[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: 19CFR181.76]

[Page 381-383]
 
                        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 G--Origin Verifications and Determinations
 
Sec. 181.76  Application of origin determinations.

    (a) General. Except as otherwise provided in this section, an origin 
determination may be applied upon issuance of the determination under 
Sec. 181.75 of this part.
    (b) Negative origin determinations. In the case of a negative origin 
determination issued under Sec. 181.75(b) of this part:
    (1) The date on which preferential tariff treatment may be denied 
shall be no earlier than 30 calendar days from the date on which:
    (i) Receipt of the written determination by the exporter or producer 
is confirmed, if a request under Sec. 181.75(b)(1) of this part has been 
made; or
    (ii) The written determination is sent by Customs, if no request 
under Sec. 181.75(b)(1) of this part has been made; and
    (2) Before denying preferential tariff treatment, Customs shall take 
into account any comments or additional information provided by the 
exporter or producer during the period established in accordance with 
paragraph (b)(1) of this section.
    (c) Cases involving a pattern of conduct. Where multiple origin 
verifications initiated under Sec. 181.72(a) of this part indicate a 
pattern of conduct by an exporter or producer involving false or 
unsupported representations on Certificates of Origin that a good 
imported into the United States qualifies as an originating good, 
Customs may deny subsequent claims for preferential tariff treatment on 
identical goods exported or produced by

[[Page 382]]

such person until that person establishes compliance with the rules 
applicable to originating goods as set forth in General Note 12, HTSUS, 
and in this part, provided that advance written notice of the intent to 
deny such claims is given to the importer. For purposes of this 
paragraph, a ``pattern of conduct'' means repeated instances of false or 
unsupported representations by an exporter or producer as established by 
Customs on the basis of not fewer than two origin verifications of two 
or more importations of the good that result in the issuance of not 
fewer than two written determinations issued to that exporter or 
producer pursuant to Sec. 181.75 of this part which conclude, as a 
finding of fact, that Certificates of Origin completed and signed by 
that exporter or producer with respect to identical goods contain false 
or unsupported representations.
    (d) Differing determinations. Where Customs determines, either as a 
result of an origin verification initiated under Sec. 181.72(a) of this 
part or under any other circumstance, that a certain good imported into 
the United States does not qualify as an originating good based on a 
tariff classification or a value applied in the United States to one or 
more materials used in the production of the good, including a material 
used in the production of another material that is used in the 
production of the good, which differs from the tariff classification or 
value applied to the materials by the country from which the good was 
exported, the Customs determination shall not become effective until 
Customs provides written notification thereof both to the U.S. importer 
of the good and to the person who completed and signed the Certificate 
of Origin upon which the claim for preferential tariff treatment for the 
good was based.
    (e) Applicability of a determination to prior importations. Customs 
shall not apply a determination made under paragraph (d) of this section 
to an importation made before the effective date of the determination 
if, prior to notification of the determination, the customs 
administration of the country from which the good was exported either 
issued an advance ruling under Article 509 of the NAFTA or any other 
ruling on the tariff classification or on the value of such materials, 
or gave consistent treatment to the entry of the materials under the 
tariff classification or value at issue, on which a person is entitled 
to rely and on which that person did in fact rely. For purposes of this 
paragraph, the person who received notification of the determination 
shall demonstrate to the satisfaction of Customs, in writing within 30 
calendar days of receipt of the notification, that the conditions set 
forth herein have been met. For purposes of this paragraph:
    (1) A ``ruling'' on which a person is entitled to rely in the case 
of Canada must be issued pursuant to section 43.1(1) of the Customs Act 
(Advance Rulings) or in accordance with Departmental Memorandum 11-11-1 
(National Customs Rulings) and in the case of Mexico must be issued 
pursuant to Article 34 of the Codigo Fiscal de la Federacion and 
pursuant to Article 30 of the Ley Aduanera or the applicable provision 
of Mexican law related to advance rulings under Article 509 of the 
NAFTA; and
    (2) ``Consistent treatment'' means the established application by 
the Canadian or Mexican customs administration that can be substantiated 
by the continued acceptance by the customs administration of the tariff 
classification or value of identical materials on importations of the 
materials into Canada or Mexico by the same importer over a period of 
not less than two years immediately prior to the date of signature of 
the Certificate of Origin for the good that is the subject of the 
determination referred to in paragraph (d) of this section, provided 
that with regard to those importations:
    (i) The tariff classification or value of the materials was not the 
subject of a verification, review or appeal by that customs 
administration on the date of the determination under paragraph (d) of 
this section; and
    (ii) The materials had not been accorded a different tariff 
classification or value by one or more district, regional or local 
offices of that customs administration on the date of the determination 
under paragraph (d) of this section.

[[Page 383]]

    (f) Detrimental reliance. If Customs proposes to deny preferential 
tariff treatment to a good pursuant to a determination made under 
paragraph (d) of this section, Customs shall postpone the application of 
the determination for a period not exceeding 90 calendar days from the 
date of issuance of the determination where the U.S. importer of the 
good, or the person who completed and signed the Certificate of Origin 
upon which the claim for preferential tariff treatment for the good was 
based, demonstrates to the satisfaction of Customs that it has relied in 
good faith to its detriment on the tariff classification or value 
applied to such materials by the customs administration of the country 
from which the good was exported.

[T.D 95-68, 60 FR 46364, Sept. 6, 1995; T.D. 95-68, 61 FR 1829, Jan. 24, 
1996]