[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: 19CFR181.76]



[Page 382-383]

 

                        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 G_Origin Verifications and Determinations

 

Sec.  181.76  Application of origin determinations.



    (a) General. Except as otherwise provided in this section, an origin 

determination may be applied upon issuance of the determination under 

Sec.  181.75 of this part.

    (b) Negative origin determinations. In the case of a negative origin 

determination issued under Sec.  181.75(b) of this part:

    (1) The date on which preferential tariff treatment may be denied 

shall be no earlier than 30 calendar days from the date on which:

    (i) Receipt of the written determination by the exporter or producer 

is confirmed, if a request under Sec.  181.75(b)(1) of this part has 

been made; or

    (ii) The written determination is sent by Customs, if no request 

under Sec.  181.75(b)(1) of this part has been made; and

    (2) Before denying preferential tariff treatment, Customs shall take 

into account any comments or additional information provided by the 

exporter or producer during the period established in accordance with 

paragraph (b)(1) of this section.

    (c) Cases involving a pattern of conduct. Where multiple origin 

verifications initiated under Sec.  181.72(a) of this part indicate a 

pattern of conduct by an exporter or producer involving false or 

unsupported representations on Certificates of Origin that a good 

imported into the United States qualifies as an originating good, 

Customs may deny subsequent claims for preferential tariff treatment on 

identical goods exported or produced by such person until that person 

establishes compliance with the rules applicable to originating goods as 

set forth in General Note 12, HTSUS, and in this part, provided that 

advance written notice of the intent to deny such claims is given to the 

importer. For purposes of this paragraph, a ``pattern of conduct'' means 

repeated instances of false or unsupported representations by an 

exporter or producer as established by Customs on the basis of not fewer 

than two origin verifications of two or more importations of the good 

that result in the issuance of not fewer than two written determinations 

issued to that exporter or producer pursuant to Sec.  181.75 of this 

part which conclude, as a finding of fact, that Certificates of Origin 

completed and signed by that exporter or producer with respect to 

identical goods contain false or unsupported representations.

    (d) Differing determinations. Where Customs determines, either as a 

result of an origin verification initiated under Sec.  181.72(a) of this 

part or under any other circumstance, that a certain good imported into 

the United States does not qualify as an originating good based on a 

tariff classification or a value applied in the United States to one or 

more materials used in the production of the good, including a material 

used in the production of another material that is used in the 

production of the good, which differs from the tariff classification or 

value applied to the materials by the country from which the good was 

exported, the Customs determination shall not become effective until 

Customs provides written notification thereof both to the U.S. importer 

of the good and to the person who completed and signed the Certificate 

of Origin upon which the claim for preferential tariff treatment for the 

good was based.

    (e) Applicability of a determination to prior importations. Customs 

shall not apply a determination made under paragraph (d) of this section 

to an importation made before the effective date of the determination 

if, prior to notification of the determination, the customs 

administration of the country from which the good was exported either 

issued an advance ruling under Article 509 of the NAFTA or any other 

ruling on the tariff classification or on the value of such materials, 

or gave consistent treatment to the entry of the materials under the 

tariff classification or value at issue, on which a person is entitled 

to rely and on which



[[Page 383]]



that person did in fact rely. For purposes of this paragraph, the person 

who received notification of the determination shall demonstrate to the 

satisfaction of Customs, in writing within 30 calendar days of receipt 

of the notification, that the conditions set forth herein have been met. 

For purposes of this paragraph:

    (1) A ``ruling'' on which a person is entitled to rely in the case 

of Canada must be issued pursuant to section 43.1(1) of the Customs Act 

(Advance Rulings) or in accordance with Departmental Memorandum 11-11-1 

(National Customs Rulings) and in the case of Mexico must be issued 

pursuant to Article 34 of the Codigo Fiscal de la Federacion and 

pursuant to Article 30 of the Ley Aduanera or the applicable provision 

of Mexican law related to advance rulings under Article 509 of the 

NAFTA; and

    (2) ``Consistent treatment'' means the established application by 

the Canadian or Mexican customs administration that can be substantiated 

by the continued acceptance by the customs administration of the tariff 

classification or value of identical materials on importations of the 

materials into Canada or Mexico by the same importer over a period of 

not less than two years immediately prior to the date of signature of 

the Certificate of Origin for the good that is the subject of the 

determination referred to in paragraph (d) of this section, provided 

that with regard to those importations:

    (i) The tariff classification or value of the materials was not the 

subject of a verification, review or appeal by that customs 

administration on the date of the determination under paragraph (d) of 

this section; and

    (ii) The materials had not been accorded a different tariff 

classification or value by one or more district, regional or local 

offices of that customs administration on the date of the determination 

under paragraph (d) of this section.

    (f) Detrimental reliance. If Customs proposes to deny preferential 

tariff treatment to a good pursuant to a determination made under 

paragraph (d) of this section, Customs shall postpone the application of 

the determination for a period not exceeding 90 calendar days from the 

date of issuance of the determination where the U.S. importer of the 

good, or the person who completed and signed the Certificate of Origin 

upon which the claim for preferential tariff treatment for the good was 

based, demonstrates to the satisfaction of Customs that it has relied in 

good faith to its detriment on the tariff classification or value 

applied to such materials by the customs administration of the country 

from which the good was exported.



[T.D 95-68, 60 FR 46364, Sept. 6, 1995; T.D. 95-68, 61 FR 1829, Jan. 24, 

1996]