

§102.20. Specific rules by tariff classification.

19 C.F.R. § 102.20

The following rules are the rules specified in § 102.11(a)(3) and other sections of this part. Where a rule under this section permits a change to a subheading from another subheading of the same heading, the rule will be satisfied only if the change is from a subheading of the same level specified in the rule.

Notes, amendments, and revision history

Amendments

[T.D. 96-48, 61 FR 28957, June 6, 1996; 61 FR 33846, July 1, 1996; 61 FR 41737, Aug. 12, 1996; T.D. 99-64, 64 FR 43266, Aug. 10, 1999; CBP Dec. 03-11, 68 FR 43631, July 24, 2003; CBP Dec. 08-42, 73 FR 64519, Oct. 30, 2008; 76 FR 54696, Sept. 2, 2011; CBP Dec. 12-15, 77 FR 58932, Sept. 25, 2012; CBP Dec. 12-21, 77 FR 73309, Dec. 10, 2012; CBP Dec. 22-25, 87 FR 68340, Nov. 15, 2022]

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

§102.21. Textile and apparel products.

19 C.F.R. § 102.21

(a)

Applicability. Except for purposes of determining whether goods originate in Israel or are the growth, product, or manufacture of Israel, and except as otherwise provided for by statute, the provisions of this section will control the determination of the country of origin of imported textile and apparel products for purposes of the Customs laws and the administration of quantitative restrictions. The provisions of this section will apply to goods entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.

(b)

Definitions. The following terms will have the meanings indicated when used in this section:

(1)

Country of origin. The term country of origin means the country, territory, or insular possession in which a good originates or of which a good is the growth, product, or manufacture.

(2)

Fabric-making process. A fabric-making process is any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric.

(3)

Knit to shape. The term knit to shape applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether a good is “knit to shape.”

(4)

Major parts. The term major parts means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.

(5)

Textile or apparel product. A textile or apparel product is any good classifiable in Chapters 50 through 63, Harmonized Tariff Schedule of the United States (HTSUS), and any good classifiable under one of the following HTSUS headings or subheadings:

(6)

Wholly assembled. The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.

(c)

General rules. Subject to paragraph (d) of this section, the country of origin of a textile or apparel product will be determined by sequential application of paragraphs (c) (1) through (5) of this section and, in each case where appropriate to the specific context, by application of the additional requirements or conditions of §§ 102.12 through 102.19 of this part.

(1)

The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.

(2)

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section.

(3)

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1) or (2) of this section:

(i)

If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii)

Except for fabrics of chapter 59 and goods of headings 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6307.10, 6307.90, 9404.90, and 9619.00.31-33 if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

(4)

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1), (2) or (3) of this section, the country of origin of the good is the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred.

(5)

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory, or insular possession in which an important assembly or manufacturing process occurred.

(d)

Treatment of sets. Where a good classifiable in the HTSUS as a set includes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be determined under paragraph (c) of this section, the country of origin of each component of the set that is a textile or apparel product will be determined separately under paragraph (c) of this section.

(e)

Specific rules by tariff classification.

(1)

The following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:

(2)

For goods of HTSUS headings 6213 and 6214 and HTSUS subheadings 6117.10, 6302.22, 6302.29, 6302.53, 6302.59, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 6304.99, 9404.90.85 and 9404.90.95, except for goods classified under those headings or subheadings as of cotton or of wool or consisting of fiber blends containing 16 percent or more by weight of cotton:

(i)

The country of origin of the good is the country, territory, or insular possession in which the fabric comprising the good was both dyed and printed when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing;

(ii)

If the country of origin cannot be determined under paragraph (e)(2)(i) of this section, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process; or

(iii)

For goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, if the country of origin cannot be determined under paragraph (e)(2)(i) of this section:

(A)

If the good is knit to shape, the country of origin of the good is the country, territory, or insular possession in which a change to HTSUS subheading 6117.10 from yarn occurs, provided that the knit to shape components are knit in a single country, territory, or insular possession; or

(B)

If the good is not knit to shape and consists of two or more component parts, the country of origin of the good is the country, territory, or insular possession in which a change to an assembled good of HTSUS subheading 6117.10 from unassembled components occurs, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

Notes, amendments, and revision history

Amendments

[T.D. 95-69, 60 FR 46197, Sept. 5, 1995]

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. 95-69, 60 FR 46197, Sept. 5, 1995]