[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: 19CFR102.1]

[Page 439-440]
 
                        TITLE 19--CUSTOMS DUTIES
 
   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 
              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY
 
PART 102_RULES OF ORIGIN--Table of Contents
 
                            Subpart A_General
 
Sec. 102.1  Definitions.


    (a) Advanced in value. ``Advanced in value'' means an increase in 
the value of a good as a result of production with respect to that good, 
other than by means of those ``minor processing'' operations described 
in paragraphs (m)(5), (m)(6), and (m)(7) of this section.
    (b) Commingled. ``Commingled'' means physically combined or mixed.
    (c) Direct physical identification. ``Direct physical 
identification'' means identification by visual or other organoleptic 
examination.
    (d) Domestic material. ``Domestic material'' means a material whose 
country of origin as determined under these rules is the same country as 
the country in which the good is produced.
    (e) Foreign material. ``Foreign material'' means a material whose 
country of origin as determined under these rules is not the same 
country as the country in which the good is produced.
    (f) Fungible goods or fungible materials. ``Fungible goods or 
fungible materials'' means goods or materials that are interchangeable 
for commercial purposes and whose properties are essentially identical.
    (g) A good wholly obtained or produced. A good ``wholly obtained or 
produced'' in a country means:
    (1) A mineral good extracted in that country;
    (2) A vegetable or plant good harvested in that country;
    (3) A live animal born and raised in that country;
    (4) A good obtained from hunting, trapping or fishing in that 
country;
    (5) A good (fish, shellfish and other marine life) taken from the 
sea by vessels registered or recorded with that country and flying its 
flag;
    (6) A good produced on board factory ships from the goods referred 
to in paragraph (g)(5) of this section, provided such factory ships are 
registered or recorded with that country and fly its flag;
    (7) A good taken by that country or a person of that country from 
the seabed or beneath the seabed outside territorial waters, provided 
that country has rights to exploit such seabed;
    (8) A good taken from outer space, provided they are obtained by 
that country or a person of that country;
    (9) Waste and scrap derived from:
    (i) Production in a country, or
    (ii) Used goods collected in that country provided such goods are 
fit only for the recovery of raw materials; and

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    (10) A good produced in that country exclusively from goods referred 
to in paragraphs (g)(1) through (10) of this section or from their 
derivatives, at any stage of production.
    (h) Harmonized System. ``Harmonized System'' means the Harmonized 
Commodity Description and Coding System, including its general rules of 
Interpretation, Section Notes and Chapter Notes, as adopted and 
implemented by the United States.
    (i) Improved in condition. ``Improved in condition'' means the 
enhancement of the physical condition of a good as a result of 
production with respect to that good, other than by means of those 
``minor processing'' operations described in paragraphs (m)(5), (m)(6), 
and (m)(7) of this section.
    (j) Incorporated. ``Incorporated'' means physically incorporated 
into a good as a result of production with respect to that good.
    (k) Indirect materials. ``Indirect materials'' means a good used in 
the production, testing or inspection of another good but not physically 
incorporated into that other good, or a good used in the maintenance of 
buildings or the operation of equipment associated with the production 
of that other good, including:
    (1) Fuel and energy;
    (2) Tools, dies and molds;
    (3) Spare parts and materials used in the maintenance of equipment 
and buildings;
    (4) Lubricants, greases, compounding materials and other materials 
used in production or used to operate equipment and buildings;
    (5) Gloves, glasses, footwear, clothing, safety equipment and 
supplies;
    (6) Equipment, devices, and supplies used for testing or inspecting 
the goods;
    (7) Catalysts and solvents; and
    (8) Any other goods that are not incorporated into the good but 
whose use in the production of the good can reasonably be demonstrated 
to be a part of that production.
    (l) Material. ``Material'' means a good that is incorporated into 
another good as a result of production with respect to that other good, 
and includes parts, ingredients, subassemblies, and components.
    (m) Minor processing. ``Minor processing'' means the following:
    (1) Mere dilution with water or another substance that does not 
materially alter the characteristics of the good;
    (2) Cleaning, including removal of rust, grease, paint, or other 
coatings;
    (3) Application of preservative or decorative coatings, including 
lubricants, protective encapsulation, preservative or decorative paint, 
or metallic coatings;
    (4) Trimming, filing or cutting off small amounts of excess 
materials;
    (5) Unloading, reloading or any other operation necessary to 
maintain the good in good condition;
    (6) Putting up in measured doses, packing, repacking, packaging, 
repackaging;
    (7) Testing, marking, sorting, or grading;
    (8) Ornamental or finishing operations incidental to textile good 
production designed to enhance the marketing appeal or the ease of care 
of the product, such as dyeing and printing, embroidery and appliques, 
pleating, hemstitching, stone or acid washing, permanent pressing, or 
the attachment of accessories notions, findings and trimmings; or
    (9) Repairs and alterations, washing, laundering, or sterilizing.
    (n) Production. ``Production'' means growing, mining, harvesting, 
fishing, trapping, hunting, manufacturing, processing or assembling a 
good.
    (o) Simple assembly. ``Simple assembly'' means the fitting together 
of five or fewer parts all of which are foreign (excluding fasteners 
such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by 
other means without more than minor processing.
    (p) Value. ``Value'' means, with respect to Sec. 102.13:
    (1) In the case of a good, its customs value or transaction value 
within the meaning of the appendix to part 181 of this chapter; or
    (2) In the case of a material, its customs value or value within the 
meaning of the appendix to part 181 of this chapter.

[T.D. 96-48, 61 FR 28955, June 6, 1996]

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