[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 104-105]

 

                        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withdrawn from warehouse, for consumption on or after July 1, 1996, 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:

    (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



[[Page 105]]



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