[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 438-440]

 

                        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



[[Page 439]]



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

    (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



[[Page 440]]



(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]