[Code of Federal Regulations]

[Title 19, Volume 2]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR181.100]



[Page 393-395]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 181_NORTH AMERICAN FREE TRADE AGREEMENT--Table of Contents

 

                   Subpart I_Advance Ruling Procedures

 

Sec.  181.100  Effect of NAFTA advance ruling letters; modification and 

revocation.



    (a) Effect of NAFTA advance ruling letters--(1) General. An advance 

ruling letter issued by Customs under the provisions of this subpart 

represents the official position of Customs with respect to the 

particular transaction or issue described therein and is binding on all 

Customs personnel in accordance with the provisions of this subpart 

until modified or revoked. In the absence of a change of practice or 

other modification or revocation which affects the principle of the 

advance ruling set forth in the advance ruling letter, that principle 

may be cited as authority in the disposition of transactions involving 

the same circumstances. An advance ruling letter is generally effective 

on the date it is issued or such later date as may be specified in the 

advance ruling and, commencing on its effective date, may be applied to 

entries for consumption and warehouse withdrawals for consumption which 

are unliquidated, or to other transactions with respect to which Customs 

has not taken final action on that date. See, however, paragraph (b) of 

this section (ruling letters which modify previous advance ruling 

letters) and Sec.  181.101 of this part (advance ruling letters 

published in the Customs Bulletin).

    (2) Application of NAFTA rulings to transactions--(i) General. Each 

NAFTA ruling letter is issued on the assumption that all of the 

information furnished in connection with the ruling request and 

incorporated in the ruling letter, either directly, by reference, or by 

implication, is accurate and complete in every material respect. The 

application of an advance ruling letter by a Customs field office to the 

transaction to which it is purported to relate is subject to the 

verification of the facts incorporated in the advance ruling letter, a 

comparison of the transaction described therein to the actual 

transaction, and the satisfaction of any conditions on which the advance 

ruling was based, and if the facts are materially different or a 

condition has not been satisfied, the treatment specified



[[Page 394]]



in the advance ruling will not be applied to the actual transaction. If, 

in the opinion of any Customs field office by whom the transaction is 

under consideration or review, the advance ruling letter should be 

modified or revoked, the findings and recommendations of that office 

will be forwarded to the Headquarters Office for consideration, prior to 

any final disposition with respect to the transaction by that office. If 

the transaction described in the NAFTA advance ruling letter and the 

actual transaction are the same, and any and all conditions set forth in 

the advance ruling letter have been satisfied, the advance ruling will 

be applied to the transaction.

    (ii) Tariff change rulings. Each advance ruling letter concerning 

whether a change in tariff classification has occurred will be applied 

only with respect to transactions involving either articles which are 

identical to the sample submitted with the advance ruling request and 

reflect the same processing or articles which conform to the description 

set forth in the advance ruling letter.

    (iii) Regional value content rulings. Each advance ruling letter 

concerning the application of a regional value content requirement will 

be applied only with respect to transactions involving the same 

merchandise and identical facts.

    (3) Reliance on NAFTA advance rulings by others. An advance ruling 

letter is subject to modification or revocation without notice to any 

person other than the person to whom the letter was addressed. 

Accordingly, no other person may rely on the advance ruling letter or 

assume that the principles of that advance ruling will be applied in 

connection with any transaction other than the one described in the 

letter. However, any person eligible to request an advance ruling under 

Sec.  181.92(b)(5) of this part may request information as to whether a 

previously-issued advance ruling letter has been modified or revoked by 

writing the Commissioner of Customs, Attention: Office of Regulations 

and Rulings, Washington, DC 20229, and either enclosing a copy of the 

advance ruling letter or furnishing other information sufficient to 

permit the advance ruling letter in question to be identified.

    (b) Modification or revocation of NAFTA advance ruling letters--(1) 

General. Any NAFTA advance ruling letter may be modified or revoked by 

Customs Headquarters in any of the following circumstances or for any of 

the following purposes, provided that written notice of the modification 

or revocation is given to the person to whom the advance ruling letter 

was addressed:

    (i) If the ruling letter reflects or is based on an error:

    (A) Of fact;

    (B) In the tariff classification of a good or material that is the 

subject of the ruling;

    (C) In the application of a regional value-content requirement under 

General Note 12, HTSUS, and under this part;

    (D) In the application of the rules for determining whether a good 

qualifies as a good of Canada or Mexico under Annex 300-B, Annex 302.2 

or Chapter Seven of the NAFTA;

    (E) In the application of the rules for determining whether a good 

is a qualifying good under Chapter Seven of the NAFTA; or

    (F) In the application of the rules for determining whether a good 

qualifies for duty-free treatment under Sec.  181.64 of this part when 

the good re-enters the United States after having been exported to 

Canada or Mexico for repair or alteration;

    (ii) If the ruling letter is not in accordance with an 

interpretation agreed on by the United States, Canada and Mexico 

regarding Chapter Three or Chapter Four of the NAFTA;

    (iii) If there is a change in the material facts or circumstances on 

which the ruling is based;

    (iv) To conform to a modification of Chapter Three, Four, Five or 

Seven of the NAFTA, or of the Marking Rules, or of the regulations set 

forth in this part; or

    (v) To conform to a judicial decision or change in domestic law.

    (2) Application of modification or revocation of NAFTA advance 

ruling letters. The modification or revocation of a NAFTA advance ruling 

letter will not be applied to entries or warehouse



[[Page 395]]



withdrawals for consumption which were made prior to the effective date 

of such modification or revocation, except where the person to whom the 

advance ruling was issued has not acted in accordance with its terms and 

conditions.

    (3) Effective dates. Generally, a NAFTA letter modifying or revoking 

an earlier advance ruling will be effective on the date it is issued. 

However, Customs may, upon request or on its own initiative, delay the 

effective date of such a modification or revocation for a period of up 

to 90 calendar days from the date of issuance. Such a delay may be 

granted at the request of the party to whom the ruling letter was 

issued, provided such party can demonstrate to the satisfaction of 

Customs that it relied on the earlier advance ruling in good faith and 

to its detriment. The evidence of such reliance must cover the period 

from the date of the letter modifying or revoking the advance ruling 

back to the date of that advance ruling and must list all transactions 

claimed to be covered by the modified or revoked advance ruling by entry 

number (or other Customs assigned number), the quantity and value of 

merchandise covered by each such transaction (where applicable), the 

ports of entry, and the dates of final action by Customs. Such evidence 

must also include contracts, purchase orders, or other materials tending 

to establish that future transactions were arranged based on the earlier 

advance ruling. The request for delay must specifically identify the 

prior ruling on which reliance is claimed. All persons requesting a 

delay will be issued a separate letter setting forth the period, if any, 

of the delay to be provided. In appropriate circumstances, Customs may 

decide to make its decision, with respect to a delay, applicable to all 

persons, irrespective of demonstrated reliance; in this event, a notice 

announcing the delay will be published in the Customs Bulletin and 

individual ruling letters will not be issued.