[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: 19CFR181.92]

[Page 384-386]
 
                        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. 181.92  Definitions and general NAFTA advance ruling practice.

    (a) Definitions. For purposes of this subpart:
    (1) An advance ruling is a written statement issued by the 
Headquarters Office or the National Commodity Specialist Division or by 
such other office as designated by the Commissioner of Customs that 
interprets and applies the provisions of NAFTA to a specific set of 
facts involving any subject matter specified in Sec. 181.92(b)(6) of 
this part. An ``advance ruling letter'' is an advance ruling issued in 
response to a written request and set forth in a letter addressed to the 
person making the request or his designee. A ``published advance 
ruling'' is an advance ruling which has been published in full text in 
the Customs Bulletin.
    (2) An authorized agent is a person expressly authorized by a 
principal to act on his or her behalf. An advance ruling requested by an 
attorney or other person acting as an agent must include a

[[Page 385]]

statement describing the authority under which the request is made. With 
the exception of attorneys whose authority to represent is known, any 
person appearing before Customs as an agent in connection with an 
advance ruling request may be required to present evidence of his or her 
authority to represent the principal. The foregoing requirements will 
not apply to an individual representing his or her full-time employer or 
to a bona-fide officer, director or other qualified representative of a 
corporation, association, or organized group.
    (3) The term Headquarters Office, means the Office of Regulations 
and Rulings at Headquarters, United States Customs Service, Washington, 
DC.
    (4) An information letter is a written statement issued by the 
Headquarters Office or the National Commodity Specialist Division or by 
such other office as designated by the Commissioner of Customs that does 
no more than call attention to a well-established interpretation of 
principles under the NAFTA, without applying it to a specific set of 
facts. If Customs believes that general information may be of some 
benefit to the person making the request, an information letter may be 
issued in response to a request for an advance ruling when:
    (i) The request suggests that general information, rather than an 
advance ruling, is actually being sought;
    (ii) The request is incomplete or otherwise fails to meet the 
requirements set forth in this subpart; or
    (iii) The requested advance ruling cannot be issued for any other 
reason.
    (5) A NAFTA transaction is an act or activity to which the NAFTA 
provisions apply. A ``prospective'' NAFTA transaction is one that is 
merely contemplated or is currently being undertaken but has not 
resulted in any arrival or in the filing of any entry or entry summary 
or other document or in any other act so as to bring the transaction, or 
any part of it, under the jurisdiction of any Customs office. A 
``current'' NAFTA transaction is one which is presently under 
consideration by a field office of Customs. A ``completed'' NAFTA 
transaction is one which has been acted upon by a Customs field office 
and with respect to which that office has issued a determination which 
is final in nature, but is (or was) subject to appeal, petition, protest 
or other review as provided in the applicable Customs laws and 
regulations. An ``ongoing'' NAFTA transaction is a series of identical, 
recurring transactions, consisting of current and completed transactions 
where future transactions are contemplated.
    (6) The term National Commodity Specialist Division means the 
National Commodity Specialist Division, United States Customs Service, 
New York, New York.
    (b) General advance ruling practice. An advance ruling may be 
requested under the provisions of this subpart with respect to 
prospective NAFTA transactions. An advance ruling will be based on the 
facts and circumstances presented by the requester.
    (1) Prospective NAFTA transactions. It is in the interest of the 
sound administration of the NAFTA that persons engaging in any 
transaction affected by NAFTA fully understand the consequences of that 
transaction prior to its consummation. For this reason, Customs will 
give full and careful consideration to written requests from importers 
in the United States and exporters or producers in Canada or Mexico for 
advance rulings or information setting forth, with respect to a 
specifically described transaction, a definitive interpretation of 
applicable law or other appropriate information.
    (2) Current or ongoing NAFTA transactions. A question arising in 
connection with a NAFTA transaction already before a Customs field 
office by reason of arrival, entry or otherwise will be resolved by that 
office in accordance with the principles and precedents previously 
announced by the Headquarters Office. If such a question cannot be 
resolved on the basis of clearly established rules set forth in the 
NAFTA or the regulations thereunder, or in applicable Treasury 
Decisions, rulings, opinions, or court decisions published in the 
Customs Bulletin, that field office may, if it believes it appropriate, 
forward the question to the Headquarters Office for consideration.
    (3) Completed NAFTA transactions. A question arising in connection 
with an

[[Page 386]]

entry of merchandise which has been liquidated, or in connection with 
any other completed NAFTA transaction, may not be the subject of an 
advance ruling request under this subpart.
    (4) Oral advice. Customs will not issue an advance ruling in 
response to an oral request. Oral opinions or advice of Customs 
personnel are not binding on Customs. However, oral inquiries may be 
made to Customs offices regarding existing advance rulings, the scope of 
such advance rulings, the types of transactions with respect to which 
Customs will issue advance rulings, the scope of the advance rulings 
which may be issued, or the procedures to be followed in submitting 
advance ruling requests, as prescribed in this subpart.
    (5) Who may request an advance ruling. An advance ruling may be 
requested by any of the following persons (individuals, corporations, 
partnerships, associations, or other entities or groups) having a direct 
and demonstrable interest in the question or questions presented in the 
advance ruling request, or by the authorized agent of any such person:
    (i) An importer in the United States;
    (ii) An exporter or a producer of a good in Canada or Mexico; or
    (iii) A Canadian or Mexican producer of a material that is used in 
the production of a good imported into the United States, but only with 
regard to that material and only in regard to a matter described in 
paragraphs (b)(6)(i) through (v) and (vii) of this section.
    (6) Subject matter of advance rulings. Customs shall issue advance 
rulings under this subpart concerning the following:
    (i) Whether materials imported from a country other than the United 
States, Canada or Mexico and used in the production of a good undergo an 
applicable change in tariff classification set forth in General Note 12, 
HTSUS, as a result of production occurring entirely in the United 
States, Canada and/or Mexico;
    (ii) Whether a good satisfies a regional value-content requirement 
under the transaction value method or under the net cost method as 
provided for in General Note 12, HTSUS, and in this part;
    (iii) For purposes of determining whether a good satisfies a 
regional value-content requirement under General Note 12, HTSUS, and 
under this part, the appropriate basis or method for value to be applied 
by an exporter or a producer in Canada or Mexico, in accordance with the 
principles set forth in the appendix to this part, for calculating the 
transaction value of the good or of the materials used in the production 
of the good;
    (iv) For purposes of determining whether a good satisfies a regional 
value-content requirement under General Note 12, HTSUS, and under this 
part, the appropriate basis or method for reasonably allocating costs, 
in accordance with the allocation methods set forth in the appendix to 
this part, for calculating the net cost of the good or the value of an 
intermediate material;
    (v) Whether a good qualifies as an originating good under General 
Note 12, HTSUS, and under the appendix to this part;
    (vi) Whether a good that re-enters the United States after having 
been exported from the United States to Canada or Mexico for repair or 
alteration qualifies for duty-free treatment in accordance with 
Sec. 181.64 of this part;
    (vii) Whether the proposed or actual marking of a good satisfies 
country of origin marking requirements under part 134 of this chapter 
and under the Marking Rules set forth in part 102 of this chapter;
    (viii) Whether an originating good qualifies as a good of Canada or 
Mexico under Annex 300-B, Annex 302.2 and Chapter Seven of the NAFTA; 
and
    (ix) Whether a good is a qualifying good under Chapter Seven of the 
NAFTA.