[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR181.100]

[Page 393-394]
 
                        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. 181.100  Effect of NAFTA advance ruling letters; modification and revocation.

    (a) Effect of NAFTA advance ruling letters--(1) General. An advance 
ruling letter issued by Customs under the provisions of this subpart 
represents the official position of Customs with respect to the 
particular transaction or issue described therein and is binding on all 
Customs personnel in accordance with the provisions of this subpart 
until modified or revoked. In the absence of a change of practice or 
other modification or revocation which affects the principle of the 
advance ruling set forth in the advance ruling letter, that principle 
may be cited as authority in the disposition of transactions involving 
the same circumstances. An advance ruling letter is generally effective 
on the date it is issued or such later date as may be specified in the 
advance ruling and, commencing on its effective date, may be applied to 
entries for consumption and warehouse withdrawals for consumption which 
are unliquidated, or to other transactions with respect to which Customs 
has not taken final action on that date. See, however, paragraph (b) of 
this section (ruling letters which modify previous advance ruling 
letters) and Sec. 181.101 of this part (advance ruling letters published 
in the Customs Bulletin).
    (2) Application of NAFTA rulings to transactions--(i) General. Each 
NAFTA ruling letter is issued on the assumption that all of the 
information furnished in connection with the ruling request and 
incorporated in the ruling letter, either directly, by reference, or by 
implication, is accurate and complete in every material respect. The 
application of an advance ruling letter by a Customs field office to the 
transaction to which it is purported to relate is subject to the 
verification of the facts incorporated in the advance ruling letter, a 
comparison of the transaction described therein to the actual 
transaction, and the satisfaction of any conditions on which the advance 
ruling was based, and if the facts are materially different or a 
condition has not been satisfied, the treatment specified in the advance 
ruling will not be applied to the actual transaction. If, in the opinion 
of any Customs field office by whom the transaction is under 
consideration or review, the advance ruling letter should be modified or 
revoked, the findings and recommendations of that office will be 
forwarded to the Headquarters Office for consideration, prior to any 
final disposition with respect to the transaction by that office. If the 
transaction described in the NAFTA advance ruling letter and the actual 
transaction are the same, and any and all conditions set forth in the 
advance ruling letter have been satisfied, the advance ruling will be 
applied to the transaction.
    (ii) Tariff change rulings. Each advance ruling letter concerning 
whether a change in tariff classification has occurred will be applied 
only with respect to transactions involving either articles which are 
identical to the sample submitted with the advance ruling request and 
reflect the same processing or articles which conform to the description 
set forth in the advance ruling letter.
    (iii) Regional value content rulings. Each advance ruling letter 
concerning the application of a regional value content requirement will 
be applied only with respect to transactions involving the same 
merchandise and identical facts.
    (3) Reliance on NAFTA advance rulings by others. An advance ruling 
letter is subject to modification or revocation without notice to any 
person other than the person to whom the letter was addressed. 
Accordingly, no other person may rely on the advance ruling letter or 
assume that the principles of that advance ruling will be applied in 
connection with any transaction other than the one described in the 
letter. However, any person eligible to request an advance ruling under 
Sec. 181.92(b)(5) of this part may request information as to whether a 
previously-issued advance ruling letter has been modified or revoked by 
writing the Commissioner of

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Customs, Attention: Office of Regulations and Rulings, Washington, DC 
20229, and either enclosing a copy of the advance ruling letter or 
furnishing other information sufficient to permit the advance ruling 
letter in question to be identified.
    (b) Modification or revocation of NAFTA advance ruling letters--(1) 
General. Any NAFTA advance ruling letter may be modified or revoked by 
Customs Headquarters in any of the following circumstances or for any of 
the following purposes, provided that written notice of the modification 
or revocation is given to the person to whom the advance ruling letter 
was addressed:
    (i) If the ruling letter reflects or is based on an error:
    (A) Of fact;
    (B) In the tariff classification of a good or material that is the 
subject of the ruling;
    (C) In the application of a regional value-content requirement under 
General Note 12, HTSUS, and under this part;
    (D) In the application of the rules for determining whether a good 
qualifies as a good of Canada or Mexico under Annex 300-B, Annex 302.2 
or Chapter Seven of the NAFTA;
    (E) In the application of the rules for determining whether a good 
is a qualifying good under Chapter Seven of the NAFTA; or
    (F) In the application of the rules for determining whether a good 
qualifies for duty-free treatment under Sec. 181.64 of this part when 
the good re-enters the United States after having been exported to 
Canada or Mexico for repair or alteration;
    (ii) If the ruling letter is not in accordance with an 
interpretation agreed on by the United States, Canada and Mexico 
regarding Chapter Three or Chapter Four of the NAFTA;
    (iii) If there is a change in the material facts or circumstances on 
which the ruling is based;
    (iv) To conform to a modification of Chapter Three, Four, Five or 
Seven of the NAFTA, or of the Marking Rules, or of the regulations set 
forth in this part; or
    (v) To conform to a judicial decision or change in domestic law.
    (2) Application of modification or revocation of NAFTA advance 
ruling letters. The modification or revocation of a NAFTA advance ruling 
letter will not be applied to entries or warehouse withdrawals for 
consumption which were made prior to the effective date of such 
modification or revocation, except where the person to whom the advance 
ruling was issued has not acted in accordance with its terms and 
conditions.
    (3) Effective dates. Generally, a NAFTA letter modifying or revoking 
an earlier advance ruling will be effective on the date it is issued. 
However, Customs may, upon request or on its own initiative, delay the 
effective date of such a modification or revocation for a period of up 
to 90 calendar days from the date of issuance. Such a delay may be 
granted at the request of the party to whom the ruling letter was 
issued, provided such party can demonstrate to the satisfaction of 
Customs that it relied on the earlier advance ruling in good faith and 
to its detriment. The evidence of such reliance must cover the period 
from the date of the letter modifying or revoking the advance ruling 
back to the date of that advance ruling and must list all transactions 
claimed to be covered by the modified or revoked advance ruling by entry 
number (or other Customs assigned number), the quantity and value of 
merchandise covered by each such transaction (where applicable), the 
ports of entry, and the dates of final action by Customs. Such evidence 
must also include contracts, purchase orders, or other materials tending 
to establish that future transactions were arranged based on the earlier 
advance ruling. The request for delay must specifically identify the 
prior ruling on which reliance is claimed. All persons requesting a 
delay will be issued a separate letter setting forth the period, if any, 
of the delay to be provided. In appropriate circumstances, Customs may 
decide to make its decision, with respect to a delay, applicable to all 
persons, irrespective of demonstrated reliance; in this event, a notice 
announcing the delay will be published in the Customs Bulletin and 
individual ruling letters will not be issued.

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