[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR10.26]

[Page 101-102]
 
                        TITLE 19--CUSTOMS DUTIES
 
   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 
              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY
 
PART 10_ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC.
--Table of Contents
 
                      Subpart A_General Provisions
 
Sec. 10.26  Articles assembled or processed in a beneficiary country 

in whole of U.S. components or ingredients; articles assembled in a 
beneficiary country 
          from textile components cut to shape in the United States.

    (a) No article (except a textile article, apparel article, or 
petroleum, or any product derived from petroleum, provided for in 
heading 2709 or 2710, Harmonized Tariff Schedule of the United States 
(HTSUS)) shall be treated as a foreign article or as subject to duty:
    (1) If the article is assembled or processed in a beneficiary 
country in whole of fabricated components that are a product of the 
United States; or
    (2) If the article is processed in a beneficiary country in whole of 
ingredients (other than water) that are a product of the United States; 
and
    (3) Neither the fabricated components, materials or ingredients 
after their exportation from the United States, nor the article before 
its importation into the United States, enters into the commerce of any 
foreign country other than a beneficiary country.
    (b) No article (except a textile or apparel product) entered, or 
withdrawn from warehouse, for consumption on or after July 1, 1996, 
shall be treated as a foreign article or as subject to duty:
    (1) If the article is assembled in a beneficiary country in whole of 
textile components cut to shape (but not to length, width, or both) in 
the United States from foreign fabric; or
    (2) If the article is assembled in a beneficiary country in whole of 
both textile components described in paragraph (b)(1) of this section 
and components that are products of the United States; and
    (3) Neither the components after their exportation from the United 
States, nor the article before its importation into the United States, 
enters into the commerce of any foreign country other than a beneficiary 
country.
    (c) For purposes of this section:

[[Page 102]]

    (1) The terms ``textile article'', ``apparel article'', and 
``textile or apparel product'' cover all articles, other than footwear 
and parts of footwear, that are classifiable in an HTSUS subheading 
which carries a textile and apparel category number designation;
    (2) The term ``beneficiary country'' has the meaning set forth in 
Sec. 10.191(b)(1); and
    (3) A component, material, ingredient, or article shall be deemed to 
have not entered into the commerce of any foreign country other than a 
beneficiary country if:
    (i) The component, material, or ingredient was shipped directly from 
the United States to a beneficiary country, or the article was shipped 
directly to the United States from a beneficiary country, without 
passing through the territory of any non-beneficiary country; or
    (ii) Where the component, material, ingredient, or article passed 
through the territory of a non-beneficiary country while en route to a 
beneficiary country or the United States:
    (A) The invoices, bills of lading, and other shipping documents 
pertaining to the component, material, ingredient, or article show a 
beneficiary country or the United States as the final destination and 
the component, material, ingredient, or article was neither sold at 
wholesale or retail nor subjected to any processing or other operation 
in the non-beneficiary country; or
    (B) The component, material, ingredient, or article remained under 
the control of the customs authority of the non-beneficiary country and 
was not subjected to operations in that non-beneficiary country other 
than loading and unloading and activities necessary to preserve the 
component, material, ingredient, or article in good condition.

[T.D. 95-69, 60 FR 46197, Sept. 5, 1995]

     Free Entry--Articles for the Use of Foreign Military Personnel