[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: 19CFR102.18]



[Page 441-442]

 

                        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 B_Rules of Origin

 

Sec.  102.18  Rules of interpretation.



    (a) When General Rule of Interpretation (GRI) 2(a) is referred to in 

Sec.  102.20 as an exception to an allowed change in tariff 

classification, this means that such change will not be acceptable for 

purposes of that section if the change results from the assembly of 

parts into an incomplete or unfinished good which is classifiable in the 

same manner as a complete or finished good pursuant to GRI 2(a).

    (b) (1) For purposes of identifying the material that imparts the 

essential character to a good under Sec.  102.11, the only materials 

that shall be taken into consideration are those domestic or foreign 

materials that are classified in a tariff provision from which a change 

in tariff classification is not allowed under the Sec.  102.20 specific 

rule or other requirements applicable to the good. For purposes of this 

paragraph (b)(1):

    (i) The materials to be considered must be classified in a tariff 

provision from which a change in tariff classification is not allowed 

under the specific rule or other requirements applicable to the good 

under consideration. For example, in the case of a good classified in 

HTSUS subheading 8607.11 (the rule for which specifies a change to 

subheading 8607.11 from any other subheading, except from subheading 

8607.12, and except from subheading 8607.19 when that change is pursuant 

to GRI 2(a)), the only materials that may



[[Page 442]]



be considered for purposes of identifying the materials that impart the 

essential character to the good are those that are classified in 

subheadings 8607.11, 8607.12 and, if the tariff shift is pursuant to GRI 

2(a), 8607.19;

    (ii) Materials that may be considered include materials produced by 

the producer of the good and incorporated in the good. For example, if a 

producer of a good purchases raw materials and converts those raw 

materials into a component that is incorporated in the good, that 

component is a material that may be considered for purposes of 

identifying the materials that impart the essential character to the 

good, provided that the component is classified in a tariff provision 

from which a change in tariff classification is not allowed under the 

specific rule or other requirements applicable to the good; and

    (iii) If there is only one material that is classified in a tariff 

provision from which a change in tariff classification is not allowed 

under the Sec.  102.20 specific rule or other requirements applicable to 

the good, then that material will represent the single material that 

imparts the essential character to the good under Sec.  102.11.

    (2) For purposes of determining which one of two or more materials 

described in paragraph (b)(1) of this section imparts the essential 

character to a good under Sec.  102.11, various factors may be examined 

depending upon the type of good involved. These factors include, but are 

not limited to, the following:

    (i) The nature of each material, such as its bulk, quantity, weight 

or value; and

    (ii) The role of each material in relation to the use of the good.



[T.D. 96-48, 61 FR 28957, June 6, 1996]