[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR181.93]

[Page 382-386]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 181--NORTH AMERICAN FREE TRADE AGREEMENT--Table of Contents
 
                  Subpart I--Advance Ruling Procedures
 
Sec. 181.93  Submission of advance ruling requests.

    (a) Form. A request for an advance ruling should be written in the 
English language and in the form of a letter. For any subject matter 
specified in Sec. 181.92(b)(6) (i), (v), (vi), (vii), (viii) or (ix) of 
this part, the request may be directed either to the Commissioner of 
Customs, Attention: Office of Regulations and Rulings, Washington, DC 
20229, or to the National Commodity Specialist Division, United States 
Customs Service, 6 World Trade Center, New York, NY 10048. For any 
subject matter specified in Sec. 181.92(b)(6)(ii), (iii) or (iv) of this 
part, the request must be directed to the Commissioner of Customs, 
Attention: Office of Regulations and Rulings, Washington, DC 20229.
    (b) Content--(1) General. Each request for an advance ruling must 
identify the specific subject matter under Sec. 181.92(b)(6) of this 
part to which the request relates, must contain a complete statement of 
all relevant facts relating to the NAFTA transaction and must state that 
the information presented is accurate and complete. The following facts 
must be included: the names, addresses, and other identifying 
information of all interested parties (if known); the name of the port 
or place at which any good involved in the transaction will be imported 
or which will otherwise have jurisdiction with respect to the act or 
activity described

[[Page 383]]

in the transaction; and a description of the transaction itself, 
appropriate in detail to the subject matter of the requested advance 
ruling. Where the request for an advance ruling is submitted by or on 
behalf of the importer of the good involved in the transaction, the 
request must include the name and address of the exporter and, if known, 
producer of the good. Where the request for an advance ruling is 
submitted by or on behalf of the exporter of the good involved in the 
transaction, the request must include the name and address of the 
producer and importer of the good, if known. Where the request for an 
advance ruling is submitted by or on behalf of the producer of the good 
involved in the transaction, the request must include the name and 
address of the exporter and importer of the good, if known. In addition, 
where relevant to the issue that is the subject of the request for an 
advance ruling, and regardless of the specific nature of the advance 
ruling requested, the request must include:
    (i) A copy of any advance ruling or other ruling with respect to the 
tariff classification of the good that has been issued by Customs to the 
person submitting the request; or
    (ii) Sufficient information to enable Customs to classify the good 
where no advance ruling or other ruling with respect to the tariff 
classification of the good has been issued by Customs to the person 
submitting the request. Such information includes a full description of 
the good, including, where relevant, the composition of the good, a 
description of the process by which the good is manufactured, a 
description of the packaging in which the good is contained, the 
anticipated use of the good and its commercial, common or technical 
designation, and product literature, drawings, photographs or 
schematics.
    (2) Description of transaction--(i) General. The prospective Customs 
transaction to which the advance ruling request relates must be 
described in sufficient detail to permit proper application of the 
relevant NAFTA provisions.
    (ii) Tariff change rulings--(A) General. If the transaction involves 
the importation of a good or material for which a ruling is requested as 
to whether a change in tariff classification has occurred, the request 
should set forth: The principal or chief use of the good or material in 
the United States and the commercial, common, or technical designation 
of the good or material; if the good or material is composed of two or 
more substances, the relative quantity (by both weight and by volume) 
and value of each substance; any applicable special invoicing 
requirements set forth in part 141 of this chapter (if known); and any 
other information which may assist in determining the appropriate tariff 
classification of the good or material. The advance ruling request 
should also note, whenever germane, the purchase price of the good or 
material, and its approximate selling price in the United States. Each 
individual request for an advance ruling must be limited to five 
merchandise items, all of which must be of the same class or kind. Only 
NAFTA tariff change rulings will be issued under this subpart. Tariff 
classification rulings which do not involve the application of the NAFTA 
shall be issued under part 177 of this chapter.
    (B) Issues involving a change in tariff classification of a 
material. Where the request for the advance ruling involves the 
application of a rule of origin that requires an assessment of whether 
materials used in the production of an imported good undergo an 
applicable change in tariff classification, the request must list each 
material used in the production of the good and must:
    (1) Identify each material which is claimed to be an originating 
material and provide a complete description of each such material, 
including the basis for the claim as to originating status;
    (2) Identify each material which is a non-originating material, or 
for which the origin is unknown, and provide a complete description of 
each such material, including its tariff classification if known; and
    (3) Describe all processing operations employed in the production of 
the good, the location of each operation and the sequence in which the 
operations occur.

[[Page 384]]

    (iii) NAFTA rulings on regional value content. NAFTA advance ruling 
requests, if involving the issue of whether a good satisfies a regional 
value content requirement under the transaction value method or under 
the net cost method, or under both methods, as provided for in General 
Note 12, HTSUS, and in the appendix to this part, must specify each 
method under which eligibility is sought. Where the transaction value 
method is specified, the advance ruling request must include: 
information sufficient to calculate the transaction value of the good in 
accordance with schedule II of the appendix to this part with respect to 
the transaction of the producer of the good, adjusted to an F.O.B. 
basis; information sufficient to calculate the value of each non-
originating material, or material the origin of which is unknown, that 
is used by the producer in the production of the good in accordance with 
the provisions of section 7 and, where applicable, section 6(10) of the 
appendix to this part; a complete description of each material that is 
claimed to be an originating material and that is used in the production 
of the good, including the basis for the claim as to originating status; 
information sufficient to permit an examination of the factors 
enumerated in schedule III or VIII of the appendix to this part where 
the advance ruling request involves an issue of whether, with respect to 
the good or material under the applicable schedule, the transaction 
value is acceptable; and information sufficient for any other 
circumstance to make any determination relevant to the application of 
the regional value content requirement to the good. Where the net cost 
method is specified, the advance ruling request must include: a list of 
all product, period and other costs relevant to determining the total 
cost of the good as defined in the appendix to this part; a list of all 
excluded costs to be subtracted from the total cost of the good as 
provided in the appendix to this part; information sufficient to 
calculate the value of each non-originating material, or material the 
origin of which is unknown, that is used in the production of the good, 
in accordance with section 7 of the appendix to this part; the basis for 
any allocation of costs in accordance with schedule VII of the appendix 
to this part; the period over which the net cost calculation is to be 
made; and any other information relevant to determining the appropriate 
value of any cost under this part. Where the advance ruling request 
concerns only the calculation of an element of a regional value content 
formula, and with regard to the information specified in paragraphs 
(b)(1) through (b)(5) of this section, the request need only contain the 
following: the information in paragraph (b)(1), other than the 
information specified in paragraph (b)(1)(i) or (b)(1)(ii); the 
information in paragraph (b)(5); and any information in this paragraph 
(b)(2)(iii) which is relevant to the issue that is the subject of the 
request.
    (iv) NAFTA rulings on producer materials. W here the advance ruling 
request involves an issue with respect to an intermediate material under 
Article 402(10) of the NAFTA (see section 7(4) of the appendix to this 
part), the request must contain sufficient information to determine the 
origin and value of the material in accordance with Article 402(11) of 
the NAFTA (see section 7(6) of the appendix to this part). Where the 
advance ruling request is submitted by a Canadian or Mexican producer of 
a material under Sec. 181.92(b)(5)(iii) of this part and concerns only 
the origin of such material, and with regard to the information 
specified in paragraphs (b)(1) through (b)(5) of this section, the 
request need only include the following: the information in paragraph 
(b)(1), including any information specified in paragraph (b)(1)(i) or 
(b)(1)(ii) which is relevant to the issue that is the subject of the 
request; any information in paragraph (b)(2)(ii)(B) which is relevant to 
the issue that is the subject of the request; a sample as provided for 
in paragraph (b)(3) if relevant to the issue that is the subject of the 
request; and the information in paragraph (b)(5).
    (3) Samples. Each request for an advance ruling should be 
accompanied by photographs, drawings, or other pictorial representations 
of the good and, whenever possible, by a sample of the good unless a 
precise description of the good is not essential to the advance ruling 
requested. Any good consisting

[[Page 385]]

of materials in chemical or physical combination for which a laboratory 
analysis has been prepared by or for the manufacturer should include a 
copy of that analysis, flow charts, CAS number, and related information. 
A sample submitted in connection with a request for an advance ruling 
becomes a part of the Customs file in the matter and will be retained 
until the advance ruling is issued or the advance ruling request is 
otherwise disposed of. A sample should only be submitted with the 
understanding that all or a part of it may be damaged or consumed in the 
course of examination, testing, analysis, or other actions undertaken in 
connection with the advance ruling request.
    (4) Related documents. If the question or questions presented in the 
advance ruling request directly relate to matters set forth in any 
invoice, contract, agreement, or other document, a copy of the document 
must be submitted with the request. (Original documents should not be 
submitted inasmuch as any documents or exhibits furnished with the 
advance ruling request become a part of the Customs file in the matter 
and cannot be returned.) The relevant facts reflected in any documents 
submitted, and an explanation of their bearing on the question or 
questions presented, must be expressly set forth in the advance ruling 
request.
    (5) Prior or current transactions--(i) General. Each request for an 
advance ruling must state:
    (A) Whether, to the knowledge of the person submitting the request, 
the same transaction or issue, or one identical to it, has ever been 
considered, or is currently being considered by any Customs office;
    (B) Whether, to the knowledge of the person submitting the request, 
the issue involved has ever been, or is currently, the subject of:
    (1) Review by the United States Court of International Trade, the 
United States Court of Appeals for the Federal Circuit, or any court of 
appeal therefrom, or review by a judicial or quasi-judicial body in 
Canada or Mexico;
    (2) A verification of origin performed in the United States, Canada 
or Mexico;
    (3) An administrative appeal in the United States, Canada or Mexico; 
or
    (4) A request for an advance ruling under this subpart, or a request 
for an advance ruling in Canada or Mexico under an appropriate authority 
referred to in Sec. 181.76(e)(1) of this part;
    (C) The status or disposition of any matter on which an affirmative 
statement is made under paragraph (b)(5)(i)(B) of this section; and
    (D) Whether the transaction described in the advance ruling request 
is but one of a series of similar and related transactions.
    (ii) Change in status of transaction. If a prospective transaction 
which is the subject of an advance ruling request becomes a current 
transaction, the person who submitted the request shall so notify the 
office processing the request.
    (6) Statement of position. If the request for an advance ruling asks 
that a particular determination or conclusion be reached in the advance 
ruling letter, a statement must be included in the request setting forth 
the basis for that determination or conclusion, together with a citation 
of all relevant supporting authority.
    (7) Privileged or confidential information. Information which is 
claimed to constitute trade secrets or privileged or confidential 
commercial or financial information regarding the business transactions 
of private parties the disclosure of which would cause substantial harm 
to the competitive position of the person making the request (or of 
another interested party) must be identified clearly, and the reasons 
such information should not be disclosed, including, where applicable, 
the reasons the disclosure of the information would prejudice the 
competitive position of the person making the request (or of another 
interested party), must be set forth. An advance ruling will not be 
issued until all trade secret, privilege or confidentiality issues are 
resolved (see Sec. 181.99(a)(3) of this part).
    (c) Signing; instruction as to reply. The request for an advance 
ruling must be signed by a person authorized to make the request, as 
described in Sec. 181.92(b)(5) of this part. An advance ruling requested 
by a principal or authorized

[[Page 386]]

agent may direct that the advance ruling letter be addressed to the 
other.
    (d) Requests for immediate consideration. Customs will normally 
process requests for advance rulings in the order they are received and 
as expeditiously as possible, as specified in Sec. 181.99 of this part. 
However, a request that a particular matter be given consideration ahead 
of its regular order, if made in writing at the time the request is 
submitted, or subsequent thereto, and showing a clear need for such 
treatment, will be given consideration as the particular circumstances 
warrant and permit. Requests for special consideration made by telegram 
or electronic transmission will be treated in the same manner as 
requests made by letter, but advance rulings will not be issued by 
telegram or electronic transmission. A telegram or electronic 
transmission must be followed up with a signed original within 14 
calendar days of the submission of the telegram or electronic 
transmission. In no event can any assurance be given that a particular 
request for an advance ruling will be acted upon by the time requested.

[T.D. 95-68, 60 FR 46364, Sept. 6, 1995, as amended by T.D. 99-64, 64 FR 
43267, Aug. 10, 1999]