[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR102.18]

[Page 393]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 102--RULES OF ORIGIN--Table of Contents
 
                       Subpart B--Rules of Origin
 
Sec. 102.18  Rules of interpretation.

    (a) When General Rule of Interpretation (GRI) 2(a) is referred to in 
Sec. 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 Sec. 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 Sec. 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 Sec. 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 Sec. 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 Sec. 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.

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